PROJECT REPORT
ON
SALES PROMOTION
A report submitted in the partial fulfillment of the requirements
for the degree of Master of Business Administration (MBA)
In
Project Management
of
Sikkim Manipal University India
Submitted By :
Kanwardeep Singh Loomba
Roll No. 1208023669
MBA Retail 4th Sem
1
ACKNOWLEDGEMENT
The research on “Study of sale promotion in Ardhana cold drinks pvt.ltd.” has been given
to me as part of the curriculum in MASTER OF BUSINESS ADMINISTRATION.
I have tried my best to present this information as clearly as possible using basic
terms that I hope will be comprehended by the widest spectrum of researchers, analysts
and students for further studies. I have completed this study under the able guidance and
supervision of SH.DAVINDER MANN, CUSTOMER EXECUTIVE, ARADHANA
COLD DRINKS PVT.LTD., CHANDIGARH (PEPSICO) I am thankful to for their
support. I will be failed in my duty if I do not acknowledge the esteemed scholarly
guidance, assistance and knowledge. I have received from them towards fruitful and
timely completion of this work. Mere acknowledgement may not redeem the debt I owe
to my parents for their direct/indirect support during the entire course of this project.
Date:
Name: Kanwardeep Singh Loomba
M.B.A 4TH SEM.
Roll No. 1208023669
2
TABLE OF CONTENTS
S.NO.
CONTENT
1.
Introduction
1-5
2.
Sale promotion and advertising
5-10
3.
Steps of sale promotion
10-15
4.
Data Collection
15-16
5.
PEPSI FOODS LIMITED
16-18
6.
History
18-26
7.
Marketing
27-33
8.
Questionnaire
33-36
3
PAGE NO.
Sales Promotion Schemes Project Report
MBA
One of the most difficult marketing decisions facing companies is how much to spend
on promotional John Wanamaker, the departmental - store magazine, said, "I know
that half of my advertising is wasted but I don't know which half."
Thus it is not surprising that industries and companies vary considerably in how much
they spend on promotion. Promotional expenditures might amount to 30-50% of sales
in case in cosmetics industry and only 10-20% in the industrial equipment industry.
Within a industry, a low and high spending companies can be found.
How do companies decide on their
promotion budget? There are mainly
four methods of sales promotion :
• Affordable Method :
Many companies set the promotion
budget at what they think the
company can afford. One executive
Advertising Effectiveness Project Report
explained this method as follows:
"Why, it’s simple. First I go upstairs Internal Customer Satisfaction Project Report
to the controller and how much they
can afford to give us this year. He
says a million and half. Later, the
boss comes to me and asks how much
we should spend and I say ‘Oh about
a million and half."
It is a method which is uncertain one
and makes long term planning
4
difficult.
• Percentage of Sales Method :
Many companies set their promotion
expenditures at a specified percentage
of sales. Accordingly the sale is set
on the basis of sales.
In this a specified sales percentage is decided for the promotional budget Advantages
of this method:
First, its use means that promotional budget vary with what a company can afford.
Second, it encourages the management to think in terms of the relationship among
promotion costs, selling price, and profit per unit,
Third, it encourages the competitive stability to the extent that competing firms spend
approximately the same % of their sales on promotion.
In spite of the advantages, the % sales method has little to justify it. Its reasoning is
circular: It views sales as the determiner of the promotion rather than as a result. It
leads to budget setting by availability of funds rather than by marketing opportunities.
• Competitive Parity Method:
Some companies set their promotional budget to achieve share-of-voice parity with
other competitors. Two arguments are made in support of competitive parity method.
One is that the competitor’s expenditure represents the collective wisdom of the
industry. The other is that maintaining a competitive parity helps prevent promotional
wars.
Neither argument is valid. There are no grounds for believing that competition knows
better what should be spent on promotion.
5
• Objective and Task Method:
The objective & task method calls upon marketers to develop their promotion budgets
by defining their specific objectives, determining the task that must be performed to
achieve these objectives, and estimating the cost of performing these tasks.
Deciding on the promotion mix:
Companies face the task of distributing the total promotion budget over the five
promotional tools:
• Advertising
• Sales Promotion
• Public Relations and Publicity
• Sales Force
• Direct Marketing.
Whatever method a company adopts for promoting its product it must be from above
mentioned method.
What is Sales Promotion ?
Promotion is the final element in the marketing mix. After the nature of product is
decided, its price fixed and the methods of distribution decided, the manufactures has
to take effective steps in meeting the consumers in the markets. In the present
consumer oriented markets it is the duty of manufacturers to know what is required by
the consumer. It is also their duty to make the customers know where, when how and
at what prices. The products would be available.
6
Meaning of Promotion
The term promotion is the term and includes mainly three type of sales activity :
1. Mass impersonal selling methods (Advertising).
2. Face to face personal selling (Salesman ship).
3. Activities other than personal selling and advertising such as point of purchase
display (P.O.P.) show and exhibitions, demonstrations and other non securing selling
efforts. This form of activity is called ‘Sales Promotion’.
There are two type of promotion blends:1. Pull Blend.
2. Push Blend.
Both of these are closely related to the channel of Distribution.
1. A pull blend is one in which mass impersonal, sales efforts are given the greatest
emphasis. The purpose of pull blends to pre-sell to the final consumers. So that they
demand the product at the retail level of distribution. The firm adopting this strategy
would spend more on advertising and sales promotion rather than in personal selling.
These efforts pull down the product from the manufacturer.
2. A push blend emphasizes personal selling. Naturally firms adopting this method
develop a strong sales force at both the distributor and the dealer level. This method
would tend to push the product through the channel of distribution.
Promotion and Selling
The term promotion is very often used as a synonym for selling. But selling is a
narrow term which includes only transfer of title or personal selling. Promotion
on the other hand is broader in its outlook and includes a variety of activities
used ultimately for increasing sales volume.
