A project on

“ANALYSIS OF ADVERTISEMENT DYNAMICS OF PEPSI COLA DRINKS WHICH CREATES

CONSUMER ATTENTIVENESS”

(Submitted in partial fulfillment of the requirement of Master of Business Administration, Distance

Education, Guru Jambheshwar University of Science & Technology, Hisar

Supervisor: Submitted By
Name : Ms. Esha Kataria Name of student: Aditya Kamra
Designation: lecturer Enrollment No: 06061237002
Netaji Subhash Institute of Management & Sciences Specialization: MARKETING

Specialization: MARKETING

Session: 2006-08
Directorate of Distance Education

Guru Jambheshwar University of Science & Technology, Hisar (INDIA)

 INDEX
1) INTRODUCTION AND RATIONALE OF THE TOPIC CHOSEN

2) LITERATURE REVIEW AND PROBLEM STATEMENT

3) OBJECTIVES AND RESEARCH METHODOLOGY

4) ANALYSIS AND INTERPRETATION OF DATA

5) CONCLUSION/FINDINGS AND RECOMMENDATIONS/SUGGESTIONS

6) REFERENCES/BIBLIOGRAPGY IN SPECIFIED FORMAT

7) APPENDIX
 CERTIFICATE

“CERTIFIED THAT THE WORK DONE BY THE CANDIDATE

IS ORIGINAL AND OF THE STANDARD EXPECTED
FOR A MBA STUDENT”

Name of Project Guide Name of Student

………………………… …………………………

Signature of Project Guide Signature of Student

…………………………… …………………………
 INTRODUCTION

PEPSI STRATEGY IN THE CARBONATED SOFT DRINKS MARKET:-

The following paper analyzes how PepsiCo can increase profitability in the carbonated soft drink
(CSD) industry. The industry is a stretched oligopoly with Pepsi and its chief competitor i.e. Coca
Cola which have 70% of the total market. Total sales for PepsiCo in 2000 were $7.6 billion but sales
growth has averaged only three to four percent in grown-up markets such as North America.
PepsiCo and Coke have expanded into other ready to drink beverages such as bottled water, tea, and
juices in order to counter this measured growth in the CSD industry for the purpose Pepsi will focus
on how to affect profitability in the CSD industry. There are many actions taken by PepsiCo
regarding differentiation, pricing, cooperation, and complements have affected their profitability in
the CSD industry.

Industry Overview: - Soft drinks are enormously popular beverages consisting primarily of
carbonated water, sugar and flavoring. A non-alcoholic flavored carbonated beverage usually
commercial prepared and solid in bottles or cans. Soft drink market size for FY00 was around 270
m.n cases (6480mn bottles). The market witnessed 5- 6% growth in the early‘90s. Presently the
market growth has growth rate of 7- 8% per annum compared to 22% growth rate in the previous
year. The market size for FY01 is expected to be 7000 mn bottles.

Soft drink production area:- The market preference is highly regional based. While cola
drinks have main markets in metro cities and northern states of UP, Punjab, Haryana etc. Orange
flavored drinks are popular in southern states. Sodas too are sold largely in southern states besides
sale through bars. Western markets have preference towards mango flavored drinks. Diet coke
presently constitutes just 0.7% of the total carbonated beverage market.
Growth promotional activities: - The government has adopted liberalized policies for the soft
drink trade to give the industry a boast and promote the Indian brands internationally. Although the
import and manufacture of international brands like Pepsi and Coke is enhanced in India the local
brands are being stabilized by advertisements, good quality and low cost. The soft drinks market till
early 1990s was in hands of domestic players like campa, thumps up, Limca etc but with opening up
of economy and coming of MNC players Pepsi and Coke the market has come totally under their
control. The distribution network of Coca cola had6.5 lakh outlets across the country in FY00, which
the company is planning to increase to 8 lakhs by FY01. On the other hand Pepsi Co's distribution
network had 6 lakh outlets across the country during FY00 which it is planning to increase to 7.5
Lakh by FY01.

Types:_
Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption.
Fountains also dispense them in disposable containers Non-alcoholic soft drink beverage market can
be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and
non-carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango drinks come
under non carbonated category.

The market can also be segmented on the basis of types of products into cola products and non-cola
products. Cola products account for nearly 61-62% of the total soft drinks market. The brands that
fall in this category are Pepsi, Coca- Cola, Thumps Up, diet coke, Diet Pepsi etc. Non-cola segment
which constitutes 36% can be divided into 4 categories based on the types of flavors available,
namely: Orange, Cloudy Lime, Clear Lime and Mango.

PEPSI ADVERTISING

Advertising is a common means used by many organizations or companies all over the world to
make their products or services well know and are easier to be sold. Every year many hundreds of
advertisements are published through out the mass media such as on billboards, on signs, on radios,
ration in newspapers, on television and internet, which are the main instruments, that we use and see
everyday. Although, there are not many successful products and not everyone remembers them but
PEPSI advertisings are different because most of their customers are repeat consumers. Therefore,
this report will discuss the advertising strategies of PEPSI and how it stands as one of the leaders of
the cola beverage industry.
For several years the main consumers of PEPSI were teenagers and young adults. Most of its
advertisings used teenager presenters or superstars who were hero of young people. Nowadays
PEPSI wants to gain more market share so it is extending its market by produce many rang of
product to suite every groups of consumer such as tea, coffee, water, energy drink and sport drink.
They also present many kind of taste of its products that make customers have more choice.

The industry for carbonated soft drinks is characterized by porter model:-

 Threat of New Entrants –Private label manufacturers such as Cott Corporation are
the major threats for entry faced co. Private labels now hold an 8.1% share in the CSD
market, the bulk of which is held by Cott. Now the main aim of Pepsi cola is to build brand
loyalty in their products so that consumers will not be influenced by the private label
imitations products because they are cheaper. Retailers are finding extreme more attractive
margins with private labels, so that they push the products instead of majors. The distribution
channels are currently one of the largest barriers to entry so it is very necessary for Coke and
Pepsi that they must maintain good relations with the huge retailers.

For both companies the end product is to promote the products through advertising
campaigns. The product differentiation comes from established marketing campaigns that
have formed brand identification and loyalties. For a new entrant to fight successfully, they
would have to be ready to expend the time and resources necessary to convince the consumer
to try the new product. The threat of new entrants is partially increased by the low switch
costs for consumers. Thus, the overall threat of new entrants is measured fair with a special
note made of the increasing existence of private labels.

 Bargaining Power of Buyers – The level of bargaining power differs among groups
of buyers. The bottlers, distributors and retailers have extensively greater bargaining power
than the end consumer does. Large retailers such as Wal-Mart and national grocery chains
are able to take out profits from the soda manufacturers through incentives These retailers are
highly concentrated and can thus use significant power influence a consumer’s decision to
purchase simply by changing the in store displays. The bargaining power of retailers is
pointed by the end-consumer brand loyalty. A retailer could risk losing groups of customers
if they simply refuse to stock a certain brand. The bargaining power of the end consumers is
low. They are a fragmented group and no one individual’s purchases account for a significant
portion of the manufacturer’s profits. The presence of substitutes does serve to increase buyer
power for the consumers. The overall bargaining power of buyers is measured medium.

 Bargaining Power of Suppliers – There are few suppliers for the carbonated soft
drink industry. The end product constitutes of few ingredients and has big commodities. It is
assumed that the Pepsi and Coke sales report for a large percentage of the suppliers’ total
revenues. Thus, the importance of the CSD industry to the suppliers serves to contain
whatever bargaining power they may have. The overall bargaining power of the suppliers is
considered to be low.

 Substitutes – There are many substitutes to carbonated beverages. Each company has
a major existence in substitute markets so that a decrease in cola consumption can
conceivably be made up in increased consumption of bottled water, juices, teas and energy
drinks. The challenge lies in increasing brand loyalty within these substitute markets.
Because the substitute products are, for the most part, contained with each manufacturer’s
product collection, the threat of substitutes is considered low.

 Rivalry – There is strong rivalry between Pepsi and Coke. This rivalry leads to a
downward pressure on prices and important investments in advertising in an attempt to build
and maintain brand loyalty. In a growing market such as the domestic carbonated sodas, the
only way to gain market share is to steal from one’s rivals. Thus, Pepsi and Coke fight
heatedly over prices, suppliers, spokespeople, retail space and most importantly, the taste
buds of consumers.
Pricing
The industry sales growth is largely determined by population growth as well as the amount of
advertising and product improvement taking place in the industry. As per the nature of the market,
both Pepsi and Coca Cola have resorted to pricing discrimination strategies to maximize the value of
consumer demand.

 Direct Price Discrimination – The simplest form of extract customer surplus is

charging customers with different prices based on their location and purchasing power. This
is evident in the international operations of both Pepsi and Coca Cola. Cola prices in Mexico,
Brazil and Eastern Europe are lower than prices in the U.S., even though the cost of the focus
is practically the same. Direct price discrimination is based on distribution channel
segmentation in domestic market. Restaurant fountain drinks, single drinks at gas stations
and take-home packs at supermarkets have all different prices on a per-unit basis even though
their costs adjusted for packaging and distribution would not warrant such an inconsistency.
Obviously, such segmentation helps situational-based pricing differences: the most price
insensitive consumers seem to be eatery customers who need a drink to go with their meal.
Also, single-drink buyers at gas stations are more likely to be impulse buyers and therefore
have less price sensitivity than weekend family shoppers at supermarkets who purchase 12-
packs for home consumption:-

 Indirect Price Discrimination – Quantity discounts along with price coupons used
in supermarkets are obvious indirect price discrimination tools Pepsi can use. However, the
most effective indirect price discrimination tool Pepsi has is in fact its brand name. The Pepsi
brand equity actually allows the company to maintain its pricing power. Also, for both
supermarkets and convenience stores the CSDs represent the number one and number three
top-selling items. Retailers use this product category to induce store traffic and create
additional sales, which in turn reduces their power relative to Pepsi. Given the 80% margin
on concentrate, it is easy to see why Wal-Mart and other discount retailers can undercut
Pepsi’s pricing with private labels, but still they will be ineffective in ‘stealing’
 Pepsi customers as long as Pepsi’s brand (and Coke’s for that sake) maintains high customer
loyalty. Pepsi may enhance its price discrimination capability though creating package offers
to restaurants and convenience stores. The Frito Lay brand, controlled by PepsiCo through
Frito Lay North America, is the certain leader in the salty snack segment. If Pepsi bundles
snacks with soft drinks as part of its pricing strategy aimed at fast food restaurants and stores
it may be able to increase sales and obtain better shelf space from retailers. This may prove a
very important method in trying to re-claim share in the fountain drink segment, a large part
of which was lost after Pepsi’s exit from the restaurant business in 1997.

Differentiation
Pepsi has attempted to differentiate its products from Coke’s, but with small success. In an
attempt to differentiate its products from Coke:-
1. Pepsi shifted its focus to the growing American teenage market in the 1990s, while Coke
continued to target baby boomers.
2. Pepsi targeted the teen market by forming exclusive contracts with American schools and
developing advertising campaigns such as “The Next Generation” and “Joy of Pepsi”,
featuring Britney Spears.
3. The most recent Pepsi campaign, “For Those Who Think Young”, to attract an older
consumer, and by Coke’s moves to modernize its packaging, in order to appeal more to
younger consumers.

Pepsi focused on differentiation since 1999 by introducing a sequence of niche products, although
product innovation has been quickly copied by Coke. To increase volume in order to answer flat cola
sales, Pepsi introduced Sierra Mist in 2002-2003 to take the place of 7-Up and go head-to-head with
Sprite. Pepsi has also tried to increase volume by introducing products to reach those segments that
currently are not reaching. Pepsi has introduced Mountain Dew, Pepsi One and Pepsi Blue. Coke has
followed with the introductions of Vanilla Coke, Sprite Remix, and the acquisition of Planet Java,
Odwalla, and Mad River Traders. Although these niche products might successfully keep out a third
competitor through spatial preemption, most of these product introductions are not expected to
generate over 1% of the total soda sales While non-carbonated beverages have remained the focus of
much investor excitement, it is Pepsi and Coke’s core products that are the driver of near-term
growth.

However, the success of Pepsi’s Mountain Dew Code Red launched in 2001 was the most successful
soft drink innovation in 20 years and has spur even more niche product introductions among both
companies. Unfortunately, analysts argue that line extensions often cost a lot while doing very little
for actual sales.

Distribution
Pepsi and Coke share a common interest in generating revenues through distribution of their
products through vending machines on primary and high school campuses across the country.
Unfortunately, both companies have been unsuccessful in responding to open critics such as the
Center for Science in the Public Interest (CSPI). The CSPI is leading a campaign of public health
experts to raise awareness of the adverse health consequences of increased soda consumption.
However, Pepsi and Coke would benefit through a concerted marketing effort to encourage
distribution of soft drinks in schools. For example, no direct connection has been made between soda
consumption and increased obesity. Moreover, school officials across the country view soda vending
machine contracts as a benefit to poorly school district budgets. Finally, both companies distribute
more than carbonated beverages through vending machines they also distribute bottled water, juices,
and sports drinks. Pepsi and Coke would stand to benefit from shifting their focus from competitive
actions to obtain exclusive school district contracts to creating a unified marketing approach that
educates consumers about their community involvement and eliminates negative misperceptions. As
a result, both companies would benefit from potential widespread acceptance of soft drink
distribution in schools.

Pricing
Although price-fixing between Pepsi and Coke would likely lead to legal action, there are other ways
in which both companies have missed opportunities for cooperation in pricing. For example, in a
1999 Brazilian magazine interview, Coke’s chairman, Doug Ivester, mentioned the development of a
vending machine which would automatically increase prices during hot weather. The story ran
worldwide and generated a public outcry. Pepsi criticized Coke’s intentions as exploitative and
opportunistic. However, both companies missed an opportunity to build pricing flexibility into the
distribution of carbonated beverages through vending machines. As a result, both companies could
have enjoyed the economic benefits of flexible pricing

LITERATURE REVIEW AND PROBLEM STATEMENT

LITERATURE REVIEW: - The proposed study is conducted to understand, explore and search
various attributes of potential customer. The researcher will collect primary as well as secondary
data. It is very important to understand business environment of the company and the area in which
it operates. The project will explore the “analysis of advertisement dynamics of Pepsi cola drinks
which creates consumer attentiveness. The project is about to understand the analysis of
advertisement, which creates consumers attentiveness towards Pepsi products. The study also shows
how Pepsi India ltd. is making sales & distribution strategy and is using its strong network while
making advertisement strategy. There are various media source for advertisement of Pepsi like
television, magazines, posters, newspapers, radio etc.

