Pepsi CO. Executive SummaryThe purpose of this marketing plan is to develop an understanding about how PEPSI is marketed and distributed in the market (Product, Price, Promotion and Distribution). In this project different analysis are performed such as, Companyimage, mission statement, goals & objectives, core business areas, SWOTAnalysis, Industry Analysis, Marketing Program, target markets, MarketingStrategy, Marketing Environment, Point of Differences& Positioning At the end it was discussed that what are the core marketing strategies that make PEPSI the more powerful brand.

Company HistoryPepsiCo Inc. is an American multinational food and beverage corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which includes an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001—which added the Gatorade brand to its portfolio.

As of January 22, 2012 PepsiCo's product lines generated retail sales of more than $1 billion each, and the company's products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food and beverage business in the world. Within North America, PepsiCo is ranked (by net revenue) as the largest food and beverage business.

Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the company employed approximately 274,000 people worldwide as of 2013. The company's beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions. PepsiCo is a SIC 2080 (beverage) company.

Headquartered in Purchase, New York, with research and development headquarters in Valhalla, New York, PepsiCo's Chairman and CEO is Indra Nooyi. The board of directors is composed of eleven outside directors as of 2010, including Ray Lee Hunt, Shona Brown, Victor Dzau, Arthur C. Martinez, Sharon Percy Rockefeller, Daniel Vasella,Dina Dublon, Ian M. Cook, Alberto Ibargüen, James J. Schiro and Lloyd G. Trotter. Former top executives at PepsiCo include Steven Reinemund, Roger Enrico, D. Wayne Calloway, John Sculley, Michael H. Jordan, Donald M. Kendall, Christopher A. Sinclair and Alfred Steele.

On October 1, 2006, former Chief Financial Officer and President Indra

Nooyi replaced Steve Reinemund as Chief Executive Officer. Nooyi remained as the

corporation's president, and became Chairman of the Board in May 2007, later (in 2010)

being named No.1 on Fortune's list of the "50 Most Powerful Women" and No.6 on Forbes'

list of the "World's 100 Most Powerful Women". PepsiCo received a 100 percent rating on

the Corporate Equality Index released by the LGBT-advocate group Human Rights

Campaign starting in 2004, the third year of the report.

Company background

Name PepsiCo Inc.

Industries served Beverages, Food

Geographic areas served Worldwide

Headquarters U.S.

Current CEO Indra Nooyi

Revenue $ 65.492 billion (2012)

Profit $ 6.178 billion (2012)

Employees 297,000

Main Competitors

The Coca-Cola Company, Dr Pepper Snapple Group, Inc.,

Mondelez International, Inc., Hansen Natural Corporation,

National Beverage Corp., Kraft Foods Inc., The Kellogg

Company, ConAgra Foods, Inc., Nestlé S.A. and others.

PepsiCo is a world leader in convenient snacks, foods and beverages.

Industry Analysis of the Beverages Market

Soft drinks can be divided into carbonated and non-carbonated drinks. Cola, lemon and oranges

are carbonated drinks category. The carbonated soft drink market has been challenged by a

health consciousness movement within American consumers. Health consciousness is a very

strong growing trend in America, and has created an organic movement within the drink and

food industries. Within the last five years ending in 2006, the soft drink market in the United

States has experienced 0.0% growth due to this factor.

Since 1975 the overall growth rate of soft drink market has been slowing. (Figure_1) As this

provides a constraint on new market opportunities, it does not constrict maintaining a similar

level of revenue or slightly improving it. As the current consumer market continues to age, it is

expected there exists a certain level of retention to Pepsi consumption until a specific age when

it is recommended by a doctor not to consume a soft drink. Given Pepsi’s position in terms of

product placement within demographics, it holds the youth market when compared with Coke.

As growth slows, the youth markets must continually be targeted to maintain the consumption

level of Pepsi as new consumers enter the market of soft drink consumption, and other age out

of it. This strategy will over a long period of time prove to gain market share of domestic soft

drink consumption over Coke, while being offset by a slowing of the overall consumption.