7
Promotion and Sales Promotion
Similarly the terms sales promotion cannot be taken to mean what is commonly does.
Sales promotion is only a part of the promotion. Basically promotion is an "exercise"
in information persecution and influence. Promotion has come to mean the overall coordination of advertising selling, publicity and public relations. Promotion is a helping
function designed to make all other marketing activities more effective and efficient.
But sales promotion as such helps only the selling activity still, there exit same
difference of opinion on the real connection of the term sales promotion.
Acc. to A.H.R. Delons :"Sales promotion means any steps that are taken for the purpose of obtaining or
increasing sales".
Acc. to W.Q. Kelly Opines:"Muddled misused misunderstood that is sales promotion Acc. to him the field of
sales promotion as a marketing activity is still vaguely defined and organized.
Sales Promotion and Advertising
There is no universally accepted distribution between these two terms. To same
advertising includes all forms of mass media communication directed towards
influencing the end consumer. Sales promotion on the other hand, includes the form
of mass communication directed towards information and influencing the channel of
distribution (e.g. distributors, retailers etc.). Hence a price of product literature
distributed by retailers in sales promotion. These sales promotion merges on one side
in to advertising and on the other in to personal salesman ship. It is concerned with the
dissemination of information to whole sellers, retailers, customers (both actual and
potential, and to the salesman).
8
Sales promotion is concerned with the creation. Application and dissemination of
material and techniques that supplement advertising and personal selling. Sales
promotion makes use of direct mail, catalogues, trade shows, sales contests,
premiums, samples, windows displays and other aids. Its purpose is to increase the
desire of salesman, distributors and dealers to sell a certain brand to make consumers
more eager to buy that brand. Personal selling and advertising do include prospects to
make these decisions. Sale promotion provides an extra stimulus.
Objective of Sales Promotion
1. To increase sales directly by publicity through media which are complementary to
press and poster advertising.
2. To disseminate information through sales man dealers etc. So as to insure the
product getting in to satisfactory use by the ultimate consumer.
3. To attract new consumer.
4. To face the competition effectively.
5. To help salesman in selling more to the retailers and consumers.
6. To check seasonal decline in sales. Generally speaking sales promotion involves
rendering the following services:(a) Services to dealers.
(b) Services to own salesman.
(c) Special publicity.
9
Sales Promotional at different levels
1. Sales promotion at Dealers Level:It may include various schemes some of which are discussed here.
(i) Advertising Materials:The advertising material prepared by the company such as store signs, banners, shelf
signs, board etc. are distributed to sub dealer for display purposes this is in fact a
method of advertising.
(ii) Store Demonstration:In the promises of the whole seller or the retailer the products sales personnel will
conduct special demonstration for the company’s product. A personal demonstration
is good to introduce a new product at its peculiar advantage can be high lightened and
the consumer’s doubt clear. It can be used to re stimulate an old product. A good
demonstration with a great dealer of action will draw heavy crowds in to the store and
will attract attention to the product.
(iii) Special Display and Shows:These are in seasonal in character but could be arranged in an elaborate manner and
for all the products of a company. Usually these are arranged along with trade fair and
exhibition. Besides effecting sales these shows impress the company’s name generally
on the public.
Sales promotion at consumer’s level
The various schemes of sale promotion at Consumer’s Level may include.
1. Coupons (A Chit of Stated Value):These are given directly to the consumer these coupons are in most cases kept inside
the package. The consumers many receive a price reduction of the stated values of the
coupon at the time of purchase. The retailer receives reimbursement for the value of
the coupon form the manufacturer. Coupons act as a short run stimulus to the sale of
10
the product, since they are directly tied with the purchase of the item. They encourage
the retailer to stock the product.
What is important is that a coupon offer does not spoil the named price of the brand
nor does it un pair the margin of the dealers. But it is not easy to measure the
effectiveness of a coupon offer. One over knows how many customer would have
bought the product without the incentive. It is also difficult to find out how many
customers were held after the coupon offer expired.
2. Price-off-offer (Also known as bargain offer price packs) :This offer is intended to stimulate the sales during a slump season. In this method the
customer is offered a reduction from the printed price list. It is also used when a
substitute for competing product enters the market.
Many experts on sales promotion fed that ‘Off Schemes’ are among the weaker and
less desirable methods of promotion. These can be trade resentment particularly when
the retailer raises the price to retain his margin. Secondly that is not conductive to
building up brand loyalty. Consumers may simply shift to the products that offer this
scheme.
3. Samples:In the hope of converting a prospect into a customer a sample (Some quantity of the
product) may be given. This helps the consumer to verify the real quality of the
product. Various pair manufacturing companies offer this method. For developing
brand loyalty this method is quite useful. Sampling is a fast method of demand
creation because one knows the result as soon as the consumer has had time to use the
sample and buy the brand.
Disadvantage of Sampler:Offering sample in quit expensive. There is the cost of producing samples. The
distribution costs are also high. Samples have to be mailed to potential customers or to
be distributed through retail shops. There are also problems when the real product
does not resemble the sample supplied.
11
4. Money Refund Offer:An offer usually stated on the package is that manufacturers will return with in a
stated period part or all of the purchaser’s money if he is not completely satisfied with
the product.
5. Trading Stamps:A premium in the form of stamps is given by the sellers to consumers while selling
goods. The number and value of stamp that the buyer receives depends on the values
of the purchase. These stamps are redeemable through premium catalogues at the
stamp redemption centres.
6. Buy-Back Allowance:
This an allowance following a previous trade deal not offer a certain amount of money
for new purchases based on the quantity of purchases on the first trade deal. It extends
the life of a trade deal and helps to prevent part deal sales decline. It greatly
strengthens the buyer’s motivation to co-operate on the first deal.