Introduction and background

The project aims at studying and analyzing the advertisement , which creates consumer attentiveness
towards Pepsi products. The main aim of the project is to understand that how much consumer is
aware to the Pepsi product with the help of advertisements.
This also includes the positive and negative points of advertising which creates the impact on
consumer minds towards the Pepsi products.
 Inc.

Type Public (NYSE: PEP)

Founded New York, New York (1965)
Headquarters Purchase, New York
Area served Worldwide
Key people Indra K. Nooyi (Chairwoman), (President) & (CEO)
Food
Industry
Non-alcoholic beverage yeh hai yougistan meri jaan
Pepsi
Organisation: Pepsi India ltd.
Diet Pepsi
Mountain Dew
Starbucks Frappuccino
Lipton Iced Tea History of the company: - Headquartered
Products Tropicana Products in Purchase, New York, with Research and
Gatorade
Development Headquarters in Valhalla, NY, The
Propel Fitness Water
Pepsi Cola Company began in 1898 by Food
Quaker Oats
Scientist and Industrialist Mary Pierson, but it
Lay's
Fritos only became known as PepsiCo when it merged
Market cap USD 107.19 Billion (2008) with Frito Lay in 1965. Until 1997, it also owned
Revenue ▲ USD 39.474 Billion (2007)
Operating
KFC, Pizza Hut, and Taco Bell, but these fast-food
▲ USD 7.170 Billion (2007) restaurants were spun off into Tricon Global
income
Net income ▲ USD 5.658 Billion (2007) Restaurants, now Yum! Brands, Inc. PepsiCo
Total assets ▲ USD 34.628 Billion (2007)
purchased Tropicana in 1998, and Quaker Oats in
Total equity ▲ USD 17.234 Billion (2007)
Employees 185,000(2008) 2001. In December of 2005, Pepsico surpassed
PepsiCo Americas (PepsiCo Americas
Coca-Cola Company in market value for the first
Divisions Food, PepsiCo Americas Beverages),
time in 112 years since both companies began to
PepsiCo International
Website PepsiCo.com compete

Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of
Caleb Bradham (left), a pharmacist and drugstore owner in New Bern, North Carolina.

The company consists of PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB) and
PepsiCo International (PI).PAF includes Frito-Lay North America, Quaker Foods North America
and all Latin America food and snack businesses, including Sabritas and Gamesa businesses in
Mexico. PAB includes PepsiCo Beverages North America and all Latin American beverage
businesses. PI includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East
and Africa. PepsiCo brands are available in nearly 200 countries and generate sales at the retail level
of more than $98 billion.

The information published here is provided by PepsiCo, Inc. and may be accessed at their site:
www.pepsi.com. Caleb Bradham knew that to keep people returning to his pharmacy, he would
have to turn it into a gathering place. He did so by concocting his own special beverage, a soft drink.
His creation, a unique mixture of kola nut extract, vanilla and rare oils, became so popular his
customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and advertised his new
soft drink. People responded, and sales of Pepsi-Cola started to grow, convincing him that he should
form a company to market the new beverage.

Pepsi-Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in

stores, restaurants 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, including Diet Pepsi, Crystal Pepsi, Pepsi
Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X
(available in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Pepsi Raw, Pepsi
Retro in Mexico and Pepsi Ice Cucumber in Japan.

Pepsi was first made in New Bern, North Carolina, in the United States in the early 1890s by
pharmacist Caleb Bradham. In 1898, "Brad's drink" was changed to "Pepsi-Cola" and later
trademarked on June 16, 1903.[1] There are several theories on the origin of the word "pepsi".

The only two discussed within the current PepsiCo website are the following:
  Caleb Bradham bought the name "Pep Kola" from a local competitor and changed it
to Pepsi-Cola.

 "Pepsi-Cola" is an anagram for "Episcopal" - a large church across the street from
Bradham's drugstore. There is a plaque at the site of the original drugstore documenting this,
though PepsiCo has denied this theory.

The word Pepsi comes from the Greek word "pepsi" (πέψη), which is a medical term, describing the
food dissolving process within one's stomach. It is also a medical term, that describes a problem with
one's stomach to dissolve foods properly.

Another theory is that Caleb Bradham and his customers simply thought the name sounded good or
the fact that the drink had some kind of "pep" in it because it was a carbonated drink, they gave it the
name "Pepsi".

It was made of carbonated water, sugar, vanilla, rare oils, and kola nuts. Whether the original recipe
included the enzyme pepsin is disputed.

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore into a rented warehouse.
That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles
and sales increased to 19,848 gallons. In 1924, Pepsi received its first logo redesign since the
original design of 1905. In 1926, the logo was changed again. In 1929, automobile race pioneer
Barney Oldfield endorsed Pepsi-Cola in newspaper ads as "A bully drink...refreshing, invigorating, a
fine bracer before a race".

In 1931, the Pepsi-Cola Company went bankrupt during the Great Depression- in large part due
financial losses incurred by speculating on wildly fluctuating sugar prices as a result of World War I.
Assets were sold and Roy C. Megargel bought the Pepsi trademark.[4] Eight years later, the company
went bankrupt again. Pepsi's assets were then purchased by Charles Guth, the President of Loft Inc.
Loft was a candy manufacturer with retail stores that contained soda fountains. He sought to replace
Coca-Cola at his stores' fountains after Coke refused to give him a discount on syrup. Guth then had
Loft's chemists reformulate the Pepsi-Cola syrup formula.
PEPSI SUSTAINABILITY VISION

PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate—
environment, social, economic – creating a better tomorrow than today.

Pepsi Mission, Values and Guiding Principles

Mission

We aspire to make PepsiCo the world’s premier consumer products company, focused on convenient
foods and beverages. We seek to produce healthy financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our business partners and the communities in
which we operate. And in everything we do, we strive to act with honesty, openness, fairness and
integrity. The behaviors that will help us achieve our mission are articulated in our Values Statement.

Values

Our commitment is to deliver sustained growth, through empowered people, acting with responsibility
and building trust.

Here’s what this means:

Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained
growth stimulates innovation, places a value on results, and helps us understand whether actions
today will contribute to our future. It is about growth of people and company performance. It
prioritizes making a difference and getting things done.

Empowered People means we have the freedom to act and think in ways that we feel will get the
job done, while being consistent with the processes that ensure proper governance and being mindful
of the rest of the company’s needs.

Responsibility and Trust form the foundation for healthy growth. It’s about earning the confidence
that other people place in us as individuals and as a company. Our responsibility means we take
personal and corporate ownership for all we do, to be good stewards of the resources entrusted to us.
We build trust between ourselves and others by walking the talk and being committed to succeeding
together.

Guiding Principles

This is how we carry out our commitment.

We must always strive to care for customers, consumers and the world we live in. We are
driven by an intense, competitive spirit in the marketplace, but we direct this spirit toward solutions
that achieve a win for each of our constituents as well as a win for us. Our success depends on a
thorough understanding of our customers, consumers and communities. Caring means going the
extra mile. Essentially, this is a spirit of growing rather than taking.

Sell only products we can be proud of. The test of our standards is that we must be able to
personally endorse our products without reservation and consume them ourselves. This principle
extends to every part of the business, from the purchasing of ingredients to the point where our
products reach the consumer’s hands.

Speak with truth and candor. We speak up, telling the whole picture, not just what is convenient to
achieving individual goals. In addition to being clear, honest and accurate, we take responsibility to
ensure our communications are understood.
 Balance short term and long term. We make decisions that hold both short-term and long-term
risks and benefits in balance over time. Without this balance, we cannot achieve the goal of
sustainable growth.

Win with diversity and inclusion. We leverage a work environment that embraces people with
diverse traits and different ways of thinking. This leads to innovation, the ability to identify new
market opportunities, all of which help develop new products and drives our ability to sustain our
commitments to growth through empowered people.

Respect others and succeed together. This company is built on individual excellence and personal
accountability, but no one can achieve our goals by acting alone. We need great people who also
have the capability of working together, whether in structured teams or informal collaboration.
Mutual success is absolutely dependent on treating everyone who touches the business with respect,
inside and outside the company. A spirit of fun, our respect for others and the value we put on
teamwork make us a company people enjoy being a part of, and this enables us to deliver world-
class performance.

1. Pepsi Colas

Pepsi: PepsiCo's signature cola flavor and its namesake cola.

Diet Pepsi: The sugarfree equivalent.

Pepsi Free: Introduced in 1982 by PepsiCo as the first major-brand caffeine-free cola and is today sold
as Caffeine-Free Pepsi and Caffeine-Free Diet Pepsi.

Crystal Pepsi: Discontinued; clear version of cola; introduced in 1992 and sold until 1993.

Crystal by Pepsi: Discontinued (non-cola) citrus flavored reformulation of Crystal Pepsi.

Pepsi Clear: Clear soda released in Mexico as a limited edition during Christmas 2005, the Mexican
equivalent of Crystal Pepsi
Pepsi Gold: Limited edition gold colored variant as part of a 2006 FIFA World Cup and ICC Cricket
World Cup 2007 promotion.It had a hint of ginger, but nowhere near the spice level of Pepsi Red, and
was sold in Southeast Asia, Central Europe and Russia.

Pepsi Blue: A blue colored fruity soda (non-cola). Given a huge marketing push, often considered a
major flop on the order of New Coke. No longer produced. In Iceland, Pepsi Blue was sold for a brief
period of time during the winter of 2003/2004, and in India during the 2003 Cricket World Cup. It was
sold for a longer period in Austria, and is still available in some parts of Mexico. It was also sold in the
Philippines for a limited time only, usually it appears during Christmas season.

Pepsi AM: Contains more caffeine than a regular Pepsi and marketed as a morning drink. No longer
produced.

Pepsi Boom: A caffeine, sugar and artificial sweetener-free Pepsi only sold in Germany, Italy and Spain
Pepsi Fresh: More fresh Pepsi. Designed for summer 2007.

Pepsi Natural "a new cola made with only natural ingredients", due in 2007

Pepsi NEX: A zero calorie Pepsi developed by Suntory and sold only in Japan[1]

Pepsi Blue Hawaii: A Limited Edition Pepsi released in Japan. A pineapple and lemon flavored soda,
blue in color.
Pepsi Carnival: A tropical fruit flavored Pepsi available in Japan for a limited time that debuted in
summer 2006. Later Released as Pepsi Summer Mix in 2007 in the US, However the formula was most
likely different.

Pepsi Fire: a limited edition, cinnamon flavored variety that is sold in Guam, Saipan, Thailand, Mexico,
Malaysia, Singapore and the Philippines.

Pepsi Holiday Spice: a limited edition variety which the company began selling November 1, 2004 in
the U.S.A. and Canada for an eight-week period, and again in the 2006 Christmas season. It is flavored
with a seasonal finish of cinnamon, somewhat similar to the Swedish Julmust.

Pepsi Ice: Pepsi with an icy mint flavor. Sold in Guam, Thailand, Malaysia, Singapore and the
Philippines. In summer 2007 Pepsi used the name Pepsi Ice in the Czech Republic and Slovakia for a
limited edition cola with apple flavor.

Pepsi Ice Cucumber: Limited edition Pepsi released in Japan. Cucumber flavors are added to this.
Pepsi Ice Cucumber is a clear drink.

Lemon Pepsi: Limited Edition to promote NFL kickoff 2008, same taste as Pepsi Twist

Pepsi Lime: with lime flavor added, introduced onto the market in the spring of 2005.

Pepsi Limón: Pepsi with lime flavor released in Mexico in 2002, later returns as Pepsi Twist in 2004, no
longer produced.
Pepsi Raging Razzberry:This soft drink was available in 1991 and it has been said that it didn't really
taste like raspberry, but was constered a raspberry twist

Pepsi Raw: Fruity cola tested and available in the United Kingdom.

Pepsi Red: Released in Japan sometime in 2006, it has a general ginger flavor and is somewhat spicy.

Pepsi Retro (rendered in written advertisement as PEPSI retro): Released in Mexico in February 2008.
Pepsi made with natural ingredients, sugar cane and cola nut extract.

Pepsi Samba: A "Tropical Flavoured Cola" containing the flavors Mango & Tamarind, distributed in
Australia. It was released in Australia in the 3rd Quarter of 2005 and was expected to be in production
for a limited time only. Many people did not like the taste. Recently many Australian supermarkets were
clearing out their remaining stock at prices as low as 15 cents (2 litres).

Pepsi Si: The word sí used in its Spanish context ("yes") and printed on cans. Used as a marketing
gimmick in predominantly Hispanic areas.

Pepsi Summer Chill: "Chilled Apple Cola". Sold in Poland during summer 2007. In the Czech
Republic and Slovakia the same product was sold as Pepsi Ice.

Pepsi Summer Mix: Pepsi with tropical fruit flavors. Released in early Spring of 2007, and was
discontinued Fall to Winter of 2007. Was available in limited areas only; was a big hit for the
northeastern United States.

Pepsi Tropical: Short lived drink that was Available both in the US, UK & Japan in late 1994.

Pepsi Kickoff: Pepsi with a "kick" of lemon. To be released to promote the 2008 NFL season. A diet
version is to be made, also.
Pepsi Twist Mojito: A Pepsi with a mix of lemon and mojito taste. Has no alcohol. Sold in Italy.

Pepsi Twistão Sold during summertime in Brazil, it's a Pepsi with a lemon flavor stronger than regular
Pepsi Twist. "Twistão", in Portuguese, is the augmentative of "Twist".

Pepsi Vanilla: Released in Canada and the U.S. in 2003 as Pepsi's answer to Vanilla Coke. Contains
vanilla extract as well as both natural and artificial flavors.

Pepsi Wild Cherry: a cherry flavored variety, introduced in 1988. Originally called "Wild Cherry
Pepsi", its name was changed along with the formula in 2005.

Pepsi X Energy Cola: contains more caffeine than regular Pepsi, and also contains guaranine. Pepsi is
the first major cola brand to have an energy drink line extension. The cola-based product has a unique
flavor and a reddish tint. It is sold in several countries worldwide.

Pepsi 100: Only available for a limited time to celebrate 100 years of the drink in 1998.
Pepsi Gold: Unlike Pepsi, it is calorie-free,caffeine-free & sugar-free Pepsi.

