Principles of Marketing Report: PepsiCo's New Soft Drink

This report provides a comprehensive analysis of marketing principles applied to the launch of a new soft drink product by PepsiCo, 'BESTDRINK.' It begins with an introduction to marketing orientation and the components of the marketing planning process, including market research, target market identification, product development, and competitive analysis. The report then delves into the SOSTAC model for strategic planning and includes a PESTEL analysis to evaluate the external factors influencing the product's success. Section 2 focuses on market segmentation, differentiating between B2B and B2C approaches, and explores targeting strategies based on various consumer characteristics. It also examines positioning techniques to establish the soft drink in the target market's minds. Section 3 applies the 7Ps of the marketing mix to the new product, detailing each element with relevant examples. The report concludes with a summary of the key findings and a list of references.

Principles of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
SECTION – 1...................................................................................................................................3
a)Explain and importance of using marketing orientation in the organisation and marketing
planning process components in context for the new soft drink product-..............................3
c)Elaborate importance of 7Ps model for effective marketing planning-..............................8
SECTION 2 -SEGMENTATION, TARGETING AND POSITIONING ......................................8
Segmentation process for soft drinks market for B2B and B2C market and the differences in
approaches between B2B and B2C segmentation:.................................................................8
The process of targeting the B2C market and their characteristics including benefits,
behavioural, demographics and lifestyle in targeting the new products................................9
What is meant by positioning and way of positioning the new soft drink in minds of target
markets.................................................................................................................................10
Section 3.........................................................................................................................................11
a)Using table format design 7P's of marketing mix with references to the new soft drink
product..................................................................................................................................12
P's.........................................................................................................................12
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................15

INTRODUCTION
Principles of marketing are followed by the organizations and companies, to enhance and
increments into the marketing strategies with the help of principles that is 7Ps of the marketing.
There are many products in beverages are available into the market, but most of the soft drinks
contains more amount of sugar that can affects the health of the common people and also use of
plastics in the packaging of soft drinks that can impact on the environment that is why the
company has decided to launches a new drink. The report is prepared in respect to PepsiCo
which is launching its new product 'BESTDRINK'. This drink will contain zero sugar and will be
available in cans. So the company grabs the opportunity to launches the new drink in to the
market(Šerić Ozretić-Došen and Škare, 2020). This report includes PESTEL analysis of the soft
drink, marketing planning process of the components also discusses about the B2B and B2C
elaboration into the market, STP and marketing mix analysis of the soft drink and at last
competitor analysis is passage.
Main Body
SECTION – 1
a)Explain and importance of using marketing orientation in the organisation and
marketing planning process components in context for the new soft drink product-
Marketing planning process is the process in which the procedure for developing the
objectives, make the planning and implements into the organisation and businesses(Vrtaňa
2019). It can helps to detects the customer needs and wants in respect to gain more profit and
revenue for the company. There are various components of marketing planning processes are
mentioned below:
Marketing research – This process comes under, The Research and Development team of the
PepsiCo company. This is one of the major component in which to analyses the market
conditions or research on the market and also identifies the current and future trends into the
market.
Target market – In this component the PepsiCo identifies the product that will be sold in the
particular market. Every individual person have different choices and taste, that is why the
PepsiCo gives more attention into the youngsters(Lahtinen, Dietrich, and Rundle-Thiele
2020).

Product- The Product should be relevant to the customer as per their needs and wants. The
PepsiCo launches their product 'BESTDRINK' by looking the current and future marketing
trends. This can adhere the customer to the product and leads to more profit to the company.
Competition – The competition is rises in the market as to launching the substitute of the
product by any other company, that can increases the competition into the market but the
PepsiCo tries to innovation to get the competitive advantages.
Mission statement- In this component, The PepsiCo tries to complete the mission in order to
deliver the product to the customer with singularity in it. This company have many product
which can famous for its uniqueness and quality.
Market strategies – After the product producing, The marketing of the product is very important,
The PepsiCo markets their products in many ways like advertising, social media marketing,
direct marketing and many more.
Pricing- The pricing can be set as per the economical environment of the particular area. It can
also set for the beneficial of both customer and company. In context to PepsiCo, it can
divided the price range as per the income of the consumer(Gilal, and et. al., 2021).
Marketing goals – Marketing goal is the goal in which the PepsiCo wants to achieve the target
as per their expected from the input and wants to spread their product in the entire world.
Evaluation of result – It is the last and very important part for the PepsiCo company to evaluate
the product, this can done by the seniors and CEO of the company to evaluates, they are on
the right path or not.
Importance of adopting marketing orientation
The importance of the marketing orientation is to revenue generation in which the company
identifies the customer needs and wants before the manufacturing of the product. This can helps
to the PepsiCo to generate more revenue. The company can also focuses on increasing the
market share and growth of the company and tries to maintain the brand loyalty into the market.
a) SOSTAC Model
This model is one of the best planning model which was developed in the year 1990 in order to
help the marketing plan of the chosen company. Under which SOSTAC stands for
Situation, Objectives, Strategy, Tactics, Action and Control. The model is explained below-

