2. Marketing Plan Hot Ice Tea
EXECUTIVE SUMMARY
The following Marketing plan is about to introduce the new innovative product
by Pepsi which is named as Hot Ice Tea. This will be a convenient product
which will be readily available to quench the thirst of our customers and will
also give the nutritional benefits of Tea. The main characteristics of this
product will be the hot and cool nature of the product i.e. it can be served as
a hot drink as well as a hot drink; in both way it will give the same
satisfaction to the customer and there will be no weather constraint for this
product and it can be used through out the year. So the Hot Ice Tea will not
be a seasonal drink and this will be the main source of success of the product.
The product will be introduced to capture the 20% market share in the
category of functional drinks market. The market is still unserved for this
segment and company will be going to introduce a new a market trend as well
as going to challenge its competitors. This product will lead the company in
functional drink market and will carry the company on the top spot. The target
market for the product will be the health conscious and energetic customers.
Our product will broadly describe the main benefits of tea, Studies continue to
show the beneficial properties of teas, with health benefits ranging from lower
cholesterol levels to improve arterial health and decreasing chance of cancer.
This positive press has definitely increased the demand for tea. In the first
year of operation the Hot Ice Tea will be introduced in Pakistan because there
are more potential and enthusiastic customers and we can get result more
fastly about the success of product.
The Company will increase its market share through targeted advertising to
increase the number customers who want convenience and are looking to
have a drink of unique nature which will give them taste, energy and the
nutritional benefits of tea.
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3. Marketing Plan Hot Ice Tea
COMPANY DEESCRIPTION
PEPSI INTERNATIONAL
HISTORY
PepsiCo is a world leader in convenient foods and beverages, with revenues of
about $27 billion and over 143,000 employees. The company consists of the
snack businesses of Frito-Lay North America and Frito-Lay International; the
beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North
America and PepsiCo Beverages International; and Quaker Foods North
America, manufacturer and marketer of ready-to-eat cereals and other food
products. 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.would entertain the
listener with the latest musical selections rendered by violin or piano or both.
The new name, “Pepsi Cola”, is derived from the two of the principle
ingredients, Pepsin and Kola Nuts. It was first used on the August 28. At that
time, Bradham’s advertising praises his drink as “Exhilarating, invigorating,
aids digestion”.
In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today
Lipton is the biggest selling ready-to-drink tea brand in the United States.
Outside the United States, Pepsi-Cola Company's soft drink operations include
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4. Marketing Plan Hot Ice Tea
the business of Seven-Up International. Pepsi-Cola beverages are available in
more than 190 countries and territories.
In Asia, they selected Lahore to make their regional office. This was done in
1970. This regional office is monitoring all the operations carried out in South
West Asia. As in Pakistan, they only entered beverage industry. They have
eleven bottlers covering whole Pakistan. The plant operating here is Riaz
Bottlers (Pvt) LTD. This plant was established at Lahore in 1974. The total
capacity of the plant is 30,000 cases per day. They have four filling lines in
the plant operating on the three shift bases. Each shift is of eight hours. They
have permanent work force of 750 people and they employee approximately
1000 people more on temporary basis during summer season.
(Source www.pepsico.com)
Situation Analysis
Pakistani lifestyle and work habits have made convenience a necessity. As
employers demand for productivity from their employees, consumers are
more pressed for time. In addition, the shaky economy has made Pakistani
fear for their jobs; thus, any product that can fill the consumers' need for
convenience and speed are almost automatically embraced into the Pakistani
life style. Hot Ice Tea offers a unique drinking experience to its consumers.
Market Summary
Industry Analysis In 2007, the tea industry reached the $1.7 billion category
and it is expected to continue growing indefinitely (Mintel2007). Market
analysts believe the tea industry will continue to boom and is not expected to
reach saturation level in the near future. The favorable movement in the tea
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5. Marketing Plan Hot Ice Tea
industry can be attributed to two major factors: a) consumers need for
convenience and time-saving services; and b) the positive press given to tea.
