Final Pepsi

7/31/2019 Final Pepsi

1/14

Page | 1

[Chapter # One]

[Introduction Part]


2/14

Page | 2

1.0INTRODUCTION

Globalization has been the battle cry of the last decennium of the 20th century. This phenomenon

is not new or unique to this period. The process has only been given an added impetus by thepolitical, technological and economic developments that have been unique to the last ten years of

the century. The demise of communism, the ICT revolution, the liberalization of trade are only

few of the driving forces of this latest round of intensified globalization. The effect that this

globalization has had on brands has been spectacular. New brands are seemingly born global, or

at the very least experience a quick rollout from home or lead countries into other markets. Many

traditionally local brands are sold, fazed-out or face transition to a new regional or global brand

name and subsequent harmonization. Brand portfolios, which have been built-up through

decennia of acquisitions, are rationalized in order to focus attention and resources on a limited

number of strategic brands. Long established brands have enhanced their dominant positions

across the globe, threatening less marketing-savvy local brands, but also encountering stern

opposition from local brands that find ways to fight back. Some of the global brands manage to

become local institutions by filling a local role in the societies where they operate, while others

dominate their category as global monoliths. Debates have also flared over the supposed

supremacy of global brands and the inadequacy of (multi-)local brands. This paper argues that

this viewpoint is incorrect and that the each individual global or international brand has specific

opportunities and limitations when it comes to standardization or localization. Only a thorough

understanding of a variety of factors that influence brands in their global and local contexts helps

determine the best course for them. Therefore, this paper concerns those involved in global and

local brand management, as well as managers of local brands who often struggle with global

competition. We introduce four general brand strategies and examine the internal and external

factors that influence these strategies as a brand extends across multiple societies. The general

strategies themselves consist of a total of more than 20 strategy subtypes. A discussion of thesestrategy subtypes exceeds the limitations of this paper. Suffice it to say that each requires its own

particular capabilities and competencies, each has its particular competitive advantages, and each

offers consumers some distinct appeal. The author is currently writing a study that examines

these strategy sub-types. The purpose of this paper is to offer a fresh perspective on global brand

strategy and management without attempting to be exhaustive.


3/14

Page | 3

1.1ORIGIN OF THE REPORT

This report is originated by Md. Moniruzzaman, Lecturer, Faculty of Business administration,

Eastern University, the course instructor of Marketing Management, in order to find out theBranding system regarding the Unilever.

1.2OBJECTIVES OF THE REPORT

Study or working on any subject must have objective. It may be only one objective or a

combination of some objectives. My study also have objective. Before submitting the report I

need to discuss briefly my Broad Objective and related Specific Objectives.

1.2.1BROAD OBJECTIVE:

The main objective of this report is to know The Global Brand of Pepsi Cola A Case Analysis

on Global Brand Management. From this report we are able to know the Branding of Pepsi

Cola and their perception regarding Global Brand Management.

1.2.2SPECIFIC OBJECTIVES OF THE STUDY ARE AS


4/14

Page | 4

1.3METHODOLOGY

Information used in this report has been collected from both primary and secondary sources.

Primary data were collected mainly through the Observation.

Majority of the information were collected from the secondary sources, For secondary source,

we use internet, books, publications, reading materials and various circulars and reports

published by Pepsi Cola.

1.4LIMITATION

When I developed this report, then I had to face some problems, which disrupted the fulfillment

of this report. There were several constrains while preparing this report. There have not to

sufficient time. I faced a number of problems, which may be termed as the limitations of thestudy. These are as follows:

I could not spend sufficient time required to make an in-depth study on such an important

subject because of another course.

There is no sufficient informative information.

They did not give us exact information for maintaining their secrecy.

Sufficient records, publications were not available. The constraints narrowed the scope of

real analysis.Last but not least lack of time has also limited the scope for the report work.


5/14

Page | 5

2.0ABOUT GLOBAL BRAND

Global brand management needs to understand how various marketscompare on these issues in order to determine how best to manage thebrand globally. Determining communalities and differences in business

strategy, brand expression and marketing provides insight into the extentto which the organizations policies and activities regarding the branddiverge, as well as the causes and rationale for divergence. Doing the samefor the situational factors, the brand perception and the brand recognitionprovides an understanding of the extent to which the brand is perceiveddifferently across markets, and what causes these differences. A completeanalysis offers brand management an appreciation of the core elements ofthe brand, as expressed and perceived around the world. This type ofinformation forms the basis for shared strategizing and planning for thebranding process by global, regional and local brand management.Decisions regarding brand extensions, harmonization, rejuvenation, portfoliorationalization, alliances and acquisitions depend on a thorough

understanding of a brand and its environment.

