Marketing Book Practically guideline Pepsi Project

1. Assignment: Marketing
Company Project: Pepsi
Made By: Abdul Basit
Institution: GC University Faisalabad,
(This project is practically guideline for
Bs hons,M.com,Mba Students.I worked hard
for this project which tells almost all
marketing by Kotler chapter wise.Reserch
can done on internet about marketing but
applied questions into project are very
practically written, you will not be able to
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Company History:
Pepsi cola started in the January 1898, from a small Drug store
in the city of North Carolina. The owner of the Drug store, Mr.

2. Caleb Bradham, prepared a drink, which the customers called
"the Bred Drink". Bred registered this drink with the name of
Pepsi Cola in 1903. Then he started his own production at Marco
level and established his own company. The business expanded
and this drink got fame time. In 1909 this company reached to 24
states of America with more than 250 dealers. The very first
packing of Pepsi was in 16.5 ounce.
The word Pepsi comes from the Greek word "pepsi" (πέψη),
which is a medical term, describing the food dissolving process
within one's stomach. It is also a medical term that describes a
problem with one's stomach to dissolve foods properly.
As Pepsi was initially intended to cure stomach pains, many
believe Bradham coined the name Pepsi from either the
condition dyspepsia (Greek: δυσπεψία, stomach ache or
indigestion) or the possible one-time use of pepsin root as an
ingredient (often used to treat upset stomachs). It was made of
carbonated water, sugar, vanilla, rare oils, and kola nuts.
Whether the original recipe included the enzyme pepsin is
disputed.
In 1903, Bradham moved the bottling of Pepsi-Cola from his
drugstore into a rented warehouse. That year, Bradham sold
7,968 gallons of syrup. The next year, Pepsi was sold in six-
ounce bottles and sales increased to 19,848 gallons. In 1924,
Pepsi received its first logo redesign since the original design of
1905. In 1926, the logo was changed again. In 1929, automobile

3. race pioneer Barney Old-field endorsed Pepsi-Cola in newspaper
ads as "A bully drink...refreshing, invigorating, a fine bracer
before a race".
In 1932 Pepsi cola has introduced its new packing in 12 ounce.
In 1950 Pepsi Cola has started its new Advertising Campaign
with the name of "Refresh without Filling". It also changed the
chemical formula and decreased its sweetness and calories.
With the efforts of the Sales & Marketing Department, Pepsi got
so much fame that it established new plants at a rate of thirty
per annum. In 1985 the design of the bottle has been changed
after 20 years. And a new and attractive packaging has been
offered with two new flavors i.e., Teem & Mininda.
Today Pepsi is available in more than 155 countries of the world
including Soviet Union & China.
Pepsi Cola International:
Pepsi Cola International (PCI) Company includes in beverages
industry. PCI is well-reputed multinational organization, which is
doing its business in almost every part of the world. The
company is registered in New York stock exchange U.S.A to
make a better control over the business. PCI has given the
manufacturing rights to different local companies that are called
as franchises.

4. Table1.Slogans/Logos of Pepsi through
different period of times
1898 Brad's Drink
1903 Exhilarating, Invigorating, Aids
Digestion
1906 Original Pure Food Drink
1908 Delicious and Healthful
1915 For All Thirsts - Pepsi: Cola
1919 Pepsi: Cola - It makes you Scintillate
1920 Drink Pepsi: Cola - It Will Satisfy You
1928 Peps You Up!
1929 Here's Health!
1932 Sparkling, Delicious
1933 It's the Best Cola Drink
1934 Double Size
Refreshing and Healthful
1938 Join the Swing to Pepsi
1939 Twice as Much for a Nickel
1943 Bigger Drink, Better Taste
1947 It's a Great American Custom
1949 Why Take Less When Pepsi's Best?
1950 More Bounce to the Ounce
1954 The Light Refreshment
Refreshing Without Filling
1958 Be Sociable, Have a Pepsi
1961 Now It's Pepsi for Those Who Think
Young
1963 Come Alive! You're in the Pepsi
Generation
1967 Taste that Beats the Others Cold,
Pepsi Pours It On.
1969 You've Got a Lot to Live, Pepsi's Got
a Lot to Give
1973 Join the Pepsi People Feelin' Free
1976 Have a Pepsi Day!
1979 Catch That Pepsi Spirit