7. Premium:There are various forms of premiums provided by the manufacturer as sales
promotional devices:(a) Coupons are supplied for effecting price reductions.
(b) Factory in pack premium these are popular in the case of Body food and Tin food
items, Spoons, Cups, Measuring, Glass etc. and such other items are packed with the
product in the box itself. Factory in pack premium are particularly goods for product
meant for children. The Binaca Toothpaste packs contain animal shape toys. These are
very attractive and qutie popular among the children.
12
(c) Self Liquidating Premiums :The cost of the premium is collected from the buyer himself. But when the buyers
pays for it he has to pay only a considerably low price for the premium. This is
possible for the manufacturer purchases the items in bulk at a premium and his cost
per unit as is substantially low.
Other Steps by Manufacturer for Promoting Sales
Dealers can be helps in different ways :1. Communicating Market News :Often this service is reciprocal the manufacturer may acquaint his dealer with the fact
relating to his production and prices while the dealer may familiarize him in return
with the information bearing on charges in the consumer's demand, their like and
dislike complaints and criticism, substitutes etc.
2. Inviting to Sales Conference and Convention :The gestures of regard and respect pave the way for better relation and co-operation.
3. Offering Reasonable Terms of Sale :Of all the forms of encouragement, the monetary incentive evokes immediate
response. Hence every producer must offer the most responsible terms of sale such as
longer periods of credit and higher rates of descants.
4. Supplying suitable packages and useful things.
5. By taking the return back.
6. By furnishing them with sales literature and display materials.
13
Aggressive Selling
Meaning :Goods are produced for market. Manufacturers have to make efforts to sell all they
produce. When the manufacturers uses various sales efforts to obtain increased sales
volume for his product it is called aggressive selling or offensive selling. The sales
efforts which a manufacturer makes to retain his customers i.e. to protect his already
established market against against his competitors is termed as defensive selling. In
contrast to this aggressive selling is concerned with the sales efforts made with the
express objective of selling more by expanding the market for the product of the
selling firm.
Aggressive Selling and Defensive Selling:Aggressive selling is based on the answer to the question how much does the firm
gain (in term of sales with profit) by using this method defensive selling is based on
consideration as to how much the firm will lose if it does not use this method increase
of sales can be obtained from two sources:1. New customers if the market is expending.
2. From the competitors i.e. those consumers who were purchasing similar product of
competition firms, if the market for the product is static.
Acc. to H. Whitehead:"In case of an expanding market the entire firm may stand to gain by following the
methods of aggressive selling but if the market is static manufacturer of a new market
will have to be much more aggressive to capture the established market of
competitors".
14
When Aggressive selling is resorted?
Usually manufacturer of a new product has to do aggressive selling:1. When the product has been improved.
2. When the manufacturer’s product is supervisor in quality to the product of the
established competitor.
3. When the total market for the product or line of product to expanding.
4. If the manufacturer’s share of the market is comparatively small.
5. If the manufacturer has unused production capacity with heavy investment in plant
and equipment he will like to develop the demand for his product rapidly so that
demand for his product is equal to the optimum production capacity of his plant ; and
6. When primary demand for a product must be created and provision must be made
in the channel of distribution to educate consumers regarding the new product and to
instruct them in its use.
Method of Aggressive Selling:Sales promotion efforts use for aggressive selling may be divided in two classes.
1. Trade Promotion.
2. Consumer Promotion.
1. Trade Promotion:Under trade promotion methods special incentives are offered to the trader to buy
products of the firm. Such incentive may take one or more of the following firm :(a) Cash Allowance:A definite percentage of discount is allowed on the purchase of given unit of a
product.
15
(b) Extra Product:Instead of giving any cash allowance extra product is given with each unit of product
ordered. For instance if a box normally contains 20 Cakes of Soap, special box
contains 25 cakes may be made and sold at the same price as that of the box of 20
cakes.
(c) Gifts:Various gifts are awarded in return for an order of a particular magnitude.
2. Consumer Promotion:Under consumer promotion method special incentives are offered to the consumers to
buy the firms product. The more prominent amongst such incentives are as following.
(a) Coupons:A coupon of a giving value is sent to the consumer. By presenting this coupon to the
retailer consumers can purchase a particular product mentioned on the coupon at a
reduced price. The retailer sells the products mentioned. In the coupon to such
consumer (consumers presenting the coupons) under and agreement with the
manufacturer at a price lower than the user retail price. Thus the consumer get the
benefit of reduced price to the extent of the value of the coupons.
(b) Self Liquidating Offers :Under this system, the firm offers an article at an attracting price if the consumer send
a given sum of money accompanied by a given number of box tops from the packages
of a particular product the benefit to the consumer is that he receives the articles at a
bargain price.
16
(c) Bargain Packs :Under this system a product is sold at a reduced price for a short period Bargain pack
method encourages new consumers to try the product. It is also helpful in obtaining
large displays in the shops.
(d) Sampling :The method involves giving the product or a small quantity of the product to a
consumer free with the hope that the customer will be favourable impressed with its
actual use and will eventually become a regular purchaser of the product.
A firm selling new product or an extensively improved product finds this methods
useful. Also a firm whose market is hold by competitors whose free sampling almost
expensive.
The above mentioned methods may be reinforced by adopting.
(i) Direct method of selling through.
(ii) Offer of door to door selling.
(iii) Hire purchase and installment payment methods of selling and by forming
combination.
Other Methods of Aggressive Selling :(i) Employment of ‘Missionary Salesman also known as Promotional Salesman’.
These salesman call upon retailers and aggressively promote a product.
(ii) Instead of using wholesalers, the firm may develop its own sales force to call
directly on retailers.
(iii) The firm may follow a compromise method by employing a manufacturer’s agent
and giving him a large enough commission to encourage him to sell product
intensively and aggressively.
