Documente Academic
Documente Profesional
Documente Cultură
(15121014)
Review of
Marketing Plan
Industry Background
Size& Growth:
The beverage industry in Pakistan, currently having a size of little over 120
million cases per annum with an annual growth of around 10-15 per cent,
has the potential to double its size in the next 3-5 years.
Consumption of Diet Products and Bottled Water (20 cases per serve)
Political Analysis: In addition to a 16 percent sales tax, carbonated soft drinks are
subject to double taxation with a 50 percent input tax levied on soft drink concentrate
and a 12 percent tax on finished carbonated soft drink beverages.(THREAT)
Economical Factors: The cost of raw materials e.g. soda ash for glass
manufacturers, HDPE for plastic bottles and sugar have increased to further impact
the price of the cold product. Production of beverages (weight, 0.28%) declined by
3.7% as the prices of sugar, one of the key inputs in beverages rose sharply in recent
months.(THREAT)
Social Factors: Consumers and government are becoming increasingly aware of the
public health consequences, mainly obesity which is the second social factor in the
soft drinks industry. It inspired the company to venture into the areas of Diet colas and
zero calorie soft drinks.(OPPORTUNITY)
Company Snapshot
Brief Sketch
The market in Pakistan is surely dominated by Pepsi. It has proven itself to be the one of the
best soft drink in Pakistan. In 1971, first plant of Pepsi was constructed in Multan and after it
Pepsi is on its way to penetrate in the whole Pakistan by passing different milestone.
Pepsi began its operations in Pakistan with carbonated beverages in 1967, and currently has
eight bottling franchisees operating throughout the country. In addition to Pepsi and
Mountain Dew, they produce 7up and Miranda in the carbonated beverage category, and
Sting in the energy drink segment. Over the past decade, Pepsi has added snack foods and
fruit juices to its portfolio of products in Pakistan, which it manufactures primarily out of a
factory in Lahore.
Business Philosophy
Product Line
Sales History
Sales/Revenue
2010
57.84B
2011
66.5B
2012
2013
2014
65.49B
66.42B 66.68B
5-years
trend
Target Markets
Pepsi customers are mostly young group between the ages of 14 to 30 and
also target at School, Collages, Universities, Homes, Restaurant, Hotel and
Stores.
Market Shares
Coke claimed 35% of all cola sales in Pakistan while Pepsis market share
was 65%, down from a dominant 80% in the 1990s that it mainly gained by
sponsoring cricket.
Positioning
Product
Price
Place
Promotion
Product/Service Review
Category Review
The category of Pepsi twist fall in soft drink under soft drink there is
further category/sub category is Low calorie drink Pepsi launched Pepsi
twist in the category of low calorie with natural lemon flavor. To provide
refreshment at low calories. The calories content in Pepsi twist is 50% less
as compare to the regular drink.
Brand Review
Pepsi twist did poor campaign in Pakistan which was one of the main
reason for its failure. It just endorsed it through celebrities (Fawad khan,
Annie Khalid, Ummama Malik) regardless of the fact of its actual message
which must have been catered in the ads. No functional benefits were
discussed in the ads. The ads were purely celebrity endorsed.
Pepsi Twist never had the level of sales that was PEPSI known for. Unlike
PEPSIs market share Pepsi twist had the least market share. It was one of
those products of Pepsi that never lifted up and the main reason for this
was its poor availability and poor marketing. Its already in the declining
stage so there is no growth and sales figures available to be exact. Its sales
is just limited to the Supermarkets.
Attractive Packaging
Low Availability.
No attractive marketing.
Strengths
Weaknesses
Threats
Key Benefits
Less caffeine
Lemonade flavor.
Refreshing Taste.
Brand Image
Pepsi twist has positioned as a soft drink with lime flavor but this same image has
not been transferred in the minds of the consumers. Consumer perceive it as a
diet drink because of its low calorie and caffeine content. Moreover the other
variants in the same brand under the brand name Pepsi light has added to this
confusion.