2. Diet-related

Diet Crystal Pepsi: Low-calorie version of Crystal Pepsi.

Diet Pepsi: Low-calorie version of Pepsi.

Diet Pepsi AM: Sugar-free version of Pepsi AM, and introduced in 1987. No longer produced.

Pepsi Edge: contains half the carbohydrates, calories and sugars of a normal Pepsi, and is flavored by
Splenda. Introduced in 2004, and discontinued in 2005. It was featured on an episode of The Apprentice
2 in which teams had to design a prototype bottle.

Pepsi Avantage: the French name for Pepsi Edge, sold exclusively during 2005 in the province of
Quebec.

Diet Pepsi Free (now known as Caffeine-Free Diet Pepsi)

Diet Pepsi Jazz flavored colas only available in diet styles. Introduced in July 2006.

Pepsi Lite: Lemon-flavored Diet Pepsi sold in the 1970s and 1980s, also the name under which Diet
Pepsi is distributed outside the English-speaking countries.

Pepsi Light: a diet flavored Pepsi sold in other countries besides the United States. Similar to Diet
Pepsi. (not sold in 1970s or 1980s)

Pepsi Light Lima: Pepsi Light, but with a touch of lime. Sold only in Spain

Pepsi Light mojito: Pepsi Light, but with a touch of mojito taste. Has no alcohol. Sold in Germany in
2008.

Diet Pepsi Max Available in the United States and Canada. Diet Pepsi with added Caffeine and
Ginseng. This product is not related to Pepsi Max as it has significantly different ingredients and no
calories.
Pepsi Max Available outside the United States. Pepsi with no sugar.

Pepsi Max Chill (flavored with apple)

Pepsi Max Citron Citron Vert (sold in France)

Pepsi Max Coffee Cino (UK - Pepsi Max with coffee)

Pepsi Max Energy Pepsi max with 66% more caffeine, flavored with ginseng. Sold in Germany in
2008.

Pepsi Max Gold (only available in Finland, Iceland, Norway and the UK)

Pepsi Max Mojo Pepsi Max flavoured with lime and mint, released in Finland on April 2008

Pepsi Max Punch (a dark red Pepsi cola with Cinnamon and Ginger - limited edition in the UK market
for Christmas 2005 - available September to December)

Pepsi ONE: An alternative to Diet Pepsi, with one calorie per serving.

Diet Pepsi Kickoff: Diet Pepsi with Lemon. To be released for the 2008 NFL season. As seen on eBay.

Diet Pepsi Wild Cherry Not widely available until 2005, when Wild Cherry Pepsi was reformulated.

Pepsi XL another mid-calorie cola targeted at males, and transition consumers (those making the move
from regular to diet colas).

Pepsi Sugar Free Released on November 2007.

Fictional varieties

Cokesi: a cola mentioned in James Kunetka and Whitley Streiber's novel Nature's End.

Homemade Pepsi and Pepsi B are mentioned in episodes of The Simpsons

Horse Pepsi is mentioned in an episode of Futurama

Pepsi Perfect: a vitamin-enriched cola sold in 2015 in the 1989 film Back to the Future Part II. Pepsi
Perfect also appeared on Power Rangers Mystic Force.

Pepsi Plus: a Pepsi with chocolate sold in 2009 in Pilot, the episode featured in Haste Makes Waste

Parodies

Pepi Cola: referenced frequently on Nickelodeon/Viacom International's show iCarly.

Kelpsi: mentioned in the PC version of The SpongeBob SquarePants Movie video game.

Pepco: referenced in the Fairly Odd Parents episode "Microphony".

Peppi: advertised by Michael Jordan in Celebrity Deathmatch with Dennis Rodman and in iCarly.

Perpi: shown on Nickelodeon's Rugrats.

Popsi: mentioned in an episode of Sabrina, the Teenage Witch.

Pippu: referenced several times in Cowboy Bebop.

POOP: also referenced often in the cartoon Invader Zim.

Poopsi: name of a cola and candy company in the animated series Doug.

Peek: mentioned in ReBoot.

Dyspepsi-Cola: first featured briefly in Kingdom of Loathing and now widely available as an in-game
item.

Piet Depsi: a beverage Ted L. Nancy writes to The Coca-Cola Company about in his book More Letters
from a Nut to replace his original idea of a homemade beverage called Kiet Doke, with the familiar
slogan "It Tastes Nothing Like Coke!"
Gapsi: a fictional beverage, featured in the Tamil film Imsai Arasan 23m Pulikesi, containing sewer-like
ingredients, marketed and sold by the British in the gullible protagonist King 23m Pulikesi's province.

Dr.Pepsi: a Dr Pepper- like beverage in most episodes of Haste Makes Waste.

Advertising strategies of Pepsi Vs Beverage Industry

Even today Pepsi is the one of leader of beverage industry but it still follow the Coca-Cola so it has to
do every way to gain more market share and keep its position in the top of cola beverage. As we know
the main customer target is teenagers and young adults and they have similarly interested around the
world there are sport and music. In fact, the company is recognized worldwide as a leader in advertising,
marketing, sales and promotional initiatives. Advertising make fun that is a purpose of Pepsi

Other point that Pepsi has to think about it is how can it extend its repeat consumer? In currently a new
target group for Pepsi is gay. n people aged 23-29, who worry about their bodies and health and people
who like to drink soft drinks but do not like the carbonation and sugar in them. 95 billion of Coca-Cola,
Pepsi brand value is far less stronger. com), Pepsi and other Pepsi Cola products including: Diet Pepsi,
Caffeine Free Pepsi, Caffeine Free Diet Pepsi, Pepsi Max, Mountain Dew, Slice, Diet Slice, Gotorade,
Sobe and Mug brands. a cool and up-to-date so nobody can say they do not know what Pepsi is.
However brand value of the Pepsi in 2001 is just evaluate for $6. For example nowadays Pepsi Co has
launched a new game called “PEPSI FOOT” for mobile phone, the game is a fantasy soccer game where
players build a virtual team based on real life soccer players and challenge each others team to cyber
face-offs via SMS. Pepsi is one of the major sponsors of PrideVision, the 24 hours gay TV network in
Canada.

Consumption of Carbonated Beverages

Although there are many significant players in the beverage industry, Coca-Cola Co. and Pepsi Co. are
the main players. Combined, they make up more than 70 percent of the market share in the United States
across all channels. They have been the driving force in the carbonated soft drink industry that increased
sales by 1.7 percent in volume. However, more and more flavored products are making their way onto
store shelves. Some of these new products and opportunities are isotonics, juices, sports and energy
drinks, and water.

According to financial reports, non-diet carbonated soft drinks are only expected to capture about 25
percent of the anticipated growth of four to five hundred cases per year on top of the now 12 billion
cases of the U.S. soft drink industry with diet carbonated soft drink and non-carbonated making up the
difference. This looks good for Pepsi because they have acquired the sports drink leader, Gatorade, and
a major alternative beverage leader in the SoBe brand beverages.

A pharmacist from North Carolina named Caleb Bradham started Pepsi in 1898. He was experimenting
with digestive aids and invented something his customers liked to call ¡§Brad¡¦s Dr

. . .
They believe that if they get their customers while they are young, they will have them for life.
Furthermore, PepsiCo offers a very broad product line, from a variety of beverages including SOBE,
Aquafina, Pepsi, and Gatorade as well as a variety of snack foods such as Doritos, Lays, and Oatmeal.
The first ads were run during the 2001 Academy Awards, as well as online, where over 2 million
visitors clicked to catch a glimpse of the spot. Later in 1957, Pepsi stopped advertising Pepsi-cola and
started advertising as only Pepsi.

Pepsi, like many other companies has joined forces with other industries in order to increase their
revenues. Pepsi also receives collective club trademark rights to use all 32 team logos. , maker of the
well-known and edgy SoBe products. Cooper, Kenneth "PepsiCo promotes nutrition and fitness. When
PepsiCo started its own Pepsi Bottling Company, it allowed them to cut costs, reduce overhead, and
coordinate their distribution to create a better synergy.

The third strategy is the expansion of related business.

Thanda chalega kya ... Pepsi and Coke

(20 April 2004)

Soft drinks is perhaps the most hard fought product categories in India in every respect - media, events,
distribution, pricing, communication, endorsements and so on... Every year it consistently emerges as
one of the top 10 categories on television. We, at AdEx India, have looked at year 2003 to understand
the year that was for this exceptionally competitive segment!

One clear and predictable pattern in 2003 was the two clear peaks of ad spend - one during the world
cup and the other during the festive time. Interestingly, while Pepsi dominated media budgets during
World Cup, Coca-Cola seems to have been the dominant spender in the month of September.

However, this time we at AdEx thought of dwelling on aspects of advertising in terms of strategy
adopted by the different players in this category and the duration of advertising across genres on TV and
press.

This paper tries to throw some light on the following aspects: -

1. Genre wise and channel wise composition of advertising on TV

2. Advertising strategy adopted by the aerated soft drink players on TV and press
3. Specific case: zone wise and genre wise advertising for Pepsi and Coke
4. Zone wise and genre wise advertising on press

CHANNEL WISE AND GENRE WISE COMPOSITION OF ADVERTISING ON TV

Genre wise analysis on aerated drinks establishes that this category is heavily advertised on feature
films, music, cricket and soaps. Major part of the advertising on Cricket can be attributed to the fact that
Pepsi was the official sponsor of the Cricket World Cup 2003. However, apart from cricket Pepsi is
actively present on other types of sports such as soccer, wrestling etc.
A very interesting insight emerges-- on press about 98 per cent of the advertising for aerated soft
drink is concentrated in the general interest segment. Whereas, only about 2 per cent advertising is
concentrated on youth, film magazine, business, and women's magazine, in flight and education and

career. And from that 2 per cent share, 1per cent advertising is done on youth magazine. On the
other hand, 10 per cent of advertising of aerated drinks is concentrated on music channels, Channel V and
MTV scores over others, where Coke has a significant share.
ADVERTISING STRATEGY ADOPTED BY THE AERATED SOFT DRINK PLAYERS
ON TV AND PRESS

Below highlights the strategy undertaken by some of the players in the aerated soft drink category. Couple
of interesting insights transpire. One is how frequently do they advertise and the duration/CC for which
they advertise. Such as, Coke advertises more, relative to Pepsi both in terms of frequency and duration on
TV. While Pepsi scores over Coke on press.
GENRE WIDE ADVERTISING FOR PEPSI AND COKE

This clearly helps to establish a very interesting fact that Coke is advertised more on genres such music,
soaps, news bulletin and Pepsi is advertised more on sports such as cricket, soccer and wrestling.
While most of the brands in the soft drink category follow the media spend distribution pattern, the trend
is different for the leaders- Pepsi and Coke. The differential media strategies of the two players explains
the fact that though the broad target group for the brands may be the same but they can be reached through
different combination of media vehicles, thereby avoiding the overlap of advertising messages in other
words the 'ad clutter'. However, the marketwise strategy may be specific to each brand
EMERGING BEVERAGE TRENDS:- The beverage industry is a shifting landscape as volume
leading categories such as soft drinks and beer continue to experience share erosion while functional and
health & wellness oriented categories enjoy double-digit volume growth:

Soft Drinks 3.9%

Domestic Beer 1.2%

Energy Drinks 53%

Bottled Water 25%

RTD Tea 23%

Sports Drinks 19%

EMERGING BEVERAGE TRENDS

Domestic
Sports Soft
Drinks Drinks Beer -
1.2%
+19% -3.9%

RTD
Tea
+23%
Energy
Drinks
+53%
Bottled
Water
+25%

Soft Drinks -3.9% Domestic Beer -1.2%

Energy Drinks +53% Bottled Water +25%
RTD Tea +23%
Sports Drinks +19%
Industry giants Coca Cola (www.coke.com) and Pepsi (www.pepsico.com) continue to diversify their
portfolios, as evidenced with Coke’s recent acquisitions involving Glaceau’s vitamin water
(www.glaceau.com) and Fuze (www.drinkfuze.com), as well as Pepsi’s purchase of Izze Natural Soda
(www.izze.com).

Functional beverages continue to be the hottest segment in beverage, driven by energy drinks (+53%
growth in 2006). Red Bull (www.redbull.com) continues to lead the category, but challengers Monster
(www.monsterenergy.com) and Rockstar (www.rockstar69.com) are realizing share leadership in select
markets.

Bottled water is experiencing resurgence, +25% versus year ago, and is second only to energy drinks in
volume growth. Segment growth is driven largely by the introduction of enhanced/fortified/flavored
waters, led by Glaceau’s vitamin water but featuring a slew of new entrants including: Metromint
(www.metromint.com), Hint (www.drinkhint.com), Propel Fitness Water (www.propelwater.com), SoBe
Lifewater (www.sobelifewater.com), Aquafina Alive (www.aquafina.com), among many others.

RTD tea is riding the antioxidant wave to 23% volume growth versus prior year, driven by consumers
growing awareness of the health benefits associated with antioxidants. Arizona (www.arizonabev.com)
leads the category, followed by Lipton (www.lipton.com) and Snapple (www.snapple.com) brands.
Organic RTD tea brands are a growing market niche led by Honest Tea (www.honesttea.com) and
Republic of Tea (www.republicoftea.com).

The “super-fruits” continue to capture the attention of health and wellness enthusiasts, offering significant
doses of antioxidants and other elements that address myriad health concerns. Pom Wonderful
(www.pomwonderful.com) led the super-fruit movement with its pomegranate blends and unique
packaging and merchandising. Bossa Nova (www.bossausa.com) and Sambazon (www.sambazon.com)
feature the powerful Acai berry from South American rain forests.

Innovation continues to drive the beverage industry. Let Power Brands help you bring your beverage
brand to life!
BEVERAGE MARKETING STRATEGY: - We are beverage brand building experts. Whether you need
help identifying, reaching or communicating with your target market, Power Brands can help. Our
experienced beverage marketing consultants can build your marketing strategy and bring your beverage to
life

Consumer Marketing
-Beverage Promotion
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-Awareness & Trial campaigns
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Coke versus Pepsi: It's all in the head

The preference for Coke versus Pepsi is not only a matter for the tongue to decide, Samuel McClure and
his colleagues have found. Brain scans of people tasting the soft drinks reveal that knowing which drink
they're tasting affects their preference and activates memory-related brain regions that recall cultural
influences. Thus, say the researchers, they have shown neurologically how a culturally based brand image
influences a behavioral choice.