Figure 1

1960-1970

1970-1975

1975-1980

1980-1985

1985-1990

1990-1995

1995-2000

2000-2005

2001-2006

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

U.S. Soft Drink MarketCompounded Annual Growth

The subject proposal is targeted to use a pull strategy through the distribution channels, and

is therefore focused on the end user, or consumer segment of the market. Notwithstanding,

the industry overall (primarily Pepsi and Coke as outlined herein below) does not only sell

directly to consumers. A very prevalent distribution channel is through licensed bottlers and

restaurant chains. A very strong business to business transactional distribution channel

exists in the soft drink industry, and in fact 22.6% of all soft drink volumes are sold in a syrup

for fountain soda. This is 100% business to business within the scope of these transactions.

The remaining 77.4% of packaged soft drink volume comprises primarily of business to

business transactions to retailer and bottling companies. (Figure_2) While PepsiCo

Beverages North America does not directly sell to consumers primarily, the subject proposal

will stimulate demand for the product at the end user level, and therefore result in more

business to business sales in order to meet that demand.

Figure 2

PepsiCo Inc. and Coke-cola Co. have dominated the

carbonated soft drink industry in North America since

they first entered this market. They continue to compete

with each other for market share for centuries. Therefore,

some experts conclude that the soft drink market is an

oligopoly or even a duopoly between Pepsi and Coke.5

By the year of 2006, PepsiCo has the leading share

(26%) of U.S. liquid refreshment beverage market,

followed by Coca-Cola which has taken 23% of market share as indicated in the left chart.

Cadbury Schweppes, another big rival on the bottled soft drink shelves, obtained 10% by

acquiring key brands in the US, namely Dr. Pepper, Seven Up, and Canada Dry. Throughout

2012, soft drinks in Malaysia continued to experience healthy growth in terms of value and

volume sales. The country’s climate contributes heavily to the strong demand for soft drinks

as the constant hot weather leads to higher consumption of these drinks for the purpose of

quenching thirst. Soft drinks, such as carbonates and RTD tea, are also purchased during

festive seasons and are served to guests. Lastly, soft drinks, such as carbonates, RTD tea

and Asian specialty drinks, are also sold across major on-trade channels, including mamak

stalls, hawker centers and food courts. In line with the growing health consciousness in the

country, non-carbonate soft drinks perceived as “healthy”, such as fruit/vegetable juice and

RTD tea, are being embraced by consumers over carbonates, including Coca-Cola and

Sprite. Unfrozen nectars are available in many varieties, some even with a super fruit

content or no added sugar. Hence, consumers often perceive these to be a healthier choice

compared to carbonates, which often contain a lot of sugar. Thus, in 2012 consumers began

slowly switching to non-carbonated soft drinks, including RTD tea as well as no added sugar

fruit/vegetable juice products. F&N Beverages maintained its leading position within soft

drinks during 2012 supported by the strong performance of its brands in Malaysia, such as

100 Plus Isotonic drinks, F&N Fun Flavours carbonated drinks, Sunkist fruit/vegetable juice,

as well as Seasons Ice Lemon Tea. Moreover, its consistent marketing and promotional

activities also helped the company to establish a significant level of brand awareness. For

instance, the 100 Plus brand was the sponsor of the Ipoh Star Walk sporting event

organized in Malaysia during 2012, where free 100 Plus drinks were given out to participants

throughout the event. Modern distribution channels, such as supermarkets, hypermarkets,

forecourt retailers and convenience stores, combined, dominated sales of soft drinks in

2012. A large number of supermarkets and hypermarkets, such as Giant, Tesco and

Carrefour, organized promotional campaigns for soft drinks, particularly carbonates, which

helped to attract a large number of customers. Moreover, smaller PET bottles, cans as well

as Tetra Pak packaging demonstrated a stronger sales performance via smaller distribution

channels, such as convenience stores and forecourt retailers, as consumers often purchase

a soft drink in bottles or cans from these outlets for convenience purposes.

SWOT analysis

Strengths Weaknesses

Branding and packaging

Appealing to young generation

Superior Taste (in Blind Tests)

Many distributions

Hard to enter markets occupied by Coca-Cola

Lack of novelty in advertising

Opportunities Threats

Global markets

Additional Youth Consumers entering the market

Health Conscious Consumer Trends

More substitutes

“Manifesting brand essence through packaging is powerful at retail,” declares Ron Pence,

Pepsi Senior Marketing Manager for packaging innovation. Youth and vitality is the main

idea that the Pepsi brand tries to express, and the bottle design helps the brand associate

with teens at the age between 12 to 18 year old. Pepsi restyles its cans with a series of 35

new designs and different themes such as car culture, sport or fashion. On Pepsi website,

each theme has its own video clips which can be downloaded for free and other features to

attract consumers with the purpose of representing the “fun, optimistic and youthful spirit “of

Pepsi. The natural tendency of young generation is to rival with old generations. Pepsi also

use “music, which was traditional weapon of teenager to show their rebellion approach”.