 Situation- This step allows the chosen company to understand the position of the
business in the market. Due to this the company will be able to plan various activities
which will elevate the level of performance in the macro environment.
 Objectives- Under this the company will set the desired goals and targets. Moroever, the
chosen company must decide the various ways of the digital channels which can be used
increase the sales volume.
 Strategy- Such strategies are kind of overview with the aim of attaining the targets of the
company. It will summarise the ways to attain the objectives with various approaches.
 Tactics-the above mentioned point that is strategy and the details of the strategy will be
outlined in the Tactics. It will present the detail of various tools which can be used.
 Action-It highlights the ways to ensure excellent execution of the plan. In the chosen
company as per the situation of the market various action plan and change management
are made.
 Control- This step allows to understand the ways to regulate the overall operations of the
company. In this the respective company will get clear strategic planning in order to
attain the gaols of the company.
Figure 1:What is the SOSTAC methodology?

B) The product will be sold in UK as after the Pandemic the people are preferring the healthier
options of the cold drinks and the company will lead there. Due to Brexit, the chosen country has
faced a long term impact on its economy. It can be said that the GDP losses and the overall
operations got impacted in relation to the inflation.
b) A brief environmental audit in the form of a PESTEL analysis in relation to the soft
drink is explained below-
Factors Explanation
Political Factors The law and regulations of the government has a direct impact
on the operations. That is why the government of various
countries take several initiatives in order to confine the
companies to sell its products which are not safe for health. All
such initiatives lead to impact the sales of the chosen company.
Economic Factors It can be said that soft drink is that product which dominates the
market. So, economic factors are linked with the economy and
with the help of soft drinks being in market lead the way to
bring economic stability (Cohen, Bisogno and Malkogianni,
2019).
Social Factors As the people are getting aware and conscious for their health
that is why the company is choosing to make healthier versions

of the soft drink. The company has taken the decisions in
relation to introduce new soft drink for the customers.
Technological Factors The chosen company is making use of new technology with the
aim of elevating the level of efficiency in order to attain the
competitive advantage. The company is advised to keep
experimenting with its product line. Also, make use of social
media to attract young people.
Environmental Factors The chosen company is known to use various strategies by
which they are able to contribute more towards the environment
in order to save the environment.
Legal Factors The legislation is one the main factor which affect the business
as such legislative bodies comprises of various health and safety
law. Due to which PepsiCo has to follow the rules given by such
bodies.
To conclude the above projection of the analysis, it outlined the various elements which
can have a major impact on the performance of the business. From the above analysis, it can be
summarised that there are various elements which have been involved in consolidating threats
and opportunities (Friesendorf and Uedelhoven, 2021). With the help of PESTEL analysis the
new company will be able to understand the external factors which are out of the control. That is
why it is must to consider such factors while taking decisions in the operations of the company.
Micro environmental factors
The competitor of PepsiCo is Coco-Cola, Red Bull and many others and it can be seen
that there are large number of substitute available in the market. Due to which with the aim of
getting competitor advantage, the company should add new features and modifications in its
products(Schwerdt and et. al., 2019).
Also, the supply chain of PepsiCo is wide, it is operating in various countries and it is
dealing across the world. When the company has many suppliers so it has the power to bargain
and on the other hand when the number of suppliers declines then the bargaining power shifted
to supplier.

c)Elaborate importance of 7Ps model for effective marketing planning- New product development – To development of the new product, company can starts the
survey and information about the new marketing trends that can acquires the customer
attention.
 Differentiation – The PepsiCo company uses the tool of marketing mix in which the
company make the different types or various varieties of products to the customers
because every customer have different choices and taste(Adapa, 2018).
 Business improvement – The employees and the objectives are helps together to
improving the the organizational working. This can helps the organization to grow and
improve the quality of the product(Kho and et. al., 2022).
SECTION 2 -SEGMENTATION, TARGETING AND POSITIONING
Segmentation process for soft drinks market for B2B and B2C market and the differences in
approaches between B2B and B2C segmentation:
Segmentation: The segmentation in marketing is define as the partition of market-space
into different parts and segments or setting of various small targets to define the best ans
accessible growth, development and potential of business in the markets(Frizzo-Brizer and et. al.,
2020) It is very important way to develop the business by different networks and it help in
reducing time and cost of business. It provides benefits in the business both customer and
producers by helping the producers to direct connect with customers through the segments of
markets and able to know the needs of customer as well as it also help the customers to buy their
products to profitable markets. The segmentation process for B2B and B2C are as follows:
 Business to business (B2B): The process of selling, buying and marketing of products
and services between one business unit to other business unit of similar traits, behaviour
are termed as business to business segmentation.(Radojevic and et. al., 2018). B2B
segmentation are more complex because it contains more than one decision maker as well
as their decision have to follow more rational process.
 Businesses to customers (B2C): The term business to customer is define as the process
of selling and buying of products and services between business and customers. The
business to customers market is good way to sell products direct to customers without

