Embed Size (px)
Citation preview
11
PEPSI Stamford University BangladeshSpring 2010
22
LETTER OF TRANSMITAL
December 21, 2010Md. rabiul kabirAssistant Professor Department of Business AdministrationStamford University, Bangladesh.
Subject: Consumer Attitude towards The PEPSI Cola In the soft drink industry of Bangladesh.
Dear Sir,I’m glad to submit this report on “Consumer Attitude towards The PEPSI Cola” which you have assigned for me. In order to prepare this report, I have collected information from visiting the home pages of Pepsi cola and other sources.
I’m very much grateful to you for giving me the opportunity to find out and gain knowledge on this aspect of soft drink industry in Bangladesh. Writing this report is an experience for me which will help me in our practical life in future. I would like to thank you for providing me with such opportunity.Sincerely yours
----------------------Humayun Rashid
DECLARATION
PEPSI Stamford University BangladeshSpring 2010
33
I hereby declare that the thesis Report on “Consumer Attitude towards the PEPSI Cola In the soft drink industry of Bangladesh” submitted in partial fulfillment of the academic requirement for the Department of Master of Business Administration Program of Stamford University Bangladesh. This report has not been submitted by me before for any degree, diploma, title or recognition. It is persuade under the supervision of Md. rabiul kabir, Thesis Supervisor, Department of Business Administration, Stamford University Bangladesh.
………………………………..
(Humayun Rashid)
Id No: MBA 04011155
Batch No: 40th
Master of Business Administration
Stamford University Bangladesh
LETTER OF RECOGNITION
I hereby certify that the present work entitled “Consumer
Attitude towards the PEPSI Cola In the soft drink industry of
PEPSI Stamford University BangladeshSpring 2010
44
Bangladesh” in the fulfillment of the requirements for MBA is an
original contribution to the existing beverage industry knowledge
carried out by Humayun Rashid under my guidance and
supervision. No part of the Thesis Report has been submitted for
any degree, diploma, title or recognition before.
He is permitted to submit the Thesis Report. I wish his every
success in life.
................................
(Md. Rabiul kabir)Assistant Professor
Department of Business Administration,
Stamford University Bangladesh
ACKNOWLEDGEMENT
Through the thesis report program has to be done individually in a
sense of completion the credit hour but it is quite impossible to do
alone without the sincere and outmost co-operation of some
individuals. It is a very great and unique pleasure to me that I have got
a chance to thank some individuals for their help and encouragement
to make the thesis report successful. In this study, I received help from
PEPSI Stamford University BangladeshSpring 2010
55
different people. I express an appreciation for their sincere and
wholehearted co-operation in preparing in this report.
Firstly I would like to thank my supervisor Mr. Md. Rabiul kabir, Assistant Professor, Department of Business Administration in
Stamford University Bangladesh. For his guidance, inspiration and
constructive suggestions with the report as well as the period of my
thesis report submission in the university. I would like to take the
opportunity to thanks Ms. Nadia Farhana who have helped me from
time to time in during my thesis report prepares period.
Finally I want to express my gratitude to all the member of my family
who has always inspired me to make the job what it is today. Their
supports are always a source of inspiration for me.
Thanks to you all,
Humayun Rashid
Department Of Business Administration
Stamford University Bangladesh.
EXECUTIVE SUMMARY
Pepsi is a carbonated soft drink produced and manufactured by PepsiCo. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1898. Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy. 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. During the Great Depression, Pepsi gained popularity following the introduction in 1936 of a 12-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was slashed to five cents, sales increased substantially.
PEPSI Stamford University BangladeshSpring 2010
66
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 / Pepsi-Cola 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 six ounces per bottle for the price of five cents (a nickel), instead of the 12 ounces Pepsi sold at the same price. Coming at a time of economic crisis, the campaign succeeded in boosting Pepsi's status. In 1937 500,000,000 bottles of Pepsi were consumed. From 1936 to 1938, Pepsi-Cola's profits doubled. 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. 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.
T A B L E OF C O N T E N T
Chapter-1 Page No1.0 Background of the Report 09-12 1.1 Origin of the Report 091.2 Scope of the Study 091.3 Statement of the problem 091.4 Methodology 101.5 Objective 101.6 Source & Method of data collection 111.7 Limitations 11
Chapter-2 2.0 Pepsi History 13-17
Chapter-3 3.0 Pepsi Market Coverage 18-253.1 U.S. Marker 193.2 Australian Market 213.3 African Market 22
PEPSI Stamford University BangladeshSpring 2010
77
3.4 Russian Market 223.5 Eastern Europe Market 233.6 Asian Market 24
Chapter-44.0 Marketing Mix of Pepsi 26-484.1 Product of Pepsi 294.2 Pricing Situation 334.3 Place 364.4 Promotion 37
Chapter-5 5.0 Brand Evaluation 49-555.1 Name 505.2 Logo 515.3 Slogan 525.4 Symbol 535.5 Color 535.6 Packaging 535.7 Mix & Match of Brand Element 545.8 Pepsi Quality Dimension Measure 555.9 Value Innovation 55
Chapter-6 6.0 Product Differentiation 56-62
Chapter-77.0 Sales Evaluation 63-67
Chapter-88.0 Value & Position Evaluation 68-768.1 Perceived Value & Brand Sense 698.2 Pepsi Positioning 708.3 Secondary Brand Association 718.4 BCG Matrix 738.5 SWOT Analysis 748.6 Brand Identity & Value Proposition 758.7 Competitive Scenario 76
Chapter-98.0 Consumer Attitude Evaluation 77-849.1 Attitude Measurement Questioner 789.2 Attitude Component & Manifestation 819.3 Measuring Attitude Component 838.4 BCG Matrix 738.5 SWOT Analysis 748.6 Brand Identity & Value Proposition 75
PEPSI Stamford University BangladeshSpring 2010
88
8.7 Competitive Scenario 76
Chapter-1010.0 Recommendations, Conclusion & Reference 85-88 10.1 Recommendation 8610.2 Conclusion 8710.3 Reference 88
Chapter: 01Introduction
PEPSI Stamford University BangladeshSpring 2010
99
1.1 Origin of the Report:
The Project Work is a precondition for the completion of the Masters of
Business Administration Program of Stamford University, Bangladesh.
Each student has to work on a research project over the period
completion of the project work. The assigned topic for my project work
is” Attitude Measurement of Pepsi Market.” The project topic has
been assigned by me with the consent of my project instructor Md.
Kamruzzaman (Assistant Professor Department of Business
Administration, Stamford University, Bangladesh) and approved by
him.
1.2 Scope of the Study Study of this report is confined only the consumer’s attitude towards
PEPSI Cola. Basically attitudes have three components, these are-
cognitive component, affective component and behavioral component.
Through the survey I just try to find out the attitude towards the PEPSI
Cola in the soft drink industry of Bangladesh.
PEPSI Stamford University BangladeshSpring 2010
1.0 Background of the Report
1010
1.3 Statement of the ProblemThe behavior that consumers display in searching for, purchasing,
using, evaluating, and disposing of products and services that they
expect will satisfy their needs is called consumer behavior. Beverage
industry is a fast growing market in Bangladesh and different
companies are taking different marketing strategies to penetrate the
market. In this term paper I will try to find out consumer’s attitude
towards PEPSI Cola.
1.4 Methodology:
This study was carried out both on the basis of primary and secondary
data. For the primary data I administered an unstructured
questionnaire survey with some students of Stamford University
Bangladesh and conduct the telephone interview with the current
students of other reputed private universities, and some of the
prospecting students who are willing to get admission in the private
universities and also with some of the students of public universities to
known about their opinion about Pepsi. For secondary data I have gone
through several different web sites of the Pepsi, Diet Pepsi, and their
catalogs.
1.5 Objectives
The objective of the report are given below-
To analyze the current soft drinks market in Bangladesh.
To analyze the attitude component and manifestation.
To analyze the attitude component relative to the PEPSI Cola.
PEPSI Stamford University BangladeshSpring 2010
1111
1.6 Sources and methods of data Collection
For the report on customer attitude of PEPSI Cola I have chosen
following data collection methods:
1. Primary data collection methods-
Questionnaire: For data collection methods I prepared a set of
questionnaire to collect data from customer who consume drinks
on regular basis or occasionally.
2. Review of Secondary data-
Annual report of PEPSI COLA: I have collected and reviewed
an annual report of PEPSI COLA.
Internet search: I have search the web site of PEPSI.
1.7 Limitations
Certain limitations are faced while prepare this term paper is –
Due to time constraint I could not collect data properly and make
the report a more resourceful one.
During the fill up the questionnaire most of the respondent may
not give the proper information.
Political condition was so terrible so I can’t go to the company to
know about their information.
PEPSI Stamford University BangladeshSpring 2010
1212
As the political condition was so terrible I focus students for my survey and depend on Internet.
Chapter: 02Pepsi History
PEPSI Stamford University BangladeshSpring 2010
2.0 History
1313
The drink is the invention of Caleb Bradham, a pharmacist and drugstore owner in New Bern, North Carolina. The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a young pharmacist named Caleb Bradham began experimenting with combinations of spices, juices, and syrups trying to create a refreshing new drink to serve his customers. He succeeded beyond all expectations because he invented the beverage known around the world as Pepsi-Cola.
Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into a gathering place. He did so by concocting his own special beverage, a soft drink. His creation, a unique mixture of kola nut extract, vanilla and rareoils, became so popular his customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and advertised his new soft drink. People responded, and sales of Pepsi-Cola started to grow, convincing him that he should form a company to market the new beverage.
In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed to bottle Pepsi so that people could drink it anywhere.
The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to bottle Pepsi to independent investors, whose number grew from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states.
Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in the back room of Caleb's pharmacy. Building a strong franchise system was one of Caleb's greatest achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy foundation. They were the cornerstone of the Pepsi-Cola enterprise. By 1907, the new company was selling more than 100,000 gallons of syrup per year.Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the town of New Bern pictured it on a postcard. Famous racing car driver Barney Oldfield endorsed Pepsi in
PEPSI Stamford University BangladeshSpring 2010
1414
newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race."
The previous year, Pepsi had been one of the first companies in the United States to switch from horse-drawn transport to motor vehicles, and Caleb's business expertise captured widespread attention. He was even mentioned as a possible candidate for Governor. A 1913 editorial in the Greensboro Patriot praised him for his "keen and energetic business sense."
1902 Bradham applies to the U.S. Patent Office for a trademark for the Pepsi-Cola name.
1903 In keeping with its origin as a pharmacist's concoction, Bradham's advertising praises his drink as "Exhilarating, invigorating, aids digestion."
1905 A new logo appears, the first change from the original created in 1898.
1906 The logo is redesigned and a new slogan added: "The original pure food drink." The trademark is registered in Canada.
PEPSI-COLA BOTTLING PLANTS IN 1906:
Wilson, NC Charlotte, NCFayetteville, NC
Wilmington, NC
Washington, NC
Tarboro, NC Kinston, NCGreensboro, NC
Raleigh, NC New Bern, NC
Darlington, NC Norfolk, NC Suffolk, VAHuntington, WV
Renserverte, WV
1954 "The Light Refreshment" evolves to incorporate "Refreshing Without Filling."
1961 Pepsi further refines its target audience, recognizing the increasing importance of the younger, post-war generation. "Now its Pepsi, for those who think Young" defines youth as a state of mind as much as a chronological age, maintaining the brand's appeal to all market segments.
1964 A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.
PEPSI Stamford University BangladeshSpring 2010
1515
1966 Diet Pepsi's first independent campaign, "Girlwatchers," focuses on the cosmetic benefits of the low-calorie cola. The "Girlwatchers" musical theme becomes a Top 40 hit. Advertising for another new product, Mountain Dew, a regional brand acquired in 1964, airs for the first time, built around the instantly recognizable tag line, "Ya-Hoo, Mountain Dew!"
1982 With all the evidence showing that Pepsi's taste is superior, the only question remaining is how to add that message to Pepsi Generation advertising. The answer? "Pepsi's got your Taste for Life!," a triumphant celebration of great times and great taste.
1983 The soft drink market grows more competitive, but for Pepsi drinkers, the battle is won. The time is right and so is their soft drink. It's got to be "Pepsi Now!"
1989 "The Choice of a New Generation" theme expands to categorize Pepsi users as "A Generation Ahead!"
1991 "You got the Right one Baby" is modified to "You got the Right one Baby, Uh-Huh!" The "Uh-Huh Girls" join Ray Charles as back-up singers and a campaign soon to become the most popular advertising in America is on its way. Supermodel Cindy Crawford stars in an award-winning commercial made to introduce Pepsi's updated logo and package graphics.
1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball superstar Shaquille O'Neal is rated as best in U.S.
1995 - In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the year's national advertising championship. 1998 - Pepsi celebrates its 100th anniversary. PepsiCo. Chairman and CEO Roger A. Enrico donates his salary to provide scholarships for children of PepsiCo employees. Pepsi introduces PepsiOne - the first one calorie drink without that diet taste!2000 Faith Hill, Sammy Sosa and Ken Griffey Jr. - three of the hottest names in entertainment - signed new deals to endorse Pepsi-Cola products. Singing sensation Faith Hill, who has rocked the charts with her top 10 hits, stared in a new "Joy of Cola" ad with "Pepsi Girl" Hallie Eisenberg. The ad debuted during the March 26 Academy Awards broadcast. Major League Baseball All-Stars Sammy Sosa and Ken Griffey Jr. also stepped up to bat in new Pepsi commercials. In addition to the ads, each slugger was be involved in Pepsi's "Takin' it to the Fields" youth
PEPSI Stamford University BangladeshSpring 2010
1616
baseball and softball programs, as well as appeared on in-store promotional materials for the brand. From Boston to San Francisco and everywhere in between, consumers' cola choice is clear. In more than 30 markets currently conducting the Pepsi Challenge, the tastes of Pepsi and Pepsi ONE are preferred over Coke products in every market, especially in Philadelphia, Dayton, Tucson, San Antonio and Seattle. In a cross-promotion designed to further engage youth in our products, consumers who take the Pepsi Challenge receive "starter points" for this summer's "Choose Your Music" program. Participants can also have their photos taken and posted online at www.pepsi.com, driving traffic to and awareness of Pepsi's Internet site.
2001 Pop superstar Britney Spears appears in her first Pepsi commercial during the 2001 Academy Awards. The high-energy spot also runs online, where more than 2 million fans click their way to Britney's own version of "The Joy of Pepsi." Pepsi Stuff.com lets consumers redeem points from specially marked packages of Pepsi products for more than a half-million cool prizes, and proves to be Pepsi's most popular online promotion ever. Colombian singing sensation Shakira stars in a series of new commercials for Pepsi just as her debut English-language album hits stores in the U.S. At the same time, Pepsi agrees to sponsor the Latin pop star's worldwide concert tour. Pepsi unveils its FunWraps Factory, letting consumers personalize Pepsi cans with fun designs and unique messages. With a wide variety of sports, entertainment and holiday images to choose from, Pepsi drinkers begin creating their own can labels for just about any occasion. Pepsi puts "a little twist on a great thing", introducing lemon-flavored Pepsi Twist and Diet Pepsi Twist. The product launch marks the return to lemon-flavored colas for Pepsi, which distributed Pepsi Light until the mid-1980s.
PEPSI Stamford University BangladeshSpring 2010
1717
Chapter: 03Pepsi Market Coverage
Pepsi is one of the leading cola brand in the market. In 2004 it crosses its rivalry Coca cola by 4% in overall market. To analyze the market of Pepsi we divide its market in to different region. These are:
1. US Market2. Australian Market3. African Market4. Russian Market5. European Market 6. Asian Market
3.1 US MARKET
PEPSI Stamford University BangladeshSpring 2010
3.0 Pepsi market
1818
Product those running in US market are:
PEPSI Stamford University BangladeshSpring 2010
1919
Headquartered in New York, the US-based PepsiCo is one of the world's leading beverage and snacks food companies. In its 2002 annual report, the company claimed to have the largest share in the US beverage markets. PepsiCo served diverse markets with its six group companies - Frito-Lay North America, Frito-Lay International, Pepsi-Cola North America, Pepsi Beverages International, Gatorade/Tropicana North America and Quaker Foods North America (Refer Exhibit I). For the fiscal year ended December 2002, PepsiCo Inc. (PepsiCo) reported revenues of $25.11 billion, an increase of 6.8% from the 2002 revenues of $23.51 billion (Refer Exhibit II). Analysts felt that one of the main reasons for the company's massive growth over the decades and the leadership status it has acquired in almost all its business segments was PepsiCo's efficient distribution and logistics management operations. Depending on the product involved, PepsiCo chose between the various standard distribution methods employed, such as the Direct Store Delivery (DSD) system, the broker warehouse system, the vending and food service system and the pre-sell method. PepsiCo adapted these systems to the local conditions of the various countries in which it operated. PepsiCo's highly advanced distribution system was well supported by state-of-the-art logistics systems. PepsiCo upgraded its technical capabilities consistently in order to strengthen its logistics management activities. PepsiCo's bottlers employed wireless technologies to strengthen their distribution system and effectively serve the customers in the markets in which they operated. However, with its vast worldwide operational network and good market presence globally, PepsiCo still did not put enough effort into integrating and streamlining the operations of its various group companies/divisions. This was undoubtedly a difficult task, but the then CEO Roger Enrico (Enrico) announced the launch of the 'Power of One' program through which, he said, the company would achieve this streamlining of operations, in 1998. PepsiCo would generate savings worth millions of dollars if the program was implemented well. However, the program had not got off the ground even by early 2004.
3.2 AUSTRALIAN MARKET
PepsiCo. was formed in 1939 of Burse Limited, one of Australia’s oldest corporations. The company is a leading to a concentration on its core businesses of beverages and snack foods.
PEPSI Stamford University BangladeshSpring 2010
2020
In 1952 Burse made its first beverages investment overseas with the acquisition of Pepsi bottling franchises in Vienna and Graz, Austria. In 1989 Pepsi sold its snack foods interests to Marshall Foods and, as a result, now focuses entirely on beverages. Pepsi rapidly expanded its global business to include operations in many European and Asia-Pacific countries. In 1998 the European operations were established as a separate European Headquartered anchor bottler company and Pepsi now focuses exclusively on the Asia-Pacific region. Pepsi is the principal Pepsi licensee in Australia and independently manufactures its own soft drinks and mineral waters. Pepsi was introduced to Australia in 1937 and by early 1938 the first manufacturing plant began operating in Sydney. Business began slowly, but the arrival of American troops to Australia in 1942 had significant impact on both sales and market acceptance. Licenses were granted to various bottlers in the 1940's and 1950's. CCA entered the Australian beverage industry in 1964 and by 1990 had acquired dall the Australian. Pepsi bottling licensed territories in Australia, except for those in part of the Northern Territory.
Key Brands
1. Crystal Pepsi2. Pepsi Ice
3. Pepsi Lime
4. Pepsi Max Twist
5. Pepsi Cafechino
3.3 AFRICAN MARKET
Established in Johannesburg in 1948 and now operational in almost every African market, the Pepsi Company is Africa's one of the important soft drinks. Every day, about 58 million servings of Pepsi products are consumed in Africa. These are produced and distributed by over 170 bottling and canning plants, and then sold by 900,000 retail partners, making the Pepsi system Africa's largest consumer goods provider. With over 60,000 employees, the Pepsi system in Africa is also the continent's largest private In 2004, The Pepsi Company decided to redesign its African strategic business unit in order to drive top line growth in key markets, priorities investments and make faster decisions. Africa practice, which has been retained by the company for the past three years to provide a range of services, was asked by Pepsi.
