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8/8/2019 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.