17
(iv) New territory exploitation sales promotion has a particularly important role in
developing the company’s product in new territories.
(v) Increment and promotions.
(vi) Letters to dealer and Customer.
In fact, an ingenious sales manager can devise any number of incentives schemes for
promoting the sales volume.
Data Collection :There are two main sources for collecting data. These are :1. Primary Data.
2. Secondary Data.
1. Primary Data :
It is the data that is collected for the first time. It is fresh and the originally collected
by the surveyor.
In this Project - Sales Promotion Schemes, the researcher contacted 250 customers
and situated on the various points of the Sonepat, Panipat, Karnal & nearby areas.
The response were collected personally by the reasearch through a structural
questionnaire, consisting of 20 questions.
2. Secondary Data :
Secondary data is the one which is collected by the some one else and already used in
some or the other form. Here the secondary data used was the theoretical aspects of
promotional tools and the statistical method made use of.
Sample :A sample of 250 customers was chosen from Sonepat, Panipat, Karnal & nearby
areas. The sample chosen was fully on the basis of convince of the researcher. It was a
non-probability sample.
18
Analysis and interpretation :The total data was presented in simple tables, graphs and percentage method was used
for interpretation.
PEPSI FOODS LIMITED
USE OF SALES PROMOTION TO CONSOLIDATE SHELF SPACE AND GAIN
MARKET SHARE ACROSS ALL BRANDS AND PACKS
Background: In Mumbai, India, Pepsi was a market leader in the soft drink
market. However the company faced two problems
a. Its visibility in the retail outlet was disorganized. Its various brands were
displayed disjointedly resulting in the consumer having to search the shelves
for their brand.
b. Pepsi had to pay huge sum of money, to put up display signage, to the retail
shop owners.
Pepsi wanted to ensure that all its brands were displayed at one location within
the retail outlet viz. grocery stores, bakeries and soft drink outlets. Pepsi also
wanted to occupy space within the retail outlet without incurring costs. In as
much space that it would be able to gain, the company wanted the retailer to
stock every single brand and pack. In addition, it wanted the displays to be
arranged in a specific manner so that the consumer would find it easy to locate
and buy their favorite brand.
The Brief: Our associate and Co Promoter of Inza, Tempest Advertising was
appointed by Pepsi, to develop and design a scheme which would consolidate its
display with the retail outlet. In addition, the scheme was to actively involve the
retailer as well as Pepsi’s staff right from the junior most Route Salesman to the
Unit Head.
Our Solution: Tempest suggested two separate schemes to achieve the twin
objectives as mentioned earlier.
For consolidating the Display at the retailer level we suggested the “Pepsi Space
Club” (This was the time when Star Wars II was popular). Under the Pepsi Space
19
Club the route agent would motivate the retailers to become members of the
Pepsi Space Club. The Club was to be run for a period of six months. On
agreeing to participate, the retailer would receive the following from the company.
a. A participation certificate which could be displayed prominently in the retail
outlet.
b. A Pepsi wall clock.
c. A Visi-cooler (Refrigerator with a glass door).
d. A display stand.
e. A sign board displaying “Pepsi Cool Zone”.
f. A display manual explaining the way in which the products had to be
displayed at all times.
g. A manual explaining the terms and conditions at participation and the various
awards that could be won periodically by the retailer.
As a member of the Pepsi Space Club the retail outlet would be visited,
randomly, by Pepsi personnel, to check whether the retailer was fulfilling the
various requirements at participation. If the retailer fulfilled the requirement, a
prize on the spot by the Pepsi personnel was given to the retailer. One of the
most important requirement at participation was that the retailer should stock
each and every brand of Pepsi and should also have on display, each and every
pack of the brand.
In addition to this, the display should be as per the manual that was provided.
There were 10 such criteria on the basis of which the retailer was awarded
points. In case the retailer scored a perfect 10, Pepsi would give the retailer
“Free Liquid”, which was equivalent to the product that was displayed by the
retailer. This meant that the more the product that the retailer displayed perfectly,
the more free liquid he would get and more the profit that he could make.
In addition to the “Free Liquid” that could be won, the retailer could also win gifts
like free music cassettes, gift hampers and invitation to Pepsi parties. The
scheme ended with a prize distribution ceremony in which the winners were
announced and larger prizes were distributed.
20
Involving the Staff: In order to make the Pepsi – Space Club successful, the
Pepsi team was divided into four different teams. These teams were named
Mars, Venus, Jupiter and Pluto. These teams were made to compete with each
other under the “Pepsi Store Wars” program.
Under the Pepsi Store Wars (PSW) program, each team was given sales volume
target. In addition, there were targets that were set for involvement of the
retailers into the Pepsi Space Club program. Points were also awarded to the
teams, based on how many retail outlets scored perfect 10’s in their individual
zones.
Each and every member of the four teams had a separate target and
achievement of these targets was linked to their annual performance review.
Salary increments were linked to the performance of any individual employee in
the Pepsi Store Wars program.
The winning team was declared as the ruler of the Universe and the leader of the
winning team was crowned the Superior of Space.
Our Responsibility:
a. Development of the programs and framing the rules and regulations.
b. Design of all collaterals for the scheme.
c. Design, development and execution of the launch program for announcing the
programs to the Pepsi field force. This included production of two launch films
that were used as curtain raisers for the field force conference.
Results: The Pepsi Store Wars and the Pepsi Space Club, turned out to be the
largest promotion initiative of Pepsi, in Mumbai during 1999. The scheme
concept was then extended across the country. In Mumbai, brands which were
never stocked by the retail trader received a fillip and Mumbai achieved the
highest volume growth in the country. While the overall beverages market grew
by 5-6 percent, sales in participating outlets grew by almost 60%.