Positioning
The positioning of Pepsi Twist in the consumer mind is done by the following ways
Competitive Review
Indirect Competitors
lemon up by Gourmet
Juices brands
Fanta citrus
Lemon up
Lemon malt
urban areas.
occasions, parties
Fanta citrus
Lemon up
Lemon malt
Acceptability
Affordability
Gourmet main focus is on affordability
because it is targeting the middle/lower
class
Affordability
Fanta Citrus guarantees it offers the best
price in terms of value for money
Availability
Making sure that Fanta Citrus is available
anywhere people want refreshment, a
pervasive penetration of the
marketplace.
Variability
Murree brewery main focus is to provide
variety of product to cater a numerous
customer.
Availability
Gourmet is trying to penetrate over the
Pakistan and recently the gourmet has
opened its branches
GOURMET LEMON UP
TAGLINE
Thandak ka ehsas
Refreshing
Positioning
Positioning
Positioning
Superior in Price
Affordable Price
Refreshing taste
Quality
Quality
Superior Quality Brand Name
Price
Place
Promotion
Product
Fanta Citrus
Features such as
and supermarkets.
and campaigns.
been carefully
The price of all the colas of Available in all urban areas of The advertisement of gourmet is
relatively low
comparatively, Gourmet
lemon up price is also
relatively low.
Lemon malt
print ads.
been carefully
considered a premium
through exclusive
brand.
distributors.
Fanta
Citrus
Focusses on teen age, youth and children and position the brand
as Masti Ka Naya Flavor. Fanta Citrus provides the escape from
the "everyday mundane
Emotional appeal in the message connects with customers &
prospects at the affective level & moves them to respond with
feelings."
Television
Fanta citrus
Use extensive television ads to
Lemon Up
No specific ad on Lemon Up
convey their message with the help of particularly displayed by far on T.V
Lemon Malt
Use television ads to
promote their products.
product offerings.
message.
citrus.
media.
Bill boards Cover full size bill boards on important The most popular medium for
billboards.
this medium.
Strength
Weakness
Fanta citrus
Brand Image
Quality
conscious people
Supplier relationship
Lemon up
Organized Structure
Lack of advertisement
Computerized Database
Understanding of Customers
Punjab
No distribution channels
lemon malt
Availability
Brand image
Buyer Analysis
User Profile
Demographics
Characteristic
Aging
15-45 years
Education
Religion
Gender
Geographic
Details
Characteristic
Region
Details
Asia
Country
Location
Psychographic
Details
Social Class
Interest
Socializing
Social status
Characteristic
Behavioral
Pepsi twist is used according to the thirst and if the users is frequent buyer then user may
uses the product two to three times a day.
Needs Recognition
Information search
Evaluation of Alternatives
Purchase Decision
Post-purchase evaluation
Who Influence Decision (Friends, TVCs, Word of Mouth and family are the
main influencer in the purchase decision)
Who make the Decision (The decision maker in most of the cases is the
consumer itself)
Decision Criteria (The decision maker in most of the cases is the consumer
itself)
Marketing Goals
To increase market share by taking competitive advantage to
gain customers from established competitors.
To acquire new customers in an effective way to gauge a
marketing plan's contribution to growing market share.
Using advanced point-of-sale systems to retain maximum
customers. (Using customers' telephone numbers or other
information to track purchase behavior).
Growing sales numbers relative to market growth of soft drinks
to gain maximum profit.
Maximizing the cost efficiency of sales promotions, public
relations activities and advertising. (To achieve marketing
strategies in a cost effective way).
Target Market
Geographic Variable
Demographic
Psychographic
Behavioral
World Region/
Country: Asia
Age: 15+
Occasion: Regular,
Occasional, light
Country Region:
Pakistan
Benefits: Convenience,
Economy, Quality
Personality: Cool,
Youthful
Occupation: Students,
Professional & Technical,
Managers, Officials,
Households, Supervisors,
Clerical etc.
Direct Marketing
Pepsi Twist Offered throughout
Sales Promotion
No extensive sales promotion other
message.
very limited.
Television
Pepsi Twist used television ads to
Print
Used message Pepsi with a squeeze
Bill board
Covered full size bill boards on
Media Strategies
Pepsi Twist as a specific brand has not were conveyed via newspapers and
Sunday magazines.
years.
on billboards.
Message Strategy
Pepsi twist primarily used affective message strategy. The ads were made to evoke liking,
positive emotions, and favorable feelings towards the product and the company who sell it.
