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MARKETING STRATEGY

ANALYSIS OF

STING

Xtreme Energy Ultimate Taste

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Pepsi International is a world renowned brand. Very well organized multinational company, which

operates almost all over the world. In Pakistan It also has proved itself to be the No.1 soft

drink. Now days Pepsi is recognized as Pakistanis National

drink Pepsi's greatest rival is Coca Cola. Coca Cola has an

international recognized brand. Cokes basic strength isits brand name.

Pepsi with its aggressive marketing planning and quickdiversification in creating and promoting new ideas andproduct packaging, is successfully maintaining is No.1

position in Pakistan. Pepsi is operating in Pakistan, through its 12 bottlers

allover Pakistan. Pepsi has given franchise to these bottlers. Bottlers,

produce, distribute and help in promoting the brand. Pepsi also launched its fast food chain KFC i.e.

"Kentucky Fried Chicken.

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To be the world's premier consumerProducts Company focused onconvenient foods and beverages. Weseek to produce healthy financial

rewards to investors as we provideopportunities for growth andenrichment to our employees, ourbusiness partners and the communities

in which we operate. And in everythingwe do, we strive for honesty, fairnessand integrity.

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To be the world's best beverage company.Being the best means providing outstandingquality, service, cleanliness and value, sothat their every customer is contented and

happy with their products.

To increase the value of their shareholders

investment through sales growth, costcontrol and wise investment of resources.

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STING is a new introduction of PepsiCoand recently launched in Pakistan. Firstof all we would like to describe thehistory of Pepsi Co. This may help us to

understand the vision and the missionof company.

Sting has 86% market share in Pakistan

in Energy Drinks market.

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Carbonated water

Sugar

Citric Acid

Artificial flavour Taurine

Potassium Sorbate

Caffeine

Sodium Benzoate

Modified Food Starch

Panax Ginseng Extract

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Pepsi and Coke are close competitors. Itmeans that both have direct competitionin the market, their

far ahead products are close substitutes

for one another. But Coke doesnt haveany energy drink in Pakistan, so theydont compete in this category. On otherhands REDBULL is Stings directcompetitor.

But Sting is from Red Bull as Sting isavailable throughout Pakistan and isvery much economical as compared toRed bull.

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Distant competitors have no directimpact on Stings sale.

These competitors have just 2 percentmarket share.

Speed

Tiger X

Blue Horse

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It means that you divide the targetmarket in to different groups. Marketconsists of buyers and buyers differ inone or more ways. They may differ in

wants, resources, locations and buyingpractices. Through market segmentationcompanies divide large, heterogeneousmarkets into smaller segments that canbe reached more efficiently and

effectively with products and servicesthat match their unique needs.

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Demand of Pepsi products is more than its competitors. Company has a very established name and a good

reputation. Pepsi has large market share than its competitors. As the target customers of Pepsi is young generation, so

Pepsi has more brand loyal customers. Most of the customers are satisfied with the price of the

Pepsi. Pepsi is an international company and it has a very strong

position internationally. The environment of factory is very good and attractive. Pepsi spends a lot of budget on its advertising. Pepsi has a very vast distribution channel and it is easily

available everywhere. Employees are also motivated.

Pepsi offers many discount schemes for customers time totime. Pepsi Cola is sponsoring sports, musical concerts, walks. The location of the Pepsi plant is utilized that all major

markets of Lahore are within the reach of the Pepsi plantwithin 30-45 minutes.

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Pepsi does not offer any sort of incentiveor discount to its retailers.

Pepsi target only young customers intheir promotions.

Crown of the disposable bottle is notgood.

Demand of disposal bottle is declining.

Pepsi tin pack is not available in far off

rural areas. Pepsi is not considering many potential

outlets like hotels, college canteens etc.

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Company may start entering ruralareas also.

The company may also diversify

its business in some other potentialbusiness.

Increased interest of people inmusical groups, cultural shows

and sports has provided anopportunity for Pepsi to increaseits sales through them.

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The main competitor of thecompany is the Coca Cola.

At the international level, Pepsihas a very strong competition with

Coke. Coke has started itsadvertisements more effectively toincrease their demand and it is avery strong threat for Pepsi.

Cola drinks are not good for thehealth so the awareness level of thepeople is increasing which is a bigthreat to the company.

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The target market of PepsiCo Stingenergy drink basically comprisesof all the people who need energy

in their life while working. Thesepeople could be students, officeworkers, sportspersons andathletes etc.

