Advertising Sales and Promotion

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    Advertising Sales and Promotion

    Project onAdvertising and Sales Strategies of Pepsi

    Submitted to: Jyotsna Mukherjee Made by:

    1)Trisha Badlani

    2)Yamija Sajwan

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    Introduction

    Advertising is Salesmanship Mass Produced

    Advertising is a common means used by many organizations or companies all over

    the world to make their products or services well known and are easier to be sold.

    Every year many hundreds of advertisements are published through out the mass

    media such as on billboards, on sign boards, on radios, in newspapers, on

    television and internet, which are the main instruments, that we use and see

    everyday. Although, there are not many successful products and not everyone

    remembers them but PEPSI advertisings are different because most of their

    customers are repeat consumers. Therefore, this report will discuss the advertisingstrategies of PEPSI and how it stands as one of the leaders of the cola beverage

    industry. For several years the main consumers of PEPSI were teenagers and

    young adults. Nowadays Pepsi wants to gain more market share so it is extending

    its market by producing many range of product to suite every groups of consumer.

    Pepsi is the one of leader of beverage industry so it has to work more to gain more

    market share and keep its position in the top of cola industry .As we know the main

    customer target is teenagers and young adults and they are very much interested in

    sports and music and therefore Pepsi endorses mainly sports and music celebrities.In fact, the company is recognized worldwide as a leader in advertising, marketing,

    sales and promotional initiatives.

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    Integrated Marketing Communication Tools Used By Pepsi

    As we know integrated market communication is the integration of all the

    marketing tools, approaches and resources within a company which maximizesimpact on consumer mind and hence results in maximum profit at minimum cost .

    Following are the five basic tools of integrated marketing communication

    y Advertisingy Sales promotiony Public relationy Direct marketingy Personal selling1)Advertising : Advertising is the major strength of PepsiCo it has a luxury to

    spent 225milliondollars in advertising each year this enormous advertising

    budget allows Pepsi to reinforce their products with reminder advertising

    and promotions. This also allows Pepsi to introduce new products and very

    quickly make the consumer aware of their new products

    2) Sales promotion: Pepsi uses sales promotion through organizing various

    contests, demonstrations, samples, coupons, pamphlets, displays. This helpsPepsi to accelerate short term sales by building brand awareness and

    encouraging repeat buying.

    3)Public relations: under this tool Pepsi promotes itself through public

    appearances, news/press releases or event sponsorships, to build trust and

    goodwill by presenting the product, company or person in a positive light.

    4)Direct marketing : under this tool Pepsi utilizes internet services,

    catalogues, encourage direct responses to radio and TV ,n order to reach

    targeted audiences to increase sales and test new products and alternatemarketing tactics. Now a days Pepsi is widely used in social networking

    sites such as orkut and face book etc as its target audience is largely attached

    to these sites.

    5)Personal selling: it is initiated by setting sales appointments and meetings,

    home parties, making presentations and any type of one to one

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    communication to reach their customers and strengthen their relationship

    with their clients.

    Consumers

    PepsiCo is committed to marketing its products to all groups, treating all

    customers with respect, sensitivity and fairness, while providing some of the

    greatest products on earth. Early in its history -- as far back as the 1940s -- Pepsi-

    Cola recognized the importance of diversity. Pepsi pioneered targeted marketing

    and national lifestyle advertising featuring minorities. We developed education

    and sports programs spotlighting minorities. We partnered with many groups to

    create programs that contribute to minority communities. We sponsored major

    music tours by entertainers such as Tina Turner. We support minority media and

    interests. Over the years, our success has been recognized with numerous awards.

    Most importantly, our products are purchased and enjoyed by all groups of

    consumers.

    Consumer Solution

    PepsiCo offers a wide variety of products that ranges from Energy drinks, Tea,

    Water, to carbonated drinks. Each variety aims to meet the needs of different

    consumers of different demographics. For example, Energy drinks such as

    Gatorade are catered for athletes whereas Tea such as Lipton Iced Tea aims to

    provide quality taste for regular consumers. Therefore PepsiCo is able to reach a

    large group of customers from different demographics because of its product

    variation.

    Customer Cost

    Despite the fact that PepsiCo frequently lowers its price and eventually raises its

    price again, buyers have not been affected by this pricing strategy. On top of that,

    Pepsi has always been very flexible and reasonable with its pricing strategy.

    Depending on the product, prices are ranged from moderately low to hig

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    Advertising Objectives

    Setting of advertising objective is a very important step in advertising planning of

    any company .following is the advertising objectives building brand image.