No ads focused on physical attributes of the soft drink. No functional benefits of the
product is being discussed in the ad.
Promotional Mix
Media Strategies
Message Strategies
limited time.
Messages were made to evoke liking, positive
Corporate Strategies
Corporate Image Strategy
Corporate image, or reputation, describes the manner in which a company, its activities, and
its products or services are perceived by outsiders.
The image of Pepsi twist should include its functional characteristics for example Pepsi twist
has low caffeine, it is also available in light flavor, it has low calories as compare to the
regular dinks and have a great taste with the flavor of lemon.
Distribution strategy
One reason for product failure was the less availability in retail outlets and
currently it is only available in the supermarkets, to overcome this problem
there should be Intensive distribution of Pepsi twist whose aim must be to
penetrate the most in the market by using all available outlets.
We suggest Pepsi Twist to offer attractive trade promotions even at the expense of
their profit to start with. They must offer attractive margins to retailers and distributors
to make their brand available in the maximum places so that they can achieve a
higher market share.
For effective public relation regarding the Pepsi twist we suggest that there must be
collaboration with influencers because the best way to earn credibility is to have
people of influence who tell others why they appreciate your product or service.
Friends, peer group and family members can be the influencer regarding the Pepsi
twist. One way to do is sponsoring events in colleges and universities as it represents
greater chunk of target audience.
Evaluation
We can measure the corporate strategies with surveys, questionnaire, and word of
mouth and one to one interviews and compare it with benchmarked objectives.
IMC Objectives
IMC Budget
Components
Estimated Budget
Advertising
R.s 10 million
Sales Promotion
Public Relation
R.s 1 million
Direct Marketing
R.s 3 million
Personal Selling
Total
18 Million
Campaign Objectives
First of all increase the awareness level of the consumers with in our target market
by 50%. There were very few ads of Pepsi twist when it originally launched in
Pakistan so most of the people were unaware of the product so the foremost
objective of this campaign would be to increase the awareness level to 50% within 3
months by aggressively running our campaign.
The secondary objectives followed by this would be to educate customers about the
product, to make the product the preferred one when it comes to the category of soft
drink and ultimately to induce the customer to take action i.e. purchase and increase
the sales by at least 35 % within 6 months.
Strategies
To achieve Awareness Objective, we will try to engage maximum of our target audience
that is mostly youth by sponsoring event held at schools, colleges and universities like
Fun Fair, sports Gala etc.
As this is the age of information technology people love to socialize so for that purpose
we will use social media for that, we will create pages on Facebook, twitter and will
engage with the people to create maximum of the awareness.
Availability plays a key role because when everything is achieved but the product is not
available it does not make any sense and it was also one of the many reasons why
Pepsi twist failed in Pakistan so to induce the customer to purchase the product we
suggest to make the maximum availability of the product in the market.
Positioning Strategy
Whenever our product will be reminded by the target market. We want our
product reminded on the basis of functional characteristic (Pepsi twist with low
caffeine, calories and have great taste of lemon or refresh yourself with the
flavor of lemon)
Positioning Statement
Pepsi twist with low caffeine, calories and have great taste of lemon. Or
refresh yourself with the flavor of lemon
Campaign Theme
Creative Recommendations
Target Audience
Our target audience are all those customers who looks for lemonade flavor, they are very
sensitive to the calories, caffeine content and they are very conscious about their health, at
the same time they want to refresh themselves. Mainly our target audience is youth and
professionals age between 15-35 years.
Advertising Strategy (To attempt to communicate the benefits of product by defining its
functional characteristics)
Advertising Appeals (Our ad will be animated which will infer the target audience as
brand appeal, youth appeal and play on words)
Execution
Storyboard
The ad will be theme based and it will display all the slogans of the Pepsi used in
different campaigns, specifically to the Pepsi twist the ad will contain the functional
characteristics of ad . The ad will end up with a new tagline of Pepsi twist.
Advertising Media
Recommendations
Target Audience
Objectives
Strategy
As our product is targeted to youth and primarily to those individuals who want
refreshment consuming less calories and our ad will also specifically focus on
functional characteristics of the product
Sponsoring the programs that focuses on health related benefits in which people
are very much keen to use products that will not impact in greater calories content.
