Mkt 09909 - Pepsi Brand Management

MKT09909 Brand Management

Assessment 1

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Table of Contents

1. Introduction ……………………………………………………………………………..2
   1.1 Pepsi Background ………………………………………………………………….2
2. Brand Positioning

2.1 Target Market ……………………………………………………….………………3
2.2 Marketing Strategy …………………………………………………………………3

1. Equity Model …………………………………………………………………………….4
   3.1 Brand Awareness …………………………………………………………………..5
   3.2 Brand performance …………………………………………………………………5
   3.3 Brand Imagery ………………………………………………………………………5
   3.4 Judgements …………………………………………………………………………5
   3.5 Feelings ……………………………………………………………………………..5
   3.6 Loyalty ……………………………………………………………………………….6
2. Conclusion …………………………………………………………………………….…6
3. References ………………………………………………………………………………7
4. Appendix

6.1 Price ranking by country of Coke/Pepsi ………………………………………….8
6.2 Pepsi Logo …………………………………………………………………………..9

1. Introduction

The American Marketing Association (2016) defines a brand is a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers." This report will present how Pepsi manage their brand with using the brand management strategy and give recommend for further development.

1. Pepsi Background

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Pepsi is carbonated soft drinks which is invented by Caleb Bradham and produced by PepsiCo in 1898 (Pepsi-Cola, 2016). It was named as Brad’s Drink in 1893 and born in North Carolina (Pepsi-Cola, 2016). Pepsi has their market in over 200 countries (Pepsi, 2016). It has become the top four largest foods and beverage in the world (Pepsi, 2016).

PepsiCo, Inc. is the company of Pepsi-Cola as it has combined the Pepsi-Cola and Frito-Lay (PepsiCo, 2016).

Comparing the logo of Pepsi, Pepsi logo in early year seems has affected by Coca-cola. Until 1991, their logo was completely out of Coca-cola (Famous Logos, 2016).

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1. Brand Positioning

1. Target Market

Pepsi logo are getting more youthful and changes along with the trend since Pepsi insisted that they targets the young people between the ages of 14 to 29 (PepsiCo, 2016).

1. Marketing Strategy

Marketing Strategy is regard to the 4ps which is product, price, place and promotion. For the product, it is focus on the product quality and the selling point which is a functional requirement (Ramachandra et al., 2009). Pricing is to position a pricing strategy for earning profit with distributes the product in different place (Ramachandra et al., 2009). At last, it needs to promote sales growth by using the promotion strategy (Ramachandra et al., 2009).

Regarding Pepsi is the world-well-known of soft drinks brand. Pepsi is focus on producing the carbonated soft drinks, especially producing cola which has competed against Coca-cola over 100 years (Pepsi-Cola, 2016).

However, the nutritionists accused if drinking the carbonated soft drinks for long period, there will be harmful for health like diabetes and osteoporosis (Mercola.com, 2009). Therefore, Pepsi organized a campaign which is using the blind test for testing cola with Coca-cola. In the test, people prefer Pepsi is tastier and this has helped them to rebuilding their brand image (Soda Museum, 2016).

Pepsi has produced their product into 200 countries including North America, Europe and Asia countries (PepsiCo, 2016). In Hong Kong, we can see Pepsi is everywhere since Pepsi adopted their sales in supermarkets, convenience mart etc. Also, Pepsi has cooperated with many restaurants such as KFC, Pizza huts to increase the brand exposure, which is co-branding. Apart from the distribution level, Pepsi have create some T-shirt and coat selling online for customers purchase.

In addition, Pepsi has produced different cola for line extension. There are three main types of cola that people have heard: Pepsi, Pepsi light, Pepsi zero and diet Pepsi. Besides cola, Pepsi also produce other brand like 7-up and Mirinda (PepsiCo, 2016).

In 2015, Pepsi has organised a campaign that encourage customer to create their own Pepsi (Pepsi, 2016). Customer will be able to add some emoji on the surface of the cola can, it is a co-creation activity with customer which can enhance the brand image of Pepsi.[pic 4]

For the price, found in appendix 6.1, it shows that Pepsi is in a reasonable and competitive price since it only cost U.S.＄1.72 and it needs to compete against Coca-cola. Besides, Pepsi always using an emotional price strategy which is set the price at $5.99, this pricing strategy may give a feelings to customer that the price is lower than set the price at $6 (Noble et al., 1999).

On the other hand, Pepsi has done lots of promotion to increase the sales like using the celebrity endorsement. They invite many famous stars to be their spokesperson such as Beyoncé. Besides, Pepsi website is using a lot of advertisement for promoting their products and event that also appears on TV and internet. Pepsi also done lots of charity event like invite different national volunteers to help those in need in the world (PepsiCo, 2016).

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1. Brand Equity

Brand equity is base on a financial perspective, which is the customers’ response of the company doing the marketing activity (de Chernatony et al., 2011). It is important for the company who wants to build strong brand equity. Every company who has a strong brand is needed to watch over their brand equity in order to maintain their business (de Chernatony et al., 2011).