ritesh_rkg
New member
Table Of Contents
S. No. Content Page
1 Advertising
2 Different types of Advertising
3 Advertising Strategy
4 Advertising Campaign
5 Indian Soft Drink Market
6 PepsiCo Mission
7 Corporate Profile
8 Organizational Values
9 Brand Image of Pepsi
10 SWOT Analysis of Pepsi
11 Products of Pepsi
12 Advertising Strategy of Pepsi
13 Pepsi’s Advertising Campaign
14 About Youngistan Campaign
15 STP Analysis of Youngistan Campaign
16 Advertising Agency of Youngistan Campaign
17 Competitors of Youngistan Campaign
18 Rivalry of Pepsi & Coke
19 Spoof Advertisements
20 Bibliography
Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.
Ads can be a cost effective way to disseminate messages, whether to build a brand preference or to educate people. Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service. Many advertisements are designed to generate increased consumption of those products and services through the creation and reinforcement of "brand image" and "brand loyalty". Advertising has long been viewed as a method of mass promotion in that a single message can reach a large number of people. But, this mass promotion approach presents problems since many exposed to an advertising message may not be within the marketer’s target market, and thus, may be an inefficient use of promotional funds. However, this is changing as new advertising technologies and the emergence of new media outlets offer more options for targeted advertising.
The 5 Ms of Advertising
Mission: What are the advertising objectives?
Money: How much can be spent?
Message: What message should be sent?
Media: What media should be used?
Measurement: How should the results is evaluated?
Different Types of Advertising
Advertising is the promotion of a company’s products and services carried out primarily to drive sales of the products and services but also to build a brand identity and communicate changes or new product /services to the customers. Advertising has become an essential element of the corporate world and hence the companies allot a considerable amount of revenues as their advertising budget. There are several reasons for advertising some of which are as follows:
• Increasing the sales of the product/service
• Creating and maintaining a brand identity or brand image.
• Communicating a change in the existing product line.
• Introduction of a new product or service.
• Increasing the buzz-value of the brand or the company.
Thus, several reasons for advertising and similarly there exist various media which can be effectively used for advertising. Based on these criteria there can be several branches of advertising. Mentioned below are the various categories or types of advertising:
Print Advertising – Newspapers, Magazines, Brochures, Fliers
The print media have always been a popular advertising medium. Advertising products via newspapers or magazines is a common practice. In addition to this, the print media also offers options like promotional brochures and fliers for advertising purposes. Often the newspapers and the magazines sell the advertising space according to the area occupied by the advertisement, the position of the advertisement (front page/middle page), as well as the readership of the publications. For instance an advertisement in a relatively new and less popular newspaper would cost far less than placing an advertisement in a popular newspaper with a high readership. The price of print ads also depend on the supplement in which they appear, for example an advertisement in the glossy supplement costs way higher than that in the newspaper supplement which uses a mediocre quality paper.
Outdoor Advertising – Billboards, Kiosks, Tradeshows and Events
Outdoor advertising is also a very popular form of advertising, which makes use of several tools and techniques to attract the customers outdoors. The most common examples of outdoor advertising are billboards, kiosks, and also several events and tradeshows organized by the company. The billboard advertising is very popular however has to be really terse and catchy in order to grab the attention of the passers by. The kiosks not only provide an easy outlet for the company products but also make for an effective advertising tool to promote the company’s products. Organizing several events or sponsoring them makes for an excellent advertising opportunity. The company can organize trade fairs, or even exhibitions for advertising their products. If not this, the company can organize several events that are closely associated with their field. For instance a company that manufactures sports utilities can sponsor a sports tournament to advertise its products.
Broadcast advertising – Television, Radio and the Internet
Broadcast advertising is a very popular advertising medium that constitutes of several branches like television, radio or the Internet. Television advertisements have been very popular ever since they have been introduced. The cost of television advertising often depends on the duration of the advertisement, the time of broadcast (prime time/peak time), and of course the popularity of the television channel on which the advertisement is going to be broadcasted. The radio might have lost its charm owing to the new age media however the radio remains to be the choice of small-scale advertisers. The radio jingles have been very popular advertising media and have a large impact on the audience, which is evident in the fact that many people still remember and enjoy the popular radio jingles.
Covert Advertising – Advertising in Movies
Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels like movies, television shows or even sports. There is no commercial in the entertainment but the brand or the product is subtly( or sometimes evidently) showcased in the entertainment show. Some of the famous examples for this sort of advertising have to be the appearance of brand Nokia which is displayed on Tom Cruise’s phone in the movie Minority Report, or the use of Cadillac cars in the movie Matrix Reloaded.
Surrogate Advertising – Advertising Indirectly
Surrogate advertising is prominently seen in cases where advertising a particular product is banned by law. Advertisement for products like cigarettes or alcohol which are injurious to heath are prohibited by law in several countries and hence these companies have to come up with several other products that might have the same brand name and indirectly remind people of the cigarettes or beer bottles of the same brand. Common examples include Fosters and Kingfisher beer brands, which are often seen to promote their brand with the help of surrogate advertising.
