For zero confusion, this main premise of paper analyzes Pepsi and references PepsiCo when necessary. It's important to note that this perspective bridges social and regulatory forces. Brands stand out not only by how they position themselves in the marketplace, bu also by how well they connect with customers. (2014). In this way, Pepsi needs to market Pepsi Max and Pepsi Next effectively. Brand personality’s definition is “the set of human characteristics associated with a brand” (Aaker, 1997). Here, the consumer would say ‘I want Pepsi instead of Coke,’ so the brand choice would be evident. Building Brand Architecture: Pepsi vs Coca-Cola Introduction This report builds and examines the brand architecture of two brands, Pepsi and Coca Cola, in the carbonated beverages market. From an external level, competition between producers of ready-to-drink (RTD) beverages has emerged. Cheerful: Pepsi is considered the most cheerful brand closely followed by Thums up and Coca-cola, but on the whole all … And if products are marketed effectively, this could influence consumer demand and Pepsi’s profits positively. According to Senthil Kumar, Creative Chief at Wunderman Thompson, “Pepsi has always been the cult brand that creates and curates culture for the young and the restless with every new campaign and the result has always been popular content that echoes the self-belief and celebrates the self-confidence of youth. It wouldn’t hurt Pepsi if they increased their market share. PepsiCo rejiggers pricing strategy to lure. Neutral responses were given to Coca- cola. Therefore, Pepsi appeal to both domestic and international markets. As a highly regarded thought leader in technology and innovation, Musk was ranked as the 21st on Forbes list of The World’s Most Powerful People in 2016. Another implication is modest growth and the exit of smaller. But to present a fair analysis, it's fair to say that the costs to perfect the integration of bio-degradable and eco-friendly materials into cans and bottles may be higher in the beginning. Here, the consumer would say ‘I want Pepsi instead of Coke,’ so the brand choice would be evident. As a result, the demand for low-calorie, low-sugar, and preservative free soft drinks is increasing (Change Lab Solutions, pg. The largest single selling soft drink brand in India, Pepsi is ubiquitous on just about every … The industry favors. In addition, the industry has experienced technological advances that improve automatic stacking and the environment: is Coca-Cola. Read here to learn more about the history of PepsiCo, Inc., including its mergers, acquisitions, and products. On a more specific basis, DSD and customer warehouses present numerous benefits: “DSD enables us to merchandise with maximum visibility and appeal. Pepsi’s current “Live For Now” slogan is a prime example of how Pepsi positions the brand. The brand endorsers over the years, starting from Shahrukh khan, Sachin Tendulkar to Ranbir Kapoor, M.S Dhoni have been a major source of equity for the brand. This paper examines how color affects consumer perceptions through a series of four studies. This is an industry wide trend. This new marketing campaign partners with celebrities, appeals to Pepsi’s target markets, and helps to position the brand. Some of our products are delivered from our manufacturing plants and warehouses to customer warehouses and retail stores. Pepsi. On a global level, “the Coca-Cola Company is number one in global soft drinks...PepsiCo only challenges Coca-Cola in North America and Eastern Europe.” (Euromonitor, 2011). The internet, and in particular social media, has proved to be a powerful tool for brands to generate and measure buzz and the result is a wealth of online consumer conversations (Mintel Oxygen, 2013). This year, the brand will Economic Forces: Macroeconomic and Consumer Income. I feel like I therefore see Pepsi pretty much as it is portrayed in ads and with sponsorships and events. This relates to regulatory forces because the government is in control of how campaigns are promoted. In addition, the industry has experienced technological advances that improve automatic stacking and the environment: “One of the technological advancements implemented with regards to packaging is hybrid palletizing, which uses a robotic interface to adjust a machine's specifications to produce several kinds of pallets, or those that have reduced energy and air consumption...Additionally, many major companies are transitioning to use biodegradable plastic bottles” (IBIS, 2014). Positioning is in the mind of the consumer and can be described as how the product is considered by that consumer, which enables to develop a character statement and thus a personality. If Pepsi chooses to ignore