These choices are affected by perception, wrote the researchers, because "there are visual images and
marketing messages that have insinuated themselves into the nervous systems of humans that consume the
drinks."

Even though scientists have long believed that such cultural messages affect taste perception, there had
been no direct neural probes to test the effect, wrote the researchers. Findings about the effects of such
cultural information on the brain have important medical implications, they wrote.

"There is literally a growing crisis in obesity, type II diabetes, and all their sequelae that result directly
from or are exacerbated by over consumption of calories. It is now strongly suspected that one major
culprit is sugared colas," they wrote.

Besides the health implications of studying soft drink preference, the researchers decided to use Coke and
Pepsi because-- even though the two drinks are nearly identical chemically and physically--people
routinely strongly favor one over the other. Thus, the two soft drinks made excellent subjects for rigorous
experimental studies.

In their study, the researchers first determined the Coke versus Pepsi preference of 67 volunteer subjects,
both by asking them and by subjecting them to blind taste tests. They then gave the subjects sips of one
drink or the other as they scanned the subjects' brains using functional magnetic resonance imaging
(fMRI). In this widely used imaging technique, harmless magnetic fields and radio signals are used to
measure blood flow in regions of the brain, with such flow indicating brain activity levels. In the
experiments, the sips were preceded by either "anonymous" cues of flashes of light or pictures of a Coke
or Pepsi can.
The experimental design enabled the researchers to discover the specific brain regions activated when the
subjects used only taste information versus when they also had brand identification. While the researchers
found no influence of brand knowledge for Pepsi, they found a dramatic effect of the Coke label on
behavioral preference. The brand knowledge of Coke both influenced their preference and activated brain
areas including the "dorsolateral prefrontal cortex" and the hippocampus. Both of these areas are
implicated in modifying behavior based on emotion and affect. In particular, wrote the researchers, their
findings suggest "that the hippocampus may participate in recalling cultural information that biases
preference judgments."

The researchers concluded that their findings indicate that two separate brain systems--one involving taste
and one recalling cultural influence--in the prefrontal cortex interact to determine preferences.

Caleb Bradham of New Bern, North Carolina was a pharmacist. Like many pharmacists at the turn of the
century he had a soda fountain in his drugstore, where he served his customers refreshing drinks, that he
created himself. His most popular beverage was something he called "Brad's drink" made of carbonated
water, sugar, vanilla, rare oils, pepsin and cola nuts.

"Brad's drink", created in the summer of 1893, was later renamed Pepsi Cola in 1898 after the pepsin and
cola nuts used in the recipe. In 1898, Caleb Bradham wisely bought the trade name "Pep Cola" for $100
from a competitor from Newark, New Jersey that had gone broke. The new name was trademarked on
June 16th, 1903. Bradham's neighbor, an artist designed the first Pepsi logo and ninety-seven shares of
stock for Bradham's new company were issued.

After seventeen years of success, Caleb Bradham lost Pepsi Cola. He had gambled on the fluctuations of
sugar prices during W.W.I, believing that sugar prices would continue to rise but they fell instead leaving
Caleb Bradham with an overpriced sugar inventory. Pepsi Cola went bankrupt in 1923.

In 1931, Pepsi Cola was bought by the Loft Candy Company Loft president, Charles G. Guth who
reformulated the popular soft drink. Guth struggled to make a success of Pepsi and even offered to sell
Pepsi to the Coca-Cola company, who refused to offer a bid.
In 1940, history was made when the first advertising jingle was broadcast nationally. The jingle was
"Nickel Nickel" an advertisement for Pepsi Cola that referred to the price of Pepsi and the quantity for that
price. "Nickel Nickel" became a hit record and was recorded into fifty-five languages.

In 1964, Diet Pepsi was introduced.

Pepsi has attempted to differentiate its products from Coke’s, but with little success. In an attempt to
differentiate its products from Coke’s, Pepsi shifted its focus to the growing American teenage market in
the 1990s, while Coke continued to target baby boomers. Pepsi targeted the teen market by forming
exclusive contracts with American schools and developing advertising campaigns such as “The Next
Generation” and “Joy of Pepsi”,
featuring Britney Spears

Pepsi focused on varietal differentiation since 1999 by introducing a string of niche products, although
product innovation has been quickly copied by Coke. To increase volume in order to counter flat cola
sales, Pepsi introduced Sierra Mist in 2002-2003 to take the place of 7-Up and go head-to-head with
Sprite. Pepsi has also tried to boost volume by introducing products that appeal to specific target market
segments that it currently is not reaching. Pepsi has introduced Code Red and Live Wire, extensions of
Mountain Dew, Pepsi One, and Pepsi Blue.

Finally, Pepsi is countering declining sales of carbonated drinks through the marketing and distribution of
Starbucks ready to drink products, and the acquisition of SOBE and Gatorade. Coke has followed with the
introductions of Vanilla Coke, Sprite Remix, and the acquisition of Planet Java, Odwalla, and Mad River
Traders. Although these niche products might successfully keep out a third competitor through spatial
preemption, most of these product introductions are not expected to generate over 1% of the total soda
favor of focusing on core brands, with some emphasis on product innovation. Pepsi could signal this intent
by announcing its strategy publicly, hopefully encouraging Coke to follow suit.
 SLOGANS

A large advertisement made to resemble a Pepsi cup at Nickelodeon Universe in the Mall of America.

1939: "Twice as Much for a Nickel"

1950: "More Bounce to the Ounce"

1950: "Any Weather is Pepsi Weather"

1957: "The Light Refreshment"

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, and Pepsi's Got a Lot to Give"

1975: "Have a Pepsi Day"

1977: "Join the Pepsi People (Feeling Free)"

1980: "Catch That Pepsi Spirit" David Lucas composer

1981: "Pepsi's got your taste for life"

1983: "Pepsi Now! Take the Challenge!"

1984: "Pepsi. The Choice of a New Generation" (Commercial with Michael Jackson, featuring Pepsi
version of Billie Jean)

1986: "We've Got The Taste" (Commercial with Tina Turner)

1990: "You got the right one Baby UH HUH" ( sung by Ray Charles for Diet Pepsi )

1991: "Gotta Have It"/"Chill Out"

1992: "Be YoungER, Have Fun, Drink Pepsi"

1993: "Right Now"Van Halen Song for the Crystal Pepsi Ad

1994: "Double Dutch Bus" Pepsi song sung by Brad Bentz.

1995: "Nothing Else is a Pepsi"

1996: "Pepsi:There's nothing official about it" (During the Wills World Cup(Cricket) held in
India/Pakistan/Sri Lanka)

1997: "GeneratioNext"." With the Spice Girls "

1998: "Yeh Dil Mange More"(In Hindi/Urdu meaning "This heart wants more")(India/Pakistan)

1999: "Ask for More"/"The Joy of Pepsi-Cola" (Commercial with Britney Spears/Commercial with Mary
J. Blige)

2000: "Aazadi dil ki" (In Hindi meaning "Freedom of the Heart")(India)

2003: "It's the Cola"/"Dare for More" (100th Anniversary Commercial)

2003: "Yeh Pyas Hai Badi"(In Hindi meaning "This thirst is too much")(India)

2005: "Wild Thing"/"Ask For More" (With Jennifer Lopez & Beyoncé Knowles)

2006: "Why You Doggin' Me"/"Taste the one that's forever young" Commercial featuring Mary J. Blige

2007: "More Happy"/"Taste the once that's forever young" (Michael Alexander)

2008: "Yeh hai Youngistaan Meri Jaan!" (India)

2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)

2008: "Рepsi is #1" Тv commercial (Luke Rosin)

2008: "Pepsify karo gai!" Commercial ( in Urdu meaning "Wanna Pepsify!") (Pakistan) (Featuring. Adnan
Sami and Annie (Pakistani singer)
 Marketing

In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where

PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the
majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo took great
advantage of the campaign with television commercials reporting the test results to the public.[12].
In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By 2002, the strategy
was cited by Promo Magazine as one of 16 "Ageless Wonders" that "helped redefine promotion
marketing."[13]

In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time, included more than
thirty different backgrounds on each can, introducing a new background every three weeks.[14]

Cola and consumers' needs and motivations

Cola is a soft drink product which can be seen as a product to reduce the need of thirst. However, thirst
could also be reduced by drinking water or another soft drink, so the consumption of cola to satisfy the
need thirst is better described as a want. The choice of drinking cola when one is thirsty depends on a
consumer's cultural environment, his learning experiences and his history. For example, in western
countries it is quite normal to drink cola when you are thirsty, while in developing countries people will
satisfy this need with water. Based on what is learned and what the cultural conditions are, people will
or will not drink cola. Therefore cola is a want instead of a need. People do not need cola, they want it.

Cola satisfies in the first place a utilitarian need, namely it takes away the thirst of a consumer. But cola
can also be seen as to satisfy a hedonic need. Consumers who drink cola can experience a refreshing
moment, which is more an emotional response. This satisfaction of a hedonic need can particular be seen
in the commercials of cola producers, who often show the consumption of cola as a refreshing and fun
experience.

So consumers' motivation to buy cola depends on how strong they feel about satisfying the needs and
wants described before. This will depend largely on their culture and how they are raised. Also, the
consumption of cola can cause an approach-avoidance conflict. Although it takes away your thirst and
can give you a refreshing moment, it also contains a lot of sugar which is not good for your health.
Therefore people can be less motivated to buy cola.

Because cola satisfies in the first place an utilitarian need, we think consumers are not very involved
when they buy cola. Especially in western countries, where cola is more of a everyday product, people
purchase cola soft drinks based on inertia, or in other words habit. Usually, consumers will not take into
account the different cola brands, but just purchase the brand they always take if it satisfies their needs,
or in this case wants. Research has even proven that when consumers do not see the brand they are
drinking, they do not taste any difference. It seems that the choice of cola brand depends on how the
different cola producers position their product in a consumer's mind.

As cola has become an everyday product in which consumers are not very involved, we believe that
their values will not have a big influence on the choice of brand. Especially because the cola market is
led by two competitors who stress the same kind of western values, consumers will at this moment not
place much attention on their values when buying cola.

Inventory of consumers reactions

The two main competitors for our introduction of Fei Fei Cola in the cola market are Coca-Cola
Company and PepsiCo Inc. Both are very successful and dominate the cola as well as other soft drink
markets. For the product category cola, Coca-Cola and Pepsi are perfect substitutes without noticeable
taste difference; however, the two products are not substitutes for most of the people. Cola as a drink is a
low involvement product, but marketers for both Coca-Cola and Pepsi have tried to increase consumers'
involvements throughout various advertisement campaigns and sponsoring various events. Taking a
good look at their marketing actions and the consumer reactions to it will provide important information
regarding our new product.

Needs and wants

Coca-Cola and Pepsi appeal to different people, because they satisfy different needs and wants of the
consumers. Of course, both satisfy the physiological, utilitarian need thirst, but marketers of both
companies have tried to make cola a product that also satisfies higher level needs such as hedonic needs,
ego needs and self-actualization. They try to make consumers believe that drinking their product
involves a refreshing, exiting experience in a way that is only satisfied with their product. Think for
example of Coca-Cola commercials in which people who drink Coca-Cola are seen as “being cool”.
Pepsi tries to reach consumers by stressing out the relaxing experience of drinking Pepsi. Also, Pepsi's
advertisement of Diet Pepsi truck uses the principle of credibility to show how Pepsi fulfils the need of
Ego. Both companies target the higher level needs in order to build brand loyalty for ensuring consistent
sells.
Motivation and Involvement

As stated before, the motivation of people to buy cola depends on how strong they feel about satisfying
their needs and wants. This also has influence on their involvement with the product. Both Coca-Cola
and Pepsi have strong campaigns to increase the motivation and involvement with their product.

Pepsi recently had an advertisement campaign together with iPod Mini, in which they gave out free
iTunes songs and free iPod minis. While listening to music is a form of relaxation, this campaign adds to
the existing brand identity of Pepsi. Moreover, the campaign combines consumers' interest in music and
soft drinks. It appeals to people who have an iPod and to people who enjoy music. By co-branding,
Pepsi increases the motivation of consumers to buy the product, in order to get the free songs and free
iPod Mini. Also, iPod is a high involvement product, so co-branding will increase consumers'
involvement with Pepsi.

The Coca-Cola Company held a “Fire-passing” activity to pass the fire of the Olympic Games, in
preparation of the Beijing 2008 Olympic Games. Not only can this raise the brand awareness of Coca-
Cola in the new market of China, it can also enhance the involvement of consumer from a low one to a
high one, making them to feel like Coca-Cola being a part of their lives. This will increase their
motivation to buy Coca-Cola.

Apart from appealing to music fans, Pepsi has been one of the sponsors for the Superbowl for years. It
associates Pepsi with this sport event and makes Pepsi appeal to the football fans. In one of the
advertisement, Pepsi's vending machine is playing on the field during the Superbowl. This gives Pepsi
the character of a good football player and creates the image that when being a football fan, Pepsi is the
choice.

Both Pepsi and Coca-Cola have spent a lot of money on advertisements, these shape the perception of
consumers towards the brands. At the same time, the advertisement campaigns raise consumers'
awareness of what the two brands provide, rather than the actual products. These campaigns first
increase consumers' motivation to buy the products and hence, increase consumers' involvement with
the products.

Attract attention

In an oligopolistic market such as the cola market, in which the two main competitors offer similar
products, it is very important to attract the attention of consumers in order to make them buy your
product. Both Coca-Cola and PepsiCo Inc use good techniques to ensure their products are noticed.

Coca-Cola and Pepsi use bright and vivid colors for their packaging and their logos to attract the
attention of consumers. Through the enormous exposure of these logos to consumers, people recognize
these logos and associate these colors with these brands. For Coca-Cola this is the color red and for
Pepsi the color blue. This association makes sure their products are stored in the long term memory of
consumers.

In the packaging of Coca-Cola, one can find the figure of a woman/breasts. This sexual sign attracts
unconsciously the attention of people.

Pepsi and Coca-Cola both use famous people to attract the attention of consumers. Think for example of
Beyonce, Britney Speares and Christina Aguilera who have participated in commercials of Coca-Cola
and Pepsi. By showing that these famous people drink their product and are willing to recommend it,
they hope to persuade people to buy their product. Also, they offered saving campaigns, where
consumers could get points when they bought their products. With these points, consumers could save
for cd of the famous singers who participated in the advertisements. These campaigns caused repeated
purchases of the same brand and hopefully created brand loyalty.

