Pepsi Twist 2p4873

Marketing Plan Of Pepsi & Failure of Pepsi Twist Group : Kiran Asif Aasia Siraj Hajra Asad Syed Talha Khalid Fawad Khan Shahid Hussain

HISTORY OF PEPSI  The brand was trademarked on June 16, 1903, though the drink was

first made on August 28, 1898, by pharmacist Caleb Bradham.  PepsiCo divisions operate in three major US and international businesses: beverages, snack foods, and restaurants.

MISSION STATEMENT: Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. VISION STATEMENT:

Our vision is to put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

MARKETING ENVIRONMENT MACRO: GEOGRAPHIC VARIABLE:

World Region/ Country: Asia Country Region: Pakistan City: Karachi, Lahore, Islamabad, Multan, Faisalabad, Shakarganj etc. Density: Urban & Rural Climate: Hot

DEMOGRAPHIC: Age: 15+ Gender: Male, Female Family Life cycle: Young, Single, Married with children Income: Deprived (less than Rs. 90000), Aspirers (Rs. 90000 to Rs. 200000) Occupation: Students, Professional & Technical, Managers, Officials, Households, Supervisors, Clerical Education: Literate, some colleges’/HSC, Graduate, Postgraduate Religion: Muslim, Hindu, Christian, Sikh Nationality: Pakistani

PSYCOGRAPHIC: Social Class: Lower Lower, Upper Lower, Middle Class, Working Class, Upper Middle. Lower Uppers, Upper Uppers Life Style: Survivors, Achievers, Strivers Personality: Ambitious, Gregarious, Authoritarian

BEHAVIORAL: Occasion: Regular Occasion, Holiday, Eid ul FITAR, Eid ul AZHA, Seasonal,parties Benefits: Convenience, Economy, Quality status: Ex-, Regular , Non-s Rate: Light , Medium Loyalty Status: None, Medium Readiness stage: Unaware Attitude toward product: Indifferent, Negative

ECONOMIC ENVIRONMENT OF PAKISTAN GDP Growth Rate: 2% Inflation Rate: 15.48% Unemployment Rate: 5.5% Pakistan’s economy is considered as SUBSISTENCE ECONOMY

Five Economic Classes

TECNOLOGICAL ENVIRONMENT • PROCESSES USED

• THE MANUFACTURING PROCES • 1. CLARIFYING the water • 2. FILTERING, STERILIZING & DECHLORINATING the water • 3. MIXING the ingredients • 4. CARBONATING the beverage • 5. Filling and packaging

PSYCHOGRAPHIC SEGMENTATION PEPSI being a soft drink manufacturing company divides buyers based on their tastes. Pepsi make their marketing strategies and segment their markets by consumers’ tastes and lifestyles.

Pepsi products for different segments: Pepsi uses the sugar mixed soft drink lovers group to sell its PEPSI SOFT DRINK. Pepsi uses the diet conscious group to sell its PEPSI DIET. Pepsi uses non sugar s to sell its PEPSI MAX. Pepsi uses the lemon taste lovers group to sell its PEPSI TWIST. Pepsi uses the orange taste lovers group to sell its MIRINDA. Pepsi uses the adventurous people of our culture to sell its MOUNTAIN DEW. Pepsi uses the extra strong taste lovers group to sell its 7UP.

MICRO ENVIRONMENT Suppliers:

COMPETITORS:       

COCA COLA NESTLE STAR BUCKS LACNOR MITCHELLES PAKOLA SHEZAN

PERCEPETUAL MAPING

BCG MATRIX

PEPSI TWIST HISTORY:  Pepsi Twist was introduced in the US in the summer of 2000.  Pepsi had previously produced a lemon-flavored diet cola in the 1970s and 1980s in the US called Pepsi Light.  Pepsi launched Pepsi A-ha, with a lemon flavor in India, in 2002.  Pepsi Twist was marketed in Pakistan in 2006. The product failed to capture the market, but it is still available in some supermarkets.

TARGET MARKET • Pepsi customers are mostly young group. • Age: between the ages of 14 to 35 • Also target at School, Colleges, Universities, Homes, Restaurant, Hotel and Stores.

