Pepsi is a
carbonated soft drink manufactured by PepsiCo. It was developed in 1893 and was
introduced as Brad’s Drink. Then it was renamed as Pepsi-Cola and then as Pepsi
in 1961. It was renamed Pepsi Cola in 1898 because of the ingredients
and also to include the root of the word ‘dyspepsia’. Kola nuts were used to
create this soft drink. The original recipe included vanilla and sugar. The
creator initially thought to create a fountain drink which was appealing and
would help in digestion and boost energy. The patent for Pepsi described it as a flavouring syrup for soda water. In
2014, the 1940 wordmark was used again, and the then watermark on almost all
the cans was replaced. After
years of substantial changes and modifications, PepsiCo secured a position
among the top three soft drink brands in India. Pepsi was ranked the first on
CoreBrand’s list of Most Respected Companies in the year 2013. This company was
also ranked 41 on the Fortune 500 list, in 2012.
There are some variations of Pepsi
which has been developed over the years.
In different continents, there may be different variants of Pepsi. Most common
variants of Pepsi are being discussed
below. Primarily it can be classified in two primary
product type – Normal soda variant and diet variant.
Soda Variants – This includes
variants such as Pepsi Free, Pepsi Wild Cherry, Crystal Pepsi, Pepsi Candy, Pepsi Natural, Pepsi Fresh, Pepsi X, Pepsi
Blue, Pepsi Gold, Pepsi Kona, Lemon Pepsi, Pepsi Lime, Pepsi Summer Mix,
Pepsi Freeze, Pepsi Vanilla etc.
Diet Variants – This includes names
like Diet Pepsi, Diet Crystal Pepsi, Diet Pepsi Free, Pepsi Jazz, Diet Pepsi
Light, Diet Pepsi Lime, Pepsi Twist Zero, Pepsi Black etc.
Based on different pack size (20 fl oz, eight fl oz, 67 fl oz etc.) there are many other SKUs of Pepsi as seen on the product website. There are many other forms such as fountain, cans etc.
Whenever an opportunity came, Pepsi tried to capitalise on it. Based on new or existing
market, it tried to introduce existing products or launching new products whenever necessary. Although all the
strategies were not successful, it shows
that Pepsi is willing to expand its reach whenever it is necessary.
Market, New Product (Product Development):
into a competitive soft drink industry, by introducing its many SKU/ brand
variants, according to different consumer tastes.
Product, Existing Market (Market Penetration or Expansion):
introduced its diet variant before Pepsi did. Hence, to counter that, Pepsi had
to introduce its diet variant in the market. Gradually it captured fair market share from its competitors.
Market, Existing Product (Diversification):
to create a niche and unique market by introducing a new flavour of soft drinks. It tried to introduce coffee flavour
with its soft drinks, but apparently coffee did not mix well with the taste of
fizzy cold drinks. Gradually this attempt to introduce Pepsi Cappuccino failed.
Product, New Market (Market Development):
tried to capture an entirely new segment
of customers by introducing new products in the world cup season. Paired with the bleed blue advertisements, the
products were sold off quickly.
name, Pepsi, is based on one of the original ingredients, pepsin, a digestive
aid. However, currently, Pepsin is no longer a component of the soft drink.
Similarly, cola leaves are no longer an ingredient in Coca-Cola. Pepsi was
first marketed as a tonic when it was first introduced. Pepsi was initially
marketed as a cure for stomach-aches or dyspepsia. This
name indicates a strong association of drinking Pepsi after having a heavy
meal, to help in digestion.
Globe is one of the most recognisable icon and logo, in the soft drink industry.
It is called globe because “red, white, & blue” stripes are
present in a spherical shape. It is considered one of the world’s most recognisable
corporate trademarks. The organisations= used the idea of the “golden ratio”
when designing the coveted brand logo. The golden ratio can be defined when the
ratio of two quantities, equals their sum to the two of the larger quantities. The
colour palette used by the Arnell group was also strategically used for each
type of Pepsi. Each colour used is associated with a psychological and
emotional value which is strongly associated with the consumers and should
influence their purchasing pattern. The original Pepsi is predominantly a dark
royal blue colour which represents coolness in the society. Pepsi Max flaunts a
lighter blue colour which represents a “cool and fresh” look. The Caffeine Free
Pepsi is a yellowish gold colour which represents balance and energy. The Diet
Pepsi is a grey silver colour and represents “cool, rich, and fresh”. The
Caffeine Free Diet Pepsi is a white colour and, similar to Diet Pepsi
represents “cool, light, and fresh”.
There have been quite a few slogans. Over the years, it chose a slogan to connect with the consumers on different dimensions. Initially, it started with the belief that the drink was healthy,
nutritious and refreshing. Earlier slogans echoed the mentality. E.g. 1908 – Delicious and Healthful, 1932 – Sparkling, Delicious.
Then came the Great
Depression. The rough economic times led to design new slogan. Slogans were
designed to indicate a value for money
products. 1934 – Twice as Much for a
Nickel. 1943 – Bigger Drink,
Gradually, they shifted
towards health. In the 1950s, the slogans focused towards lifestyle
accomplishment. 1954 – The Light
Refreshment, 1955 – Refreshing
For the next couple of years,
their slogans targeted the youth segment. Eventually,
this became the brand identity. 1961 – Now
it’s Pepsi for Those Who Think Young.
