1. Bilal Greene
06/25/2016
Brand Management
Inthis essayI will discusstwocompanies P & G and PepsiCo which areboth Fortune
500 companies. I will talk about each of the company’s history and products, and
mostimportantly,thebrandmarketing techniques used.Alsodisplayinggraphsand
data concerning their sales and demographic data.
P & G is an American multinational consumer goods company headquartered in
downtown Cincinnati, Ohio, United States. Founded by William Procter and James
Gamble in 1837 who both are from the United Kingdom. Its products include
cleaning agents, and personal care products. Prior to the sale of Pringles to the
Kellogg Company, its product line also included foods and beverages. The 2nd
company is PepsiCo which operates as a food and beveragecompany worldwide, it
was formed in 1965 with the merger of PepsiCo Company and Frito-Lay Inc.
Both companies have a diversified portfolio when it comes to the brands they own
and sell. I will analysis three brands from each company, for P & G I have chosen
"Gillette, Old Spice and Tide" then for PepsiCo I have selected "Mountain Dew,
Gatorade and Quaker Oats” brands. For each productI will breakdown their target
market and the marketing techniques used to reach their prospective goal.
First, we will discuss the three brands for PepsiCo; which I must say, does a very
good job at marketing the products. One being Gatorade which was acquired by
PepsiCo in 2001. Their target marketdemographics are athletes between the ages
of 18 through 30. With this target market their mind set and actions are shown in
examples such as “go to the gym, have a passion for sports, and care about what
they look like". To help them find their key demographics when it comes to sports,
they conducted a test for 7 days to see what type of sports consumes the most
sports drinks.
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Listed below you will find the data for this experiment (Gatorade -7 day testing of
preference of drinks)
Gatorade could be seen as a flanker brand because in 2001 it was a new brand
within current category of brands for PepsiCo. The evoke set that PepsiCo wants
for all their brands is the set where the brand has the power that makes the
customer consider the brand whenever they are shopping. PepsiCo markets the
Gatoradeby using the executional framework, a slice of life ads in such a way, that
it can fit into the evoke set.
For example their ads will havesomeone working outhard and they need to refuel
their body, so the person should use Gatorade to fix this problem. This type of ad
can also be called a means to an end chain too. The appeals PepsiCo uses for
Gatorade in their marketing ads are emotional appeals because like I said their
target market care about how they look and that’s emotional.
Another brand which PepsiCo also markets well is Mountain Dew; in 1964, the
Mountain Dew brand and production rights wereacquired fromTip by the PepsiCo
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Company, at which point distribution expanded more widely across the United
States and Canada. Mountain Dew’s target market demographic is 12 through 30
year old group who are extreme sports fans/athletes and other outdoor activists.
Fora better look attheir targetmarketdemographics,pleaseviewthe graphbelow.
Mountain Dew is also a flanker brand just like Gatorade and it wants to be in the
sameevokesetas Gatorade.ButPepsiCo markets MountainDew in a differentway,
in most of the ads for this product the appeal they use is humor. The reason for
using humor is it piques interest and increases recall and comprehension. The
executional framework Mountain Dew uses is animation. They use animation ads
that have a funny theme in it so their ad can stick in your head, even after the ad is
over. For example in their 2016 ads during the NFL Super Bowl they had a baby
monkey dancing giving out Mountain Dew to some guys in their basement
apartment.
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The last brand of PepsiCo I will discuss is Quaker Oats which I feel PepsiCo does a
great job at marketing this product, as well. Quaker Oats is an American food
conglomerate based in Chicago. It was established in 1877 but it has been owned
by PepsiCo since 2001. Quaker Oats target market demographics are middle class
husbandsandwives, around theageof 30 years old. This targetmarkethas a hectic
lifestyles and mostlikely thesehusbandand wiveshave a growingfamily (children).
Quaker Oats is one of PepsiCo’s top brands but it has a lot of competition in its
industry for example…
Even though the competition is fierce, the industry is very large and profitable for
all involved; this is the reason for the purchase and continuation of this brand.
Quaker Oats is seen as a family brand because it has multiple products under one
brand. It has many different flavors, but mostly because it’s a brand under the
umbrella of PepsiCo. The marketing appeal PepsiCo uses for Quaker Oats is an
emotional one; for example their ads, most the time, have a family theme. There
are many reasons why Quaker Oatsuses this kind of appeal; but the main reason is
that emotional ads captures the attention of people, whenever they see it.
For Quaker Oats, the executional frame work they use is a demonstration which
showstheproductbeing used in the ads,plus demonstrationservesto substantiate
an ad claim through reasoning or a show of evidence. Depending on the nature of
the product,thereasoningand evidence behind a claim maybe conveyedin several
ways: through illustration, by examples or specimens, through testing or by
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detailing the functionality, qualities or benefits of an offering. Most of the time
these types of executional frameworks are seen on television and the internet.
