Pepsi Cola Brand Architecture

PepsiCos brand portfolio is made by hundreds brands in nearly 200 countries

around the globe. PepsiCo is involved in soft drink but also in other product
such as snacks. The firms main brand is Pepsi-Cola, which is well known all
over the world thanks to its long history of 100 years. The company owns other
divisions such as Frito-Lay that are continuing to grow snacks all over the
world. Tropicana Products is another division of PepsiCo which is committed to
produce and market fruit juices. Quaker Brands are a wide range of healthy food
choices whereas Gatorade is a division involved in sports nutrition research. It
can be seen that PepsiCos brand portfolio includes plenty of brand but not all of
them are related to soft drink (Bremner, 2006).
Pepsi produces a range of food staffs which are a total of about 20 beverages
with Pepsi-cola and 7Up being a amongst it highest selling brands in the United
states common amongst persons of all ages. Gatorade is now a beverage brand
which came about after the merge of PepsiCo and one of its competitors the
name however still remained despite it being produced by a different company
and also in this was Tropicana (Byrnes, 2010). The other division is that of the
food and snacks such as Mirinda, Kurkure; Red Rock including a number of
others all which are distributed all over the world.
A sub brand can allow a master brand with too broad an appeal to access niche
segments. For example, Pepsi with hit huge, broad brand basically hit a wall and
needed to create sub brand around the Pepsi (John, et al. 1998). By this it means
that Pepsi as a beverage grew from the competition from which it received and
this prompted it to come up with new products to counter it. Coming up with
sub brands makes it easy to have more identity to the main by also having a
huge range to pick from and increase purchase of its products (Bremner, 2006).

Examples of companies with strong brands that are wary of brand

cannibalization are Coca-Cola and Pepsi Co. Besides being amongst the top
brands, when venturing into other sectors of the business, they come up with
new brands rather using the same names for all. This way, the business expands
on an array of products by having a novel item at all times. Brand extension this
is the way in which a company decides to adopt different market in a new
category other than one that is used often and can be good for the creation of
stability and worth of the company (Bremner, 2006). The above part shows
ways in which in venturing other markets one does not take up the same name
but is best to have a different name.

The companys branding systems has enabled the company to penetrate to

different parts of the world (Keller, & Aaker, 1992). The core similarity between
Pepsi and Coca-Cola on branding lies on the companies deployment of hybrid
system in marketing its products around the globe (The Editor, 2010). However,
Pepsi employs unitary mode of brand architecture where marketing of its
products reflects the company image through the established marketing
techniques by the corporate (James, 2006). The fact that the company has
managed to establish a brand system in various countries that it operates
indicates its strength in creating a unified mode of operations identi9fied with
the company. The promote establishment of a harmonizing organizational
culture that reflects structure established in various institutions to propel sale
and the entire company to greater heights.
The hybrid system in the market is one that aims at venturing all markets and
getting what is best in a competitive market. The marketing also involves
marketing by having in their refrigerators only their respective brands of
products and in this way maintain a healthy and competitive environment.

Having as many distribution outlets as possible is enough to create a venture

that is more suited to the customers convenience (Humperson, & Quandt,
1980). This also includes the involvement of a strategic advertisement of using
different celebrities in their advertisement as one way that can increasingly
change the attitudes of the consumers the neck to neck competition will be more
of the increased profits.

Brand Equity
Analysis of brand recognition study Natasha kashni says that The beverage
industry has been rapidly expanding over the last century, and currently includes
avariety of smaller beverage markets. Functional Beverages have been the
newest addition to the beverage industry and Function Drinks is only one of the
major companies operating in this market segment. The objective of this study
is to assess the current level of brand recognition for Function Drinks among
college consumers.
The main focus behind this research is to assist the company increase the level
of consumers brand identification for their company and products through
various forms of marketing, advertising, and promotional strategies. It is in the

best interest of the company to analyze the data collected and offer insight that
will not only increase the level of brand identification, but inadvertently
Increase the profitability of their company.
The differental effect of celebrity and expert endorsement on on consumer risk
perception This article focuses on the effects of celebrity and expert
endorsements on the perception of risk on the part of consumers. It is theorized
that expert endorsers will have a stronger effect than celebrity endorsers in
reducing a consumer's sense of risk regarding high technology-oriented items.
An interaction effect between the type of endorser and consumer knowledge on
risk perception is expected. This interaction is thought to be absent for products
with a low-technology orientation. Two studies demonstrate these findings. In a
third study, a stronger effect of expert over celebrity endorsers for high
technology-oriented products is somewhat neutralized for certain types of
perceived risks when there is a strong connection between the celebrity endorser
and the product.
Study on Impact of Celebrity Endorsements on Brand Image byDebiprasad
Mukherjee

2009 says that Celebrity endorsement has been established as one

of the most popular tools of advertising in recent time. It has become a trend
and perceived as a winning formula for product marketing and brand building.
It is easy to choose a celebrity but it is tough to establish a strong association
between the product and the endorser. While the magnitude of the impact of
celebrity endorsement remains under the purview of gray spectacles, this paper
is an effort to analyze the impact of celebrity endorsements on brands.
Objective of this article is to examine the relationship between celebrity
endorsements and brands, and the impact of celebrity endorsement on
consumer's buying behavior as well as how consumer makes brand preferences.
This paper proposes a 20 point model which can be used as blue-print criteria

and can be used by brand managers for selecting celebrities and capitalizing the
celebrity resource through 360 degree brand communication which, according
to this paper, is the foundation of the impact of celebrity endorsement. Celebrity
endorsement is always a two-edged sword and it has a number of positives - if
properly matched it can do wonders for the company, and if not it may produce
a bad image of the company and its brand.