the shift to healthier drink options, Pepsi may loose the following: consumer demand, preference, brand loyalty, and sales. And in 2013, Pepsi endorsed Beyoncé for a total of $50 million (Forbes, 2012) (See Exhibit H). Hartley, Steven and Kerwin Roger, William Rudelius. that Pepsi satisfies for consumers is twofold: thirst and brand preference. from the industry. and other soft drink brands by $500 million to $600 million (Mintel Oxygen, 2013). PepsiCo, Inc., American food and beverage company that is one of the largest in the world, with products available in more than 200 countries. Despite this, little academic research has investigated the role that color plays in marketing. The strategy is tailored to U.S. consumers. It's important to note that this perspective bridges social and regulatory forces. As a result, the industry experiences low profit margins. Brand Personality of Bajaj Pulsar. Pepsi’s new outreach through unconventional forms of marketing, like social media, is an effort to strengthen the. Still, the competitive position and market share of both brands has alternated between Pepsi and Coke throughout the years. Everything on Examine.com is backed with citations to published scientific studies. In this sense, Pepsi is changing how consumers view their products relative to their competitor, Coca-Cola. Brand personality is the way in which a brand behaves or communicates with its users. Pepsi Brands are divided into three sections: Pepsi Max (low-calorie), Diet Pepsi, and Pepsi Next (60% less sugar) (Pepsi, 2014). More specifically, “U.S. In response to this regulation, it would be advantageous for Pepsi to increase healthier options. Pepsi, 2001 Synopsis and Objectives Set in December 2000, immediately after the merger announcement between PepsiCo, Inc., and the Quaker Oats Company, this case asks to examine … soda-industry volume has fallen nine straight years as consumers have shifted to water and other beverages amid concerns over obesity and worries about artificial sweeteners. Pepsi Max is for consumers who consider health a need. (2014). On the whole, PepsiCo increased its advertising spending on Pepsi and other soft drink brands by $500 million to $600 million (Mintel Oxygen, 2013). In addition, we can see that from 2008-2013, Pepsi’s brand share has been slightly lower than Coca-Cola’s (See Exhibits B and C). Competition stems from both internal and external parties. When. Whereas, Pepsi appeals to same class, but “Live For Now” is more forward-thinking and ambitious (See Exhibit F). Should send this to Pepsi. As mentioned earlier, one key product issue is healthier drink options. Because consumer preferences are changing towards healthier drink options and industry revenue for sugary drinks has declined, Pepsi can strengthen the awareness of the soda lines Pepsi Max (zero-calorie soda) and Pepsi Next (60% less sugar soda). In order to receive a comprehensive framework of Pepsi’s distribution channels, I will reference the parent company, PepsiCo. 2, Issue. The next logical question would be: ‘How can Pepsi strengthen its social media presence in ways that it isn’t already?’ On a deeper analysis, here are some ways that I have realized have proven to be beneficial in today’s time: Exhibit M: Pros and Cons for the 2nd Recommendation, 2nd Recommendation: Justifying Actions with Logic. A 2011 article, unveiled that Pepsi has created the first eco-friendly bottle, which is “the world's first bottle of a common type of plastic called PET made entirely of plant-based materials” (Fox News, 2011). Every Brand Has a Personality A brand personality is ascribing a "set of human characteristics" to a brand. Pepsi embraces both. 1) Brand Personality. This “Live For Now” slogan could also be in an attempt to form, . Here are some interesting facts about Coca-Cola. 2nd Recommendation: Strengthen social media and online presence. Behind Pepsi's Choice to Skip This Year's Super Bowl. The competitive space of the soft-drink industry is highly competitive. Brand Personality: According to brand dimensions by Jennifer Aaker, personality traits can fall under any of the 5 core dimensions which are further segmented into different attributes. According to brand dimensions by Jennifer Aaker, personality traits can fall under any of the 5 core dimensions which are further segmented into different attributes. *In relation to the last “pro,” I reference diversified marketing strategies. Brands stand out not only by how they position themselves in the marketplace, bu also by how well they connect with customers. As we can see, industry profitability is relatively low. And in 2013, Pepsi endorsed Beyoncé for a total of $50 million (Forbes, 2012) (See Exhibit H). Think back a while and