PEPSI Stamford University BangladeshSpring 2010
2121
3.4 RUSSIAN MARKET
In 1972, Pepsi signed an agreement with the Soviet Union which made it the first Western product to be sold to consumers in Russia. This was a landmark agreement and gave Pepsi the first-mover advantage. Presently, Pepsi has 23 plants in the former Soviet Union and is the leader in the soft-drink industry in Russia. Pepsi outsells Coca-Cola by 6 to 1 and is seen as a local brand. Also, Pepsi must counter trade its concentrate with Russia's Stolichnaya vodka since rubles are not tradable on the world market. However, Pepsi has also had some problems. There has not been an increase in brand loyalty for Pepsi since its advertising blitz in Russia, even though it has produced commercials tailored to the Russian market and has sponsored television concerts. On the positive side, Pepsi may be leading Coca-Cola due to the big difference in price between the two colas. While Pepsi sells for Rb250 (25 cents), Coca-Cola sells for Rb450. For the economy size, Pepsi sells 2 liters for Rb1,300, but Coca-Cola sells 1.5 liters for Rb1,800. Coca-Cola, on the other hand, only moved into Russia 2 years ago and is manufactured locally in Moscow and St. Petersburg under a license. Despite investing $85 million in these two bottling plants, they do not perceive Coca-Cola as a premium brand in the Russian market. Moreover, they see it as a "foreign" brand in Russia. Lastly, while Coca-Cola's bottle and label give it a high-class image, it is unable to capture market share.
3.5 EASTERN EUROPE MARKET
Both Coca-Cola and Pepsi are trying to have their colas available in as many locations in Eastern Europe, but at a cost which consumers would be willing to pay. The concepts which are becoming more important in Eastern Europe include color, product attractiveness visibility, and display quality. In addition, availability (meeting local demand by increasing production locally), acceptability (building brand equity), and afford ability (pricing higher than local brands, but adapting to local conditions) are the key factors for Eastern Europe. Both companies hope that their western images and brand products will help to boost their sales. Coca-Cola has a universal message and campaign since it feels that Eastern Europe is part of the world and should not be treated differently. Currently, it is difficult to say who is winning the cola wars since the data from the relatively new market research firms focusses on major cities. Pepsi had a commanding 4 to 1 lead in 1992 in the former Soviet Union. Without this area, Coca-Cola has a 17% share versus Pepsi's 12% share in the soft drink industry. While both companies have been in Eastern Europe for many years, the main task now is to develop the market. Coca-Cola and Pepsi are in
PEPSI Stamford University BangladeshSpring 2010
2222
a dogfight, but both will end up as winners. In the end, the ultimate winner will be the Eastern Europeans who will have access to some of the world's best soft drinks.
3.6 ASIAN MARKET
China market
Coca-Cola originally entered China in 1927, but left in 1949 when the Communists took over the country. In 1979, it returned with a shipment of 30,000 cases from Hong Kong. Pepsi, which only entered China in 1982, is trying to be the leading soft-drink producer in China by the year 2000. Even though Coca-Cola's head start in China has given it an edge, there is plenty of room in the country for both companies. Currently, Coca-Cola and Pepsi control 15% and 7% of the Chinese soft-drink market respectively. The Chinese market presents unique problems. For example, 2,800 local soft-drink bottlers, many of whom are state-owned, control nearly 75% of the Chinese market. Those bottlers located in remote areas have virtual monopolies (The Economist, 67). The battle for China will take place in the interior regions. These areas are unpenetrated as most of the foreign soft-drink producers have set up in the booming coastal cities. China's high transportation and distribution costs mean that plants must be located close to their markets. Otherwise, in a country of China's size, Coca-Cola and Pepsi risk pricing their products as luxury items. In China, it is easier and politically safer to expand through joint ventures with local bottlers. It is expected that, in China, the company that wins the cola war will win based on the locations of their bottling plants and the quality of the partners they choose (The Economist, 67). Coca-Cola is bottled at 13 sites across China; five of these are state-owned. Also, Coca-Cola owns 2 concentrate plants in China. By 1996, Coca-Cola and its joint venture partners will have invested nearly $500 million in China. Pepsi is planning a $350 million expansion plan that will add 10 new plants. Both companies are ploughing profits straight back into expansion. They reason that any returns will not come until the next century.
Indian Market
Coca-Cola controlled the Indian market until 1977, when the Janata Party beat the Congress Party of then Prime Minister Indira Gandhi. To punish Coca-Cola's principal bottler, a Congress Party stalwart and longtime Gandhi supporter, the Janata government demanded that
PEPSI Stamford University BangladeshSpring 2010
2323
Coca-Cola transfer its syrup formula to an Indian subsidiary (Chakravarty, 43). Coca-Cola balked and withdrew from the country. India, now left without both Coca-Cola and Pepsi, became a protected market. In the meantime, India's two largest soft-drink producers have gotten rich and lazy while controlling 80% of the Indian market. These domestic producers have little incentive to expand their plants or develop the country's potentially enormous market (Chakravarty, 43). Some analysts reason that the Indian market may be more lucrative than the Chinese market. India has 850 million potential customers, 150 million of whom comprise the middle class, with disposable income to spend on cars, VCRs, and computers. The Indian middle class is growing at 10% per year. To obtain the license for India, Pepsi had to export $5 of locally-made products for every $1 of materials it imported, and it had to agree to help the Indian government to initiate a second agricultural revolution. Pepsi has also had to take on Indian partners. In the end, all parties involved seem to come out ahead: Pepsi gains access to a potentially enormous market; Indian bottlers will get to serve a market that is expanding rapidly because of competition; and the Indian consumer benefits from the competition from abroad and will pay lower prices. Even before the first bottle of Pepsi hit the shelves, local soft drink manufacturers increased the size of their bottles by 25% without raising costs.
US beverage giant PepsiCo has targeted 6 countries in Asia out of 29 world wide that it says it needs to be among the top-selling brands in 2002.
Asian markets targeted are China, South Korea, Thailand, India, the Philippines, and Vietnam.
According to Ron McEachern, president of PepsiCo Beverages International (PBI) Asia, "...Operations in those countries will get significant support from us, including marketing budgets and product development..."
Mr McEachern said that soft drinks accounted for only 20% of beverage consumption in Asia, unlike in North America where they were the most popular drink.
Diversification is also a strategy - Pepsi-Co aims to become a 'total beverage' operation, introducing not only new soft drinks but also other products. One example is the launch of Tropicana brand fruit juice later on this year.
PEPSI Stamford University BangladeshSpring 2010
2424
Chapter: 04
Marketing Mix of PEPSI
PEPSI Stamford University BangladeshSpring 2010
4.0 Marketing Mix
2525
Qualities of the product are the main actors to take part in attitudes component. If the product quality is good people will satisfy and they will purchase in future and recommend it to others. As result new people orientation towards product will be good and he becomes the loyal customer of that product.
Bangladesh is a country of river, where most of the people are related with agriculture. In this country people believe in different religion and culture. Different religions have different festivals. Consumer Behavior is directly related with religion in terms of products that are symbolically and ritualistically associated with the celebration of religious holidays and occasion like Eid, Ramadan, Puja, Chrismas etc. In that time people consume huge amount of soft drinks. During the Ramadan, Eid and other festivals, PEPSI cola use different kinds of packaging label with the purpose of attracting the common people and simply creating a difference. They also give different kinds of advertise for these types of occasion. As a result these religious festivals are uses for conditioning people with PEPSI Cola.
In the marketing mix most of the information I show is based on foreign country context. But few of the information is in bangladesh contex. Because of the lack of information and support I take the support of internet. As long as information regarding product, price, promotion and distribution is shown below.
The Marketing Mix model (also known as the 4 P's) can be used by marketers as a tool to assist in defining the marketing strategy. Marketing managers use this method to attempt to generate the optimal response in the target market by blending 4 variables in an optimal way.
It is important to understand that the Marketing Mix principles are controllable variables. The Marketing Mix can be adjusted on a frequent basis to meet the changing needs of the target group and the other dynamics of the marketing environment. In order to achieve the marketing objectives Pepsi have a strategy that includes different elements - the various parts of the marketing mix. Calling it a mix reminds Pepsi to try and get the balance right between the different elements.
The four P's of the marketing mix of Pepsi:
Product Price
PEPSI Stamford University BangladeshSpring 2010
2626
Place (distribution) Promotion
Figure: Marketing Mix
These four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response.
PEPSI Stamford University BangladeshSpring 2010
Product becomes Customer needs and wants
Price becomes Cost to the user
Place becomes Convenience
Promotion becomes Communication
27Product is the solution of a particular problem. In this case, defining the characteristics of product or service to meet the customers' needs that can satisfy them.
List of Pepsi types that business all over the world
Colas Related Crystal Pepsi: Discontinued clear version of cola; introduced in
1992 and sold until 1993. Crystal by Pepsi: Discontinued (non-cola) citrus flavored
reformulation of Crystal Pepsi. Pepsi: PepsiCo's signature cola flavor. Pepsi AM: Contains more caffeine than a regular Pepsi and
marketed as a morning drink. No longer produced. Pepsi Blue: A blue colored, (non-cola) fruity variety of soda. No
longer produced. Pepsi Fire: a limited edition variety which is sold in Guam, Saipan,
Thailand, Mexico, Malaysia, and the Philippines. Pepsi Fire is a cinnamon flavored cola. (see also the Pepsi Max cinnamon edition for Christmas 2005)
Pepsi Free introduced in 1982 by PepsiCo as the first major-brand caffeine-free cola and is today sold as Caffeine-Free Pepsi and Caffeine-Free Diet Pepsi.