Trends
For the last decade, the health benefits of tea have gained wide coverage in
the media. Studies continue to show the beneficial properties of teas, with
health benefits ranging from lower cholesterol levels to improve arterial health
and decreasing chance of cancer. This positive press has definitely catapulted
the demand for tea.
Both the need for convenience and positive press on tea have spurred an
increase in sales of tea products, specifically ready-to-drink (RTD) teas sold in
single-serve containers Recognizing this trend, various companies in the tea
industry have come up with innovative products to take advantage of the
booming market for ready-to-drink teas. Lipton tea, one of the global leaders
in refreshment brands, launched new products to meet the growing the need
for ready-to drink teas and introduced innovative product line to capture the
health-conscious market.
Today, while the soft drink industry’s value has increased , the volume sales
of carbonated soft drinks has declined due to a large proportion of consumers
who are opting for the trend towards healthier alternatives in the functional
drink segment (energy drinks, smoothies, milk & juice drinks, sports drinks)
as well as bottled juices and water. Companies have been actively engaged in
new product developments in order to counter the growing concerns about
negative health impacts of high-fructose drinks, but also to increase the
demand in a market where product offerings are quickly maturing. New flavor
introductions and health-conscious formulations have been launched in an
attempt to offset the decline in carbonated soft drink sales. The functional
market is expected to show sustained growth and consumer interest in the
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6. Marketing Plan Hot Ice Tea
future years as consumption shifts to trendier, healthier and more
sophisticated product.
Profitability & future growth potential
In 1993, Concentrate Producers earned 29% pretax profits on their sales,
while bottlers earned 9% profits on their sales, for a total industry profitability
of 14%. While the functional drinks sector only accounts for 3.7% of the total
soft drinks sales in 2004, estimates are forecasting a growth of 7.3% in sales
and 11.0% in volume consumption by 2009. (Source wikipidia)
Competition
Pepsi's top competitors for the soft drinks industry are coca cola (43.6%) and
Cadbury-Schweppes (15.8% of market), which combined, represent about
58% of the total market. Pepsi's share is 42.7% of the total soft drinks
market. In the functional drinks sector, PepsiCo is the current market leader
with 60.5% of the market shares in 2007. Coca-Cola Co is second with
32.8%. Hot Ice Tea will launch into a currently un served subset of that
market (RTD “Ready-To-Drink” Hot Ice Tea), which is until now un existing. It
is anticipated that the following brands could potentially compete with Hot Ice
Tea in the functional drinks market: Brisk, Lipton Iced Tea, Sobe (owned by
PepsiCo), as well as Snapple’s and Hawaiian Punch (owned by
Cadbury/Schweppes). Hot Ice Tea also creates a potential situation for
cannibalism with Pepsi's very own brands of iced tea and other functional
drinks.
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7. Marketing Plan Hot Ice Tea
Consumers firstly decide that they are going to have a soft drink. Then they
compete brands with each other. Like they compete Coke with Pepsi and
Sprite with 7up and team .So the major competitor of PEPSI is Coke.
When they motivate to any other brand or on PEPSI it’s in instinct basically
that based on messages derive certain feelings.
But PEPSI thinks in a different way, they believe that RC Cola, new coming
AMRAT Cola, and all juices, even they take water and tea as their competitors.
DIRECT COMPETITOR
COCA COLA is the direct competitor of PEPSI and all other soft drinks in the
market.
The Coca-Cola Company’s core undertaking is
to benefit and refresh everyone it reaches.
Founded in 1886, we are the world’s leading manufacturer, marketer, and
distributor of non-alcoholic beverage concentrates and syrups, which are used
to produce nearly 400 beverage brands that make up for our wide portfolio.
Our corporate headquarters are established in Atlanta, and we are holding
local operations in over 200 countries around the world. Our activities cover
all sectors of the beverage industry. We are the second leading player in
functional and Asian specialty drinks, while ranking number one in value for
the ready-to-drink tea sector. (Company source)
INDIRECT COMPETITOR
All the tea brands and water is in indirect competition with PEPSI.