Memory

In order to create brand awareness and loyalty, it is very important for a company to make sure that their
product is stored in the long term memory of consumers. Coca-Cola and Pepsi use effective techniques
to achieve successful long term memory storage.
Coca-Cola uses a lot of jingles and songs in their commercials. Through the use of classical conditioning
they try to link their product with these jingles and songs. Think for example of the Chihuahua song.
Because the song was used in a commercial of Coca-Cola, people associated this song with Coca-Cola.
Every time they heard this song on TV or the radio they were reminded of Coca-Cola. This is a very
smart but also cheap way of advertising, because the classical conditioning will evoke a though of Coca-
Cola even when this is not even the intention and through this repetition the product is stored in the long
term memory of consumers.

Both Pepsi and Coca-Cola expose consumers a lot to their brands. Through sponsoring of big events and
organizing very intensive campaigns, they repeatedly create awareness of their products. This way their
products are put in the long term memories of consumers.

Persuasion

In order to increase sales, Coca-Cola and Pepsi use different techniques to persuade people to buy their
product.

By making light variants of their products and associating their brands with sport activities, Coca-Cola
and Pepsi try to take away the approach-avoidance conflict people can have towards their products.
They try to decrease the unhealthy aspect of their products. This way they hope to persuade more people
to buy their products.

Especially Coca-Cola makes use of vicarious reinforcement. It shows happy and laughing people in their
advertisements when they drink Coca-Cola. These people serve as models for consumers. If consumers
perceive the models' happy and fun moment as being caused by Coca-Cola, they are motivated to buy
Coca-Cola too. This way Coca-Cola tries to persuade people to buy their product.

Cultures and subcultures

Coca-Cola and Pepsi try to appeal to different subcultures by stressing out different values. The values
that Coca-Cola wants to stress are family, friendship, happiness, exercise, and being cool. Their product
appeals therefore to a broad range of people. It is a product for everyone, every time, everywhere. For
Pepsi these values are enjoyment, relaxing and energy. Pepsi appeals more to young, active and sportive
people. Although these values are somewhat different, they are all western values, so will appeal more
to western cultures. To also reach consumers in non-western cultures and countries, both companies
make different advertisements campaigns for these regions.

Appealing to the local cultures is a very efficient way to gain sells. For example, in the Chinese market,
Pepsi is more successful because it associates itself with the local pop stars and the pop culture. By
using the source credibility techniques, it creates the image that Pepsi is following the culture of youth.

Failure to cope with the local cultures might lead to negative associations with a product. For example,
there are large billboards of Coca-Cola in the Mainland China. People in China are used to large
billboard with slogans on new government policies. Since many of those policies have proven to be a
wrong step in the country's development (e.g. the “Big Steel Refining Campaign”, which turned out to
be a mass production of scrap metal), the credibility of such billboards is very low from Chinese
people's point of view. Therefore, the aim to raise the brand awareness in this new market is not
achieved. Instead, this gives a negative image of the Coca-Cola Company.

Pepsi Stuff" Aims to Cover Every Possible Consumer Touch Point

By William Keenan Jr.

February’s Super Bowl might have provided a great kickoff for the Pepsi Stuff/Amazon MP3 promotion that
saw its first major advertising in a stunt-filled TV commercial starring Justin Timberlake called “Magnetic
Attraction.” But the promotion – a massive “collect-and-get” program where consumers collect points via 4
billion specially-marked Pepsi bottles and packages and redeem them for some $140 million worth of MP3
music downloads and other rewards from Amazon.com –involved a whole lot more in terms of planning and
support, both beforehand and throughout the year-long program.

“We started developing this program a good 18 to 20 months ago, in 2006,” says Bill Wyman, Senior
Manager of Brand Activation for Pepsi-Cola North America. “We wanted to drive trademark-specific
promotions and strategies that would solve the business issues that each one of our trademarks was facing.
And we were trying to understand the business issues specific to the Pepsi trademark that were different from
the other brands in our portfolio.”
A Strong Heritage

As the marketing team combed through its consumer data and historical numbers, Wyman says, “We realized
we had an opportunity to regain a connection with our heavier users, and we wanted to drive and develop a
program that would be able to do that. So we looked at what our key platforms were, some of the heritage we
have in different properties and different ways of going to market, and we developed a strategy that was a
loyalty program anchored in music – where we have a real strong heritage and our consumers have a passion
for those things.”

From a loyalty perspective, Pepsi Stuff was an obvious choice. “We’ve done it four times before, so we knew
it was a strong, leverage able asset for us,” explains Wyman. “Pepsi has always been on the cutting edge of
music, so we wanted to look out into the landscape and see what was out there today that was really
breakthrough and innovative. And that’s where Amazon came into play.”

Through Mega Entertainment in Las Vegas, an agency that had worked with both companies, Pepsi learned
that Amazon was developing an MP3 music site, a hot topic from a music industry perspective. “We knew
that MP3 would be a big win with our consumers,” Wyman says, “mostly because it provides them a choice in
what music they play, when they play it, where they play it and what they play it on.”

For Amazon’s part, “they had this new platform they were driving,” Wyman notes, “and their goals were to
create consumer awareness and trial. We told them we could certainly deliver awareness and trial for them.”
Amazon also helped Pepsi develop the PepsiStuff.com website, which actually lives inside the world of
Amazon.com.

Turning Points Into Products

Consumers collect Pepsi Stuff points from all trademarked Pepsi packages and they can redeem them on the
PepsiStuff.com website. “It’s pretty simple,” says Wyman. “You drink your Pepsi, you get your codes, you go
online to PepsiStuff.com and enter your code. That code is banked into an account for you, and then you can
use those points for digital downloads from Amazon MP3, which has over three million songs to choose
from.” In addition there are digital downloads of TV shows available, CDs, DVDs, Pepsi apparel – hats, t-
shirts, and some more upscale fashion designs – and consumer electronics.
Plus, says Wyman, “We also have a sweepstakes area that allows consumers who want to go for those big
aspirational Pepsi experiences to participate and win their dream.” The sweepstakes offerings also cover a
wide range of possibilities for participants in the program. “We’re giving away a trip every single day, and
those trips can involve anything from going to the Super Bowl to riding in a car with Jeff Gordon to going to a
Pepsi Smash concert and meeting the artists backstage. Then every day we’re also giving away a home
entertainment center, 50 MP3 players, 40 digital cameras and cash prizes,” Wyman says.

A 360-degree Perspective

“Whenever we do any promotion, whether it’s Pepsi Stuff, Old School/New School, or any of the others we
do, we always try to take a look at it from a 360-degree perspective,” Wyman explains. “You put the
consumer smack dab in the middle and think about all the touch points that consumer is going to interface
with, and how do you make sure you have a consistent, compelling and relevant message at each one of those
different touch points.”

To cover all of those points, Pepsi has a new TV advertising spot featuring the Pepsi Stuff “gift monster.” And
to integrate with that spot, Wyman says the company did several events in New York City leading up to the
launch of the program, with a gift monster inflatable and gift monster sightings around the city. “And we were
giving away Pepsi merchandise and rewards – ‘Pepsi Stuff’ – at each one of these events.”

The monster then traveled to Phoenix for the Super Bowl, and it was there for ten days, again giving out Pepsi
Stuff, handing out catalogs for the program and giving away free songs from the program. In addition,
Wyman says, “We had a Pepsi Smash concert at the Super Bowl, sponsored by Pepsi Stuff, and we fully
integrated the onsite activity around the concert into Pepsi Stuff.” They also had Pepsi Stuff integration and
activities for consumers both inside and around the stadium and the Super Bowl.

In addition, there were Pepsi Stuff launch parties around the country to help build the buzz for the promotion
within key markets. “And at retail, we have a lot of Pepsi Stuff activation either already running or planned
throughout the year,” Wyman adds.

There’s also plenty of online advertising – with Yahoo front page takeovers on Super Bowl Sunday and the
Monday following the Super Bowl. “We also have full-year plans for digital advertising online with Pepsi
Stuff,” says Wyman, “so again, wherever the consumer is going to be, we’re trying to tackle them with a
relevant message related to Pepsi Stuff.”

Wyman says Pepsi will continue to look at all the assets it has available, to make sure they’re fully integrated.
“We want to make sure that Pepsi Stuff is fully activated with each one of our properties and events,” he says.
“Whether it’s the NFL or Pepsi Smash concerts or what we do with Pepsi racing – wherever you see Pepsi in
2008, you should also see Pepsi Stuff.”

For over 100 years, Pepsi-Cola has produced some of the finest soft drink ads available anywhere in the
world. From today's "Joy of Pepsi," as sung by Britney Spears, to yesterday's "Nickel, Nickel" (1939), our ads
are as memorable as the products we produce. Check out highlights of our favorite ads here.

2004: Pepsi unveils five new TV commercials for Pepsi and Sierra Mist on Super Bowl XXXVIII, making
this the 19th straight year that Pepsi has advertised in the big game.
• On Super Bowl Sunday, Apple and Pepsi officially launch a historic promotion to legally give away millions
of free songs to Mac and Windows PC users from Apple's I Tunes Music Store.
• On the Academy Awards telecast, Diet Pepsi stole the spotlight as the country’s fastest-growing major soft
drink bowed a new advertising campaign with the tagline, “Diet Pepsi. It’s the Diet Cola. The zero-calorie
cola brand illustrates how it is the best option to go with food and social occasions, much like its sister brand,
Pepsi-Cola.
• Two popular sportscasters help turn life’s everyday moments into a cause for celebration in a new
advertising campaign for Pepsi EDGE, the new cola with full-flavored taste but half the sugar, carbs &
calories of regular colas. The campaign tagline, "This moment deserves a Pepsi EDGE," reminds consumers
that they can reward themselves with a Pepsi EDGE for completing even the simplest of tasks.
• Mountain Dew brings nostalgia back into pop culture as it introduces new commercials featuring the classic
Mad Magazine "Spy vs. Spy" characters — who will stop at nothing to get their Dew.

2003: Pepsi-Cola unveils a new advertising campaign, "Pepsi. It's the Cola," which is the brand's first major
campaign shift since 1999. The new campaign highlights the popular soft drink that goes with everything
from food to fun.
• Pepsi's last major campaign change was in 1999, when it debuted "The Joy of Cola," which became "The
Joy of Pepsi" in 2000.
• Pepsi updates its look with a bolder, more contemporary image that better captures the brand's youthful
attitude.
• Mountain Dew offers its third line extension with Mountain Dew Livewire, combining the unique citrus
taste of Mountain Dew with a bold orange flavor. Available summer 2003.
• Pepsi's blockbuster summer promotion "Pepsi Play for a Billion" gives 1,000 consumers the chance to play
for $1 billion on a live television show on The WB. A guaranteed $1 million prizewinner will be chosen and
will then have a chance to win $1 billion without forfeiting the $1 million prize.
• In September, Richard Bay, a 42-year-old high school teacher from Princeton, West Virginia, became a
millionaire on "Pepsi Play for a Billion" on The WB. Bay and the television audience then held their
collective breath to see if he would also win the billion dollars. Instead, his number was two digits off the
billion-dollar number, but Bay was still pleased with his cool million.

2002: In March, supermodel Cindy Crawford helps introduce a new look for Diet Pepsi. The updated graphics
better represent the brand's light, crisp, refreshing qualities.
• Pepsi-Cola teams up with the National Football League, becoming its Official Soft Drink Sponsor.
• Pepsi declares, "It's a blue thing," and unveils Pepsi Blue in July. A fusion of berries with a splash of cola,
the blue-hued soft drink is created by and for teens. Through nine months of research and development, Pepsi
asks young consumers what they want most in a new cola. Their response: "Make it berry and make it blue."
• In December, American music and film sensation Beyoncé Knowles is welcomed as the newest member of
the Pepsi family.

2001: The popular "Joy of Cola" tagline gets an update, becoming the "Joy of Pepsi." Three months later,
Britney Spears stars in a blockbuster Pepsi commercial that breaks during the Academy Awards. An hour
before the telecast, the high-energy spot debuts online, where more than 2 million fans click their way to
Britney's own version of the "Joy of Pepsi."
• Thirsty consumers are invited to "discover a sensation as real as the streets," when cherry-flavored Mountain
Dew Code Red is introduced.
• Pepsi puts a little twist on a great thing, unveiling the first national TV commercial for new lemon-flavored
Pepsi Twist.

2000: The popular Pepsi Challenge makes its return, and consumers across the country let their taste decide
the best cola and one-calorie cola. Helping launch the Challenge are two of baseball's top sluggers – Sammy
Sosa and Ken Griffey Jr.
• On the airwaves, the "Joy of Cola" campaign is a hit as "Pepsi Girl" Hallie Eisenberg rocks with pop star
Faith Hill and perennial rockers KISS.
• Among those doing the Dew is hip-hop artist Busta Rhymes, and Aquafina launches its first-ever television
advertising campaign.

1999: "The Joy of Cola" new advertising campaign for brand Pepsi features the voices of actors Marlon
Brando, Issac Hayes and "Queen of Soul" Aretha Franklin.
• Pepsi and Lucasfilm team up again as Star Wars Episode 1, The Phantom Menace hits movie theaters.
Consumer excitement is heightened as special Pepsi bottles and cans offer 24 different Star Wars characters.
The collection series includes an all-gold Yoda can. In addition, Pepsi introduces animated character
"Marfalump," Star Wars' biggest fan, in its ads supporting the film.
• In a dramatic restructuring of this business, Pepsi announces one of the largest IPOs in history. On March
31, 1999, the Pepsi Bottling Group, Inc. (PBG) becomes a publicly traded company and the largest Pepsi
bottler (http://www.pbg.com).

1998: Pepsi celebrates its centennial year with a birthday party attended by Pepsi-Cola bottlers from all over
the world. Joining the festivities are Pepsi stars and friends, including Ray Charles, Kool and the Gang and the
Rolling Stones. President and Mrs. George Bush, Lady Thatcher and Walter Cronkite also help to
commemorate the occasion where the legacy of Pepsi is honored, and a new look for the millennium is
unveiled: the three-dimensional symbol for one Pepsi family – poised for innovation and world leadership as
it enters the new century.