5. Take the Pepsi Challenge
1981 Pepsi's Got Your Taste for Life
1983 Pepsi Now!
1984 The Choice of a New Generation
1987 America's Choice
1989 A Generation Ahead
1992 Gotta Have It
1993 Be Young, Have Fun, Drink Pepsi
1995 Nothing Else is a Pepsi
1997 Generation Next
1998 Same Great Taste
1999 The Joy of Cola
2000 The Joy of Pepsi
2003 Pepsi. It's the Cola
2005 Dare for more
"Wild Thing"/"Ask For More"
2011 "More Happy"/"Taste the one that's
/2012 forever young
Core Brands:
Carbonated Soft drinks, Energy drinks, Juice drinks, Drink

6. coffees and Tea, Sports drinks, Water.
Brand Names:
Aquafina
Lipton Brisk
Mtn Dew
Mug
Pepsi
Mirinda
Tropicana Twister soda
Products:
Pepsi,Dew,Dole juice,Aquafina,Lipton,Tazo,Naked,G2 (sports
drink),AMPEnergy,Lays,Teem,Kurkure,String
Drink,Looza(juice),Sierr Mist,Latle,Propel zero, Mist Natural
Packaging:
Pepsi Cola uses glass cans and plastic bottles of different
quantity.
Packaging:
Pepsi 1.5 Liter
Pepsi 2.25 Liter
Regular Pepsi 250 ml
Pepsi Can or Tin 300 ml
Pepsi Current Labling:
Logo is the identity of Pepsi.

7. Product Support Services:
Pepsi cares his customers always. For customer help,
information and feedback of its products improvement Pepsi
Website, email, contact numbers are supported to them.
Products Mix:
Product Product Lines Length Depth
Names
Pepsi Diet Pepsi,Diet 7 Pepsi Diet (5)
Pepsi lime,Diet
Pepsi Pepsi Max(3)
vanilla,Pepsi,
Diet Pepsi Wild Pepsi Regular
cherry,Pepsi (5)
MAX,Pepsi
NEXT,Pepsi Pepsi Twist(3)
twist
Mirinda Mirinda 2 Mirinda
Orange,Mirinda Orange (1)
Apple Mirinda Apple
(2)
Mtn Dew Diet Mtn 5 5
Dew,Mtn
Dew,Mtn Dew
Live Wire,Mtn
Dew code
Red,Mtn Dew
Dark Berry,Mtn
Dew White

8. out,Mtn Dew
Voltage,
Mug Diet Mug 3 Diet Mug
Cream Cream Soda(1)
Soda,Mug Mug Cream
cream Soda(2)
Soda,Diet Mug
Cream,
Tropicana Tropicana 4 5
Twister Twister Soda
Soda Diet Orange,
Tropicana
Twister Soda
Grape,
Tropicana
Twister Soda
Orange,
Tropicana
Twister Soda
Strawberry
Lipton Lipton 2 4
Brisk,Pure leaf,
Aquafina Aquafina 2 Aquafina (2)
Flavor Spash, Aquafina
Aquafina Flavor
Spash(1)
Dole Juice Dole Juice, 2 3
Dole Juice
Sensation
7UP 7up Regular 2 7up Regular
7up Diet (5)
7up Diet (3)
Pepsi Products Width:
Width means number of products lines in product mix.
Pepsi Product lines are nine and they are subdivided by
individually.

9. Pepsi Segmentation and Target Market
Segmentation Variables Data
Geographic:
World region Asia,Europe,Usa
Countries Pakistan and more than 155
countries
Cities All major cities
Density Urban
Climate Hot and dry
Demographic:
Age 5-45
Gender Male and female
Family life cycle 1-2,3-4,5+
Income Rs.10000+
Occupation Professionals,Students,House holds
Education Schools,Collages,Universities
Religion Major religion of Islam, Christianity
and Hinduism and small percentage
of others
Nationality Pakistani,South American, North
American and others
Psychographic:
Social Class Middle class, Upper class.
Life Style Believers, Achievers, Strivers,
Experience’s makers and Strugglers
Behavioral:
Occasions Parties, Birthdays, Sports and
Regular Occasions
Benefits Quality, Taste

10. User status First time user, regular user
Loyalty Status Strong
Readiness Aware, Interested
Target Market:
Pepsi customers are mostly young group between the ages of 5
to 45 and also target at School, Collages, Universities, Homes,
Restaurant, Hotel and Stores.
Positioning Strategy:
The mission of Pepsi is towards reaching to the last consumer
and leaving name in their minds.
Positioning In Relation To A Competitor And Quality
Pepsi uses the positioning strategy which is related to the
competitor because it consider that it is market leader and it try
to present its products quite different in taste,packaging,styles
designing and quality than its competitors such as coca cola
etc.Pepsi follow the quality positioning strategy.
Marketing Mix:
1.Product, 2.Price, 3.Place,4.Promotion

