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Yeh dil maange more!!


Yeh dil maange more!! Presenters: Rathnasabapathy Venkatesh Babu Ravindranath Neeraja Ramya Harihara Sudan Srikanta Advertising campaigns Issues Hard to differentiate ... – PowerPoint PPT presentation

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Title: Yeh dil maange more!!

  • Yeh dil maange more!!
  • Presenters
  • Rathnasabapathy
  • Venkatesh Babu
  • Ravindranath
  • Neeraja
  • Ramya
  • Harihara Sudan
  • Srikanta

  • Pepsi is a soft drink produced and manufactured
    by PepsiCo. It is sold in many places such as
    retail stores, restaurants, schools, cinemas and
    from vending machines. 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.
  • PepsiCo brands are available in nearly 200
    countries and territories. Many of PepsiCo's
    brand names are over 100-years-old, but the
    corporation is relatively young. PepsiCo was
    founded in 1965 through the merger of Pepsi-Cola
    and Frito-Lay. Tropicana was acquired in 1998 and
    PepsiCo merged with The Quaker Oats Company,
    including Gatorade, in 2001.
  • PepsiCo (symbol PEP) shares are traded
    principally on the New York Stock Exchange in the
    United States. The company is also listed on the
    Amsterdam, Chicago, Swiss and Tokyo stock
    exchanges. PepsiCo has consistently paid cash
    dividends since the corporation was founded.
  • PepsiCo World Headquarters is located in
    Purchase, New York, approximately 45 minutes from
    New York City.

  • Revenues in 2007 is more than 39 billion.
  • 37 bottling plants in India, of which 16 are
    company owned and 21 are franchisee owned.
  • PepsiCos Frito Lay snack division has 3 state of
    the art plants.
  • It has more than 185,000 employees across the
  • In India, PepsiCo provides direct employment to
    4,000 people and indirect employment to 60,000
    people including suppliers and distributors.
  • CEO Ms. Indra K Nooyi
  • India Headquarters Gurgaon.

Brand Image of Pepsi
  • Pepsi is a brand that every youngster relates to.
  • But this definitely doesnt mean that other age
    groups are not its users.
  • Thus Pepsis brand image is its hip, cool,
    lively and refreshing attitude.

Advertising Strategy of Pepsi
  • Pepsis target audience are mostly teens and
    young adults and their advertising reflects this
    in every possible way.
  • The company changes its advertising strategy and
    image to reflect the target's interests.
  • Pepsi makes sure that the advertisements reflect
    to the target audiences interests and
  • The advertising strategy includes cool, hip
    promos to attract more of the target audience.
  • The advertising is mostly creative and has
    different elements like music and sports other
    than bollywood.
  • also plays an important role in
    advertising and attracts target audience by
    giving access to options like downloads, gaming,
    music mixing applications etc..

Advertising History
  • Pepsi has continuously focused on the current
    teen generation.
  • How Pepsi has used humor, music, sex appeal in
  • Ad expenditures for 2001 is 1,800,000,000

  • 1939 - Twice as Much for a Nickel
  • 1950 - More Bounce to the Ounce
  • 1958 - Be Sociable, Have a Pepsi
  • 1961 - Now Its Pepsi for Those Who Think Young
  • 1963 - Come Alive, Youre in the Pepsi
  • 1967 - (Taste that beats the others cold) Pepsi
    Pours It On
  • 1969 - Youve Got a Lot to Live, Pepsis Got a
    Lot to Give
  • 1984 - Pepsi. The Choice of a New Generation
  • 1985 - New Generation advertising continues
  • 1992 - Gotta Have It
  • 1993 - Be Young, Have Fun, Drink Pepsi
  • 1997 - Generation Next
  • 2000 - Joy of Cola

International brands.
North American brands
Generation Y- Market Influence
  • Huge market 80 million people
  • Spending power 600 million annually
  • Many Geb Yers do household grocery shopping
  • 90 parents say kids influence what they buy
  • Many work and have their own money to spend
  • They have proven to be brand loyal