Source: (PEPSI website)
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8. Marketing Plan Hot Ice Tea
TARGET MARKET
There are two major target markets for ready-to-drink Hot ice tea.
• One group is the consumers on the go. These are the employees,
students, and other consumers who lead a busy lifestyle. The hectic
Pakistani lifestyle demands for optimize productivity with lesser time-
consumption. Thus, there is a need for products that are accessible and
readily available. Convenience has dominated the market, particularly
the food and beverage industry.
• The other group is made up of health conscious consumers, specifically
the younger who demand anything healthy. The positive reviews as well
as the studies on the benefits of tea drinking have stirred an interest in
tea drinking.
Distribution
The current market for Hot Ice Tea is fragmented, since the distribution is
restricted to local outlets and selling points such as counters and small Hot Ice
Tea shops in scattered locations. However, direct competition from these local
players is not anticipated, since the marketing roll-out will initially emphasize
on product awareness and both sales channels do not reach or serve the same
market (retailing vs. counter/restoration). A strong distribution system
already exists with PEPSI, since partnerships and channels are already in
place. This will facilitate the product’s reach into its target market.
1. Retailing
2. Wholesaling
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9. Marketing Plan Hot Ice Tea
Positioning
“Hot Ice Tea” will be a bottled beverage and will be positioned as the only
ready-to-drink Hot Ice Tea product available on the market. The beverage will
have a differential advantage that it can be drink as hot drink and can be
taken as cold drink. It will bring an entirely unique drinking experience to its
consumers. It will present itself as a funky and unusual alternative to
traditional tea while providing the great taste of authentic fruit juice in an
attractive and convenient packaging.
(www.pepsico.com)
Advertising
• Informative Advertising
There will be Informative Advertising during market of Hot Ice Tea and that will
help company:
1. Informing the market of a price
2. Describing available services
3. Correcting the false impression
4. Building a brand and company
image
5. communicating customer value
6. Telling market about a new
product
7. Explaining hoe the product
works
8. Suggesting new uses for a
product
• Persuasive Advertising
It will help marketers to:
1. Building brand preferences
2. Encouraging switching to your brand
3. Changing customer's perception of product attribute
4. Persuading customers to purchase now
5. Convincing customers to tell others about product
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10. Marketing Plan Hot Ice Tea
SWOT Analysis (Source PEPSI web site)
STRENGTHS WEAKNESSES
• Pepsi has a broader product line
and outstanding reputation.
• Merger of Quaker Oats produced
synergy across the board.
• Record revenues and increasing
market share.
• Lack of capital constraints
(availability of large free cash
flow).
• Great brands, strong distribution,
innovative capabilities
• Number one maker of snacks,
such as corn chips and potato
chips
• PepsiCo sells three products
through the same distribution
channel.
• Pepsi hard to inspire vision and
direction for large global company.
• Not all PepsiCo products bear the
company name
• PepsiCo is far away from leader
Coca-cola in the international market
– demand is highly elastic.
OPPORTUNITIES THREATS
• Food division should expand
internationally
• Noncarbonated drinks are the
fastest-growing part of the
industry
• There are increasing trend toward
healthy foods
• Focus on most important
customer trend - "Convenience".
• F&B industry is mature
• Pepsi is blamed for pesticide residues
in their products in one of their most
promising emerging market e.g. in India
• Over 50 percent of the company's
sales come from Frito-Lay; this is a
threat if the market takes a downturn
• PepsiCo now competes with Cadbury
Schweppes, Coca-Cola, and Kraft foods
(because of 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
constrains.
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11. Marketing Plan Hot Ice Tea
SWOT Analysis of Pepsi Co.
Strength
• Pepsi has a broader product line and outstanding reputation.
• Merger of Quaker Oats produced synergy across the board.
•Record revenues and increasing market share.
• Lack of capital constraints (availability of large free cash flow).
• Great brands, strong distribution, innovative capabilities
Number one maker of snacks, such as corn chips and potato chips
• PepsiCo sells three products through the same distribution channel.
