Campaign

By: Rawan Ashraf/14104116 - Shawkat Shamel/14104955

Seif El-din Moataz/14105331

Presented to: Dr/ Samia Hassan

Supervised by: Dr/ Zeina Haggag

Contents
Introduction ................................................................................................................................................... 3
Executive summary ....................................................................................................................................... 4
Company Overview ...................................................................................................................................... 5
Marketing Mix .......................................................................................................................................... 6
Product .................................................................................................................................................. 6
Price ...................................................................................................................................................... 6
Promotion.............................................................................................................................................. 6
Place ...................................................................................................................................................... 6
SWOT Analysis ........................................................................................................................................ 7
Strengths ............................................................................................................................................... 7
Weaknesses ........................................................................................................................................... 7
Opportunities......................................................................................................................................... 7
Threats................................................................................................................................................... 7
Buyer Analysis .............................................................................................................................................. 8
Competitive Review...................................................................................................................................... 9
Branding Strategy ......................................................................................................................................... 9
Segmentation, Targeting and Positioning ........................................................................................... 10
Communications objective & budget request ............................................................................................. 12
Campaign .................................................................................................................................................... 13
Campaign Objectives .................................................................................................................................. 13
Consumer Decision Process .................................................................................................................... 14
Who buys the product?............................................................................................................................ 14
What problem will this product solve? ............................................................................................... 14
Which attributes are important and why?........................................................................................... 14
Questionnaire analysis ................................................................................................................................ 15
Consumer buying decision Problem ........................................................................................................... 18
Problem Recognition .............................................................................................................................. 18
Information Search.................................................................................................................................. 19
Evaluation of Alternatives ...................................................................................................................... 19
Purchase decision and Post-Purchase Behavior ...................................................................................... 19
IMC components......................................................................................................................................... 19

Page | 2
Appendix ..................................................................................................................................................... 21

Introduction

PepsiCo has a complementary food and beverage portfolio that enables them to provide more

choices for their customers, and drives lower costs, productivity enhancements and new

capabilities. Their products are available around the world and they own a portfolio that includes

22 brands that each generates more than $1 billion in estimated annual retail sales. This research

will be made to conduct a campaign of a new product to be developed called Pepsi-Mini the

beverage line by Pepsi-Cola, and by analyzing its aspects and how it can bring new customers

while retaining the current consumers.

Page | 3
Executive summary

In this research paper, IMC plan was conducted it to promote for a new product to be introduce

called Pepsi-Mini , we prepared an overview of PepsiCos company then a research of the

marketing mix that include product, price, promotion and place . Also a SWOT analysis that has

all the strengths, weaknesses, opportunities and threats.

Then a buyer analysis was conducted to know how the Pepsi started and whats the key selling
points of the our product which are Smaller sodas are easier for the average consumer to
digest, Consuming less but enjoying the taste, Acts a portion controller and Offers all the
benefits as the larger size disregarding the guilt and bloat.

After that a competitive review was examined and Pepsis direct competitor is Coca-Cola hold

43% of the market share while its indirect competitors hold not more 4% or 5%. Then the

branding strategy which consists its aim for Pepsi is to brand it as youth oriented product as

young people are the main aim and target of the product. They have a multi-segment strategy as

each line of Pepsi (regular, diet and zero sugar) is aimed at a different segment.

Then communications and budgeting which shows the objective of marketing and whats the aim

behind the message sent and how much will it cost us. Followed by consumer buying decision

and how a product like Pepsi-Mini has a w low-level of involvement.

A questionnaire was conducted to test the introduction of Pepsi-Mini and it was seen from a

positive light as it was agreed upon for purchasing from most respondents. Followed by the IMC

components which are the ways of advertising and we applied three stratigies, a traditional way,

non-traditional way and social media strategy.

