Brand Audit Of

Pepsi Co

BY
Z.Syed Imran Ahmed
 History
• First introduced as “Brad’s 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.
 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, our
business partners and the communities in which we operate.
And in everything we do, we strive for honesty, fairness and
integrity.”
 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.
 Packing of Pepsi Co
• The Pepsi Bottling Group, Inc. (PBG) is the world’s largest
manufacturer, seller and distributor of Pepsi-Cola beverages.
• On February 26, 2010, PepsiCo completed its mergers with
The Pepsi Bottling Group and PepsiAmericas, further
strengthening PepsiCo’s beverage business.
• PBG’s 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.
 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”.
 Marketing Strategies
• In 1975, Pepsi introduced the Pepsi challenge marketing
campaign.
• In 1976, Pepsi’s RKO bottlers hired the first female Pepsi
salesperson.
• In 1996, Pepsi Co launched the highly successful Pepsi stuff
marketing strategy.
• In 2007, Pepsi Co redesigned their cans for the fourteenth time,
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 label design.
 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.
 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 the
price very quickly.
– This risk taking attitude has also earned Pepsi
losses.
• Place:
– Has spread worldwide.
– Doesn’t go in alone and looks for partners and
mergers.
– Till now Pepsi has collaborated with companies
like Quaker Oats, Frito-lays, Lipton, Starbucks, etc.
– It is coming up with Advertisements which can be
broadcasted in the different nations in the world.
• 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.
 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 systems
according 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.
 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.
 Competitors
• Coco-Cola
• Fresh juices
• Water
 Porter’s 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.
 Porter’s 5 force contd..
• Suppliers:
• Price and availability of ingredients on world market.
• Quality, speed, safety, traceability, flexibility of
supply chain.
Buyers/Consumers:
• High as a result of intense competition both among
branded and unbranded products.
• Combined purchase power of shops, bars,
supermarkets.
 SWOT analysis of Coco-Cola
Strengths: Weaknesses:
•Popularity •Word of mouth
•Branding obvious and easily •Lack of popularity of many coca
recognized cola’s brands
•A lot of finance •Health issues
•Customer loyalty •Not much advertising
•International trade

Threats: Opportunities:
•Changing health consciousness •Many successful brands to pursue
attitude •Advertise its less popular products
•Legal issues •Buy out competition
•Health ministers •More brand recognition
•Competition of Pepsi
 SWOT analysis of Pepsi Co
Strengths: Weaknesses:
•Large market share •Utilization of distribution channel is
•Demand for Pepsi low
•Factory environment is attractive •Targets only young customers in its
•Distribution channel is good advertisements
•Not much considered about potential
outlets.

Threats: Opportunities:
•Competitors activities •Must concentrate more on rural
•Fake products •Interest of people in musical groups,
•Health issues cultural shows etc has increased so
they can use it.
 Suggestions
• Use different innovative promotion strategies.
• Improve one or more marketing mix elements.
• Improve the distribution channels.
• More penetration into the rural market.