new product launch pepsi e

Marketing Presentation.

“PEPSI-E”The Energy Booster

PRESENTATORS

SalmanDhukka

SantoshiGudikandla

SagarSingh

DarshanaVariya

INTRODUCTION TO FMCG SECTOR

• Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost.

• FMCG goods are popularly known as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals.

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Carbonated Soft Drinks

Mineral Water

Top Companies

• The top ten India FMCG brands are:– Hindustan Unilever– PepsiCo– ITC (Indian Tobacco Company) – Nestlé India – GCMMF (AMUL) – Dabur India – Asian Paints (India) – Cadbury India – Britannia Industries

– Procter & Gamble

Introduction to PepsiCo:

PepsiCo serves 200 countries and is a world leader in providing food and beverage products

• PepsiCo stands out as a company because of its sustainable advantage.

• Public Relations people have great opportunities to improve the company's reputation because of the size and financial stability of the company.

• PepsiCo's overall mission is to increase the value of their shareholder's Investment.

Positioning of PepsiCo from 1939- till date

1939- 1969

Twice As Much For A Nickel Too

The Light Refreshment

Be Sociable

Now It’s Pepsi For Those Who Think Young

Come Alive! You’re In The Pepsi Generation

Taste That Beats The Others Cold

1970-1983

You’ve Got A Lot To Live, Pepsi’s Got A Lot To Give

Join The Pepsi People Feelin’ Free

Lipsmackin thirst quenchin (ace tastinmotivating good buzzin cool talkin high walkinfast livin ever givin cool fizzin) Pepsi

Have A Pepsi Day

Pepsi’s Got Your Taste For Life!

Pepsi Now!

1984-1993

Pepsi, The Choice Of A New GenerationAre you ready to take the challenge?

Taste the differenceGeneration Next

Join the Pepsi generation: feel the taste

A Generation Ahead

Gotta Have It

Be Young, Have Fun, Drink Pepsi

1994-2003

Nothing Else is a Pepsi

Generation Next

Same Great Taste

The Joy of Cola

The Joy of Pepsi

Pepsi. It’s the Cola

“Aazadi dil ki” (Hindi- meaning “Freedom of the Heart”)(India)

2003-Present

“It’s the Cola”/”Dare for More”

Yeh Pyas Hai Badi

An ice cold Pepsi. It’s better than sex!

Why You Doggin’ Me/Taste the one that’s forever young

Yeh hai Yeri Jaan!

Рepsi is #1

Pepsify karo gai

Oh Yes Abhi!

PepsiCo SWOT Analysis STRENGHTS WEAKNESSES

1. Product diversity 1. Over dependence on Walmart

1. Extensive Distribution channel 2. Low Pricing

1. Corporate Social Responsibility [CSR] 3. Questionable practices [using tap water but

labeling as mountain spring water]

1. Competency in Mergers and Acquisitions 4. Too low net profit margin

1. 22 brands earning more than $1 billion a

year

1. Complementary product sales

OPPORTUNITIES THREATS

Growing beverages and snack consumption in the emerging markets [BRICS]

1. Changes in consumer tastes

Increasing demand for healthy food and beverages

2. Water scarcity

Further expansion through Acquisitions

3. Decreasing Gross Profit

margin

Bottled water consumption growth.

4. Increasing Competition from

Synder’s

Introduction Of Project

• Launching Of a New Product

• “Pepsi-E”- The Energy BoosterWe are Going to Launch a New Product in the market, and have devised a research plan followed by findings of Primary Data and Secondary Data.

• Research MethodologyPrimary Data:- Research QuestionnaireSecondary Data:- Marketing Books

Introduction Of Product

• Pepsi-E is a non alcoholic carbonated drink launched and developed using a unique combination of 100% Natural flavours, vitamin B and other vital nutrients which helps revitalizing and energizing body and mind.

• It offers variants like

Lemonade, Agave, Raspberry & Cherry.

Product Mix Management

LEVELS OF PRODUCT

Potential

Augmented

Expected

Basic

Core

SEGMENTATION

• Geographic:Urban and Rural areas.

• Demographic: Gender: Both Male and Female.Age: 18-40.Education: Literate, Illiterate.Income: As our product prices are at a reasonable rate,

hence all income groups have a purchasing power to buy the product.Occupation: Athles, Professionals, Sports Personnel. Social Economic Class (SEC): Upper Class People, Middle

Class People and Lower Class People.

• Psychographic:Personality: Athletes, Party poopersLifestyle: Sophisticated, Sober and Gymnastic Personnel.Values: 100% Veg.

