final project course brand management topic pepsi

CUSTOMER BASE BRAND EQUITY OF PEPSI...5BRAND DIFFERENTIATION IN PEPSI...5BRAND KNOWLEDGE OF PEPSI...6Brand awareness...6Brand Loyalty...7Brand positioning of Pepsi...7Pepsi Target Market

Final Project Course Brand Management

Topic Pepsi

Group members

 Zainab arif M21MBA057

 Amna Ali M21MBA062

 Maham Riaz M21MBA019

Submitted to Dr Samar Rahi

Hailey College of Banking & Finance, University of Punjab Lahore

FIVE PRODUCT LEVEL OF PEPSI 4

Core Benefit 4

Basic Product 4

Expected product 4

Augmented product 4

Potential product 5

CUSTOMER BASE BRAND EQUITY OF PEPSI 5

BRAND DIFFERENTIATION IN PEPSI 5

Differentiation 6

BRAND KNOWLEDGE OF PEPSI 6

Brand awareness 6

Brand Loyalty 7

Brand positioning of Pepsi 7

Pepsi Target Market Segmentation 7

Pepsi Demographic Segmentation 7

Pepsi Geographic Segmentation 8

Pepsi Behavioral Segmentation 8

Pepsi Psychographic Segmentation 8

Pepsi’s competitors 8

FRAME OF REFERENCE: 9

Choosing the Ideal Frame of Reference 9

Point Of Parity 10

Point of differentiation 10

Brand Resonance 10

Salience (identity-deep brand awareness) 11

Brand imagery (meaning-point of parity and point of difference) 12

Judgment (customer responses-positive accessible reaction) 12

Brand Feelings (customer responses-positive accessible reaction) 13

Personality traits 14

1 Sincerity 14

2 Excitement 14

3 Competence 14

4 Sophistication 14

5 Ruggedness 14

FIVE PRODUCT LEVEL OF PEPSI

There are five product levels: Core benefit, Basic product, expected product, Augmented product, Potential product

Core Benefit

It is the service or benefit the product is offering In a soft drink, a consumer is buying the product to quench the thirst while dining at a restaurant, hotel or on a hot day

Basic Product

The core benefit triggers the basic product For a soft drink, the basic requirements are soda fizz & sweetened

Expected product

These are attributes expected by the consumer from the product In case of Pepsi, it must be served chilled to get the real taste of the drink

Augmented product

It is a differentiated product that is made to exceed a consumer's expectations Pepsi

offers Diet Pepsi which is a non-sweetened soft drink for the ones who are health conscious but are not ready to give up their loyalty for Pepsi while choosing a drink

Potential product

This is where the company looks for innovate ways to satiate the consumer It comes

for a new to the category/ sub-category and also hence forms a new life cycle In augmented product, when the company does a differentiation to the product, its oncoming in the market

is a potential threat to competitors Diet Pepsi provides a sugar free carbonated drink which is

a different version of the Pepsi, catering to those who feel like having Pepsi but fear about the calories

CUSTOMER BASE BRAND EQUITY OF PEPSI

According to the recent statistics from Statista, Coca Cola was fifth in the list of the world's most valuable brands with a brand value of 66.34 billion US dollars, while Pepsi had the twenty-first position in the same list with a brand value of 20.8 billion US dollar in the year 2018.PepsiCo announced it has launched its first-ever cash-back loyalty program, Pep Coin by PepsiCo

BRAND DIFFERENTIATION IN PEPSI

Differentiation strategy allows the PepsiCo to attract more and more consumers towards the different features of the products One of the ways in which PepsiCo is differentiating its products is by its packaging, which attracts the consumers on the basis of value that it gives to the consumers

Differentiation and competitive advantage are achieved by the company with the adoption of cost leadership and differentiation strategy Distribution channels of the multinational are also strong, which is also providing strategic advantage to the company over its competitors Pepsi Co focuses on reducing the commoditization of its products by providing consumers with the products as per their requirements Therefore, Pepsi Co is providing wide range of portfolio to its consumers in the market

Differentiation - Differentiation allows the business organization to differentiate their products from the competitors in the market In order to achieve differentiation PepsiCo utilizes broad differentiation as the strategy in order to achieve competitive advantage over the competitors in the market Differentiation strategy allows the PepsiCo to attract more and more consumers towards the different features of the products One of the ways in which PepsiCo is differentiating its products is by its packaging, which attracts the consumers on the basis of value that it gives to the consumers