Public Service Advertising – Advertising for Social Causes
Public service advertising is a technique that makes use of advertising as an effective communication medium to convey socially relevant messaged about important matters and social welfare causes like AIDS, energy conservation, political integrity, deforestation, illiteracy, poverty and so on. David Oglivy who is considered to be one of the pioneers of advertising and marketing concepts had reportedly encouraged the use of advertising field for a social cause. Oglivy once said, "Advertising justifies its existence when used in the public interest - it is much too powerful a tool to use solely for commercial purposes.". Today public service advertising has been increasingly used in a non-commercial fashion in several countries across the world in order to promote various social causes. In USA, the radio and television stations are granted on the basis of a fixed amount of Public service advertisements aired by the channel.
Celebrity Advertising
Although the audience is getting smarter and smarter and the modern day consumer getting immune to the exaggerated claims made in a majority of advertisements, there exist a section of advertisers that still bank upon celebrities and their popularity for advertising their products. Using celebrities for advertising involves signing up celebrities for advertising campaigns, which consist of all sorts of advertising including, television ads or even print advertisements.
Advertising Strategy
An advertising strategy is a campaign developed to communicate ideas about products and services to potential consumers in the hopes of convincing them to buy those products and services. This strategy, when built in a rational and intelligent manner, will reflect other business considerations (overall budget, brand recognition efforts) and objectives (public image enhancement, market share growth) as well. Most advertising strategies focus on achieving three general goals, as the Small Business Administration indicated in Advertising Your Business:
1) promote awareness of a business and its product or services;
2) stimulate sales directly and "attract competitors' customers"; and
3) establish or modify a business' image.
In other words, advertising seeks to inform, persuade, and remind the consumer. With these aims in mind, most businesses follow a general process which ties advertising into the other promotional efforts and overall marketing objectives of the business.
Advertising Campaign
Whether your advertising budget is a million dollars a month or only a thousand dollars a year, you’ll waste that money if your ads aren’t effective. What makes ads effective? A combination of content and creativity.
Your ads need to give the consumer a good reason to act (the content), and they have to be unique enough in their design and copy to attract the consumer’s attention in the first place (the creativity). Countless forms of media expose consumers to so much advertising on a daily basis — some of it so subtle that consumers don’t even know they’re absorbing it — that generating advertising for your business is a real challenge. However, your task isn’t impossible — it just takes some serious thought.
An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). Advertising campaigns appear in different media across a specific time frame.
The critical part of making an advertising campaign is determining a campaign theme, as it sets the tone for the individual advertisements and other forms of marketing communications that will be used. The campaign theme is the central message that will be communicated in the promotional activities. The campaign themes are usually developed with the intention of being used for a substantial period but many of them are short lived due to factors such as being ineffective or market conditions and/or competition in the marketplace and marketing mix.
Indian Soft Drink Market
Soft drink market size for FY00 was around 270 m.n cases (6480mn bottles). The market witnessed 5- 6% growth in the early‘90s. Presently the market growth has growth rate of 7- 8% per annum compared to 22% growth rate in the previous year. The market size for FY01 is expected to be 7000 mn bottles.
The Indian soft drink market is primarily ruled by two multinationals. While there are some regional players of repute, none have been able to expand their presence to the national level. Knowledge of the key attributes that drives the target customer will help these players to understand what makes the multinationals successful and how to design their product offerings so as to take compete with the established product of these multinationals. The Indian soft drink markets are divided into two parts:
1. Carbonated Soft Drink
2. Non-Carbonated Soft Drink
PepsiCo Mission
"To be the world's premier consumer Products Company focused on convenience foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity."
Corporate Profile
PepsiCo in India
PepsiCo entered India in 1989 and has grown to become one of the country’s leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.
PepsiCo India and its partners have invested more than U.S.$700 million since the company was established in the country. PepsiCo provides direct employment to 4,000 people and indirect employment to 60,000 people including suppliers and distributors.
PepsiCo nourishes consumers with a range of products from treats to healthy eats, that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.
PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets.
The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.
Organizational Values
Our Commitment
Our values reflect our aspirations - the kind of company we want Pepsico to be. We express our values in the form of a commitment. Our commitment is :
Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained growth stimulates innovation, places a value on results, and helps us understand whether today's actions will contribute to our future. It is about growth of people and company performance. It prioritizes making a difference and getting things done.
Empowered People means we have the freedom to act and think in ways that we feel will get the job done, while being consistent with the processes that ensure proper governance and being mindful of the rest of the company's needs.
Responsibility and Trust form the foundation for healthy growth. It's about earning the confidence that other people place in us as individuals and as a company. Our responsibility means we take personal and corporate ownership for all we do, to be good stewards of the resources entrusted to us. We build trust between ourselves and others by walking the talk and being committed to succeeding together.
Guiding Principles
This is how we carry out our commitment. We must always strive to:
Care for customers, consumers and the world we live in. We are driven by an intense, competitive spirit in the marketplace, but we direct this spirit toward solutions that achieve a win for each of our constituents as well as a win for the corporation. Our success depends on a thorough understanding of our customers, consumers and communities. Caring means going the extra mile. Essentially, this is a spirit of growing rather than taking.
Sell only products we can be proud of. The test of our standards is that we must be able to personally endorse our products without reservation and consume them ourselves. This principle extends to every part of the business, from the purchasing of ingredients to the point where our products reach the consumer's hands.
Speak with truth and candor. We speak up, telling the whole picture, not just what is convenient to achieving individual goals. In addition to being clear, honest and accurate, we take responsibility to ensure our communications are understood.
Balance short term and long term. We make decisions that hold both short-term and long-term risks and benefits in balance over time. Without this balance, we cannot achieve the goal of sustainable growth.
