A BRAND DOSSIER ON
Submitted By:Aswath Mayooran R (B13016)
Namrata Kedia(B13036)
Rohit Lakhotia (B13049)
1|Page
TABLE OF CONTENTS
S.NO
NAME
PAGE NO
1.
History
3
2.
Initial positioning and subsequent 4-5
repositioning
3.
Advertising strategy
6-8
4.
Sales promotion strategy
8-10
5.
Segmentation strategy
10-11
6.
Analysis of Product
11-12
7.
Generic competition
13
8.
Strategies
competition
adopted
or
to
prime
tackle 13-15
market
expansion
9.
Distribution Strategy
15-16
10.
Future Direction for the brand
16-17
11.
References
18
2|Page
HISTORY:
Refresh your Pepsi-cola history! Over 100 years running and going strong!
 In 1893- Caleb Bradham, a young pharmacist from New Bern, North
Carolina, begins experimenting with many different soft drink concoctions;
patrons and friends sample them at his drugstore soda fountain.
 In 1902-the instant popularity of this new drink leads Bradham to devote all
of his energy to develop Pepsi-cola into a fully fledged business. He applies
for a trademark with the U.S patent office, Washington D.C and forms the
first Pepsi-cola company.
 In 1923--Pepsi-Cola Company is declared bankrupt and its assets are sold to
a North Carolina concern, Craven Holding Corporation, for $30,000.
 In 1939--The "Pepsi & Pete" comic strip introduces the "Twice as much for
a nickel" theme in newspapers.
 In 1965--Expansion outside the soft drink industry begins. Frito-Lay of
Dallas, Texas, and Pepsi-Cola merge, forming PepsiCo, Inc.
 In 1987—Pepsi-cola President Roger Encino is named President/CEO of
PepsiCo Worldwide Beverages
 In 1992--Pepsi-Cola launches the "Gotta Have It" theme which supplants the
longstanding "Choice of a New Generation."
 In 1993--Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink
Pepsi."
 In 1997--PepsiCo. announces that, effective October 6th, it will spin off its
restaurant division to form Tricon Global Restaurants, Inc. Including Pizza
Hut, Taco Bell, & KFC, it will be the largest restaurant company in the
world in units and second-largest in sales.
 In 1998--Pepsi celebrates its 100th anniversary.
3|Page
INTIAL POSITIONING AND REPOSITIONING
The Pepsi cola initially positioned itself as a soft drink for the white people.
During that period only many Negros were out of their jobs, so using this
opportunity Pepsi hired Negros for the sales representatives for their product
and thus broke the myth that Pepsi is for all people and not just only for white
people.
Then Pepsi came up with a bigger sized bottle that too for a low cost. So this
made Pepsi positioned as a low cost but good soft drink to consume.
Then Pepsi made a move up in the ladder by implementing a new marketing
strategy by introducing cans. This lead to the rise in market share of Pepsi for its
innovative ideas.
4|Page
The sales of Pepsi during the winter season was obviously higher than during
winter so in order to increase sales during winter Pepsi came up with a ad
showing a kid wearing scarf’s and indicating its winter season and holding a
bottle of Pepsi .so the photo implies to the people that Pepsi can be consumed
even during winter season
Then now the Pepsi is repositioned itself as to catch the pulse of Indian youth
and they launched a campaign “youngistaan” meaning ‘impatience’. And the
new brand positioning ‘Oh Yes Abhi’. The new positioning is all about the
impatient youth, who believe in making the most of the moment and therefore
wants action ‘right now!’
5|Page
ADVERTISING STRATEGY
‘’120 years of happiness ‘’ this line itself defines how big the brand Pepsi is.
The brand has evolved with time and thus with respect to time its advertisement
strategy has also changed. As the company has a global market so the
advertisement strategy followed by Pepsi was different in different countries
.But it also had to keep in mind the global advertisement while creating an
advertisement so that both the two advertisement strategy does not clash with
respect to the message it wants to convey.
Advertisement strategy during 1950’s:
In 1950 The first television commercial for Pepsi was broadcast on
thanksgiving day and during this phase Pepsi was portrayed as a taste enhancer
and thus the tag lines were ‘’ANT WEATHER IS PEPSI WEATHER .’’