Pepsi Gold: Limited edition gold colored variant as part of a 2006 FIFA World Cup promotion. Released in Thailand and several other countries. In 2006, released in Romania, Poland, Sweden, Denmark, Norway, Jamaica, Lebanon and Venezuela.
Pepsi Holiday Spice: a limited edition variety which the company began selling November 1, 2004 in the U.S.A. for an eight-week period (it has not been sold since). It is flavored with a seasonal finish of ginger and cinnamon.
Pepsi Ice Pepsi with an Icy Mint flavor. Sold in Guam, Thailand, Malaysia, and the Philippines.
Pepsi Lime: with lime flavor added, introduced onto the market in the spring of 2005.
Pepsi Max Available outside the United States. o Pepsi Max Cool lemon o Pepsi Max Cinnamon (a limited edition Cinnamon flavour
Pepsi released Christmas 2005) o Pepsi Max Cino (UK - Pepsi Max with coffee) o Pepsi Max Gold (only available in Finland, Iceland, Norway
and the UK)
PEPSI Stamford University BangladeshSpring 2010
4.1 Product of Pepsi
28o Pepsi Max Punch (a dark red Pepsi cola with Cinnamon and
Ginger - limited edition in the UK market for Christmas 2005 - available September to December)
o Pepsi Max Twist Pepsi NEX: A zero calorie Pepsi developed by Suntory and sold only
in Japan Pepsi Raging Raspberry Pepsi Razzleberry Pepsi Red a red colored Pepsi from Japan developed by Suntory. Pepsi Samba: Pepsi with tropical flavors Pepsi Si: The word si used in its Spanish context ("yes") and
printed on cans. Used as a marketing gimmick in predominantly Hispanic areas.
Pepsi Strawberry Burst Pepsi Tropical Chill Pepsi Twist: a lemon flavored variety
o Pepsi Twistão Sold during summertime in Brazil, it's a Pepsi with a lemon flavor stronger than regular Pepsi Twist. "Twistão", in Portuguese, is the augmentative of "Twist".
Pepsi Vanilla: Released in the U.S. in 2003, it is Pepsi's answer to Vanilla Coke. Contains vanilla extract as well as both natural and artificial flavors.
o Pepsi Ice Cream in Russia Pepsi Wild Cherry: a cherry flavored variety, introduced in 1988.
Originally called "Wild Cherry Pepsi", its name was changed along with the formula in 2005.
Pepsi X Energy Cola: contains more caffeine than regular Pepsi, and also contains guaranine. Pepsi is the first major cola brand to have an energy drink line extension. The cola-based product has a unique flavor and a reddish tint. It is sold in several countries worldwide.
Coffee Related Pepsi Cafechino: Pepsi with a touch of coffee only sold in India. Pepsi Cappuccino: Cappuccino flavored sold in Eastern Europe. Pepsi Kona: a short-lived product that was market tested in the
Lehigh Valley and Philadelphia, Pennsylvania areas between 1994 and 1996. A mix of Pepsi-Cola and coffee, it is said to have tasted more like coffee than cola.
Pepsi Latte Pepsi Max Cappucino: Only available in France, Finland, Norway,
Ireland and the UK. o Pepsi Max Coffee Cino Pepsi Max Cappucino variant
currently being sold in the UK.
PEPSI Stamford University BangladeshSpring 2010
29 Pepsi Tarik: a mix between coffee and cola. Currently, it's only
available in Malaysia and Singapore. Tarik is a word in the Malay language which means "to pull."
Diet Related Diet Crystal Pepsi: Low-calorie version of Crystal Pepsi. Diet Pepsi: Low-calorie version of Pepsi.
o Diet Pepsi AM: Sugar-free version of Pepsi AM, and introduced in 1987. No longer produced.
Pepsi Edge: contains half the carbohydrates, calories and sugars of a normal Pepsi, and is flavored by Splenda. Introduced in 2004, and discontinued in 2005. It was featured on an episode of The Apprentice 2 in which teams had to design a prototype bottle.
o Pepsi Avantage: the French name for Pepsi Edge, sold exclusively during 2005 in the province of Quebec.
Diet Pepsi Free (now known as Caffeine-Free Diet Pepsi) Diet Pepsi Jazz a fruit flavored cola only avalible in diet styles.
Introduced in July 2006. Avalible in "Black Cherry and French Vanilla" and "Strawberries and Cream"
Diet Pepsi Kona Pepsi Light: Lemon-flavored Diet Pepsi sold in the 1970s and
1980s o Diet Pepsi Light
Diet Pepsi Lime Pepsi ONE: An alternative to Diet Pepsi, with one calorie. Diet Pepsi Twist
o Diet Pepsi Twistão (see above) Diet Pepsi Vanilla Diet Pepsi Wild Cherry Not widely available until 2005, when Wild
Cherry Pepsi was reformulated. Pepsi XL a mid-calorie cola targeted at transitioners (those who
were making the move from sugared colas to diet colas) and males.
PEPSI Stamford University BangladeshSpring 2010
30
How much are the intended customers willing to pay for the products of Pepsi? Here the company decides on a pricing strategy - do not let it just happen! Deciding on a pricing strategy a firm has to consider many variables. So, Pepsi also follows the way that fits for them.
Pricing strategy (skim, penetration, etc.) Suggested retail price Volume discounts and wholesale pricing Cash and early payment discounts Seasonal pricing Bundling Price flexibility Price discrimination
A company must set an initial price when it develops a new product and it introduces it into a new distribution channel. Different companies set their pricing policies by pursuing any of the following objectives: survival, maximum profit, and maximum market share or product-quality leadership. PBL wants to maximize PEPSI’s market share. Their pricing strategy is to gain profit through selling more volume at lower price. They aim for quality at standard price. Compare to two main competitors - Coca-Cola and RC, PEPSI has charged its
PEPSI Stamford University BangladeshSpring 2010
4.2 Pricing Situation
31products at standard price with respect to its standard. Prices of the main competitors and PEPSI in different product categories are given below:
Bottle Size Pepsi RC Coke Virgin
250 Ml Tk. 12 N/A Tk. 12 N/A
500 Ml PET Tk. 22 Tk. 20 Tk. 22 Tk. 20
1 liter PET Tk. 40 Tk. 35 Tk. 40 Tk. 35
2 liter PET Tk. 65 Tk. 60 Tk. 65 TK. 60(1.5 litr)
2.25 liter PET Tk. 75 N/A Tk. 75 N/A
Can Tk. 25 Tk. 20 Tk. 25 Tk. 20
Diet Pepsi can is Tk. 22, Mountain dew 500 ML TK. 22, Teem 500Ml TK. 22. Table 01: Price list of different product categories
3.4 Product Life Cycle
Introduction Growth Maturity DeclineTIME
Annual revenue of PEPSI Cola is approximately TK.315 crore which is 90% of the sales budget of TK.350 crore and market share is 26%. According to our gathered data, PEPSI Cola exists at the maturity stage of its product life cycle. Current Market Situation
Rank 2005 Brand Market Share
1 Coke 17.92 Pepsi 11.53 Diet coke (coke) 9.74 Mt. Dew (Pepsi) 6.35 Diet Pepsi (Pepsi) 6.16 Sprite (Coke) 5.77 Dr. Pepper 5.68 CF Diet Coke 1.7
PEPSI Stamford University BangladeshSpring 2010
PEPSI
32(Coke)
9 Diet Dr. Pepper 1.410 Sierra Mist (Pepsi) 1.4
Market Penetration: Here Pepsi charge a standard price so that people can buy the product. Through advertising also Pepsi gain the market share.
Market Development: To develop the market Pepsi do some promotional activity. They do campaign, coupon, fair also some gift hamper for the benefit of the consumer.
Product development: Pepsi introduce some new product to the market to expand the market and get well feed back from it. Like Mountain dew, Max, 7up etc.
PEPSI Stamford University BangladeshSpring 2010
Market Share
17.9
11.5
9.76.3
6.1
5.7
5.61.71.41.4
1 Coke
2 Pepsi
3 Diet coke(coke)
4 Mt. Dew(Pepsi)
5 Diet Pepsi(Pepsi)
6 Sprite (Coke)
7 Dr. Pepper
33Diversification: Pepsi divert form its product line to expand the market. Now Pepsi introduce new product like Mountain Dew which get good response from every country.
Place or Distribution
Distribution means the availability of products at the right place, at the right time, in the right quantities. Distribution is about getting the products to the customer. Therefore, Pepsi assigns its distribution model based on the following factors. These are:
Distribution channels Market coverage (inclusive, selective, or exclusive distribution) Specific channel members Inventory management Warehousing Distribution centers Order processing Transportation
Pepsi use the same distribution channel for all products. Pepsi follows the following channel to reach its products to the target customers:
Product Consistency: Pepsi use the same distribution channel for all products. So their product consistency is very high.
Thus that’s why we get every where the Pepsi product.
PEPSI Stamford University BangladeshSpring 2010
4.3 Place
Company DistributorsWholesaler/ Retailer Consumer
34
Pepsi Warner Bros. Glass:
By far the most frequent question we receive concerns the 1973 Pepsi Warner Bros. glass promotions. These glasses were first distributed by Carroll's Restaurants (later to become Burger King) in upstate New York in the summer of 1974. According to Dave Leonard of Promotions ETC. who put the promotions together, they were a blockbuster success and led to dozens of additional glass promotions during the next 10 years by Pepsi-Cola and other competitors. This really was the "golden era" of character glass promotions. A complete list of the 18 different Warner Bros. character Pepsi glasses with prices can be found on the prices page. The photo above shows the difference between the Brockway and Federal glasses. Brockway glasses are heavier and are slightly tapered, while Federal glasses are thinner and have a straighter side. There are some minor color variations between the two versions too, as shown in the two Tasmanian Devil glasses. The Brockway LUN (logo under name) variation is only available in six characters on Brockway 16 oz. tumblers. The 15 oz. Federal version (notice that it is slightly shorter) are much more difficult to locate and scarce characters can bring over $300.00 each. Finally there are also Federal and Brockway 12 oz. versions. Distinguishing between the two
PEPSI Stamford University BangladeshSpring 2010
4.4 Promotional Activities
35is difficult for beginning collectors, although the values are about the same.
