Pepsi is a soft drink produced since the 1890s and is now a large multinational corporation. It is sold worldwide and has numerous brand extensions. PepsiCo was formed through mergers and acquisitions and has over 180,000 employees globally. Pepsi targets younger consumers with hip advertising campaigns featuring popular celebrities and focuses on music, humor and sex appeal. It has had successes and failures expanding internationally and competing against Coca-Cola.

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2. Profile…
 Pepsi is a soft drink produced and manufactured by PepsiCo. It is sold in
many places such as retail stores, restaurants, schools, cinemas and from
vending machines. The drink was first made in the 1890s by pharmacist
Caleb Bradham in New Bern, North Carolina. The brand was trademarked
on June 16, 1903. There have been many Pepsi variants produced over the
years since 1898.
 PepsiCo brands are available in nearly 200 countries and territories. Many
of PepsiCo's brand names are over 100-years-old, but the corporation is
relatively young. PepsiCo was founded in 1965 through the merger of
Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo
merged with The Quaker Oats Company, including Gatorade, in 2001.
 PepsiCo (symbol: PEP) shares are traded principally on the New York Stock
Exchange in the United States. The company is also listed on the
Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has
consistently paid cash dividends since the corporation was founded.
 PepsiCo World Headquarters is located in Purchase, New York,
approximately 45 minutes from New York City.

3. Cont…
 Revenues in 2007 is more than $39 billion.
 37 bottling plants in India, of which 16 are company owned and 21 are
franchisee owned.
 PepsiCo’s Frito Lay snack division has 3 state of the art plants.
 It has more than 185,000 employees across the world.
 In India, PepsiCo provides direct employment to 4,000 people and indirect
employment to 60,000 people including suppliers and distributors.
 CEO : Ms. Indra K Nooyi
 India Headquarters : Gurgaon.

4. Brand Image of Pepsi
 Pepsi is a brand that every youngster relates to.
 But this definitely doesn’t mean that other age groups are not it’s user’s.
 Thus Pepsi’s brand image is it’s hip, cool, lively and refreshing attitude.

5. Advertising Strategy of Pepsi
 Pepsi’s target audience are mostly teens and young adults and their
advertising reflects this in every possible way.
 The company changes its advertising strategy and image to reflect the target's
interests.
 Pepsi makes sure that the advertisements reflect to the target audience’s
interests and nostalgia.
 The advertising strategy includes cool, hip promos to attract more of the target
audience.
 The advertising is mostly creative and has different elements like music and
sports other than bollywood.
 Pepsi.com also plays an important role in advertising and attracts target
audience by giving access to options like downloads, gaming, music mixing
applications etc..

6. Advertising History
 Pepsi has continuously focused on the current teen generation.
 How Pepsi has used humor, music, sex appeal in advertising.
 Ad expenditures for 2001 is $ 1,800,000,000

7. Slogans
 1939 - “Twice as Much for a Nickel”
 1950 - “More Bounce to the Ounce”
 1958 - “Be Sociable, Have a Pepsi”
 1961 - “Now It’s Pepsi for Those Who Think Young”
 1963 - “Come Alive, You’re in the Pepsi Generation”
 1967 - “(Taste that beats the others cold) Pepsi Pours It On”
 1969 - “You’ve Got a Lot to Live, Pepsi’s Got a Lot to Give”
 1984 - “Pepsi. The Choice of a New Generation”
 1985 - “New Generation” advertising continues
 1992 - “Gotta Have It”
 1993 - “Be Young, Have Fun, Drink Pepsi”
 1997 - “Generation Next”
 2000 - “Joy of Cola”

8. International brands….

9. North American brands…

10. Generation Y- Market Influence
 Huge market – 80 million people
 Spending power – 600 million annually
 Many Geb Yers do household grocery shopping
 90% parents say kids influence what they buy
 Many work and have their own money to spend
 They have proven to be brand loyal

11. Advertising campaigns

12. Michael Jackson
 Michael received the biggest sponsorship from
the company in 1993.
 In 1993 Pepsi had a “Search for Michael
Jackson” campaign.
 Used musical and sex appeal.

13. Jeff Gordon
 Made a commercial with Hallie
Eisenberg
 Sells many Pepsi collectable
merchandise.
 Drove the Pepsi car in races

14. Hallie Eisenberg
 First appeared in a Pepsi commercial in
1998 at age 5
 Introduced the “Joy of Cola” campaign.
 Starred in commercials with Faith Hill,
KISS, and Ken Griffey Jr.
 Her commercials used humor.

15. Spice Girls
 Promotional single “Move over” available
only through Pepsi.
 Used musical and sex appeal.
 As international stars they affected many
countries

16. Issues
 Hard to differentiate product in terms of taste as product
variety is very limited within cola based beverages.
 Coca-cola has such a strong base of loyal customers, who
identify with the cola brand.
 Consumer tastes are changing, away from carbonated drinks
towards functional soft drinks. (Mintel, et al. 2009)

18. Pepsi’s Successes and Failures in
Brazil and Germany
 PesiCo has been operating in Brazil since 1953
 “Pepsi’s heavy new investment in Brazil, which actually started early this
year, is funneled through a joint venture with Baesa, a bottler based in
Buenos Aires that operates in Argentina, Chile, Costa Rica and Puerto
Rico.”
 PepsiCo in Germany made a smarter move by acquiring Punica, Germany’s
premiere juice provider.
 PepsiCo is one of the world’s largest manufacturer, seller and distributor of
beverages
 Pepsi has very limited brands in Germany.
 Their struggles in Germany include Coca-cola and a rash of suicidal
commercials for Pepsi Max that depicts a single lonely calorie committing
suicide.

19. Marketing Products and Services
 Taste testing
 Television, Billboard and Print Media
 Interactive/Web-based marketing

20. New Product Development
 Produce a range of ‘healthy’ alternatives
under the brand name ‘Pepsi Fresh’.
 Our suggestion would be a range of
Vitamin enrinched waters under the name
‘Pepsi Fresh’

21. Conclusion
 It can be seen then that differences do exist between Coca-Cola and Pepsi
Cola.
 This can be seen in the marketing variables which are the basis for
segmentation such as age and geographic variables.
 In a competitive market, both companies must identify and target different
market segments in order to remain at the cutting edge.
 Differences between the companies are evident with respect to product,
pricing, place and promotion.
 Coca-cola relies heavily on value: quality is more than something we see or
taste. (http://www.coca-cola.com).
 Pepsi, on the other hand, relies on its success resulting from superior
products and high standards of performance (http://www.pepsico.com).