Page | 4
Company Overview

PepsiCo that was formed in 1965; with the merger of Pepsi-Cola Company and Frito-Lay, Inc.
At that time, Pepsi-Cola Company was manufacturing Pepsi-Cola, Diet Pepsi, and Mountain
Dew. Frito-Lays products included Fritos corn chips, Lays potato chips; Cheetos cheese
flavored snacks, Ruffles potato chips, and Rold Gold pretzels. PepsiCo grew bigger with the
1998 acquisition of Tropicana and the 2001 merger with Quaker Oats.

PepsiCo Inc. is a leading food and beverage company that manufactures and distributes its
products in more than 200 countries. Food products that PepsiCo manufactures include chips,
flavored snacks, cereals, rice, pasta, and dairy-based products. The companys beverage product
portfolio includes carbonated soft drinks, juices, ready-to-drink tea and coffee, sports drinks, and
bottled water. Headquartered in Purchase, New York, the company employs around 274,000
people worldwide.

According to Information Resources, Inc. a market research company, PepsiCo owns nine of the
40 largest packaged goods trademarks in the United States. The company owns several brands,
and 22 of them, including Pepsi, Lays, and Gatorade, generate more than $1 billion each in
revenues.

Branding and advertising are crucial for companies in the highly competitive food and beverage
industry. PepsiCo Inc. (PEP) is a leading player in the food and beverage industry with a
presence in more than 200 countries.

PepsiCo classifies its brands into three categories: Fun for You, Good for You, and Better for
You. The Fun for You brands comprise popular flavors in the food and beverage category such
as Pepsi, Lays, Cheetos, Mirinda, and Mountain Dew. The Better for You brands offer snacks
baked with lower fat content such as the Baked Lays product, snacks with whole grains, and
beverages with fewer or zero calories and less added sugar. The Good for You brands comprise
nutritious products that include fruits, vegetables, whole grains, low-fat dairy, nuts, and seeds,
which adhere to limits on sodium, sugar, and saturated fat. The category includes established
brands such as Tropicana, Aquafina, and Quaker
Page | 5
Marketing Mix

Product Price

Beverage Products Diet Pepsi, Gatorade, Expenses related to transportation,

Mountain Dew, Thirst Quencher,
Tropicana, Aquafina Bottled Water, Sierra
Mist.
Savory Food Snacks Fritos Corn chips,
Cheetos, Ruffles Potato Chips, Lays Potato
Chips, Tostitos, Doritos.
Other Food Products breakfast cereals,
cakes and cake mixes.
PepsiCo recently created Baked Snacks
North America Business Unit to meet
consumers interest in more nutritious
snacks and foods.
ingredients and labor continue to pressure
the beverage industry
toward price increases.
The company strives to cut or maintain
current prices by cutting overhead and re-
engineering the manufacturing process.
PepsiCo is expanding its use of
inexpensive and recyclable plastic bottles;
nevertheless the company has instituted
some price increases in recent years,
specifically in its overseas markets

Promotion Place

Pepsi introduced a
promotion where customers could
PepsiCo is primarily a US based company
accumulate Pepsi Points from buying
various products these points could be with approximately 52% of its revenues
used to by other products.
located in the states.
PepsiCo Egypt always does lottery
campaigns that give out football tickets to Pepsi spread worldwide.
for seeing the game live.
Most recent promotion in Egypt is gaining
more minutes when you drink more of
Pepsi in association with Vodafone
Company, with a celebrity ambassador
Mostafa Amar.

Page | 6
SWOT Analysis

Strengths Weaknesses

Strong brand image Failed Products

Broad product mix Brand Ambassadors
Extensive global production network value addition
Extensive global distribution
network
Brand equity
Product portfolio performance
Strong distribution
Customer Loyalty
Clear target audience

Opportunities Threats

Business diversification Decline in Carbonated Drink Sales

Market penetration in developing Intense Competition
countries Health Factor
Healthy Options
Corporate social responsibility
Flavors

Page | 7
Buyer Analysis

In 1898 a pharmacist who invented a soft drinks formula that would help people with their
digestion. His drink was first called Brads Drink by his friends. When the formula proved a
success, Bradham applied to the U.S. Patent Office for a trademark for the Pepsi-Cola name.
Pepsi-Colas first bottling franchise was established in Charlotte and Durham, North Carolina,
and Pepsi appealed to the consumers.

