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Acknowledgement
I am grateful to the university of Mumbai to have introduced this internal assessment pattern, which gives us oppurtunity to conduct real life projects. Firstly we would like to thank Professor Nitya for giving us an opportunity to work on this project. We would like to express my profound gratitude to her as without her valuable guidance this project would not have fully completed. We would also like to express our thanks to all those people who gave us their valuable time and answered all our questions patiently. Their views and suggestions are very important input into completion of this project. Finally we would also thank our parents and friends who have always co-operated and encouraged us to undertake such activities.

Index
1. Table of charts 2. Synopsis 3. Introduction to the company 4. Product Profile 5. Detail Analysis 6. General Observations 7. Recommendations 8. Conclusion 9.Bibliography 10. Annexure 20 21 4 5 6 7 8 15 18 19

Table of charts 1. Consumption rate 2. Preferred brand 3. Media 4. Ad frequency 5. Promotion 6.Buying Decision 7. Celebrity Marketing 8.Over Promotion & buying decision 9.Attributes 10.Reaction 11. If no exposure 12. Why Pepsi? 13. Occasions 14. Ad recall 15. Pepsi Star 16. Brand Association 17 12 12 13 13 14 15 15 16 16 9 9 10 10 11 11

Synopsis: Pepsi: the brand that symbolizes youth, fun, frolic along with dil ki kashti and sapno ka shor. It is supposed to be the brand for generation next. Innovation par excellence: Pepsi has always surpassed its competitors but today the scenario seems to have changed. The critics feel that Pepsi ads are empty in the creativity box and it has been trying to play by the magic of celebrities for the sake of it. Pepsi has time and again changed its positioning Now being the official sponsorer of the world cup it has changed its image from being nothing official about it to des ke rang mein rangle: patriotic icy the Pepsi Cola. This aim at connecting the cricket lovers across the country with help of Pepsi blue. Besides this, Pepsi to promote itself with cricket has also unveiled a specially composed music video with Adnan Sami titled O ye O which features a host of Pepsi brand ambassadors including Amitabh Bachchan, Kareena Kapoor, Abhishek Bachchan and Fardeen Khan. At the same time they have come up with a new drink named as mountain dew. It has being positioned as an energy and exhilaration Pepsi does excessive promotion mainly on television. Television is mainly used, as they feel it is a medium that creates warmth, empathy, and bonding. This year, Pepsi has earmarked 20 per cent of its total advertising and promotion budget on sponsorship compared to the usual 10 per cent in other years. Apart from world cup fever with the approach of May and June, the hottest months of the year here, the company gear up their marketing efforts, hoping to expand their reach to larger swaths of the Indian population. This highlights that the no.1 cola company spend huge amount in promotion but has this kind of excessive advertising helped the brand or it has diluted its image? We thereby are doing a study of the effects of excessive advertising on the final consumer and their buying behavior.

Introduction to the company: PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International; the beverage businesses of Pepsi includes drinks like Pepsi blue, diet Pepsi, Tropicana, Lipton etc. Pepsi brands are available in nearly 200 countries and territories. It entered the Indian marketing the year 1991 after the liberalization and today, with its operations in more than 40 countries, it is the leading multinational snack chip and beverage company, accounting for more than one quarter of international retail snack chip sales. Its products are available in some 120 countries. PepsiCos beverage business was founded at the turn of the century by Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola. Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist brands account for nearly half of total soft drink sales in India. Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina bottled water, Fruitworks and All Sport. Mission: Our mission is to be the world's premier consumer products company focused on convenience 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 for honesty, fairness and integrity. PepsiCo has been rated the `World's Most Admired Beverage Company' by Fortune magazine. In the latest survey, Pepsi has moved to the top spot from the fifth position that it occupied last year. Its competitor Coca-Cola is ranked 2nd in the ratings. In India, Pepsi is reportedly the largest-selling cola company controlling around 52 per cent of the market.

Product Portfolio:

Pepsi

Pepsi blue

Lipton iced tea.

Mountain dew

Aquafina

Diet Pepsi

Slice

Mirinda

Research Methodology
To begin with the research we had collected the secondary data as in the sales volume, market share and the company as well the product profile from the net and some magazines. As this was not enough to meet our objective a detailed primary research was carried out by formulating a questionnaire with qualitative as well quantitative questions in it. After preparing the questionnaire a sample size of 100 was selected on random. This sample size included the female population of age group 15-40 and male population ranging from 15-40, this helped us to know the reaction of all the age groups like some were studying in college, some working in a office, housewife and others. The extent of our survey is limited to the suburban area of Mumbai, basically the areas of Andheri, Vileparle, Malad and Santacruz. A filed survey was conducted which took about 10 days, followed by detailed analysis of the data collected. And finally recommending the company to make some changes on the basis of the finding of this survey.

Analysis
How often do you consume Pepsi?