BRAND KNOWLEDGE OF PEPSI

Brand awareness is top of mind for PepsiCo’s senior director of media strategy and investment Katie Haniffy And PepsiCo is focused on adjusting its brand awareness campaigns in response to shifting consumer behavior, as well as pivoting to keep up with the latest evolutions in ad tech

Self-service DSPs play a major role in PepsiCo’s open-web programmatic strategy for social media and other platforms For years, the company has relied on its agency partner OMD to manage campaigns through self-service ad platforms And PepsiCo’s YouTube advertising is largely conducted through Google’s Display & Video 360 campaign management platform

The Pepsi Brand Identity Re-Design challenges what it means to bring about a new look to an established brand while retaining the brand’s legacy and essence at the same time The new brand identity is based on the idea that ‘less is more’ By removing unnecessary design elements and reducing everything to a simple symbol, the new brand identity manages

to achieve more with less

Brand Loyalty, At the individual product category level, 90.5 percent of regular Coke and 88.9 percent of regular Pepsi drinkers remained loyal, and the vast majority of consumers of low-calorie Coke (92.5 percent) and Pepsi (87 percent) also stuck to their preferred brand Loyalty rates were even higher at the modified brand level

Brand Image; In the United States, Pepsi is made with carbonated water, high

fructose corn syrup, caramel color, sugar, phosphoric acid, caffeine, citric acid, and natural flavors

Brand positioning of Pepsi

As a brand, Pepsi has positioned itself as one that embodies young energy, and this can be seen throughout their marketing and advertising campaigns Pepsi's customers are mainly aged between 13 and 35 years old from lower middle class to upper class with a busy and modern lifestyle

Pepsi Target Market Segmentation

With a market analysis that considers Pepsi demographic segmentation, as well as its geographic, behavioral and psychographic segmentation data, businesses can get to know the Pepsi target audience

Pepsi Demographic Segmentation

Pepsi demographics covers the age range of 15 to 45, both male and female The broad age group of Pepsi consumer demographics tends to exclude young children and elderly individuals, who are less likely to enjoy the caffeine-laden beverage However, it includes singles, new marrieds without children, and couples with younger children and teens

The brand focuses on similar demographics for its more diet-conscious Pepsi Max target market, who are interested in a tasty sugar-free cola option

Pepsi Geographic Segmentation

Pepsi is sold in over 200 countries around the world, appealing to consumers in urban and rural settings In 2022, the company withdrew from the Russian market in response to the invasion of Ukraine

Pepsi Behavioral Segmentation

Pepsi consumer demographics comprise average to high income earners, including students, employees and professionals The target audience are regular and loyal users of the product who choose it for its refreshment value and to enjoy the good taste, as well as Pepsi consumption being part of their lifestyle habits

Pepsi Psychographic Segmentation

The Pepsi target audience includes members of the working, middle and upper classes, with easygoing, determined and ambitious personalities Pepsi continues to market to

a solid and growing base of consumers who want sugar free cola options

Pepsi’s competitors

Although it is well known that Coca-Cola is Pepsi’s top competitor by far, the list of PepsiCo competitors also includes Dr Pepper Snapple and Red Bull In fact, in 2021, Red Bull was positioned as the second most valuable beverage brand worldwide

Note that both Coca-Cola and Dr Pepper Snapple produce a range of soft drinks, making Pepsi’s position in the market even tougher Coca-Cola, for example, also markets Sprite, Fanta and a range of energy drinks and fruit drinks

FRAME OF REFERENCE:

A brand’s frame of reference is the context in which consumers view it The first thing consumers will try to figure out is the category the brand belongs to In many instances, brand-category associations are straightforward: Pepsi belongs to the carbonated soft drink category Lululemon is a brand of yoga wear Changing the frame of reference for these established brands leads to brand stretching, which rarely produces the desired outcomes However, that doesn’t stop Management from trying: Pepsi recently announced Pepsi 1, the company’s first Android-based smart phone that will retail in China for approximately $205 Choosing the Ideal Frame of Reference

The ideal time to decide on a brand’s frame of reference is at the time of launch The more well-known the brand becomes, the more difficult its context Here are some things that should help you make the right decision:

Choose a competitive frame of reference that reduces the number of brands competing for attention You can achieve this by narrowing your focus so you don’t compete head-to-head with established players for consumer’s attention