In the U.S., PepsiCo was category captain in the savory snack segment with a market share of
36.4 percent in 2014. In the vibrant and competitive industry that is soft drinks, where around
800 million product servings are sold every day, Egypt and the Arab region are key consumption
markets due to the hot weather conditions. In Egypt, Colas represent a relatively large
component of the carbonated soft drinks sector by a considerable margin and Pepsis market
share has leapt from 15.1% in January 2003 to 17.1% in January 2004. And by 2014 it was stated
that the company has 51% of the market share of carbonated beverages in Egypt.

In the past few years, Pepsi s product range has grown to become a comprehensive portfolio
comprising Pepsi, Diet Pepsi, Pepsi Twist, Pepsi X-Energy Cola, 7UP, Diet 7UP, Mountain
Dew, Mirinda Orange, In 1908, Pepsi became one of the first companies to replace horse-drawn
carts with motor vehicles for deliveries;

Constant review of line extensions enable the brand to meet changing market trends like the
emergence of power boosters and the introduction of flavour infusement, such as with the launch
of Pepsi Twist in the Egyptian market the refreshing flavour of Pepsi, with a lemon twist.

The Key selling points; are

Smaller sodas are easier for the average consumer to digest

Consuming less but enjoying the taste
Acts a portion controller
Offers all the benefits as the larger size disregarding the guilt and bloat.

Page | 8
Competitive Review

Pepsis main and direct competitor is Coca-Cola which is 43% while Pepsis is 53%; and
considering its availability, If a Pepsi product is now available at any outlet and the competitor
brand is available.

Despite being a global brand, Pepsi has built its success on meeting the egyptian consumer's needs,
particularly in terms of making the brand synchronize with localized events and traditions. Instead of
harping on its global line, it tries to plug into ethnic festivals, use the language of the country, and
blend into the local fabric. Pepsi is using both national campaigns-such as the Drink Pepsi, and
YALLA slogan instead of NOW in the name of adapting.

However, Coca-Cola instead of creating a bond with the customers through small but high-impact
events, Coca-Cola chose to associate itself with national and international mega events like the and
world cup football and Olympics. But now coke is also entering into local actions. Coke is also trying
to make their brand synchronize with localized events traditions and festivals. Coca-Cola new tag
line in this advertisement is "Real shopping, real refresher". In this way Coke is copy Pepsi.

The indirect competitors of Pepsi in Egypt are:

Sina-Cola
Big-Cola
Sport-cola
Crush
Canada Dry
Schweppes

And all of these combined hold not more than 5% of the market share, as they are demanded and
sold more in agricultural regions and manufacturing provinces or suburbs; as they hold the same
amount and sold at cheaper price point.

Branding Strategy

Page | 9
Pepsis brand positioning is based on its sweet sugary taste suited for its young consumers. Thus
it was able to create a Point of difference from Coca cola; therefor it has maintained continuity in
its brand image and has been consistent in its brand promise of refreshing drink for Youth. It has
always depicted a defying attitude and continued to challenge the market leader. Its campaign
have been about making a mark and proving its real benefit among young people & cool people.

Pepsi has been successful in capturing the Youth Spirit. It has also ventured out to different
customer segments with different offering for e.g. Diet Pepsi was introduced to cater to the
health conscious people. Pepsis entire Product Portfolio caters to the different customer
segments. Its considered to be a new generation drink, the drink has managed to grab the
imagination of Teens and young Adults alike. Pepsi through the combination of innovative ideas,
effective communication and aggressive advertising has been able to manage its consistency and
be relevant to its customers.

Pepsis main and direct competitor is

Segmentation, Targeting and Positioning

PepsiCo segmentation, targeting and positioning decisions can be specified as the essence of
overall marketing efforts. Segmentation involves dividing population into groups according to
certain characteristics, whereas targeting implies choosing specific groups identified as a result
of segmentation to sell products. Positioning refers to the selection of the marketing mix the most
suitable for the target customer segment.

