Marketing Plan For Suntory Pepsico.pdf

HANOI UNIVERSITY

FACULTY OF MANAGEMENT AND TOURISM

MARKETING PLAN FOR SUNTORY PEPSICOGroup 5 - Tutorial 1

Lecturer: Lê Minh HằngTutor: Vũ Nguyệt MinhNguyễn Lê Hằng - 1804040044

Nguyễn Thị Thảo Nguyên – 2004010075Nguyễn Lâm Phương – 2004010085Nguyễn Thị Thanh Hải – 2104010029

Ha Noi, November 15, 2022

Summary Executive

In recent years, along with the development of science andtechnology, the demand for goods is increasing Both domestic andforeign brands compete fiercely for market share Besides thosechallenges, PepsiCo still holds a strong position for itself in themarket Due to its enormous distribution network, lengthy history,enduring brand name, and reputation for quality, PepsiCo isregarded as one of the leading food and beverage brands in theworld In addition, it is impossible not to mention Marketing - aleading factor contributing to the success of PepsiCo Marketingplays a crucial role in boosting sales and growing businesses,making it easier for customers to connect with the products Thisresearch will help people better understand about Pepsi brand andtheir latest campaigns to attract customers in 2022 An overview,internal environment, and the micro and macro environments are allincluded in this investigation Moreover, the study also shows thecurrent marketing strategy, action program, and SWOT analysis Asa result, this report points out the problems that PepsiCo is facingand makes some recommendations on marketing goals, marketingstrategies and action plans.

1 Introduction:

PepsiCo, Inc., American food and beverage company which is one of the largestorganizations in the world, with products sold in over 200 countries and 185.000employees PepsiCo revenue for the twelve months ending September 30, 2022 was$83.644B, a 9.08% increase year-over-year.

In 1886, Caleb D Bradham (1866-1934), a pharmacist in New Bern, North Carolina,invented the first Pepsi-Cola called "Brad's Drink" By 1898, Bradham gave the namePepsi-Cola to his cola-flavored carbonated beverage and Pepsi Corporation wasestablished The organization's headquarter is located in Purchase, New York, USA Pepsithrived for the next two decades In 1938, Walter Mack, the new president of Pepsi-Cola,introduced a new ad for a 12-ounce Pepsi bottle that featured the rhyming song "Nickel,Nickel." This song quickly gained popularity and was recorded in 55 different languages.During the 1950s, massive advertising campaigns and sales promotions enhanced Pepsi-Cola's net earnings 11-fold, making it the primary competitor of Coca-Cola Thecompany was renamed PepsiCo when Frito-Lay, Inc and the Pepsi-Cola Company

merged in 1965 By 1976, Pepsi-Cola had become the only brand of carbonated softdrink with the highest sales in US supermarkets, and it has remained so to this day Pepsiwas the leading beverage brand purchased by many people in the early 1980s

Besides the billion-dollar Pepsi brand, this corporation owns many other well-known softdrink brands, including Mirinda, 7UP, Mountain Dew, and Aquafina mineral water.PepsiCo's Vision Statement: “Be the global leader in convenient foods and beverages bywinning with a purpose.”

PepsiCo’s Mission Statement: “Creating more smiles with every sip and everybite.”PepsiCo’s Core Values:

“PepsiCo is committed to delivering sustained growth through empowered people actingresponsibly and building trust.”

2 Current Marketing Situation2.1 Internal environment

2.1.1 Current business performance

For the fiscal year 2022, the company now anticipates organic revenue growth of 12percent (up from 10 percent) and core constant currency EPS growth of 10 percent(previously 8 percent).

In line with its earlier forecast for 2022, the company continues to anticipate:• A core annual effective tax rate of 20%;

• A total cash return to shareholders of about $7.7 billion, which is made up of $6.2billion in dividends and $1.5 billion in share repurchases, is the core annual effective taxrate.

Similarly, based on current market consensus rates, the Company now anticipates areported net revenue and core EPS growth headwind of about 2.5 percentage points (upfrom 2 percentage points).

Based on this presumption and the above estimate, 2022 core EPS of about $6.73(previously: $6.63), an increase of roughly 7.5 percent (formerly 6 percent) over 2021core EPS of $6.26.

• Campaign in 2022

On August 18, 2022, Pepsico announced the #BetterWithPepsi to Gridiron football(known as North American football or, in North America, simply football, is a family offootball team sports played in the United States and Canada) campaign with Pepsi ZeroSugar available at soccer-themed venues The new appearance of this campaignimmediately received a large reception from the masses in general and especially footballfans in particular Launched in PURCHASE, N.Y, Pepsi makes sure fans everywhereknow that watching football they can enjoy their favorite game with a refreshing ice-coldsugar-free Pepsi with #BetterWithPepsi.

