40355434 imc plan pepsico india

8/6/2019 40355434 IMC Plan PepsiCo India

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PepsiCo India

PepsiCo entered India in 1989 and has grown to become the countrys largest selling food

and Beverage Company. One of the largest multinational investors in the country,

PepsiCo has established a business which aims to serve the long term dynamic needs of

consumers in India.

PepsiCo India provides direct and indirect employment to 150,000 people including

suppliers and distributors.

PepsiCo nourishes consumers with a range of products from treats to healthy eats that

deliver joy as well as nutrition and always, good taste. PepsiCo Indias expansive portfolio

includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in

addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages

such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana 100% fruit

juices, and juice based drinks Tropicana Nectars, Tropicana Twister and Slice, non-

carbonated beverage and a new innovation Nimbooz by 7Up. Local brands Lehar

Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.

PepsiCos foods company, Frito-Lay, is the leader in the branded salty snack market and

all Frito Lay products are free of trans-fat and MSG. It manufactures Lays Potato Chips,

Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and

Lehar brands and the recently launched Aliva savoury crackers. The companys high

fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the

healthful choices available to consumers. Frito Lays core products, Lays, Kurkure, Uncle

Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and

all of its products contain voluntary nutritional labeling on their packets.

The group has built an expansive beverage and foods business. To support its operations,

PepsiCo has 36 bottling plants in India, of which 13 are company owned and 23 are

franchisee owned. In addition to this, PepsiCos Frito Lay foods division has 3 state-of-

the-art plants. PepsiCos business is based on its sustainability vision of making tomorrow

better than today. PepsiCos commitment to living by this vision every day is visible in its

contribution to the country, consumers and farmers.


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Mission and Vision

PepsiCo Indias Mission

"To be the world's premier consumer products company focussed on convenience food

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 for honesty,

fairness and integrity."

PepsiCo Indias Vision

"To build Indias leading total beverage company, delighting consumers by best meeting

their everyday beverage needs, and stakeholders, by delivering performance with

purpose, through our talented people."


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Competitors Analysis

Major Competitors

CCI Communication Strategiesy Localization in communication to target rural markety Establish connect between Coke and enjoying life.

Life ho toh Aisi !! Coca Cola Enjoy

y Try to impress upon consumer mind by targeting ego ! Yaaran da Tashan !

y Advertising for all brand packs done in a balanced manner.y Intensive use of Celebrities for both on-air and off-air Campaigns.y Trying to position coke as a generic term for carbonated beverage.

Thanda matlab coca cola !!


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Market Comm. Mediums of COKEy Promotional activities.y Celebrity endorsements and brand ambassadors.y Advertisements.y Hoardings

Opportunity Analysisy Water Shortage and Health Awareness Driving Bottled Water Consumption inIndia. The Indian packaged water business is estimated at around Rs 2,500 crorewith a growth rate of close to 35 per cent. While India ranks in the top 10 largest

bottled water consumers in the world, its per capita per annum consumption of

bottled water is estimated to be five litres which is comparatively lower than the

global average of 24 litres. Today it is one of India's fastest growing industrial sectors.

Between 1999 and 2005, the Indian bottled water market grew at a compound

annual growth rate (CAGR) of 25 per cent - the highest in the world. The study,

conducted by the US-based Earth Policy Institute, says the global consumption of

bottled water has grown by 57 per cent over the past five years.

y Changing health consciousness attitude derives an opportunity for coca-cola tointroduce more of non-carbonated beverages. The market share of non carbonated

drinks is expanding at a fast pace and world leading beverage company can come

up with health drinks to tap the new segment.

y Rural Markets are still to be explored.


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The Per Capita Consumption Of Cola Beverage Products.

Figures are in Litres

The above chart shows per capita consumption of coca cola products in INDIA was

0.72 L in 1999 and 2.16 L in 2009. India has one of the lowest consumption and

shows the potential to grow. The maximum coke consuming country is MEXICO

where per capita consumption in 1999 was 102.2 L and 160L in 2009 .

Segmentation Targeting & Promotion

Segmentation

The market has being segmented by pepsi on the following grounds. PepsiCo have adopted different marketing strategy for rural and urban areas.