Besides, a blind test conducted by Pepsi was performed in shopping malls, grocery stores

and other public locations, in which consumers were asked to pick the soft drink they liked

better, without knowing whether the cola they tasted was Coke or Pepsi. As results came in,

57% of testers chose Pepsi and only 43% chose Coke. It became apparent that Pepsi tastes

better than Coke. In addition, Pepsi products are distributed to many outlets. For example,

supermarkets where Pepsi buys large shelf area and display areas so the customer can find

them easier, Convenience stores, gas stations, restaurants, movie theaters and almost and

other conceivable spot.

Pepsi is now sold in more than 160 countries around the globe, but it still has a weakness in

the international beverage market because it entered later into this arena than Coke. Pepsi

has tried to enter this market by trying to do in three years what took Coke 50 years to do.

Nevertheless, Pepsi has to spend years “to mature simply due to Coke’s dominance in the

international market and the strong ties that Coke has developed with these markets and

their governments.” Additionally, when marketing its products, Pepsi utilize celebrity

endorsement mostly which bored some consumers due to lack of novelty. Conversely, the

success of fresh and creative advertise has consistently helped Coco-Cola attract and retain

customers.

The world is becoming a smaller place with investors thinking in terms of sectors rather than

geographic boundaries. Broad global markets, like China, India, can provide lots of

opportunities for Pepsi. We may conclude from the tables on the right that in 2004, 63%

PepsiCo’s profits come from

the United States 8, and in the

same year, the U.S. holds

30.90% of the global market

share under Europe (showed in

the table below), which means

Pepsi still has opportunities to

compete globally. Moreover,

as Pepsi targets young

generation, additional youth

consumers enter the market

every year, which provides

Pepsi adequate consumer

base. For these decades,

changing societal concerns,

attitudes, and lifestyles become important trends that force the soft drink industry’s business

environment to change. Growing health concerns for caffeine and sugar consumption

threatens the carbonated industry. The large amounts of sugar, fat, and acid contained in

cola will lead to heart disease, vascular diseases, osteoporosis or tooth decay. On the other

hand, many other companies have tried to enter the carbonated industry, but they face high

barriers, such as lawsuits and tough competition. Some of these companies end with

searching for entering the noncarbonated soft drink industry for growth. Consequently, some

consumers will turn to noncarbonated soft drink, such as bottled water, teas, instead of

soda.

Environmental Scan of today's carbonated beverage marketplace

A quick glance at today’s beverage marketplace indicates an increasing amount of beverage

alternatives in the market. As such, these beverage companies must understand the various

factors that can help them succeed or fail. For instance, the increased awareness of the

importance of health has significant influence on soft drink industry. Since most soft

beverages comprises of unhealthy ingredients including High Fructose Corn Syrup, the

beverage industry faces an incredible threat to their reputation and sales. Therefore,

developing consumer-preferred products that can become an integral element in consumers’

daily lives has become an essential issue for beverage industry.

Possible environmental factors are as follows:

Social environment

In 2004, 28 percent of all beverages consumed in the U.S. were carbonated soft

drinks. In the United States, 450 different types are sold and more than 2.5 million

vending machines dispense them around the clock, including in elementary and

high schools.

As consumers focus more on health and nutritional benefits of food items, it has

sparked a key new driver in trends throughout the beverage industry. The result is

the decrease in sales of carbonated beverages.

Competitive environment

Monopolistic competition: PepsiCo., The Coca-Cola Company, Cadbury Schweppes

The entire beverage industry, including but not limited to bottled water, juice, other

carbonated beverages, and ready-to-drink tea.

Recent growth and demand of sports and energy drinks.

Regulatory environment

In response to weight gaining and health concerns, the nation’s largest beverage

makers -- including Cadbury Schweppes, PepsiCo. and The Coca-Cola Company--

agreed in May 2006 to halt nearly all soda sales in public schools. Beginning in 2009,

elementary and middle schools will sell only water and juice (with no added

sweeteners), plus fat-free and low-fat milk. High schools will sell water, juice, sports

drinks and diet soda. Diet sodas use artificial sweeteners, which add little or no

calories, though some, such as aspartame, have been embroiled in controversy for

years over their questionable health benefits and even possible links to cancer.

Obviously, Pepsi is facing not only the transition of customer perception but also the

regulation stress. Besides, it always has it big and powerful competitor, The Coca-Cola

Company. Under this circumstance, strategy and innovation become the top issue of Pepsi.

Competitor Analysis

The table below displays the various brands between PepsiCo. and The Coca-Cola

Company. It appears that for every product on the market from one company, the other

company has an similar product to match it. This demonstrates the intense competitive

nature of both companies to keep up or outwit the competition.

Differential Advantage

The Coca-Cola Company has the distinct advantage of being the most recognized brand in

the world. It is considered the classic beverage in the United States as well as in other

countries. In fact, when Coca-Cola decided to change its formula dubbed “New Coke” in

response to Pepsi’s emergence, public outraged roared throughout the nation. Fearing

mass boycott, the original Coke formula was quickly reinstated to satisfy the demands of the

public under the name “Coca-Cola Classic”.

Revered as the classic beverage, Coke enjoys the stature of being the market leader. Coke

appeals to a wide global audience in terms of demographics and popularity. One side effect

of being the “classic” choice leads to a larger share of older consumers.

PepsiCo. appeals to younger consumers with a more sweeter taste compared to Coke.

Pepsi presents itself as the hip and cool alternative choice over Coke. This is evident in the

deep blue hues and patterns that Pepsi takes advantage of in its marketing campaigns.

Pepsi’s younger image is also aided by celebrities endorsement touted by the teen market

including Britney Spears, ‘NSync, along with popular rappers.

Self-proclaimed as “The Choice of a New Generation”, Pepsi devised television commercials

of younger consumers participating in blind taste tests. The participants frequently preferred

Pepsi over Coke. Eventually, PepsiCo. began hiring popular celebrities to promote their

products.

Resource Analysis

The Coca-Cola Company

The Coca-Cola Company’s flagship product, Coke, is sold in stores, restaurants and vending

machines in more than 200 countries. Originally developed as a medicine in the late 19th

century by John Pemberton, it has evolved into a dominating figure in the soft drink market

throughout the 20th century.

The Coca-Cola Company licenses worldwide bottlers who hold territorially exclusive

contracts with the company. Cola concentrate is sold to these bottlers who them produce

the finished cola in cans and glass bottles while using filtered water and various sweeteners.

The finished product is then sold, distributed, and merchandised to retail stores and vending

machines. Coca-Cola Enterprises is currently the single largest Coca-Cola bottler in North

America, Australia, Asia, and Europe. In addition to licensing to bottlers, the company sells

the concentrate to major restaurants and food service distributors for use in fountain drinks.

The Coca-Cola Company envision a world in which…They improve the lives in every

community that they touch. They replenish each drop of water that they use. Their packaging

is no longer seen as waste, but as a valuable resource for future use. Workplace rights are

protected and all people are respected. They work in partnership with others to provide good

jobs, world class quality beverages and a healthy environment.

PepsiCo

The Pepsi Cola Company started in 1898 in Purchase, New York. It became known as

PepsiCo when it merged with Frito Lay in 1965. PepsiCo owned Kentucky Fried Chicken,

Pizza Hut, and Taco Bell up until 1997 when they were spun off into Tricon Global

Restaurants – which eventually became Yum! Brands, Inc. In 1998 and 2001, PepsiCo

purchased Tropicana and Quaker Oats, respectively.

PepsiCo, a global American beverage and snack company, manufactures, markets, and

sells a variety of carbonated and non-carbonated beverages, as well as salty, sweet and

grain-based snacks, and other foods. PepsiCo also manufactures Quaker Oats, Gatorade,

Frito-Lay, SoBe, and Tropicana.(Figure_3) In several ways, PepsiCo differs from its

competitor, The Coca-Cola Company, having almost three times as many employees. The

Pepsi Bottling Group was formed for distribution and bottling.

Figure 3

Mission Statement:

We aspire to make PepsiCo the world’s premier consumer products company, focused on

convenient foods and beverages. We seek to produce healthy financial rewards to investors

as we provide opportunities for growth and enrichment to our employees, our business

partners and the communities in which we operate. And in everything we do, we strive to act

with honesty, openness, fairness and integrity.