PepsiCo uses multi-segment type of positioning and accordingly, it targets more than one
customer segment at the same time with different products or service packages. For example,
Pepsi-Cola is positioned as soft drink that tastes good and has a pleasantly refreshing impact.
However, Pepsi-Cola contains a high amount of sugar and it is not positioned for customers that
are concerned about health implications of consuming carbonated soft drinks. For this specific
customer segment PepsiCo offers Diet Pepsi, which is positioned as a soft carbonated drink that
contains less among of sugar compared to Pepsi-Cola and other soft drinks.

Page | 10
Type of segmentation Segmentation criteria PepsiCo target segment

Region Domestic/international

Geographic

Density Urban/rural

Age 15-45

Gender Males & Females

Bachelor Stage young, single people not living at home

Demographic Newly Married Couples young, no children
Life-cycle stage
Full Nest I youngest child under six
Full Nest II youngest child six or over

Income Average, above average and high earners

Occupation Students, employees, professionals

Degree of loyalty Hard core loyals and Soft core loyals

Benefits sought Refreshment, enjoying good taste, satisfaction of a habit, spending time
Behavioral
Personality Easygoing/determined/ambitious

User status Regular users

Social class Working class, middle class and upper class

Psychographic
Lifestyle Aspirer, Succeeded, Explorer

Page | 11
Communications objective & budget request

PepsiCo uses print and media advertising extensively as a traditional channel to transmit
the marketing message to the target customer segment. PepsiCo print and media
advertising occasionally contain campaigns that encourage gatherings of friends and
families.

Sales promotions are used by PepsiCo in a number of ways to boost the volume of
revenues for short-term perspective. Apart from the application of standard sales
promotion tools such as money off coupons, competitions, point of sales materials and
loyalty rewards, PepsiCo is known for launching a series of original sales promotions
campaigns. The objective is to gain market share.

According the budget request it is set according to the sales ratio in a payout planning
method.

The budget estimate that we need is around 80 million EGP, divided between traditional
media and untraditional media; where there will be a continuous schedule where the
budget I divided equally through the year.

Page | 12
Campaign

We chose to develop or introduce a new product to the Egyptian market,

and that is Pepsi Mini as it was once available but however showed
failure because of the following reasons; the product was imported
therefore sold at a higher price point of 10EGP not only that but it was
only 150ml; while the local made was then sold at 2.50EGP and had
330ml so it almost half a size smaller and triple the price; and the
Egyptian loved big portions. So, the product failed and was then regained
from the market.

Our campaign will have a price/quality and product users positioning strategy as it will focus on
younger more youthful, energetic and powerful consumers, since Pepsi is full of life and always
sponsors music festival, athletics and sports.

Campaign Objectives

1) Create product awareness among 70% of the target audience.

2) Change 50% of the existing customers attitudes.

3) Penetrate and saturate the market with a new product.

4) To increase market share by 2-5%.

5) Increase online brand awareness of product.

6) Increase online engagement.

7) Develop and maintain regular purchase of the Pepsi-Mini.

Page | 13
Consumer Decision Process

Who buys the product?

This is consumed unanimously with fast food, also hard drinks or as a refreshing drink. Mostly
consumed by College students, frequent restaurant visitors form the major chunk of buyers. The
product has young buyers, as elders are a lot more health conscious. Hence, the brand is aware of
the youth factor therefore Pepsi has youth oriented Brand Ambassadors such as Mohamed Salah
and Mohamed EL-neny both famous football players in their early twenties.

What problem will this product solve?

It solves a problem; it acts as a complimentary product to fast food. Items such as burgers and
pizza are dry to consume by itself; therefore cola drink which is sweet and has a fizz to it goes
very well with fast food, satisfies the thirst need and also is quick filler to the stomach.
Moreover, it works as a refreshing drink a quick fix on a hot afternoon after college/working
hours.

Which attributes are important and why?