For example, combining the production capabilities of Pepsi, Gatorade and
Tropicana is a big opportunity to reduce costs, improve efficiency and smooth
out the impact of seasonal fluctuations in demand for particular product.
Weakness
• Pepsi hard to inspire vision and direction for large global company.
• Not all PepsiCo products bear the company name
• PepsiCo is far away from leader Coca-cola in the international market –
demand is highly elastic.
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12. Marketing Plan Hot Ice Tea
Opportunity
• Food division should expand internationally
• Noncarbonated drinks are the fastest-growing part of the industry
• There are increasing trend toward healthy foods
• Focus on most important customer trend - "Convenience".
Threats
• F&B industry is mature
• Pepsi is blamed for pesticide residues in their products in one of their most
promising emerging market e.g. in India
• Over 50 percent of the company's sales come from Frito-Lay; this is a
threat if the market takes a downturn
• PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft
foods (because of 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 constrains.
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13. Marketing Plan Hot Ice Tea
Objectives and Goals
Company is centered on these objectives:
With the expected growth of the billion dollar ready-to-drink ice tea market, Hot
Ice Tea is poised to capture a bigger share of the market with an aggressive
marketing strategy: from packaging to advertising.
Short Term Goals:
Improve market presence by 20%
Short-Term Objectives
Aggressive Marketing Strategy PepsiCo can take advantage of the positive press
on the health benefits of tea to boost the sales of its hot ice tea product line. The
company can use recent studies on the health benefits of tea as the basis of its
press releases and advertising campaigns.
Improve Packaging The Hot Ice Tea will be introduced in two sizes: the 250ml
bottle and 1/2 liter bottle. PepsiCo can come up with other packaging sizes to
ensure that consumers will have other choices and that Hot Ice Tea will be easily
and readily available to consumers.
Improve Shelf Presence PepsiCo can make a deal with retailers ensure retail
shelf space and prominent positioning for Hot Ice Tea.“ Although an average
shopper may not notice what brands are positioned in prominent places on
shelves or how much room is allotted to each manufacturer, shelf space and
positioning as make or break factors in introducing new products”
Long-Term Goals:
World Number One ready-to-drink ice tea
Long-Term Objectives:
Product Innovation PepsiCo must continue its innovative research and
development strategy to come up with new flavors and products. PepsiCo has
extensive research facilities on product improvement. The company can use its
resources and professional expertise to come up with new flavors that will suit
the continuous demand for healthy ready-to-drink hot ice tea. With aggressive
marketing strategy and product positioning, Hot Ice Tea is ready to take the
global lead in ready-to-drink tea industry.
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14. Marketing Plan Hot Ice Tea
MARKETING STRETEGY
SEGMENTATION
Segmentation variables for consumer market of
Hot Ice Tea
TYPE VARIABLES PARTICULARS
World region or
country
Nationwide (all provinces and
territories) with emphasis on urban /
metropolitan areas, and adapted
strategies for all geographical groups
City or Metro
size
5000-20,000,upto 400,000 and over
Density Urban, suburban
Climate Northern southern eastern western
Age 12-19,20-34,35-49,50-64,65+
Gender Male , Female
Family size 1-2,3-4,5+
Family Life
Cycle
Young ,single married under 18
older
Income Under 10,000 and over 100,000
Occupation Professional ,proprietors, clerical
sales persons
Education Grade school or less high school
,graduate and above
Race All (Asian ,Hispanic, black ,white)
Generation Generation y
Social class Working class, middle class, upper
middle class, lower uppers ,upper
uppers
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Life style Achievers and strivers
Personality Compulsive ,authoritarian
gregarious, ambitious
Occasions Regular occasion and Special
occasion
Benefits Quality, convenience, nutritional
User Status Non-user, regular user, first time
user
Usage rate Light user , medium user , heavy
user
Loyalty status None , medium , strong
Readiness
stage
Un aware , aware ,interested ,
intended to buy
Attitude
towards
product
Positive, enthusiastic , indifferent
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16. Marketing Plan Hot Ice Tea
TARGETING
Segment identification:
RTD (Ready-to-drink) bottled Hot Ice Tea, to be established within the
Functional Drinks sector.