11. 1.Product:
According to products and service types, Pepsi contains
Convenience food and soft drink products.
Pepsi Product Attributes:
Pepsi is available in a bottle,can,paper glass.Pepsi products are
delicious and sweet and the packaging is comfortable to hold.
Pepsi helps quench our thirst and cools us off.
Drinking Pepsi shows that I am cool and I have made a popular
choice.
2.Price:
Following factors Pepsi kept in mind while determining the
pricing strategy.
1) Price should be set according to the product demand of
public.
2) Price should be that which gives the company maximum
revenue.
3) Price should not be too low or too high than the price
competitor is charging
from their customers otherwise nobody will buy your product.
4) Price must be keeping the view of your target market.
5) Pepsi focuses on allowance and discountable price.
3.Place (distribution channels)

12. Pepsi uses the following ways for distribution
Of its products.
Direct distribution:
• The key accounts are different wholesalers, restaurants
and hotels like Pizza Hut, KFC, Metro serve as a place for
key sale.These are known as national key accounts are
very important in terms of completion.
• Export parties
Indirect distribution:
• Through Base market distributors
• Through Outstation distributors
4.Promotion:
Pepsi promotes its products through these ways:
TV
Newspapers
Billboards
Internet
Radio
Pepsi Product Life Cycle:
Introduction Level:
Pepsi introduces its new products and place it on the market for
consumers.Pepsi also spends a lot of money advertising the
new flavor creating awareness.
Growth Level:

13. Customers like the flavor and begin to make routine purchases
and competitor Coke introduces their competing products and
flavor.
Maturity Level:
More competitors enter the market taking some of Pepsi’s
profits.For example Tropicana juice is at maturity level now.
Decline Level:
Customers have moved on to the next new products and flavors.
But some loyal fans stay behind.
Buildiing customer value,satisfaction, and
loyalty:
Today Pepsi is the more successful brand in the world,the
reason behind it is that Pepsi Co. always believe in building
customer value. Pepsi know that “customer is the king” and
Shall continue to be so. Creating loyal customers is the heart
Of Pepsi Co’s business.
Pepsi dIfferent Products line Promises:

14. Marketing Srategy Of Pepsi:
Pepsi corporate strategy is to concentrate their resources on
growing beverages snack foods and fast food restaurants
businesses, through internal growth of each divisions and
carefully analyze different companies which are favorable for
acquisition.

15. Pepsi New Product Development:
Pepsi has developed new products like natural fruits juice and
partnership with Starbuck and Unilever Lipton to produce coffee
and tea. They developed also Sports drinks and Mineral water.
Pricing Strategies:
Pepsi uses market penetrating strategy. Pepsi tries to increase
market share. Pepsi is available in Pakistan almost all cities.
Product Mix Pricing Strategy:
Pepsi uses Bundle pricing strategy like in Ramadan and Eid
occasions and on Other months Pepsi sets product line prices
against its Competitors. Pepsi tries to announce promotional
prices so that customers can more buy.
Pepsi Advertising Objective:

16. Pepsi uses Reminder advertising objective because Pepsi ads
primarily build and maintain the Pepsi Co brand relationship
rather than inform or persuade customers to buy in the short
run.
Pepsi Budget:
Pepsi advertising budget for advertising soft drinks used to be
on par with that of Coca Cola till about 5 years back, but last
year Pepsi spent only $153 million on soda ads, while the
competitive party Coca Cola’s spent $ 253 million.
Developing Advertising Strategy:
Advertising strategy consists of two major elements: creating
advertising messages and selecting advertising media.
Message Stretegy;
Company created big idea with advertising purpose like that
Pepsi made the program is aimed at identifying the Cricket
Talent in the Pakistani Youth and would help in developing
skilled Cricketers at grassroots level. They made statement
“Auo badal du zamana”.
Advertising Appeal:
Pepsi advertising appeal is believable, convincible and meaning
full like”Dil ha tu mangu aur” and its different from others.

17. Execution Styles:
Slice of Life:
Pepsi according to this style shows how a product fits in with a
particular life styles.
Life Style:
Pepsi life style people who uses it middle and upper class and
believers, achievers, strivers.
Fantasy;
Pepsi mostly uses fantasy advertising like String energy ads
show fantasy.
Personality;
Pepsi started advertising with different Pakistani Cricket stars
like Waseem Akrim,Shahid Afridi and others countries actors
To enhance their consumptions.
Musical;
Pepsi uses on some bottles cartoons and music to attract
customers.