Promotion Strategy Pepsi Cola in Pakistan

Promotion Strategy

Pepsi promotes its products in a many ways, but focuses mainly on getting products associated with entertainment icons that appeal to youth. The first major use of this technique was the signing of Pakistan cricket team as celebrities.
Two other areas of entertainment that have been used by Pepsi to promote its brands are sports and movies. Sports are a popular source of entertainment throughout the world and is a using it to promote the brand is a main focus of Pepsi. Since sporting events are seen many times by fans, it provides a good opportunity to increase brand recognition. Movie stars are also popular throughout the world and are greatly admired by people, so using them in advertising has a positive effect brand image.
Some of the ways in which Pepsi attract consumers are:
¨ Free Samples ( New product – DEW)
¨ Discounts ( RAMDAN Offers)
¨ In-Store Displays – Signs, banners etc.
¨ Entertainment – Games with free T-shirts, Pepsi points under the cap etc.

When PepsiCo began its Performance with Purpose journey, we developed a broad set of goals to help guide the company's strategy and operations. This goal-setting process focused our efforts as we strive to deliver great performance by doing the right things for people and communities around the world.

In 2012, we clarified and consolidated our Performance with Purpose goals after consultation with a diverse group of stakeholders in order to focus on the issues that are of importance to our stakeholders, communities and business. Because we believe in the power of continuous improvement, our goals may further evolve as we learn from our day-to-day operations, pursue and adopt new technologies and other innovations, and adjust to changes in the external environment in which we operate.

We believe the goals below help position PepsiCo for long-term, sustainable success by aligning what is good for our business with what is good for society and the planet.

Performance:

Strive to deliver superior long-term financial performance and sustained shareholder value

Human:

Continue to refine our food and beverage choices to meet changing consumer needs by reducing sodium, added sugars and saturated fat, and developing a broader portfolio of product choices

Continue to provide clear nutrition information on our products, and sell and market them appropriately to our consumers, including children, in line with our global policies and accepted global standards.

Environmental:

Help protect and conserve global water supplies, especially in water-stressed areas, and provide access to safe water.

Innovate our packaging to make it increasingly sustainable, minimizing our impact on the environment.

Work to eliminate solid waste to landfills from our production facilities.

Work to achieve an absolute reduction in greenhouse gas (GHG) emissions across our global businesses.

Continue to support sustainable agriculture by expanding best practices with our growers and suppliers.

Talent:

Create a safe, healthy, diverse and inclusive workplace that reflects the global communities in which we operate.

Respect human rights in the workplace and across the supply chain

Pepsico Coe promises distuptive innovation novel natural sweeteners , flavoring and other customers demand.

CONCLUSION AND RECOMMENDATIONS:

Strategy Recommendation and Implementation for PEPSI CO. Pepsi Co is currently a strong worldwide leader in the food and beverage industry. Throughout its growth, it has stayed true to its mission and objectives, while becoming a dominant force within the United States as well as abroad. Known throughout the world for quality products and customer care, Pepsi Co should make no major strategic changes to its plan. However, like in any business situation there are areas that Pepsi Co can improve upon. Some of the recommendations are as follows:

Continue to expand with their “Human Sustainability”. The healthy

eating market is a demographic that will continue to grow in the future, and will provide generous profits if Pepsi Co is able to obtain a large market share.

Expand more into social benefits, especially for those in developing

nations. Pepsi’s main competitor Coca Cola has implemented water

purification program for African Villages, which provides a valuable need and at the same time introducing their brand name where it was before unknown. If Pepsi followed this same ideology with food products and water purification it too would significantly increase brand recognition

Capture more of the aging population’s market share. Pepsi is a

company focused on a younger market hoping to repeat the worldwide success of Coca Cola in regards to brand loyalty with the generations born after 1980; however, there is still a large market with the Baby boomer demographic that they could break into.

A minor yet still important change that needs to be made is to their website. After comparing it to competitors we feel that it needs to be simplified.

Overall PepsiCo is a successful company with substantial revenue, and large footprint in the marketplace. PepsiCo should continue to expand their growth and take advantage of potential opportunities by continuing to improve on areas at the corporate top level, in the markets that they currently are in, and in new markets and market segments that they wish to expand into.

PepsiCo should expand into markets and market segments that they are currently not in, such as Asia, India, and South America, in order to expand their market share at the global level and to increase their overall revenue.

PepsiCo should improve their employee relations in order to create employees all over the world that will promote the product both during

their work day and in their personal life in order to create “word of mouth marketing”.

PepsiCo should look to cut some of their expenses as they currently have $10 billion more in revenue than the competition, but they have similar Net Income of $5.5 billion.

PepsiCo needs to continue to expand their market share in the markets where they currently have a strong presence in order to maintain their market share and their footprint in the marketplace.

PepsiCo should become more proactive in the health food/product marketplace rather than being reactive to the market trends. They need to improve their responsiveness and future projections to market trends and changes that can therefore allude to different product segments and target markets. Strategy Evaluation and Control.

PepsiCo should expand into markets and market segments that they are currently not in, such as Asia, India, and South America, in order to expand their market share at the global level and to increase their overall revenue. In doing so, they should increase the revenue percentage above the current below 20%. They should evaluate the situation and growth again in one calendar year, and analyze the total effect.

PepsiCo should do market surveys of their target market segments in order to analyze the existing brand awareness in the marketplace every two quarters and then analyze the overall change and trend on the calendar year.

PepsiCo should cut their expenses by a set percentage every quarter in order to increase their Net Income each quarter and year. This would increase the bottom line and benefit the stockholders. It would be advised to reduce costs by 10% as an original amount, and then potentially increase the percentage after a few trial quarters. PepsiCo should position themselves on the cutting edge of the health trend in the marketplace by increasing funds for R&D in order to research potential new product ideas. Funding should be increased significantly and then the ROI on the positioning should be analyzed after multiple quarters of study.