Win with diversity and inclusion. We leverage a work environment that embraces people with diverse backgrounds, traits and different ways of thinking. This leads to innovation, the ability to identify new market opportunities, all of which helps develop new products and drives our ability to sustain our commitments to growth through empowered people.
Respect others and succeed together. This company is built on individual excellence and personal accountability, but no one can achieve our goals by acting alone. We need great people who also have the capability of working together, whether in structured teams or informal collaboration. Mutual success is absolutely dependent on treating everyone who touches the business with respect, inside and outside the company. A spirit of fun, our respect for others and the value we put on teamwork make us a company people enjoy being part of, and this enables us to deliver world-class performance.
Brand Image of Pepsi
Pepsi is a Brand that every youngster relates to but this definitely doesn’t mean that other age groups are not its user. Target market of Pepsi is basically youngster but it is preferred by every age group. Thus Pepsi’s brand image is its hip, cool, lively and refreshing attitude.
SWOT Analysis of Pepsi
Strength
Pepsi has a broader product line and outstanding reputation.
Merger of Quaker Oats produced synergy across the board.
Record revenues and increasing market share.
Great brands, strong distribution, innovative capabilities.
Number one maker of snacks, such as corn chips and potato chips.
PepsiCo sells three products through the same distribution channel.
For example, combining the production capabilities of Pepsi, Gatorade and Tropicana is a big opportunity to reduce costs, improve efficiency and smooth out the impact of seasonal fluctuations in demand for particular product.
Weakness
Pepsi hard to inspire vision and direction for large global company.
Not all PepsiCo products bear the company name.
PepsiCo is far away from leader Coca-cola in the international market - demand is highly elastic.
Opportunity
Food division should expand internationally.
Noncarbonated drinks are the fastest-growing part of the industry.
There are increasing trend toward healthy foods.
Focus on most important customer trend - "Convenience".
Threats
F&B industry is mature.
Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market e.g. in India.
Over 50 percent of the company's sales come from Frito-Lay; this is a threat if the market takes a downturn.
PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft foods (because of broader product line) which are well-run and financially sound competitors.
Size of company will demand a varied marketing program; Social, cultural, economic, political and governmental constrains.
Products of Pepsi
Advertising Strategy of Pepsi
• Pepsi’s target audiences are mostly teens and young adults and their advertising reflects this in every possible way.
• The company changes its advertising strategy and image to reflect the target's interests.
• Pepsi makes sure that the advertisements reflect to the target audience’s interests and nostalgia.
• The advertising strategy includes cool, hip promos to attract more of the target audience.
• The advertising is mostly creative and has different elements like music and sports other than bollywood.
• Pepsi.com also plays an important role in advertising and attracts target audience by giving access to options like downloads, gaming, music mixing applications etc.
Pepsi Gears up for Fresh Advertising Strategy
With the swinging fortunes of cricket stars, PepsiCo India is gearing up to launch a brand new advertising campaign for Pepsi with out any star endorsers. Currently, PepsiCo India has twelve star endorsers from Bollywood and the Indian cricket team.
“Pepsi’s new campaign will be a consumer–centric advertising campaign without any celebrities,” informed industry sources. ‘Celebrities may come and go but brands are forever,’ seems to be PepsiCo’s new motto.
Incidentally, PepsiCo has not yet renewed Sachin Tendulkar’s contract which expired in May this year. According to industry sources, PepsiCo is now shifting its marketing focus to MS Dhoni, the highest paid IPL player. “The company will bring in MS Dhoni to the centre space from side lines. Of course, PepsiCo will make Dhoni wear some decent clothes to erase his Lungi-clad image,” said Prahlad Kakar, a leading ad film maker in Mumbai. Remember Pepsi’ ads featuring Dhoni, captain of the Chennai Super Kings team?
Enthused by the response to Dhoni’s ‘Mind it’ ads, the company will now project Dhoni as its brand icon in the next few months, predict industry analysts. “Young cine stars Deepika Padukone and Ranbir Kapoor now star in Pepsi Youngistan campaign. Very soon, we may see Dhoni sharing the screen space with Shar Rukh Khan in Pepsi ads,” added analysts.When contacted by FE, PepsiCo India declined to comment on its advertising plans.
On PepsiCo’s shift in strategy, Ramesh Narayan, veteran advertising professional based in Mumbai said: “I think every brand needs to keep in mind its profile. And Pepsi has always stood for the youth. I do not think it is any comment on Tendulkar as a player but they need to refresh their stable of sports person with younger people.” In sync with its new strategy, PepsiCo has roped in Ishant Sharma and Rohit Sharma to feature in its ‘Yeh hai Youngistan Meri Jaan’-dumping cricket stars Dravid and Ganguly.
Meanwhile, Frito Lay, PepsiCo’s snack foods arm has revamped its retail strategy by offering 33% extra in all ‘Lays’ packs -- at no extra cost. “For ‘Kurkere, it is offering 20% extra. In fact, PepsiCo’s pricing strategy is quite effective in today’s price-sensitive markets,” said a leading retailer in Mumbai.
Some of Pepsi’s successful Advertising Campaign
Yeh Dil Maange More
Oye Bubbly
Yeh hai Youngistan meri Jaan
About Youngistaan Campaign
This campaign has two new celebrities Ranbir Kapoor and Deepika Padukone —who acted in the two most-talked about Hindi films in 2007, to accompany brand ambassador Shah Rukh Khan.