Consumption Rate

14%

6%

22%

18% 40%
once a day once in two days once a week twice a week others

From the above chart we can interpret that at least 40% of people consume once a week, while 22% consumes it once a day.

If your preferred brand is not available do you switch over to other brands?

Preferred Brand
26%

74% Yes No

This reflects that 74% of people agree to the fact that if the brand they prefer is not available to them they switch over to another brand without any botheration, while only 9

26% of people will remain loyal to their own preferred brand and not try out something else.

In which media do you see the product ad regularly?

MEDIA
Newspaper Cinema Outdoor Media Magazines Radio Television

10% 8% 15% 8% 7% 55% 20% 40% 60%

0%

The media in which people see maximum of Pepsi ad on regular basis is Television i.e. 55% followed by outdoor publicity like hoardings, which is 15%.

How frequently do you Pepsi ads?

40% 30% 20% 10% 0%

AD FREQUENCY 36% 40% 22% 2%

Hourly Once in a Twice a day Once a day week

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40% of people agree that they come across Pepsi ads at least once a day, while 36% of people say that they see Pepsi ads hourly.

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According to you Pepsi is..

10%

18%
Properly Promoted Excessively Promoted Poorly Promoted

72%

When asked about the promotions done by Pepsi, 72% of them said that Pepsi over Promoted while 18% of them feel that it is properly promoted.

What influences your decision to buy the drink?

BUYING DECISION 30% 25% 20% 15% 10% 5% 0%
Celebrity Marketing Catchline Sponsorship Word of mouth Sales Promotion Past Experience

25% 15% 10% 10%

22% 18%

The major factor influencing their buying decision is word of mouth, followed by sales promotion and past experience but definitely not celebrity marketing, they said it works in case of kids.

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Is celebrity marketing really important for Publicity?

26%

52%

22%
Yes No cant say

52% of people believe that celebrity marketing is important; it attracts the individual towards the promos, while 22% of them feel it is just waste of money and 26% of them had no answer for this question.

Does excessive promotion influence your buying decision?

PROMOTION
60% 40% 20% 0% Yes No Cant say 32% 55% 27%

55% of people said it makes no difference if the company does excessive promotion or not, they say promotion is important but not necessary that over promotion will increase your sales. At the same time 32% of them feel that yes over promotion plays an important role in influencing their buying decision, while 27% of them said cant say, they were indifferent.

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Rate the following attributes for Pepsi on the scale of 1-4 (1 being the highest)

ATTRIBUTES
22%

34%

24% 20%
Humourous Informative Creative Interesting

When you see Pepsi ad you feel..

REACTION
80% 60% 40% 20% 0% Irritated Indifferent 58% 42%

As we can see above 58% of people feel irritated by every again and again watching the same ad while 42% of them are indifferent, it does not make any difference to them if the ad is coming more then once.

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If you are not exposed to Pepsi ad often you would.

If no ads then
Think somethings wrong with the company Surely switch over to another brand. Consider switching over to another brand Still remain loyal to the brand

36% 22% 16% 26% 10% 20% 30% 40%

0%

Finally when asked them that if the company stops advertising what will be their reaction 36% of them said that they would think that the company has got some financial problems or so. 22% of them said that they would surely switch over to another brand 16% of them said that they would think that the company is not advertising so there would be some problem with the product and will loose trust on the brand and will consider the option of switching on to another product, while only 26% of them said that they would remain loyal to the brand and continue buying the product.

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General Observations What makes you drink Pepsi?

Why Pepsi?
Have it with burger or Sandwich Taste just like that Impress your collegeus Quench your thirst

18% 18% 30% 6% 28%

0% 5% 10% 15% 20% 25% 30% 35%

This shows that 30% of people have Pepsi just like that, they dont wait for any occasion, while 28% people feel that they have Pepsi when they are thirsty.

What are the occasions when you consume the drink?

Occasions when drink is consumed

22% Cinema halls Parties Restaurants Railway Stations College Canteen 22%

30%

6% 20%

This shows that people maximum consume it when they are in cinema halls it is then followed by college canteen and parties.

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Which recent Pepsi ad do you recall?

AD RECALL

8% 34% 40% 18%

World cup lana hai Pepsi blue cricketer's with lion Honololo

Pepsi after associating itself with world cup, people recall almost all their world cup ads. 40% of them recall Pepsi blue ad, while 34% of them recall Shahrukh khan and Kareena Kapoor starrer world cup laana hai ad. Who is your favorite Pepsi star?

PEPSI STAR
50% 40% 30% 20% 10% 0%
Shahrukh Khan Amitabh Bachachan Sachin Tendulkar Kareena Kapoor

42% 30% 20% 6%

Shahrukh khan is the favorite Pepsi star of 42% followed by Sachin Tendulkar with 30% and then Amitabh Bachchan with 20% and Kareena Kapoor with 6%.

