Pepsi Cola Philippines 10-step marketing plan by Mark Valino

1. 10-STEP MARKETING PLAN Mark Anthony A. Valino 22 June 2010 Ateneo Graduate School of Business

2. 5 STEPS for PART 1(Primary Target Market and Positioning) Pepsi’s PTM are active teenagers and “on-the-go” professionals. Who want refreshing beverages fit for their active lifestyles. Can choose Coca-Cola, Cosmos, C2, Nestea, Powerade, Zesto-O, or Wilkins, among others. Gap is all other brands offering thirst-quenching, ready-to-drink, and pocket-friendly liquid refreshment beverages. The market size is Php91 B, Pepsi is Php15 B.

3. 5 STEPS for PART 1(Primary Target Market and Positioning) Carbonated and non-carbonated liquid beverages. Price is mid priced, 10%-20% below/above competitors. Uses multimedia platform, billboards, supermarkets, convenience stores, bars, “sari-sari” stores, and “carinderias” Is distributed nationwide. Uses niche market, and supply and distribution leverage as its generic winning strategies.

4. Positioning to thePRIMARY TARGET MARKET Part 1: Step 1 of 5

5. PART 1: Step 1 of 5Pepsi’s Primary Target Market are… Demographics: Teens (13-21 y/o) and young professionals (22-35 y/o), male and female, social class ABC, single) Lifestyle: Hip and active teens, and “on-the-go” young professionals. Behavior: Daily, at least 3x/day, min. of 8 oz and up, thirst-quenching, fits lifestyle.

6. PART 1: Step 2 of 5Maslow Hierarchy of Needs 5: I enjoy a fun and healthy life. 3: I am hip and I belong with my peers. 2: I drink healthy beverages.

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.

10. They choose Pepsi over other liquid beverages because its ready/easy to drink, taste, affordability, and provides health benefits.

13. PART 1: Step 3b of 5Pepsi’s Competitive Position Map Price vs. Economic class Matrix Market Share (48.4%) Market Share (17.4%) Market Share (23.3%)

14. Pepsi’s unique positioning is shown in this competitive map Positioning vs. Brand Matrix

16. consistently and aggressively serves the teen and young professional market segment

17. Projects a trendy, stylish image

18. invests heavily in global and local celebrity endorsementsNo brand has this positioning in the market. Other focus on supply and distribution leverage, product research and development.

19. PART 1: Step 5a of 5 Based on an independent research report, the Philippine carbonated soft drinks market is Php 82.3 billion. *in Php millions Source: 2009 Business World Top 1000

20. PART 1: Step 5b of 5 Based on Pepsi IPO Prospectus, where its share is 17.4% , total market is Php 91 billion. Total Liquid Beverage Industry by Volume and Value

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. Source: Pepsi Cola Products Philippines Phil. IPO Prospectus, February 2008 CAGR: Compounded Annual Growth Rate

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. Source: Pepsi Cola Products Philippines Phil. IPO Prospectus, February 2008 CAGR: Compounded Annual Growth Rate

23. PART 1: Step 5b of 5 Based on a competitor data, Pepsi’s share still stands at 15%. 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. Coca Cola shares 80% market share from its acquisition of Cosmos Bottling Corp. Top Sellers: Coke Sakto, Sparkle, Coke Zero, Pop Pepsi Cola shares a market share of 15%. Top Sellers: Pepsi, Mountain Dew RC Cola shares a market share of 4% Others share 1%

26. Company data = Php 91billion

28. PART 2: Step 6aCarbonated soft drinks market is dominated by 3 major companies

30. PART 2: Step 7Pepsi is mid priced, about 10%-20% lower than market leader and higher than low price rival.

31. PART 2: Step 8Promo: Pepsi ad spending is low compared with closest competitor. Source: ACNielsen Adspend Report (Jan – June 2009)

32. PART 2: Step 8Promo: TVC of Pepsi

33. PART 2: Step 8Promo: TVC of Pepsi

34. PART 2: Step 8Promo: TVC of Coca-Cola

35. PART 2: Step 8Promo: TVC of Coca-Cola

36. PART 2: Step 8Promo: TVC of RC Cola

37. PART 2: Step 8Promo: TVC of Sarsi

39. This includes supermarkets, convenience stores, bars, sari-sari stores, and carinderias (through sales force).

40. Relies on distribution reach through retail outlets, direct sales, distributorship, and wholesaling.

41. “Entrepreneurial Distribution System” (971 contractors, serving 1,789 routes)

43. Third party wholesale and distributorship account for 19% of net sales revenue)

45. This is supported by strong advertising and marketing programs.

46. Channeled through its stable and expanding distribution system.

48. 5 STEPS for PART 1(Primary Target Market and Positioning) Carbonated and non-carbonated liquid beverages. Price is mid priced, 10%-20% below/above competitors. Uses multimedia platform, billboards, supermarkets, convenience stores, bars, “sari-sari” stores, and “carinderias” Is distributed nationwide. Uses niche market, and supply and distribution leverage as its generic winning strategies.

49. 10-STEP MARKETING PLAN Mark Anthony A. Valino 22 June 2010 Ateneo Graduate School of Business