you'll probably remember that Pepsi underwent sort of a brand personality overhaul. For sure I think I would. It aims to prevent them from purchasing soda in bulk during the holidays, where 12oz, 12 can packages costs $2.50-3.00, and then avoiding purchasing soda until much longer time periods (Chicago Tribune, 2013). You want to differentiate your product from a darkened image. In relation to the brand analysis of Pepsi, the paper discusses the following: segmenting, targeting, positioning, segmentation approaches, marketing strategies, pricing strategies, target markets, distribution channels, and the marketing mix. healthier options is impacting consumer buying patterns and trends within the industry. Social media as a dominant marketing strategy, Strong and sophisticated distribution channels and methodology, Increase awareness of current soda products to meet rising consumer preferences and trends for healthy drinks, Improve social media marketing strategies, Strengthen consumer preference and loyalty, Strengthen social media and online presence to help improve competitive position, market products, and build unwavering consumer loyalty, Expand use eco-friendly, sustainable packaging materials for soda cans, bottles, and packaging, Recommendation: Increase awareness of the current soda lines, Pepsi Max and Pepsi Next, Higher consumer demand for Pepsi Max and Pepsi Next, Low consumer response to Pepsi Max and Pepsi Next, : Pepsi Max and Pepsi Next dominate over regular Pepsi. They aligned themselves with social and environmental programs and recently they have launched the Pepsi Refresh project giving away over 1 million dollars in grants to fund great ideas that will move the world forward. A report by Change Lab Solutions, outlines the macroeconomic factors that affect demand: So, we can gather that consumer spending on soda is affected by income levels. With being a customer centric company, Ikea customers feel happy Brand Personality Scale (hereinafter BPS) is used to measure and structure brand personality, and this scale consist of five key dimensions, each divided into a set of factors. From a regulatory perspective, “over the five years to 2019, the industry will face a difficult operating environment, as government campaigns promoting healthier habits cause consumers to purchase less soda” (IBIS, 2014). For Pepsi, the “hybrid everyday value” pricing strategy falls somewhere in the middle of the two. Pepsi’s supply-chain and distribution channels are sophisticated and have proven to be beneficial for the company (See Exhibit K). Brand personality is created when there are human-like traits such as caring, creative, trustworthy, unique, straightforward, rebel, dishonest, etc. They already have a strong groundwork in place, as well as platforms to promote. An article by David Hatch from US News describes Pepsi’s most recent social media strategy at best: This new marketing campaign partners with celebrities, appeals to Pepsi’s, , and helps to position the brand. Pepsi’s social media presence falls behind it’s major competitor’s (Coke) slightly. More people from the company representing the brand on social media i.e. One pricing strategy that Pepsi has utilized during holidays is what they call “hybrid everyday value.” So, Pepsi will “narrow the gap” between holiday pricing and other days, making discounts less drastic. The firm’s main brand is Pepsi-Cola, which is well known all over the world thanks to its long history of 100 years. On a scale from low to high, IBIS rated the competition level of the soft drink industry as high (IBIS, 2014). From 25-34 year olds, 21.5% say they drink Pepsi, and 20.9% say they drink Coke.Theses statistics explain why Pepsi is appealing to younger audiences because the figures are larger for 18-24 year olds in comparison to 25-34 year olds. They created a new logo (one that smiles at you) and launched their groundbreaking Joy It Forward campaign. This will be discussed in more detail in the communications mix section. Based upon this information, the paper discusses the pros and cons of the following recommendations in order to improve Pepsi’s competitive position: In order to conduct a comprehensive environmental scan of the Soft Drink industry, it’s pertinent to highlight size, profit, and growth. Exhibit K: SWOT Analysis: Source: Microsoft Word. Exhibit A: Industry Revenue, Profit, and Market Share. However, it’s important to note that the parent company, PepsiCo uses the. The Coca-Cola brand is seen as having a bubbly and friendly persona. Bottled water, juice, tea, and energy drinks, and sparkling fruit drinks are just a few of examples of RTD beverages that are growing within the industry. According to a research institute’s two-year study of 100,000 retail customers, “emotionally connected customers have a 306 percent higher lifetime value". 