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Extra Energy for the Extra work hours Sting Energy Drink consumers are males who

needs to work extra hours Males who need extra energy to work those extra

hours at work to provide the needs of theirfamilies

Direct Competitor is Red Bull There is no ready to drink energy drink that

tastes good and provides the needed energy Energy Drinks is 48% of the Sports and Energy

Drink Industry Sting Energy Drink offers deliciously-flavored

energy drinks Priced 1.2% lower than its direct competition Uses advertising, events, and word of mouth Mostly available in 24 hours convenient stores

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Promotion is an attempt to draw attention to a product or

business in order to gain new customers or to retain

existing ones

Company often refers to promotion above the line (ATL)and below the line (BTL)

One of the important objectives of Sting was to capture

market share in short time

Sting has been using its promotional campaign in a very

decent and effective manner

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to increase awareness of the product

to reach a target audience that may be

geographically dispersed

to remind the consumer about the product

to show a product is better than its competitor

to develop or improve the image of the

product using different media

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ATL is a type of advertising through mediasuch as television, cinema, radio, print, webbanners and web search engines to promote

brands This type of communication is conventional

in nature and is considered impersonal tocustomers

It is much more effective when the target

group is very large and difficult to define

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The ATL promotion has helped the companyto establish brand identity

Everything done prior to a products actual

entry into a retail outlet is ATL The advertisements were running on the Geo

News, Aag, Duniya News, Geo Super andTen Sports etc with high frequency

Other than the advertisements on television,disruptive radio executions are also on mostradio channels. These channels include FM89, 100 and 103

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The message that Sting tries to deliver to itsaudience using ATL promotions is theExtreme energy and ultimate taste

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Below the line promotion refers to forms ofnon-media communication or advertising,that has become increasingly important in thecommunications mix of many companies

BTL was efficient and cost-effective for Stingto target a limited and specific group

The Sting has strategically focused to come in

direct contact with its target market Another BTL technique involves sales

personnel deployed at retail stores neartargeted products

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This technique may be used to generate trialsof newly launched products

BTL can actually lead to a sale

BTL promotions are highly measurable It gives Sting valuable insights into their

return-on-investment

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Price promotions

Gift with purchase

Competitions and prizes

Frequent user / loyalty incentives

Point-of-sale displays

Samples and free trials

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Sting had planned to do BTL activities in themain cities of the country that includesLahore, Karachi and Islamabad

This BTL campaign was run between themonths of September till November

Young students from LUMS, LSE and BNUwere hired and trained in order to run thepromotional activity

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The main source of attraction of activity wasthe customized design of Hummer with a bigcan of Sting at the top

Along with the Hummer the customizeddesign choppers were also used in order toattract the public

The team wears the special suit that was ofred and black color while they were on theactivity

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Bohemias concert sponsorship:

The concert of well known Indian rapper Bohemia was sponsored in Lahore by Sting.

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F.C College Drama Festival:

The promotional teamof Sting was present at the event with their stings, Hummer and choppers.

The ticket of the drama was of worth 50 rupees. With each ticket a free can of Sting was being

distributed. The gathering over there was of approximately 700 people. The feedback taken from

the people present at that time was highly positive. They not only like the taste but also its

packaging and the theme of the campaign.

(Principal of F.C College Peter H. Arm cost along with the head of Sting campaign team)

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F.C College Drama Festival:

Hummer and choppers

The ticket of the drama was of only 50 rupees

With each ticket a free can of Sting was beingdistributed

The gathering over there was of approximately

700 people The feedback taken from the people present at

that time was highly positive

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Sting distributed 70,000 cans in all branches ofKFC Lahore. KFC introduced the deal with thename of Hot Wings. A can of sting was to be

given free along with the every deal

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During this promotional campaign between themonths of September till November Stingdistributed approximately 3500 to 4000 cans

daily. The reason behind it was that to givepeople a trial so that without paying moneyout from their pocket they get to know of thetaste. This sampling has helped the company

and boosts its sales. During this campaign thesales of sting increased by 300 to 400 percent

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Pepsi market coverage system needs a lot ofinformation. It is recommended, that the bottlers andthe company should invest more in their distributionchannels, arrange more trucks for transportation.

Sales-force also needs improvement. It needs toredefine their objectives. Their objectives shouldbe:-

To provide good service and placing the products

in time and regularly. To listen the complaints of the retailers and try to

rectify their complaints

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To provide the retailers merchandizing equipmenton time to time, and they should make sure thatproducts are merchandized properly, in theoutlets.

To convey all promotional schemes to retailers andto make a sure that trade is part of all consumersand promotion.

They should make sure that billing is correct.

Company should announce discount packageswhen it is sure that it can supply the products intime for the discount or special offers.

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Pepsi should not sacrifice its quality at anycost. It should test its Cola with much care.Change in taste is often due to the sugar used

in it. Company should specify standards for itssuppliers who supply sugar water. Research &development department should play activerole in achieving product quality.