Ranbir confronts SRK while making a futile attempt at entering Deepika’s room to grab a Pepsi, Ranbir spots a poorly lit neon sign that reads ‘Young Hindustan Supermarket'. Due to the broken neon light, Ranbir spots just a few letters. When asked, where he has come from, Ranbir, based on this observation, replies, "Youngistaan".
“This time we wanted an all-encompassing theme. ‘Youngistan’ reflects the mood of India’s youth, which is today keen to take the ropes and drive India,” says Punita Lal, executive director, marketing, PepsiCo.
“Youngistan”, hopes to cash in on the buzz surrounding today’s youngsters.
Youngistan is not so much a place and it is a state of mind of today’s youth. “While the term is new, what it stands for – the GenNext attitude – is not new”.
STP-Segmenting, Targeting and Positioning of Youngistaan Campaign
Segmenting Pattern
Demographics
The campaign targets teens and young adults of metros and phase II cities.
Psychographics
The campaign attempts to capture the youth of today by focusing on their personality, lifestyle and attitude of youth through the advertisement.
Targeting Strategy
The Youngistaan Campaign uses undifferentiated targeting strategy to reach out to its target audience. That is it launched youngistaan campaign for all the target audience in the same way.
Positioning
• The campaign positioning is done on the basis of user approach i.e. a personality based approach where a user’s image or association rubs off on the brand image. The user could be a celebrity or an ordinary user.
• For this campaign Pepsi used the three most popular celebrities of the last year i.e. Shahrukh Khan, Ranbir Kapoor, Deepika Padukone.
Placement of “Youngistaan Campaign”
The campaign was first launched on T.V during the tri-series matches in February.
The campaign is launched with 360-degree activation across radio, outdoor, modern trade, and Web and wireless platforms.
Pepsi has launched a website for Youngistan inside the Pepsi Cool Zone and is planning to make it a responsive peer group site where youngsters can visit and make comments on any topic.
Pepsi Youngistan is also sponsoring ‘‘Wassup Youngistan” on MTV, a show where youth can voice their thoughts.
Advertising Agency of “Youngistaan Campaign”
JWT (J. Walter Thompson) is the advertising agency of Pepsi Youngistaan Campaign. The idea is fast climbing the popularity charts. The seed of ‘Youngistaan’ germinated through a recent TV campaign featuring the 'Saawariya' kid, Ranbir Kapoor, the present heart-throb of millions, Deepika Padukone, and the ever-so-smart and smashing SRK.
PepsiCo India Executive Vice-President, Marketing (Cola), Sandeep Singh Arora, while commenting on the new campaign said, "The new campaign targets the youth of the nation, not only youngsters but also people young at heart. ‘Youngistaan’ represents a never failing attitude, desire to take on challenges and the power to turn things around." 1
Expressing his opinion regarding the ‘Youngistaan’ concept, Hari Krishnan, Vice-President at JWT, said, "Youngistaan is a feeling that is racing through every youthful nerve in the country today. Brand Pepsi will simply tap this energy and help the youth express this emotion."
Competitors of Youngistaan
Competition for Pepsi has always come from its arch rival Coco-Cola. Coke kept up with Pepsi’s Youngistan by launching a campaign “Jashn Mana le” staring Hrithik Roshan.
Sprite, a subsidiary of Coco-Cola Company has also launched an ad campaign called “Hindustan”, mocking the Pepsi’s “Youngistan” campaign.
Rivalry of Pepsi & Coke
The facts are that each company is coming up with new products and ideas in order to increase their market share. The creativity and effectiveness of each company's marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty. Not only are these two companies constructing new ways to sell Coke and Pepsi, but they are also thinking of ways in which to increase market share in other beverage categories. Although the goals of both companies are exactly the same, the two companies rely on somewhat different marketing strategies.
Pepsi has always taken the lead in developing new products, but Coke soon learned their lesson and started to do the same. Coke hired marketing executives with good track records. Coke also implemented cross training of managers so it would be more difficult for cliques to form within the company. On the other hand, Pepsi has always taken more risks, acted rapidly, and was always developing new advertising ideas. Both companies have also relied on finding new markets, especially in foreign countries. In the foreign markets, Coke has been more successful than Pepsi.
Advertising Strategies of Pepsi & Coke
Both Pepsi and Coke known for global advertisement wars.
Both formulated their advertising plan on the basis of insiders they put inside the offices of each other.
PEPSI relied on advertisements featuring film stars, pop stars and cricket players while COKE initially focused on Indian culture and music.
Spoof Advertisements
When Coke bagged the official sponsorship rights to the 1997 World Cup, Pepsi launched a campaign “Nothing Official about It” against Coke.
After some time against Coke’s “Eat-Sleep-Drink”, Pepsi made an ad opposite to it.
To counter this, Coke made a print ad in which it shows “Chalo kha liya”.
Another Coke ad showed two apes copying Pepsi’s Azhar and Jadeja with the time “Don’t be a Bunder, Taste the Thunder”.
Coke launched a new variant in its product line, Sprite and made an ad “Baki all Bakwaas” which clearly targeted Pepsi.
Then later on Pepsi made an ad with Sachin having slogan “Sachin Aala Re”, Coke responded with song “Coke Aala Re”.
At that time endorsement of celebrities and cricketers were at peak.
Pepsi issued a notice against Coke for using “Yeh Dil Maange More” phrase used in the commercial.