MARKET SHARE Company

Pepsi Cola

Coca Cola

International Market Share

30%

70%

Pakistan’s Market Share

65

35

No. of Countries

160

200

Variety of Product

Large

Large

Target Market

Youth

General

Strategy

Focus Diff.

Differentiation

Diversification

Related

Related

MARKET SAMPLE SIZE • • • -

Main Market 45 % of Total Sample Side Market 30 % of Total Sample Village Market 25 % of Total Sample

PEPSI TWIST MARKET POTENTIAL Q=n*a Taking; n = 1 million a = 25 liters per annum Q = 1 million * 25 liters per annum Q = 25000000 units

PEPSI TWIST SALES POTENTIAL n * a * price of the PEPSI TWIST Taking; n = 1 million a = 25 liters per annum Price = Rs. 50 per 1.5 liter Sales potential = 1 million * 25 liters per annum * Rs.50 Sales potential = Rs. 1250000000

MRKETING MIX (4PS) 1. PRODUCT Product Mix of Pepsi

1. 2. 3. 4. 5 6. 7. 8. 9. 10.

Soft Drinks Water Carbonated Soft Drinks Energy Drinks Ready to Drink Teas Juice and Juice Drinks Dairy-based Drinks Ready to Drink Coffees Sports Drinks Snacks

Product line of Soft Cold Drink 

Pepsi-Cola



Caffeine Free Pepsi



Diet Pepsi



Caffeine Free Diet Pepsi



Pepsi Twist (regular & diet)



Slice



Dole juices and juice drinks (License)



Aquafina purified drinking water



Mirinda



7UP (International)



Teem



Pepsi Light



Fiesta



Mandarin (License)

PRODUCT DEPTH The variants that are offered by Pepsi in of size and quantity:

1. 175 ml Mini Bottle 2. 250 ml Regular Bottle 3. 300 ml Tin 4. 1000 ml Regular Liter Bottle 5. 1500 ml Disposable Bottle

BRANDING: Consumer view a brand name as an important part of the product and branding can add value to the product. A name, term, sign, symbol or design or a combination of these intended to identify the goods and services of one seller or group of seller and to differentiate them from their competitors.

RODUCT LIFE CYCLE

LEVELS OF PRODUCT

 Core Product i.e. the benefit of the product – Pepsi Twist’sdifferent taste.  Actual Product – Pepsi Twist  Augmented Product – lots of value added for which you may or may not pay a .  Pepsi Twist – Benefits of citrus

2. PRICING FINAL LIST PRICE: The list price of the Pepsi twist was the same as regular Pepsi price. There was no such difference.

RETAILER %: the retailer’s percentage was 7 to 8 %. Usually the retailers are a given the discount in case of bulk purchasing of crates. For e.g. If they purchase 5 crates, then half crate is given free.

Prices of different bottles Regular bottle = Rs.20 Non Returnable/disposable= Liter Bottle= Rs 35 1.5 Liter Bottle= Rs 75 2.25 Liter Bottle= Rs 85

PRICING STRATEGIES 1. Competition-based pricing approach 2. Promotional Pricing Policy 3. Market Penetration Pricing Policy

DISCOUNTS: Pepsi Cola offers various discounts to those retailers who have the maximum sales of Pepsi products on daily, monthly and on seasonal basis

INCENTIVES: Incentive to Retailers : Pepsi Cola provide various incentives to retailers. These incentives are in the shape of: Deep Freezers Return Tickets Free Transportation Services. Incentive to Dealers The best dealer of the year is awarded with a brand new Suzuki Pickup. The second best is awarded with Motor Cycle. The third best is awarded with Return Ticket to Middle East.

Credit: There is no credit system in the beverage industry. Every single bottle is sold on the cash basis. ***Total annual sale of soft drink in Pakistan 120 million cases Pepsi annual sales in Pakistan 75 million Market share of Pepsi 65%

Consumption growth 1.7 % per year

PEPSI TWIST PRICING: Though the quality of twist was best and was available too in the most affordable price as the other Pepsi was , its non availability for the general public conveniently was one of the many different reasons for its failure.