Pepsi Campaign in India:
Pepsi’s integrated marketing campaign in India that centered on World Cup cricket last year has been adjudged the best campaign amongst 333 entries from around the world in the annual Globes Awards sponsored by the Marketing Agencies Association (MAA) Worldwide.
At a glittering ceremony in Florida, US, recently, Pepsi walked away with the top honours - MAA’s Grand Prix award for best campaign overall, plus an individual Globe for best sponsorship or tie-in campaign of the year. Vibha Rishi, VP (Marketing), PepsiCo, New York, accepted the award at a reception and dinner in Florida to honor outstanding marketing campaigns from around the world.
According to Rajeev Bakshi, chairman, Pepsi Foods Pvt Ltd, “We have been receiving commendations for the Pepsi World Cup campaign from various quarters. However, it is indeed extremely delightful that a highly prestigious international forum such as the MAA Annual Globes Awards has bestowed the top award for the World Cup campaign.”
The 2004 Globes roster features winning campaigns from Argentina, Australia, Brazil, Canada, Chile, England, India, Indonesia, Israel, Mexico, Poland, Portugal, Singapore, Thailand, Turkey and the US. This year’s competition drew an all-time high of 333 campaigns from 26 countries, making the 2004 Globes turnout the largest ever, with a record number of entries for the third year in a row.
To drive sales, Pepsi mounted a campaign that aligned its brand with World Cup fever and set a theme that connected with the youth, the spokesperson said. Changing its colors to match India’s Team Blue and turning out 2.5 million souvenir bottles for World Cup 2003, Pepsi deployed a remarkable array of big-brand tie-ins, sponsorships and such below-the-line initiatives as contests, instant-wins, music CDs, Team India merchandise and more, the spokesperson added.
PEPSI Stamford University BangladeshSpring 2010
36Pepsi offer Buy one gets one Free:
In September 2005 Pepsi offer a new
"great tasting" energy soda “FRESCA”
with will get by consumers if they buy a
can of Mountain Dew.
In June 2005 Pepsi offer a free CD which
will collect by consumers if they buy a bottle of
“VAULT” a product of Pepsi.
Pepsi-Cola Bottling Company of Charlotte,
North Carolina is celebrating and
remembering 100 years of services this year.
Commemorative Pepsi & Diet Pepsi cans were
unveiled to the public on April 14th, and only
available in a limited area in the Charlotte, NC
area. 1905-2005
Pepsi will once again be promoting the new
Star Wars movie which is to be released in
May 2005. They have planned some cool
PEPSI Stamford University BangladeshSpring 2010
37promotions like a limited edition Darth Dew Slurpee at 7-Eleven
stores.
Pepsi Sports Series 14oz Collectable Can, which will offer different
types of prizes.
Pepsi (USA) released a 4 can set to help celebrate 4th of July.
Mountain Dew offer Special can for the movie Hulk.
Pepsi doing School Promotion:
For instance, Pepsi Foods is one company which targets children using both above-the-line and below-the-line promotions. As a part of in-school promotions, Pepsi India has launched a school contact programme, which has taken 425 schools across 14 cities including Delhi, Chandigarh, Ludhiana, Amritsar, Jalandhar, Agra, Jaipur, Dehradun, Lucknow, Camper, Mumbai and Pune. As part of the programme, six-overs-a-side cricket matches will be played between different teams in each school and the winners will get `attractive prizes.' The latest above-the-line strategy adopted by Pepsi Foods is built around the movie Spiderman-2, which offers Spiderman memorabilia in exchange for Mirinda crowns and PET labels.
PEPSI Stamford University BangladeshSpring 2010
38ITC Foods Ltd is promoting its Sunfeast biscuits across 1,000 schools in the country as part of its Sunfeast school programme. Considering the need to garner visibility among children, the company has earmarked around Rs 20 lakh for this below-the-line project and their target is to reach one million children. There are around 500 schools in the Western region which are willing to provide space and time for any kind of demonstrations. A point to be noted is that direct marketing activities by corporate companies rarely take place in municipal schools. Most in-school promotions are done in upmarket areas specially targeted at children from middle-class and upper middle-class families, the objective being exploiting pester power.
Pepsi Price promotions:
Price promotions are also commonly known as" price discounting". These can be done in two ways:(1) A discount to the normal selling price of a product, or (2) More of the product at the normal price.Pepsi can do both of this for promoting their brand in the market. CouponsCoupons are another, very versatile, way of offering a discount. Consider the following examples of the use of coupons:- On a pack to encourage repeat purchase- In coupon books sent out in newspapers allowing customers to redeem the coupon at a retailer- A cut-out coupon as part of an advert- On the back of till receipts. The key objective with a coupon promotion is to maximize the redemption rate – this is the proportion of customers actually using the coupon.
PEPSI Stamford University BangladeshSpring 2010
39It must be ensured when a company uses coupons that the retailers must hold sufficient stock to avoid customer disappointment.
Point of Sale Displays:
Pepsi can do also point of purchase promotion for their brand.
Gift with Purchase:
Pepsi offer different types of gift with their product in different location.
Some of the pictures are highlighted.
PEPSI Stamford University BangladeshSpring 2010
40
Sponsor by Pepsi:
Pepsi can sponsor different program/event in different occasion. Some
of the pictures are highlighted.
PEPSI Stamford University BangladeshSpring 2010
41
Pepsi in concert:
Billboard Used by Pepsi:
Pepsi use billboard for promote their brand.
PEPSI Stamford University BangladeshSpring 2010
42Mobile Ads used by Pepsi:
Pepsi also use mobile ads in different vehicles to promote their brands.
Print Ads of Pepsi: Pepsi has a massive number of print ads to promote their brand. More than 100 years Pepsi Company comes up with different type of print ads with different massage for their customer. Some of their print ads are given below.
PEPSI Stamford University BangladeshSpring 2010
43
Diet Pepsi Promotion: New Diet Pepsi spot is cute and quirky.The first TV advertising from Diet Pepsi since DDB, New York, grabbed the business from Omnivore sibling BBDO looks nothing like what preceded it for about the last 40 years. There are no celebrities to speak of. No pop music No glitzy productions.
PEPSI Stamford University BangladeshSpring 2010
44
TV Commercials of Pepsi:
Pepsi has a long golden history of TV commercials from their
establishment of soft drink market with different appeal. As the years
gone Pepsi Company used different celebrities according to the
demand of their viewers.
Radio Commercials of Pepsi:
Although IMC of Pepsi based on TV commercials, before 1950 they
used radio commercials as a prominent media for the advertisement.
PEPSI Stamford University BangladeshSpring 2010
45
Chapter: 05Brand Evaluation
PEPSI Stamford University BangladeshSpring 2010
5.0 Brand Element
46A brand element consists of eight things. These are:
Name Logo Slogan Symbol Character Sounds/Jingles Color Packaging
To do the brand element mix and match we have to consider two things. First one is a brand element such as name, logo, slogan, symbol, character, sounds, color and packaging. On the other hand we have to select Choice criteria such as memorability, meaningfulness, transferability, adaptability and protectability.
Pepsi (1898 – Present)
"Pepsi" logo (used from 1906-1939 in several slightly different variations).
PEPSI Stamford University BangladeshSpring 2010
5.1 Name
5.2 Logo
47
5.3 Slogan
The international Pepsi logo. Also used as logo from 1991-1998.
The "Pepsi" logo (used from 1998- present).
Pepsi is one of the world's most famous brands much like its rival Coca Cola. Pepsi Cola was originally called Brad's Drink after its creator, Caleb Bradham, a pharmacist from North Carolina. Pepsi was a carbonated soft drink he created to serve his drugstore's customers. The new name, Pepsi-Cola, was first used on August 28. The Pepsi logo is a simple globe with the Pepsi colors in the background and the word Pepsi in the foreground. Pepsi has changed its logo and its slogans a number of times since its introduction in 1898.
It's clear in looking at the slogans over the years that Pepsi have very different targeting strategies. Coke is touting itself as the original, the authentic, and appealing to a sense of tradition, positioning itself as an integral part of daily American life. Pepsi, on the other hand, is promoting itself as something new, young, and hip, which seems a little odd after over 100 years. But Coke was first, after all. Pepsi has always targeted the youth market more aggressively than Coke. Slogans of Pepsi are given below:
1903 - Exhilarating, Invigorating, Aids Digestion1907 - Original Pure Food Drink1909 - Delicious and Healthful1915 - For All Thirsts - Pepsi-Cola
PEPSI Stamford University BangladeshSpring 2010
481919 - Pepsi-Cola - It Makes You Scintillate1920 - Drink Pepsi Cola. It will satisfy you1928 - Peps You Up!1932 - Sparkling, Delicious1934 - Refreshing and Healthful1939 - Twice As Much For A Nickel Too Listen1943 - Bigger Drink, Better Taste1949 - Why take less when Pepsi's best?1950 - More Bounce to the Ounce1950 - The Light Refreshment1954 - Refreshing Without Filling1958 - Be Sociable, have a Pepsi1961 - Now It's Pepsi, For Those Who Think Young1963 - Come Alive! You're In the Pepsi Generation Listen1967 - Pepsi Pours It On1969 - You've Got a Lot to Live and Pepsi's Got a Lot to Give Listen1973 - Join the Pepsi People Feelin' Free Listen1975 - Have a Pepsi Day Listen1978 - Catch That Pepsi Spirit Listen1981 - Pepsi's Got Your Taste For Life!1983 - Pepsi Now!1984 - Pepsi, the Choice of a New Generation1992 - Gotta Have It1993 - Be Young, Have Fun, Drink Pepsi1995 - Nothing else is a Pepsi1999 - The Joy of Cola Listen2001 - The joy of Pepsi2004 - Life to the max (Pepsi Max).