Pepsi considers the weekly home soccer experience a must for fans across the countrywho do not even want to leave their seats for a moment because they don't want to missthe game with perfect shots In this campaign, Pepsi launches a giant Pepsi GametimeFridge TV with an advanced 55-inch 4K LED display and a 16-can beverage refrigeratorto store ice-cold Pepsi products including unsweetened Pepsi For those watching football

who just want to be able to quench their thirst with a cool can of Pepsi in the middle ofthe game but still do not miss a moment in the game, this is their solution.“Unapologetically enjoy a full day of football watching every weekend without having tomiss any of the action,” Kaplan- the chief marketing officer of PepsiCo said in astatement The fridge was designed in partnership with Vayner Media, a New York-basedmedia agency With the touch of a button, the TV screen will gently slide from center toright to reveal ice-cold Pepsi cans in a modern wall-mounted refrigerator under the smartTV A dream product of sports fans in general and football in particular For those curiousabout the Pepsi Gametime Fridge TV, the brand will award the fridge to one luckywatcher in a quality sweepstakes Players will share articles about the football season andtag Pepsico The #GametimeFridgeTV and #PepsiSweepstakes hashtags are widelydisseminated on the twitter and Instagram platforms.

2.1.2 4Ps a Product

Products made by Pepsi-Cola were created in the backdrop of an industrial civilizationwhere a lot of people consume fatty meat and quick food, making Pepsi an excellentchoice Good refreshment, good digestion, anti-hunger, and against the sensation of toomuch meat in the mouth; yet, it is not as addictive as alcohol Convenient product; liftsthe lid to enjoy instantly.

In order to increase the market for diet beverages, Pepsico also produces a Pepsi foroverweight persons Pepsi has introduced diet Pepsi products with less sugar.

Glass bottles, plastic bottles, and cans with varied volumes are all featured on Pepsi'spackaging Complete details on the MFG-EXP, the ingredients, and the location of

manufacture are included on the Pepsi packaging Customers frequently consider theseaspects before purchasing goods.

The world's first plastic bottle created entirely from renewable energy and leftovers fromfood processing was developed by Pepsi and released recently Through a variety ofconversion processes, Green-Pet bottles are made from biological materials like maizehusks, grass, etc.

Ingredients of the product from water, flavor, sugar, CO2, are prepared with moderntechnological processes Moreover, the standardization of production procedures, thequality of the final product, and regional distribution networks are mostly carefullyplanned to guarantee that drinking a bottle or can of Pepsi at home also increases people'semotions Feeling cool, energizing, and delightful like drinking just after purchasing.To manufacture Green-Pet bottles, Pepsi also utilizes leftovers from the food productionprocess, such as potato peels, orange peels, and oat husks The function and design of thiskind of bottle are identical to those produced from petroleum.

b Price

Pepsi's pricing strategy to break into the industry: Rather than using a low price strategyto filter the supply chain, Pepsi decided to employ a relatively low price strategy topenetrate the market for new goods in an attempt to capture a significant client base ahuge consumer base and a huge market share.

Discount pricing: Pepsi will change its pricing to reward customers who purchase inadvance, buy in large quantities, and pay cash A cash discount is a discount forcustomers who buy and pay immediately Quantity discounts are discounts for customerswho buy supplies.

According to this pricing strategy, Pepsi goods and products are priced differently basedon their individual prices.

Whilst also implementing this pricing strategy, the business expects to close the gapbetween regular prices and the discounted holiday prices PepsiCo believes that by doingthis, people will purchase more soft drinks on a daily basis, not just during the holidays.c Place (Distribution)

PepsiCo distributes its products to customers through a global network In thiscomponent of the marketing mix, locations for distribution and sales are taken intoaccount PepsiCo’s places for distribution are as follows:

Online merchandisers·

Businesses now use distribution middlemen to deliver goods to final customers in themarket This aids in cost savings for enterprises but has little impact on scaling.Through these resellers, PepsiCo also connects with consumers Despite being a major inthe beverage sector with profitable business potential, PepsiCo instead depends on amassive distribution network to reach consumers with its products.

d Promotion

PepsiCo advertises its goods to engage in the intended audience The company'smarketing communications plans and methods are covered in this component of themarketing mix The PepsiCo promotional mix includes the following strategies, listed inorder of importance:

AdvertisingSale promotionDirect marketingPublic relations

PepsiCo uses advertising as its main marketing communication strategy For instance, thebusiness is well-known for using famous people as brand ambassadors to advertise itsproducts in print, radio, television, and online.