Advertisement strategy during 1958:
Through this image we can infer that Pepsi was so famous in that time that in
almost each social occasion Pepsi were served as a drink and there after the
slogan came into existence ‘’BE SOCIABLE ,HAVE A PEPSI’’
6|Page
ADVERTISEMENT STRATEGY IN 1961:
Through this picture of 1961 we can say that how the couple is celebrating their
youth and Pepsi portray itself as young and lively .It has come up with a new
concept of cola with less calories in it, making them look young and beautiful
and fit.
7|Page
ADVERTISEMENT STRATEGY IN 2013:
The latest campaign of PepsiCo revolves around ‘’OH YES ABHI’’. It came
into existence at the time of IPL. Through this we can directly portray that this
advertisement is basically meant for youngster. This latest campaign of PepsiCo
campaign is focusing on their fans and their devotion towards their team. The
whole concept of campaign creatively summed up in the slogan ‘’YEH TEAM
KABHI TOH WOH TEAM KABHI,PAR PEPSI,OH YES ABHI’’.
SALES PROMOTION STRATEGY
Sales promotion strategy is an integral part of promotion of a product. In the
below picture we see that Pepsi has done really good in sales promotion. We
can infer from that photo that it’s a combo offer that Pepsi has put forward
where if one buys Pepsi he gets a burger free. By this way they not only attract
Pepsi lovers but also the people who love burgers. So it results in increase in
sales of Pepsi.
8|Page
In this picture we see that Pepsi promotes itself on the field if football. It says
that you’ll get a $6 worth of Pepsi (24oz) free with a ticket of air force football.
This is pretty exciting. Football lovers also try pepsi-cola.thus Pepsi reaches a
new segment of the crowd.
This is the discount coupon distributed by Pepsi where Pepsi is giving a $0.25
discount on every bottle of Pepsi bought by an individual holding this discount
coupon. This coupon has a time limit of validation thus creating an emergency
among the buyers to buy a cola and avail the offer.
This celebration coupon has come up with a new promotion concept .earlier
offers were only for a few lucky people, coupons were given on a lucky draw
basis, but Pepsi came up with a new strategy where a person gets a special offer
coupon when he buys a bottle or a can of Pepsi. This coupon gives him the
privilege of getting a bottle of Pepsi free on his next purchase or provides with
some exciting gifts.
9|Page
SEGMENTATION STRATEGY
TARGET MARKET:




Male and female
Think of themselves as hip or youthful
Middle class, middle income
Urban and rural dwellers.
 Pepsi segments its market in several ways.Pepsi, mainly segment their
market demographically assuming age, income and family size.pepsi’s
behavioural segmentation has been a key to the company’s success.
 Age is one of the most significant parts of the segmentation of pepsi.pepsi
introduces Pepsi diet for the people who are suffering from diabetic and for
those who are likely to avoid sugar and for the aged people specially 40
plus.pepsi mainly produces the Pepsi cola the main customer of Pepsi cola
is young people whose age is 10 to 35.
 On income basis Pepsi also segment their market by making little pack.
They offer a competitive price range to all class of people. They consider
the economic situation in our country. So they introduced Pepsi in different
price for different people whose income is different. They think about
student, poor people, and middle class people economic condition for their
pricing. Because the income of a rickshaw puller is very little so Pepsi
10 | P a g e
introduces the 200 ml bottle and the price of this bottle is 12rs.so anyone
can easily drink Pepsi by spending Rs.12.
 Family size basis is also a base segmentation for Pepsi. In our society, there
are many families with different family size. So Pepsi is served into many
size 250ml, 500ml, 1L, 1.5L, 2L pack. People can easily choose a suitable
pack based on their family size.
ANALYSIS OF PRODUCT
PepsiCo is the second largest food and beverage company in the world. It
manufactures markets and sells a variety of salty, sweet and grain based snacks,
carbonated and non-carbonated beverages PepsiCo seeks to achieve growth and
long term value in its operational activities by creating competitive advantages
through new product innovation.
Ingredients of Pepsi:




Carbonated water
Sugar (10.6%)
Natural colour (150d)
Acidity regulators (338).