The Impact of Celebrity-Product Incongruence on the Effectiveness of Product

Endorsement.:research paper byLee, Jung-Gyo
different

degrees

of

celebrity--product

this study examines how

incongruence

influence

the

persuasiveness of celebrity endorsement. Schema-congruity framework

provides the theoretical basis for suggesting that a moderate mismatch between
a celebrity's image and a product's image would produce more favorable
responses to advertisements than either a complete match or an extreme
mismatch. This study also looks at how consumer characteristics, namely an
individual's own levels of enduring involvement with a product category,
moderate schema congruity effects. Two experiments were conducted to test
these issues using two types of match-up factors: physical attractiveness and
expertise of a celebrity endorser. The results show that celebrity endorsements
are evaluated more favorably in terms of purchase intention when there is a
moderate mismatch than when there is either a complete match or an extreme
mismatch..
A Study on the Effect of Cause-Related Marketing on the Attitude Towards the
Brand: The Case of Pepsi in Spain.:by Garcia, InakiGibaja, Juan J.Mujika,
Alazne Examines the effect of cause related marketing (CRM) on attitude
towards the brand. Effectiveness of CRM in differentiating brands; Analysis of

Pepsi's CRM campaigns in Spain; Factor that would make CRM campaigns lead
to adverse effects.
Simon, Carol J.Sullivan, Mary W. in their research paper of The measurement
and determinants of brand eqiuity : A financial in This paper presents a
technique for estimating a firm's brand equity that is based on the financial
market value of the firm. Brand equity is defined as the incremental cash flows
which accrue to branded products over unbranded products. The estimation
technique extracts the value of brand equity from the value of the firm's other
assets. This technique is useful for two purposes. First, the macro approach
assigns an objective value to a company's brands and relates this value to the
determinants of brand equity. Second, the micro approach isolates changes in
brand equity at the individual brand level by measuring the response of brand
equity to major marketing decisions. Empirically, we estimate brand equity
using the macro approach for a sample of industries and companies. Then we
use the micro approach to trace the brand equity of CocaCola and Pepsi over
three major events in the soft drink industry from 1982 to 1986.
Aurgon 2002

presents information on the top sports endorsers in 2002

compiled by Burns Sports & Celebrities. Golfer Tiger Woods made $70 million
last year from appearances and endorsements. He is the number 1 endorser in
terms of popularity with advertisers and income earned annually, says Burns
President Bob Williams. His past and present endorsements include American
Express, Accenture, Buick, EA Sports, Nike, Rolex, Tag Heuer, Target, and
Titleist. Basketball player Michael Jordan at his peak could pull in $50 million a
year in endorsements. Present and past endorsements of Jordan include, Ball
Park Franks, Gatorade, Hanes, McDonald's, MCI WorldCom, Nike and
Rayovac. Tennis trophies have eluded the 22-year-old tennis player Anna
Kournikova, but endorsement deals have not. Her past and present
endorsements include Adidas, Berlei's Multiway sports bra and Xbox.

Basketball player Shaquille O'Neal's past and present endorsements include

Burger King, Digex, Electronic Arts, Microsoft, Nestle, Pepsi-Cola, Radio
Shack, Reebok, Spalding, Starter and Taco Bell. Skateboarder Tony Hawk's past
and present endorsements include Activision, Coca-Cola, Diet Mountain Dew,
Frito-Lay's Go Snacks, Gatorade, H.J. Heinz Companies' Bagel Bites and Hot
Bites, McDonald's, Pepsi-Cola, Quiksilver.
WOW! YAO!
Lowry, TomRoberts, Dexter Focuses on Yao Ming, who is going into his third
season with the NBA. The potential of the Houston Rockets center who was
born in Shanghai; His popularity as a spokesman for various products, including
Pepsi; How he spent his 24th birthday with coach Anthony Falsone; Idea that he
could influence bilateral trade between the United States and China; The timing
for Yao to promote products in China; His "star power"; Purpose of the two
NBA preseason games against the Sacramento Kings in Shanghai and Beijing;
Concern that Yao could be overexposed; Career highlights with the NBA; Deals
he has made in the United States and China; Managers of the Yao enterprise:
Bill A. Duffy, Bill Sanders, John Huizinga, M. Erik Zhang; The five-year
marketing plan of Team Yao; How the team developed at a business school; Yao
Ming's views on his earning power; Indication that he lives in a gated
community in Houston; The agreement he had to make with China in order to
play in the U.S. INSETS: RED STARS RISING;YAO MING;THE YAO
EFFECT.