S. No. Content Page
1 Advertising
2 Different types of Advertising
3 Advertising Strategy
4 Advertising Campaign
5 Indian Soft Drink Market
6 PepsiCo Mission
7 Corporate Profile
8 Organizational Values
9 Brand Image of Pepsi
10 SWOT Analysis of Pepsi
11 Products of Pepsi
12 Advertising Strategy of Pepsi
13 Pepsi’s Advertising Campaign
14 About Youngistan Campaign
15 STP Analysis of Youngistan Campaign
16 Advertising Agency of Youngistan Campaign
17 Competitors of Youngistan Campaign
18 Rivalry of Pepsi & Coke
19 Spoof Advertisements
20 Bibliography
Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.
Ads can be a cost effective way to disseminate messages, whether to build a brand preference or to educate people. Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service. Many advertisements are designed to generate increased consumption of those products and services through the creation and reinforcement of "brand image" and "brand loyalty". Advertising has long been viewed as a method of mass promotion in that a single message can reach a large number of people. But, this mass promotion approach presents problems since many exposed to an advertising message may not be within the marketer’s target market, and thus, may be an inefficient use of promotional funds. However, this is changing as new advertising technologies and the emergence of new media outlets offer more options for targeted advertising.
The 5 Ms of Advertising
Mission: What are the advertising objectives?
Money: How much can be spent?
Message: What message should be sent?
Media: What media should be used?
Measurement: How should the results is evaluated?
Different Types of Advertising
Advertising is the promotion of a company’s products and services carried out primarily to drive sales of the products and services but also to build a brand identity and communicate changes or new product /services to the customers. Advertising has become an essential element of the corporate world and hence the companies allot a considerable amount of revenues as their advertising budget. There are several reasons for advertising some of which are as follows:
• Increasing the sales of the product/service
• Creating and maintaining a brand identity or brand image.
• Communicating a change in the existing product line.
• Introduction of a new product or service.
• Increasing the buzz-value of the brand or the company.
Thus, several reasons for advertising and similarly there exist various media which can be effectively used for advertising. Based on these criteria there can be several branches of advertising. Mentioned below are the various categories or types of advertising:
Print Advertising – Newspapers, Magazines, Brochures, Fliers
The print media have always been a popular advertising medium. Advertising products via newspapers or magazines is a common practice. In addition to this, the print media also offers options like promotional brochures and fliers for advertising purposes. Often the newspapers and the magazines sell the advertising space according to the area occupied by the advertisement, the position of the advertisement (front page/middle page), as well as the readership of the publications. For instance an advertisement in a relatively new and less popular newspaper would cost far less than placing an advertisement in a popular newspaper with a high readership. The price of print ads also depend on the supplement in which they appear, for example an advertisement in the glossy supplement costs way higher than that in the newspaper supplement which uses a mediocre quality paper.
Outdoor Advertising – Billboards, Kiosks, Tradeshows and Events
Outdoor advertising is also a very popular form of advertising, which makes use of several tools and techniques to attract the customers outdoors. The most common examples of outdoor advertising are billboards, kiosks, and also several events and tradeshows organized by the company. The billboard advertising is very popular however has to be really terse and catchy in order to grab the attention of the passers by. The kiosks not only provide an easy outlet for the company products but also make for an effective advertising tool to promote the company’s products. Organizing several events or sponsoring them makes for an excellent advertising opportunity. The company can organize trade fairs, or even exhibitions for advertising their products. If not this, the company can organize several events that are closely associated with their field. For instance a company that manufactures sports utilities can sponsor a sports tournament to advertise its products.
Broadcast advertising – Television, Radio and the Internet
Broadcast advertising is a very popular advertising medium that constitutes of several branches like television, radio or the Internet. Television advertisements have been very popular ever since they have been introduced. The cost of television advertising often depends on the duration of the advertisement, the time of broadcast (prime time/peak time), and of course the popularity of the television channel on which the advertisement is going to be broadcasted. The radio might have lost its charm owing to the new age media however the radio remains to be the choice of small-scale advertisers. The radio jingles have been very popular advertising media and have a large impact on the audience, which is evident in the fact that many people still remember and enjoy the popular radio jingles.
Covert Advertising – Advertising in Movies
Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels like movies, television shows or even sports. There is no commercial in the entertainment but the brand or the product is subtly( or sometimes evidently) showcased in the entertainment show. Some of the famous examples for this sort of advertising have to be the appearance of brand Nokia which is displayed on Tom Cruise’s phone in the movie Minority Report, or the use of Cadillac cars in the movie Matrix Reloaded.
Surrogate Advertising – Advertising Indirectly
Surrogate advertising is prominently seen in cases where advertising a particular product is banned by law. Advertisement for products like cigarettes or alcohol which are injurious to heath are prohibited by law in several countries and hence these companies have to come up with several other products that might have the same brand name and indirectly remind people of the cigarettes or beer bottles of the same brand. Common examples include Fosters and Kingfisher beer brands, which are often seen to promote their brand with the help of surrogate advertising.
Public Service Advertising – Advertising for Social Causes
Public service advertising is a technique that makes use of advertising as an effective communication medium to convey socially relevant messaged about important matters and social welfare causes like AIDS, energy conservation, political integrity, deforestation, illiteracy, poverty and so on. David Oglivy who is considered to be one of the pioneers of advertising and marketing concepts had reportedly encouraged the use of advertising field for a social cause. Oglivy once said, "Advertising justifies its existence when used in the public interest - it is much too powerful a tool to use solely for commercial purposes.". Today public service advertising has been increasingly used in a non-commercial fashion in several countries across the world in order to promote various social causes. In USA, the radio and television stations are granted on the basis of a fixed amount of Public service advertisements aired by the channel.
