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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