AgeIndia is considered to be a young country i.e. average age of Indian population is less38years. Thus targeting young generation can be abeneficial marketing strategy for soft drink companies. In fact this is the case,all the major brands like Pepsi, coca cola, and thumps up, mainly target

younger generation in India.

0.72 1.9 2.9

102.2

2.167.7

14.2

160

0

20

40

60

80

100

120

140

160

180

INDIA CHINA RUSSIA MEXICO

1998

2009


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In Europe, as average population is older than Asian countries, Coca cola targeted theolder generation of the population. Similarly in USA, Pepsi targeted the generation X(younger generation) as they comprises majority of the population and they positionedPepsi in the mind of youth that Pepsi is for the youth.

Pepsi targets the youth of India. Its campaigns generally focus on the teens and young

adults. It attempts to capture the youth of today by focusing on their personality, lifestyle

and their attitude in its advertisements.

Geographic segmentationPepsico has segmented the market on the basis of rural and urban area. As the climate of

the country is hot and dry it aims at the geographical areas where people actually require

something to quench their thirst. That is why pepsi came with chotta pepsi in rural areas

to tap the market where people want cold drink which is good as well as cost effective.

Taste and PreferencesAccording to the taste and preference of the customers pepsi came up with a product like

diet pepsi. It came up with diet pepsi in order to cater to the needs of those people who

are very health conscious.

Moreover with their nimobooz lemon drink the company has targeted the most preffered

Indian drink that is nimbu pani and has been a huge success. The company has sold more

than 50 lakhs cases of Nimbooz in just 2 years.

Behaviour segmentationIn occasions like parties, birthdays, sports and regular occasions the soft drinks are

preferred at every occasion. It is liked by each and every member of the family whether a

child or an adult or an teenager. Even if there is no occasion due to environmental factors

people do purchase pepsi.


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Psychographic segmentationy Mirinda : Girls Savy drinky Dew : For the people who darey My Can : for the trendyy Pepsi : for Youngistan.y Tropicana : heatlth conscious people.

Targeting

Pepsi targets both the rural as well as the urban segments. For urban segments the

targeting strategy is trendy cans ,fridge packs which is mostly trendy and liked by the

youngsters. The rural market is targeted with entirely different strategy altogether. They

keep price as an important decision making variable.

Positioning

Pepsi has always been brand that embodies the most prevalent youth sentiment.

Over the years as youth has evolved, so have Pepsis positioning and language.

.Pepsi prefers to position itself as the beverage choice of the New Generation,

Generation Next, or just as the Pepsi Generation.These terms adopted in Pepsisadvertising campaigns are referring to themarkets that marketers refer to as Generation

X. The Generation Xconsumer is profiled to be between the ages of 18 to 29. They have

highexpectations in life and are very mobile and active. They adopt a lifestyle of living

for today and not worrying about long-term goals. Though Pepsismain emphasis is on


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this segment but they also have a focus on the 12 to 18year old market. The rich deep

blue colouring represents eternal youthfulnessand openness.

Communication Objectives PEPSI

y To separate brand identity for each products.y Extensive reminder advertising for repeat purchase.y Use of Teaser Adv. (Sanjay Dutt & Ranbir Kapoor) to supress NOISE.y Mention the Nutritional Value of product to increase consumer awareness and

build responsible brand image.y SIS to assist /boost impulse buying: Tropicana followed this strategy quite

succesfully.

y Consumer Schemes to entice swift purchase action and also generate moreimpulse buying as consumer have become more knowledgeable and understand

value for money hence prefer to products giving a better deal with good quality

products.

PepsiCos Campaigns

Pepsiy Pepsi began with the Yehi hai Right Choice Baby campaign, which has been one of the

most memorable campaigns of the brand, featuring celebrity endorsers such as ShahRukh Khan among others. The focus, as is clearly evident, is on the product with the

youth as its target segment.

y Yeh Dil Mange More and Yeh Pyaas Hai Badi were some of the later campaigns. Thelatest campaign Yeh Hai Youngistan Meri Jaan also targets the youth.

y Yeh Dil Mange More campaign was again a great success, having balanced theemotional as well as the functional appeal of the product. Featuring Sachin Tendulkarand many other leading stars at that point of time, this was also one of the longestcampaigns carried out by Pepsi. The company however failed to maintain the trend and


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leverage it. Instead of moving on to a complete emotional appeal platform, the companydecided on a product based promotion campaign. Though there is still some amount ofemotional appeal to its campaigns, the principal focus is on the product - it being apreferred thirst quencher.

7 UPIn its early days, 7 UP inherited the global Fido-Dido campaign for promotion in India as

well. However, with changing times and a contextual difference in India, a much morefocused campaign was required. This led to the Keep It Cool campaign, which wastargeted primarily at the youth and the teenager segment. Hence the appeal was at amore subtle, emotional level, which was meant to convey a potential lifestyle statement.The recent campaign of Bheja Fry essentially leverages on the same emotional appeal

where the Keep It Coolcampaign has been somewhat tweaked to have a local appeal.

Mountain DewMountain Dew is the latest entrant in the product portfolio. This product too has theappeal of being the drink of a daredevil or the No Fear personality. The campaignslaunched include Do the Dew and DarrKe Aagey Jeet Hai. The initial campaign wasunclear in terms of its appeal and the target segment, as a result of which the brandsuffered some jolts in the beginning. However, the latest campaign captures the No Fearor the Macho Man image. In this sense, the brand directly competes with Thums Up fromthe Coca Cola Stable

About Youngistaan Campaign

This campaign has two new celebrities Ranbir Kapoor and Deepika Padukone who

acted in the two most-talked about Hindi films in 2007, to accompany brand

ambassador Shah Rukh Khan.

Ranbir confronts SRK while making a futile attempt at entering Deepikas room tograb a Pepsi, Ranbir spots a poorly lit neon sign that reads Young Hindustan

Supermarket'. Due to the broken neon light, Ranbir spots just a few letters. When

asked, where he has come from, Ranbir, based on this observation, replies,

"Youngistaan".

This time we wanted an all-encompassing theme. Youngistan reflects the mood of


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Indias youth, which is today keen to take the ropes and drive India, says Punita Lal,

executive director, marketing, PepsiCo.

Youngistan, hopes to cash in on the buzz surrounding todays youngsters.

Youngistan is not so much a place and it is a state of mind of todays youth. Whilethe term is new, what it stands for the GenNext attitude is not new.

STP-Segmenting, Targeting and Positioning of Youngistaan

Campaign

Segmenting Pattern

Demographics

The campaign targets teens and young adults of metros and phase II cities.

Psychographics

The campaign attempts to capture the youth of today by focusing on theirpersonality, lifestyle and attitude of youth through the advertisement.

Targeting Strategy

TheYoungistaan Campaign uses undifferentiated targeting strategy to reach out

to its target audience. That is it launched youngistaan campaign for all the target

audience in the same way.

PositioningThe campaign positioning is done on the basis of user approach i.e. a personality

based approach where a users image or association rubs off on the brand image.


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For this campaign Pepsi used the three most popular celebrities of the last year i.e.

Shahrukh Khan, Ranbir Kapoor, Deepika Padukone.

Placement of Youngistaan CampaignThe campaign was first launched on T.V during the tri-series matches in February.The campaign is launched with 360-degree activation across radio, outdoor,

modern trade, and Web and wireless platforms.

Pepsi has launched a website forYoungistan inside the Pepsi Cool Zone and isplanning to make it a responsive peer group site where youngsters can visit andmake comments on any topic.

PepsiYoungistan is also sponsoring WassupYoungistan on MTV, a show where

youth can voice their thoughts.

Advertising Agency of Youngistaan CampaignJWT (J. Walter Thompson) is the advertising agency of PepsiYoungistaan Campaign.

The idea is fast climbing the popularity charts. The seed of Youngistaan germinated

through a recent TV campaign featuring the 'Saawariya' kid, Ranbir Kapoor, the

present heart-throb of millions, Deepika Padukone, and the ever-so-smart and

smashing SRK.

PepsiCo India Executive Vice-President, Marketing (Cola), Sandeep Singh Arora, while

commenting on the new campaign said, "The new campaign targets the youth of the

nation, not only youngsters but also people young at heart. Youngistaan represents a

never failing attitude, desire to take on challenges and the power to turn things around."

Expressing his opinion regarding the Youngistaan concept, Hari Krishnan, Vice-

President atJWT, said, "Youngistaan is a feeling that is racing through every youthful

nerve in the country today. Brand Pepsi will simply tap this energy and help the youth

express this emotion."


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Advertising Strategy of Pepsi

Pepsis target audiences are mostly teens and young adults and their advertising reflects

this in every possible way.

The company changes its advertising strategy and image to reflect the target's interests.

Pepsi makes sure that the advertisements reflect to the target audiences interests and

nostalgia.

The advertising strategy includes cool, hip promos to attract more of the target

audience.

The advertising is mostly creative and has different elements like music and sports otherthan Bollywood.

Pepsi.com also plays an important role in advertising and attracts target audience by

giving access to options like downloads, gaming, music mixing applications etc.

Types of Appeal used in the Advertisements

Fear :

mountain dew advertisement depict the fear factor image by stating Darr ke

agge Jeet hai, this is one of the most successful campaigns for the company as this

latest campaign certainly seems to be a step in this direction; the commercial attempts to

associate the drink with ones ability to conquer fear . It appears to be a cautious move to

reposition the brand in an attempt to make it more attractive to a wider consumer base.


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Ho o :

T

homour appeal has beenver well usedinvarious adcampai ns of pepsi one ofthem

bein the snapshot of Chinese mon wherein he becomes after ri orous hard wor of

years he tasted success and laterthe ritual to hammer his headinto the pepsicanto get

the shape ofthe can on his forehead

Se d ic

ol io i SI ogo


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Slogans

y 1992 Gotta Have Ity 1993 BeYoung, Have Fun, Drink Pepsiy 1995 Nothing Else is a Pepsiy 19961997: "Pepsi: There's nothing official about ity 1997 Generation Nexty 19971998: "Generation Next" (with the Spice Girls)y 19981999: "It's the cola" (100th anniversary commercial)y 1999 TheJoy of Colay 1999: "Yeh dil maange more" y 2001Yehi hai Right Choice Babyy 2004Yeh Dil Mange Morey 2007Yeh Pyaas Hai Badiy 2009: "Yeh HaiYoungistaan MeriJaan"y 2010:Youngistan Ka Wow

Media selection

TelevisionPepsiCo India, one of the countrys biggest advertisers, is diversifying its ad spends away

from television which once accounted for 90 per cent of the budget, to focus on other

media, especially online, as it aims to connect with its core youth audience.

The company has recently launched a television campaign, which aims at connecting

with consumers through gaming. The concept called The Game will bring together


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gaming and TV advertising. The idea is to involve consumers in our advertising and not

just doing one-way communication,

Outdoor MediaPepsiCo has increased the share of non-TV advertising spend to 30 per cent of its

advertising budget. This includes print, outdoor media, mall advertising, mobile related

applications and the Internet.

InternetThis year pepsico had decreased its superbowl expenditure budget to increase its

presence on online media to focus on youth. It has nearly invested more than 20 million

on online media with its refresh project and create an impact on social networking sites

like facebook twitter etc.

Online advertising is a focus area for us because youngsters these days are hooked to the

Net,.

Sponsorships

Pepsi has sponsored various sports events like icc world cricket league, many india

Pakistan matches, IPL and also many other regional events. Pepsi Youngistan is also

sponsoring WassupYoungistan on MTV, a show where youth can voice their thoughts.

Marketing Expenditure


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Advertising budget

Due to festive seasoncoming up itis advisedto spen hjhjh

The graph shows mar eting expenditure done ondifferent

brands bycoca cola and Pepsico India.

Pepsi accounts for highest expenditure i.e. 383 million

followed bymountaindew which again a pepsicos brand.

If the expenditure done all the brands of Pepsi Co are

summed up itcomes up to be $ 1092millionvis a vis coca

cola is just $ 686 million.

Bibliography


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www.google.com

www.pepsico.com

www.pepsicoindia.com

www.wikipedia.com

www.docstoc.com

www.advertisers.com

40355434 imc plan pepsico india

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