Pepsi use there traditional symbol which is shape like a ball divided in to two parts. The upper part is red in color and the below part is blue in color. And in middle is the color of white.
Figure: Pepsi
symbol
The brand color of Pepsi is blue. From the beginning Pepsi use blue color as of its brand color.
PEPSI Stamford University BangladeshSpring 2010
5.4 Symbol
5.5 Color
49
Packaging is basically the different shape of bottles of Pepsi which is changing time to time. There are given some samples of Pepsi bottle package:
Brand Elements
Name Logo Slogan
“The joy of Pepsi”
Symbol Color Packaging
Choice Criteria
Memorability Yes
Yes
In some extent
Yes
Yes
Yes
Meaningfulness
Yes
No
Yes
No
No
No
PEPSI Stamford University BangladeshSpring 2010
5.6 Packaging
5.7 Mix and Match the Brand Element
50Transferability Yes
Yes
Yes
Yes
Yes
Yes
Adaptability Yes
Yes
Yes
Yes
Yes
Yes
Protectability Yes
Yes
Yes
Yes
Yes
Yes
Performance: Pepsi has an excellent product performance with a status of more than 100 years.
Feature: Pepsi has unique features in their product. In their soft drinks sector they have variety of flavor with different taste.
Conformance Quality: Pepsi has good conformance quality as they meet the expectation what their customer wants.
Reliability: Pepsi Company is a reliable company with a good status they are doing business more than 100 years. Their product is reliable to their consumers.
Durability: Pepsi product is durable to all the consumers. It has a certain durable time to consume the product.
Serviceability: There is basically no serviceability when it is FMCG.
Style and Design: Pepsi product has very lucrative style and design.
PEPSI Stamford University BangladeshSpring 2010
5.8 Pepsi quality dimension measure
5.9 Value Innovation
51
Innovation – Key weapon to success of Pepsi
Pepsi mainly focus on innovation in their product to make it success in the market. Result shows that Pepsi take over the cola market over Coca cola from last two years because of their value innovation.
Product innovation is the core area where Pepsi Company focuses to create innovation. Their main target is to create new product of change the taste or flavor of existing product, which will create differentiation.
Chapter: 06Product Differentiation
PEPSI Stamford University BangladeshSpring 2010
52
6.0 Product DifferentiationPepsi-Cola North America announced two new additions to its expanding beverage portfolio -- Dole Sparklers and Sierra Mist Cranberry Splash. Dole Sparklers, an entirely new line of sparkling juice drinks, launches this fall in four unique flavors. Sierra Mist Cranberry Splash, a limited-time flavor extension available exclusively this holiday season, launches in November.
6.1 Dole Sparklers
Dole Sparklers, an invigorating, low-sugar sparkling juice, is made with real fruit, B-complex vitamins and 50% less sugar and calories than a regular juice drink. The light, refreshing beverage comes in four flavors: pomegranate blueberry, orange tangerine, cranberry raspberry and pink grapefruit. Available in a single-serve, 16.9-oz proprietary plastic bottle with a distinctive "bubble" design embossed into the packaging, the product launches in October.
6.2 Sierra Mist Cranberry Splash
Sierra Mist is launching its first limited-time-only offering with Sierra Mist Cranberry Splash, the crisp lemon-lime soft drink flavored with a hint of cranberry. Sierra Mist Cranberry Splash will be available for eight weeks, beginning in November, in packaging that will reflect the spirit of the holiday season. Supported with national television and radio advertising, Sierra Mist Cranberry Splash will be available in 20-oz. and two-liter bottles as well as 12-packs of 12-oz. cans. Pepsi in North America with the introduction of Dole Sparklers, we're providing a light, invigorating sparkling juice that's low in sugar and calories, but indulgent on taste. Sierra Mist Cranberry Splash is the ideal beverage for the holiday season, when consumers tend to seek more variety. From its crisp, unique flavor right down to its festive graphics, it will make its way to the top of plenty holiday shopping lists this year. "Pepsi-Cola North America also plans summer launches of Jazz, from Diet Pepsi, and Ben & Jerry's Milkshakes. Jazz, a new low-calorie cola, comes in two indulgent flavors: Black Cherry French Vanilla and Strawberries & Crème. Rich, indulgent Ben & Jerry's Milkshakes will be available in classic Ben & Jerry's flavors that consumers know and love.
PEPSI Stamford University BangladeshSpring 2010
537 Up
Type 100% Natural Lemon-Lime Soft Drink
Manufacturer Cadburys
Country of Origin United States
Introduced 1929
Variants dnL, 7 Up Plus
Related products Dr Pepper, Sprite
7 Up (or Seven Up) is a brand of a lemon-lime flavored soft drink. The franchise for the brand is held by Dr Pepper/Seven Up in the United States, by Britvic in Great Britain, by C&C in Ireland and by PepsiCo in the rest of the world.The product has been reformulated several times since its launch in 1929; in 2006, it underwent another reformulation, becoming "100% Natural" with five ingredients: "filtered carbonated water, high fructose corn syrup, natural citric acid, natural flavors, natural potassium citrate".
The origin of the 7 up name is not clear. The most popular story is that its creator named the soft drink after seeing a cattle brand with the number 7 and the letter u. Other rumors suggest that the name reflects the drink's seven flavors and carbonation that its creator came up with the name while playing dice or that even it was the 7th large commercial lemonade brand that tastes the same.
Pepsi Blue
PEPSI Stamford University BangladeshSpring 2010
54
Type Flavored Cola
Manufacturer PepsiCo, Inc.
Country of Origin USA
Introduced mid-2002
Discontinued 2004 (American market)
Related products
Crystal Pepsi, New Coke
Pepsi Blue is a soft drink made by PepsiCo and launched in mid-2002. It is considered by some to be the company's second equivalent of New Coke, after the much maligned Crystal Pepsi.The taste of Pepsi Blue is fruity and much more sugary than regular Cola.Although heavily promoted by PepsiCo (including advertisements by the pop singer Britney Spears and the bands Papa Roach and Sev), it is widely seen as a commercial flop as sales remained low.Even though Pepsi Blue wasn't as popular as PepsiCo thought it would be, supermarket store-brand clones remain on the market for those who enjoy the taste. Pepsi Blue still remains on sale in some countries, including Mexico and Costa Rica. It was withdrawn from the American market in early 2004.Pepsi Blue was later reintroduced into the Hong Kong market. Its availability was shortlived in Australia, due to its commercial failure there.The taste of Pepsi Blue was similar to that of a 7-11 Slurpee.
Pepsi Max
PEPSI Stamford University BangladeshSpring 2010
55
Type Diet Cola
Manufacturer PepsiCo, Inc.
Country of Origin
Great Britain, Italy
Introduced 1993
Variants Pepsi Max Cappuccino, Pepsi Max Twist, Pepsi Max Punch
Related products
Coca-Cola C2, Pepsi ONE, Diet Pepsi
Pepsi Max is a low-calorie, sugar-free cola sweetened with aspartame,
marketed by PepsiCo as an alternative to regular Pepsi and Diet Pepsi.
Caffeine-Free Pepsi
PEPSI Stamford University BangladeshSpring 2010
56
Type Caffeine-free Cola
Manufacturer PepsiCo, Inc.
Country of Origin USA
Introduced 1982
Related products Diet Coke
Pepsi Free was introduced in 1982 by PepsiCo as the first major-brand caffeine-free cola. A sugar-free variant known as Diet Pepsi Free was also introduced. The Pepsi Free name itself was phased out by 1988, and today these colas are known simply as Caffeine-Free Pepsi and Caffeine-Free Diet Pepsi. The term "Free" has been reintroduced by PepsiCo on their Sierra Mist line in response to Coca-Cola's successful introduction of their Zero line.
Mountain Dew is a caffeinated sweet citrus-flavored soft drink produced by PepsiCo, Inc. It was invented in Marion, VA and first marketed in Knoxville, Tennessee in 1948, and across the United States in 1964. When removed from its characteristic green bottle, Mountain Dew is bright green-yellow and cloudy. Unlike lemon-lime soft drinks such as Sprite, 7 Up, or Sierra Mist, Mountain Dew contains concentrated orange juice.
In Bottle Differentiation
PEPSI Stamford University BangladeshSpring 2010
57
PEPSI Stamford University BangladeshSpring 2010
58
Chapter: 07Sales Evaluation
In the U.S. and Canada, there are three big top line areas of opportunity for Pepsi. First of all, they start from a position of strength with four anchor brands that are leaders in their respective segments: brand Pepsi in colas, Sierra Mist and Mountain Dew in flavors, and Aquafina water in non-carbs. So in part, top line growth will come from
PEPSI Stamford University BangladeshSpring 2010
7.0 Sales Data
59building base business across those four powerful brand platforms. Second source of growth is from innovation that brings incremental volume to business. This has a brand dimension and a package dimension. In single-serve innovation, Pepsi have developed a three-tiered approach to meet the needs of every type of user. The 14-ounce package for light use, the 20-ounce for medium use and the 1-liter package for heartier consumption. On the take-home PET side, we've had great success with a broad variety of multi-packs and package sizes, and we'll continue to add packaging options for both CSDs and non-carbs. So, the combination of building on existing brand portfolio, expanding their portfolio through innovation and capitalizing on new growth platforms gives them plenty of promise for their future.
