PRESENTATION PEPSI

BUSSINES III

PRESENTED BY:

DAVID FELIPE LÓPEZ RIAÑO

JHIRET NATALIA SAZA CÁRDENAS

PRESENTED TO:

MARIO DUQUE

UNIVERSITY MAJOR COLLEGE OF CUNDINAMARCA

MANAGEMENT ASSISTANCE IV SEMESTER

BOGOTÁ 

2020-2
 1. INTRODUCTION

● Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, United

States, in 1898 by Caleb Bradham, who made it at his home where the drink was sold.

It was later labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts

used in the recipe. Bradham sought to create a fountain drink that was delicious and

would aid in digestion and boost energy.

● PepsiCo incorporated in 1965 with the merger of the Pepsi-Cola Company and Frito-

Lay, Inc.

● PepsiCo, is a Fortune 500, American global corporation headquartered in Harrison,

New York, with interests in the manufacturing, marketing and distribution of grain-

based snack foods, beverages, and other products.

2. PRODUCT STRATEGY

There are five product levels : Core benefit, Basic product, Expected product, Augmented

product, Potential product

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.

3. CUSTOMER

The core benefit lies with the customer. It is a realization that the customer has. When he/she

is thirsty while having a meal at Dominos or McDonalds, only then a product like Pepsi

comes into play to satisfy the requirement and quench the thirst. Also, a customer has

minimum expectations from a product. In this case, it expects the drink to have fizz and be

served cold. This is what is an expected product.

The basic product lies with the company, which, in this case is a carbonated soft drink that is

sweet in taste.

In the growth stage of a product's life cycle, the company looks of ways to innovate by

coming out with new products to satisfy customers. In the case of Pepsi, Mountain Dew was

a new to the category product launched and it was a flavored soft drink. This is a potential

product introduced in the market, with a new offering to the customer.

5. COMPETITOR

Basic , augmented and potential product all three get elements from a competitor's point of

view. In a basic product, a competitor like Coca-Cola is also serving the same requirements

that Pepsi is. It is only slightly less sweet in taste.

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.

Internal characteristics

● Formula: Soda is made up of: carbonated water, high fructose corn syrup, caramel

color, phosphoric acid, caffeine, citric acid, natural flavors, sugar, vanilla, oils, pepsin,

and kola nuts.

External characteristics.

● Design: Pepsi’s current “Live For Now” slogan is a prime example of how Pepsi

positions the brand. The slogan is a clever strategy to anchor the perception that

drinking Pepsi embraces a robust, fulfilled, and adventurous lifestyle. At the same

time, positioning the brand in this way causes consumers to see Pepsi as a preference
 product within consumer product classifications. Here, the consumer would say ‘I

want Pepsi instead of Coke,’ so the brand choice would be evident.

● Packaging: Pepsi launched a new bottle made entirely with vegetable materials. The

new "green" bottle from the manufacturer Pepsi, Gatorade and Tropicana, among

other beverages, is 100% recyclable and exceeds the technology currently used by

other beverage manufacturers, the New York firm said in a statement.

They are new containers that are made with biodegradable raw materials such as pine

bark, corn husks and switchgrass and in the future the company wants to expand these

materials to orange peels, potatoes, oats and other residues from its food businesses.

Psychological attributes

● Brand identity: Pepsi Brands are divided into three sections: Pepsi Max (low-

calorie), Diet Pepsi, and Pepsi Next (60% less sugar) (Pepsi, 2014). In this way, Pepsi

soda takes the segmentation strategy of one product and multiple market segments

(See Exhibit D). However, it’s important to note that the parent company, PepsiCo

uses the multiple products and multiple markets strategy because PepsiCo owns 22

brands that sell multiple products: snacks, juices, water, and oatmeal.

Pepsi uses psychographic segmentation when they appeal to the pop culture aspect of

society. This will be discussed in more detail in the communications mix section. But

nonetheless, appealing to pop culture relates to the following segmentation variables:

variable needs since Pepsi Max is for consumers who consider health a need.

WEBGRAPHY

● https://www.pepsico.com/brands/product-information