10-STEP MARKETING PLAN <br />Mark Anthony A. Valino<br />22 June 2010<br />Ateneo Graduate School of Business<br />
5 STEPS for PART 1(Primary Target Market and Positioning)<br />Pepsi’s PTM are active teenagers and “on-the-go” profession...
5 STEPS for PART 1(Primary Target Market and Positioning)<br />Carbonated and non-carbonated liquid beverages.<br />Price ...
Positioning to thePRIMARY TARGET MARKET<br />Part 1: Step 1 of 5<br />
PART 1: Step 1 of 5Pepsi’s Primary Target Market are…<br />Demographics: Teens (13-21 y/o) and young professionals (22-35 ...
PART 1: Step 2 of 5Maslow Hierarchy of Needs<br />5: I enjoy a fun and healthy life.<br />3: I am hip and I belong with my...
PART 1: Step 2 of 5Pepsi’s PTMs Needs, Wants, & Expectations<br /><ul><li>Teens need to feel belongingness with their peer...
Teens choose Pepsi over other liquid beverages because its ready/easy to drink, taste, affordability, hip packaging, and e...
Teens expect that when they drink Pepsi, it primarily will quench their thirst with its good taste.  Pepsi is a hip drink ...
They choose Pepsi over other liquid beverages because its ready/easy to drink, taste, affordability, and provides health b...
“On-the-go,” young professionals expect that when they drink Pepsi, it primarily will quench their thirst with its good ta...
Indirect:</li></li></ul><li>PART 1: Step 3a of 5Direct and indirect products that address my PTM’s NWE<br /><ul><li>Variab...
PART 1: Step 3b of 5Pepsi’s Competitive Position Map<br />Price vs. Economic class Matrix<br />Market <br />Share<br />(48...
Pepsi’s unique positioning is shown in this competitive map <br />Positioning vs. Brand Matrix<br />
PART 1: Step 4 of 5 Pepsi strongly positions itself in a particular segment of the soft drink market<br />Pepsi is the onl...
consistently and aggressively serves the teen and young professional market segment
Projects a trendy, stylish image
invests heavily in global and local celebrity endorsements</li></ul>No brand has this positioning in the market.<br />Othe...
PART 1: Step 5a of 5 Based on an independent research report, the Philippine carbonated soft drinks market is Php 82.3 bil...
PART 1: Step 5b of 5  Based on Pepsi IPO Prospectus, where its share is 17.4% , total market is Php 91 billion. <br />Tota...
PART 1: Step 5b of 5 Based on Pepsi IPO Prospectus, where its share is 17.4% , total carbonated soft drinks market is Php ...
PART 1: Step 5b of 5 Based on Pepsi IPO Prospectus, where its share is 17.4% , total carbonated soft drinks market is Php ...
PART 1: Step 5b of 5 Based on a competitor data, Pepsi’s share still stands at 15%.<br />RC COLA: The leading company in t...
PART 1: Step 5c of 5 Consumer data indicates a size of Php 93 B<br /><ul><li>Philippines’ off-trade liquid refreshment bev...
Philippine liquid refreshment beverage sales volume is 6.01 M liters</li></li></ul><li>PART 1: Step 5c of 5 Consumer data ...
Company data		= Php 91billion
Consumer data		= Php 93 billion	</li></li></ul><li>THE MARKETING MIX STRATEGY<br />Product, Price, Promo, Place<br />Gener...
PART 2: Step 6aCarbonated soft drinks market is dominated by 3 major companies<br />
PART 2: Step 6bProduct Description<br /><ul><li>4 brands:</li></ul>	Pepsi Cola, 7-Up, Mountain Dew, Mirinda<br />	(for car...
PART 2: Step 7Pepsi is mid priced, about 10%-20% lower than market leader and higher than low price rival. <br />
PART 2: Step 8Promo: Pepsi ad spending is low compared with closest competitor.<br />Source: ACNielsen Adspend Report (Jan...
