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Brand Audit Of
Pepsi Co
BY
Z.Syed Imran Ahmed
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History
First introduced as Brads Drink in New Bern in 1898.
Founded by Caleb Bradham in his pharmacy where the drink
was sold.
Later named Pepsi Cola, due to the enzymes used in the recipe. In 1903, Bradham moved the bottling of Pepsi Cola to a
Warehouse.
In 1909, automobile race pioneer Barney Oldfield was the first
celebrity endorser for the brand. The original trademark application for Pepsi-Cola was filed on
September 23, 1902 with registration approved on June 16,
1903.
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Mission of Pepsi Co
To be the world's premier consumer products company focused
on convenience foods and beverages. We seek to produce
healthy financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, ourbusiness partners and the communities in which we operate.
And in everything we do, we strive for honesty, fairness and
integrity.
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Logo of Pepsi CO
The Pepsi logo is a simple globe with the Pepsi colours in the
background and the word Pepsi in the foreground. Pepsi has
changed its logo and its slogans a number of times since its
introduction in 1898.
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Packing of Pepsi Co
The Pepsi Bottling Group, Inc. (PBG) is the worlds largest
manufacturer, seller and distributor of Pepsi-Cola beverages.
On February 26, 2010, PepsiCo completed its mergers with
The Pepsi Bottling Group and PepsiAmericas, furtherstrengthening PepsiCos beverage business.
PBGs strongest presence is in United States and Canada.
Holds exclusive Pepsi franchises in Greece, Russia, Spain and
also in most U.S. states. PepsiCo's new operating unit, Pepsi Beverages Company, now
serves the United States, Canada and Mexico.
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Positioning of Pepsi CO
Positioned in the soft drinks segment.
Positioned as The Choice of a New Generation.
Targets the younger generation.
Uses young celebrities in almost all commercials.
Continues change with the youth.
Right from Yeh Dil Mange More to Yeh Hai
Youngistan Meri Jaan.
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Marketing Strategies
In 1975, Pepsi introduced the Pepsi challenge marketingcampaign.
In 1976, Pepsis RKO bottlers hired the first female Pepsisalesperson.
In 1996, Pepsi Co launched the highly successful Pepsi stuffmarketing strategy.
In 2007, Pepsi Co redesigned their cans for the fourteenthtime, and for the first time, included more than thirty different
backgrounds on each can. In late 2008, Pepsi overhauled their entire brand,
simultaneously introducing a new logo and a minimalist labeldesign.
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Marketing Mix of Pepsi Co
Product:
The Pepsi-Cola drink contains basic ingredients
found in most other similar drinks.
The caffeine free Pepsi-Cola contains the same
ingredients but no caffeine.
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Marketing Mix of Pepsi Co
Price:
Pepsi decides its price on the basis of competition.
It is very flexible and it can come down with theprice very quickly.
This risk taking attitude has also earned Pepsi
losses.
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Place:
Has spread worldwide.
Doesnt go in alone and looks for partners andmergers.
Till now Pepsi has collaborated with companies
like Quaker Oats, Frito-lays, Lipton, Starbucks, etc.
It is coming up with Advertisements which can bebroadcasted in the different nations in the world.
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Promotion:
Huge promotion by advertising.
Uses more celebrities in the advertisement. Almost all the celebrities are style icons, as the
target audience are the youth.
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Distribution of Pepsi Co
PepsiCo's distribution system was aimed at making available
all or most of the products in its portfolio within a distance
easily reachable by consumers.
Conscious of the need to adapt its distribution systemsaccording to the needs and preferences of global customers.
Its various models of distribution include the Direct Store
Delivery (DSD), Broker Warehouse Distribution (BWD) and
Vending & Food Service (V&FS) systems.
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Logistics operations of Pepsi Co
PepsiCo had put in place advanced logistics systems.
PepsiCo sold beverage concentrate to bottlers, who added
carbon dioxide, sweetener and water to make beverages and
beverage syrup. Syrup was either sold directly to the fountain accounts or was
combined with carbonated water for bottling.
Bottling companies were (with a few exceptions) owned and
operated by local companies in the countries where Pepsi Co
operated.
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Competitors
Coco-Cola
Fresh juices
Water
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Porters 5 force of Pepsi
Traditional Competition:
Prices of Coca Cola, local brands
Market share
Promotional actions of competitors.
Threats of new entrants:
New look-alike manufacturers.
Threats of substitutes:
Fashionable new drinks, milk drinks, coffee, beer, water,
smoothies, etc.
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Porters 5 force contd..
Suppliers:
Price and availability of ingredients on worldmarket.
Quality, speed, safety, traceability, flexibility ofsupply chain.
Buyers/Consumers:
High as a result of intense competition both
among branded and unbranded products.
Combined purchase power of shops, bars,supermarkets.
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SWOT analysis of Coco-Cola
Strengths:Popularity
Branding obvious and easily
recognized
A lot offinance
Customer loyalty
International trade
Weaknesses:Word ofmouth
Lackofpopularity ofmany coca
colas brands
Health issues
Not much advertising
Threats:Changing health consciousness
attitude
Legal issues
Health ministers
Competition of Pepsi
Opportunities:Many successful brands to pursue
Advertise its less popular products
Buy out competition
More brand recognition
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SWOT analysis of Pepsi Co
Strengths:Large market share
Demand for Pepsi
Factory environment is attractive
Distribution channel is good
Weaknesses:Utilization of distribution channel is
low
Targets only young customers in its
advertisementsNot much considered about potential
outlets.
Threats:
Competitors activitiesFake products
Health issues
Opportunities:
Must concentrate more on ruralInterest of people in musical groups,
cultural shows etc has increased so
they can use it.
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Suggestions
Use different innovative promotion strategies.
Improve one or more marketing mix elements.
Improve the distribution channels.
More penetration into the rural market.
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