    1) Building brand image:As we know PepsiCo invests a lot in creating itsstrong global brand and corporate image a strong brand creates a brand

    equity .PepsiCo has been effective in creating a top of mind brand image in

    the mind set of its customers .currently Pepsi has increased importing and

    exporting activities This makes Pepsi a memorable and accepted global

    brand as it focuses on the three vital factors for success i.e. brand awareness,brand image and brand equity.

    2) Providing information: PepsiCo uses its advertising strategies to provideinformation to both customers and business buyers this information includes

    letting the customers know the retailer store hours, business locations and

    also detail product specification. PepsiCo works hard on providing

    information whenever and wherever required as information is one

    component of persuasion, another objective of various advertising programs.

    3) Persuasion:Pepsi has been very effective in persuading its consumers toprefer its brand to others .persuasion techniques used by PepsiCo are in

    fields of broadcast media such as television and radio rather than in print

    advertising.

    4)Encouraging action: PepsiCo has set motivational goals for its advertisingprograms. Its television commercial encourage viewers to take action .

    Its ads like yeh hai youngistan mere jaan andgeneration nexthas been

    very effective in encouraging action and hence increasing its sales.

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    Social and Ethical Issues

    Ethical issues concerning Pepsi have common interest in generating revenues

    through distribution of their products through vending machines on primary and

    high school campuses across the country. Unfortunately, Pepsi has been ineffective

    in responding to outspoken critics such as the Center for Science in the Public

    Interest (CSPI). The CSPI is leading a campaign of public health experts to raise

    awareness of the adverse health consequences of increased soda consumption.

    However, Pepsi and Coke would benefit through a concerted marketing effort to

    encourage distribution of soft drinks in schools. For example, no direct connection

    has been made between soda consumption and increased obesity.17 Moreover,

    school officials across the country view soda vending machine contracts as a boon

    to ailing school district budgets. One official in the Washington D.C. school

    district calls its contract with Coca-Cola a godsend, because it provides money

    for proms, bus tokens for needy students, and extra school books.18 Finally, Pepsi

    companies distribute more than carbonated beverages through vending machines

    they also distribute bottled water, juices, and sports drinks. Pepsi and Coke would

    stand to benefit from shifting their focus from competitive actions to obtain

    exclusive school district contracts to creating a unified marketing approach that

    educates consumers about their community involvement and eliminates negative.

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    Segmentation Target and Positioning

    Market segmentation

    Segmentation variables Data

    DEMOGRAPHIC

    Age 14- 30 plus

    Gender Male, female

    Family size 1 2,3-4,5 plus

    Family life cycle Married ,unmarried

    PSYCHOGRAPIC

    Social class Middle and upper class

    Life style Actualizes , fulfilled ,believers ,

    achievers, strivers, experience

    makers and strugglers

    BEHAVIOURAL

    Occasions Parties , birthdays , sports and

    regular occasions

    Benefits Quality , taste

    User status First time user ,

    Loyalty status Strong

    Readiness stage Aware , interested

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    Market Targeting Pepsi customers are mostly Teenagers and Young Adults

    between the ages of 14 to 30. It also targets at Schools, Colleges, Universities,Homes, Restaurants, Hotels, and Stores.

    Market Positioning PepsiCo plans to further create positions that will give

    products the greatest advantage in their target markets. Pepsi has been positioned

    based on the process of positioning by direct comparison and have positioned their

    products to benefit their target market

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    Slogans and logos

    1898 Brad's Drink

    1915 For All Thirsts - Pepsi: Cola

    1933 It's the Best Cola Drink

    1961 Now It's Pepsi for Those Who Think Young

    1963 Come Alive! You're in the Pepsi Generation

    1984 The Choice of a New Generation

    1989 A Generation Ahead

    1993 Be Young, Have Fun, Drink Pepsi

    1997 Generation Next

    2006 Pepsi. It's the Cola

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    Conclusion

    PepsiCo uses both national and international advertisements. Type of advertising

    with respect to product lifecycle that Pepsi adopts is a reminder type the reason

    behind this fact is that Pepsi is such a product that is at the maturity level currently,

    so for such a product companies mostly go for reminder types of advertisement so

    that they can penetrate more and more .before creating advertising message Pepsi

    gives lots of time to the factor that the message must gain customer attention. Thisis basically called clutter buster, means that only that

    Advertisement will leave impact on customer mind that has some specialty or

    uniqueness in it .for exp the Pepsi slogans youngistan ka WOW. Has gained

    tremendous customer attention. Pepsi advertises its product mainly through

    electronic media.

    Pepsi frequently has rewards programs with codes or messages printed on the

    bottom of the caps. These are the various advertising strategy used by Pepsi to

    enhance their sales.