Pepsico's Bubble Gum Drink: Market Analysis and Marketing Report

This report provides a comprehensive marketing analysis for a new bubble gum flavored soft drink proposed by Pepsico for the UK market. It begins with an introduction to market analysis and then describes the product, including its features, pricing, and unique selling proposition. The report then delves into market analysis, examining market size, competition, growth trends, and profitability. It also covers segmentation, targeting, and positioning strategies, outlining the demographic, geographic, behavioral, and psychographic segmentation approaches. The marketing mix is thoroughly analyzed, including product development (core, actual, and augmented products), place (distribution channels), price considerations, and promotional strategies, including digital marketing. The report concludes with a summary of key findings and recommendations.

Formative submission
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Describe the product...............................................................................................................3
Market analysis.......................................................................................................................4
Segmentation,targeting and positioning strategy for the product...........................................5
Marketing Mix........................................................................................................................7
Product....................................................................................................................................7
Place.......................................................................................................................................8
Price........................................................................................................................................8
Promotions..............................................................................................................................8
Digital Marketing...................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Market analysis is the research to understand the behaviour of customers, identifying
their needs, segmenting, targeting and positioning the products in the market. The industry is
impacting the performance of products and helping in understanding the market for the new
products by analysing competitors. The marketing department has to make a plan to create a new
products and do market and research to understand the needs of customers (de Oliveira and
Caetano, 2019). The report includes creating a new product for Pepsico in the markets of UK. It
was founded in 1893 by Caleb Bradham. It includes the explanation of the product, market
analysis, STP and identifying core proposition, embodied proposition and augmented
proposition.
MAIN BODY
Describe the product
The product features will give the explanation of its composition, chemical solutions,
packaging, safety instructions, processing, storage, etc.
 Product Name- Bubble gum flavour soft drink.
 Price- It will be at Rs 45 for 200ml can, 250ml will be of Rs 57 and 600ml will be of Rs
170.
 Smart Objective- To introduce Bubble gum soft drink in the existing market within 5
months in order to expand its product line with increase in the profit margins by 5%.
 USP (unique selling proposition)- It is formed by testing on customers who want to try
new things and want to have a sweet taste in the cold drink. Bubble gum soft drink has a
personality of a person who is calm and can handle things.
 Packaging- They are available in new sizes like shuttle bottles in 450ml which is
designed in pink colour to attract girls. The colour of the bottle is pink and have label
which will have the price and description of product (Jia, Chen and Li, 2019).
 Competitors- They are in niche market where the competition is with smoothies of KFC
and McDonalds.
 Distribution- It will be distributed in cinemas and theatres, retail stores and kiosk. The
distribution channel will be through dealers and distributors and kiosk is owned and
operated by the company.
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 Value proposition- The customers should buy the drink because it is by Pepsico and has
a guarantee of good quality and it is made for customers who want to have a soda which
is more sweet and has a different flavour to freshen the mood.
 Customer Perception- The customers will perceive the products as soft and unique. It
will freshen up their mood and give them a party feel. They will have it in special
occasions or when they are travelling. The customers who are watching movies and
shows will like the drink.
Market analysis
The organisations should have the understanding of the products and services provided to
customers and the knowledge of its competitors. Market analysis is the process of understanding
customers and analysing the marketing strategies of the organisation (Ridge and et.al., 2019).
The brands need to have the understanding of the market which includes the analysis of
competitors and customers.
 Market size and competitors analysis- Pepsico is targeting the younger generations like
13-35 years who want to have an experience of different products. They are the segment
of customers who are willing to have new products and the Bubble gum flavour drink
will be liked by teenagers. The market size of Bubble gum soft drink of Pepsico is 30%
targeting teenagers and early adopters. There are no competitors for Bubble gum flavour
cold drink as they are the first company to experience it but they can have competition
from McDonald and KFC for smoothies and will have a market share of 2%.
 The growth of the market- The market will have a expected growth of 15% annually
and it is expected that it will increase their profits by 5%. The growth of the market of
Bubble gum flavour drink is based on the demand and supply and they will make
customer impulse buy products. The growth is determined by the strategies of the
competitors as they will influence the nature of customers for our products (Iyer and
et.al., 2019).
 Market trends- The trend in market is the change in fashion and taste which is important
for the organisations like Pepsico to understand. The customers will purchase the product
when they are trendy and it will increase the impulse buying.
 Market profitability- The market profitability is influenced by many factors like the
external business environment of the organisation (Piercy, 2016). There are many
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competitors who wants to affect the sales of big brands like Pepsico and will make the
plan to decrease their profits but the companies should be aware of it. The profitability of
the market is including the profits of the competitors and all the organisations in the
industry. The Bubble gum flavour drink of Pepsico will contribute to the profits of the
industry as well as organisation.
 Key success factors- The Unique selling proposition of Bubble gum flavour drink is that
they are giving small gift as the part of their marketing strategy and it will be a surprise
for children because it can be anything they do not know and they have to purchase it to
get the drink. The success of the new product can be determined when they are targeting
the right customers.
 Industry cost structure- The cost structure of the industry includes the fixed cost and
variable cost and it make the cost structure for the industry. They will have the impact on
the price of products. The pricing and cost of Bubble gum flavour cold drink is affordable
and it is cost efficient for the organisation which will help them increase profits (Yi and
Zhang, 2015).