PART 2: Step 8Promo: TVC of Pepsi<br />
PART 2: Step 8Promo: TVC of Pepsi<br />
PART 2: Step 8Promo: TVC of Coca-Cola<br />
PART 2: Step 8Promo: TVC of Coca-Cola<br />
PART 2: Step 8Promo: TVC of RC Cola<br />
PART 2: Step 8Promo: TVC of Sarsi<br />
PART 2: Step 9Place: Pepsi is distributed nationwide<br /><ul><li>Pepsi sells its products through approximately 275,000 p...
This includes supermarkets, convenience stores, bars, sari-sari stores, and carinderias (through sales force).
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10-Step Plan of Pepsi Cola Philippines

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Pepsi Cola Philippines 10-step marketing plan by Mark Valino

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Transcript of "10-Step Plan of Pepsi Cola Philippines"

  1. 1. 10-STEP MARKETING PLAN <br />Mark Anthony A. Valino<br />22 June 2010<br />Ateneo Graduate School of Business<br />
  2. 2. 5 STEPS for PART 1(Primary Target Market and Positioning)<br />Pepsi’s PTM are active teenagers and “on-the-go” professionals.<br />Who want refreshing beverages fit for their active lifestyles.<br />Can choose Coca-Cola, Cosmos, C2, Nestea, Powerade, Zesto-O, or Wilkins, among others.<br />Gap is all other brands offering thirst-quenching, ready-to-drink, and pocket-friendly liquid refreshment beverages.<br />The market size is Php91 B, Pepsi is Php15 B.<br />
  3. 3. 5 STEPS for PART 1(Primary Target Market and Positioning)<br />Carbonated and non-carbonated liquid beverages.<br />Price is mid priced, 10%-20% below/above competitors.<br />Uses multimedia platform, billboards, supermarkets, convenience stores, bars, “sari-sari” stores, and “carinderias”<br />Is distributed nationwide.<br />Uses niche market, and supply and distribution leverage as its generic winning strategies.<br />
  4. 4. Positioning to thePRIMARY TARGET MARKET<br />Part 1: Step 1 of 5<br />
  5. 5. PART 1: Step 1 of 5Pepsi’s Primary Target Market are…<br />Demographics: Teens (13-21 y/o) and young professionals (22-35 y/o), male and female, social class ABC, single)<br />Lifestyle: Hip and active teens, and “on-the-go” young professionals.<br />Behavior: Daily, at least 3x/day, min. of 8 oz and up, thirst-quenching, fits lifestyle.<br />
  6. 6. PART 1: Step 2 of 5Maslow Hierarchy of Needs<br />5: I enjoy a fun and healthy life.<br />3: I am hip and I belong with my peers.<br />2: I drink healthy beverages.<br />
  7. 7. PART 1: Step 2 of 5Pepsi’s PTMs Needs, Wants, & Expectations<br /><ul><li>Teens need to feel belongingness with their peers, gaining self-esteem, and enjoy life.
  8. 8. Teens choose Pepsi over other liquid beverages because its ready/easy to drink, taste, affordability, hip packaging, and endorsed by their pop icons/idols.
  9. 9. Teens expect that when they drink Pepsi, it primarily will quench their thirst with its good taste. Pepsi is a hip drink of their age. It is the best complement to favorite food while enjoying time with family and friends. </li></li></ul><li>PART 1: Step 2 of 5Pepsi’s PTMs Needs, Wants, & Expectations<br /><ul><li>“On-the-go,” young professionals need to stay fit and healthy amidst a busy and competitive lifestyle.
  10. 10. They choose Pepsi over other liquid beverages because its ready/easy to drink, taste, affordability, and provides health benefits.