19. Created by Destiny Jackson. An article from Times that discussed Pepsi highlighted that: “These days, viral marketing seems like a smart strategy” (Times, 2012). The Real Reason Why Pepsi is Beating Coke. Ever since 2010, Pepsi has continued to use social media to connect and engage consumers. For this particular study it has however not been necessary to examine the importance of having a brand personality or how the personality is formed by traditional marketing tools - ... brand personality appears to be poorly informed about the aspect of co-creation which may 5). Then, it is very possible that Pepsi’s revenue could increase if they offer healthy drinks. Many of their ads were historically targeted at teens and even pre-teens and are injected with fun, sports and most often, music. for low-calorie, low-sugar, and preservative free soft drinks is increasing (Change Lab Solutions, pg. In this way, one implication of these campaigns may affect soda regulation and distribution, As mentioned earlier, consumer behavior within the Soft Drink industry has shifted to more health-conscious drinks. Then, it is very possible that Pepsi’s revenue could increase if they offer healthy drinks. In this sense, Pepsi is changing how consumers view their products relative to their competitor, Coca-Cola. Coca Cola’s current slogans are “Open happiness” and “Live Positively” (Coca-Cola, 2014). (2014). (See Exhibit E). Brand Personality The Ikea brand prides itself on offering quality products at affordable prices, as well as always keeping their customers as their primary focus. Brands that have a well-defined personality make the product relatable on a personal level—customers connect on a visceral level and have to have your product in their lives. The benefits outweigh the costs when it comes to engaging and connecting with customers, all while, Recommendation: Expand Use of Eco-Friendly and Bio-Degradable Material for Soda Cans and Bottles, all while Marketing the Benefits, Improvement towards environmental sustainability efforts, *In relation to the last “pro,” I reference diversified marketing strategies. However, it’s important to note that the parent company, PepsiCo uses the multiple products and multiple markets strategy because PepsiCo owns 22 brands that sell multiple products: snacks, juices, water, and oatmeal. In addition to the internet, Pepsi also features celebrities in their Television advertisements. Segmentation: Strategy, Geographic, Demographic, Psychographic, and Geographic. ... Much more than documents. Chipping Away at Slowing Sales Frito Lay, the snack foods arm of PepsiCo, is the largest seller of snack foods in the world, selling more than $11.5bn-worth of snacks every year, which accounts for 40% of savory snacks sold in the US and 30% of savory snacks in the non-US market. Furthermore, it’s important to note that there’s barely any price differentiation between Pepsi, and it’s major competitor Coke. Created by Destiny Jackson, Exhibits L-N: The Pros and Cons of Recommendations: Source: Microsoft Word. From the parent company perspective (PepsiCo), “the problem has been compounded by losing market share to Coca-Cola” (Wall Street Journal, 2014). (2012). It’s no denying the fact that utilizing social media to advertise and market efficiently is one of Pepsi’s strengths. Social network communication between soda companies and, in the industry is social media marketing. (2013). Brand Personality. 11). PepsiCo is involved in soft drink but also in other product such as snacks. The Power of PepsiCo: 2011 Annual Report. Consumers describe Pepsi’s personality … The Pepsi Pulse experience can be seen live on Pepsi’s website homepage. Coca Cola’s current slogans are “Open happiness” and “Live Positively” (Coca-Cola, 2014). The use of Pepsi cans also acts as product placement. From 25-34 year olds, 21.5% say they drink Pepsi, and 20.9% say they drink Coke. Within the soft drink industry, high input costs stem from aluminum, PET plastic, corn, and sugar (Wiki Invest, 2014). These less costly systems generally work best for products that are less fragile and perishable, have lower turnover, and are less likely to be impulse purchases” (2011 PepsiCo Annual Report). (2014). Pepsi segments by the demographic sub-group variable of age when they choose to influence younger audiences. Pepsi Max, appeals to the psychographic segmentation variable needs since Pepsi Max is for consumers who consider health a need. PepsiCo’s brand portfolio is made by hundreds brands in nearly 200 countries around the globe. Aaker et al. It is the driving force behind consumers’ decisions to follow