Marketing Planning Process for New Soft Drink 'Health with Taste'

This report discusses the marketing planning process for PepsiCo's new soft drink 'Health with Taste', including PESTLE analysis, segmentation process, and positioning strategies. It covers the components of marketing planning process, marketing orientation, and the importance of the 7P model in effective planning of marketing. The report also discusses the segmentation process in soft drinks markets for business to business (B2B) and business to consumer (B2C) markets, the methods of targeting the (B2C) markets, and the characteristics which help in targeting the new products. Finally, the report explains the meaning of positioning and the way of positioning the new soft drink in targeting markets.

PRINCIPLES OF
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
SECTION 1......................................................................................................................................3
Components of marketing planning process and outline of marketing orientation and its
application in business............................................................................................................3
PESTLE analysis for new products and their micro environment factors related to competitor
activity....................................................................................................................................5
Importance of 7P model in effective planing of marketing....................................................6
SECTION 2......................................................................................................................................6
Segmentation process in soft drinks markets for business to business (B2B) and business to
consumer (B2C) markets.......................................................................................................6
The methods of targeting the (B2C) markets and the characteristics which help in targeting the
new products...........................................................................................................................8
Meaning of positioning and way of positioning the new soft drink in targeting markets......8
SECTION 3 .....................................................................................................................................9
Using table format for describing the 7P marketing mix regarding the new soft drink.........9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
The principle of marketing is the process of creating, communicating, delivering and
exchanging of products and services. The principles of marketing is very essential in market to
develop the business by its various methods. The creating in marketing includes the collaboration
with customers and employers. The communicating means to learn from customers and
delivering means offering to the consumers in optimising value and exchanging means trade
value. The principles of marketing is based on 4P. These 4P are product, promotion, place and
price. These 4P are key of marketing mix which enhance the value of products in markets
(Rowson, 2019). The given report is based on the marketing planning process of new soft drink
and their marketing orientation and their business strategies to develop the new soft drink in
market. The company PepsiCo has started in 1898 and the headquarter of PepsiCo company is in
New york. The PepsiCo company has decided to launch the soft drink which is healthy because
of more attraction of peoples on healthy drinks. The company has launched the new soft drink
'Health with taste' to markets. The 'Health with taste' is made up of 100% fruit juice, honey and
very low amount of sugar (Dolnicar, 2022). The given report is based on planning process which
PepsiCo company should use in whole process of launching and marketing of new soft drink'
Health with taste'. The given report has taken into account of PESTLE analysis and segmentation
process with business to business and business to customer.
MAIN BODY
SECTION 1
Components of marketing planning process and outline of marketing orientation and its
application in business
Marketing planning process is define as the systematic way for planning and coordinating
all objectives and needs of market (Alsem, 2019). It includes the whole process of developing,
executing and implementing the strategies of markets which help in development of business.
The main aim of planning in market is to identify the customer demand for gaining more profits.
Components helping in marketing planning process
 Marketing research: It is the process to determine the benefits of new products through
research process. The marketing research is very beneficial for the improvement of
business because it focus on demands of customers through various process. The

marketing research includes the qualitative, quantitive, branding and secondary research
of the products and services for optimum output. The PepsiCo has done their marketing
research with the help of their development team (Fitt and et. al., 2019).
 Product: The product is very important in planning process of marketing because
products represents the company. The product marketing includes the promoting and
selling of products to the customers (Chuvieco and et. al., 2018). Products should be
relevant and follow the market trends. The PepsiCo is focusing on the market trends and
has launched 'Health with taste' to provide benefits to the customers.
 Budget: The process of budgeting depends on the house souring and house sourcing
process. The PepsiCo has taken into account both house souring and sourcing for
deciding the budgets of products.
 Pricing: The pricing defines as the setting of amount or price of the products and
services. The price of product should be liable and fair for customers as well as to the
company. It should be done by targeting the different economical groups and the
availability of products to each customers. PepsiCo has focus on pricing of new soft
drink as per different income levels (Penney, Cattan and Ridge, 2022).
 Evaluating the result: The last step of marketing planning process which focus on all
strategies of company before launching of products. This process is monitored by high
level of authorities. PepsiCo has used various new tools for modifying and evaluating the
performance.
Importance of marketing orientation:
The marketing orientation is the process which help in increasing the loyalty and
satisfaction of customers. It includes the concepts related to production, sales and marketing. The
marketing orientation is helpful for business development and their role in business are as
follows:
 Brand loyalty: The brand loyalty is the way to creates the trust of customers on products.
The marketing orientation focus on brand loyalty to increase the satisfaction of
customers.
 Gross generation: The marketing orientation is also focus on gross or revenue
generation before manufacturing of products (Zile, and Licite-Kurbe, 2021). The