1997: "GeneratioNext" signals a return to the long-running "generation" theme, and pop stars, The Spice
Girls, build on the excitement of Pepsi advertising.
• A group of disco-dancing bears high-step their way into national popularity when they feel the pull of Pepsi
and the beat of the Village People.

1996: The "Nothing Else Is A Pepsi" campaign makes its point in a memorable way when "Security Camera"
catches a competitor's salesman preferring Pepsi.
• Lucasfilm and Pepsi agree to a long-term partnership for the Star Wars films and sequels.
1995: America raves over the new "Nothing Else Is A Pepsi" advertising campaign. The commercials achieve
the highest popularity ratings ever and win top honors at the prestigious Cannes Advertising Festival.
• Pepsi is now the "Choice of a New Generation" in 195 countries around the world.

1994: Pepsi teaches consumers the importance of product expiration dates by adding "Freshness" information
to each and every package sold.

1993: "Be Young, Have Fun, Drink Pepsi" advertising starring basketball superstar Shaquille O'Neal is rated
as best in the U.S.

1992: Celebrities join consumers, declaring that they "Gotta Have It." The interim campaign supplants
"Choice of a New Generation" as work proceeds on new Pepsi advertising for the '90s.
• Mountain Dew growth continues, supported by the antics of an outrageous new Dew Crew whose claim to
fame is that, except for the unique great taste of Dew, they've "Been There, Done That, Tried That."

1991: "You Got the Right One Baby" is modified to "You Got the Right One Baby, Uh-Huh!" The "Uh-Huh
Girls" join Ray Charles as backup singers, and a campaign soon to become the most popular advertising in
America is on its way.
• Supermodel Cindy Crawford stars in an award-winning commercial made to introduce the updated Pepsi
logo and package graphics.

1990: Teen stars Fred Savage and Kirk Cameron join the "New Generation" campaign, and football legend
Joe Montana returns in a spot challenging other celebrities to taste their colas against Pepsi.
• Music legend Ray Charles stars in a new Diet Pepsi campaign, "You Got the Right One Baby."

1989: "The Choice of A New Generation" theme expands to categorize Pepsi users as "A Generation Ahead."

1988: Michael Jackson returns to "New Generation" advertising to star in a four-part "episodic" commercial
named "Chase." The ad airs during the Grammy Awards program and is hailed by the media as "the most
watched commercial in advertising history."

1987: After an absence of 27 years, Pepsi returns to New York's famed Times Square with a spectacular 850-
square-foot electronic display billboard, declaring Pepsi to be "America's Choice."
1985: Lionel Ritchie leads a star-studded parade into "New Generation" advertising followed by pop music
icons Tina Turner and Gloria Estefan. Sports heroes Joe Montana and Dan Marino are part of it, as are film
and television stars Teri Garr and Billy Crystal.
• Geraldine Ferraro, the first woman nominated to be vice president of the U.S., stars in a Diet Pepsi spot. And
the irrepressible Michael J. Fox brings special talent, style and spirit to a series of Pepsi and Diet Pepsi
commercials, including a classic, "Apartment 10G."

1984: A new generation has emerged – in the United States, around the world and in Pepsi advertising, too.
"Pepsi. The Choice of a New Generation" announces the change, and the most popular entertainer of the time,
Michael Jackson, stars in the first two commercials of the new campaign. The two spots quickly become "the
most eagerly anticipated advertising of all time."

1983: The soft drink market grows more competitive, but for Pepsi drinkers, the battle is won. The time is
right and so is their soft drink. It's got to be "Pepsi Now!"

1982: With all the evidence showing that more people prefer the taste of Pepsi, the only question remaining is
how to add that message to Pepsi Generation advertising. The answer? "Pepsi's Got Your Taste for Life!" – a
celebration of great times and great taste.

1979: With the end of the '70s comes the end of a national malaise. Patriotism has been restored by an
exuberant celebration of the U.S. bicentennial, and Americans are looking forward to the future with renewed
optimism. "Catch that Pepsi Spirit!" catches the mood, and the Pepsi Generation carries it forward into the
'80s.

1976: "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving national mood.
"Puppies," a 30-second snapshot of an encounter between a very small boy and some even smaller dogs,
becomes an instant commercial classic.

1975: The Pepsi Challenge, a landmark marketing strategy, convinces millions of consumers that more people
prefer the taste of Pepsi.
1973: Pepsi Generation advertising continues to evolve. "Join the Pepsi People, Feelin' Free" captures the
mood of a nation involved in massive social and political change. It pictures us the way we are – one people,
but with many personalities.

1969: "You've Got a Lot to Live. Pepsi's Got a Lot to Give" marks a shift in Pepsi Generation advertising
strategy. Youth and lifestyle are still the campaign's driving forces, but with "Life/Give," a new awareness and
a reflection of contemporary events and mood become integral parts of the advertising's texture.

1967: When research indicates that consumers place a premium on the superior taste of Pepsi when chilled,
"Taste That Beats the Others Cold. Pepsi Pours It On," emphasizes the brand's product superiority. The
campaign, while product-oriented, adheres closely to the energetic, youthful lifestyle imagery established in
the initial Pepsi Generation campaign.

1966: The first independent Diet Pepsi campaign, "Girlwatchers," focuses on the cosmetic benefits of the low-
calorie cola. The ad's musical theme becomes a Top 40 hit. Advertising for another new product, Mountain
Dew, a regional brand acquired in 1964, airs for the first time, built around the instantly recognizable tag line,
"Ya-Hoo, Mountain Dew!"

1964: A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.

1963: In one of the most significant demographic events in commercial history, the post-war baby boom
emerges as a social and marketplace phenomenon. Pepsi recognizes the change and positions Pepsi as the
brand belonging to the new generation – The Pepsi Generation. "Come Alive! You're in the Pepsi Generation"
makes advertising history. It is the first time a product is identified, not so much by its attributes, as by its
consumers' lifestyles and attitudes.

1961: Pepsi further refines its target audiences, recognizing the increasing importance of the younger, post-
war generation. "Now It's Pepsi, For Those Who Think Young" defines youth as a state of mind as much as a
chronological age, maintaining the brand's appeal to all market segments.

1959: Soviet Premier Nikita Krushchev and U.S. Vice President Richard Nixon meet in the soon-to-be-
famous "kitchen debate" at an international trade fair in Moscow. The meeting, over cups of Pepsi, is photo-
captioned in the U.S. as "Krushchev Gets Sociable."
1958: Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen cola," as a
consequence of its long-time positioning as a bargain brand, Pepsi now identifies itself with young,
fashionable consumers with the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces the
earlier straight-sided bottle.

1956: 149 Pepsi-Cola bottling plants are operating in 61 countries outside the U.S.

1954: "The Light Refreshment" evolves to incorporate "Refreshing Without Filling."

1953: Americans become more weight-conscious, and a new strategy based on lower caloric content of Pepsi
is implemented with "The Light Refreshment" campaign.

1950: "More Bounce to the Ounce" becomes the new Pepsi theme as changing soft drink economics force
Pepsi to raise prices to competitive levels. Alfred N. Steele becomes President and CEO of Pepsi-Cola. His
wife, Hollywood movie star Joan Crawford, is instrumental in promoting the company's product line.

1949: "Why Take Less When Pepsi's Best?" is added to "Twice as Much" advertising.

1948: The Pepsi-Cola corporate headquarters moves from Long Island City, New York, to Midtown
Manhattan. Pepsi is produced in cans for the first time.

1947: International profits reach $6,769,000. Pepsi moves into the Philippines and Middle East.

1943: The "Twice as Much" advertising strategy expands to includes the theme, "Bigger Drink, Better Taste."
Sugar is again rationed during World War II. To counter the effects of rationing, Mack purchases a sugar
plantation in Cuba, which proves to be a highly profitable venture.

1941: In support of America's war effort, Pepsi changes the color of its bottle crowns to red, white and blue.
A Pepsi canteen in Times Square, New York, operates throughout the war, enabling more than a million
families to record messages for armed services personnel overseas. Pepsi-Cola Company, until now a
subsidiary of Loft Incorporate, is merged with Loft. Since the Pepsi brand name has become more famous
than that of its owner, the parent company's name is changed to Pepsi-Cola Company. Pepsi-Cola stock is
traded on the New York Stock Exchange for the first time.
1940: Pepsi makes advertising history with the first advertising jingle ever broadcast nationwide. "Nickel,
Nickel," will eventually become a hit record and will be translated into 55 languages. A new, more modern
logo is adapted.

1939: Having survived the Great Depression and a handful of ownership changes, Pepsi is still being sold in a
12-ounce bottle for just a nickel – twice as much refreshment as other soft drinks for the same price. A
newspaper cartoon strip, "Pepsi & Pete," introduces the theme, "Twice as Much for a Nickel," to increase
consumer awareness of the Pepsi value advantage. Walter S. Mack Jr. is elected President of Pepsi-Cola
Company.

1938: The trademark is registered in the Soviet Union. There are 85 Pepsi-Cola bottlers operating under
franchise agreements across Canada.

1936: Pepsi-Cola Limited of London is established. 94 new U.S. franchises are granted. Year-end profits
reach $2,100,000.

1935: Pepsi-Cola operations are moved to Long Island City, New York. The company sets up national
territorial boundaries for the Pepsi bottler franchise system. Compania Pepsi-Cola de Cuba is formed.

1934: A landmark year for Pepsi-Cola. The drink is a hit, and to attract even more sales, Pepsi begins selling a
12-ounce bottle for five cents – the same price charged by its competitors for six ounces. The 12-ounce bottle
debuts in Baltimore, where it is an instant success. The cost savings prove irresistible to depression-worn
Americans, and sales skyrocket nationally. Pepsi-Cola Company of Canada Limited is formed. Caleb
Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies.

1932: The trademark is registered in Argentina.

1931: U.S. District Court for Eastern District Virginia declares the National Pepsi-Cola Company bankrupt.
Loft, Inc., the giant candy company, buys Pepsi-Cola Company.

1928: After five continuous losing years, the company is reorganized as the National Pepsi-Cola Company.

1923: Pepsi-Cola Company is declared bankrupt and its assets are sold to a North Carolina concern, Craven
Holding Corporation, for $30,000.
1922: An attempt at reorganization fails as few shares of stock are sold and investor interest in the new
company wanes.

1921: The collapse of the sugar market results in enormous financial losses for Pepsi-Cola Company.
Bradham attempts to put the company back on its feet by borrowing cash and selling assets and additional
shares of stock. But by the end of the year, the company is insolvent and the bottling network collapses. Only
two plants remain open.

1920: Pepsi appeals to consumers: "Drink Pepsi-Cola. It Will Satisfy You." The price of sugar on the New
York Exchange reaches 26 cents per pound. Bradham gambles on the price going higher and buys large stocks
of sugar. By the end of the year, sugar demand slows on the open market and the price drops to a catastrophic
low of two cents per pound.

1917-18: Price controls hold sugar at 5-1/2 cents per pound during WWI. When the war ends, so do the price
controls. The price of sugar begins an upward spiral.

1910: The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina.

1909: Automobile racing pioneer Barney Oldfield becomes the first celebrity to endorse Pepsi when he
appears in newspaper ads describing Pepsi: "A bully drink…refreshing, invigorating, a fine bracer before a
race." The theme "Delicious and Healthful" appears and will be used intermittently over the next two decades.

1908: Pepsi-Cola becomes one of the first companies to modernize delivery from horse-drawn carts to motor
vehicles. A total of 250 bottlers are now under contract in 24 states.

1907: Pepsi-Cola Company continues to expand. The bottling network reaches 40 franchises. The trademark
is registered in Mexico, and syrup sales top 100,000 gallons.

1906: The logo is redesigned and a new slogan is added: "The Original Pure Food Drink." The Pepsi-Cola
trademark is registered in Canada. There are 15 Pepsi bottling plants in the U.S., and syrup sales reach 38,605
gallons.

1905: A new logo appears, the first change from the original created in 1898. First Pepsi-Cola bottling
franchises are established in Charlotte and Durham, North Carolina.
1904: Bradham purchases a building in New Bern known as the Bishop factory for $5,000 and moves all
bottling and syrup operations to this location. Sales increase to 19,848 gallons.

1903: "Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore to a rented warehouse. In keeping
with its origin as a pharmacist's concoction, Bradham's advertising praises his drink: "Exhilarating,
Invigorating, Aids Digestion." And he sells 7,968 gallons of syrup in his first year of operation.

1902: The instant popularity of this new drink leads Bradham to devote all of his energy to developing Pepsi-
Cola into a full-fledged business, and he applies for a trademark with the U.S. Patent Office in Washington,
D.C. The first Pepsi-Cola Company is formed.

1898: One of Bradham's formulations, known as "Brad's Drink," a combination of carbonated water, sugar,
vanilla, rare oils and kola nuts, is renamed "Pepsi-Cola" on Aug. 28.

1893: Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with many
different soft drink concoctions; patrons and friends sample them at his drug store fountain.

Introduction

For many years now, the cola soft drink market is led by the Coca-Cola Company and PepsiCo Inc. Besides
the cola market, they have expanded their businesses to the other soft drink markets as well and achieved
oligopoly positions with tremendous market shares in all of these markets. Different other brands and new
companies have tried to successfully enter the cola market and other soft drink markets (f.e. Freeway Cola and
Cherry Coke), but none of them was able to achieve a good market share and survive in this oligopolistic
environment. Our company, Fei Fei Company, therefore sees a big challenge in trying to enter the cola market
successfully. That is why we have chosen cola as our product category.

This report will discuss the introduction of our new product, Fei Fei Cola, in the European and Asian markets.
It is a new kind of cola with the addition of oriental flavors, which will give a kind of “eastern” touch to our
cola. We think that consumers feel a need for innovation in the cola market, which we want to satisfy with our
new cola. Through the use of different consumer behavior concepts, we will try to explain why we think our
product will or can be a success.
First, we will discuss the consumers' needs and motivations with regard to cola soft drinks. We will identify
why people buy cola and for what reasons. After that, we will discuss the two main competitors in our market,
so the Coca-Cola Company and PepsiCo Inc., and their marketing strategies to reach customers. Based on the
needs and motivations identified before, we will critically look at why our main competitors and their
marketing strategies are so successful and what can be improved or changed. Based on these outcomes, we are
able to explain why we think our product can be successful in the cola soft drink market and we will discuss
our marketing strategy for introducing our new product.