Celebrity Advertising
Although the audience is getting smarter and smarter and the modern day consumer getting immune to the exaggerated claims made in a majority of advertisements, there exist a section of advertisers that still bank upon celebrities and their popularity for advertising their products. Using celebrities for advertising involves signing up celebrities for advertising campaigns, which consist of all sorts of advertising including, television ads or even print advertisements.
Advertising Strategy
An advertising strategy is a campaign developed to communicate ideas about products and services to potential consumers in the hopes of convincing them to buy those products and services. This strategy, when built in a rational and intelligent manner, will reflect other business considerations (overall budget, brand recognition efforts) and objectives (public image enhancement, market share growth) as well. Most advertising strategies focus on achieving three general goals, as the Small Business Administration indicated in Advertising Your Business:
1) promote awareness of a business and its product or services;
2) stimulate sales directly and "attract competitors' customers"; and
3) establish or modify a business' image.
In other words, advertising seeks to inform, persuade, and remind the consumer. With these aims in mind, most businesses follow a general process which ties advertising into the other promotional efforts and overall marketing objectives of the business.
Advertising Campaign
Whether your advertising budget is a million dollars a month or only a thousand dollars a year, you’ll waste that money if your ads aren’t effective. What makes ads effective? A combination of content and creativity.
Your ads need to give the consumer a good reason to act (the content), and they have to be unique enough in their design and copy to attract the consumer’s attention in the first place (the creativity). Countless forms of media expose consumers to so much advertising on a daily basis — some of it so subtle that consumers don’t even know they’re absorbing it — that generating advertising for your business is a real challenge. However, your task isn’t impossible — it just takes some serious thought.
An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). Advertising campaigns appear in different media across a specific time frame.
The critical part of making an advertising campaign is determining a campaign theme, as it sets the tone for the individual advertisements and other forms of marketing communications that will be used. The campaign theme is the central message that will be communicated in the promotional activities. The campaign themes are usually developed with the intention of being used for a substantial period but many of them are short lived due to factors such as being ineffective or market conditions and/or competition in the marketplace and marketing mix.
Indian Soft Drink Market
Soft drink market size for FY00 was around 270 m.n cases (6480mn bottles). The market witnessed 5- 6% growth in the early‘90s. Presently the market growth has growth rate of 7- 8% per annum compared to 22% growth rate in the previous year. The market size for FY01 is expected to be 7000 mn bottles.
The Indian soft drink market is primarily ruled by two multinationals. While there are some regional players of repute, none have been able to expand their presence to the national level. Knowledge of the key attributes that drives the target customer will help these players to understand what makes the multinationals successful and how to design their product offerings so as to take compete with the established product of these multinationals. The Indian soft drink markets are divided into two parts:
1. Carbonated Soft Drink
2. Non-Carbonated Soft Drink
PepsiCo Mission
"To be the world's premier consumer Products Company focused on convenience foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity."
Corporate Profile
PepsiCo in India
PepsiCo entered India in 1989 and has grown to become one of the country’s leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.
PepsiCo India and its partners have invested more than U.S.$700 million since the company was established in the country. PepsiCo provides direct employment to 4,000 people and indirect employment to 60,000 people including suppliers and distributors.
PepsiCo nourishes consumers with a range of products from treats to healthy eats, that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.
PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets.
The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.
Organizational Values
Our Commitment
Our values reflect our aspirations - the kind of company we want Pepsico to be. We express our values in the form of a commitment. Our commitment is :
Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained growth stimulates innovation, places a value on results, and helps us understand whether today's actions will contribute to our future. It is about growth of people and company performance. It prioritizes making a difference and getting things done.
Empowered People means we have the freedom to act and think in ways that we feel will get the job done, while being consistent with the processes that ensure proper governance and being mindful of the rest of the company's needs.
Responsibility and Trust form the foundation for healthy growth. It's about earning the confidence that other people place in us as individuals and as a company. Our responsibility means we take personal and corporate ownership for all we do, to be good stewards of the resources entrusted to us. We build trust between ourselves and others by walking the talk and being committed to succeeding together.
Guiding Principles
This is how we carry out our commitment. We must always strive to:
Care for customers, consumers and the world we live in. We are driven by an intense, competitive spirit in the marketplace, but we direct this spirit toward solutions that achieve a win for each of our constituents as well as a win for the corporation. Our success depends on a thorough understanding of our customers, consumers and communities. Caring means going the extra mile. Essentially, this is a spirit of growing rather than taking.
Sell only products we can be proud of. The test of our standards is that we must be able to personally endorse our products without reservation and consume them ourselves. This principle extends to every part of the business, from the purchasing of ingredients to the point where our products reach the consumer's hands.
Speak with truth and candor. We speak up, telling the whole picture, not just what is convenient to achieving individual goals. In addition to being clear, honest and accurate, we take responsibility to ensure our communications are understood.
Balance short term and long term. We make decisions that hold both short-term and long-term risks and benefits in balance over time. Without this balance, we cannot achieve the goal of sustainable growth.