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You associate the brand Pepsi with.

BRAND ASSOCIATION
All of them filmstars Cricket Blue color 0% 12% 10% 20% 30% 40% 50% 60% 30% 10% 48%

48% of people associate the brand Pepsi with Filmstars, 30% of them associate it with cricketers, 12% with color Blue and 10% of them with all of them.

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Recommendations As per the findings we would recommend the company to: 1) Pepsi ads are interesting and humorous but not at all creative, what coke does shows in its ad is retaliated by Pepsi in its advertisements, this shows that they lack the creativity in their ad box. So we would recommend them to work on this aspect and come up with more of creative ads and give coke a chance to retaliate them. 2) The survey clearly shows that the consumer thinks that advertisements are an important aspect of marketing and they should be shown regularly for brand recall but on not in excess and so they agree to the fact that Pepsi over promotes itself and also say that nobody buys the product because of over promotion, but it is like they prefer and think that Pepsi is better than others so they tend to buy it. 3) Celebrity marketing which Pepsi thinks is their tool against other brands in now adopted by others too. As per the findings we can recommend the company to continue the celebrity marketing ads instead with a brilliant and creative idea to prove its creativity because from years they have been doing it and now if they change it may have negative outcome and celebrity endorsed ads play a major role in attracting children as they tend to buy the drink which is drunk by their favorite actor. 4) Soft drinks sales definitely depend upon its availability so the company should have a good distributing channel to make the drink available all over. 5) Over promotion is waste of money some people think so. But in case of Pepsi proper promotion should be done because as said out of sight is out of mind Thus Pepsi is recommended to continue with its marketing strategies but on small scale 6) Pepsi has benefited a lot because of its association with world cup, it is perceived as the drink of nation. So it is recommended to undertake more of these activities, which will bring them close to each an every individual citizen. 7) It has been evident from the survey that company does excessive promotion through Television, now with other medias becoming very popular like Radio,

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Cinema and Magazines the company is recommended to carry out its promotional activities through these medias too.

CONCLUSION:

As the convergence of consumer segments occurs, the dilemma facing advertisers is how to pitch themselves to consumers in an increasingly homogenous world. Pepsi here is benefited, as it is clear with its intensions and positioning. Excessive advertising seems to work at times but it is also necessary that the ad being advertised is tasteful and appeals to the public. Otherwise it simply annoys them. Also such excessive advertising of good ads only seems to contribute to its brand value and sale in short term. The objective of research i.e. to identify that does over promotion dilute brand image is not true in case of Pepsi. As it can be seen that Pepsi is the market leader with 52% of market share in India with over promotion along side. The analysis clearly shows that peoples decision to go for Pepsi does not necessarily depend upon the promotion done by them. Therefore the company should continue with its marketing strategies and keep on providing consumer a delightful treat every time they have Pepsi as their Dil maange more

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References: Internet: 1.www.pepsi.com 2.www.pepsico.in 3.www.google.com 4.www.economictimes.com Magazines: Outlook Business today Brand Equity.

Questionnaire:
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Q1) How often do you consume Pepsi? Once a day Once a week Twice a week Q2) What makes you drink Pepsi? Quench your thirst Impress your colleagues Have it with burger or sandwich. Q3) What are the occasions where you have Pepsi? Cinema halls Restaurants College canteen Parties Railway Stations Retail Shop. Just because the group is having Just like that Once a month More then one a day.

Q5) Does excessive buying promotion influence your buying decision? Yes No

Q4) In which media do you see the product ad? Television Magazines Cinema halls Q6) How frequently do you see the ad? Hourly Twice a day Once a day Once a week Radio Outdoor Media Newspapers

Q7) Rate the following attributes for Pepsi ads on the scale of 1-4 ( 1 being the highest) 22

Humorous Informative Q8) When u see a Pepsi ad you feel Irritated

Creative Interesting

Indifferent

Q9) What influences your decision to buy the drink? Celebrity marketing Sponsorship Past experience Taste Q10) Is celebrity marketing really important for publicity? Yes Q11) Who is your favorite Pepsi star? __________________________________________________________________ Q12) You associate the brand Pepsi with.. Blue colour Cricket Q13) Which recent Pepsi ad do you recall? __________________________________________________________________ Q14) According to you Pepsi is. Over Promoted Properly Promoted. Poorly Promoted Filmstars All of them No Catch-lines Word of mouth Sales Promotion

Q15) If you are not exposed to Pepsi ads often you would. 23

Still remain loyal to Pepsi Consider switching over to another brand Surely switch over to another brand Q16) If your preferred drink is not available then you switch over to another brand Yes No

Personal Details: 1) Name: 2) Age: 3) Sex: Male Female. Single Married.

4) Marital Status: 5) Occupation: 6) Address:

7) Telephone no (Res)_________________ (Mobile)______________ 8) E-mail id_______________

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