The purpose of our report is to show why our product can be successful, based on the principles of consumer
behavior. This does not automatically mean that our product will be successful, but it indicates the possibility
for successfully entering the cola market.

Challenging our competitors: our marketing strategy

Our new product, Fei Fei Cola, that our company intends to launch into the European and Asian markets, is a
cola soft drink with Asian traits. The main characteristic of our product is that it is added with herbs and
spices traditionally used in Asian cultures. Hence, it differentiates our new product from the rest of the
market. Our company focuses on certain values and philosophy which focus on creating a third option for
consumers besides Coca-Cola and Pepsi: a soft drink which can not be attached to the American culture and
way of life, as opposed to the products of our two main competitors. On the contrary, the values we want to
stress are peace, family, collective goals and harmony with others.
Nowadays consumers have an emerging need to reject the American culture, so our cola provides this need.
Consumers will have the motivation to buy Fei Fei Cola as the new Asian style cola first raises their curiosity
and then appeal to them as a brand new choice. Consumers could develop a high level of involvement with
our product if they perceive Asian values as peace, family, collective goals and harmony with others in it,
through affective involvement.

According to what was said before, our marketing strategy will try to focus on the mentioned values within it.
We are going to select some elements of a typical marketing strategy and we will show how it can influence
and persuade the potential consumers to buy our product.

Name

We have decided to call our new product “Fei Fei Cola” and our company “Fei Fei Company”. This choice is
due to different reasons:

1) It is a short and catchy name.

2) It is easy to pronounce.

3) Therefore it is easy to remember.

4) It has an Asian sound. Besides, there is another Chinese expression very close to this one which means
“fly” and “herbs fragrance”.

By choosing this name for the new product we are aiming to attain consumer's attention and stay in their
memories. We think that consumer's attention would be easily attracted as we are using a Chinese name,
which involves a novelty in the cola market. This could be seen as an exotic feature of our product by the
European market, while it can be used a signal of identity within the Asian market. We also appeal to
semantic meaning by using this kind of name. In other words, as we are employing an Asian name, our
product could be associated easily to the values we are focusing on. In addition, we think that the chosen
name, Fei Fei Cola, is a catchy name which could help the customers to store our product's name in their long-
term memory. This could provide us a well established place in the market.
Packaging

With regard to the product's packaging, we are going to launch the product in two different sizes: 33cl and 2l.
We have chosen different materials for the two different sized packaging, a tin can for the former, whereas
tetra-brick for the latter. Although two liters tetra-brick is not an usual way of selling a cola soft drink, with
this special packaging we are trying to appeal to two main objectives related to consumer's perception:
consumer's sense of consciousness and differentiation. By consumers' consciousness we mean that we are
aiming at an environment friendly awareness by the consumers and they likely would be more involved with
our product's concerns about the environment. By differentiation we are appealing again to consumers'
memory capacity as our product's packaging would be easier to be recognized, not only in the purchasing
points but also wherever our product is seen.

Concerning our packaging color, we have decide to make it brown. From our company's marketing
perspective, this color could be easily attached by a learned association mechanism with “Mother Earth”.
Mother Earth is on of the keystones of oriental philosophy, which is in line with the values we want to
remark. We think that appealing to Mother Earth is another way of gathering consumers' psychological needs
such as harmony and respect with the environment, which are nowadays very fashionable values.

The logo of Fei Fei cola will be an oriental symbol colored in green. The logo is composed by two FF in an
unusual shape, by this way they are not immediately recognized but unconsciously they are memorized in the
consumer's mind. This means that each time that the customers see the logo, it is very easy for them to
identify the product. On the other hand, the brown color of the packaging with the green color of the logo
symbolizes the forests of the Mother Earth which goes in the same direction of harmony and peace.
The special shape of the package takes the consumer's mind unconsciously to a woman's body. This technique
is commonly used to attract consumer attention and to make easier the decision making, because of its sexual
appealing or because of the resemblance to a maternal meaning, which involves a feeling of security and
peace, depending of the type of consumer. In addition to this value focused strategy we have to remark the
ergonomic shape of our product, achieving an easy handle packaging.

PROBLEM STATEMENT: - The problem statement of the project is to know how the consumer
attentiveness can be easily made with the help of advertisements. The proposed project will present
detail analysis of the advertisement of Pepsi cola, which creates consumer attentiveness.

Advertisement: Advertisement is the mass paid communication of building brands through

persuasive communication and positioning them in the consumer's perception with constant eye on the
market environment and consumer expectations. There are various media source for advertisement like
television, magazines, posters, newspapers, radio etc. The impact of advertisements is moderate in case
of both the sexes. However, females are slightly more influenced by advertisements than males in their
soft drink purchase. Word of mouth has a moderate affect on the purchase of soft drinks. Pepsi aims of
achieve 100% availability for retailers but at present the rate is estimated to be 90%. This is due to the
fluctuating marketed trends. Moreover, Pepsi is also constrained by the number of bottles of a particular
drink that are returned.

ADVERTISING INDUSTRY

Advertising industry is a rapidly growing industry and determines to a considerable extent the GDP or
the gross domestic product of any country. The advertising industry besides functioning as an
intermediate between the manufacturers and the customers plays an important role in the economy of the
country. This industry necessitates investment for funding different resources. One cannot measure the
degree of development by interpretation of inputs in the economy which yields some production. In the
event when consumption levels far exceed than what is reckoned, this is not a means of triggering or
bringing about transformation in the culture, society or development in human resources or economy.
What the time demands is optimum and efficient execution of advertising projects by involving
appropriate technology along scientific lines.
Advertising industry-facts:

 Movies, Internet, Print Media, broadcasting constitute 0.99% in approximately 57

countries in terms of economic growth worldwide. This ratio was found to be unaltered in the
years 2005 through 2006.

 It was observed that expenses incurred on advertising in the European countries

exceeded the expenses incurred by United States Of America in the year 2005.
 Reports also suggest that the trend of growth in the advertising industry may become
sluggish in 2007, the ratio being 5.6%. This ratio may drop to 5.3% in the year 2008.
 2005 through 2008 will see a majority of the emerging markets whose advertising
markets are likely grow as much as USD19.2 billion. On the other hand, the stake in the
global advertising market may escalate from 7.9%- 10.8% during the same period.
 It is apprehended that the advertising industry which contributed 0.96% towards the
global GDP in the year 2005, is anticipated to escalate to 0.99% in 2008.

Advertising Industry Trends

Advertising Industry trends reflect the dynamics of the advertising industry and its contribution to
the economy of the country. The advertising industry plays a significant role in contributing to the
global GDP or the gross domestic product. Advertising industry trends suggested that advertising
expenses with regard to magazines in the beginning of 2007, escalated by 7.1% as compared to the
first half of 2006. The same period witnessed a decrease in the expenses on magazines dealing with
business articles, reports and business statistics by as much as 5.2%. A survey conducted on the
advertising industry trends also suggested that total amount spent on advertising pertaining all
categories of media registered a reduction by 0.3% in the first three months of 2007 as compared to
the last quarter of the 2006. The advertising analysis report conducted on advertising industry trends
observed that approximately 19.2% was spent on magazines during the first 3 months of 2007. There
was an increase by 0.9% as compared to the hike registered last year during the same time.
Advertising industry trends in different media:
Research and analysis carried out in the context of the advertising industry noticed the following
advertising industry trends:

 As many as 1,370 magazines were launched in the United States of America and
Canada in the year 2006.
 The advertising industry report anticipates that another 820 magazines are likely to be
launched within 2007. This will take the number of magazines to 26,960 by 2007 end.
 It is apprehended that a decrease is likely to occur in the number of advertisement
pages in the magazines by around 9% between 2006 through 2011. The shift in the trend of
advertising industry from the print media to the Internet is considered to be one of the
reasons for the down slope.
 Surfing the Internet for various purposes like shopping on line, information about a
store, searching for information or randomly browsing the net accounted for approximately
12%, 15%, 22% and 31% respectively.

Advertising agency
An advertising agency or ad agency is a service business dedicated to creating, planning and
handling advertising (and sometimes other forms of promotion) for its clients. An ad agency is
independent from the client and provides an outside point of view to the effort of selling the client's
products or services. An agency can also handle overall marketing and branding strategies and sales
promotions for its clients.

TOP 50 ADVERTISING AGENCIES:-

1. JWT
2. O & M
3. MUDRA
4. FCB ULKA ADVERTISING
5. REDIFFUSION –DY&R
6. McCANN ERIKSON
7. RK SWAMI
8. GREY WORLDWIDE
9. LEO BURNETT
10. CONTRACTEURO RCSG
11. PRESSMAN
12. MAA
13. IB&W
14. TRITON
15. BATES
16. AMBIENCE D’arcy
17. PERCEPT
18. SAATCHI & SAATCHI
19. TBWA ANTHEM
20. EVEREST MADISON
21. SSC & B LINTAS
22. PUBLICIS
23. Q:UADRANT
24. INTERFACE
25. CONCEPT
26. USHAK KAAL
27. IMPULSE
28. FOUNTAINHEAD
29. AIRADS
30. CAPITAL
31. VIGILANCE
32. SASI
33. RASHTRIYA
34. RAM
35. GRAPHISADS
36. IMAGEADS
 37. MC&A
38. HAKUHODO PERCEPT
39. CONFLUENCE
40. RMG
41. INTERACT VISION
42. PROFAD
43. ARMS
44. URJA
45. GOLDMINE
46. FORTUNE
47. MODE
48. STARCOM MEDIA VEST
49. JOHNSON & JOHNSON
50. WIEDEN & KENNEDY

Concerning our product's advertising campaign; our primary target is brand awareness. At a first moment,
our campaign will be focused on the introduction of our brand and product into consumer's mind as well as
its maintenance. By doing this we are trying to replace the image of our competitors Coca-Cola and Pepsi,
by our brand within consumer's mind.

In order to implement the campaign we will use several ways of communication techniques such as,
mainly, advertising, public relations and sponsorship. In addition to these, we will also use sales
promotion techniques. In this paper we will stress our effort on advertising and the way in which we
intend to reach consumers through it.

Before launching the product to the market we will develop commercials which will be focused on our
logo without showing the product to the audience as to obtaining the consumer expectation before the
launching of the product. By doing that, our brand will be known before we physically launch the
product into the market. By making several exposures of the logo, which means implementing the
repetition technique in advertising, we intend to make consumer to be used to it, to make it familiar to
all the potential consumers.

We would design series of commercials which allow us to transmit clearly the values which make our
brand different: peaceful, harmonic and environment friendly. To achieve this aim we will use
persuasion techniques based on the credibility of the source; in other words, the advertisements will be
performed by well known people within a familiar, natural and peaceful atmosphere. One of them could
be a well known person with his/her family drinking Fei Fei Cola in an oriental garden, with a relaxing
but catchy tune. The colors would be mainly blue and green and other soft ones. By using these kind of
commercials we are directly appealing to the culture and subculture of consumers, dealing with their
family models and ideal way of life, which is related to the ideal self.

We believe that by using all of these marketing strategies, based on consumer behavior theories, we are
able to compete with the existing brands in the cola market and hopefully achieve an good market share!

Limitations

Celebrity endorsements are an omnipresent feature of present day marketing. The modern corporation
invests significant amounts of money to align itself and its products with big-name celebrities in the
belief that they will (a) draw attention to the endorsed products/services and (b) transfer image values to
these products/services by virtue of their celebrity profile and engaging attributes. These ads are easy to
recall by the viewers and helps to retain brands but Celebrity endorsements may not always give a
positive return on expectation. As per the study, majority of the respondents i.e .41% believe that use of
celebrities have no any kind of special effect over their decisions to buy certain products whereas 36%
says that sometimes they get influence from celebrities in advertisements for taking decisions to buy
those products but not every time. As per the study most influential factor (other than celebrity) in
purchasing decision is the product information. It is because nowadays consumer is not easily swayed by
a celebrity in an ad but he needs full fledge information about the product also, followed by brand name,
overall appeal, music/jingle. Whereas frequency of ad repetition and punch line were the least influential
factors affecting the purchase decision of the respondents.
The study was done in Ludhiana, taking sample size of 100 viewers. The study contained the sample
size of 100, all the people of the age of 18 years and above. The data was collected from primary source
by way of questionnaire which included Open-ended, Dichotomous and Multiple choice questions. The
demographic profile of the respondent included 23 Businessmen, 35 service class people, 30 students, 6
professionals, 04 housewives and 2 retired persons. Out of 100 respondents, 56 were males and 44 were
females.

The study found that majority (58%) of the respondents used to watch TV for less than 2 hrs a day due
to their professional and personal work. Some of them watched TV for 2-4 hrs and very few managed to
watch TV for more than 4 hrs a day.

As per the study 53% of the respondents feel that ads are informative while 23% find them interesting to
watch. Therefore majority of the respondents take advertisements as an informative source about the
product. Some respondents look for interesting factors in an ad like humor, family bonding etc. because
in their daily life they hardly find enough time to experience those loving and happy moments. Few
respondents consider ads as time pass and they prefer to change the channel and look some other stuff
and very few respondents consider ads as boring as they cause an interruption in their favorite serials
especially when any climax is about to happen.

As per the study 54% of the respondents feel that celebrities cast an impact through the advertisements
while 46% do not feel any impact of celebrities. Out of 54 respondents, 42 feel that celebrities attract
attention towards an ad, 15 of them feel that they arouse interest in the product. 12 respondents are of
the view that celebrities build a desire to have the product and only 6 respondents only feel that
celebrities initiate an action to buy that product.

