Pepsi case study
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PepsiCo has a long history dating back to the late 1800s. It owns many popular food and beverage brands worldwide. The document discusses PepsiCo's profile, brands, competitors and advertising strategies over time. It focuses on the Pepsi Refresh Project campaign from 2010, an integrated marketing effort that awarded grants for ideas to improve communities. The campaign used social media, celebrities and other digital promotions to engage consumers and highlight funded projects.
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Pepsi case study
- 2. • History of Pepsi • Actual Company Profile Goods and Services • Company analysis • Competitors • Advertising strategy of Pepsi corporation . • Pepsi refresh Campaign/project (2010) . Integrated Marketing Communication • Doing Good project • Social (digital) media Campaign. • Conclusion
- 3. Pepsico History • The first name of the drink was "Brad's Drink « • In 1902, Pepsi-Cola Company launch •PepsiCo’s snack food operations (Frito Lay….) had their start in 1932. PepsiCo’s founded by Caleb Bradham, •PepsiCo began its international snack food operations in 1966. • In 1997, It owned Taco Bell, Pizza Hut, KFC.
- 5. • Pepsi Co was founded in 1965 Donald M. Kendall [merger of Pepsi cola & Frito lay] • Pepsico “located in New York City • Indra K. Nooyi, Chairman; President; CEO • it holds 285,000 employees • Revenue: US $ 57.838 billion [Growth 33.79%] • Rank: 20/21 [2011/2010 IW U.S. 500] •fiftieth largest publicly owned company •Distribute and sell beverages, snacks in 200 countries worldwide
- 6. Companies owned by Pepsico: Frito Lay Gatorade Tropicana (aquired in 98) Quaker Oats Pepsi brands Diet Pepsi 7UP Mountain Dew Lipton Iced tea (partner) Mirinda Lays/ Doritos…..
- 8. STRENGHTS The Brand name Vast product line Strong Distribution Pepsi Refresh Project Competent CEO (Indra Nooyi) WEAKNESSES Unhealthy products Lack of focus on core operations failed to support sales of it’s core brand
- 9. OPPORTUNITIES Global presence Steady growth rate /positive potential Always looking into the future Relevant new product introduction (introduce Pepsi Next to counter health issues criticism and put SMART spot logo) THREATS Health trend Increased competition Change in consumers demands
- 11. PEPSI ADVERTISING STRATEGY
- 12. Pepsi’s campaign includes PR, Spot ads, prints, digital and out-of-home advertising. (word of mouth) Shift a Huge marketing Budget to interactive and Social Media program. PepsiCo decision to favor digitally focused Social Media from high profile spots compelling & risky Move from past ads focused on youthful nature of Generation (stick with celebrities) to it’s new Program (Pepsi Refresh)
- 14. Pepsi Co has committed to award $ 20 million in grants (non-profitable) organizations and individuals ranging from $5000 and $250000 with ideas that will make the world a better place .
- 15. The aim of this compaign is that : • The message Demonstrate of social responsibility • The message should be delivered with a fat dose of social media
- 16. Pepsi Refresh project contribute to develop an effective integrated marketing communication: communication IT’s not « about digital as its own channel anymore » However : « It’s how do we infuse digital across all of our marketing programs ». Says Bonin Bough
- 17. Cont (….) How Pepsi refresh project works in digital ? Pepsi is running spot ads on the main networks as well as 30 different cable channels. The ads inform people about the Pepsi Refresh campaign direct them to www.refresheverything.com site . After the 1st grants were awarded ,ads began highlighting projects that had been funded .
- 18. what does Six Degrees.com refers to ? Giving good Card a gift Card for charity which they can use to support their favorite cause in the US. In return, they will pay it forward by sending Good Cards to their family and friends. Pepsi is giving away millions each month to fund refreshing ideas that change the world. The ideas with the most votes will receive grants.
- 19. Integrated marketing communication use of celebrities to transmitt the message of Pepsi refresh project :
- 20. Display the symbol of Pepsi in all the lowercase Pepsi logo in cans, bottles and multipakcs show up the new Pepsi Brand Mark On the front of most of the new packages A reassuring tag line: "Same Pepsi inside, new look outside.
- 21. More closely integrate consumers with the brand Drive the concept of Doing Good, rather than drive the brand. transform the community throught a donations program Highlight the projects funded as the project finished Reach their customers easily (using celebrities)
- 22. PepsiCo used of consumer-generated media opportunities, TV spots, print ads, and had digital presence on Twitter ( 634 969 fans) and facebook (7 867 474 fans) To get Direct dialogue with fans and consumers Partenered with Foursquare to direct FS members to Pepsi retailers
- 23. • Hold special contests asking for employee sustainability suggestions – Human sustainibility – Environmental Sustainibility • Pepsico’s profits, are everyone’s Profits Community members: Community/ Social Programs, scholarships, Educational Awarness
- 25. 1)Consider PepsiCo’s advertising throughout its history. Identify commonalities i its various ad campaigns. How is the campaign consistent with PepsiCo’s brand image?