How to reach Generation Y
  • Creates promotion tailored to their needs and
  • Gen Yers like entertainment and music
  • They like to laugh, but not at another's expense
  • To attract the teen market radio and television
    should be used
  • They are internet savvy

What does Generation Y like?
  • Free stuffs and discounts
  • Contests/drawings
  • Music
  • Club cards
  • Team sporting events
  • They are into clothes and the latest styles
  • Teen friendly retail stores and internet site

Pepsi and Generation Y
  • Pepsi targets Generation Y specifically
  • Current campaigns use of effective techniques
  • By targeting 12 to 21 year olds, Pepsi is
    attempting to establish a loyal pepsi drinker
    for life and the largest group of soft drink

Advertising campaigns
Michael Jackson
  • Michael received the biggest sponsorship from the
    company in 1993.
  • In 1993 Pepsi had a Search for Michael Jackson
  • Used musical and sex appeal.

Jeff Gordon
  • Made a commercial with Hallie Eisenberg
  • Sells many Pepsi collectable merchandise.
  • Drove the Pepsi car in races

Hallie Eisenberg
  • First appeared in a Pepsi commercial in 1998 at
    age 5
  • Introduced the Joy of Cola campaign.
  • Starred in commercials with Faith Hill, KISS, and
    Ken Griffey Jr.
  • Her commercials used humor.

Spice Girls
  • Promotional single Move over available only
    through Pepsi.
  • Used musical and sex appeal.
  • As international stars they affected many

Type A B celebrities
  • Type A celebrity one that is well known and
    well liked by their target market.
  • Type B celebrity one that is known by their

  • Hard to differentiate product in terms of taste
    as product variety is very limited within cola
    based beverages.
  • Coca-cola has such a strong base of loyal
    customers, who identify with the cola brand.
  • Consumer tastes are changing, away from
    carbonated drinks towards functional soft drinks.
    (Mintel, et al. 2009)

Competitive Aids
  • SWOT Analysis
  • Porters strategies for competitive environment

SWOT analysis
  • Strength
  • Pepsi has a broader product line and outstanding
  • Merger of Quaker Oats produced synergy across the
  • Record revenues and increasing market share.
  • Lack of capital constraints (availability of
    large cash flow).
  • Great brands, strong distribution, innovative
  • Number of maker of snacks, such as corn chips and
    potato chips.
  • PepsiCo sells three products through the same
    distribution channel.
  • Weakness
  • Pepsi hard to inspire vision and direction for
    large global company.
  • Not all PepsiCo products bears the company name.
  • PepsiCo is far away from leader Coca-cola in the
    international market demand is highly elastic.

  • Opportunity
  • Food division should expand internationally.
  • Noncarbonated drinks are the fastest-growing part
    of the industry.
  • There are increasing trend towards healthy foods.
  • Focus on most important customer trend
  • Threats
  • FB industry is mature.
  • Pepsi is blamed for pesticide residues in their
    products in one of their promising emerging
    market e.g. in India.
  • PepsiCo now competes with Cadbury Schweppes,
    Coca-cola, and Kraft foods (because of their
    broader product line) which are well-run and
    financially sound competitors.
  • Size of company will demand a varied marketing
    program Social, cultural, economic, political
    and governmental constraints.

Porters 5 Force Model
Porters 5 forces model
  • The five forces model of Porter is and outside-in
    business unit strategy tool that is used to make
    an analysis of the attractiveness (value) of an
    industry structure
  • Allows the development of a competitive strategy
  • Suggests 5 main forces may be decisive in helping
    shape the outcome
  • Suppliers
  • New entrants
  • Substitutes
  • Buyers
  • Industrial competitors

Threats of new entrants
  • New entrants bring increased capacity to the
    industry and are often backed by substantial
  • New entrants can be deterred by barriers to