Segment needs:
The product will have both physiological need (hydrating and nutritional
value) and social needs (perception of a social, fun drink with a sense of
belonging within peer consumer groups)
Segment trends:
The current trends include a shift away from junk foods and carbonated
drinks, a growing interest for healthier / beneficial products for the “mind and
body” the trend towards the availability of on-the-go products for those with
an active lifestyle, as well as the trend for personalization through
customization (or for beverages, through variety-seeking in a wide
introduction of flavours. (www.oppapers.com)
Segment growth potential:
Statistical reports anticipate a segment growth of 1.72% over the next 9
years (2015) for the 10-29 years old subsets.
(www.oppapers.com)
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17. POSITIONNING
Positioning strategy
The only RTD bottled Hot Ice Tea available. Funky & eye-catching bottle,
functional packaging, premium-priced, cool, new and unusual, unique drinking
experience, aspects of play variety of flavors, sweet, refreshing, for hip &
young people, healthier alternative to heavy-sugar drinks.
POSITIONING STATEMENT
To young active soft drink customers who have little time for sleep, Hot Ice
Tea gives you the nutritional benefits of tea and keep you awaken. You can
take it while on the go, now it's your choice that you can chill it and you can
hot it. There is no boundary of season now because Hot Ice Tea can be taken
from both aspects hot drink and cold drink.
PRODUCT
PRODUCT STRATEGY
The core
o Hot Ice Tea beverage in a pre-bottled, ready-to-drink format.
The actual product
The Hot Ice Tea will be a convenience product.
o Packaging and labeling:
18. 1. Twist Cap
2. freshness seal
3. Easy to grab bottle
4. Flavor
5. logo of Hot Ice Tea
6. Slogan
7. Ingredients
8. PEPSI product
9. 250 ml bottle
10. Nutritional Details
11. Sweetened or Diet
o Branding:
Colorful, aspect of play, round shaped, prominent Hot Ice Tea logo written in
modern font.
o Trade name:
Hot Ice Tea ™, a PEPSI product
o Brand personality:
Energy, funky, cool, functional, original, funny, healthy, etc.
o Brand equity:
PEPSI provides a quality, consistent, innovative and accessible soft drink
reputation.
o Product life cycle:
19. Hot Ice Tea is a low-learning product. With a strong marketing campaign,
“sales [will] begin immediately and the benefits of the purchase are readily
understood” Since Hot Ice Tea is prone to product imitation, Pepsi's strategy
is to broaden distribution quickly, which is currently feasible thanks to the
company’s high manufacturing capacity.
o Product class:
Food & beverage Soft Drinks Functional Drinks Hot Ice Tea follows the
practice of product modification PEPSI is introducing an existing beverage
(Hot Ice Tea) but redefines the drink with a new, more convenient package.
Hot Ice Tea will now become a widely available drink in multiple retailing
(distribution) channels.
Product Quality
• Performance Quality
The performance quality of Hot Ice Tea will be that it will produce what it
functions, and the main function of Hot Ice Tea is the hot and cool nature
of product. Customer can take it as a hot drink by got hot by oven and can
take it as cool drink by chilling it in deep freezer it is up to the customer.
• Conformance Quality
The conformance quality of Hot Ice Tea will be that it will be free from any
defects; it will deliver its targeted performance and quality
PRICE
PRICE STRATEGY
20. The price strategy that will be undertaken should consider the following
aspects:
1. Consumer demand
2. The product lifecycle
3. Potential substitutes
Customer demand
Customer demand is a crucial factor which is driven by tastes, income and
availability of others similar products at a different price. For a lot of
consumers, value and price are highly related: ‘’the higher the price,
the higher the value’’. Consequently, Pepsi's intention to position Hot
Ice Tea as a unique, innovative and
attractive product gives it a certain control
over Hot Ice Tea price. To be able to
implement higher pricing though, the
minimization of the non-monetary costs to
customers should also be include along
with awareness of the product (notably by advertising) and value
(benefits).
