Pepsi Marketing Plan: Analysis of Competitors and Marketing Strategies

This report presents a detailed marketing plan for Pepsi, examining its internal and external environments, particularly in comparison to its main competitor, Coca-Cola. The report includes a thorough situation analysis, encompassing SWOT analysis, environmental factors, and competitive analysis for both Pepsi and Coca-Cola. It also develops a marketing plan for Pepsi, including value proposition, marketing objectives, target market identification (old age and youth), customer profiles, competitor analysis, market channels (newspapers, television, and social media), and implementation details with budget and timeline. The report highlights Pepsi's strategy to attract customers through sugar-free products and emphasizes the use of various marketing channels to increase sales, market share, and customer base. The analysis provides insights into Pepsi's efforts to achieve profitable sales through effective marketing programs and attract a larger customer base.

Marketing

Table of Contents
TASK 3............................................................................................................................................4
P4 Develop a basic Marketing plan............................................................................................4
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1
.........................................................................................................................................................1

INTRODUCTION
Marketing is the process or action that the business use to promote and sell products or
service (Armstrong and et.al., 2015). It refers to the activities of the company that is associated
with buying and selling of a product or service. The report is based on Pepsi company. It is a
carbonated soft drink manufactured by Pepsi co. headquartered in New york. The below
assignment explains situation analysis of Pepsi and its competitor Coca cola and determines e
marketing plan of Pepsi company.
TASK 3
P4 Develop a basic Marketing plan.
Marketing plan is a comprehensive document that outlines company's overall marketing
effort. It is a blueprint that assist how the company will implement its marketing strategy and use
resources to achieve business objectives. The main purpose of preparing a marketing plan is to
introduce a new product in market to enhance their sales. For example Pepsi is going to launch
sugar free drinks for health conscious people. This would be a major opportunity for the
company to attract customers towards its products.
Situation Analysis
Introduction- It refers to the collection of methods that the managers use to analyse to analyse
organisations internal and external environment to determine business capabilities, customers
and its business environment. Below is the situational analysis of Coca- Cola and Pepsi
company.
Coca Cola Comments
Swot analysis Strengths
 It has a high brand equity and a unique brand identity with a vast
global presence.
 It has a large market share with a wide variety of product portfolio to
cater needs of different target customers..
 It has a loyal customer base towards its products (Berthon, and et.al., ,
2012).
Weaknesses
 There is high competition from Pepsi which leads to customer brand

switching.
 Company absence in health beverages products may make the brand
loose its customers.
Opportunities
 Company can diversify in health and food business which will
improve offerings of Coca- Cola to their customers.
 Company can improve their supply chain management in order to
reach products to the customers at a timely manner (Brown, 2016).
Threats
 Different government rules and regulations make make the business
operations a complex in different countries.
 Strong competition can lead to reduced market share.
Environmental
analysis
Coca Cola is greatly affected by the environmental factors, they must meet
regulations of the government in distributing their drinks. They should
provide goods according to different customs, culture, taste and preference of
customers as well as use better technologies to manufacture products in better
and higher quantities. Brand has to adhere with environmental laws and take
the advantage of humid climate to distribute more drinks.
Competitive
analysis
Its major competitors are Pepsi, Red bull, Nestle. In order to be ahead of its
competitors brand is using various promotional strategies and offering many
discounts to the people in order to attract them towards the product.
Marketing mix Coca-Cola has the widest portfolio such as fruit juices, fruit drinks, water and
energy drinks. It follows FMCG distribution system which makes the
availability of the product in the small rural areas and increase its presence in
the market. Their are different pricing strategies for each of its sub brands.
Their pricing strategy is normally based on competitors pricing strategy.
They uses CSR as its marketing tool to gain emotional benefits in consumers
mind which attract them towards the brand
Marketing Plan In marketing plan of Coca cola it makes its business objectives and develop

strategies in order to achieve business goals (Hair and et.al., 2012).
Evaluation to
Coca Cola to
achieve business
objectives.
Main objectives of Coca- Cola is to maximise their profits while maintaining
long term sustainable growth. In order to achieve this objective brand should
produce goods which meets customer needs.
Pepsi Comments
Swot analysis Strengths
 It is one of the most prominent and famous brand in the world, has a
good brand equity.
 It has a wide range of product portfolio to cater needs of different
segments of people.
 It has a loyal customer base towards its products (Jobber and Ellis-
Chadwick, 2012).
Weaknesses
 There is high competition from coca cola which leads to customer
brand switching.
 Company is present in food and beverage industry which may be
harmful in long run.
Opportunities
 Company can do CSR activities and remove the bad image which
hurts the brand.
 Company can add more favours to their drinks and attracts larger
market.
Threats
 Unhealthy factor associated with the product can make the company
loose their customers.
 With the economic slow down, company might see a drop in sales.
Environmental
analysis
Pepsi Co is second biggest company in global food and beverage industry.
Company should expand its business more in us as it is politically stable and

