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Marketing Plan for Crystal Pepsi - Term Paper Example

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PepsiCo was founded in 1965 following a merger between Pepsi-Cola and Frito-Lay. Its motto is ‘Something for everyone’. The company operates in over 200 countries across the globe and generates sizeable net sales annually. …
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Marketing Plan for Crystal Pepsi

Download file to see previous pages... PepsiCo was founded in 1965 following a merger between Pepsi-Cola and Frito-Lay. Its motto is ‘Something for everyone’. The company operates in over 200 countries across the globe and generates sizeable net sales annually. Crystal Pepsi was first introduced in 1992 but was withdrawn by the end of 1993 due to very low sales. However, it is possible to re-launch the product through intensive marketing activities and flavor changes.The company’s first priority is to build and manage its brand through the yet to be established Brand Charter. Above all, the company needs to increase its marketing endeavors to be able to compete effectively with the giants in the industry. The company intends to generate over $1.78 billion in net sales before the end of 2015 from Crystal Pepsi by investing about $850 million in marketing endeavors within the next three years, ending 2015.The mother of PepsiCo was Pepsi Cola Company, which was founded in 1898 in North Carolina. In 1965, PepsiCo was formed following a merger between Pepsi-Cola and Frito-Lay. PepsiCo motto is ‘Something for everyone’, a statement that perpetuates consumer inclusion. The company produces assorted beverages and snacks, which are sold in over 200 countries across the globe. PepsiCo generated net sales of $66.5 billion and $57.8 billion in 2011 and 2010 respectively.
1.2 Past Crystal Pepsi.The introduction of Crystal Pepsi in 1992 was informed by health concerns, especially increasing levels of obesity. As a result, PepsiCo promised its customers and consumers that it will use healthy ingredients to produce products and provide health benefits in its products. Since its inception on 12th April 1992, Crystal Pepsi had been perceived as a fad because it failed to deliver its value propositions to its consumers (Susan 53). In addition, its name was controversial, especially when connected with the brand Pepsi known to many for its coke products, which are considered to contain caffeine and caramel. In fact, it tasted like coke though colorless thus confusing the consumers. As a result, its sales momentum faded in 1993 and it was thus discontinued. 1.3 Strategic Opportunity Most people are becoming health conscious, therefore, there is need to provide products that meet their needs. According to PepsiCo Chief Executive Officer (CEO) Ms. Nooyi, PepsiCo need to be refocused to accommodate emerging needs of health conscious consumers. In response to this need, the company continues to invest to grow its nutritional business from $10 billion to $30 billion in annualized sales by end of 2030. Again, PepsiCo needs to advertise more. Unlike, Coca- Cola Company whose products are featured regularly in most advertising, PepsiCo brands appear less in commercials. As a result, Coca cola and diet coke are brands that rank first and second before any Pepsi product because it spends more on advertising. If PepsiCo positions itself properly, it will gain from 14.5% growth expected to be experienced in the industry by the end of 2016 to reach annualized sales of $222.7 billion (Market-Line 22-26). 1.4 Objectives 1. To sell over 407.6 million litres of Crystal Pepsi and generate about $400 million from North America, Canada, China and Middle East regions by 31st December 2013 2. To sell over 611.4 million litres of ...Download file to see next pagesRead More
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