revenue generation help in economy of company so it is the best way of marketing
orientation.
 Increase the share of markets: The market orientation process also help in increasing
the market share by identifying the customer demands. So PepsiCo has focused on
healthy drinks as per demand of customers to increase the share of company.
PESTLE analysis for new products and their micro environment factors related to competitor
activity
PESTLE analysis is the strategic tools which influence the business environment of
company and firms (Nandapala, Jayasena, and Rathnayaka, 2022).It affect both external and
internal environment of business. The PESTLE analysis of PepsiCo company in launching of
new soft drink are describe below:
 Political factor: This factor includes the action and policies of governments and contains
the corporate taxation, free trade disputes and fiscal policy (Golob and Kronegger,
2019). The PepsiCo new soft drinks contains carbonate as sweet materials and this is not
included in the political factor so it ultimately affects the sales of PepsiCo.
 Economic factor: The economic factors includes the interest rates, exchange rates and
employments rates. The PepsiCo has stable company due to economic stability of the
developed countries.
 Social factor: The social factor which PepsiCo company has analysed is focusing more
towards the healthy soft drinks.
 Technological factor: PepsiCo has developed the new technologies to increase the
product's benefits to enhance the selling of production.
 Environmental factor: The PepsiCo has formulating the new methods which help the
environment and PepsiCo also focus on water disposal system to save the environment
(Arai and et. al., 2019).
 Legal factor: The PepsiCo follow all rules and regulation formed by legislatives bodies
which enhance the safety of products.
Micro environmental factors
 Suppliers: The suppliers number is very high for PepsiCo because PepsiCo products is
dealing all over the markets of world. Increase number of suppliers increase the

bargaining power and it will help the PepsiCo in development of launching the new'
Health with Taste' soft drink.
 Competitors: The level of competition also affect the business because competition
creates the hurdle in development. The coca cola is the biggest competitor of PepsiCo
and there are different substitutes in the markets. To deal with the competition in markets
PepsiCo has to introduce the uniqueness in their products in terms of taste.
Importance of 7P model in effective planing of marketing
 Businesses improvements: It includes the process and people efforts which help
the organisation in development of businesses are known as business
improvements. It is combine work of people and process and it identifies the
flaws of business (Park, 2020).
 New product development: This process is based on new market trends and this
includes the satisfaction of customers. The new product development is based on
the demand of customers and the price of products.
 Differentiation: This is the strategy which allow the companies to separate
themselves from the market competition. This help the company to focus on
customer needs and make available the products according top customers
demand. It involves the innovation, unique experience and presentation on brand.
 Product portfolio: It is helping the company in analysing the products which is
useful for company and which is not useful.
SECTION 2
Segmentation process in soft drinks markets for business to business (B2B) and business to
consumer (B2C) markets
Segmentation: The segmentation process is the partition of market place into different
targets to achieve the accessible growth and developments. It is the way of dividing markets into
various segments which provides vast network of and ultimately reduce the time and cost. The
segmentation of markets is based on the geographical and demographical area. The three criteria
which is the main part of segmentation are homogeneity, distinction and reaction ( Appau, and
Churchill, 2018). The segmentation process is very beneficial for both (B2B) and (B2C) markets
because due to segmentation markets are divides into wide network and helpful for consumers to