Since the product is cheap/affordable and available almost everywhere its consumption will be
higher. Keeping in mind the customer perceived Pepsi with a value and not just a onetime cheap
refresher. Pepsi cola product has limited-problem-solving therefore the cost of the product is
important but and the quality and taste of the product is a major key focus as it will make the
consumer purchase the product over and over again since it has low-involvement.

Page | 14
Questionnaire analysis

Page | 15
Page | 16
Page | 17
 Cons
umer
buyi
ng
decis
ion
Prob
lem

Probl
em
Recog
nition

Page | 18
The biological need will be hunger, but our focal point is Healthier choices or alternative; the
Youth are now much more health aware than any time before; therefor the smaller portion with
fewer calories and less carbonated soda. Therefore when the biological need strikes it will be an
available choice.

Information Search
Because of the availability of the product and the intense commercial sources through TV
advertisements and Billboards, also public sources such as Mass Media; Pepsi Mini will be
among the choices that come to mind of the consumer.

Evaluation of Alternatives
The consumer will make the buying decision according to the price and quality of the product,
therefore Pepsi Mini will fall under such category since it is prepared with a price/quality
strategy that makes it attainable to the chosen segment.

Purchase decision and Post-Purchase Behavior

Since theres respectively a low-involvement procedures taken When the consumer purchases
Pepsi Mini and since the brands market is already saturated; the prices and quality are a known
factor; all of this will cause a positive reaction from the consumer or a satisfied effect from the
products performance.

IMC components
Traditional media:

Billboards
Digital billboards
Brand websites
Television Ads
Sales promotions such as discounts.
Event sponsorship

Social Media:

Page | 19
 Facebook: is the most widely used social media platform. The cover photo will reflect the IMC
campaigns creative look and feel. To draw potential consumers to our Facebook page, we will
hand out incentives with QR codes printed on the product; which will increase engagement.
Hashtag Use: customers will use #travel-with-pepsi-mini, which will increase online brand
engagement and online awareness.
Twitter: is the second most widely used social media platform in our target demographic, with
16% of users being between the ages of 18-25 who live in an urban setting.
Instagram is the fourth most popular social media platform ) and it continues to grow in
popularity. It is also an important linking social media platform as posts on Instagram can be
shared through Facebook and Twitter.
All of our Instagram posts will be shared on Facebook and Twitter using the hashtags outlined in
the Twitter section to encourage cross-platform social networking/ marketing of Pepsi mini.
We will hold an Instagram contest by encouraging our followers to participate by posting on both
of our Facebook and Twitter accounts. Well ask participants to post photos on Instagram of
him/her living a healthy lifestyle using the specific hashtags outlined in the Twitter section. We
will pick a photo winner, and that Instagram user will be awarded a prize. All of our Instagram
posts will continuously work to reflect our key creative messages.

Page | 20
Appendix

Questionnaire
1) What is your age?
o 13 to 18
o 18 to 25
o 25 to 28
o 28 to 34
o 34 to 40
o 40 to 50
o 50 or older

2) What is your occupation?

3) Do you drink Carbonated/Soda drinks?

o Yes
o No

4) How frequently do you consume carbonated drinks?

o Daily
o Weekly
o Monthly
o Yearly
o Never

5) What do you like the most about Pepsi?

o Taste
o Satisfies my thirst
o Price
o Advertisements
o Other reason

Page | 21
6) Which of PepsiCo's carbonated beverage do you prefer more?
o Regular Pepsi
o Diet-Pepsi
o Peps-Max (Zero Sugar)
o Mirinda
o 7UP
o Mountain-Dew
o Tropicana-Frutz

7) If Pepsi would introduce a smaller can, would you prefer that?

o Yes
o No
o Maybe
o Other

8) Will a smaller Pepsi can with a lower price be a healthier/better purchase choice?
o Yes
o No
o Maybe
o Other reason

9) Which is better Pepsi or Coca-cola?

o Pepsi
o Coca-Cola
o Equal

10) If Pepsi-Mini where to be available at a price point of 2.50EGP, would you purchase it?
o Yes
o No
o Maybe

Page | 22