  11. 11. “On-the-go,” young professionals expect that when they drink Pepsi, it primarily will quench their thirst with its good taste. Plus, it has ingredients beneficial to their health and fitness.</li></li></ul><li>PART 1: Step 3a of 5Direct and indirect products that address my PTM’s NWE<br /><ul><li>Direct:
  12. 12. Indirect:</li></li></ul><li>PART 1: Step 3a of 5Direct and indirect products that address my PTM’s NWE<br /><ul><li>Variables: Age, social status, price, packaging, ease of use, branding, availability, health benefits, marketing campaign, promotion. </li></li></ul><li>XXX-Correct RC Pepsi ranks 3rd with 17.4% share of the Philippine carbonated soft drinks market<br />
  13. 13. PART 1: Step 3b of 5Pepsi’s Competitive Position Map<br />Price vs. Economic class Matrix<br />Market <br />Share<br />(48.4%)<br />Market Share<br />(17.4%)<br />Market Share<br />(23.3%)<br />
  14. 14. Pepsi’s unique positioning is shown in this competitive map <br />Positioning vs. Brand Matrix<br />
  15. 15. PART 1: Step 4 of 5 Pepsi strongly positions itself in a particular segment of the soft drink market<br />Pepsi is the only soft drink: <br /><ul><li>conscious effort to create attractive packaging
  16. 16. consistently and aggressively serves the teen and young professional market segment
  17. 17. Projects a trendy, stylish image
  18. 18. invests heavily in global and local celebrity endorsements</li></ul>No brand has this positioning in the market.<br />Other focus on supply and distribution leverage, product research and development.<br />
  19. 19. PART 1: Step 5a of 5 Based on an independent research report, the Philippine carbonated soft drinks market is Php 82.3 billion.<br />*in Php millions<br />Source: 2009 Business World Top 1000<br />
  20. 20. PART 1: Step 5b of 5 Based on Pepsi IPO Prospectus, where its share is 17.4% , total market is Php 91 billion. <br />Total Liquid Beverage Industry by Volume and Value<br />
  21. 21. PART 1: Step 5b of 5 Based on Pepsi IPO Prospectus, where its share is 17.4% , total carbonated soft drinks market is Php 91 billion. <br />Source: Pepsi Cola Products Philippines <br />Phil. IPO Prospectus, February 2008<br />CAGR: Compounded Annual Growth Rate<br />
  22. 22. PART 1: Step 5b of 5 Based on Pepsi IPO Prospectus, where its share is 17.4% , total carbonated soft drinks market is Php 91 billion. <br />Source: Pepsi Cola Products Philippines <br />Phil. IPO Prospectus, February 2008<br />CAGR: Compounded Annual Growth Rate<br />
  23. 23. PART 1: Step 5b of 5 Based on a competitor data, Pepsi’s share still stands at 15%.<br />RC COLA: The leading company in the market [at an average] was San Miguel Corporation/CCBI. The second-largest player was PepsiCo, Inc. with Nestle S.A. in third place.<br />Coca Cola shares 80% market share from its acquisition of Cosmos Bottling Corp. <br />Top Sellers: Coke Sakto, Sparkle, Coke Zero, Pop<br />Pepsi Cola shares a market share of 15%.<br />Top Sellers: Pepsi, Mountain Dew<br />RC Cola shares a market share of 4% <br />Others share 1%<br />
  24. 24. PART 1: Step 5c of 5 Consumer data indicates a size of Php 93 B<br /><ul><li>Philippines’ off-trade liquid refreshment beverage/capita consumption is 56 liters.