there is economic stability in most major markets of US. They should focus
on producing products according to the health conscious people to target
more customers. They should start moderate R&D investments to specialise
their products as well as their main focus should be on business
sustainability by producing products without damaging environment.
Competitive
analysis
Bigger companies such as Coca- Cola, Red bull, Dr. Pepper Snapple are the
major competitors. In order to be ahead of these companies, Pepsi should
provide goods according to customer requirements and at a reasonable
price(Kozlenkova, Samaha and Palmatie, 2014).
Marketing Mix Pepsi has a large portfolio of products includes Pepsi-Cola, mountain Dew,
Lay's, Tropicana, Mirinda. They are available in various supermarkets, mini
markets, grocery stores and in restaurants. Brand uses television, internet as
well as other social media channels to promote its products.
Marketing Plan In marketing plan of Pepsi it conducts market research, analyses its
customers and competitors and supply products according to needs of target
groups.
Evaluation to
Coca Cola to
achieve business
objectives.
Main objectives of Pepsi is to achieve profitable sales through effective
marketing programmes and attract larger customer base towards the product.
Conclusion- This is the situational analysis of Pepsi and Coca- Cola company which develops
their own methods and strategies in order to be ahead of competitors.
Marketing Plan of Pepsi
Marketing Strategy
It is the strategy used by the brand in order to attract large number of customers and
thereby maximise profits. Value proposition is referred to as a feature added to products to
make them innovative and attracts customers. Pepsi has introduced sugar free soft drinks in order

to attract customers. Pepsi has a large portfolio of products includes Pepsi-Cola, mountain Dew,
Lay's, Tropicana, Mirinda. They are available in various supermarkets, mini markets, grocery
stores and in restaurants. Brand uses television, internet as well as other social media channels to
promote its products. Pricing strategy for Pepsi is market oriented which is based on various
factors such as demand of the product, consumer purchasing power and competitive
environment. Pepsi company provides maximum satisfaction to their employees by taking care
of their health and safety during production and fulfils customer needs according to their change
in demand (Lovelock and Patterson, 2015). In process it uses three step distribution network
such as direct store delivery, customer warehouse and distributors network. Physical evidence
refers to the physical components that the consumers will be interacting with the business such
as packaging of the product and branding etc. Small attractive blue colour bottle with proper
branding attracts the customers towards the product.
Marketing Objectives
To enhance 20% sales within 6 months by offering sugar free products.
To increase market share by 15 % in upcoming 2 years.
To increase customer base by 50% in next 2 years.
Target Market
 Its target market mainly includes old age peoples as well as young generations which are
highly health conscious .
 For old age people who are suffering from various diseases, primary research conducted
is surveys which analysed the demand of sugar free drinks.
 For young generation, it has been determined by secondary research that there is a great
need for sugar free soft drinks to avoid health related problems and enjoy life.
Customer Profiles
Customer Type Demographics Purchasing Habits Motivation Touch Points
Old Age People Above 60 years As the respective
age group people,
is having many
Motivating factor
is this drink is not
available from
This profile of
customers can
interact with

diseases, sugar
free drinks
enhances them to
purchase(Sargean
t and
MACQUILLIN,
2016).
any other
companies. This
will make the
people analyse
that company is
taking care of all
target groups and
will not affect
their
health(Peattie and
Belz, 2013).
phones and other
forms of
communication.
Youths Above 20 years Today's young
generation people
have become
health conscious
and started
demanding sugar
free products.
This influences
them to purchase
the product.
Sugar free
products is the
most motivating
factor which
influences them
to purchase the
product.
Touch points for
youth generation
of people are
company's
website, or any
other social media
platforms.
Competitors Analysis
Its major competitors is Coca cola. Respective company can be ahead of its competitors as they
are providing high quality sugar free drinks and attracts large customer base.
Market Channels
Channel Target Audience Market Communication
Activity
Newspapers & Television Old age as well as young Advertisement in newspaper

generations and Television to make
awareness about the product,
specifying its benefits.
Social Media platforms Youths Publishing articles as well as
providing information on
social media. As it is regularly
accessed by the youths, it
makes them aware about the
product (Pike and Page, 2014).
Implementation
OBJECTIVES Budget Time fame Responsibility
Increase Sales 15 lakh 6 months To increase sales
by creating
awareness about
the product.
Increase Profits 20 lakh 2 years To provide
product to the
customers who
require and
increase profits.
Increase Customer Base 15 lakh 2 years To target
customers and
providing goods
to meet their
satisfaction level.

CONCLUSION
From the above report it has been concluded that marketing plan is very necessary in
order to launch a new product in the market. It gives a clear suggestion to the company to
identify their target customers and plan strategies accordingly. It also allows them to decide
budget according to each strategies and achieves business objectives accordingly.