Values:

Sustained Growth is fundamental to motivating and measuring our success. Our quest for

sustained growth stimulates innovation, places a value on results, and helps us understand

whether actions today will contribute to our future. It is about growth of people and company

performance. It prioritizes making a difference and getting things done.

Empowered People means we have the freedom to act and think in ways that we feel will get

the job done, while being consistent with the processes that ensure proper governance and

being mindful of the rest of the company’s needs.

Responsibility and Trust form the foundation for healthy growth. It’s about earning the

confidence that other people place in us as individuals and as a company. Our responsibility

means we take personal and corporate ownership for all we do, to be good stewards of the

resources entrusted to us. We build trust between ourselves and others by walking the talk

and being committed to succeeding together.

Based on the pie chart above, PepsiCo and Coca-Cola have roughly the same market share

in the United States.

Finacial Analysis Brief Overview

Overall, PepsiCo trumps The Coca-Cola Company in many financial categories – largly in

part from PepsiCo’s wide array of products throughout 4 divisions:

PepsiCo International

Frito-Lay North America

PepsiCo Beverages North America

Quaker Foods North America

Egg Diagram

Analysis of the Target Market Consumers

Who are they? Teenagers between age of 12 and 18 in U.S.

What do they buy? Teens want to buy something real, something from “corporations that remind them of themselves”. They don’t want things that they are thought to like. They something that pushes the boundary, different than what they had before.

When do they buy it? When teens find something they can identify with and have the need that must be satisfied immediately.

How do they choose? They quickly dismiss the products that look like some 45-year-old guy trying to sell them something. They easily recognize the

old product that was yesterday’s news. They can tell what’s being “fake” and what’s being “real”

Why they prefer a product? They pick a product because they believe that product can express themselves. They can relate to someone like themselves through this product.

How they respond to a marketing

program?

They respond to something catchy. For example those ads in magazine are brightly colorful, the flashy graphics suggest that teens respond well to that type of ad campaign; in cyberspace they respond to a space created uniquely for them. They also respond well to products on sales.

The target consumer market to stimulate demand within is the young teen market

between the ages 12 through 18 years old, geographically located within the United States.

This segment is compiled of the “Tween” market and the older high school teenagers.

“Tweens develop sophisticated tastes beyond their years, with boys gravitating toward

electronic, Internet, and video games, and girls preferring fashion and social interaction

components” (Abernathy, 2004). With the technology age with computers and increasing

demanding academic environment, tweens and teens have less disposable time, and

therefore product advertising attention is often tuned out. “Tweens spend their own money

today: on average, $9 a week. Some experts estimate tweens have close to $80 a week in

disposable income available to them… Overall, the tween market is valued at $43 billion”

(Abernathy, 2004). Beyond the tween market, the teenage high school student will

sometimes hold a part time job, and have more independent tendencies. All in all, the 2000

U.S. Census estimates the U.S. population between the ages of 10 through 19 years old to

be approximately 40.6 million individuals.

The goal of researching the target consumer is to accurately pinpoint the consumer

behavior in regards to our product. According to our finding, these teens and “Tweens” are

constantly searching for identities at their age. The most effective way of appealing our

product to them is to find a common ground. For example, there are various reasons why

teens and “Tweens” idolize certain celebrity. One of them is that they can find bit and pieces

of themselves in their celebrity idol. After all, who doesn’t like to see himself/herself being a

celebrity? So no matter what the product is, as long as it possesses characteristic of the

identity the teens and “Tweens” are searching for, they will make the purchase. The teens

and “Tweens” are still very young. They have very vivid imagination and are highly visual.

Therefore they are attracted to colorful pictures in the magazines. It is usual for them to just

look at the pretty pictures in the magazine without reading the articles that supplement

pictures.

According to the finding, these target consumers prefer products that are “real”. By

“real” they mean the manufacture genuinely create this product specifically for them, at least

it should appears to be. Since Pepsi Cola is basically for everyone, making it appears to be

special to teens and “tweens” are very important. These consumers prefer individuality. Such

preference is reflected in the finding that they are constantly in search for a product that

expresses themselves. The last thing these consumers wants is pressure or stereotype that

sometimes appears on the commercial and magazine ads.

