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PEPSI

CRM Analysis

Introduction
PepsiCo Inc. is an American multinational food and beverage corporation headquartered, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands.

Our Analysis
We studied the CRM processes of PepsiCo and have developed a conceptual model to depict the processes.

A survey was administered and data collected across 160 respondents.


Data analysis was done using statistical tool SPSS.

Based on data collected, CRM strategies formulated for better consumer experience.

were

Existing CRM Processes


Through the use of CRM System, Pepsi has been able to deliver top-line growth and superior customer service.

Pepsis current CRM application has allowed for conversion of former disparate sales systems into an integrated Internet application solution, a 360 degree view of the entire customer base, simplification of the resolution process, accurate and timely deliveries, and reduction of product inventory close time by one to two days.
Through the use of real-time customer information, telsel agents, or telemarketers, are able to have up-to-date information on any issues of needs of the customer through their account, allowing for a clear picture of their customers and their relationships with the company.

This also allows workers to uncover potential sales opportunities with their customers. The use of real-time information is also used to improve customer interaction and satisfaction through the use of help desks, customer service representatives, and allowing customers themselves access to real-time information. Pepsi also uses CRM applications to determine profitable customers, uncover potential sales opportunities, improve customer interactions and relations, and provide the enterprise with up-to-date customer information.

Integrated Application Solution in Pepsi


Analytical Operational Collaborative

Integrated Collaborative Solution

Improved Customer Interaction and Satisfaction

Uncover Potential Sales Opportunities

Provide Enterprise with up to date customer Information

Survey
Your age group ? * Below 15 15-25 25-40 40 and above Specify your gender * Male Female

Specify your profession *

Student
Service Self Employed How often do you drink aerated beverages ? * Everyday 2-3 times a week 2-3 times in two weeks 2-3 times in a month I don't like aerated beverages at all

Rate on a scale of 1 to 5 Pepsi products on the following factors * Taste Availability Price Value for Money If a rival brand is priced lower , would you still prefer Pepsi ? * Yes No Maybe

On a scale of 1 to 5 rate the following statements * I would recommend Pepsi to my acquaintances I would be willing to participate in Pepsi's product improvement program I consider myself a loyal customer of Pepsi Are you connected to Pepsi via any social networking platform ? *

Yes
No If Yes , please specific which platform Facebook Twitter

Rate the following promotional campaign platform according to your preference * TV Advertisements Online Campaigns Print Advertisements Word of Mouth What is your general impression of the Pepsi advertisements ? * Traditional Trendy Controversial Enjoyable Provocative

Which of the following Pepsi campaigns has caught your attention in the recent past ? * "Youngistan Meri Jaan" "Oh Yes Abhi ! "

"Change the Game"


"Youngistan ka Wow" None

Rate on a scale of 1-5 the Customer Grievance Redressal system *


On what occasions do you prefer Pepsi products ?* Festivals Picnic Parties

What is your preferred Pepsi bottle size ? *

300 ml (Bottle)
300 ml (Canned) 1 Litre

2 Litre
Would you be open to try other variants of Pepsi ?*

Yes
No What other Pepsi products do you use ? *

Lays
Gatorade Aquafina

Survey Analysis
Majority of respondents drink aerated beverages 2-3 times week.

Pepsi rates very high in respect of taste and availability.


The price and value for money factors rated as competitive. for Pepsi are

Majority of respondents would not prefer Pepsi if the prices are increased , implying Pepsi only has Financial bond with its majority customers.
Approximately 40% of respondents are loyal to Pepsi, 28% switchable and 32 % are competitor loyal. 89% of people are not connected to Pepsi via any online platform.

The most effective mediums of advertising are TV and word of mouth whereas people do not prefer online medium. People generally perceive Pepsi advertisements as enjoyable with Youngistan Meri Jaan and Oh Yes Abhi ! being the most popular. The Customer Grievance Redressal system is rated as effective by most customers. Tropicana, Lays and Aquafina are other most popular Pepsico brands. The most popular bottle sizes are 300ml (bottle) and 300ml (canned).

Age Group

Profession

How often do you drink aerated beverages ?

Taste

Availability

Price

Value For Money

If a rival brand is priced lower , would you still prefer Pepsi ?

Would you recommend Pepsi to your acquaintances?

Would be willing to participate in Pepsi's product improvement program?

Do you consider yourself a loyal customer of Pepsi?

Are you connected to Pepsi via any social networking platform ?

If Yes , please specify which platform?

TV Advertisements

Online Campaigns

Print Advertisements

Word of Mouth

What is your general impression of the Pepsi advertisements ?

Which of the following Pepsi campaigns has caught your attention in the recent past ?

What is your preferred Pepsi bottle size ?

On what occasions do you prefer Pepsi products ?

What other Pepsi products do you use ?

Would you be open to try other variants of Pepsi ?

Segmented Analysis
Age group 15-25 male

Majority of the people in this age group are heavy drinkers of aerated drinks and thus , this age group should be the prime target of the companys marketing strategies. Also , this age group can be involved in the companys surveying programs. Majority of people in this age group like taste of product and thus company does not need to take any action for this age group. Product seems to be easily available at common meeting places for These customers. So company need not take any steps about availability of product for this age group.

This age group dont seem to have a problem with the pricing of the product. Therefore, the company doesnt need to take any drastic step in changing the price of the product. The company seems to be at par with its competitors as far as the value for money factor is concerned . If the company wants to surge ahead of its competitors , it can try and reduce the 20.5 % people who think that the product is not value for money. The customers in this age group wouldnt prefer the product if the rivals brand product is priced lower than its price. This depict weak financial bonds between the customers and the company. Although the people in this group are heavy drinkers of aerated drinks , most of them don't consider themselves to be loyal toward Pepsi and can be considered as Switchable Customer i.e. they find Pepsi only slightly better than its competitors products.

