TASK: Pepsi or Starbuck Select an organization of your choice and carry out the
ID: 351529 • Letter: T
Question
TASK:
Pepsi or Starbuck
Select an organization of your choice and carry out the following tasks. Conduct a research on the marketing and promotional strategies of the organization selected. Your Report should include the following:
1. Introduction
2. Summarize the various promotional strategies used by the organization in implementing an Integrated Marketing Strategy. Identify the risks associated with promotional campaigns and discuss how they can be prevented.
3. Design an Integrated Marketing Communication strategy for the chosen company incorporating the different elements of the Promotion Mix.
5. For the above chosen company, design an effective and creative marketing communication (print advertisement) of your own, for any one of its products for the chosen target market. You can incorporate the logo of the chosen company, though the three creative tactics—headlines, subheads, and body copy should be your own creative work.
6. Conclusion
Explanation / Answer
1.1INTRODUCTION TO THE COMPANY( PEPSICO)
PepsiCo Inc.
Is an American multinational food and beverage corporation headquarteredin Purchase, New York, United States, with interests in the manufacturing, marketing anddistribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has sinceexpanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in2001—which added the Gatorade brand to its portfolio. As of January 2012, 22 of 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 & 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 thecompany employed approximately 297,000 people worldwide as of 2011. The company's beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers incertain regions. PepsiCo is a SIC 2080 (beverage) company
Summarize the various promotional strategies used by the organization in implementing an Integrated Marketing Strategy. Identify the risks associated with promotional campaigns and discuss how they can be prevented.
The two basis objective for carrying out such various promotional activities by Pepsi is to generate more sales as well as to create and maintain an image of its product. It carries out promotional activities as controlled and integrated programmer of communication land, material design presents its soft drink to perspective customers, and it also helps in communicating the need of soft drink to facilitate the sale eventually to contribute toward the profit in long range. The tools used by Pepsi for fulfilling various purposes of its promotional activities are the following
1. Advertising
The main motive behind the purpose of advertising of Pepsi Food Pvt ltd is to maintain the brand loyalty. All the bottles of India has to advertise the product Pepsi, 7up, Mirinda,Slice, Team and Soda as per the norms and guidance of the Pepsi Food Pvt Ltd. India. On national basis the Pepsi Food Pvt Ltd does the advertisement on an extensive basis using a number of media.
Media
1. Painting wall of visible site
2. Aerial signage Glow signage board
3. Boards
4. Poster
5. Banner
6. Striker
7. Dangler
All the displays are done as guided and instructed by the Pepsi. With given instructions to its distributions who in turn give guidance to the owners of the retail outlets. A good way of putting soft drink of display is
1. Grouping filled bottles together (With trade mark facing out)
2. Stocking full cases on top of the other space permitting, where people can easily see them
Sales Promotion
The sale promotion is one area of
“Promotion
Mix”
where every company concentrates most to promote its brands. Although sell promotion has short life period yet it is very effective in promoting sale to the greater extent. Sale promotional activities adopted by Pepsi are:
Premiums (Gifts):
The Company gives different types gifts to hisown consumer with either every bottle or some bottles in its crown. The gifts often comprise cash money, rebates free soft drinks, openers, crown scheme, goods etc.
POP display and demonstration:
The Pepsi Company involves POP (Point purchase display and demonstration) to promote its brands. Here, the company supplies different kinds of attractive and good posters, calendars, caps tee to wholesalers and retailer sto promote its brand through POP display and demonstration.
Discount:
Time to Time and is peak season (ie; March-September) company announces discount for whole salers, retailers and consumers also.
Scratch Card:
Scratch is one of the very effective and important methods of the sale promotion adopted by the Pepsi. The company offers scratch card offer at every retail outlet to promote sale.
Dealers’
sales contest:
Another method of sales promotion is being used, by Pepsi. Through its distributions is to conduct dealers sales contest during the peak season ie; During April to July. If the dealer are given prizes in the form of soft drinks. In the contest at first, dealer is categorized by their performance and then each distributor is fixed a target of minimum sale for each category which every dealer accosting its category has to achieve during the contest period. The dealer achieving highest sales order and above the target set is given the awards as under the order prize.
