Analysis of Brand Management Strategies: A Case Study of PepsiCo

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BRAND MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................3
TASK 1: MANAGEMENT AND BUILDING OF BRAND OVER TIME...................................4
TASK 2: BRAND PORTFOLIO AND HIERARCHY MANAGEMENT.....................................0
TASK 3: BRAND LEVERAGING AND BRAND EXTENSION.................................................0
TASK 4 MANAGING AND MEASURING THE BRAND VALUE............................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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LIST OF FIGURES
Figure 1: Logo of PepsiCo...............................................................................................................0
Figure 2: Product Portfolio of PepsiCo Brand.................................................................................1
Figure 3: BCG Matrix for PepsiCo..................................................................................................3
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INTRODUCTION
The given study has been conducted for an advertising firm called ‘Optimum Impression
Limited’ so as to create a good marketing brochure with the given headline ‘Brand is Power’.
The report would discuss the importance of brand management with the help of the concept of
brand equity using its model. There would also be discussion about brand crisis from a case
study and how they were able to manage it effectively. Furthermore, the study would also
provide hierarchy management of a global beverage brand. At last, the study would discuss the
strengths and weaknesses of the given brand effectively.
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TASK 1: MANAGEMENT AND BUILDING OF BRAND OVER TIME
INTRODUCTION
Brand
A brand is defined as a symbol, name or logo which is used by various companies to differentiate
their products with other company’s product in a given market. A good brand helps in creation of
brand identity which helps the given organization to sustain in the given market in an effective
manner.
Brand Equity
This is a concept which defines the value of the given brand for which marketing would be done.
Positive brand equity illustrate good image of the organization and negative brand equity
illustrate diminishing of the brand image among its potential and targeted customers (Campelo,
2017).
Stages for Successful Brand Buildup
There are various stages which are used to build a successful brand and include:
 Deep Brand Analysis
The given stage analyses and assesses the position of the brand in the given market.
Moreover, the management would take the responsibility of the identification of important
factors about consumer’s perception towards the brand so that they could evaluate them
effectively for achieving a significant growth (Ansary and Hashim, 2018).
 Creation of USP
This includes identification of the mission and vision of the given organization to make their
brand successful in the given market. Furthermore, this stage helps the organization to get
knowledge about the brand value proposition so as to successfully promote the brand in an
effective manner (Keller, 2016).
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 Developing Creative Branding Elements
In the given stage, the major emphasis is provided to the creation of an unique brand image
using effective promotional and marketing campaign through social media. This could be
done in terms of the logo, style and color of the brand.
 Implementation of effective marketing strategies
In order to strengthen the given brand and create its brand awareness among the customers, it is
required by the organization to use effective marketing strategies so that it would be beneficial
for the organization to promote their products in an effective and appropriate manner and thus
increase their significant growth (Mann, 2018).
Role of Marketing Department in Creating Brand Equity
Brand equity is generated using an effective marketing procedure. With effective communication
medium, the marketing department would help in increasing awareness about the brand among
the customers and thus help them to rethink about their buying decision. The main role of the
marketing department is to identify their potential customers and then target these customers
using effective marketing procedures and thus enhance the value of their brand in a significant
manner. Besides, another role of the marketing department is to create a cordial relationship of
management with the customers (Wang, et al. 2018). This in turn would help them to get access
to the needs and demands of the customers so that they would be able to provide them effective
products and thus satisfy their needs in an appropriate manner.
MAIN BODY
Case Study related to Successful Diminishing the Impact of Brand Crisis
Brand Crisis happens when an undesirable events affects the efficiency of the brand management
and creates a negative image of the brand. Just writing the apology would not convince the
customers, it is the responsibility of the management to take quick steps to mitigate the given
issues (Gistri, et al. 2018).
One such case study would depict the impact of brand crisis which was faced by ‘Taco Bell’
which is a leading American fast-food chain. It faced a crisis in 2011, when a lawsuit was filed
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against the company’s one of the product. The complaint specified that the seasoned beef
provided by the company contains only 20% beef instead of 80% beef as claimed by the
company in one of its advertisement. To manage this crisis, the company published its discloser
on all the major newspapers. As per this, the company thanks their customers for suing them and
wanted to clarify that all the ingredients were same and the quality used in the beef has not been
tampered contrary to all the biased report (Seo, et al. 2018).
CONCLUSION
From the above discussion, it has been clear that the value of a company would increase only
after they have accomplished a good branding procedure. When the brand is able to create its
space in the heart of people, they try to associate themselves with the given brand and would
compel the company to create better brand for them. This also indicates that the brand equity of
the company is at healthy position. Moreover, branding also act as an effective marketing tool
because if proper branding of the product is not done, then it would result in dissatisfaction
among the customers and would lower their usage of the given product. Thus, a good branding
would help the organization to create a good brand image and thus enhance its productivity.
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TASK 2: BRAND PORTFOLIO AND HIERARCHY MANAGEMENT
The given task has been based on PepsiCo International which is a leading US based food and
beverage company. After its inception in 1965, the company has been continuously expanding its
product portfolio (Valladares, et al. 2018). It has been selling its products across all the region of
the world and thus become leading beverage company across the globe.