We will be using billboards as they reach more people for a rupee than any other
media at important places of the cities.
Outdoor advertising/billboards (These reach more people for a dollar than any other media)
Broadcast Television (Consumers feel more comfortable with brands that advertise on television)
Online Advertising (Internet ads can be viewed by millions of people while being displayed all
day and nigh)
Geographic Scope
As Pepsi is the multinational brand and Pepsi Twist comes under it so the Geographic scope will be the
entire Pakistan but in order to launch it again with a new look we will be focusing much on the biggest
province of Pakistan in terms of population i.e. Punjab.
Assuming that the Pepsi twist accounts for 2.5 % of the this sale in Gujranwala
Gujranwalas population is 1.88% of Pakistan
So BDI for Pepsi Twist
2.5/1.88=1.38%
Medium
Media Vehicle
Campaign Period
Cost
(Rs)
T.V
Entertainment
GEO TV
3 Months
2.75 million
Online
Facebook, Twitter
6 Month
0.25 million
Billboards
Shalimar
3 Months
1 million
Advertising
Outdoor
Advertising
Advertising
Target audience
Objectives
Our sales promotion main objective is to increase the purchase intention toward the
Pepsi twist by the target audience.
Technique
Free Sampling
Discounts
Sales promotion will be mainly based in summer season because the demand for
drinks increase in summer, sales promotion will be limited time with respect to budget.
Rationale
Rationale for free trial and joint promotion is that our target audience is youth, they
look for something new and we are launching the product again so in this way it is
important for company to tie up the product with already established product so that
its worth can be increased. There is increment of demand in summer so discounts will
provide an opportunity for consumers to try the product thus generating sales for the
company.
Budget
The budget in the above section for sales promotion is stated Rs 2.5 million. We are
allotting of 40% for customer which is Rs 1 million.
Target Audience
Objectives
Technique
Off-Invoice Allowances in this we will allow wholesalers and retailers to deduct a set amount
(10%) from the invoice.
Buying allowance in this we will offer discount for bulk purchasing 10% to 25%.
Display and advertising allowance in this we will offer 5% discount it will be offer when the
retailer will arrange the product display in a prominent place.
Sales promotion for distributors will vary depend upon the purchasing like if an distributor
purchase/sale the stock then the discount will be given. The range for discount will be 10% to 25%
with respect to purchase/sale of Pepsi twist.
Rationale
Rationale for selecting the main distributors and retailers is that when you launch
again the product, we have to push and it is only possible through the traders by
offering them the discounts. In this way to they will put the effort for Pepsi twist.
Budget
The budget in the above section for sales promotion is stated Rs 2.5 million. We
are allotting 60% of sales promotion budget for traders which is Rs 1.5 million.
When you launch again the product, we have to push and it is only possible
through the traders by offering them the discounts. In this way to they will put the
effort for Pepsi twist.
Target Audience
Objectives
Media Type
This direct marketing plan will be launch from JUNE to AUGUST as in these months
summer season is on its peak and also Ramzan will be in these months. The consumption
of drinks/beverages increase in Ramzan and we think as it is best time to launch the
campaign. As also our objective is to increase the sales of product (Pepsi twist).
Rationale
The rationale for using the direct marketing is that it is highly targeted, cost effective and
we can measure the response.
Budget
The
budget allocated for direct marketing in 0.1
theMillion
Overall
IMC budget is 3 million.
Electronic Catalogue
approx. (Eden Robe Reference)
Electronic Direct Marketing/ Email
Infomercial
Internet/Interactive
Recommendation
Target Audience
Objectives
To create a buzz
To gain consideration
To generate interest
To create awareness
Strategies/Executions
The strategy would be to create pages on social websites and engage maximum of
the target audience cost effectively. Moreover blogs will be created to interact with
the target audience to answer their queries and try to engage them with the product
related discussion as possible.
Rationale
The rationale for using this tool is very simple as it is the most cost effective one and
it will reach the maximum of the target audience. People of every age in todays era
are very much socialize and love socializing. It is also one tool that will generates
maximum word of mouth.