Segmentation,targeting and positioning strategy for the product
The marketing strategies of the organisation should make plans for customers and
understanding of the market which includes segmentation, targeting and positioning. It includes
dividing the customers on the basis the liking of customers.
Segmentation
It is the process of identifying the marketing and classified it on the basis of selection and
development of the needs of customers. It includes customers who share the similar needs and
wants to have the goods of the organisation. The market is segmented based on the expectations
of customers by the organisation.
The segmentation will help Pepsico in deciding the marketing strategy. The strategy for
Bubble gum drink can be mass marketing targeting customers and non customers or target
marketing where they target customers. Segmentation will help Pepsico in deciding the
marketing strategy for the segment of customers. The customers are divided based on
geographic, demographic, behavioural and psychographic.
Segmentation Customers
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Geographic Density- Urban and Rural
Demographic Age- 15-35
Male, female, children
Life cycle- Bachelors, Newly married,
Couples with small child.
Income- students and professionals
Behavioural Customers who want to experience new
products and loyal customers.
Psychographic Middle class and working professionals
Targeting
This is the marketing strategy which is used by the organisation to make products
attractive for customers (Chen, Lin and Song, 2019). They are the market which the
organisations are focussing. The marketing strategy are made according to the needs of
customers in the target market.
Pepsico is targeting young professionals and students who want to experience new
product and trust the organisation. The Bubble gum flavour cold drink is for the children and
students and they are liked by girls and females so that will be the target customers. They are
including 10% of the non customers like young couples, people who go to cinemas, students at
schools and colleges. The girls will get attracted with the colour of the packaging so they are
making the labelling according to the needs of customers.
Positioning
It helps the organisations to understand where they stand for and their importance for
customers (Kozielski and et.al., 2017). It will help the organisations to identify why the products
are different from the competitors. It helps the organisations to understand the importance of
products to customers. The customers will increase because they will feel Pepsico understands
the needs of customers and will make them achieve profits.
The new products Bubble gum flavour cold drink of Pepsico is a unique product and it is
the most liked flavour by youngsters so it creates a personality that is soft. It has a sweet taste
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and freshens the mood. It gives the taste that is making them feel that they are important to the
organisation.
Marketing Mix
The marketing mix is the plan used by the organisation to attract customers to the
products and services. The organisations are using different methods to increase the
performance. They should used the plan that will help them reduce the cost of the organisation.
Product
The product is the combination of many services and facilities which are provided to
customers. The products of the organisation is not the tangible product but it has many benefits
which satisfy the needs of customers (Johnson, 2016). The benefits cannot be measured but it
provides convenience and it makes customers happy. The customers are willing to spend for
products when they feel that they are worth spending the money and it is satisfying the needs.
The stages of product proposition will help the organisations understand the different level of
customer needs. The product explains the level of products which can be determined as 3
different products like core product, actual product and augmented products.
Core product
It is the fundamental need of customers which is important to satisfy because they are the
most important factor which help them to buy the product. The core benefit of Bubble gum
flavour cold drink should be considered for customer and they should make the strategies
according to needs of customers. Core benefits are not included in the marketing strategy of the
Pepsico because they are the basic product and it is expected from the organisation.
Bubble gum flavour cold drink will make customers fulfil their thirst needs and get the
drink which can be the substitute of water and freshen the mood.
Actual Product
It is the products for which the marketing strategies are made and the organisation make
plans to promote them which will increase the sale and helps them achieve profits (Ghosal,
2015). They make the expectations from the organisation and explain the unique features of
product. Pepsico will make the marketing plan, segment the customers and then make the
strategies to sell products. It is the expected product which will be liked by customers when they
are in actual look and can make customers have the purchase decision.
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The actual product is the tangible product. The customer will not compromise with the
actual product and purchase it when they are in the best quality. Bubble gum cold drink should
be a soda and perfect in taste and colour should be pink.
Augmented product
It is the service which is provided by the product and it helps customers in getting new
experience. It is the aided product which help the organisations to attract customers. It is the
benefits which customers are getting and they are willing to pay extra amount to satisfy the
needs. The marketing strategies is important for Pepsico in selling the products and it involves
costs.
Bubble gum cold drink is the new product which is not existing in the market so they will
have to make the strategies and the augmented product is the packaging an its shuttle bottles
which will attract customers.
Place
They have their kiosk in school and college canteen and they students can have it in the
lunch. The customers can have the products from retail stores, theatres, cinemas and kiosk.
Price
The cold drink market cannot have higher prices for products so they will have ton
reduce costs and make it according to the competitors. It makes customers understand products
and the quality of services provide by the organisation.
Promotions
The promotional strategy for Pepsico for the Bubble gum drink is that they will make it
trendy and will create the interest of customers which are youngsters who want to have the
experience of new products and want to have quality drinks.
Digital Marketing
The organisation wants to improve the performance and they will have to make the goods
and services. The organisation should use the methods that helps them to attract the customers.
Pepsico is having Search Engine Optimization that will help them in increasing the reach and
they will give good products to customers. They are having customers that are helping them in
making quality products. The digital marketing is the methods used by the organisation to
increase the performance.
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CONCLUSION
From the above report it is concluded that the analysis of the market is important in
making the STP process. The organisations are focussing on giving good experience to
customers and helps in increasing profits. The organisations should have a good research of the
products because it will help in understanding the behaviour of customers. It is important that
customers are satisfied because they will help the organisations to achieve the goals.
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REFERENCES
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