21
Pepsi
This article is about the beverage. For its manufacturer, see PepsiCo. For the singer,
see Pepsi Demacque.
Not to be confused with PEPPSI.
Pepsi
Current Pepsi's 2-D logo introduced in October
2008.
Type
Cola
Manufacturer
PepsiCo
Country of origin United States
Introduced
1893 (as Brad's Drink)
August 28, 1898 (as PepsiCola)
1961 (as Pepsi)
Related products Coca-Cola
RC Cola
Irn Bru
Cola Turka
Big Cola
Website
22
pepsi.com
Nutrition facts
Serving size 12 fl oz (355 ml)
Servings per container 1
Amount per serving
Calories 150[1]
Calories from fat 0
% Daily value*
Total fat 0 g
0%
Saturated fat 0 g
0%
Trans fat 0 g
Cholesterol 0 mg
0%
Sodium 15 mg
1%
Potassium 0 mg
0%
Total carbohydrate 41 g
Dietary fiber 0 g
14%
0%
Sugars 41 g
Protein 0 g
Vitamin A
23
0%
Vitamin C
0%
Calcium
0%
Iron
0%
*Percent daily values are based on a
2,000-calorie diet. Your daily values may
be higher or lower depending on your
calorie needs.
Pepsi (stylized in lowercase as pepsi, formerly stylized in uppercase as PEPSI) is
a carbonated soft drink that is produced and manufactured by PepsiCo. Created and
developed in 1893 and introduced as Brad's Drink, it was renamed as Pepsi-Cola on
August 28, 1898, then to Pepsi in 1961.[citation needed]
Contents
[hide]
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1 History
2 Pepsi-Cola trademark
3 Rise
4 Niche marketing
5 Marketing
o 5.1 Rivalry with Coca-Cola
o 5.2 Pepsiman
6 Slogans
o 6.1 American slogans
o 6.2 International slogans
o 6.3 Global slogans
7 Awards and recognition
8 Variants
o 8.1 Europe
o 8.2 Asia
 8.2.1 Japan
 8.2.2 Other markets
o 8.3 Latin America
o 8.4 Diet variants
24
8.5 Fictional drinks
9 Ingredients
10 See also
11 References
12 External links
o
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History
The pharmacy of Caleb Bradham, with a Pepsi dispenser
Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, United States,
in 1893 by Caleb Bradham, who made it at his drugstore where the drink was sold. It was
later labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in
the recipe.[3] Bradham sought to create a fountain drink that was delicious and would aid
in digestion and boost energy.[2]
plaque at 256 Middle Street, New Bern, NC
In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented
warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was
25
sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile race
pioneer Barney Oldfield was the first celebrity to endorse Pepsi-Cola, describing it as "A
bully drink...refreshing, invigorating, a fine bracer before a race." The advertising theme
"Delicious and Healthful" was then used over the next two decades.[4] In 1926, Pepsi
received its first logo redesign since the original design of 1905. In 1929, the logo was
changed again.
In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered
bankruptcy – in large part due to financial losses incurred by speculating on wildly
fluctuating sugar prices as a result of World War I. Assets were sold and Roy C.
Megargel bought the Pepsi trademark.[3] Megargel was unsuccessful, and soon Pepsi's
assets were purchased by Charles Guth, the President of Loft, Inc. Loft was a candy
manufacturer with retail stores that contained soda fountains. He sought to replace CocaCola at his stores' fountains after Coke refused to give him a discount on syrup. Guth then
had Loft's chemists reformulate the Pepsi-Cola syrup formula.
On three separate occasions between 1922 and 1933, The Coca-Cola Company was
offered the opportunity to purchase the Pepsi-Cola company, and it declined on each
occasion.[5]Senior Executive Harry Lee offered the Pepsi-Cola company as much as
$150,000 for the company, and when Pepsi-Cola declined, this sparked competition
between the companies that we still see even today.[citation needed]
Pepsi-Cola trademark
The original stylized Pepsi-Cola logo
The second stylized Pepsi-Cola logo
The original trademark application for Pepsi-Cola was filed on September 23, 1902 with
registration approved on June 16, 1903. In the application's statement, Caleb Bradham
describes the trademark as an "arbitrary hyphenated word "PEPSI-COLA", and indicated
that the mark was in continuous use for his business since August 1, 1901. The PepsiCola's description is a flavoring-syrup for soda water. The trademark expired on April 15,
1904.
26
A second Pepsi-Cola trademark is on record with the USPTO. The application date
submitted by Caleb Bradham for the second trademark is Saturday, April 15, 1905 with
the successful registration date of April 15, 1906, over three years after the original date.
Curiously, in this application, Caleb Bradham states that the trademark had been
continuously used in his business "and those from whom title is derived since in the 1905
application the description submitted to the USPTO was for a tonic beverage. The federal
status for the 1905 trademark is registered and renewed and is owned by Pepsico,
Inc. of Purchase, New York.
Rise
During the Great Depression, Pepsi gained popularity following the introduction in 1936
of a 12-ounce bottle. With a radio advertising campaign featuring the jingle "Pepsi-Cola
hits the spot / Twelve full ounces, that's a lot / Twice as much for a nickel, too / PepsiCola is the drink for you", arranged in such a way that the jingle never ends. Pepsi
encouraged price-watching consumers to switch, obliquely referring to the Coca-Cola
standard of 6.5 ounces per bottle for the price of five cents (a nickel), instead of the 12
ounces Pepsi sold at the same price.[6]Coming at a time of economic crisis, the campaign
succeeded in boosting Pepsi's status. From 1936 to 1938, Pepsi-Cola's profits doubled.[7]
27
Pepsi
Pepsi's success under Guth came while the Loft Candy business was faltering. Since he
had initially used Loft's finances and facilities to establish the new Pepsi success, the
near-bankrupt Loft Company sued Guth for possession of the Pepsi-Cola company. A
long legal battle, Guth v. Loft, then ensued, with the case reaching the Delaware Supreme
Court and ultimately ending in a loss for Guth.
