El estado del arte

FOUR P ANALYSIS

PRODUCT:

WIDTH:

The Pepsi beverage division has the following product lines – 1. Soft Drinks

2. Juices ( Tropicana) 3. Mineral Water LENGTH:

Soft Drink Juices Mineral Water

Pepsi Tropicana Aquafina

Diet Pepsi Gatorade Mirinda

7 Up Mountain Dew

DEPTH:

We will focus on the soft drink section here. The Pepsi cola comes in various sizes ranging from 300ml, 500 ml and 2 litres. In addition Pepsi Cola is also available in 330ml cans.

CONSISTENCY:

The different products in the soft drink section are all closely related.

They share the same distribution channel and are supplied in the same manner. They also have a similar production process and the end users are by and large homogenous.

Pepsi cola has a light, crisp and refreshing taste. It is the perfect drink for the modern “Generation Next” people. The product comes in 300ml glass bottles,500 ml pet bottles and in 2 liters. The product targets the

upwardly mobile with its trendy design and is a premium product from the house of Pepsi. It has a shelf life of 6 months.

PRICE:

Pepsi’s pricing strategy is largely formulated by keeping its rivals, Coca-Cola, pricing strategy in mind. The reverse is also true. Both the products are not differentiable and are near perfect substitutes. Another important factor here is that the sales are volume driven; hence price needs to be kept at an appropriate level. Listed below are the prices of the variants

1. 300 ml is for Rs 9.

2. 500 ml is for Rs 18 3. 2 litre is for Rs 43 4. 330 ml can for Rs 20 PROMOTION:

The soft drinks market in the country relies heavily on promotion to sell its products. The presence of close competition makes it necessary for both Pepsi and Coca-Cola to hard sell their products. The leading

products offered by both the companies are very similar. The companies try aggressively to build loyalties for their respective brands by playing on emotions and aspirations of its consumers. They have roped in cricket players and film stars to attract and create interest in their products. Pepsi especially has been advertising using a number of cricketers to associate Pepsi Cola with their success.

A Pepsi spokesperson says promotions have worked very well for the company and have helped reinforce the brand personality.

The `Pepsi Cool Maal’ scheme in June-July 1998 targeted at school children met with a phenomenal response because the premia comprised items that school kids needed and ``yet had a lot of attitude''. The

previous year, the company ran a `Pepsi Stuff' promotion that offered young people a range of offers, both free and discounted, on cinema tickets, apparel, music and so on.

TV Ads – Pepsi has been bombarding the Indian customers with a

periodical onslaught of creative advertisements aimed at the youth of the

country. Early on, Pepsi identified three broad platforms cricket, movies and music. It has roped in the biggest stars from the film industry and the cricketing fraternity. People endorsing Pepsi include bollywood

superstars Amitabh Bacchan & Shah Rukh Khan with a host of other actors. Fardeen Khan, Saif Ali Khan, Priety Zinta, Kareena Kapoor among the more popular ones.

It has roped in most of the members of the national cricket team. From Superstar Sachin Tendulkar to Rahul Dravid, Sorav Ganguly, Yuvraj Singh, Mohammed Kaif etc. Pepsi started hiring cricket stars very early and set a trend in the market. It also brought international music stars like Michael Jackson, Ricky Martin, Deep Purple and Def Leppard among others to the country.

Pepsi began advertising early with its very effective ‘Ha’ campaign. A-Ha created a new idiom. The tag line which was built into a song brought instant attention the product. Having Remo Fernades sing “yehi hai right choice baby…a-ha” caught the attention of the youth. Then came Akshay Kumar with the “I wanna be mast” campaign. Pepsi chose its

ambassadors in a manner which ensured curiosity and then lasting interest in the youth of the country. Pepsi has over the years come up with catchy slogans like Generation Next, Yeh Dil Maange More, The choice of a new generation etc.

Pepsi also associates itself with cricket which is by far the most popular activity, sport, mode of entertainment in the country. It even launched a new brand by the name of ‘Pepsi Blue” during the last cricket world cup to cash on the fact that the color of the players’ uniform is blue.. In an earlier episode of the same event where Pepsi had lost out to rival

Cola in gaining the official sponsorship, Pepsi came out with an aggressive and creative campaign, where it positioned itself as the

“unofficial drink” as opposed to coke’s strategy. It signed up a number of national as well as international stars, mouthing the tag line “nothing official about it”. The company has also time and again sponsored a number of cricket tournaments. It recently came up with the ‘Toss ka Boss’ contest which saw fans join the two captains on the field for the coin toss.

Pepsi also came out with a series of ads poking fun at rival Coke and its brand ambassadors. This was done with a fair degree of success as it had everybody from the road side vendor to the BBC correspondents talk about it. Another recent campaign which created controversy was the

‘OYE BUBBLY’ campaign. It used a voice over which bore similarity to the voice of Coke’s brand ambassador Virender Sehwag. Pepsi has

created quite a stir with the ‘OYE BUBBLY’ campaign. It shot a music video with Amitabh Bacchan, Sachin Tendulkar and other players from the cricket team. It released an audio cassette and CD with the song on it.

This campaign in particular has been very successful thanks to the catchy tune and ads featuring Shah Rukh Khan.

Internet – Pepsi signed up with Yahoo! India and launched a Pepsi zone on yahoo - http://www.pepsizone.yahoo.co.in. The zone was aimed at the younger lot of the net surfers. A number of features like contests, chat rooms, games, download etc. attracted net users

PLACE:

How does bottle of PEPSI reach you…..

To bring the product to the consumer by proper distribution management to:

For distribution purpose pepsi uses 2level distribution channel which contain two intermediaries between the bottling factory and the final consumer.

The Company does its selling by using company owned distributors or franchisee owned distributors. Worldwide Pepsi relies on franchisee but in India it uses both company owned and franchise owned operations.

Pepsi uses two methodologies for distribution in India 1. Company owned distributors

2. Franchise owned

MANUFACTURER

DISTRIBUTOR

RETAILER

CONSUMER

FRANCHISEE OWNED:- This is like outsourcing wherein the company out sources its distributing related work to another party.

Company has less control owner the distributor. All the investments like vehicles, Employees salaries etc are made by the distributor who in return gets a margin ( around 18-20%).Advantages of using this scheme is that the fixed investments and other distribution related expenses of the company are less. The disadvantages are that the company has lesser control over the distribution process.This method is followed in delhi COMPANY OWNED:- Here the company owns all the vehicles, the employees are on company roles. The advantages of suh a process are that the company has direct control over the entire distribution process, it also gives the company higher flexibility. The disadvantages of such a process are that it involves huge investments.This method is followed in punjab

Pepsi is currently available with the other Pepsi products at:

 Convenience Stores

 Restaurants

 Grocers

 Entertainment Centers

 Offices and Institutions

 Eateries

 Educational Institutions

 Hotels