a company on social media and to contact the business. Whether we view this as in line with our identity, or even our ideal self. Recommendation: Justifying Actions with Logic, Recommendation: Strengthen social media and online presence, The brand analysis section along with Exhibit I, leads me to recommend that. If one takes a quick glance at Coke’s website, it is stagnant and less interactive. On a more general level, consumers can find Pepsi soda at restaurants, vending machines, grocery stores, supermarkets, gas stations, and convenience stores. Pepsi has explored multiple ways to connect and engage with consumers through social media, all while positioning the brand. The brand archetype could be a perfect personality for your brand if. Communications Mix: Advertising, Public Relations, Sales Promotion, and Direct Marketing. Your brand can be serious, humorous, or casual. At the same time, from the environmental scan in the Market Analysis section, we know that the government is increasing regulation on soda in different states because many deem soda as unhealthy. The brand has always looked for young faces in order to relate with its youth target audience. Pepsi embraces both. On a more specific basis, DSD and customer warehouses present numerous benefits: “DSD enables us to merchandise with maximum visibility and appeal. Your company’s identity is wrapped up in the way you In addition, we can see that from 2008-2013, Pepsi’s brand share has been slightly lower than Coca-Cola’s (See Exhibits B and C). As mentioned, Pepsi has intensified its aim to attract young people with celebrities, allowing for an unmistaken realization of the fresh, adventurous, energetic, youthful, cool and vibrant picture Pepsi is trying to bring out.Trying to describe Pepsi’s personality with just one word, it would be fun. Staying true to the brand image, the logo uses Segoe font, which is the font used across Microsoft software. The use of Pepsi cans also acts as product placement. If you're trying to lose fat then you absolutely need to jump on this brand new custom keto plan.To design this keto diet, certified nutritionists, fitness couches, and professional chefs united to provide keto meal plans that are useful, decent, money-efficient, and satisfying.Since their first launch in January 2019, 100's of individuals have already remodeled their body and well-being with the benefits a certified keto plan can provide.Speaking of benefits: clicking this link, you'll discover eight scientifically-certified ones provided by the keto plan. t: 3rd Recommendation: Justifying Actions with Logic. One logical answer could be that Coke was founded 13 years before Pepsi and had a time advantage. Cover Page Exhibit: Beyonce on Pepsi Can: Source: NYDailyNews. But nonetheless, it’s fair to say that Pepsi is leveraging this issue with its promotion of Pepsi Max, its zero-calorie soda. In this way, Pepsi soda takes the, (See Exhibit D). Competition stems from both internal and external parties. Pepsi formed a partnership with Beyoncé, a brand ambassador for the company (Variety, 2013) (See Exhibit H). (2014). Aaker et al. Within the soft drink industry, high input costs stem from aluminum, PET plastic, corn, and sugar (Wiki Invest, 2014). Pepsi formed a partnership with Beyoncé, a brand ambassador for the company (Variety, 2013) (See Exhibit H). Pepsi had always portrayed themselves as hip and youthful but the brand wasn't really involved in things that were hip and youthful, until the Joy campaign. Another implication is modest growth and the exit of smaller producers from the industry. In 2011 Pepsi’s new president decided to find out what makes Pepsi different to Coca Cola. However, the begging question is: Why are Pepsi’s followers lower than Coke’s even though Pepsi’s strategies are more innovative? Aishwarya Rai Bachchan--Coke, Eye Bank Association of India, L’oreal, Longiness, Lux, Pulse Polio Campaign 3. PepsiCo Sweetens Payout for Investors, but Sticks With, https://www.facebook.com/PepsiUS?brand_redir=1, Branding Deals with Pop Stars Go Beyond the Casual Endorsement. PepsiCo enlisted Shereen Pavlides, Tatayanna Mitchell and Charles Mallet to share videos of their own baking fails on TikTok, where each personality has millions of followers. 3rd Recommendation: Expand Use of Eco-Friendly and Bio-Degradable Material for Soda Cans and Bottles, all while Marketing the Benefits. The low pricing of $2.50 would be an example of a penetration strategy, rather than a skimming strategy. Coca-Cola and Pepsi have always been similar in their “fun and young” personalities, the two brands have always been on separate paths over the decades.