Niche marketing
1940s advertisement specifically targeting African Americans, A young Ron Brown is
the boy reaching for a bottle
Walter Mack was named the new President of Pepsi-Cola and guided the company
through the 1940s. Mack, who supported progressive causes, noticed that the company's
strategy of using advertising for a general audience either ignored African Americans or
used ethnic stereotypes in portraying blacks. He realized African Americans were an
untapped niche market and that Pepsi stood to gain market share by targeting its
advertising directly towards them.[8] To this end, he hired Hennan Smith, an advertising
executive "from the Negro newspaper field"[9] to lead an all-black sales team, which had
to be cut due to the onset of World War II. In 1947, Mack resumed his efforts,
hiring Edward F. Boyd to lead a twelve-man team. They came up with advertising
portraying black Americans in a positive light, such as one with a smiling mother holding
a six pack of Pepsi while her son (a youngRon Brown, who grew up to be Secretary of
28
Commerce)[10] reaches up for one. Another ad campaign, titled "Leaders in Their Fields",
profiled twenty prominent African Americans such as Nobel Peace Prize winner Ralph
Bunche and photographer Gordon Parks.
Boyd also led a sales team composed entirely of blacks around the country to promote
Pepsi. Racial segregation and Jim Crow laws were still in place throughout much of the
U.S.; Boyd's team faced a great deal of discrimination as a result,[9] from insults by Pepsi
co-workers to threats by the Ku Klux Klan.[10] On the other hand, it was able to
use racismas a selling point, attacking Coke's reluctance to hire blacks and support by the
chairman of Coke for segregationist Governor of Georgia Herman Talmadge.[8] As a
result, Pepsi's market share as compared to Coke's shot up dramatically. After the sales
team visited Chicago, Pepsi's share in the city overtook that of Coke for the first time.[8]
This focus on the market for black people caused some consternation within the company
and among its affiliates. It did not want to seem focused on black customers for
fear whitecustomers would be pushed away.[8] In a meeting at the Waldorf-Astoria Hotel,
Mack tried to assuage the 500 bottlers in attendance by pandering to them, saying: "We
don't want it to become known as a nigger drink."[11] After Mack left the company in
1950, support for the black sales team faded and it was cut.
29
Marketing
Pepsi logo (1973–1998) In 1987, the font was modified slightly to a more rounded
version which was used until 1998.[12] This logo is now used for Pepsi Throwback
Pepsi logo (2003–2008). Pepsi Wild Cherry continued to use this design through March
2010. Pepsi ONE continued to use this design until mid-2012. This logo is still in use in
India and other international markets. The original version had the Pepsi wording on the
top left of the Pepsi Globe. In 2007, the Pepsi wording was moved to the bottom of the
globe.
From the 1930s through the late 1950s, "Pepsi-Cola Hits The Spot" was the most
commonly used slogan in the days of old radio, classic motion pictures, and later
television. Its jingle (conceived in the days when Pepsi cost only five cents) was used in
many different forms with different lyrics. With the rise of radio, Pepsi utilized the
services of a young, up-and-coming actress named Polly Bergen to promote products,
oftentimes lending her singing talents to the classic "...Hits The Spot" jingle.
Film actress Joan Crawford, after marrying then Pepsi-Cola President Alfred N.
Steelebecame a spokesperson for Pepsi, appearing in commercials, television specials and
30
televised beauty pageants on behalf of the company. Crawford also had images of the soft
drink placed prominently in several of her later films. When Steele died in 1959
Crawford was appointed to the Board of Directors of Pepsi-Cola, a position she held until
1973, although she was not a board member of the larger PepsiCo, created in 1965.[13]
The Buffalo Bisons, an American Hockey League team, were sponsored by Pepsi-Cola in
its later years; the team adopted the beverage's red, white and blue color scheme along
with a modification of the Pepsi logo (with the word "Buffalo" in place of the Pepsi-Cola
wordmark). The Bisons ceased operations in 1970 (making way for the Buffalo Sabres).
Through the intervening decades, there have been many different Pepsi theme songs sung
on television by a variety of artists, from Joanie Summers to the Jacksons to Britney
Spears. (See Slogans)
In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up
a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the
majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo
took great advantage of the campaign with television commercials reporting the results to
the public.[14]
In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hired the first female Pepsi salesperson,
Denise Muck, to coincide with the United States bicentennial celebration.
In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By 2002,
the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that "helped
redefine promotion marketing".[15]
In 2007, PepsiCo redesigned its cans for the fourteenth time, and for the first time,
included more than thirty different backgrounds on each can, introducing a new
background every three weeks.[16] One of its background designs includes a string of
repetitive numbers, "73774". This is a numerical expression from a telephone keypad of
the word "Pepsi".
In late 2008, Pepsi overhauled its entire brand, simultaneously introducing a new logo
and a minimalist label design. The redesign was comparable to Coca-Cola's earlier
simplification of its can and bottle designs. Pepsi also teamed up with YouTube to
produce its first daily entertainment show called Poptub. This show deals with pop
culture, internet viral videos, and celebrity gossip.
In 2009, "Bring Home the Cup" changed to "Team Up and Bring Home the Cup". The
new installment of the campaign asks for team involvement and an advocate to submit
31
content on behalf of their team for the chance to have the Stanley Cup delivered to the
team's hometown by Mark Messier.