The study also revealed that majority of the respondents i.e. 63% get attracted more towards Film Stars
than any other celebrity. Majority of the respondents submitted their response that they would continue
buying same goods from the market irrespective of the act of advertising the same product through any
specific celebrity. The advertisements and celebrities which respondents would recall, preference wise,
listed below:
Celebrity Name Brand/Product Endorsed

Abhishek Bachchan Motorola, Whirlpool, Fiesta

Sachin Tendulkar Palio, Boost, Adidas, Pepsi, Sunfeast

Biscuits,
MRF Tyres, Reliance Communication

Shahrukh Khan Pepsi, Airtel, Navratna Hair Oil, Sunfeast

Biscuits, Lux Soap, Videocon, Belmonte

Aishwarya Rai Lux, Nakshatra Jewellery, L'Oreal, Coke

Amitabh Bachchan Dairy Milk, Dabur products, Eveready,

Parker
Pen, Reid & Taylor, Boroplus, Binani
Cement

Preity Zinta Perk, Rexona, Lays, Santro, H&S, BSNL,

Godrej

Rani Mukherjee Munch, Fanta, Aveo

Kajol Tata Indicom, Whirlpool, Asmi Jewellery

Ajay Devgan Tata Indicom, Whirlpool

Aamir Khan Coke, Titan Watches, Innove

Saif Ali Khan Lays, Aveo, Taj Mahal Tea, Royale

Paints
Zayed Khan Mirinda

Sania Mirza Lipton Tea, Spirit

Isha Koppikar Garnier

Aman Verma Harpic

Mini Mathur Big Bazaar

Shweta Tiwari Gala Brush

Priyanka Chopra Spice

Hrithik Roshan Coke, Sony Ericsson, John Players, Tata

Sky

Sushmita Sen Pantene

Vivek Oberoi Babool Toothpaste

Tabu Tetra pak

Mallika Sherawat 7 Up

Juhi Chawla Henko, Kurkure

Hussain Vim, Big Bazaar

Hema Malini Kent Mineral Water, Bank of Rajasthan

Esha Deol Kent Mineral Water

Bipasha Basu Clinic All Clear

Sonali Bendre Nirma Beauty Soap

John Abraham Clinic All Clear, Yamaha Motor Cycle

Akshay Kumar Thums Up

Madhuri Dixit Lux

Saurav Ganguly Sona Chandi Amrit Prash

Rahul Dravid Reebok, Bank of Baroda

Sehwag Boost

Riya Sen Limca

M S Dhoni 7 Up, Brylcreme, Star City, TVS Bykes

Yuvraj Singh Parachute Oil

Kareena Kapoor Lux

Ayesha Takia Hair Care Oil

Neha Dhupia Godrej Renew Hair Color

Gauri Pradhan Keo Karpin Hair Oil

 Sangeeta Ghosh BSNL

Indian Cricket Team Pepsi

It is evident that recalls of ads having Film Stars were more than any other celebrity showing that
people must be relating them in their purchasing behavior.

The study found that very few respondents (37%) have bought product(s) under the influence of any
celebrity which means that a consumer wants something more in an advertisement than a celebrity to
be influenced enough to buy the product. All these respondents were happy from the product
description given by celebrity in the advertisements which prompted them to buy that product
followed by Good Image of celebrity, rational appeal etc.
 OBJECTIVES OF THE STUDY AND RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY:-

MAIN OBJECTIVES:-
 To analyze the awareness level of consumer about Pepsi.:- the main objective of the study
is to know the awareness level of Pepsi properly because without knowing the awareness level it is
not possible to conclude how much consumers like Pepsi
 To study about Pepsi Co. :- it is very important to know the proper and full information
about Pepsi company
 The Marketing Mix strategies adopted by the Company.:- it is also very important to know
the mm strategies of company because of mm strategies it is able to know how much market is
capture by Pepsi through product , price , place and promotion

PRIMARY OBJECTIVES:

 To analyze the market potential of Pepsi India ltd. in Delhi & NCR:- because of analyzing
the market potential it will be helpful to know the status of Pepsi in Delhi and ncr
 To develop deep understanding of customers through qualitative and quantitative
research.:- what is the nature of the consumes towards Pepsi , it will be developed with he help of
research
 To understand advertising strategies followed by Pepsi Company:- it is very important to
understand the strategies because only then we are able to make the report which shows the proper
strategies follow by company to attract consumers
 To evaluate the effectiveness of Pepsi advertising strategies.:- with the help of evaluation it
will properly shows that whether the ads are effectively attract consumers or not

SECONDARY OBJECTIVES:

 To have a pragramatic approach to the theoretical learnt within the four corners of the
classroom.
 To get first hand experience of advertising.:- proper experience of advertising it will help
to attract consumers
  To develop selling skills which are of utmost importance for a professional.:- without
selling skills it is impossible to sell cold drink to consumers
 To know the media and its importance in today’s business environment.:- media plays a
very important role in making the product successfully in market and aware he consumers towards
the Pepsi.

RESEARCH METHODOLOGY:-

Meaning of Research:
Research is simply the process of finding solutions to a problem after thorough study and
analysis of the situational factors. In other words, Research is defined as human activity based on
intellectual application in the investigation of matter. The primary aim for applied research is
discovering, interpreting, and the development of methods and systems for the advancement of
human knowledge on a wide variety of scientific matters of our world and the universe

Research Design:

Research design is a framework or blueprint for conducting the research project. It gives
details of the procedures necessary for obtaining the information needed to structure or solve
research problems. Although a broad approach to the problem has already been developed, the
research design specifies the details – the nuts & bolts of implementing that project. A research
design lays the foundation for conducting the project.

Type of Research:

The proposed research is of exploratory in nature.

Universe of Research:

Universe for proposed research will be all the customers of soft drinks and who are watching ads of
Pepsi.
Sample Size:

From the large number of population of Delhi and NCR areas. Researcher will be selecting a true
sample of PepsiCo customers who are watching ads of Pepsi on TV. The proposed sample size is 50

Sampling Units:

Sampling units will be selected from the market of Delhi and NCR.

Sampling Method:

Random sampling Method adopted for the purpose of proposed research.

Methods of Data Collection:

The data will be collected randomly from the consumers through the surveys including personal
interview, telecalling, etc.

Primary data: To collect primary data, the Researcher will use self designed structured
questionnaire with a checklist for proposed research work. The Researcher will personally visit
sampling units for the purpose of data collection. And the researcher also conducts personal
meetings also.

 Questionnaire
 Survey

Secondary Data:
 Magazines and newspapers
 Internet
 Company sources
 Various publications and articles
 Books on marketing.
 ANALYSIS AND INTERPRETATION OF DATA

India CSD Market Segmentation, % by Volume in 2000.

Sector % Share

DRINKS PERCENTAGE
Cola/Pepsi 71.00%
Lemon/
lime 14.20%
Mixers 6.40%
Orange 0.40%
Other 8.00%

India CSD Market Segmentation, % by

Volume in 2000.
8%
0%
6%

14%

72%

Cola/Pepsi Lemon/ lime Mixers Orange Other

 PREFERENCES OF SOFT DRINK BY CONSUMERS

Pepsi 6
Coca cola 10
Dew 2
Mirinda 11
Sprite 7
0thers 13

From the survey conducted of 50 samples it is clear that mostly consumers preferred other cold drink , 11
consumers prefer mirinda and 10 preferred coca cola and only 6 consumers preferred only Pepsi

P re fre n c e s o f s o ft d rin k b y c o n s u m e rs

14
12
Customers prefernce

10
8
6
4
2
0
P eps i C oc a c ola D ew M irinda S prite 0thers
S o ft d rin ks

S eries 1
 WHY CONSUMERS LIKE SOFT DRINKS BECAUSE OF

Advertisement 2
Celebrity
Endorsement 1
Liking 34
Brand Loyalty 4
Quality 4
Others 4

According to the survey conducted it is clear that 70% consumers like soft drink because of liking and
8% like because of brand loyalty and quality

W h y c o n su m e rs lik e s o ft d rin k b ea cu se o f?

4%
8%
8% 2%

8%

70%

A dvertis em ent Celebrity E ndors em ent

Lik ing
B rand Loy alty Q uality O thers
 FROM WHERE CONSUMER PURCHASE SOFT DRINK

Restaurant 10
Mall 4
Retail shop 35

According to the survey, it is clear that 72% consumers purchase cold drink from the retail shop, 20%
purchase cold drink from restaurant and 8% from the mall.

F ro m w h ere co n su m er p u rch ase so ft d rin k?

20%

8%

72%

Res taurant M all Retail s hop

SOURCE OF INFORMATION ABOUT SOFT DRINK
Print media 12
Electronic media 38
Internet 0

According to the survey conducted, it is clear that consumers get in touch with the information of Pepsi
through electronic media.

Source of information about soft drink

40

30
Value

20

10

0
Print m edia E lectronic m edia Internet
Source of inform a tion

Series 1
Market Share- Companies

Coca - Cola 42%

Pepsi 32%

Cadbury 15%

Others 11%

Market Share- Companies

Others
11%
Cadbury
Coca - Cola
15%
42%

Pepsi
32%

Coca - Cola Pepsi Cadbury Others

Market Share – Brands

Coke Classic 31%

Pepsi Cola 20%
Diet Coke 17%
Mountain Dew 11%
Diet Pepsi 11%
Sprite 10%

Market Share -- Brands

Sprite
Coke
Diet Pepsi 10%
Classic
11% 31%
Mountain
Dew
11%
Pepsi_ Cola
Diet Coke 20%
17%

Coke Classic Pepsi_ Cola Diet Coke

Mountain Dew Diet Pepsi Sprite
 CONCLUSION
The project aims at studying and analyzing the advertisement, which creates consumer attentiveness towards
Pepsi products. The main aim of the project is to understand that how much consumer is aware to the Pepsi
product with the help of advertisements.

The soft drink industry has increased 25% annually, for the indian market pepsi is the biggest companies in
the industry. Pepsi use the marketing mix strategies properly and effectively to influence the consumers to
purchase the pepsi products. Pepsi-Cola is a carbonated beverage that is produced and manufactured by
pepsico. It is sold in stores, restaurants 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, including Diet Pepsi, Crystal Pepsi, Pepsi
Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available
in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico
and Pepsi Ice Cucumber in Japan.

Now come to our topic analysis of advertisement dynamics of Pepsi cola drinks which creates consumer
attentiveness Advertisement is the mass paid communication of building brands through persuasive
communication and positioning them in the consumer's perception with constant eye on the market
environment and consumer expectations. The primary target is to create the proper brand image in the mind
of the customers because without creating the brand image consumer is not able to analysis the product
easily. There are various ways like sales promotions, advertising etc to create the brand image.

Analysis of advertisement dynamics of Pepsi cola drinks which creates consumer attentiveness gives the
following conclusions:-
1. Pepsi have spent a lot of money on advertisements to enhance consumer awareness and
motivation. The packaging of Pepsi products are appealing and outstanding by the vivid color and
designed shape.
2. Celebrities are invited to boost brand awareness. Celebrities are only present in the ads just
to boost the product awareness. Majority of the respondents who were not influenced by the
advertisement responded that they did not find the persuasiveness in the advertisement. And few
people who purchased the product(s) responded that they were influenced by the product
information given in the advertisement and would have bought the same product(s) had they not
been endorsed by any celebrity. The use of celebrities in advertising is like a double-edged
weapon. It is to be carefully planned, thoroughly analyzed and properly executed.

From the conducted survey from mix segment it is clear that 99 percent consumer says that
they drink soft drink. And the most favorable is coke and after coke its mirinda and third place
taken by Pepsi. The most inflective factor likes which influence consumers to purchase Pepsi
but sometimes brand loyalty also does the same work. The plastic bottle packaging is mostly
preferred by the consumers but glass bottles are also preferred by ladies because they generally
come in carat. Mostly Pepsi purchased by consumers through retail shops. The maximum sales
of Pepsi are coming trough 1litre bottle. The frequency of intake of Pepsi by consumers is very
high. Most source of information is electronic media like TV, radio for consumers. 68%
consumers said that they change their channel during advertisement. Almost all consumers said
that they are satisfied with the information about Pepsi which they are getting through
advertisement. 86% of the consumers said that they never influenced by any celebrity to
purchase a particular soft drink inspite of that the sale of Pepsi reached at the top level. And in
last 56% consumers said that whatever the expenses incurred by a company on advertisements
is not a wastage.

Conclusions from the survey are as follows:-

1. According to the survey conducted of 50 samples it is clear that mostly consumers

preferred other cold drink , 11 consumers preferred mirinda and 10 preferred coca cola and only
6 consumers preferred only Pepsi.
2. According to the survey conducted it is clear that 70% consumers like soft drink because
of liking and 8% like because of brand loyalty and quality.
3. According to the survey conducted it is clear that 72% consumers purchase cold drink
from the retail shop, 20% purchase cold drink from restaurant and 8% from the mall.
4. According to the survey conducted, it is clear that consumers get in touch with the
information of Pepsi through electronic media.
5. According to the survey it is clear that the coca- cola company capture the highest market
share i.e. 42% in the soft drink industry, Pepsi stands at the second place with 32% market share.
6. According the survey it is clear that the first position in the market share of brand is
captured by the coke with 31% and after that Pepsi cola with 20%.
7. According to the survey it is concluded that the soft drinks advertisements is heavily
advertised in feature films i.e. 21%.
8. According to the survey it is cleared that zone wise composition of Pepsi and coke. Pepsi
secure better place than coke.
 BIBLIOGRAPHY

BOOKS:

Name: Marketing Management

Author : Philip Kotler
Edition: 2006

Name: Advertising Management

Author : U.C. Mathur
Edition: 2005

Name: Marketing Research

Author : Naresh K Malhotra
Edition: 2004

OTHER SOURCES:
 Company bulletins & newsletters.
 Company browser
 Business today,

WEBSITES:

 www.wikipedia.com
 www.google.com
 www.pepsico.com
 APPENDIX/
QUESTIONNAIRE
1. Name: - __________________________Phone No.:-________________

2. Address: - ___________________________________________________

3. Age group:-
 Under 15
 16-19
 20-30
 30-45
 above 45

4. Do you drink any soft drink?

 Yes
 No

5. Which soft drink do you prefer?

 Pepsi
 Coca-Cola
 Dew
 Mirinda
 Sprite
 Others

6. Why do you like Pepsi because of?

 Advertisement
 Celebrity endorsement
 Liking
 Brand loyalty
 Quality
  Others
7. What kind of packaging do you prefer?

 Can
 Plastic bottle
 Pouch
 Glass bottle

8. From where do you purchase Pepsi?

 Restaurant

 Mall

 Retail shop

9. What quantity of Pepsi do you usually buy?

 250ml

 500ml

 1lt.

 2lt.

10. Your frequency of intake?

 Rare

 Once in a while

 Frequently

 Very frequently

11. What is the source of information about Pepsi?

 Print media.

 Electronic media

 Internet

12. Do you change the channel during advertisement?

 Yes

 No

13. Do you think advertisement give you all sort of information about a brand or
retailer/wholesaler play a major role in guidance?

 Yes

 No

14. Has any celebrity ever influenced you to buy a particular brand of soft drink?

 Yes

 No

15. Do you think advertisement for soft drinks is share wastage by a company?

 Yes

 No