Win with diversity and inclusion. We leverage a work environment that embraces people with diverse backgrounds, traits and different ways of thinking. This leads to innovation, the ability to identify new market opportunities, all of which helps develop new products and drives our ability to sustain our commitments to growth through empowered people.
Respect others and succeed together. This company is built on individual excellence and personal accountability, but no one can achieve our goals by acting alone. We need great people who also have the capability of working together, whether in structured teams or informal collaboration. Mutual success is absolutely dependent on treating everyone who touches the business with respect, inside and outside the company. A spirit of fun, our respect for others and the value we put on teamwork make us a company people enjoy being part of, and this enables us to deliver world-class performance.
Brand Image of Pepsi
Pepsi is a Brand that every youngster relates to but this definitely doesn’t mean that other age groups are not its user. Target market of Pepsi is basically youngster but it is preferred by every age group. Thus Pepsi’s brand image is its hip, cool, lively and refreshing attitude.
SWOT Analysis of Pepsi
Strength
Pepsi has a broader product line and outstanding reputation.
Merger of Quaker Oats produced synergy across the board.
Record revenues and increasing market share.
Great brands, strong distribution, innovative capabilities.
Number one maker of snacks, such as corn chips and potato chips.
PepsiCo sells three products through the same distribution channel.
For example, combining the production capabilities of Pepsi, Gatorade and Tropicana is a big opportunity to reduce costs, improve efficiency and smooth out the impact of seasonal fluctuations in demand for particular product.
Weakness
Pepsi hard to inspire vision and direction for large global company.
Not all PepsiCo products bear the company name.
PepsiCo is far away from leader Coca-cola in the international market - demand is highly elastic.
Opportunity
Food division should expand internationally.
Noncarbonated drinks are the fastest-growing part of the industry.
There are increasing trend toward healthy foods.
Focus on most important customer trend - "Convenience".
Threats
F&B industry is mature.
Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market e.g. in India.
Over 50 percent of the company's sales come from Frito-Lay; this is a threat if the market takes a downturn.
PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft foods (because of broader product line) which are well-run and financially sound competitors.
Size of company will demand a varied marketing program; Social, cultural, economic, political and governmental constrains.
Products of Pepsi
Advertising Strategy of Pepsi
• Pepsi’s target audiences are mostly teens and young adults and their advertising reflects this in every possible way.
• The company changes its advertising strategy and image to reflect the target's interests.
• Pepsi makes sure that the advertisements reflect to the target audience’s interests and nostalgia.
• The advertising strategy includes cool, hip promos to attract more of the target audience.
• The advertising is mostly creative and has different elements like music and sports other than bollywood.
• Pepsi.com also plays an important role in advertising and attracts target audience by giving access to options like downloads, gaming, music mixing applications etc.
Pepsi Gears up for Fresh Advertising Strategy
With the swinging fortunes of cricket stars, PepsiCo India is gearing up to launch a brand new advertising campaign for Pepsi with out any star endorsers. Currently, PepsiCo India has twelve star endorsers from Bollywood and the Indian cricket team.
“Pepsi’s new campaign will be a consumer–centric advertising campaign without any celebrities,” informed industry sources. ‘Celebrities may come and go but brands are forever,’ seems to be PepsiCo’s new motto.
Incidentally, PepsiCo has not yet renewed Sachin Tendulkar’s contract which expired in May this year. According to industry sources, PepsiCo is now shifting its marketing focus to MS Dhoni, the highest paid IPL player. “The company will bring in MS Dhoni to the centre space from side lines. Of course, PepsiCo will make Dhoni wear some decent clothes to erase his Lungi-clad image,” said Prahlad Kakar, a leading ad film maker in Mumbai. Remember Pepsi’ ads featuring Dhoni, captain of the Chennai Super Kings team?
Enthused by the response to Dhoni’s ‘Mind it’ ads, the company will now project Dhoni as its brand icon in the next few months, predict industry analysts. “Young cine stars Deepika Padukone and Ranbir Kapoor now star in Pepsi Youngistan campaign. Very soon, we may see Dhoni sharing the screen space with Shar Rukh Khan in Pepsi ads,” added analysts.When contacted by FE, PepsiCo India declined to comment on its advertising plans.
On PepsiCo’s shift in strategy, Ramesh Narayan, veteran advertising professional based in Mumbai said: “I think every brand needs to keep in mind its profile. And Pepsi has always stood for the youth. I do not think it is any comment on Tendulkar as a player but they need to refresh their stable of sports person with younger people.” In sync with its new strategy, PepsiCo has roped in Ishant Sharma and Rohit Sharma to feature in its ‘Yeh hai Youngistan Meri Jaan’-dumping cricket stars Dravid and Ganguly.
Meanwhile, Frito Lay, PepsiCo’s snack foods arm has revamped its retail strategy by offering 33% extra in all ‘Lays’ packs -- at no extra cost. “For ‘Kurkere, it is offering 20% extra. In fact, PepsiCo’s pricing strategy is quite effective in today’s price-sensitive markets,” said a leading retailer in Mumbai.
Some of Pepsi’s successful Advertising Campaign
Yeh Dil Maange More
Oye Bubbly
Yeh hai Youngistan meri Jaan
About Youngistaan Campaign
This campaign has two new celebrities Ranbir Kapoor and Deepika Padukone —who acted in the two most-talked about Hindi films in 2007, to accompany brand ambassador Shah Rukh Khan.