Pepsi has official sponsorship deals with three of the four major North American
professional sports leagues: the National Football League, National Hockey
League and Major League Baseball. Pepsi also sponsors Major League Soccer. It also has
the naming rightsto the Pepsi Center, an indoor sports facility in Denver, Colorado. In
1997, after his sponsorship with Coca-Cola ended, NASCAR driverJeff Gordon signed a
long term contract with Pepsi, and he drives with the Pepsi logos on his car with various
paint schemes for about 2 races each year, usually a darker paint scheme during nighttime
races. Pepsi has remained as one of his sponsors ever since. Pepsi has also sponsored
the NFL Rookie of the Year award since 2002.[17]
Pepsi also has sponsorship deals in international cricket teams. The Pakistan cricket
team is one of the teams that the brand sponsors. The team wears the Pepsi logo on the
front of their test and ODI test match clothing.
In July 2009, Pepsi started marketing itself as Pecsi in Argentina in response to its name
being mispronounced by 25% of the population and as a way to connect more with all of
the population.[18]
In October 2008, Pepsi announced that it would be redesigning its logo and re-branding
many of its products by early 2009. In 2009, Pepsi, Diet Pepsi and Pepsi Max began
using all lower-case fonts for name brands, and Diet Pepsi Max was re-branded as Pepsi
Max. The brand's blue and red globe trademark became a series of "smiles", with the
central white band arcing at different angles depending on the product until 2010. Pepsi
released this logo in U.S. in late 2008, and later it was released in 2009 in Canada (the
first country outside of the United States for Pepsi's new logo), Brazil, Bolivia,
Guatemala, Nicaragua, Honduras, El Salvador, Colombia, Argentina, Puerto Rico, Costa
Rica, Panama, Chile, Dominican Republic, the Philippines and Australia. In the rest of
the world the new logo has been released in 2010. The old logo is still used in several
markets internationally, and has been phased out most recently in Franceand Mexico. The
UK started to use the new Pepsi logo on cans in an order different from the US can.
Starting in mid-2010, all Pepsi variants, regular, diet, and Pepsi Max, have started using
only the medium-sized "smile" Pepsi Globe.
Pepsi and Pepsi Max cans and bottles in Australia now carry the localized version of the
new Pepsi Logo. The word Pepsi and the logo are in the new style, while the word "Max"
32
is still in the previous style. Pepsi Wild Cherry finally received the 2008 Pepsi design in
March 2010.
In 2011, for New York Fashion Week, Diet Pepsi introduced a "skinny" can that is taller
and has been described as a "sassier" version of the traditional can that Pepsi says was
made in "celebration of beautiful, confident women". The company's equating of
"skinny" and "beautiful" and "confident" is drawing criticism from brand critics,
consumers who do not back the "skinny is better" ethos, and the National Eating
Disorders Association, which said that it takes offense to the can and the company's
"thoughtless and irresponsible" comments. PepsiCo Inc. is a Fashion Week sponsor. This
new can was made available to consumers nationwide in March.[19]
In April 2011, Pepsi announced that customers will be able to buy a complete stranger a
soda at a new "social" vending machine, and even record a video that the stranger would
see when they pick up the gift.[citation needed]
In May 2011, the week before Memorial Day, Pepsi launched a limited edition flavor
called "Memorial Day Pepsi", with blueberry andcherry flavors added to the cola.[citation
needed]
In March 2012, Pepsi introduced Pepsi Next, a cola with half the calories of regular
Pepsi.[20]
In March 2013, Pepsi for the first time in 17 years reshaped its 20-ounce bottle.[21]
Rivalry with Coca-Cola
Main article: Cola Wars
According to Consumer Reports, in the 1970s, the rivalry continued to heat up the
market. Pepsi conducted blind taste tests in stores, in what was called the "Pepsi
Challenge". These tests suggested that more consumers preferred the taste of Pepsi
(which is believed to have more lemon oil, and less orange oil, and uses vanillin rather
than vanilla) to Coke. The sales of Pepsi started to climb, and Pepsi kicked off the
"Challenge" across the nation. This became known as the "Cola Wars".
In 1985, The Coca-Cola Company, amid much publicity, changed its formula. The theory
has been advanced that New Coke, as the reformulated drink came to be known, was
invented specifically in response to the Pepsi Challenge. However, a consumer backlash
led to Coca-Cola quickly reintroducing the original formula as Coke "Classic".
33
According to Beverage Digest's 2008 report on carbonated soft drinks, PepsiCo's U.S.
market share is 30.8 percent, while The Coca-Cola Company's is 42.7 percent.[22] CocaCola outsells Pepsi in most parts of the U.S., notable exceptions being
central Appalachia,North Dakota, and Utah. In the city of Buffalo, New York, Pepsi
outsells Coca-Cola by a two-to-one margin.[23]
Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. However,
exceptions include Oman; India; Saudi Arabia;Pakistan (Pepsi has been a dominant
sponsor of the Pakistan cricket team since the 1990s); the Dominican
Republic; Guatemala; theCanadian provinces of Quebec, Newfoundland and
Labrador, Nova Scotia, and Prince Edward Island; and Northern Ontario.[24]
Pepsi had long been the drink of Canadian Francophones and it continues to hold its
dominance by relying on local Québécoiscelebrities (especially Claude Meunier, of La
Petite Vie fame) to sell its product.[25] PepsiCo introduced the Quebec slogan "here, it's
Pepsi" (Ici, c'est Pepsi) in response to Coca-Cola ads proclaiming "Around the world, it's
Coke" (Partout dans le monde, c'est Coke).