Strategic Action Plan

The strategic alliance with Walt Disney will initially consist of (i) concert support of and

promotions at several of Hannah Montana’s concerts throughout the United States, (ii) Pepsi

promotion via seamless advertisement within the Hannah Montana aired shows by having

characters refresh themselves with Pepsi and also have Pepsi signs in the background, and

(iii) a sparingly aired Pepsi commercial endorsed by Hannah Montana to be promoted via

the ABC channel network (a Disney owned network). A future alliance holds the possibility

of future benefits through Disney media networks and consumption at theme parks and

resorts. The concert support will come with signs at the live shows and events, Pepsi sales

at the concerts, and Pepsi commercial promotions on the concert screens at intermission.

There will also be a special promotional event of Pepsi Challenge tasting at the Pepsi center,

which was previously near sell out for Hannah Montana. The seamless advertisement on

the Hannah Montana show will consist of the characters drinking Pepsi as refreshment in a

natural environment along with Pepsi signs in the background of the sets. This will continue

for two (2) years during the strategic partnership, and be maintained on a very subtle level in

the productions. Twice a year over the two (2) year period ABC (A Disney owned network)

will air a Pepsi commercial of a music video of Hannah Montana singing the Pepsi Theme

song. As part of the strategic alliance, Disney is giving a low market rate for airing over the

network. ABC has been topping the charts with hit series and has been expanding viewer

base considerably over the past decade. The Denver Post summarized the market impact

this pop idol holds as:

“When an episode of "Hannah Montana" followed the debut of "High School Musical 2" this fall, the movie sequel got all the buzz, but the episode of "Hannah Montana" averaged 10.7 million viewers - the highest ratings for a regular series in the history of basic cable. The Disney Channel's 90 million subscribers can watch "Hannah Montana" daily, sometimes as often as seven times a day. An average 2.2 million viewers see each episode. The show also airs weekly on ABC's Saturday morning block, and is licensed in 177 countries. Of course "HM" is available around the clock as streaming video on computers and on iTunes. Compared to the ratings of all shows on U.S. television, "Hannah Montana" is second only to "American Idol" among kids 6-11 and tweens” (Ostrow, 2007).

Utilizing Walt Disney’s ‘tween’ star Hannah Montana for endorsement will provide

awareness and positive associations with the Pepsi brand of carbonated soft drink. This pop

star idle will build significant brand equity within the demographics of young females

between the applicable ages of 12 through 15 years old. This will predictably improve

vending machine sales at middle schools and high schools, as well as sales at grocery

stores for their respective homes. It will also build repertoire with the respective mothers

who also attend the concerts and watch the shows. The mothers of the daughters are in fact

the ultimate purchasers (and also partially the ultimate consumers in some cases) of the

product, while their daughters are the influencers and ultimate consumers. The daughters of

families will typically have a greater influence over the parents as purchasers in American

families more so than comparable aged boys. This is primarily due to the value system of

the parents to typically spend more attention and money on the daughters of the family, as

young females are seen to need more care. This depicts why Hannah Montana is a highly

effective endorsement for Pepsi within this demographic. This strategic relationship with

Walt Disney will provide the future potential for a stronger partnership with Walt Disney,

thereby opening the possibility of Pepsi consumption within the theme parks and resorts,

while opening a powerful media network to younger audiences for future promotion

channels.

Kanye West will build brand equity in the male teen market between the applicable

ages of 14 through 18 years old. A male target of the upper teen years is deemed more

effective, due to males in their teens practicing habits of independence and having

allowances for spending. His aired TV commercial will be on ABC similar to Hannah

Montana, however it will be aired three times a year over the two (2) year period. The

commercial content will be his version of a Pepsi theme.

References

Overview: Company History (2007). PepsiCo Corporate Website. Retrieved October 28, 2007 from http://www.pepsico.com/PEP_Company/Overview/index.cfm.

Ostrow, Joanne (Oct. 19, 2007). ‘Disney Wields Its Marketing Magic.’ Denver Post. Retrieved October 29, 2007 from http://www.commercialfreechildhood.org/news/disneyweilds.htm.

Abernathy, R.W. (November, 2004). Tween Market 101. TD Monthly. Retrieved October 29, 2007 from http://www.toydirectory.com/monthly/article.asp?id=918.

The Beverage Marketing Corporation (August, 2007). 2007 Carbonated Soft Drinks in the U.S. Retrieved October 29, 2007 from http://www.beveragemarketing.com/reportcatalog3f.html.

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