3.PLACE CHANNELS OF DISTRIBUTION: The Pepsi uses the following two channels for the distribution of their products. 1. Indirect Distribution Indirect distribution involves agency holders e.g. Riaz Bottlers Pvt. Ltd. Lahore franchise has divided its region i.e. Lahore and Kasur districts in two categories. Local Zone These are 62 agencies distributing Pepsi Products (250ml STD) only around Lahore in their respective allocated sub zones. Out Station Zone 17 dealers have been appointed by the bottlers for far distant places and in out skirts of Lahore and Kasur the dealers involved in direct distribution are only authorized to sell 250 ml (STD) bottle of Pepsi, Team and Marinda.

2. Direct Distribution The factory vehicles operate on 45 direct routes in Lahore selling non-returnable bottles Litter, Pet and Can. SPECIAL POINTS

Other than these some special points are also being looked after by direct sales vehicles such hotels restaurants, public parks, big and reputed super stores etc. At Avari, Pearl continental, village, Seas magnificence etc. Pepsi Cola directly distributes the products. WHAT TYPE OF OUTLETS IT ARE AVAILABLE IN?          

AGHAS MAKRO HABIB IMTIAZ SUPER STORE NAHEEDS SUPER MARKET DAIRY SHOPS LOCAL STORES PHARMACIES HOSPITALS SCHOOLS PUBLIC PLACES

4.PROMOTION Pepsi also developed its market strategy according to the unique tastes of customers. They spent huge amounts of money to invite famous singers, stars and soccer players to promote its products. The company called this its “soccer & music” promotional strategy. Getting shelves They :get or purchase shelves in big departmental stores and display their in that shelves in order to get a clear attention from the customer. Sales promotion: Company do sponsor a lot of sports events to get their market share. ment: The company uses different stars of sport or films to promote their brands for this they uses different medium:  Print media  Electronic media  Billboards and holdings

Promotional Budget of Pepsi Pepsi spend 1.45 bn in 2009, making Pepsi co the worlds no 19 r.

SLOGANS 1981 1983 1984 1992 1993 1995 1999 2000 2002 2003 2004 2006 2010 2011 -

Pepsi's Got Your Taste For Life! Pepsi Now! Pepsi, the Choice of a New Generation Gotta Have It Be Young, Have Fun, Drink Pepsi Nothing else is a Pepsi The Joy of Cola The Joy of Pepsi Ask for more It's the cola Dare for more Ye Dil Maange More Badal Do Zamana Dunya Hai Dil Walon Ke

STRATEGY: Captive Market – means parks, cinema, canteen, institute, govt. offices, courts, etc.

ADVERTISING BUDGET:

STATISTICS OF ITS OBSELETE PRODUCT PEPSI TWIST WHAT AGE WAS INTERESTED IN USING PEPSI TWIST?

IF YOU THINK, PEPSI TWIST IS FAILED SO WAS IT DUE TO:

Usage of pepsi twist?

Satisfaction level of customers?

OPINION ABOUT DRINK?

IF PEPSI TWIST COMES AGAIN IN MARKET, I WILL USE IT?

REASONS OF FAILURE OF PEPSI TWIST:       

Actual product may be poorly designed. It may incorrectly positioned launched at wrong time Too High Price Poor Advertising Taste is not according to Customer Need An Idea may be good but company may overestimate / underestimate the market size.  Cannibalization  Was not presented at an arms length

IT WAS FAILED DUE TO    

Poor Taste (59.5 % ) Availability (26.8 %) Quality (Only 4.8 % out of 100) Due to Citrus Fanta of Coke

SUGGESTIONS FOR PEPSI TWIST SUCCESS: 

Pepsi Company should have maintained taste factor. Pepsi twist should also have some gas and strong taste whereas it was very sweet and flat.



For promotion purpose, some brand ambassador should be use for e.g. a

sports star 

Target market should have been properly selected and properly targeted.



Huge amount of advertising and promotion activities should be done.



Stalls should have been placed outside cinemas, parks, fun fairs, beaches etc.



Pepsi Company should have appointed teams to visit different schools, colleges and universities to promote the product.



Free samples should have been given to public so that they became aware and accept new brand.



Packaging should be adventurous and attractive.



Unique advertising proposition strategy should be used.



Launching time should be proper. Mistake that it was launched together with main competitors coca cola brand citrus Fanta.