Figure 1: Logo of PepsiCo
Source: [Valladares, et al. 2018]
Brand Portfolio and its Models
Brand Portfolio
Brand portfolio is a collection of brands which are under the control of an organization. Small
businesses have single brand in their portfolio, while large businesses have multiple brands in
their portfolio. The brand portfolio of the PepsiCo Company comprises different features such as
cold drinks, sports drinks, snacks, juices and hot cereals (Ansary and Hashim, 2018). There are
two types of models to explain brand portfolio and which are as follows:
House of Brands
According to this strategy, numbers of smaller brands under a single brand are allowed to
function independently and utilize their own marketing strategies to enhance their brand image.
PepsiCo is one such organization which whose brands operate as an independent identity and do
not utilize the brand name of their parent product in their advertisement campaigns. The
advantage of this strategy is that the distinct products are offered to the customers in another

market in an efficient manner. It has a disadvantage that they are complex in nature and thus is
difficult to handle (Mohan, et al. 2018).
Branded House
According to this strategy, the product of the parent company uses all the features such as name,
logo and color of its parent organization so as to effectively promote its brand among the
customers in a significant manner. The brand under PepsiCo group uses this strategy to promote
their product in an appropriate manner. The benefits of using this strategy are that it helps in
reduction of the market expanses for the given product and allow them to advertise their product
in an appropriate manner. However, the biggest drawback from this strategy is that if one brand
fails, the other brands are also affected which have a severe impact on their sales and
profitability (Valladares, et al. 2018).
PepsiCo utilises the house of brand model of brand management. The reason behind using this
strategy is that it allows the company to cater the demand of large number of its customers.
Moreover, this model allows the brands of the parent organization to function in an independent
manner and makes their launching comfortable due to negligible impact of bad performance of
one brand on other brands. As PepsiCo is providing its services to different countries, this
model would be beneficial to its working as it would help the parent company to satisfy the
demands of people residing in different regions in an appropriate manner.
HIERARCHY MANAGEMENT OF PEPSICO BRAND
Figure 2: Product Portfolio of PepsiCo Brand
Source: [Menon, et al. 2018]
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The hierarchy of the PepsiCo brand is divided into five major categories which are salty snacks,
hot cereals, carbonated drinks, juices and sports drinks. In order to effectively manage all of
these brands, the company has a proper communication medium so as to convey necessary
information to each of the brand. For example, the brands related to the sports drinks require to
be presented in energetic themes and bright colors so that they would be able to fulfill the
objectives of the brand in an appropriate manner (Koschmann and Sheth, 2018).
For the consumers, it is mandatory for every organization to deliver to them as per their promise
they have done to them. Moreover, this promise must be reflected in their marketing campaign
so that the customers would feel that they are part of this campaign. In order to effectively
manage the brand hierarchy, PepsiCo would have to effectively deliver to the promise they have
made with the brand and towards the customers. Besides this, the brands could be effectively
manage by dividing the brands into different subcategories which would help them to manage
the brand in an effectively manner. Furthermore, PepsiCo also utilizes the services of market
research so as to analyse the customer demands and do necessary changes in the quality of the
product (Menon, et al. 2018).
Strategies utilized by PepsiCo to Manage Brand Equity
There are total 22 brands of PepsiCo Group in different categories. In order to effectively
manage these brands, the company utilized the services of BCG Matrix which could be defined
as follows:
STARS:
 Pepsi
 Mountain Dew
 Tropicana
Question Mark:
 Diet Pepsi
 Miranda
 7 Up
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COWS:
 Aquafina
 Lays
 Frito Lay
 Cheetos
DOGS:
 Pepsi Max
Figure 3: BCG Matrix for PepsiCo
Source: [Curuksu, 2018]
It is a growth-share matrix which is used by the organization to classify their business units
which have high growth and advantageous and have low growth and disadvantageous. The four
quadrants of BCG matrix for PepsiCo are described below:
Star
These are products with high growth and high share in the market. Pepsi, Mountain Dew and
Tropicana brand of PepsiCo comes under this category as they have high market share and high
growth in the future. They have been advantageous to the company because they are an
important asset and the company has invested in them heavily so as to get a strong position in the
market (Greer, 2018).
Cash Cows
These are products which have high market share but low growth. For PepsiCo, Aquafina, Lays
and Cheetos act as a Cash cows because although they have low growth, they require minimum
investment and thus have a high market share which would prove to be advantageous to the
given organization (Curuksu, 2018).
Dogs
These are products which have low market share and low growth. Pepsi Max is the only brand in
the given stage. For them, the company has to create its investment strategy thoughtfully because
they would not be able to yield high profit for the given organization.
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Question Mark
These are products with low market share and high growth. 7 Up, Diet Pepsi and Miranda
comprises under this category for the given group. This sector has high potential and thus
provides the given group to grow in an appropriate manner (Greer, 2018).
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