[CHAPTER TWO]

[Project Part]


6/14

Page | 6

2.0ABOUT GLOBAL BRAND

Globalization has been the battle cry of the last decennium of the 20th century. This phenomenon

is not new or unique to this period. The process has only been given an added impetus by thepolitical, technological and economic developments that have been unique to the last ten years of

the century. The demise of communism, the ICT revolution, the liberalization of trade are only

few of the driving forces of this latest round of intensified globalization. The effect that this

globalization has had on brands has been spectacular. New brands are seemingly born global, or

at the very least experience a quick rollout from home or lead countries into other markets. Many

traditionally local brands are sold, fazed-out or face transition to a new regional or global brand

name and subsequent harmonization. Brand portfolios, which have been built-up through

decennia of acquisitions, are rationalized in order to focus attention and resources on a limited

number of strategic brands. Long established brands have enhanced their dominant positions

across the globe, threatening less marketing-savvy local brands, but also encountering stern

opposition from local brands that find ways to fight back. Some of the global brands manage to

become local institutions by filling a local role in the societies where they operate, while others

dominate their category as global monoliths. Debates have also flared over the supposed

supremacy of global brands and the inadequacy of (multi-)local brands. This paper argues that

this viewpoint is incorrect and that the each individual global or international brand has specific

opportunities and limitations when it comes to standardization or localization. Only a thorough

understanding of a variety of factors that influence brands in their global and local contexts helps

determine the best course for them. Therefore, this paper concerns those involved in global and

local brand management, as well as managers of local brands who often struggle with global

competition.

Global brand management needs to understand how various markets compare on these issues inorder to determine how best to manage the brand globally. Determining communalities and

differences in business strategy, brand expression and marketing provides insight into the extent

to which the organizations policies and activities regarding the brand diverge, as well as the

causes and rationale for divergence. Doing the same for the situational factors, the brand

perception and the brand recognition provides an understanding of the extent to which the brand


7/14

Page | 7

is perceived differently across markets, and what causes these differences. A complete analysis

offers brand management an appreciation of the core elements of the brand, as expressed and

perceived around the world. This type of information forms the basis for shared strategizing and

planning for the branding process by global, regional and local brand management. Decisions

regarding brand extensions, harmonization, rejuvenation, portfolio rationalization, alliances and

acquisitions depend on a thorough understanding of a brand and its environment.

2.1GENERAL BRAND STRATEGIES

Brand strategy is aimed at influencingpeoples perception of a brand in such a way that they are

persuaded to act in a certain manner, e.g. buy and use the products and services offered by the

brand, purchase these at higher price points, donate to a cause. In addition, most brand strategies

aim to persuade people to buy, use, and donate again by offering them some form of gratifying

experience. As branding is typically an activity that is undertaken in a competitive environment,

the aim is also to persuade people to prefer the brand to competition. A global brand needs to

provide relevant meaning and experience to people across multiple societies. To do so, the brand

Strategy needs to be devised that takes account of the brands own capabilities and

competencies, the strategies of competing brands, and the outlook of consumers (including

business decision makers) which has been largely formed by experiences in their respectivesocieties. There are four broad brand strategy areas that can be employed.

(1)Brand Domain.Brand domain specialists are experts in one or more of the brand domain aspects

(products/services, media, distribution, solutions). A brand domain specialist tries to pre-empt or

even dictate particular domain developments. This requires an intimate knowledge, not only of

the technologies shaping the brand domain, but also of pertinent consumer behavior and needs.

The lifeblood of a brand domain specialist is innovation and creative use of its resources. A

brand domain specialist is like a cheetah in the Serengeti preying on impala and gazelle. The

cheetah is a specialist hunter with superior speed to chase, and the claws and teeth to kill these

animals. The cheetah is also very familiar with the habits of its prey. It finds ways of

approaching, singling out and capturing its prey. The cheetah is one of the most accomplished of


8/14

Page | 8

hunters within the wild cat species; it catches up to 70% of prey that it hunts.

(2)Brand Reputation.Brand reputation specialists use or develop specific traits of their brands to support their

authenticity, credibility or reliability over and above competitors. A brand reputation specialist

needs to have some kind of history, legacy or mythology. It also needs to be able to narrate these

in a convincing manner, and be able to live up to the resulting reputation. A brand reputation

specialist has to have a very good understanding of which stories will convince consumers that

the brand is in some way superior. A brand reputation specialist is like a horse. It can be pure

bred, have a certain nobility and bearing, and exhibit qualities that can be traced back to these

(e.g. grace, speed, temperament, looks). Like a horse, the brand reputation specialist can also

thrive on association with celebrities.