Pepsis Marketing Strategies

Pepsis approach is radically different from that of Coke; Pepsi has gone in for
concentration segmentation. Pepsi has targeted the youth segment instead of
trying to be something to all segments.Pepsi has since beginning strove to
achieve its international position as `a drink for the new generation in India.
Helped by HTAs forceful visuals and creative, Pepsi has been successful in
positioning itself for the younger generation.
Selling Process
Pepsi has a very well managed selling system. It takes as lot of care to
ensure that the products (Pepsi bottles) are available to the consumers. Pepsi
soft drinks are produced in our plant in different SKUs (Stock keeping units)
and distributed to our distributor and they further supply to the retailer.
Sahibabad (GZB) has been divided around 14 routes which are called direct
routes. For every route there is a Routs Agent. Route Agent moves with the
company owned truck and ensure that maximum shops are covered each day, so
that regular supply of Pepsi soft drinks is made. Routs agents take the order
from the shopkeepers and then with the help of loaders they give the required
number of crates to the retailer or shopkeeper & then move to next.Our plants
also have some agency in each rout. They supply in the areas where Pepsis
trucks are not able to reach. These areas are called indirect-routes.

Pepsi Targeting & Positioning

Targeting:
Pepsi has historically targeted a young audience especially since the 1980s
.Many of their ads were usually aimed at teenagers and even younger groups by
introducing fun, sports and music in their ads. But ,Pepsi also attracts other age
groups not only teens .
Positioning:
Firstly the Pepsi in America try to position its product for the society as whole
and for the purpose of refreshment, which can be clearly visible from their
advertisement slogans like any whether is Pepsi whether the light refreshment be sociable, have a Pepsi
This positioning strategy they followed up to 1960 and after analyzing that it is
very difficult to capture whole population as whole. So Pepsi after 1960 started
targeted marketing and choose a different way to promote and to attract new
customers by using huge marketing campaigns along the years and creating
brand personality associated to the adventure.Pepsis goal is Attract a certain set
of customers to buy the product by associating itself with young people who are
energetic, fun loving and daring.

In 2012, Mr. Jakeman (president-global

enjoyment and chief creative officer)
said, Coke represents happiness and
moments of joy, while it protects
culture and maintains the status
quo. Pepsi, on the other hand,
creates culture and embraces individuality. For Pepsi loyalists, leading an
exciting life is much more important than leading a happy one, Mr. Jakeman
said.
Those insights led Pepsi to embrace a brand positioning to "capture the
excitement of now," and the campaign that has been developed carries the
tagline, "Live for Now." It's already proved a potent rallying cry.
News of the "Live for Now" campaign began to spread last week, and the first
spot, featuring a cameo from performer Nicki Minaj, is set to be released May
7. Pepsi Pulse, a company-curated "dashboard of pop culture" ranking tweets,
photos and news items from the entertainment world, has replaced Pepsi.com.
There's already a feeling among those close to the brand that something big is
happening.
The positioning and campaign indicates a change, as Pepsi recaptures leading
consumers rather than trying to put up with trends, according to Ms. Warrier.
"We will need to invest in capability, in foresights and dynamic trend-spotting,
design and creating social communities," she said."The new positioning injects
new energy into not only the brand but the people who work on it," giving them
a license to experiment with "exciting new initiatives," said Richard Lee, CMOPepsiCo China. "Who doesn't want to work on a brand that promises to capture
the excitement of now?"

Pepsis Brand positioning has finally always been as a refreshing cola drink for
the youth, ubiquitous on just about every social occasion. The positioning has
remained same since its inception in 1898. "The brand positioning was
prompted primarily by the market segments largely untapped by coca cola
(young generation) and its sweet sugary taste suited for its young consumers",
Keller said. Thus it was able to create a Point of difference from Coca cola.

Conclusion
After analyzing the fact we came to the conclusion that PEPSI is growing
day by day. This conclusion is based on overall information collected from
various distributors, retailers, markets and consumers. They are having an edge
over other soft drink producer in the market. They are doing very good in the
current scenario, but they need some object oriented and bit dynamism in the
strategy in the outskirt.
The company just needs to reform its rules, create more global awareness,
change its policies in favour of more opportunities & encourage its major
players to invest in the companies.
However, the company, if concentrates on the following factors will be able
to face tough challenges:
Technology
Quality
Brand competition
Price competition
Good balance between production and sales
Different preferences for products by different age groups
R & D capacity
Distribution Network
Pre-Sales services
After-sales services
Thus the company has an upcoming bright future in the future years.

Bibliography

Sites Visited
www.google.com
www.pepsico.com
www.domain-b.com
www.yhaoo.com

Books Referred
Marketing Management by Kotler, Killer, Koushik and Jha
Marketing Management by Piter Dacken
Marketing Strategy Magazine
Marketing management Magazine
C. R. Khothari