The product lifecycle
The company should take advantage also to the fact that the newer the
product and the earlier in its lifecycle the higher the price can usually be. It
ensures a high profit margin as the early adopters buy the product and the
firm seeks to recoup development costs quickly and it also brings a certain
prestige to the product. (Source netmba.com)
• Product development
21. It begins when the company finds and develops a new product idea. During
product development, sales are zero and the company's investment costs
mount.
• Introduction
Is the period of slow sales growth as the product is introduced in the market.
Profits are nonexistent in this stage because of the heavy expenses of product
introduction.
• Growth
Is a period of rapid market acceptance and increasing profits .
• Maturity
Is a period of slowdown in sales growth because the product has achieved
acceptance by most potential buyers. Profits level off or decline because of
increased marketing outlays to defend the product against competition.
• Decline
Is the period when sales fall off and profits drop. (Ref. from book)
Potential substitutes
PEPSI is constrained by the monopolistic market in which it competes. The
main characteristic however is product differentiation.
22. Pricing strategy
The point here is that PEPSI can not set a price that is too high because
competitors will be attracted by potential profits and will follow by a
lower price. After having taken all the important factors into
consideration, there are five price-level fixing approaches seem
appropriate.
1. Cost Based Pricing
One of the central objectives of this project being to become the market
leader in functional drinks, PEPSI is willing to stay among the top competitors,
if not becoming the greater, by achieving a certain target profit. This could be
obtained by establish a price that will largely cover variable and fixed costs
while bringing tremendous profits.
2. Value Added Pricing
Competitors and potential substitute's prices can also be part of the strategy.
Having a higher price could make customers aware of the additional benefits
and the higher quality of Hot Ice Tea.
3. Value based Pricing
The company sets its target price based on customer perceptions of the
product value. The targeted value and price then drive decisions about
product design and what cost can be incurred. As a result pricing begins with
23. analyzing consumer needs and value perceptions, and price is set to match
consumer's perceived value.
4. Market Penetration Pricing
The company can set a low price for a new product in order to attract a large
number of buyers and a large market share.
5. Break-even pricing
The company has to make some strategies for break-even prices, setting
prices to break even on the costs of making and marketing a product; or
setting prices to make a target profit.
PROMOTION
PROMOTION STRATEGY
Objectives:
24. • To initiate strong awareness about the launch of Hot Ice Tea throughout
Generation Y (10-29 years old) consumers as well as their parents.
• To win market shares over our top functional drinks competitor,
PepsiCo.
The promotional activities will convey the clear message that “Hot Ice Tea is a
healthy drink for sporty and young people who simply enjoy taking care of
their body and life.”
Concepts:
• “Think outside the bubble”: Be Bold, Be Original, Be Different, Be
Yourself.
• “A good spirit in a good body.”
• “For the out-of-the-ordinary individuals who like to challenge
themselves.
25. Media selection:
Before choosing the appropriate Medias, it is important to note that
Generation Y consumers only give partial attention to media. However, they
can be reached through integrated programs. They are typically using more
than one communication media at a time; a behaviour that is often called
“multitasking”. This group of consumers doesn’t give its full attention to one
single message, but rather uses continuous partial attention to scan the
media. Marketers can still communicate with Generation Y by using a variety
of targeted promotional tools. Another important tactic to reach our target
market is through “Hot Ice Tea” marketing, which PEPSI will heavily use in
this campaign (campus, contests).
Advertising:
Output Examples
Television GEO TV. ARYONE DIGITAL.AAG TV
Radio FM100,FM103,FM106
Magazines TIME MAGAZINE ,akhbar e jahan ,family
Internet Banners on selected websites (gaming, sports, Google,
yahoo etc.)
Outdoors Billboards and prints in select areas including:
Campuses, transportation (bus, metro, stations)
Tourist areas in high seasonal periods
Personal
selling
Direct contact with retailers, sales kit strategies to be
explained later in the text.
Public
relations
Stands or special displays and events in schools, malls,
sports events (i.e. IPL SEASON 2), sponsorship activities
Publicity Conferences, press releases (print and online),
marketing through TV coverage
Justifications for advertising selections
-TV:
26. Most viewed channel for now a days are geo ,Ary one world and Aag tv
and specially etc and MTV are the most viewed channels by teen age groups.
TV communicates with sight, sound and motion, which is needed for HOT ICE
TEA. It is the only media that can reach 99% of the homes at once. PEPSI has
the budget to cover the high costs of this media.
-Radio:
FM 100 ,FM 103 ,FM 106.2 AND FM 101 are the most popular fm radio
stations which are equally listened by every age group.
Radio is an already segmented medium. There are many radio stations in
Pakistan. The average University or college student is a surprisingly heavy
radio listener and spends more time during the day listening to radio than
watching network television we could also use of “Interactive radio” as Pepsi
has already done in the past.
-Magazines:
We should take advantage of the fact that magazines have become a
very specialized medium. There are many consumers' magazines in Pakistan.
Good color production is also an advantage that creates strong images which
is the purpose of PEPSI with its HOT ICE TEA brand. Each magazine’s readers
often represent a unique profile.
Reaching:
-AKHBAR E JAHAN (is the largest selling Urdu magazine in the world)
-FAMILY MAGAZINE
-DEFENCE JOURNAL
27. -YOUNG WORLD (weekly magazine for young people)
-HUMSAFAR
-PAKISTAN PUNCH
-SHE MAGAZINE (for young girls)
(www.allyoucanread.com)
-Internet:
Online advertising is similar to print advertising in that it offers a visual
message. It also has additional advantages; it can also use the audio and
video capabilities. As we are targeting our ads to young outgoing people,
sound and movement may attract more attention from viewers and has the
unique feature of being interactive. Interactive media would offer PEPSI the
opportunity to reach younger consumers who have developed a preference for
online communication.
-Outdoor:
Billboards in specific geographical area would allow us get a good reach and
frequency. It is a low cost and flexible alternative. (Campus, malls, Bus and
metro stations)
Promotional Mix:
• Contests:
“Win another Hot Ice Tea flavour”, “Uncover a secret code underneath the
bottle cap and win sporting goods and electronics by logging on the website”,
28. “Win a trip for the 2009 ICL IN INDIA”. (Arguments: It will increase consumer
purchases and encourage consumer involvement with the product).
• Samples:
Distributed in supermarkets, school/universities. Samples are a way to avoid
product resistance since people are not used to find bubbles in their drinks.
Arguments: It will encourage new product purchases and it represents low risk
for consumers since they get it for free. They have nothing to loose by trying
it.
• Point-of-purchase:
In supermarkets (to reach the parents of generation Y). Arguments: It is also
a mean to increase product trial and provides a good product visibility.
• Others:
In subsequent years, engage in product placement in TV shows or movies.
Trade oriented:
• Allowances and discounts:
Case allowance (Arguments: The “free goods” approach will be used so it can
encourage retailers to buy more of the product to get a certain amount for
free).
29. • Cooperative advertising:
To encourage retailers to buy our product and to maintain our high level of
advertisement that consumers expect from PEPSI.
Other considerations:
• Scheduling of the advertising:
Pulse scheduling (promotional presence year-round, but emphasized and
intensified before and during summer).
IMC (integrated marketing communication) (source beverage digest)
Target Audience:
• Intermediary:
Personal selling will be more often used
• Ultimate consumer:
PEPSI will use more of mass media because the amount of potential buyers is
large.
PLACE
PLACE (DISTRIBUTION STRATEGY)
Hot Ice Tea will be distributed through these channels: supermarkets,
convenience stores, independent food stores, discount stores, multiple
grocers, direct sales.
ACTION PLAN
30. Step Output Period of time Arguments
1 Personal selling 1st
month to 2nd
month
To make Pakistani retailers aware of Hot Ice Tea
so they can order it in time
2 Radio spots
2nd
month to mid of 3rd
month
Radio is the most listened media by students and
peoples on the go
3 Magazines ads
Mid of 3rd
month to 4th
month
The target market will then match an image with the
name of the product more easily. The recognition of
Hot Ice Tea will be faster.
4 Television spots
Mid of 3rd
month to 4th
month
To send a wide message over Pakistan that Hot
Ice Tea is now available.
5
Point of
purchase
5th
month to 6th
month
Making a special section for the Hot Ice Tea in
Grocery store will help the new potential buyers to
find our product faster and more easily.
6 Outdoors
Mid of 3rd
month to 4th
month
Putting adds in specific places where Generation Y
hangs out will create an increased awareness of Hot
Ice Tea
7 Public Relations 6th
month to 7th
month
We will use special events (sports and others) to
promote Hot Ice Tea and also to get in touch with
our potential market. It will allow PEPSI to interact
with our Generation Y Consumers.
8 Contest 7th
month to 8th
month
We will use contest to give a second "push" to the
sales of the Hot Ice Tea.
9 Publicity All the time
Use of TV ads and news to make the general public
aware of the existence of Hot Ice Tea.
31. MARKETING DEPARTMENT HIRARCHRY CHART
BUDGET
The estimated cost that will incurred while marketing of Hot Ice Tea is about
10 crores or 10 billion rupees for one year.
The details are as follows:
Media Explanation of estimated cost that will incurred for 1 year
T.V Adds on TV with different celebrities for one year will cost
approx. 7 crores
NEWS
PAPER
Add in leading news papers will cost approx. 2 million
RADIO For 30 second add for 2 months will cost approx. 380,400
MAGAZINE For 1 month advertising in Akhbar e Jahan will cost approx.
200,000
BILL
BOARDS
For 3 bill boards on main locations acquiring will cost approx.
10.5 million
FREE
SAMPLING TO
RETAILORS
Free sampling to main retailers will cost approx. 300,000
CONTESTS After 6 month of operation if there will be a need to give a 2nd
push to our sales and a contest has to be arranged that will
approx. cost about 5million
MARKETING DEPARTMENT
DIRECTOR MARKETING
SALES MANAGER
ADVERTISING MANAGER
DISTRIBUTION MANAGER
BRAND MANAGER
MARKET RESEARCH MANAGER
32. CONTROL
In the first month of operation Management will over view that whether the
Marketing goals and objectives are going in right direction or not if not than
what went wrong and what are differences between actual and expected
performance. This may require changing the action programs or even
changing the goals.
• Operating control
It involves checking ongoing performance against the annual plan and
taking corrective action when necessary. It will ensure us that the com-any
achieves the sales, profits and other goals set out in annual plan. It also
involves determining the profitability of product.
• Strategic Control
It involves looking at whether the company's basic strategies are well
matched to its opportunities. Marketing strategies and programs can
quickly become out-dated and there will be need of periodically reassess its
over all approach to the market-place. A major tool is marketing audit.
Marketing Audit
There will be a need of monthly marketing audit regarding current activities
and sales volume. It will cover all the marketing areas of business. It will
include audit of:
1. Marketing Environment
2. Marketing Strategy
3. Marketing Organization
4. Marketing Systems
5. Marketing Mix
6. Marketing productivity
7. Profitability
Measuring and Managing return on Marketing Investments
33. After six months of operation we have to measure that whether our
investment is being spent well or not? Are we getting targeted Return on
Investment or not?
Return on Investment
The net return from a marketing investment divided by the costs of the
marketing investment. It measures the profits generated by investments in
marketing activities. (Source principles of marketing)
The consumer purchase decision process
Routine problem
solving
Economic Needs
Search for information
Evaluate alternatives and decide
on solution
Purchase product
Post-purchase evaluation
Postpone
decision
Extensive
problem solving
Purchase
situation
Social
influences
Need motivation
Psychological
variables