Threat of new entrant
  • The main barriers are.
  • Economies of scale
  • Patents
  • Product differentiation
  • Capital requirements (financial specialist
  • Skills
  • Reaction/strategic decisions of incumbents
    (ex-all undercut new entrant)
  • Government policy (ex-de-regulation)

The bargaining power of suppliers
  • Supplier exert power in the industry by
    threatening to raise prices or reduce quality.
  • Powerful suppliers can squeeze industry
    profitability if firms are unable to recover cost

The bargaining power of suppliers
  • Suppliers are likely to be powerful if
  • Supplier industry is dominated by a new firms.
  • Suppliers products have few substitutes.
  • Buyer is not an important input to buyers
  • Suppliers products have high switching cost.

The bargaining power of buyers
  • Buyers compete with the supplying industry by
  • Bargaining down prices
  • Forcing higher quality
  • Playing firms off of one another

The threat of substitute products
  • Products with similar function limit the prices
    firms can charge
  • Keys to evaluate substitute products
  • Products with improving price/performance
    tradeoffs relative to present industry products

The threat of substitute products..Questions?
  • How many substitute products/services have
    appeared in your industry in the last 5 years?
  • What are they? How different are they?
  • Were they introduced by your organization or
  • Which organization in your industry does the most
    Research and Development?
  • What happens to price, profits and market share
    when substitutes are introduced?

Rivalry among existing competitors
  • Intensive rivalry often plays out in the
    following ways
  • Price competition
  • Advertising battles
  • Increasing consumer warranties and service
  • New product roll-outs
  • Price competition often leaves the entire
    industry worse off

Porters 5 model PepsiCo
  • Traditional competition
  • Prices of Coca Cola, local brands
  • Market share
  • Promotional actions of competition
  • New entrants
  • New look-alike manufacturers
  • Substitute products
  • Fashionable new drinks, milk drinks, coffee,
    beer, water, smoothies

Porters 5 model PepsiCo
  • Suppliers
  • Price and availability of ingredients on world
  • Quality, speed, safety, traceability, flexibility
    of supply chain.
  • Buyers/consumers
  • High as a result of intense competition both
    among branded and unbranded products.
  • Combined purchase power of shops, bars,

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Pepsis Successes and Failures in Brazil and
  • PesiCo has been operating in Brazil since 1953
  • Pepsis heavy new investment in Brazil, which
    actually started early this year, is funneled
    through a joint venture with Baesa, a bottler
    based in Buenos Aires that operates in Argentina,
    Chile, Costa Rica and Puerto Rico.
  • PepsiCo in Germany made a smarter move by
    acquiring Punica, Germanys premiere juice
  • PepsiCo is one of the worlds largest
    manufacturer, seller and distributor of beverages
  • Pepsi has very limited brands in Germany.
  • Their struggles in Germany include Coca-cola and
    a rash of suicidal commercials for Pepsi Max that
    depicts a single lonely calorie committing

Marketing Products and Services
  • Taste testing
  • Television, Billboard and Print Media
  • Interactive/Web-based marketing

  • Adopting a Cost-Leadership Stratergy
  • New Product Development

Cost-Leadership Strategy
  • Advertising and innovative promotion.
  • Optimal outsourcing for production and vertical
  • Improving production efficiencies through Kaizen.

New Product Development
  • Produce a range of healthy alternatives under
    the brand name Pepsi Fresh.
  • Our suggestion would be a range of Vitamin
    enrinched waters under the name Pepsi Fresh

  • It can be seen then that differences do exist
    between Coca-Cola and Pepsi Cola.
  • This can be seen in the marketing variables which
    are the basis for segmentation such as age and
    geographic variables.
  • In a competitive market, both companies must
    identify and target different market segments in
    order to remain at the cutting edge.
  • Differences between the companies are evident
    with respect to product, pricing, place and
  • Coca-cola relies heavily on value quality is
    more than something we see or taste.
  • Pepsi, on the other hand, relies on its success
    resulting from superior products and high
    standards of performance (http//
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