(3)Brand Affinity.Brand affinity specialists bond with consumers based on one or more of a range of affinity

aspects. A brand affinity specialist needs to outperform competition in terms of building

relationships with consumers. This means that a brand affinity specialist needs to have a distinct

appeal to consumers, be able to communicate with them affectively, and provide an experience

that reinforces the bonding process. A brand affinity specialist is like a pet dog. A dog is

generally considered to be mans best friend, due to its affection, its obedience, its loyalty, the

status and the protection it provides to its owners. Different kinds of dogs will command a

different form of affection.

(4)Brand Recognition.Brand recognition specialists distinguish themselves from competition by raising their profiles

among consumers. The brand recognition specialist either convinces consumers that it is

somehow different from competition, as is the case for niche brands, or rises above the melee by

becoming more well known among consumers than competition. The latter is particularly

important in categories where brands have few distinguishing features in the minds of

consumers. In some cases, a brand recognition specialist needs to be able to outspend


9/14

Page | 9

competition to gain unbeatable levels of awareness. In other cases, a brand recognition specialist

needs to convince a loyal following of consumers that it is unique.

2.2THE BRAND ENVIRONMENT

More factors influence a brand than the business strategy and the subsequent efforts of the

organization and its affiliates to bring about the brand, as described in the previous paragraph. A

brand operates in an environment consisting of, on the one hand, the elements of the strategic

planning cycle, and on the other hand, organizational conventions, competitive forces, market

structures, cultural factors, consumer motivation and media attention: the lenses and filters

through which consumers perceive and experience the brand. These factors combined constitute

the brand environment. A brand operates in a space that is defined by its own company or

organization, its competitors, and the societies where it operates. There are both internal and

external factors that influence how a brand is finally perceived and experienced by consumers.

2.2.1INTERNAL ENVIRONMENT/FACTORSFactors that are internal to a brands company or organization can be categorized as being

strategy-related, performance-related and stemming from the brands past. The strategy-related

factors are those that derive from the business strategy and the marketing strategy. There is a

strategy hierarchy, whereby business strategy takes the lead, guiding brand strategy. Brand

strategy in its turn guides marketing strategy.

2.2.2EXTERNAL ENVIRONMENT/FACTORS

External influences upon a brand strategy come mainly from three quarters: competition,

consumers and media. These external influences will vary between the markets and societies

where a brand operates. Therefore, these influences need to be determined locally. When a brand

is introduced into a foreign society, it will encounter particular brand strategies that are being

practiced by competitive brands. Unless competitors are very complacent, head-on

confrontations with them are generally not the best way of winning the hearts and minds of

consumers. It is, therefore, important to determine competitors. Brand strategies and to find ways

of flanking established competition by choosing an alternative strategy.


10/14

Page | 10

[CHAPTER THREE]

[Study Part]


11/14

Page | 11

3.0HISTORY OF PEPSI COLA

In 1893 Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins

experimenting with many different soft drinks. In 1898, one of Caleb's formulations,

known as "Brad's Drink" a combination of carbonated water, sugar, vanilla, rare oilsand cola nuts, is renamed "Pepsi-Cola". On August 28, 1898, Pepsi-Cola received its

first logo. In 1902, he applied for a trademark with the U.S. Patent Office,

Washington D.C., and formed the first Pepsi-Cola Company. 1905, Pepsi-Cola's first

bottling franchises were established in Charlotte and Durham, North Carolina. In

1906, Pepsi gets another logo change, the third in eight years. The modified script logo is

created with the slogan, "The Original Pure Food Drink". In 1920, Pepsi theme line

speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you". In 1923,

P e ps i -C o la C o mp a n y w a s d e c la r ed b a n k r u p t a n d i t s a s s e t s w e r e s o l d t o

a N o r t h C a ro l i n a c o n c e rn , C r a v e n Ho l d i n g Corporation, for $30,000.

3.1FORMATION OF PEPSI COLA CORPORATION

Roy C. Megargel, a Wall Street broker, bought the Pepsi trademark, business and

goodwill from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation.

In 1928, after five continuous losing years, Megargel reorganized his company asthe National Pepsi-Cola Company. In 1931, U.S. District Court for Eastern District Virginia

declared the National Pepsi-Cola Company bankrupt, the second bankruptcy in

Pepsi-Cola history.

3.2REFORMULATION OF PEPSI COLAS SYRUP FORMULATION

The Loft candy company acquired the National Pepsi-Cola Company. Charles G.