Do not choose technology as a frame of reference Sooner or later technology becomes

obsolete The photography industry is the perfect example What do most people associate Kodak with? Film photography The brand never managed to escape this strong association when it was obvious that digital photography would replace film, although Kodak launched the first digital camera in 1975

The frame of reference should support your brand positioning Your brand’s frame of

reference is the foundation of its positioning It will determine the points of parity the brand has to meet in order to be considered a legitimate player, and highlight opportunities to differentiate

Point Of Parity

Point of differentiation

The point of difference is the image that they reflect Pepsi is trendier and cooler with

an image of young people and celebrities while coca cola is an emotional brand This is due

to the advertising campaigns they both spread

Brand Resonance

Brand resonance is basically creating intense kind of feeling among customers and Pepsi brand resonance is explained through a pyramid

Through this pyramid we get to know that the brand identity comes from salience, meaningfulness comes from performance and imagery, customer responses come from judgment and feeling and relationship comes from resonance

Salience (identity-deep brand awareness)

Pepsi is one of the highest salience brands because of its breath and depth of brand awareness the customers of Pepsi can identify the brand through the product category model Brand salience is an important first step in building brand equity, but is usually not

sufficient Pepsi brand identity is through fun, community, fresh drink and main soda

Performance (meaning-point of parity and point of difference)

Brand performance transcends the product’s ingredients and features to include

4.relationship

3.responses

2.meaning

1.Identiy Stages of brand development

 Primary ingredient and supplementary features:

The primary ingredients are Carbonated Water, High Fructose Corn Syrup, Caramel

Color, Sugar, Phosphoric Acid, Caffeine, Citric Acid, Natural Flavor Pepsi is sweeter than Coke, so right away it had a big advantage in a sip test Pepsi is also characterized by

a citrusy flavor burst, unlike the more raisin-vanilla taste of Coke

 Product reliability, durability, and serviceability

Reliability measures the consistency of performance over time and from purchase to

purchase and Pepsi is much reliable because of their performance over time

 Service effectiveness, efficiency, and empathy

Service effectiveness measures how well the brand satisfies customers’ service

requirements Service efficiency describes the speed and responsiveness of

service Finally, service empathy is the extent to which service providers are seen as trusting, caring, and having the customer’s interests in mind

 Style and design.

Pepsi is an iconic American soda brand, and their logo is just as recognizable as the sweet bubbles of their celebrated drink

Interestingly, the Pepsi logo has gone through a number of redesigns, with a complete shift in concept and feeling as the brand grew over time Yet even non-soda drinkers (and Coke-lovers!) can instantly identify Pepsi’s logo and know what it represents

 Price

Most of PepsiCo's products are priced based on the market-oriented pricing strategy The company's objective in using this strategy is to ensure that its prices are

competitive, based on other firms' prices and prevailing market conditions

Brand imagery (meaning-point of parity and point of difference)

One set of brand imagery associations is about the type of person or organization who uses the brand This imagery may result in customers’ mental image of actual users or more aspirational, idealized users Pepsi use the images and colors for there branding such as blue color, joker and it is used to attract the teens as well as adults

Judgment (customer responses-positive accessible reaction)

Brand judgments are customers’ personal opinions about and evaluations of the brand, which consumers form by putting together all the different brand performance and imagery association

Brand Quality

PepsiCo has strong global quality and food safety standards We use qualified ingredients, approved suppliers and follow all applicable regulations issued by regulatory authorities Our products are traceable, which enables us to quickly investigate and address any potential concerns in the marketplace

Brand Credibility

Customers may also form judgments about the company or organization

behind the brand Brand credibility describes the extent to which customers see the brand as credible in terms of three dimensions: perceived expertise, trustworthiness, and likability.

Pepsi is seen as

(1) competent, innovative, and a market leader (brand expertise)

(2) dependable and keeping customer interests in mind (brand trustworthiness)

(3) fun, interesting, and worth spending time with (brand likability)

Brand Consideration

Pepsi is the famous brand, known by almost every individual around the world Its red, white and blue logo has caught many eyes and attention and it remains in the consideration set of customers

Brand Superiority

Brand equity is a major strength of Pepsi It has a strong image and large customer base Brand equity does not just help it with marketing its brand and product portfolio but also helps retain customers It has strengthened its brand equity by investing in quality and technological innovation

Brand Feelings (customer responses-positive accessible reaction)