Ranbir confronts SRK while making a futile attempt at entering Deepika’s room to grab a Pepsi, Ranbir spots a poorly lit neon sign that reads ‘Young Hindustan Supermarket'. Due to the broken neon light, Ranbir spots just a few letters. When asked, where he has come from, Ranbir, based on this observation, replies, "Youngistaan".
“This time we wanted an all-encompassing theme. ‘Youngistan’ reflects the mood of India’s youth, which is today keen to take the ropes and drive India,” says Punita Lal, executive director, marketing, PepsiCo.
“Youngistan”, hopes to cash in on the buzz surrounding today’s youngsters.
Youngistan is not so much a place and it is a state of mind of today’s youth. “While the term is new, what it stands for – the GenNext attitude – is not new”.
STP-Segmenting, Targeting and Positioning of Youngistaan Campaign
Segmenting Pattern
Demographics
The campaign targets teens and young adults of metros and phase II cities.
Psychographics
The campaign attempts to capture the youth of today by focusing on their personality, lifestyle and attitude of youth through the advertisement.
Targeting Strategy
The Youngistaan Campaign uses undifferentiated targeting strategy to reach out to its target audience. That is it launched youngistaan campaign for all the target audience in the same way.
Positioning
• The campaign positioning is done on the basis of user approach i.e. a personality based approach where a user’s image or association rubs off on the brand image. The user could be a celebrity or an ordinary user.
• For this campaign Pepsi used the three most popular celebrities of the last year i.e. Shahrukh Khan, Ranbir Kapoor, Deepika Padukone.
Placement of “Youngistaan Campaign”
The campaign was first launched on T.V during the tri-series matches in February.
The campaign is launched with 360-degree activation across radio, outdoor, modern trade, and Web and wireless platforms.
Pepsi has launched a website for Youngistan inside the Pepsi Cool Zone and is planning to make it a responsive peer group site where youngsters can visit and make comments on any topic.
Pepsi Youngistan is also sponsoring ‘‘Wassup Youngistan” on MTV, a show where youth can voice their thoughts.
Advertising Agency of “Youngistaan Campaign”
JWT (J. Walter Thompson) is the advertising agency of Pepsi Youngistaan Campaign. The idea is fast climbing the popularity charts. The seed of ‘Youngistaan’ germinated through a recent TV campaign featuring the 'Saawariya' kid, Ranbir Kapoor, the present heart-throb of millions, Deepika Padukone, and the ever-so-smart and smashing SRK.
PepsiCo India Executive Vice-President, Marketing (Cola), Sandeep Singh Arora, while commenting on the new campaign said, "The new campaign targets the youth of the nation, not only youngsters but also people young at heart. ‘Youngistaan’ represents a never failing attitude, desire to take on challenges and the power to turn things around." 1
Expressing his opinion regarding the ‘Youngistaan’ concept, Hari Krishnan, Vice-President at JWT, said, "Youngistaan is a feeling that is racing through every youthful nerve in the country today. Brand Pepsi will simply tap this energy and help the youth express this emotion."
Competitors of Youngistaan
Competition for Pepsi has always come from its arch rival Coco-Cola. Coke kept up with Pepsi’s Youngistan by launching a campaign “Jashn Mana le” staring Hrithik Roshan.
Sprite, a subsidiary of Coco-Cola Company has also launched an ad campaign called “Hindustan”, mocking the Pepsi’s “Youngistan” campaign.
Rivalry of Pepsi & Coke
The facts are that each company is coming up with new products and ideas in order to increase their market share. The creativity and effectiveness of each company's marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty. Not only are these two companies constructing new ways to sell Coke and Pepsi, but they are also thinking of ways in which to increase market share in other beverage categories. Although the goals of both companies are exactly the same, the two companies rely on somewhat different marketing strategies.
Pepsi has always taken the lead in developing new products, but Coke soon learned their lesson and started to do the same. Coke hired marketing executives with good track records. Coke also implemented cross training of managers so it would be more difficult for cliques to form within the company. On the other hand, Pepsi has always taken more risks, acted rapidly, and was always developing new advertising ideas. Both companies have also relied on finding new markets, especially in foreign countries. In the foreign markets, Coke has been more successful than Pepsi.
Advertising Strategies of Pepsi & Coke
Both Pepsi and Coke known for global advertisement wars.
Both formulated their advertising plan on the basis of insiders they put inside the offices of each other.
PEPSI relied on advertisements featuring film stars, pop stars and cricket players while COKE initially focused on Indian culture and music.
Spoof Advertisements
When Coke bagged the official sponsorship rights to the 1997 World Cup, Pepsi launched a campaign “Nothing Official about It” against Coke.
After some time against Coke’s “Eat-Sleep-Drink”, Pepsi made an ad opposite to it.
To counter this, Coke made a print ad in which it shows “Chalo kha liya”.
Another Coke ad showed two apes copying Pepsi’s Azhar and Jadeja with the time “Don’t be a Bunder, Taste the Thunder”.
Coke launched a new variant in its product line, Sprite and made an ad “Baki all Bakwaas” which clearly targeted Pepsi.
Then later on Pepsi made an ad with Sachin having slogan “Sachin Aala Re”, Coke responded with song “Coke Aala Re”.
At that time endorsement of celebrities and cricketers were at peak.
Pepsi issued a notice against Coke for using “Yeh Dil Maange More” phrase used in the commercial.