2.2 Micro Environment:

2.2.1 Customer Analysis

Franchise bottlers, independent distributors, and retailers are some of the clients Pepsicogives its bottlers exclusive licenses to market and create specialized beverage goodsbranded with our trademarks in a particular region These agreements detail the paymentsthat our bottlers must make for Aquafina royalties, concentrate, and full goods, as well asthe production procedures necessary to ensure the quality of the final product

Sales to Wal-Mart Stores, Inc represent approximately 10% of our global net revenue.( CSI 2022)

PepsiCo segmentation, targeting and positioning

(https://research-methodology.net/pepsico-segmentation-targeting-and-positioning-2/)2.2.2 Supplier

Suppliers play a significant role in the micro environment because they supply theingredients and packaging for Pepsi To ensure that their suppliers are abiding by theappropriate rules and laws in the nation in which they are conducting business andselling, PepsiCo holds them to the same standards of honesty To ensure the highest levelof quality throughout their distribution chain, they also offer training.

2.2.3 Competitors

Markets where enterprises compete fiercely exist On the basis of cost, value, selection,and efficient distribution, PepsiCo competes with national, international, and private labelproducers Effectively promoting current items and introducing new ones are the mainways to succeed in this cutthroat environment Companies think that the ability tocompete successfully is a result of the power of brands, innovation, and marketing, aswell as the excellence of our goods and the adaptability of our distribution network.Frito-Lay competes with local, regional, national, and international snack companies onmatters of pricing, quality, variety, and distribution despite owning a strong leadershipmarket position in the global snack business PepsiCo is concentrating on The Coca-ColaCompany, who is our main rival in the beverage sector (CSI market 2022)

2.3 Macro Environment:

2.3.1 Technological:

Due to technological advancements, Pepsi and many other companies in the sameindustry have innovated and applied technology to their manufacturing processes, andPepsi is no exception They have a production chain that includes many high-techmachines that ensure the quality of each unit of product It keeps humans from makingmistakes Pepsi can produce the number of Pepsi bottles to satisfy customer demand by machines that can vastly increase the number of products that can be manufactured at anygiven time Customers of Pepsi can set a high standard for Pepsi products.

In order to pursue a digital world, Pepsi has introduced an e-commerce platform forPepsi's consumers called Pep's Place, which is an online basket where customers canorder their favorite Pepsi drinks and some food that they have added This approach iseffective in attracting consumer demand, maintaining brand loyalty and improving profitduring the pandemic This has demonstrated that Pepsi doesn't want to lose competitiveadvantages to competitors; thus, focusing on digital marketing and operations is a wisegoal.

2.3.2 Cultural Force:

One of the elements that Pepsi has handled in almost every aspect to ensure that everyemployee has a suitable and fair workplace is employment culture They provide a

multicultural workplace and encourage a healthy work-life -balance to let theiremployees have more time for personal pursuits or time with their families Working in ainspirative environment such as PepsiCo, employees will endeavor to provide a highlevel of labor productivity.

2.3.3 Demographic:

The population of the world is rising quickly The world population has surpassed 7.9billion people as of the most recent United Nations data The population of the globe hassignificantly expanded since the second part of the 20th century, rising by an average of80 million people annually and steadily approaching 8 billion people PepsiCo isprobably expected to grow because population explosion causes quick increases indemand PepsiCo is probably going to expand because rapid population growth causesquick increases in demand Products that are both nourishing and practical are essential,particularly in today’s fast-paced life For PepsiCo, this is an opportunity.

2.3.4 Political:

In the process of complete globalization, many nations have adopted the policy ofopening their economies, and as a result, the legal system is continually evolving Forbusinesses in a dispersed industry, "franchising" is viewed as a very effective businessmodel Companies who are interested in participating in this form must thoroughlyresearch the country's franchise laws, including those pertaining to commercial law andlicenses to transfer trademarks.

With more than 900 operational firms and bottling franchises worldwide, PepsiCo has thelargest distribution network for its beverage goods The company expands its distributionnetwork in order to boost productivity and better serve beverage merchants Additionally,the expansion of the distribution network gives companies a competitive edge inhastening the launch of new items To improve operational efficiency, PepsiCo hasdeveloped long-term relationships with suppliers, put into operation new productionplants and warehouse techniques to save costs (approximately $25,000) In the world,PepsiCo is also divided into 6 regions to enhance and develop more opportunities inthose regions.

3 SWOT Analysis: