Marketing Strategy

of Pepsi
Presentation Flow
O PEPSI-COLA
O General Marketing Policies
O Logo changes
O Remarkable Marketing practices
O PEPSI IN USA
O Starting
O Different strategies through periods
O PEPSI IN INDIA
O Entering
O Different strategies through periods
Pepsi-Cola
O 1898 (as Brad's Drink)
O patent awarded 1903
O Bottling started 1905
O Advertising started
O franchises started- two years later
Logo changes
Pepsi logo (1973-87). In 1987, the font
was modified slightly to a more
rounded version which was used until
1991. This logo was used for Pepsi
Throwback in 2010
Pepsi logo (2003-2008). Pepsi Wild
Cherry and Pepsi ONE continued to
use this design through March 2010. It
was outside of the U.S. until 2010. In
2007, the Pepsi wording was moved to
the bottom of the globe
Pepsi in USA
O Famous racing car driver Barney Oldfield
endorsed Pepsi in newspaper ads.
O The Light Refreshment and Refreshing
without Filling.
Further
O 1960 Sociables
O With the baby boom , 1964- Diet Pepsi.
O In 1964, Mountain Dew, a regional soft drink
favourite
O Pepsico. 1965 Merge with Frito lay, a chips
company
O The Pepsi Challenge campaign
O 1976, single largest-selling soft drink brand
in American supermarkets
O 1984 In its early stages, the New Generation
campaign featured the biggest entertainer of
the time, Michael Jackson
O Throughout the 80s, a long list of stars and
superstars lent their magic to Pepsi
O 1990, Pepsi broadened its product line.
O 1990 Partnership established with the Thomas J.
Lipton Company
O Partnership, with Starbucks, produced
Frappuccino, a new, coffee-based, ice-cold
refreshment that rapidly became the nations most
popular ready-to-drink cold coffee.
Concepts
O Pepsi pioneered the concept of freshness
dating, providing consumers with an easy-to-
read product freshness code soon followed.
O On the field, Pepsi partnered with the best
Major League Baseball, Major League
Soccer and the National Football League
Pepsi in INDIA
O PepsiCo to enter late 1980s
O struggle hard to 'sell' itself to the Indian
government. PepsiCo promised to work
towards uplifting the rural economy of the
terrorism affected north Indian state of
Punjab by getting involved in agricultural
activities.
Issues
1. understand the kind of strategy a multinational company
develops to enter highly regulated economies that have
immense market potential
2. analyse the importance of formulating and selling a
business proposal in such a manner that it becomes
attractive to the regulatory authorities of a foreign country
3. appreciate how and why a company changes its strategies
in tune with changes in the regulatory environment of a
foreign country
4. understand the role big private sector corporations can
play in the development of the economies in which they
operate
Hitbacks in India
O Coca-Cola, had indeed been forced to close
operations and leave India in 1977.
O Even in the late 1980s, India had a closed economy
and government intervention in the corporate sector
was quite high.
O Association with RPG group did not work out.
Target Market
O PepsiCo, the US- saturation levels, the
option to expand on a global scale seemed
to have become inevitable for the company.
O India was a lucrative destination since its
vast population offered a huge, untapped
customer base.
CSR
O The company claimed that it would play a central role in
bringing about an agricultural revolution in the state and
would create many employment opportunities.
O Pepsi's tomato farming project was primarily responsible
for increasing India's tomato production.
O Production increased from 4.24 million tonnes in 1991-92
to 5.44 million tones in 1995-96. The company's use of
high yielding seeds was regarded as one of the reasons for
the increase in productivity in tomato cultivation during the
same period.
Promotions
O Youngistaan Campaigns- (Demography
suggests)
O Celebrities and Cricket stars
O TV commercial with a game