• Behavioral: Benefits: Boost’s up your energy level, Helps indigestion.Occasion: Works best at all time of the day.Loyalty status: Split loyal.User status: The product has the possibility to

switch/convert people from other energy drinks brands as it offers large variety of variants/flavours.

TARGETING

• Sports Person

• Athletes

• Gymnasts

• Party Pooper’s

• Alcoholics

DIFFERENTIATION

• Pepsi-E will be launching its “Lemonade” variant in its initial stage and will be diversifying its variants after a growth stage i.e. Raspberry, Agave, Cherry, Orange.

POSITIONING

• USP [Unique Selling Preposition]: Hard Working, Easy Drinking

• TAGLINE: The Energy Booster

• POINT OF Differentiation:Contains Natural Flavours. No use of synthetic flavours.

• POINT OF PARITY:Contains less caffeine. Hence it proves healthy and it is

harmless in nature.

PERCEPTUAL MAPPING

LimitedVariety

Mass Appeal

UnlimitedVariety

Niche Appeal

SWOT OF PEPSI-E:

INTERNAL

STENGTHSStrong brand identityStrong Financial positionNo.2 in market sharePackage Design

WEAKNESSESHigher dosages can lead to:Increased blood pressureIncreased urinationInsomniaHeadache and severe fatigue from withdrawal

EXTERNAL

OPPORTUNITIESGet the top of marketEmerging market and expanding market

THREATSCompetitors (TZINGA, Red Bull, Monster, Burn, Urzaa and Enerzal)Created new consumer and keep loyal customers

Product Profile

Product Name

“Pepsi E”- The Energy BoosterProduct Classification

• Consumer market• Non-durable• Shopping goods

Product Characteristics

• Category : Beverage• Packaging : Glass & Aluminum Tin• Price : Rs 79

Distribution• Super markets,• Gyms,• Coffee Houses: Subway, Barista, Costa Coffee, Café Coffee Day• In n Out Convenience Stores.• Pizza Outlets.

Ansoff Growth Matrix

Market Penetration

Product Development

Market Development

Diversification

Existing Market New Product

Existing Market

New Product

Product Life Cycle [PLC]

New Product Development

• Before actual offering of the product to customers, product passes through product development, involves prototype and market tests.

Introduction

• Characteristics

Low sales/ Low Volume/ Heavy Promotions

• Marketing Strategies

Product

Focus on single product, “Lemonade”

Price & Promotion

Rapid Penetration[ Low Price/ High Promotion]

Distribution

Intensive Distribution

Growth

• Characteristics

Increase in Sales & Profits/ Entry of Competitors

• Marketing Strategies

Product

Focus on brand preference/ Variants are introduced

Price & Promotion

Rapid Skimming [High Price, High Promotion]

Distribution

Increase in distribution coverage

Maturity

• Characteristics

Sales continues on declining rate/ Focus on Reminder advertisements

• Marketing Strategies

Product

Modification of the Product

Price & Promotion

Slow Skimming[High Price, Low Promotion]

Distribution

Focus on Profitable segments

Decline

• Characteristics

Decline in Sales/ Decline in Volumes

• Marketing Strategies

Product

Withdrawal of the weaker variants.

Price & Promotion

Push & Pull Strategy

Distribution

Selective distribution channels

Integrated Marketing Communications Management

RESEARCH METHODOLOGY

We have conducted a Research in the city of Mumbai and the

Findings are as follows

Q.1 Have you ever consumed any Energy Drink?

Gender

Male Female

As seen in the pie chart, there’s not only a majority chunk of Indian men who prefer consuming an Energy Drink but also a good chunk of women consumes it.

Q.2 if Yes, then which Brand is it?Brands

Red Bull

Cloud 9

Urzza

Zynga/ Burn

Monster/ Rock star

As seen above, Red bull has a good market share followed by Zynga & Cloud 9.Hence it would be a challenging job for PepsiCo to grab the market share of these Brands and make a place for itself in the market.

Q.3 How frequently do you consume?Consumption

Daily

Once a week

Twice a Week

Once a Month

Once in 6 mths

Once a year

As seen in the illustration there’s a good stock turnover ratio expected by the company in the period, between 15 days to 30 days.

Q.4 What are the reasons for you to consume the Energy Drink?

Reasons for Consumption

Boost Energy

Improves Performance

Make evoke during Journey

Make you Active

According to the research conducted, majority of the individuals consume Energy Drinks to make their self active during stressful times and also to keep them evoke at the time of journey. Thus, it’s a good aspect which is covered by Pepsi- E.

Q.5 Are you satisfied with the brand your currently using?

Satisfaction Level

Yes

No

As seen above the satisfaction level of the consumers of other brands is quite good, it’s a challenge for the company to make place in the market as consumer/ customers who might be Hard core Loyal to the brands they use currently.