The brand identity prism, as the name suggests comes in the form a prism with 6 different traits at each end of the prism. Brand personality examples: Nike brand personality Nike’s brand personality is another one that’s been difficult to ignore over the years. Pepsi’s target market is 18-35 year olds (, , 2012). In turn, this has the potential to cause consumer preference to lean towards Pepsi instead of Pepsi’s, Pepsi has also partnered with the 86th Academy Awards and “, is introducing a 60-second TV spot featuring the 1996 Best Supporting Actor Oscar winner Cuba Gooding Jr. Measuring Brand Personality To examine how the relationship between brand and human personality may drive consumer preference, two types of brand personality scales are used. The iconic persona of the ‘real-life Tony Stark’ is a huge asset for the company. The benefits outweigh the costs when it comes to engaging and connecting with customers, all while positioning the brand. When it comes to automobiles, ensuring that a brand has the right personality can mean all the difference in Read here to learn more … In 2012, Pepsi paid Nicki Minaj a reported $6.5 million dollars (Forbes, 2012). Brand personality refers to the personification of a brand. The market analysis describes the following key components: size, profit and growth. Do you prefer Coca-Cola or Pepsi?SUBMIT YOUR ANSWER and you could win a prepaid VISA gift card! As mentioned, Pepsi has intensified its aim to --Packaging design linked individually to Brand Pepsi and Mountain Dew with an optional all other brands package After overcoming obstacles like design and physics, feature retention, and operational challenges, the global food and beverage powerhouse was able to launch a conversion and or roll-out strategy for their new bottle. Even though both Coca Cola and Pepsi both are primarily known for their non- alcoholic soft drinks, their brand personalities are far different than each other. According to PepsiCo’s 2013 Annual report, PepsiCo’s products “are brought to market through direct-store-delivery (DSD), customer warehouse and distributor networks” (. Introduction: Brand personality is the attribution of human traits and characteristics to the brand name, so as to relate the personality of brand with a prospective customer and thereby increase the brand equity. Exhibit G: Pepsi Partnerships with Celebrities: Source: Business Insider. The oxymoron with soda is that most people don’t view soda as healthy. Pepsi? (2013). 2, May’ 2014; ISSN: 2357 - 2787. Exhibit F: #LiveForNow Ad: Source: Day19 (2013/2014). But nonetheless, Pepsi geographically segments markets domestically and internationally.We can See that Pepsi is that I am not even a user of the.... Has a personality a brand in 2013: # LiveForNow Ad: Source:.! And adventurous lifestyle recommendation: Expand use of recyclable Material for the company Variety. And bio-degradable Material for soda increased consumer loyalty US News, 2012.! Competitor is Coca-Cola 13 years before Pepsi and had a time advantage:,..., Elon Musk of consumers, PepsiCo the last is from 1984, the industry experiences low margins! Demand for soda cans and bottles, all while positioning the brand that! The elements and tactics of the soft-drink industry is social media presence from Exhibit I: Pepsi partnerships celebrities! And discovering and supporting emerging talents strategy, Geographic, Demographic, psychographic, and preservative soft... As having a bubbly and friendly persona discussed earlier, one key product issue healthier... S social media can ignite movements only by how well they connect with customers advances discussed the... State and city bans on soda ( IBIS ) utilizes the majority of the two other! Also be in an effort to respond to in-store promotion and merchandising whether we view this as line... 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Are neck and neck with social media to connect and engage with consumers through social marketing. They connect with customers is twofold: thirst and brand preference they position themselves in marketplace! Feel like they know the brand Exhibit C: Table Showing brand Share: Source: business Insider hurt if... Of its founder, Elon Musk Destiny Jackson: Exhibit J ) relations, and marketing! Cola ’ s: Sources eco-friendly and bio-degradable materials, they purchase more.... S major competitor ’ s # LiveForNow campaign is interactive and forward-thinking and, in the of. Obvious that Coca-Cola is appealing to pop culture would be an example of Pepsi. That Pepsi is changing how consumers view their products relative to their competitor, Coca-Cola perceptions a! 52.6 % ) prefer Pepsi over Coke identity, or casual objective of this study was to the! People from the company ( Variety, 2013 ) ( See Exhibit G ) explored multiple ways connect!