In sum PepsiCo’s marketing department displays their products in a fashionable
manner by using different marketing techniques to capturetheir target market. At
this rate they will continue to be successfulin their marketing campaigns by being
a game changer.
Both PepsiCo and P & G aregreat examples of companies that have learned how to
make sufficient profit from many different brands. P & G has more brands in their
Portfolio then PepsiCo; of this larger portfolio I will choose the "Gillette, Old Spice
and Tide" brands to discuss. These three brands are a family brands because P &
G creates individual brands for different product lines and then implements
umbrella branding within those brands, in order to control profitable market
sections.
This strategy allows P & G to abstain from the risk of damaging the corporate
brand's image from the release of an unsuccessfulproduct, as the brands are not
interconnected. Umbrella branding (also known as family branding) is a marketing
practiceinvolving theuseof a single brandnamefor thesaleof two or morerelated
products. P & G creates individual brands for each of the 3 productlines and then
implements umbrella branding within those brands in order to control profitable
marketsections.This strategy allows P & G to abstainfromthe riskof damaging the
corporatebrand'simage fromthe releaseof an unsuccessfulproduct,asthebrands
are not interconnected.
The firstP & G brand is Gillette and their target market demographics aregenerally
"Gen X" and "Gen Y" men (roughly 18 through 34). Thesemen in this target market
also care about how they look to others. For Gillette it uses two different kinds of
executional frameworks oneis demonstration. Which are ads that show products
being used; for example in one of the Gillette ad’s thereis a male individual who is
using the product in his bathroom, showing how much enjoyment he’s having by
using it.
The second executional framework used is fantasy which are ads that go beyond
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reality and common themes, sex, love and romance. For example in the same ad,
there is a womanin the samebathroom,asthe guy. Shethen toucheshis faceonce
he is done using the Gillette productand kisses him. This appeal used here would
be called sensuality, which are ads that have a theme of "enjoyment, expression,
or pursuit of physical; it’s more sophisticate and relies on imagination. With their
two executional frameworks and appeals Gillette is one of the best razors in the
market.
Fromthis graph you can see what the leading razor brands werein the United
States in 2015 based on sales.
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The 2nd brand for P & G is Old Spice and their target market are men in the age
rangeof 18through 39.Someof their media will havetargets towardsdifferentage
groups specifically, while some will appeal to both audiences. I feel their 2016
campaign should keep focusing on the aspects of being a "man’s man" in order
appeal to men.
The executional framework they use for Old Spice is animation which are ads that
enhance graphic technology. For example, one Old Spice ad has a half man half
horseusing their product. Theappeal used here and throughouttheir ads is humor
because it’s excellent model for getting and keeping attention of a target market.
Old Spice’s executional framework and appeals were so good it led to their sells
and market shares going up; as shown is the data listed below.
The third and last brand is Tide, its target market is middle class women, washing
clothes on their own,middle classbuyerswho cannotaffordpremiumproductsbut
aspire for equally good products. Since these individuals are the target market, P
& G uses coupon strategies with this product. For example their ads also have a
middle class female in it, who is washing her family’s clothes with a smile on her
face.
The executional frame work Tide uses in their ads are demonstration which
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typically focuses on the rewards provided by a brand's specific features, standards
and applicability. The idea is to make the new or foreign familiar by showing off its
properties and advantages. That’s why in their ads on TV and internet it shows a
middle class women using the product.
They use the emotional appeals which plays off Tide targeting their target market’s
feelings. They use this appeal because it creates a bond with the brand and a key
to developing brand loyalty. The media outlets to best use this appeal is television
and internet. Most importantly, this appeal works better when it’s tied with other
appeals.This is why,thebrandsofP & G is sosuccessfulusingtheexecutional frame
work along with appeals during their ads. These ads are done so well, it has made
them a market leader within their industry; as shown in the graph below.
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As you can see P & G and PepsiCo have very large diversified portfolios when it
comes to the brands they own and sell. In which they are both smart enough to
know, you can’t market all those brands the same way. So you can’t use the same
executional framework for Tide as for a brand like Old Spice. Just for the fact that
each brand has a very different target market and Industry.
These two companies are on the forefront of advertisement when it comes to
reaching their target market in a positive way. By using many different targeting
techniques over the past few years; along with acquiring more brands for their
portfolios will keep them in the forefront.
In sum, PepsiCo’s and P & G’s marketing departments has developed sure fire
techniques to displaying their products in the right light towards their deserved
target market. At this rate, they will remain powerhouses within their industries
for a long period of time.