Majority of the people are not connected to Pepsi via any online platform . the Television Advertisement, Print media and Word of Mouth medium seem to be most effective for this segment.

Most of the people in this group are aware of the Customer Grievance Redressal system and seem to like it.

Age group 15-25 Female

The people of this age group can be considered to be secondary drinkers of aerated drinks.

Majority of people in this age group like taste of product and thus company does not need to take any action for this age group.
According to data collected, product seems to be easily available at common meeting places for These customers. So company need not take any steps about availability of product for this age group.

According to the people in this age group dont seem to have a problem with the pricing of the product. Therefore, the company doesnt need to take any drastic step in changing the price of the product.

Majority people in this think that the product is value for money .

The customers in this age group wouldnt prefer the product if the rivals brand product is priced lower than its price. This depict weak financial bonds between the customers and the company. Most of them don't consider themselves to be loyal toward Pepsi and can be considered as Switchable Customer i.e. they find Pepsi only slightly better than its competitors products Television Advertisement seems to be the stand out option preferred by the customers in this age group as effective.

Age group 25-40 male

Majority people in this age group like the taste of the product .

According to this age group product is available at all major places they regularly visit and have good availability.
price is not a problem for this group. They consider price as what it should be. The majority people consider the product to be value for money. The customers in this age group wouldnt prefer the product if the rivals brand product is priced lower than its price. This depict weak financial bonds between the customers and the company.

Most of them don't consider themselves to be loyal toward Pepsi and can be considered as Switchable Customer i.e. they find Pepsi only slightly better than its competitors products This depicts the need for Pepsi to increase their social footprint to reach out customers via various social networking sites which is currently nonexisting . Pepsis promotional campaigns via Online Advertisements, Television Advertisements , Print Media and Word of Mouth are real successful for this age group Majority customers are well aware of the Customer Grievance Redressal System of Pepsi and seem to like it.

Age group 25-40 Female

The people of this group are secondary drinkers of aerated drinks.

The people in this group like the taste of the product .


The people in this group seem to find the product readily available to them. Majority people in this group seem to find pricing to be good. Most of the people in this group consider Pepsi as a value for money product. The customers in this age group wouldnt prefer the product if the rivals brand product is priced lower than its price. This depict weak financial bonds between the customers and the company.

Most of them don't consider themselves to be loyal toward Pepsi and can be considered as Switchable Customer i.e. they find Pepsi only slightly better than its competitors products. They need not be given special attention and should be given lesser share of management resources. People in this group are not connected to Pepsi via any social networking platform. Television Advertisement and Word of Mouth are the most effective mediums for promotional campaigns according to the people in this group .

Customers in this group are well aware of the Customer Grievance Redressal system and majority seem to like it.

Age group above 40 female

These people are medium to light drinkers of aerated drinks and therefore , not the primary target of the companys marketing strategies. These people consider taste of product as good . These age group finds product as widely available at all major places they regularly visit. These customers expects price to be lower than current values and currently considers product as overpriced. despite of being overpriced they thinks that it is still value for money. These people are loyal to Pepsi, and like Pepsi not due to its price but due to its taste.

These people considers themselves as loyal to product and would recommend it to their friends but seems to be somewhat busy to react for surveys and other interaction programs. according to data Pepsi needs to increase its social footprint to reach out more customers which will also increase its customer share in this segment. Television advertisements, word of mouth and Print media are the most effective according to this group of people.

Age above 40 male

Data insufficient for this segment

Age group below 15 male

The customers in this age group are medium to heavy drinkers of aerated drinks.

The people of this group find Pepsi readily available to them.


People of the group find that the product is value for money . The opinion is divided regarding pricing of product. Most of the people are not connected to Pepsi via any social networking platform.

Television Advertisement , Online Advertisement and Word and Mouth are the most effective promotional platform according to majority of the people in this group .

People in this group are aware of the Customer Grievance Redressal system of Pepsi and seem to like it.

Suggested Future Strategies


People in the age group 15-25 form the majority of consumers of Pepsi. Thus they should be considered as the primary target market. Campaigns must be planned by keeping their needs in mind. The majority of customers have Financial bonds with Pepsi and thus, Pepsi needs to maintain financial incentives for its customers. Customer retentions initiatives need to be implemented with financial bonuses to its customers to prevent switching to customer brands. For example Pepsi can offer discounts to customers in exchange for used Pepsi bottles thus ensuring the customers loyalty to the company. Majority of the loyal customers are willing to participate in Pepsis product improvement initiatives thus an easily accessible medium needs to be provided so that people can voice their opinions.

Pepsi has negligible reach towards consumers in the online department and needs to address this issue and possibly invest in other upcoming modes of communication such as mobile apps. Pepsi must invest in creating social and customization bonds with its customers. For example Pepsi can create an online/mobile application where the user can voice their views, suggest new flavors , play games with other users , scan QR codes to receive updates and offers , share new recipes or Pepsi can give promotion on its wrapper to promote its social media pages thus creating a social connection of Pepsi with its customers. Television is considered the most effective medium of advertisement/ campaigning thus most of the resources need to be utilized for this medium. Recent campaigns of Pepsi have been targeted towards the young generations which is the primary target of PepsiCo but it needs to address other segments as these are the segments which maintain high level of loyalty towards a company.

THANK YOU !