SWOT Analysis:
11 | P a g e
Strength:






Brand name
Quality conscious
Good relation with franchise
Good Market share
Strong marketing and advertising
Sponsors for many events like IPL.
Weakness:




Decline in taste
Political franchises
Short term approach
Low consumer knowledge
Opportunities:




Increase in population
Changing social trend
Diversification
People becoming brand and quality conscious
Threats:
 Local products which imitates Pepsi
 People becoming health conscious
 Threat of labour strikes.
12 | P a g e
GENERIC COMPETITION
1. MAZAA AND SLICE:
The foremost competition to Pepsi is Mazaa because it is selling at
a competitive price. Since mango is not available throughout the
year so coke came up with an artificial flavoured mango drink
which is a competition for Pepsi.
2. FRESH JUICES:
The most tough competition to Pepsi are juices. This is because
juices are available at a very reasonable rate and quench our thirst.
3. PACKAGED JUICES:
Now with the non availability of fruits throughout the year a
packaged drink is now preferred. Price is also not very high. Like
Tropicana juice of PepsiCo and real juice of dabur.
4. B-LUE DANONE:
It is a water based drink that restores body and mind anywhere and
it is available in apple and guava flavoured PET bottle at a price of
Rs.30. It is flavoured water for health conscious people. It contains
vitamin B12.
5. TEA,COFFEE:
These are traditional drinks which generally people prefer. It is
healthy and refreshing and can be had at any hour of the day. And
it can be had as many times as one wants to throughout the day.
STRATEGIES
ADOPTED
TO
TACKLE
COMPETITION OR PRIME MARKET EXPANSION
PRICING STRATEGY:
Pepsi again decides its price on the basis of competition .The best think about
the company Pepsi is that it is very flexible and it can come down with the price
very quickly. The company is renowned to bring the price down even up to half
if needed. But this risk taking attitude has also earned Pepsi losses. Though
lowering the price would attract the customers but it would not help them cover
up the cost incurred in production hence causing them losses. This was the
situation earlier but now Pepsi is a full-fledged and growing company. It has
covered all its losses and is now growing at a rapid rate.
13 | P a g e
PRICING STRATEGY FOR BUYERS AND SUPPLERS:
SUPPLIERS:
The soft drink industry have a negotiating advantage from its suppliers as most
of the raw materials needed to produce concentrate are basic commodities like
Colour, flavour, caffeine or additives, sugar, packaging. The producers of these
products have no power over the pricing hence the suppliers in this industry are
weak. This makes the soft drink industry a cheap input industry which helps in
increasing their gross margin.
BUYERS:
The major channels for the Soft Drink industry are food stores, Fast food
fountain, vending, convenience stores and others in the order of market share.
The profitability in each of these segments clearly illustrate the buyer power and
how different buyers pay different prices based on their power to negotiate.
FOOD STORES:
These buyers in this segment are somewhat consolidated with several chain
stores and few local supermarkets, since they offer premium shelf space they
command lower prices, the net operating profit before tax (NOPBT) for
concentrate producer’s is high.
CONVENIENCE STORES:
This segment of buyer’s is extremely fragmented and hence has to pay higher
prices.
FOUNTAIN:
This segment of buyer’s are the least profitable because of their large amount of
purchases they make, it allows them to have freedom to negotiate. Coke and
Pepsi primarily consider this segment “Paid Sampling” with low margins.
NOPBT in this segment is very low.
VENDING:
This channel serves the customer’s directly with absolutely no power with the
buyer.
14 | P a g e
FRANCHISING STRATEGY:
The Pepsi Bottling Group (PBG) is the world's largest manufacturer, seller and
distributor of Pepsi-Cola beverages. Many of Pepsi's bottlers are privately
owned, franchise operations. Pepsi's product line includes some of the world's
most recognized consumer brands. Pepsi, Diet Pepsi, Pepsi Twist, Mountain
Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer account for
nearly one-third of total soft drink sales in the United States.
Pepsi-Cola North America's non-carbonated beverage portfolio includes
Aquafina, which is the number one brand of bottled water in the United States,
Dole single-serve juices and SoBe, which offers a wide range of drinks with
herbal ingredients. The company also makes and markets North America's bestselling, ready-to-drink iced teas and coffees via joint ventures with Lipton and
Starbucks, respectively.