- 26. Slogans of pepsi • 1939 « Twice as Much for a Nickel » • 1958 « Be Sociable, Have a Pepsi » • 1961 « Now it’s Pepsi for Those Who Think Young » • 1984 Pepsi. The Choice of a New Generation. • 2003 « It’s the Cola ». « Dare for more » • 2008 « Pepsi is # 1 » • 2010- present"Every Pepsi Refreshes The World"
- 29. 2) List all promotional mix elements used in the Pepsi Refresh Campaign. 3) Describe PepsiCo’s target audience. Is the Refresh Campain consistent with the audience? 4) Analyze the campaign according to the steps listed in the chapter for developing effective marketing communication. 5) Will The Pepsi Refresh campaign be successful? Why or Why not?
- 30. THANK YOU FOR YOUR ATTENTION
Editor's Notes
- Created by Caleb Bradham in 1898. ( pharmacist and drugstore owner in New Bern, North Carolina) He began experimenting with combinations of spices, juices, and syrups trying to create a refreshing new drink to serve his customers. The first name of the drink was "Brad's Drink In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent Office for a trademark. In 1903, "Pepsi-Cola" was officially registered with the U.S. Patent Office. PepsiCo’s snack food operations (Frito Lay….) had their start in 1932. PepsiCo began its international snack food operations in 1966. In 1997, It owned Taco Bell, Pizza Hut, KFC.
- PepsiCo is world leader in food and beverages ,
- “PepsiCo owns some popular brands as Gatorade, Quaker Oats and Tropicana and Each of these brands have many product offerings in their respective categories, both in the U.S. and internationally.
- Streghnts - Brand recognition is one reason for pepsi to take competitive position at the same time it have involved in strategies to make its products image and brand name deeply loaded in the consumers minds. - It have also greatly diversified products with a vast product line - It have also an extensive distribution locally and interationaly. And of course the pepsi refresh project -- Indra ( as the CEO is business confident and very experienced in worldwide needs who focus on innovation and who changed the companie’s outlook) Weaknesses big health issues ( sugar and fat)
- Opportunities … .As it takes advanatges from a great growth opportunities in many countries. Threats And threats of new substitutes that are carried by the changing health consciousness of consumers Pepsi also have to adapt and carefully respond to the consumer buying power and its changing in attitudes as they tend to switch to other less priced and less known beverages
- The competition many lies on the non-alcoholic beverage industry that consist of soft drinks and juice. Thus the key competitors of pepsi are : coca cola which also owns as brands sprite, fanta and aquarius. It holds 60;8% of the total market share which is 95% In 1985,The Coca-Cola Company changed its formula in response to the Pepsi Challenge. However, a consumer criticism led Coca-Cola to quickly introducing a modified version of the original formula as Coke "Classic".
- pepsi have a Talented Advertising creativity and Intelligence PR which pepsi use to always be close to the general public and its stakeholders
- Rather than spending money on Super Bowl television ads, the company spent $20 million dollars on the refresh project .
- PepsiCo redesigned their cans, bottles and multipakcs for the fourteenth time, and for the first time,included more than thirty differentbackgrounds on each can, introducing a new background everythree weeks. ‡ 2008 Pepsi teamed up with Google/YouTube to produce the firstdaily entertainment show onYoutube, Poptub. This daily showdeals with pop culture, internet viral videos, and celebritygossip.Poptub is updated daily from Pepsi. ‡ .
- ( 3eme point) …. And raizing the community awarness. …………………… .. (Use of celebrities) as the company used celebrity endorsers through clever network spots ads inside a life-sized three dimantional laptop. As we will see in this video.
- since Business decisions are now based exclusively on customer feedback PepsiCo is considering social media as the best way to get direct dialog with their fans and to hear from either criticism or propositions and new ideas . Facebook, Twitter and other social networks AS Foursquare give people who are passionate about products and companies a platform to express it. The campany spread the message of the refresh campaign through the social groups. As
- as it is an ethical company and socially responsible Because it’s a leading company in environmental issues. Such as energy conservation and in water conservation TO make a positive impact in the communities THEY serve as THEY strive for profitable growth And To sustain the environment in all areas in which they do business.
- One of the main reasons for the popularity of pepsi is the use of slogans that attract customers . Pepsi used many different slogans to attract different ages and different countries. These slogans were meainly used to attract Young generations as pepsico wanted its main brand « pepsi coke to have a « permanent young image»