Pepsi eventually associated
itself with baby boomers, 70’s pop culture, iconic celebrities by carefully
crafted slogans. Pepsi slogans were designed
in such a way that they were relevant to the period
and targeted primarily to the young
consumer segments. 2013 – Live
for Now, 2015 till present – Out of
the Blue / The Joy of Pepsi-Cola, 2016
– Socha Nahi Ji Gaya, Pepsi Thi, Pi Gaya
Packaging is modern and
appealing to the young segments. It works
like a fashion statement to the current generations. Over eight regional
languages are used to print on the cans and bottles through all modern and
traditional outlets in India. Pepsi introduced few short films based on newly
designed cans. With a relatable packaging innovation, Pepsi tries to take a
progressive approach towards today’s youth generation. In Pepsico, packaging
has always been celebrated and helps them
to execute ‘Shelf to Media’ approach. Pepsi’s ‘Sun in Bottle’ campaign was
another example of packaging innovation to bring light to the deprived villages
in the India.
Brand association is the key
factor that drives the brand relationship as it leads to consumer loyalty. The blue colour of the Pepsi logo provides
differentiation and a sense of uniqueness which is not readily replicable by the other leading competitors in the market. The brand association allows the enforcing of
positive product key attributes. Pepsi is mainly targeted at the young
adults, giving them a refreshing beverage. It also uses many celebrity
endorsers to promote the brand. Pepsi commonly
used such celebrities who are known for fun,
adventure, energy, success etc. Also, during sports especially during
cricket matches, they launch creative advertisements and associate them with
the sports. It also leverages one’s
aspiration to become a successful person and a self-confident person. Highlighted words
indicate strong brand associations.
According to secondary
research, Pepsi was considered to be the least down to earth cola brand among
the consumers. Pepsi also was rated the least honest in the survey. Pepsi was
considered a moderately wholesome drink among the consumers. The most cheerful
brand was Pepsi, which was apparently seen
in its recent advertisements.
Pepsi was not considered as a daring as opposed to its closest
competitors. In their advertisements, Pepsi usually does not appeal to the adventurous nature of the people. Pepsi was
considered a spirited, up to date drink though.
Pepsi was not considered either reliable,
intelligent or successful drink.
This brand was considered for
all people, not for the upper class only. Although
it was rated neutral in the charming scale.
Pepsi was considered neither outdoorsy nor tough drink.
From these discussions, it can
be seen that Pepsi has Excitement personality dominantly. It has
moderate sincerity and competence personality. This brand has low sincerity
3 Colored Logo – This helps in
recalling the brand name.
Excitement, Fun – Using Pepsi while
partying or in the party, adds to the excitement and fun part.
Celebrity, Dynamic – Many celebrities
endorse this brand. This helps in
classical conditioning of the consumers. They can readily associate themselves with the celebrity’s dynamic
Successful, Confident – Successful,
confident aspirations are adequately captured
in their ever-changing promotions and
Young – Main target consumer of Pepsi
is the young segment. Their brand mantra
which includes Youngistan resonates
Unique Proposition – By showing its youth-centric image, it gives unique
proposition which prohibits the consumers from
buying other competitor products.
channel can be classified into three
Direct Store delivery – This enables
Pepsi to provide maximum visibility to their products. Products are directly delivered to the retail stores.
These products are restocked very often and are usually sensitive to marketing
Customer Warehouse – This is less expensive
than the former distribution channel. Those products which are less fragile,
comparatively slow-moving goods, not
perishable, lower turnover and are not purchased
impulsively, are being stocked in this type of channels.
Distributor networks – The other
channels include institutional sales such as selling products to restaurants,
schools, stadiums, businesses through third party vendors.
distribution channel strategy helps Pepsi to enjoy a favourable relationship with its retailers as well as influence
consumer shopping patterns by continually
modifying shelf space and stock of the products.
Pricing strategy is
competition based and flexible. If the prices are
varied, they change the price very quickly. The
primary motive behind this is to capture maximum market share.
mix of Pepsi utilises Pepsi refresh
campaign based on the social responsibilities and focused towards social media.
The brand tries to promote itself on various paid and organic search media such as Google,
YouTube and other social platforms.
Pepsi’s main target consumer is young people, and their
promotions reflect this. The company is always changing its advertising
strategy to the ever-changing consumer
dynamics. Advertising strategy includes using cool, generation suitable names
to attract youth audiences. Most of the advertisements include sports, music
and celebrities compared to other competitors. Also, they tried unconventional advertising strategies as well
such as offering mobile games, cool ringtones
or caller tunes to make the consumers aware of the product. Pepsi makes use of printed, outdoor, broadcast
advertisements to promote their products. Print advertisements are printed in
leading newspapers front cover page, lifestyle magazines, brochures, catalogues
Outdoor advertisements require
substantial investments, but they do major outdoor advertisements because that
can attract a lot more crowd. This advertisement
is placed on billboards, kiosks, crowded
bus stops, college hangout zones. Landscapes and street furniture etc.
advertisement is mainly done on radio,
television and social media, internet and via search engine marketing.
To connect with Indian
audiences, Pepsi invented many catchy slogans to capture audiences. Yeh Dil
mange more, Change the game etc. are few
examples of such slogans.
Sales Promotion: Pepsi promotes its products via sales
promotions as well. They give 20% extra or buy one get one offer based on the demand for the product and the season.