Professional Documents
Culture Documents
Shareholders
Corporate Citizenship
PepsiCo Headquarters
“Convenience at a Pop”
S.T.P
SEGMENTATION
TARGETING
After segmenting the market we are targeting the
following segments:
POSITIONING
PRICE
Having the 1st mover advantage, PepsiCo has the
complete say in determining its own price. PepsiCo’s
pricing has always been competitive and with the
launch of 7up Pop, it aims at capturing a much larger
share in the market.
PLACE
7up Pop will be launched in Delhi, Mumbai, Kolkata,
Chennai, Bangalore, Ahmedabad and Hyderabad
initially. These cities have been chosen for the launch
as our surveys have shown that people in these cities
are looking for a drink with a difference. We will be
moving towards semi-urban and rural market phasing
our activities in the basis of initial and subsequent
consumer response.
PROMOTION & ADVERTISEMENT
Marketing Objective:
“Massification” -
The task ahead is to concentrate on making the cake
bigger rather than fighting for a bigger piece of the
existing cake.
TELEVISION:
We would put our advertisements on all major
television channels like, Sony T.V, MTV, Zoom and
ESPN-STAR. The reason we have chosen these
particular channels to broadcast our ads is because
they enjoy the highest viewer-ship in their respective
domains. Media like Internet TV, Mobile TV etc. will
also be prominent advertising avenues.
BILLBOARDS:
We are planning to put up advertisements on
billboards on busy streets, shopping malls and
highways so that our message can be delivered to
pedestrians and traveling public. Advertisements on
billboards would be electronic and would be similar to
videos. This will attract the attention of numerous
people and have a wider appeal.
LAUNCH PARTY:
7up Pop would hold a launch party to celebrate its
arrival, where the top celebrities and the who’s who of
the city will be invited to celebrate the arrival of the
lifestyle drink. There will be press coverage of the
party.
Internet 2
With the emergence of the sequel to the Internet,
communication and advertising has undergone a
complete face-lift. Internet 2 has a larger user network
and higher bandwidth capabilities than the previous
version of the Internet, which makes it the most
accessible and preferred medium for the promotion of
7up Pop.
5 M’S OF ADVERTISING
SETTING UP THE SYSTEM
(For marketing)
Identifying vital competitive
information
Collecting the data
Evaluating and analyzing
Disseminating
& responding
MARKETING STRATEGY
PLANNING AND COMMUNICATION PROCESS
Stage 1
Market research:
Stage 2
A complete attacking strategy:
Stage 3
Maturity stage:
Once the brand image is created, the advertising and
the promotional campaigns will be slowed down
according to the market needs. Sudden reminders
would appear and seasonal push strategy will be
followed.
FRONTAL ATTACK
In pure frontal attack, the attacker matches its
opponent’s product, advertising, prices and
distribution. Hence in the initial stage we used the
Frontal Attack strategy by standing in front of the
completion and ready to face it.
FLANK ATTACK
The competitor’s weak points become our targets.
Hence by targeting the weak points of the competitor
we would grab a huge share.
ENCIRCLEMENT ATTACK
It involves launching a grand offensive on several
fronts. This would not be followed until forced by the
competition.
BYPASS ATTACK
By bypassing the enemy and attacking easier markets
to broaden our service. This would be followed only
after a reasonable amount of time keeping in mind
competitor’s retaliation.
GUERRILLA WARFARE
By offering special promotional offers, intense
advertising blitzes and legally studying all competitor’s
move. This will be taken once I.Q establishes a
significant space in the market.
ATTACKING STRATEGIES
BYPASS ATTACK
FLANK ATTACK
FRONTAL
ATTACK COMPETITORS
7UP POP
ENCIRCLEMENT
ATTACK
GUERRILLA ATTACK
SWOT Analysis
Strengths:
1. Brand Equity
7up has a strong brand presence in India. It is a
premier soft drink brand reaching out to large section
of society. 7up has always been associated with
youthful vibrancy and a positive outlook toward life,
which has led to its surge in the Indian market.
3. Portability
New 7up Pop is an ultra-light capsule which can be
carried anywhere with ease. Its size is of great
advantage to the consumer as it requires minimal
storage space and is highly portable.
4. Convenience
We at 7up, offer every consumer the opportunity of
obtaining his own glass of 7up Pop at his convenience.
Easy to use, 7up Pop has a extended shelf life which
helps it to sustain its quality over long periods of time.
Therefore, 7up is instant, lasting and highly
convenient.
5. Pioneer product
7up Pop is a revolution in the soft drink market; it
solves the problems of portability, storage and offers
greater convenience to the consumer. We are
innovators who believe that it is time to give the
consumers what they are looking for.
Weaknesses:
1. Acceptance
We are still wary of the acceptance of our product. It is
however essential for us to overcome this weakness by
providing the consumer with adequate information
and by employing an effective marketing strategy.
2. Usage
Incorrect usage of the product could lead to changes in
the concentration level. This makes it important for us
to explain usage procedures and ensure proper
communication with the end consumer through proper
packaging.
Opportunities:
1. First mover advantage
We are innovators, heralding a revolution that is
slowly changing the face of beverages worldwide. We
have given rise to a complete upheaval of existing
trends. Hence, we have a first mover advantage in our
field, providing consumers with unadulterated
refreshment in a form beyond what one could barely
imagine a few years ago.
2. Untapped market
7up Pop will cater to a larger section of society owing
to its strong distribution network. We will be able to
capitalize on existing as well as untapped markets
because our product is the complete retail solution;
convenient to store and easily distributable.
Threats:
2. Further innovations
Being innovators ourselves, we cannot ignore the
possibility of further innovations that may eat into our
market share.
FINANCIALS
PepsiCo has always followed aggressive promotion
strategies to capture the market. Having an excellent
financial backup the costs of advertising and other
marketing activities is reported as selling, general and
administrative expenses. Advertising expenses were
$1.7 billion in 2005, $1.6 billion in 2004 and $1.5
billion in 2003.