involving the middle man(Ifa Khoirianingrum, 2019). The The cost of product of
business to customer service is reliable because of no involvement of third party.
The difference in segmentation approaches between B2B and B2C are describe in given table:
Basis Business to businesses (B2B) Business to consumers (B2C)
Sales PepsiCo sells their products to
another business unit in large
amount after that mediators are
sell the products to user.
PepsiCo sell their products
direct to customers and
quantity of sell is low because
it depends on purchase
quantity of customers.
Time period The PepsiCo have to sign the
contract with other business
party to full-fill their demands
on time.
In this there is no need of
contract between customer and
company. Customer directly
purchase the cold drinks when
they need.
Price The price of product and
service depends on their
amount and per bottle price is
low.
The price of PepsiCo is high
because of small quantity.
The process of targeting the B2C market and their characteristics including benefits, behavioural,
demographics and lifestyle in targeting the new products
Targeting : It is the process by which business choose their potential customers to
enhance their business profits(Tanford, Kim and Kim, 2020). The ways by which PepsiCo target
their customers who is efficient to enhance their profits are as follows:
 Reachability: The process of targeting the customer is also depends on the reaching
capability of products. As the taste of each person is different so PepsiCo has to add
different kinds of flavour like apple, strawberry, mint, chocolate, vanilla and many more
to reach different groups of customer.

 Profitability: This one is very important way to targeting the customer because it
enhance the profit. PepsiCo has to focus on manufacturing their products as per customer
demands so that their products satisfy the customer and they will pay extra money for
PepsiCo.
Characteristics to target the customer of PepsiCo
 Lifestyles: It is define as the way of living of people according to their income. The
PepsiCo have to launch the products with high quality at reliable price so that it will be
buy by different standard of people(Ahani and et. al., 2019).
 Benefits: The PepsiCo has to target the customers by increasing the healthy items to the
drinks so that it fulfil the demand of customer so that they will pay extra money on
PepsiCo.
 Demographics: It is based on age, gender, location, occupation so PepsiCo has to
manufacture the soft drinks according to the targeting the area and their high demands
according to age, location and occupation of that specific area.
What is meant by positioning and way of positioning the new soft drink in minds of target
markets
Positioning: It is the process of establishing the brand or product in the mind of
customers. The different way to position the brand or product of PepsiCo in the customer's mind
are as follows:
 Customer identification: The way by which product is set in customer's mind is to
identify the need and satisfaction of customer. PepsiCo has to focus on the what is the
demand of customer regarding the health drinks and company should add the healthy
components in the soft drink to reach the best targets(Shahriari and et. al., 2020).
 Appraise customers: It is the process by which PepsiCo analyse the buying pattern and
behaviour of the products and the company has analysed that healthy products have to
only purchase by the wealthy people.
 Competitor position: It is the process by which company understand the competition in
markets. PepsiCo has to modifying the way to understand the competition in market as
well as has to know the everything about competitor's products so that PepsiCo will add
the uniqueness to their product for enhancing their position in market.

 Monitoring position: The way by which company monitor and checking its overall
function including from manufacturing to launching and selling of products is known as
monitoring position. To enhance the monitoring position the PepsiCo check their
performance by different tools and process.
Section 3
AIDA model
AIDA model is divided into four stages in which the customer is to go through to make a
purchasing decision. The stages are explained below-
 Attention-In relation to the chosen company a campaign can be initiated which
comprises of promoting awards and qualification. With the help of the campaign the
targeted customers will be focused and can be reached.
 Interest-The interest of the customers can be generated that can be generating a Email or
any such activity which will be used as a market research for further betterment of the
product.

 Desire-The product must have some unique features that what makes it more desirable in
the market. The chosen company must be able to build a personal bond with the
customers.
 Action-The suitable steps must be taken in this stage by the company in order to connect
easier with the customers.
Figure 2: The AIDA Model: A Proven Framework for Converting Strangers Into Customers
a)Using table format design 7P's of marketing mix with references to the new soft drink
product.
P's New Soft Drink Product
Product Products are tangible in nature, which means the things are
touched and feels. The PepsiCo company launches the new
product BESTDRINK, this is the product of soft drink which
can be made with the deduction the quantity of sugar and also
modifies to the eco-friendly packaging.
Place It is define as the place where the product is sold. The soft
drinks of the PepsiCo company are selling into stores,