make direct connection between consumers and markets. The segmentation in business to
business and business to customers are describe below:
 Business to business (B2B): Business to business segmentation is define as the process
of transaction of goods and services between one business unit to other business unit is
known as (B2B) segmentation. In this segmentation process the selling and buying of
goods and services from one business unit to other business unit is based on similar traits
and behaviour of business (Simester, Timoshenko, and Zoumpoulis, 2020).
 Business to consumer (B2C): The business to consumer is the process of segmentation
of business markets between business and consumers. The process of selling and buying
of goods and services are directly between business and consumers no middle man is
required to delivering the products to the consumers. The cost of products and services
are reliable in this process because there is no role of third party in this segmentation.
The segmentation approach difference between (B2B) and (B2C) are describe below:
Basis Business to business(B2B) Business to consumers (B2C)
Time period The business contract is last in
months and years. The
PepsiCo has signed the
contract with other business
unit for contract of 1 year and
also liable to full fill the
demands of other business on
time.
There is no business contract
in(B2C) markets. The
consumer of new launching
soft drink' Health with taste'
can change the products with
something else when they
don't like it.
User The PepsiCo has to connect
with stakeholders, executives
and products holder.
There is no connection
PepsiCo has tend to individual
buyers.
Connection The PepsiCo has to make their
business more rational.
The PepsiCo has to deal with
their customers emotionally.
Price The price of 'Health with taste'
is high and depends on
The price of 'Health with taste'
to the customer is low because

quantity. no involvement of other party.
The methods of targeting the (B2C) markets and the characteristics which help in targeting the
new products.
Targeting: Targeting is the process of choosing the potential consumers for increasing
the profit in business. The way of targeting consumers by PepsiCo are describe below:
 Size: It define the area of marketing and company should have the knowledge of the
number of customers who is interested in their products. The PepsiCo are focusing on
area where the number of customers are eager to buy the new soft drinks because it
enhance the selling of products.
 Understanding the customer needs: The best way of targeting the market is to know the
demands of customers because it enhance the sells. The PepsiCo has taken time before
launching the new soft drink 'Health with taste' to know more precisely the expectations
and needs of customers.
 Reachability: The reaching on customer demands is best way of targetting. The PepsiCo
has added different flavours like apple, vanilla, strawberry, mango, litchi and many more
for reaching the different groups of people.
Characteristics to targetting the (B2C)
 Lifestyles: Lifestyles of a person is based on according to their income. The PepsiCo has
launched the new healthy soft drinks at very low cost so that it is available for each
standard of people.
 Benefits: PepsiCo has added healthy constituents to the new soft drink which satisfy the
customer demands so customers will buy only this healthy drink in future.
 Demographics: It is based on gender, location, age and occupation. The new soft drinks
launched by PepsiCo has chosen the high profile area for marketing as well as new drink
has made by targeting the age of 20-55 years.
 Behavioural: The making of 'Health with taste' soft drink by PepsiCo by recognising the
demands of customers on healthy drinks.

Meaning of positioning and way of positioning the new soft drink in targeting markets
Positioning: It is the process by which brands and products establish their image in the
mind of customer (Dewi, 2020). The PepsiCo uses different way of positioning in markets and
their different ways are as follows:
 Monitoring position: It includes the checking of the overall function start from
launching to selling and marketing of products and services. PepsiCo has monitored the
overall performance before launching the products by various techniques.
 Establishing position: It is the process of delivering the message to the customers
through their products. The best way of establishing the position is advertisements.
PepsiCo has different modes of advertisement like social media, news, marketing
campaign etc.
 Customer identification: It is based on the needs of customer and PepsiCo has focus on
peoples demands by launching the healthy soft drinks.
 Competitor position: This describes the level of competition in the markets. PepsiCo
also focused on the competitor's products so that it modify the way of enhancing their
products by adding uniqueness to their products.
SECTION 3
Using table format for describing the 7P marketing mix regarding the new soft drink
Product This refers to the production of company in
terms of products and services. The product is
made according to the needs of customer. The
product contains the grantee and warrantee
factor before launching of products. PepsiCo
has launched the new soft drink' Health with
taste' with fruit juice and honey. The PepsiCo
has not added the sugar to the healthy drink
and add different healthy constituents to the
soft drinks. The new launched drink is made
according to customer demand and satisfaction.
The 'Health with taste' has 100 percent purity