PEPSI Stamford University BangladeshSpring 2010
60
Financial Data (1996-2000)
PEPSI Stamford University BangladeshSpring 2010
Years 1996 1997 1998 1999 2000revenues 20337 20917 22348 20367 20438expenses 18297 18255 19764 17549 17213net income 1149 2142 1993 2050 2183stock prices (per share) 34 33 45 42 38earnings (per share) (end of 4rth quarter) 1.17 0.95 1.31 1.4 1.45net income (per share) 0.72 1.4 1.31 1.4 1.51profit margin 8% 13% 12% 14% 16%net income % changes 0.05 0.03 0.07 0.06 0.08earning growth rate 0.1 0.28 0.05 0.09 0.05PEG 310 118 900 466.6 760P/E (Price per share/ earnings per share) 29 35 34 30 26
61
PEPSI Stamford University BangladeshSpring 2010
Revenues, Expenses, and Net Income
2033720917
22348
20367 20438
18297 18255
19764
17549 17213
1149
2142 1993 2050 2183
0
5000
10000
15000
20000
25000
1996 1997 1998 1999 2000
years
Mill
ions
of d
olla
rs
revenues
expenses
net income
Profit Margin, Net Income % changes, and Earning Growth Rate
8%
13%12%
14%
16%
0.05
0.03
0.070.06
0.08
0.1
0.28
0.05
0.09
0.05
0%
5%
10%
15%
20%
25%
30%
1996 1997 1998 1999 2000
years
perc
entag
e
profit margin
net income % changes
earning growth rate
62
Chapter: 08
PEPSI Stamford University BangladeshSpring 2010
63Value & Position Evaluation
Pepsi marketwise different brands according to the prospects’ demand differently all over the world market. In this way they create and capture new demand. Pepsi’s wise management decisions align the whole system of companies’ activities in pursuit of differentiation and low cost.
The Four-Action Framework
In the four-action framework Pepsi cola create multiple product line, raise brand equity, and reduce competition.
PEPSI Stamford University BangladeshSpring 2010
A New Value Curve
CREATEELIMINATE
RAISE
8.1 Perceive Value and Brand sense
64
A brand must have the following five things. These are Sight, Sound, Touch, Taste and Smell. Pepsi have three things: taste, smell and sight. It is very important to have good taste and sight for a soft drink. If the sight and smell is not attractive consumer won’t feel comfortable while drinking it. Again for a soft drink better smell is very important. Perhaps it is the single most important thing. Pepsi has lots of color, smell and taste, which focus Pepsi’s three main brand senses.
So, if Coke doesn’t have all the things, which we mentioned earlier than it, will be very difficult to increase their brand equity. And more or less they have done it very beautifully and that’s why they are now being the market gainer Pepsi in a drink by having 4% market share more than Coca cola.
To stay in the market each and every product has some unique value, which makes the product different than other. But it is not the all.
PEPSI Stamford University BangladeshSpring 2010
SMELL
TASTE
SOUNDTOUCH
SIGHT
Sight
Sound
Touch
Smell
Taste
8.2 Pepsi positioning
Bonding
Perceived value
65Because it is more important how you propose your value to your potential customers. To survive in the market it is very important to come up with a strong IMC strategy, perhaps it is the most important criteria where marketer should concentrate more and more. Though product has some value but it can not assure that it is running successfully in the market. So to be a good marketer we have to concentrate on IMC to think how we propose our value to our customer and convert them to our loyal customer. Value can be proposed in two ways:
Above the Line (ATL) Below the Line (BTL)
To stay as a market leader Pepsi Company can propose their value in both the ways. In Above the Line strategy they use Television commercials, Radio Commercials, Event, one to one marketing, public relations and so on.
On the other hand in Below the Line strategy Pepsi can propose their value by using rural promotion and in other ways.
Brand EndorserList of celebrity endorser of Pepsi are given below. Bamboo (Philippines only) David Beckham Rubens Barrichello (Brazil only) Polly Bergen Jackie Chan Roberto Carlos (football
player) Halle Berry Leslie Cheung Rico Blanco (Philippines only) The Corrs Barry Bostwick Cindy Crawford David Bowie Joan Crawford Mariah Carey Dinamo Bucharest football
club Cruz Azul football club in Mexico Michael J. Fox Billy Crystal The Four Seasons Rodney Dangerfield Aretha Franklin Denílson (Brazil only) Frederik (Finland only) Amr Diab The Friends of Distinction P. Diddy Cuba Gooding Jr. Bob Dole Delta Goodrem Hallie Kate Eisenberg Jeff Gordon Elissa Florence Henderson Jimmy Fallon Thierry Henry Faith Hill Beyoncé Knowles Enrique Iglesias Shahrukh Khan (India only)
PEPSI Stamford University BangladeshSpring 2010
8.3 Secondary Brand Association:
66
S Club 7 Gustavo Kuerten (Brazil only) Avril Lavigne Cláudia Liz (Brazil only) Luiza Simões (Brazil only) Los Lonely Boys Ananda Lewis Madonna Manchester United football club Menudo Janet Jackson (filmed commercials which aired in parts of Asia) Michael Jackson (who was badly burned while filming a commercial) Ludacris (commercial was pulled from airwaves due to controversy) Ray Charles ("You Got the Right One, Baby! UH-HUH!") Evandro Mesquita (Brazil only) Jack Osbourne Claude Meunier (Quebec only) Kelly Osbourne Mis-Teeq Ozzy Osbourne Nightwish Real Madrid football club Martín Palermo Michael Richards Robert Palmer Lionel Richie Pelé Rivaldo Pepsiman (Japan only) Ronaldinho Jericho Rosales (Philippines only) P!nk Marie Osmond Shakira Sammy Sosa Holly Valance
Britney Spears Juan Sebastián
Verón Christina Aguilera
Brian Vickers Spice Girls
Damon Wayans
PEPSI Stamford University BangladeshSpring 2010
67
The Boston Consulting Group Box ("BCG Box") Pepsi Company of Bangladesh:
Stars: Here Pepsi’s market share & market growth is very high. So Pepsi needs to HOLD i.e. continue previous level of investment. Stars products of Pepsi are- Pepsi 1 liter, Pepsi 250Ml can, 7 up 2 liter.
Question Marks: Where Pepsi’s market share is low & market growth is very high. So Pepsi needs to HARVEST i.e. maintain that kind pf investment which is necessary. Question Marks product of Pepsi is only Pepsi Can.
Cash Cows: As Pepsi’s market share is high & market growth is low, they should BUILD i.e. invests more to gain return at high level. Cash Cows products of Pepsi are- Mountain Dew
PEPSI Stamford University BangladeshSpring 2010
8.4 BCG Matrix of Pepsi
68Dogs: Here market share & market growth of Pepsi are very low. So Pepsi should DIVEST i.e. cut the production and kick it out from the product line. Dogs products of Pepsi are- Teem (Bangladesh)
There are three strategic opportunities –
1. Moderate economic growth in Asia would lift consumer spending2. Cola consumption in the region had room to grow 3. The price of soft drinks was cheap compared with other
beverages.
PEPSI Stamford University BangladeshSpring 2010
69
PEPSI Stamford University BangladeshSpring 2010
8.5 SWOT Analysis of Pepsi
Strengtho Multi-dimensional organizationo Well-establish managemento Sophisticated technologyo High Brand Image o Financial support from sister concerno Best advertisementso Quality producto Efficient distribution network
Weakness
o More competitions in soft drinks market.
o Unable to attract the loyal consumers of Coca-Cola.
Opportunity
o Established Brand Imageo Consumer tendency to use Pet bottle.o Value pricing: Pepsi is able to produce
high quality relatively standard cost.o Wide market in Bangladesh.o Strongest and biggest existing
distribution channel.
Threats
o Pepsi has to compete with the existing reputed companies
o Political instabilityo Problem arise dealing with distributor.
(Credit facility) o Fluctuation of price of raw materialso The market is becoming saturated
SWOT Analysis
70
Brand Identity
Pepsi itself is a brand-as-person, brand-as-organization, and brand-as-symbol. So according to David A. Aker’s brand checklist theory Pepsi has proper brand identity.
Value Proposition
In the value proposition Pepsi is offering same core value from their beginning and that is “Refreshment and Enjoy”.
Brand Position
PEPSI Stamford University BangladeshSpring 2010
Cola
Non-Cola
TraditionalLemon/Lime
8.6 Brand Identity and Value
71
The competition is very much high in soft drink industry. PEPSI Cola is operating in a oligopoly market where two or three large competitors control the lion share of that market. The market size of soft drinks in Bangladesh is around TK.800 Crore per year. Among all soft drinks company, Coca-Cola is the market leader for many years. It was popular in the past time and still it has popularity among the large population of Bangladesh. It obtains 31% market share. After Coca-Cola, Pepsi was the second one; but after emerging RC, the market share of Pepsi has been reduced to 22%. RC has been able to move its way up and for the last two years it has been holding the 2nd position with 26% of the total market. The others like Uro Cola, Virgin and Suncrest each have market shares equal to or below 10%. There is another player Mojo who have recently entered in the beverage market. The major difference of PEPSI with the other brands is that its product category is more comparatively to others. In case of brand image Pepsi have more competitive advantage over RC. Since they have more stable and strong brand image and is a great degree of consumer loyalty the product.