As of 2012, Pepsi is the third most popular carbonated drink in India with a 15% market
share, behind Sprite and Thums Up. In comparison, Coca Cola is the fourth most popular
carbonated drink occupying a mere 8.8% of the Indian market share.[26] By most
accounts, Coca-Cola was India's leading soft drink until 1977 when it left India after a
new government ordered The Coca-Cola Company to turn over its secret formula for
Coke and dilute its stake in its Indian unit as required by the Foreign Exchange
Regulation Act(FERA). In 1988, PepsiCo gained entry to India by creating a joint
venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC)
and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991
when the use of foreign brands was allowed; PepsiCo bought out its partners and ended
the joint venture in 1994. In 1993, The Coca-Cola Company returned in pursuance of
India's Liberalization policy.[27]
In Russia, Pepsi initially had a larger market share than Coke but it was undercut once
the Cold War ended. In 1972, PepsiCo company struck a barter agreement with the then
government of the Soviet Union, in which PepsiCo was granted exportation and Western
marketing rights to Stolichnaya vodka in exchange for importation and Soviet marketing
of Pepsi-Cola.[28][29] This exchange led to Pepsi-Cola being the first foreign product
sanctioned for sale in the U.S.S.R.[30]
34
Reminiscent of the way that Coca-Cola became a cultural icon and its global spread
spawned words like "coca colonization", Pepsi-Cola and its relation to the Soviet system
turned it into an icon. In the early 1990s, the term "Pepsi-stroika" began appearing as a
pun on "perestroika", the reform policy of the Soviet Union under Mikhail Gorbachev.
Critics viewed the policy as an attempt to usher in Western products in deals there with
the old elites. Pepsi, as one of the first American products in the Soviet Union, became a
symbol of that relationship and the Soviet policy.[31] This was reflected in Russian author
Victor Pelevin's book "Generation P".
In 1989, Billy Joel mentioned the rivalry between the two companies in the song "We
Didn't Start The Fire". The line "Rock & Roller Cola Wars" refers to Pepsi and Coke's
usage of various musicians in advertising campaigns. Coke used Paula Abdul, while
Pepsi usedMichael Jackson. Both companies then competed to get other musicians to
advertise its beverages.
In 1992, following the dissolution of the Soviet Union, Coca-Cola was introduced to the
Russian market. As it came to be associated with the new system, and Pepsi to the old,
Coca-Cola rapidly captured a significant market share that might otherwise have required
years to achieve. By July 2005, Coca-Cola enjoyed a market share of 19.4 percent,
followed by Pepsi with 13 percent.[32]
Pepsi did not sell soft drinks in Israel until 1991. Many Israelis and some American
Jewish organizations attributed Pepsi's previous reluctance to do battle to the Arab
boycott. Pepsi, which has a large and lucrative business in the Arab world, denied that,
saying that economic, rather than political, reasons kept it out of Israel.[33]
Pepsiman
Pepsiman is an official Pepsi mascot from Pepsi's Japanese corporate branch. The design
of the Pepsiman character is attributed to Canadian comic book artist Travis Charest,
created sometime around the mid-1990s. Pepsiman took on three different outfits, each
one representing the current style of the Pepsi can in distribution. Twelve commercials
were created featuring the character. His role in the advertisements is to appear with
Pepsi to thirsty people or people craving soda. Pepsiman happens to appear at just the
right time with the product. After delivering the beverage, sometimes Pepsiman would
encounter a difficult and action oriented situation which would result in injury.
In 1996, Sega-AM2 released the Sega Saturn version of its arcade fighting game Fighting
Vipers. In this game Pepsiman was included as a special character, with his specialty
listed as being the ability to "quench one's thirst". He does not appear in any other version
35
or sequel. In 1999, KID developed a video game for the PlayStation entitled Pepsiman.
As the titular character, the player runs, skateboards, rolls, and stumbles through various
areas, avoiding dangers and collecting cans of Pepsi all while trying to reach a thirsty
person as in the commercials
36
Questionnaire
Name :
Age : 18-30
30-40
Above 40
Profession :
Income :
3000-5000
5000-7500
7500-10000
10000-15000
Above 15000
1. Have you heard about the brand Grasim/Grasim Suiting?
Yes
No
2. Have you ever seen the Advertisement of Grasim ?
Yes
No
3. Where did you saw the Advertisement
On T.V.
In Magazine
Hoarding
Others
4. Does it provides the sufficient information about the product you needed ?
Yes
No
Partially
5. Can you recall the content of Grasim Advertisement ?
Yes
No
Partially
6. What do you think about the consistency of Grasim’s advertisement ?
Excellent
Good
Average
Poor
7. Which channel do you watch most frequently ?
DD1
37
DD2
Zee T.V.
Sony
Star Plus
Zee News
Others
8. Have you ever heard about "Mr. India" "Mr. International" Contest
organised by Grasim ?
Yes
No
9. Do you found these events as are effective advertisement medium ?
Yes
No
Partially
10. What type of advertisement do you like the most ?
Personality Symbol
Musical
Fantasy
Life Style
11. Which other advertisement can you recall ?
Raymonds
Siyaram
Vimal
OCM
Mayur
Dinesh
Grasim
Digzam
12. Which advertisement is most consistent ?
Raymonds Siyaram
Grasim Digzam
Vimal
OCM
Mayur
Dinesh
13. Which brand in the fabric is the most frequently advertised on T.V. ?
Raymonds Siyaram
Grasim Digzam
Vimal
OCM
Mayur
Dinesh
14. Have you purchased Grasim Product ?
Yes
No
15. Have you satisfied with the product ?
Fully Satisfied
Partially Satisfied
Dissatisfied
16. Do you know the new product launched by Grasim viz. coolers, WWF,
SUMO ?
Yes
38
No
17. Do you recommend the product to others if you are satisfied with it ?
Frequently
Occasionally
When asked
Never
18. Which Media do you like is the most efficient for advertising fabric ?
Electronic
Print
Outdoor
Mail
Word of mouth
19. Do you feel good when you see the advertisement of the brand which you
have purchased ?
Yes
No
20. What time of the day do you feel the best for the advertisement on TV ?
Morning
39
Mid-day
Evening
Late night