Q.6 Are you aware that frequent consumption of Energy Drink has an adverse effect on your

Health?

Awareness of Adverse Effects

Yes

No

According to the research, many people in the market are aware that the consumption of energy drink will have an adverse effect on their Health.Thus, Pepsi-E has a advantage in this because it contains Natural Flavours and less Caffeine hence proving good for Health.

Q.7 Would you like to replace your current brand with a better one?

Possibilty of converting consumers

Yes

No

As seen above in the pie chart, majority of the respondents do not want to change their brand preferences. Pepsi-E will face minor obstacles in the phase of converting the other users to potential user of itself.

Q.8 What comes to your mind when you hear the word Pepsi?

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LogoOh Yes Abhi.!

Soft Drinks

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Column1

According to the research conducted a huge chunk of respondents have created a mindset for Pepsi as a Soft Drink

Q.9 Have you tried/ consumed any brand of PepsiCo?If yes which one?

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Pepsi Soft drink Tropicana Lay's Kurkure Mountain Dew Mirinda 7up

Majority of the respondents have consumed Concentrated Soft Drink of PepsiCo, hence Pepsi-E will have a good Parental positioning to grab the market share.

Q.10 What would be your opinion if PepsiCo comes up with an energy drink called “Pepsi-E”- The Energy

Booster?

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Very Interesting Interesting Neutral Not Interested Not at allInterested

Potential Users in Future

Potential Users in Future

According to the respondent Surveyed, majority of people found it interesting if PepsiCo comes up with an Energy Drink

Q.11 What are the aspects that will encourage you to buy our Product?

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Taste Price Packaging Easy Availability

Encouraging Aspects

Encouraging Aspects

As People in India prefers products which are more tasty and is light to the pocket, Pepsi-E is their Saviour, it contains Natural Flavours and Low Caffeine which is good in Taste and its price is set to be the Average Price

Q.12 Where do you generally buy your product from?

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General Store Malls Nearest Shop Nothing Specific

Distribution Plan

Distribution Plan

PepsiCo has to make increased efforts to spread out its distribution plan and to make Pepsi-E available at every Mom and Pop stores in its segmented Geographic Area.

Q.13 In a typical day, how much time do you spend during each of the following.

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Watching TV Listening Radio Reading Magazine Reading Newspaper Browsing Net Social NetworkingSit

None

Less than 1 hr

1-2 Hr

More than 4 hrs

This shows its Sales Promotion tools which PepsiCo will adopt to Excessive Advertisements will be done on Social Networking Sites, Radios, Print Media i.e Newspapers and Hyperlinks will be flashed on various websites.

Q.14 Other than the product itself, which of the following would most influence you when deciding to

buy a product?

Influencing Factors expected by consumers

Taste

Price

Quantity

Quality

Discount Offer

Sales/ service Representation

Product demo

Trade Show/ Event

Brand Ambassador

Among Indian consumers as stated earlier, taste is the first preference given when buying of a product takes place followed by price, Quantity and Quality of the product.Stylish Personalities of Celebrity also influence Sales.While Discount offer and product demo is not that much emphasized.

Q.15 Overall how interested are you in buying this product if it gets available

easily?

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Very Interesting Interesting Neutal Not Interested Not at allInterested

Overall Interest

Overall Interest

If the Pepsi-E is Available in every nook and corner of the city, individuals will show a good interest in buying it

Q.16 Which celebrity personnel do you prefer endorsing this product?

Celebrity Preference for endorsing

Virat Kohli

Varun Dhawan

Alia Bhatt

Ranveer Singh

Honey Singh

According to the respondents choice done in the survey, Alia Bhatt and Varun Dhawan are the celebrity personnel most preferred for endorsing Pepsi-E.

Conclusion

• The Energy Drink industry has not expanded to the other age groups than the Youth.

• The Energy Drink has been preferred more by men and between the age group of 18-30

• The 30 and above age group who have higher income capacity has not been targeted well

• The market of Energy Drink still has preference among the users due to the taste and energy provided more than the price category

• Entry of new errant have become as high as market size is low.

• The promotional activities as Energy Drink is low among the available market size which lacks in brand awareness of the Product.

Bibliography

• http://www.rediff.com/money/2006/may/24drink.htm

• http://www.thestudentroom.co.uk/showthread.php?t=986602

• http://www.trcb.com/business/marketing/redbull-marketing-strategy-7375.htm

• http://www.drawert.com/red_bull_2.php

• http://energydrinks.factexpert.com/882-energy-drink-industry.php

• Marketing Research – Dr P. Narayana Reddy & Dr. G. V K Acharyulu