Graph 0 1 : Market Share of different brand
PEPSI Stamford University BangladeshSpring 2010
8.7 Competitive Scenario
72
Chapter: 09 Consumer Attitude
Evaluation
PEPSI Stamford University BangladeshSpring 2010
73For Office use only
1. Do you drink Pepsi?
1 2 3 4 5
Strongly Disagree Neutral Agree Strongly Disagree Agree
2. How many times you drink in a month?
1 2 3 4 5
Strongly Disagree Neutral Agree Strongly Disagree Agree
3. Will you really like the product or not?
1 2 3 4 5aStrongly Disagree Neutral Agree Strongly Disagree Agree
4. Which product you like most (product line)?
1 2 3 4 5
Strongly Disagree Neutral Agree Strongly Disagree Agree
5. Does the product is overpriced or not?
1 2 3 4 5
Strongly Disagree Neutral Agree Strongly Disagree Agree
6. Does the product is really qualitative or not?
1 2 3 4 5
Strongly Disagree Neutral Agree Strongly Disagree Agree
7. How much you like compare to other brand?
PEPSI Stamford University BangladeshSpring 2010
9.1 Attitude Measurement
741 2 3 4 5
Strongly Disagree Neutral Agree Strongly Disagree Agree
8. Are you really like the taste of the product or not?
1 2 3 4 5
Strongly Disagree Neutral Agree Strongly Disagree Agree
9. Does the product increases their status or not?
1 2 3 4 5
Strongly Disagree Neutral Agree Strongly Disagree Agree
10. Reason behind the purchase?
1 2 3 4 5
Strongly Disagree Neutral Agree Strongly Disagree Agree
11. Likelihood of buying the product in next time?
1 2 3 4 5
Strongly Disagree Neutral Agree Strongly Disagree Agree
12. Does the price satisfactory to you?
1 2 3 4 5
Strongly Disagree Neutral Agree Strongly Disagree Agree
13. Does the outlet is proper in the country?
1 2 3 4 5
Strongly Disagree Neutral Agree Strongly Disagree Agree
PEPSI Stamford University BangladeshSpring 2010
7514. Do you think Pepsi need more promotional activities?
1 2 3 4 5
Strongly Disagree Neutral Agree Strongly Disagree Agree
15. Likelihood of suggesting it to others.
1 2 3 4 5
Strongly Disagree Neutral Agree Strongly Disagree Agree
1. Please put your suggestion to recover those problems.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
PEPSI Stamford University BangladeshSpring 2010
Respondent Profile:
Name:
Age:
Profession:
Gender:
THANK YOU
76
Initiator:
PEPSI Stamford University BangladeshSpring 2010
9.2 Attitude Component and
77Initiator is some stimuli that lead a persons overall orientation toward an object through component and manifestation. Stimulus is something that directly related with the product and leads a person towards attitude component. Actually stimulus is the initiators that shape up of the attitude. Stimuli are like products, situations, retail outlets, sales personnel, advertisements etc.
Products:Qualities of the product are the main actors to take part in attitudes component. If the product quality is good people will satisfy and they will purchase in future and recommend it to others. As result new people orientation towards product will be good and he becomes the loyal customer of that product.
Situations:Bangladesh is a country of river, where most of the people are related with agriculture. In this country people believe in different religion and culture. Different religions have different festivals. Consumer Behavior is directly related with religion in terms of products that are symbolically and ritualistically associated with the celebration of religious holidays and occasion like Eid, Ramadan, Puja, Chrismas etc. In that time people consume huge amount of soft drinks. During the Ramadan, Eid and other festivals, PEPSI cola use different kinds of packaging label with the purpose of attracting the common people and simply creating a difference. They also give different kinds of advertise for these types of occasion. As a result these religious festivals are uses for conditioning people with PEPSI Cola.
Retail outlets: Availability of the product is also related with the consumer behavior. If the product is not available in the locality then people will not consume this product and they may have bad impression about the product. For ensuring the availability of the product PBL has 101 distributors around the country. This distributor is always works with in their zone so that people can get PEPSI frequently from their nearest retail outlets whenever they demand.
PEPSI Stamford University BangladeshSpring 2010
78An attitude is an enduring organization of motivation, emotional, perceptional and cognitive process with respect to some aspect of our environment. It is a learned predisposition to respond in consistently favorable or unfavorable manner with respect to a given object. Thus an attitude is the way one thinks feels and acts towards some aspect of his or her environment. Attitudes have three components. These components are cognitive component, affective component and behavioral component. Besides this attitudes also can be derived by the external and internal factors. External factors are like culture, subculture, marketing strategy etc. and internal factors are like motivation, personality, knowledge, beliefs etc. For measuring the attitudes towards PEPSI Cola we did survey on the cognitive, affective and behavioral component.
Cognitive ComponentThe cognitive component consists of a consumer’s beliefs about a product. For most attitude objects people have a number of beliefs. Beliefs can be about the emotional benefits of owning or using a product as well as about objective features. Many beliefs about attributes are evaluative in nature this are using capacity, style and reliability. In cognitive component part for measuring attitudes towards PEPSI Cola we choose attributes are like price, quality, taste, status, calories and use multicast tribute attitude model. For calculating the attitude we need to assign weight to each attribute. We assign this weight in the attributes according to the basis of importance to the consumer. We put weight 30 for the taste, 25 for quality, 20 for price, and 15 for calories and 10 for status. After calculating the results for each respondent we take the average result of that result and we get the index value of 65. This index value of 65 express that product is not perfectly ideal to the consumer. So according to the result we can say that the attitude towards the PEPSI Cola is not perfectly satisfactory.
Affective ComponentFeelings or emotional reactions to an object represent the affective component of an attitude. Actually this a vague general feeling developed without cognitive information or beliefs about a product or it may be results of several evaluations of the product’s performance on each of several attributes. For measuring this part we asked few questions to the respondents related with the attribute of PEPSI Cola. These questions are-
a. Whether they really like the product or notb. Whether the product is overpriced or notc. Whether the product is really qualitative or not
PEPSI Stamford University BangladeshSpring 2010
9.3 Measuring Attitude Component
79d. Whether they really like the taste of the product or note. Whether the product increases their status or not.
According to the response of the respondent we found that 75% respondents really like the product where as 25% strongly like the product. On the other hand for the price of the product 37.5% strongly disagree 25% just disagree 12.5% neutral about the price and 25% respondent agree that the product is over priced for the quality purpose 62.5% respondent agree that the product is qualitative 25% neutral about the product quality and 12.5% thinks that the product is not qualitative. When we asked about the taste 75% respondent said that they like the taste and 25% respondents strongly like the taste of PEPSI Cola. Lastly in affective part we asked them about the status in response to that we fund that 75% respondent are neutral about that and 12.5% thinks that it increase their status and rest of the percentage disagree with it. Behavioral ComponentThe behavioral component of an attitude is one’s tendency to respond in a certain manner toward an object or activity. A series of decision to purchase or not purchase the product or to recommend it or other brands to friends, relatives would reflect the behavioral component of an attitude. For measuring the behavioral component of the respondent we asked them three questions. These are
a. Reason behind the purchaseb. Likelihood of buying the product in next timec. Likelihood of suggesting it to others
According to the response of the first question of behavioral component 87.5% respondent purchase PEPSI Cola for their own likings, not influenced by others, whereas, 12.5% people said that they purchase PEPSI Cola as because of their family likings. On the hand when we asked about the likelihood of buying product in next time, 87.5% respondent said that they will definitely buy PEPSI Cola in next time and 12.5% will possibly buy in next time. When we asked about the likelihood of suggesting it to other 62.5% definitely suggest the product to others, 25% possibly suggest it to others and 12.5% probably not suggest it to others.
PEPSI Stamford University BangladeshSpring 2010
80
Chapter: 10Recommendation, Conclusion
and Reference
Based upon our findings of attitude survey of PEPSI Cola, I have recommended some aspects that can potentially lead to improvements for PEPSI such as a stronger, more promising market presence and greater customer satisfaction. These areas that seem to deserve attention are as follows:
Improve the quality They can improve their quality, so that they can attract the loyal customer of Coke and RC.
Introduction of consumer promotion in Bangladesh
PEPSI Stamford University BangladeshSpring 2010
10.1 Recommendations
81Promotional activities like scratch-card offers, gift offers including toys, sports items, household items, etc. can help capture the attention of greater number of consumers and lead to brisk increase in sales, though temporarily.
More marketing campaign targeting rural consumers
This can greatly encourage drinking of Pepsi even among the village people who constitute the majority of the Bangladeshi population.
Increased demand, economic development and changed life style have
resulted in a great increase in the change the peoples mind and their
demand for buying behavior. Pepsi consumption is still also increasing
day by day. Old Brand and new products of Pepsi increase all over the
world. Statistics show that majority of the people usually prefer Pepsi
product more than new branded product even it charge low price. In
Bangladesh, population growth has been seen as a major factor, but no
one looks at the growth of drinking is also increasing, which has
PEPSI Stamford University BangladeshSpring 2010
10.2 Conclusion
82increased tremendously over the last thirty years. Reasons are
increased buying behavior towards the branded product like Pepsi.
Increased trade, commerce and export have also created additional
demand for various types of soft drink product Pepsi is one of them. On
top of that, the life style of the Bangladeshi people particularly the
middle class and elite in the urban areas have been changing very fast
and improving, which has resulted in greater movements and greater
use of branded product in the country. So Pepsi make our culture to a
new change.
PEPSI Stamford University BangladeshSpring 2010
83
Books that I use
Del I. Hawkins Consumer Behavior, Ninth edition
Kotlar Amstrong Principles of Marketing
Malhotra Marketing Research
Cateora Graham International Marketing
Websites that I search
http://www.pepsi.com
http://www.pepsico.com/web_pages/resource/corp_structurepc.html
http://www.greenvillepepsi.com/frames2/caleb.htm
http://www.pepsico.com/web_pages/resource/mission_state.html
http://cac.psu.edu/~slp1/pepsi1.html
http://www.pepsico.com/web_pages/midyear_hl.html
http://www.pepsico.com/web_pages/release053196.html
http://www.pepsico.com/web_pages/1996/stockinfo.html
http://biz.yahoo.com/p/p/pep.html
http://www2.mostnewyork.com/most/archive/97_03/032097/metro_sp/16068.hta
http://www.pepsico.com/web_pages/releases/pcnews5.html
http://www.pathfinder.com/@@@K5PkwYA9eq1miaH/fortune/1997/970303/fst.html
PEPSI Stamford University BangladeshSpring 2010
10.3 References