and beneficial for health. The beneficial key
factor of new soft drink of PepsiCo has
increase the selling of this soft drink in market
at very high speed.
Place It is define as the area and market where the
company and business sell their products and
services. It includes the physical location as
well as websites, social media and catalogue. It
include the distribution channel which
establish the appropriate place to reach easily
to customers. The PepsiCo has chosen various
place like shops, markets, cinema halls, malls
to sold the ' Health with taste' soft drink. The
company is approaching to Vendors after
launching of new soft drink to enhance the
selling in (B2C) markets. The PepsiCo has also
chosen online platforms for selling the new
soft drinks.
Price It is define as the rate at which product has to
sold in the markets. The price of products
contains all its charges including the
manufacturing cost, shipping charge,
marketing charge and many more charges. The
products price is based on also demand of
markets. PepsiCo has launched the new soft
drinks at reliable rates so that it could be
available for each economical group. PepsiCo
has set the two price range one for high class
people and other for low class people.
Promotion It is the process of enhancing the selling

through various methods like advertisement,
campaigns, social media and promotional
programs. It is the positive way of positioning
the products in the mind of customers. PepsiCo
has used unique way to promote the new soft
drink ' Health with taste' in market through
using the different pamphlets in advertisement.
They have promoted the new soft drinks by
attracting the customers through the attractive
benefits and discount. PepsiCo has also used
the reward point on online purchasing of new
soft drinks and gave the benefits to use this
reward on next purchasing.
People People are the assets of any business who
represent the business and helping the
organisation to achieve the goals. To enhance
the talent of people is the best way to develop
the business. In terms of people the PepsiCo
always focus on hiring the best people which
has quality of team management, good
behaviour and many more for providing the
best services to the customers.(Asamoah,
2021). PepsiCo provides the training to their
employees for enhancing the performance of of
employees.
Physical evidence It includes the physical environment and
infrastructure of the business. It also includes
the colour, shape, size and packaging materials
of products as well. The physical evidence is
main part of marketing mix because it includes

all the things which attract the customers.
PepsiCo has launch their new soft drink in
container which is very attractive in colour size
and shape. The uniqueness of new soft drink
which has added by PepsiCo company is by
adding the best health quotes on each and
every containers.
Process It includes the whole concepts on which
company run their business. It is very
important in marketing service because it focus
on marketing plan, implementation, mission
and control of products and services. The
process of PepsiCo is very efficient and
convenient. It includes all the efficient way
which increase the availability of soft drinks in
good quantity in general store as well as online
store. PepsiCo has launched the new process
by which it provides free home delivery and
cash back systems in the business to consumer
markets (B2C).
CONCLUSION
As per above report the principle of marketing is the principles of marketing components
which is used to identify the needs and demands of customers through various ideas, thoughts
and suggestions which help in increasing the business. The principle of marketing is based on
product, price, place and promotion. It provides the basic strength to the business to mould the
business in each and every situations. Furthermore, the report has included the PESTLE analysis
and their factors which enhance the business. As per above report the business is divided into
(B2B) and (B2C) marketing where company is either linked to other business unit or direct to
consumers. As per above discussion the principle of marketing also based on targeting the

customer, positioning and segmentation process. The PepsiCo has used their best way for
targeting the customer by knowing the actual needs of customers as well as positioning in
markets through different discount and advertisement process. Furthermore, the report has
includes the 7P of marketing mix with respect to PepsiCo company and their effect on marketing
process. The PepsiCo has also focus on best product service with reliable price in markets. The
best way to develop the business of soft drink is based on STP model and through online
business platform.

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