Free bottle scheme:
This scheme is scheduled for retailers only. Retailer avail the benefits of the free bottle on the purchase of prescribed number of cases of soft drinks. The number of free bottles depends on the policy of the company and prevailing circumstances of the market. This scheme is highly fruitful in motivating the retailers for increasing the sale of Pepsi products. Almost all the retailers are of the same view that, like Coca Cola, Pepsi should also launch free bottle scheme on regular day basis
Hit shot under the crown scheme UTC:
This scheme was scheduled for retailers as well as consumers. Under this scheme one has to collect the Pepsi hotshots 30 collectible crown with exclusive 15 Amitabh Bachhan and 15 Sachin pictures from last two decades, spanning their life time of achievements. Under this loads prizes to be won. Prizes included t-shirts, posters, photo frames and autograph books.
The crown schemes on lemon Mirinda UTC:
This scheme was scheduled for retailers as well as consumers. This scheme was limited only on the Mirinda, Lemon flavours. Prizes worth Rs.2, Rs.5,Rs.10, Rs.100, Rs.1000 to be won under the scheme.
Scheme of Cinema ticket:
This scheme was scheduled for retailers only. Retailers avails the benefits of free cinema ticket with
“Pepsi
chips and
Samosa”
in cinema hall on the purchase of prescribed number of crates of Pepsi
Scheme of free gift:
Nowadays this scheme has become more popular among the retailers. This scheme is for retailers avails the benefits of the gifts like
“Camera,
Wrist Watch,
Casserole”
on the prescribed number of crates of soft drinks.
Special event market:
The retailers
at special event spots like picnics, festivals and cricket, place the banners and stall of Pepsi food products. It helps in promoting
Design an Integrated Marketing Communication strategy for the chosen company incorporating the different elements of the Promotion Mix.
Pepsi integrated various promotional mix elements in order to promote their Pepsi Refresh campaign. All of these elements are used in order to promote a bigger picture which is social responsibility (their main theme). Pepsi promotes their product using that said platform nd these elements work together to get that message across its consumers. It is the social mediathat serves as a glue which holds together a truly integrated marketing communication effort.Pepsi make use of social media such as Facebook and Twitter among others in order to bind thedifferent promotional mix elements used in the campaign. In short, Pepsi uses digitally focusedsocial responsibility campaign.Given these situations,Pepsi Co did a good job in integrating all of these elements inorder to support their main goal which is to promote social responsibility while selling theirproduct at the same time. This is because all of these elements work together as one in order topromote their campaign. Therefore, Pepsi Co will be able to get a high grade when it comes to this said integration. The different elements serves one purpose which is to promote the advocacy and the product of Pepsi. All of these elements work together as one in order to promote their campaign. All of these elements are effectively integrated and used in order to achieve their purpose
For the above chosen company, design an effective and creative marketing communication (print advertisement) of your own, for any one of its products for the chosen target market. You can incorporate the logo of the chosen company, though the three creative tactics—headlines, subheads, and body copy should be your own creative wor
Television
PepsiCo India, one of the country’s biggest advertisers, is diversifying its adspends away from television which once accounted for 90 per cent of thebudget, to focus on other media, especially online, as it aims to connect withits core youth audience. The company has recently launched a television campaign, which aims atconnecting with consumers through gaming. “The concept called ‘The Game’will bring together gaming and TV advertising. The idea is to involveconsumers in our advertising and not just doing one-way communication,
Outdoor Media
PepsiCo has increased the share of non-TV advertising spend to 30 per centof its advertising budget. This includes print, outdoor media, malladvertising, mobile related applications and the Internet.
Internet
This year pepsico had decreased its superbowl expenditure budget toincrease its presence on online media to focus on youth. It has nearlyinvested 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 ‘‘Wass up Youngster” on MTV, a show where youth can voice their thoughts
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