Budget
Public Relations
Recommendations
Target Audience
Objectives
Strategy/Execution
Scheduling/Plan
The scheduling/plan of public relations will mainly depend upon the events organized
by the different colleges and universities but sponsorship for different events will be
offered only in summer season because it will give the chance to youth to taste the
new flavor.
Rationale
Rationale for events sponsorship in different college and universities is that because
there is huge chunk of youth, it will also contribute to our objective and give chance to
youth to taste the new flavor. In this way the particular product will get an image in the
mind of costumers.
Budget
Personal Selling
Recommendations
Target Audience
Objectives
Strategy
Rationale
The rationale for using personal selling is that as our product i.e. Pepsi twist is
already in declining stage so it requires personal demonstration and convincing so
that super stores and other retail outlets may cater it and give our product the
needed shelf space required. In this way not only its availability but also its
visibility would be high.
Budget
The budget allocated for personal selling is Rs 1.5 million which will be for the
salaries of the sales personnel and other miscellaneous expenses related to selling.
2.Sales
Promotion
3.Direct
Marketing
4.Personal
Selling
5.Public
Relations
Include: Consumer
Include: Electronic
Include: Ad, Out Door
Include: In this our sales Include: Corporate
Promotion
(40%
of
2.5
Catalogue,
Mailing
List
Billboards and Internet
team will go to different advertising (event
Million)
and
Trade
and
Infomercials
Budget: Rs 10 Million
stores and different super sponsorship)
Promotion
(60%
of
2.5
Budget:
Rs
3
Million
Ad: for 3 Months ad at
marts and try to convince Budget: Rs 1 Million
Million)
Electronic
Catalogue:
GEO from March to June,
the customer to try Pepsi Corporate advertising:
Budget:
Rs
2.5
Million
This
will
be
available
at
6:00 Pm to 9; 00 Pm, One
Twist.
In Corporate advertising
Consumer
Promotion:
the
official
Website
Time in a day
Budget: Rs 1.5 Million
there will be event
Coupons
after
submitting
Mailing
List/SMS:
Billboards: City
sponsorship. There will be
feedback
at
face
book,
Mailing
list
will
be
bought
(Quantity) Karachi (10),
20 events offered as
Free
Trials
in
different
from
different
agents
and
Lahore (5), Islamabad (5),
sponsors to different
universities,
Joint
Message
will
be
also
sent.
Peshawar (5), Quetta (5).
universities in Karachi (5),
Promotion
with
lays
family
Infomercials:
This
will
be
Internet: Face Book,
Lahore (5), Islamabad (4),
Pack,
10%
Discount
for
played
on
Geo
because
Twitter
Peshawar (3) and Quetta
limited time
Geo has more viewer base
(3). In which the Printing
Trade Promotion: off as compare to other
Flex, Opening, and closing
invoice 10%, Bulk Buying channels 30 minutes.
refreshment of Pepsi twist
allowance, Discount for
will be included.
Shelf Space 5%
The following measures will be used for Evaluation for different IMC related
activities
Activities
Advertising
T.V
Outdoor/Billboard
Internet Interactive
Evaluation Measures
Sales Promotion
Trade
Consumer
Direct Marketing
Electronic Catalog
Direct Mail
Infomercials
Personal Selling
% increase in Availability
% increase in Shelf spacing
Public Relations
Sponsorship Marketing
Image rating
Costing (RS)
Costing Breakdown1
(RS)
Advertising
T.V
Outdoor/Billboard
Internet Interactive
63,00,000*
30,00,000*
3,00,000*
May-Aug (3 months)
Mar-June (3 months)
18750 Likes unlimited time
70000*30*3=63,00,000
40,000*25*3=30,00,000
300000/16 =18750
Sales Promotion
Trade
Consumer
15,00,000*
10,00,000*
Direct Marketing
Electronic Catalog
Direct Mail/SMS
Infomercials
1,00,000*
2,00,000*
21,00,000*
Personal Selling
15,00,000*
Public Relations
Sponsorship Marketing
*10,00,000
Unlimited
Cost of making of Catalog
3 Months
Agency Charges of Mailing list
One time (Geo) in between T.V 70000*30 = 21,00,000
Ad Duration
Labor cost
Transport cost
Depend on University events
50,000 for 20 events