  25. 25. Philippine liquid refreshment beverage sales volume is 6.01 M liters</li></li></ul><li>PART 1: Step 5c of 5 Consumer data indicates a size of Php 93 B.<br /><ul><li>Philippine carbonated soft drinks market volume is 2.14 million liters, valued at Php 93 billion.</li></li></ul><li>PART 1: Step 5 of 5 Concluded that carbonated soft drinks market is about Php91 million.<br /><ul><li>Independent research = Php 82.3 billion
  26. 26. Company data = Php 91billion
  27. 27. Consumer data = Php 93 billion </li></li></ul><li>THE MARKETING MIX STRATEGY<br />Product, Price, Promo, Place<br />Generic Winning Strategy<br />
  28. 28. PART 2: Step 6aCarbonated soft drinks market is dominated by 3 major companies<br />
  29. 29. PART 2: Step 6bProduct Description<br /><ul><li>4 brands:</li></ul> Pepsi Cola, 7-Up, Mountain Dew, Mirinda<br /> (for carbonated soft drinks only)<br /><ul><li>8 sizes, 3 types of packaging:</li></ul> 7 oz, 8 oz, 12 oz, and 1 liter returnable glass bottle (RGB);<br /> 500 ml, 1L, and 1.5 L PET bottle; and<br /> 355 ml aluminum can<br />
  30. 30. PART 2: Step 7Pepsi is mid priced, about 10%-20% lower than market leader and higher than low price rival. <br />
  31. 31. PART 2: Step 8Promo: Pepsi ad spending is low compared with closest competitor.<br />Source: ACNielsen Adspend Report (Jan – June 2009)<br />
  32. 32. PART 2: Step 8Promo: TVC of Pepsi<br />
  33. 33. PART 2: Step 8Promo: TVC of Pepsi<br />
  34. 34. PART 2: Step 8Promo: TVC of Coca-Cola<br />
  35. 35. PART 2: Step 8Promo: TVC of Coca-Cola<br />
  36. 36. PART 2: Step 8Promo: TVC of RC Cola<br />
  37. 37. PART 2: Step 8Promo: TVC of Sarsi<br />
  38. 38. PART 2: Step 9Place: Pepsi is distributed nationwide<br /><ul><li>Pepsi sells its products through approximately 275,000 points of sale in the Philippines.
  39. 39. This includes supermarkets, convenience stores, bars, sari-sari stores, and carinderias (through sales force).
  40. 40. Relies on distribution reach through retail outlets, direct sales, distributorship, and wholesaling.
  41. 41. “Entrepreneurial Distribution System” </li></ul> (971 contractors, serving 1,789 routes)<br />
  42. 42. PART 2: Step 9Place: Pepsi is distributed nationwide<br /><ul><li>Modern trade channels (supermarkets, etc.) account for 17% of net sales revenue in ‘08)
  43. 43. Third party wholesale and distributorship account for 19% of net sales revenue)
  44. 44. On a volume-weighted basis, Pepsi sold its products to approximately 46% of the available sales outlets for soft drinks in the Philippines.</li></li></ul><li>PART 2: Step 10Pepsi capitalizes in its niche market, supported by its supply and distribution leverage<br /><ul><li>Pepsi is the only soft drink brand actively pursuing the teenage and young professional markets (young, hip, and cool).
  45. 45. This is supported by strong advertising and marketing programs.
  46. 46. Channeled through its stable and expanding distribution system.
  47. 47. Promising as there is planned company investments in multiple plants, infrastructure system to widen reach.</li></li></ul><li>5 STEPS for PART 1(Primary Target Market and Positioning)<br />Pepsi’s PTM are active teenagers and “on-the-go” professionals.<br />Who want refreshing beverages fit for their active lifestyles.<br />Can choose Coca-Cola, Cosmos, C2, Nestea, Powerade, Zesto-O, or Wilkins, among others.<br />Gap is all other brands offering thirst-quenching, ready-to-drink, and pocket-friendly liquid refreshment beverages.<br />The market size is Php91 B, Pepsi is Php15 B.<br />
  48. 48. 5 STEPS for PART 1(Primary Target Market and Positioning)<br />Carbonated and non-carbonated liquid beverages.<br />Price is mid priced, 10%-20% below/above competitors.<br />Uses multimedia platform, billboards, supermarkets, convenience stores, bars, “sari-sari” stores, and “carinderias”<br />Is distributed nationwide.<br />Uses niche market, and supply and distribution leverage as its generic winning strategies.<br />
  49. 49. 10-STEP MARKETING PLAN <br />Mark Anthony A. Valino<br />22 June 2010<br />Ateneo Graduate School of Business<br />

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