DISTRIBUTION STRATEGY
 Company (PepsiCo): PepsiCo India provides the salt to all the bottling
plants in the Country that carry out the bottling operations.
 COBO: These are Company owned bottling operations operating directly
under the Company. Out of 32 bottling plants, PepsiCo owns 15.
 FOBO: These are Franchise owned bottling operations. R K Jaipuria group
does all the franchisee-bottling operations for PepsiCo India; currently R K J
Group has 17 bottling plants for Pepsi.
 Warehouses: These are Company or franchisee owned warehouses spread
over various locations that cover the respective territories and come under
15 | P a g e





the purview of their respective Area or Territory Offices. Stocks are sent
from the bottling plants to these warehouses, from where they are sent to the
C & F centres and Distributor Points.
C & F Centres: These are the biggest centres in the distribution network
and receive proper assistance from the Company (either COBO or FOBO).
The C & F center is owned by a private player and not by the Company. The
vehicles (Delivery Vans) are owned by the Company, and the Salesmen at
the C & F points are on the Company Payroll.
Distributors: These are small, compared to C & F centres. Everything at
the Distributor point owned and managed by the distributor, even the
salespersons are on the Distributors payroll.
Wholesalers: These are smaller than C & F centres and Distributor points
and get the stock directly from the Company or Franchisee. They get their
stock directly from the Company and thus get special rates and extra
discounts from the Company.
Slums: They are generally smaller than the Wholesalers are. However, they
get special discounts from the C & F centres and Distributor points.
Retailer: Retailers are the most important chain in the distribution channel
of Pepsi as they are the only point of contact with the customers. Retailers
get their stock from all the other channel members in the distribution
channel.
FUTURE DIRECTIONS FOR THE BRAND
Increasing the per capita consumption of its beverages:
Pepsi should continue its efforts at increasing the per capita consumption of its
beverages in the country.
Indian PCC currently is at 11 servings a year. This requires a comprehensive
activation of the Indian market by addressing acceptability, affordability and
availability of its products.
Expanding its distribution networks:
Pepsi has to make sure that it is available at an arm’s length always. It should be
accessible at any time any place any time. It is an impulsive product. People buy
it if they see it or when they feel like having it. If it’s not available people would
go for the substitute thus Pepsi should make sure that it is available.
16 | P a g e
Leading the beverage revolution in India:
The company continues to be strong in India. While it continues to maximise its
carbonated soft drink potential through various pack, pricing, occasion based
strategies across town-classes in India.
Young generation being targeted:
Pepsi targets the youth of the nation and it should continue to do so. The brand
is more attractive because of the fact that it appeals the young crowd. Pepsi
even changes its celebrities as time changes which is good. It shows that even if
time makes people old the cola would remain young and refreshing always.
Tie ups with IPL:
Targeting the cricket lovers is one of the best strategies adopted by Pepsi and it
should keep the bond strong. Getting all cricketers to promote the brand
collectively is an intelligent way to grab attention.
Pepsi delivered on its promise to boost marketing efforts on its core brands.
This helped the company to grow its net revenue by 17% over the last year.
In 2011, the brand trust report in India included Pepsi in the list of the most
trusted brands of the country.
This shows the love that the people of India have for the brand.
17 | P a g e
REFERENCES
 http://softdrinkcolawar.blogspot.in/2012/12/pepsipositionig-pepsi-has-historically.html
 http://www.pepsico.com/Company/Our-History.html
 https://en.wikipedia.org/wiki/Pepsi-Cola
 http://www.exchange4media.com/49620_pepsi%E2%
80%99s-new-positioning-high-on-the%E2%80%98youngistaan%E2%80%99brigade.html
 http://danielsethics.mgt.unm.edu/pdf/PepsiCo%20Ca
se.pdf
 http://pepsicoindia.co.in/brands/pepsi.html
 http://pepsicoindia.co.in/brands/pepsi.html
 https://www.google.co.in/search?q=future+plans+of+
pepsi&oq=future+plans+of+pepsi&aqs=chrome.0.69i
57j0l3j69i62l2.7302j0&sourceid=chrome&ie=UTF-8
18 | P a g e