Guth, president of Loft, assumed leadership of Pepsi and commanded thereformulation of Pepsi-Cola syrup formula.1934 was a landmark year for Pepsi-Cola. The

drink was a hit and to attract even more sales, the company began selling its 12-ounce drink for

five cents (the same cost as six ounces of competitive colas). The 12-ounce bottle debuted in

Bal t imore , where i t was an ins tant success . The cos t savings proved

ir re si st ib le to Depression-worn Americans and sales skyrocket nationally. In 1941,


12/14

Page | 12

The New York Stock Exchange traded Pepsi's stock for the first time. In 1964, Diet Pepsi,

America's first nati ona l d iet soft drin k, deb uted . Peps i- Col a acq uire d Moun tain

Dew from the Tip Corporation in 1964.

3.3FORMATION OF PEPSI COLA INCORPORATION

In 1965, Expansion outside the soft drink industry began. Frito-Lay of Dallas, Texas, and Pepsi-

Cola merged, forming PepsiCo, Inc. Pepsi Cola Company operates in beverages

industry. Pepsi Cola international is well reputed multinational company which is doing its

business in almost every country of the world. The company is registered in New York stock

exchange U.S.A. to make a better control over the business the company has given the

manufacturing rights to different companies. Now these companies are producing the products

on the behalf of the company by using companys trademark. To maintain theirgoodwill in the

market the company has a strict policy of granting manufacturing rights. Pepsi Cola have

standardized products all over the world (e.g. same in size, shape and quality). The

franchises have to follow all the standards given by the company.

3.4SETUP OF PEPSI COLA

The head of f i ce i s s i tua ted in New York (USA) wi th uni t s opera t ing in

di f f erent r eg ions of the wor ld . These are ca l l ed Bus iness Uni t s and Paki s tan

i s in MEN APak (Middle E a s t , N o r t h A m e r i c a a n d P a k i s t a n ) . T h e

h e a d o f f i c e o f MENAPak is s ituated in Dubai (UAE). The local head offices for

each country are situated in the respective capitals.

3.5PEPSI COLA MULTAN

Pepsi Multan was incorporated in 1963 but it started its production in 1967. Allah Nawaz K h a n

T a r e e n ( R e t . D I G ) g o t l i c e n s e o f 7 - U P . B u t i n 1 9 7 3 , i t b e c a m e P e p s i

Colafranchise. Now a day MD of Pepsi Cola Multan is Alamgeer Khan Tareen son

of Allah Nawaz Khan Tareen. At start Pepsi Multan was having only one production plant

made by Netherlands. and was only producing 7-Up because it was the only brand produced by

Parent Company. In 1973, PEPSI acqui red 7-Up in Canada so the Mul tan


13/14

Page | 13

franchise started producing PEPSI and Marinda along with 7-Up & became PEPSI franchise.

Coke was already operating in the market at the time when Pepsi Multan established. At that

time Coke was market leader but with the passage of time Pepsi Multan kept on

focusing on gaining the market share. Recently Pepsi has launched a new brand with the name

of Mounta in Dew. Now Peps i Mul tan i s working wi th f ive product ion p lant s

capable of producing 100,000 cases per day. Installation arrangements for two new plants are in

process. The plant which was installed at the time of establishment has now been

grounded. Pepsi Multan is currently market leader with more than 80% of market share. The

company is properly serving all these areas with quality products. PEPSI Multan

i snot an ISO cer t i f i ed company because i t i s an in terna t ional dr ink having

thei r own standards and there is no export.

3.6MISSION OF THE COMPANY

We aspire to make Pepsi Company the worlds premier consumer Products

Company, focused on convenient beverages. We seek to produce healthy

financial rewards for 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 to act with honesty, openness, fairness and integrity

3.7MAJOR COMPETITOR

Pepsi Cola major competitor is Coca Cola in all over the world,

About Coca Cola:

3.7.1 Mission

Mission of Coca Cola international is From our heritage to our mission to the people

who bring our products to thirsty consumers, the Coca Cola is a part of lives every

where. In order to achieve this mission, we must create value for all the constituents. We serve,

including our consumers, our customers, our bottlers and our communities.


14/14

Page | 14

3.7.2 Objective

Objective of our bus iness s t r a tegy are to increase volume, expand our share

worldwide nonalcoholic ready-to-drink beverage sales, maximize our long term cash

flows and create economic value added by improving economic profit.

The Coca Cola Company creates value by executing a comprehensive business

strategy guided by six key beliefs;

(1)Consumer Demand drives everything we do.(2)Brand Coca Cola is the core of our business(3)

We wil l serv e consu mers a bro ad selec t ion of th e n onalco hol ic readyto drink beverage they want to drink throughout the day.

(4)We will be best marketers in the World.(5)We will think globally and act Locally.(6)We will lead as a model corporate citizen

Date post:	05-Apr-2018
Category:	Documents
Upload:	amit-mallik
View:	227 times
Download:	0 times

Final Pepsi

Documents