Pepsi Marketing Strategies in the United Arab Emirates - Essay Example

Pepsi Marketing plan in United Arab Emirates Outline Introduction 2. Marketing Environment 3. Product Segmentation 4. Product Description 5. Current Target Market 6. Marketing Opportunity 7. Proposed Product 8. Pricing and Distribution 9. Product Promotion 10. Conclusion 11. Questionnaire Organization introduction Pepsi Cola International is a universal and world-wide renowned soft drink brand. It is an organized company that runs in nearly all the nations in the world (Stoddard, 1997). This company produces one of the best carbonated drinks in the whole world. Pepsi typifies hygiene, service and quality all across the world. Pepsi has been producing cola over hundred years and has dominated the world soft drink market over the years, coca cola being the leading competitor (Stoddard, 1997). Pepsi first introduced in 1898 by Bradham Caleb who first made and tried it in his home. He introduced it as Brad’s Drink and later renamed it Pepsi after enzyme Pepsin and the kola nuts ingredients (Stoddard, 1997). Pepsi, introduced as a cough syrup in America, sold in the pharmacies. Everyone liked the taste of the syrup. In 1909, Pepsi was licensed to process, bottle and trade in more than 24 states in the United States. It introduced its products in a 6.5 ounce bottle. Endorsement of the original application for Pepsi trademark took place in 1903 after an application in 1902 (Stoddard, 1997). Pepsi gained recognition in 1936 after the introduction of the 12 ounce bottle during the great depression. In 1950, there were slight changes in the Pepsi cola formula and calories and sweetness were also slightly altered in Pepsi cola. In 1957, the marketing team changed the bottle appearance of Pepsi cola to a new and attractive bottle and introduced new products, i.e. Mirinda and Teem. Currently, Pepsi cola is available in each and every country and is available to more than hundred million consumers in Asia as well as Africa and Europe (Stoddard, 1997). Distribution of Pepsi products in Abu Dhabi is indirect. Through the capital of the United Arab Emirates, Pepsi has a market share of 67 percent while Coca cola has a market share of 35 percent (Louis & Yazijian, 1980). This data fluctuates with periods and most of the times Pepsi is at par with coca cola, the biggest competitor. Pepsi dominates Abu Dhabi’s soft drink market. Marketing Environment According to Harrell (2008), marketing environment refers to the forces and factors that influence a company’s aptitude to create and sustain healthy and successful relationships with customers. Marketing environment consists of the macro environment and the micro environment. The microenvironment refers to the factors and forces that are close to the company and influence the way the company serves its customers. This includes the suppliers, marketing intermediaries, customer markets and the competitors. The macro environment refers to the external forces and factors that the company has no control over, such as the demographics, politics, technology, culture and economy and natural forces (Harrell, 2008). In Abu Dhabi’ economic environment, Coca cola, a world recognized brand, remains to be the main competitor. The Coca cola brand name is the strength behind the high sales they record within the region and the recognition the brand gets (Louis & Yazijian, 1980). Pepsi knows that it cannot change the brand name from the people’s minds, but an increase in consumption will trigger a decrease of Coca Colas utility. Pepsi is continuously diversifying and encouraging new ideas. This has enabled it to be in the top in Abu Dhabi. Introduction of Pepsi in Abu Dhabi experienced competition from the 7up’s lime and lemon drinks. Pepsi then introduced their lemon drink “Teem” to compete with 7up. The domination of soft drink market in Abu Dhabi will see the success of the new 600 mls Pepsi product. These companies supply the consumers with products in time and ensure that considers the needs of consumers. Abu Dhabi is the richest and the second most populous capital in the United Arab Emirates with a population of 896, 751 people. This high population provides the company with enough market for its products. United Arab Emirates provides a well-disposed political environment for marketing of Pepsi cola drinks. The political climate has been stable over the years under the leadership of Khalifa bin Zhayed. Market Segmentation According to Harrell (2008), market segmentation refers to a marketing strategy that aims to divide a given market according to various variables. This targets a market segment. Pepsi has segmented its market into two main variables: Consumers age Demographics Pepsi consumers are majorly the teenagers, the youth and the adults (Stoddard, 1997). It has different adverts that target the different ages. Pepsi also targets different states and countries. It divides the countries into different segments in regard to the purchasing power of individuals. Pepsi also targets colleges, schools and universities, homes, stores and restaurants (Stoddard, 1997). Current Product Description In 2010, Pepsi introduced the Sting Energy drink and the Slice Fruit Juice in the Arab countries (Stoddard, 1997). This aimed at providing people with a wide variety of soft drinks. These two products have had a terrific response from the consumers (Stoddard, 1997). All Pepsi drinks ingredients are subject to scientific and medical evaluations. The ingredients are healthy and pose no health risks to human beings. In UAE, women are the main consumers of soft drinks. This call for a well shaped new 600ml product to entice the women consumers. Current Target Market Pepsi has been targeting all ages and learning institutions and homesteads in marketing its products. Nearly all Pepsi products were advertised under the slogan “ever Pepsi refreshes the world”. The Sting energy drink was targeting young and energetic people who require the energy to be able to perform their daily duties. Pepsi targeted the middle aged and teenagers with the Slice fruit juice. This provides refreshment to everyone. Pepsi endorses celebrities in its adverts to familiarize with the young and teenage people (Stoddard, 1997). Marketing opportunity The Asian market has not been fully exploited and explored by the soft drinks companies. Lemon and the lime juices were the only soft drinks offered in Abu Dhabi. The Slice fruit juice has a higher opportunity since there are no other companies that offer fruit juices in the region. This juice contains purely natural juice as opposed to the other coca cola and Pepsi products (Stoddard, 1997). Abu Dhabi, the richest city in the world, has a populace with a high purchasing power. This will provide market to products which are selling at relatively low prices. Marketing Analysis From a research done, among all the soft drink products consumed, two thirds were Pepsi products. This research took place in nearly all the outlets across the capital through interviews and questionnaires. The analyzed information indicated that Pepsi controls 65 percent of the Abu Dhabi soft drinks market (Louis & Yazijian, 1980). This shows that Pepsi has a higher preference than coca cola in Abu Dhabi. Proposed Product Description We aim to introduce a 600 mls bottle into the market instead of a 300 mls bottle. The proposed 600 mls has a lower price when compared with the 300ml bottle. This new product will be in a new well designed bottle to capture the attention of the buyer or the consumer. Product Pricing The bottle will sell at a flat rate of 0.5 US dollar all across the world. The Coca cola 500ml bottle sells for 0.5 US dollars (Louis & Yazijian, 1980). This is a favorable price that will cut across all the income classes within the region. This is an added advantage and could be used to campaign against the Coca cola company products which are relatively expensive. Schedule is underway to distribute and sell the product across the world. Proposed Distribution of the product Pepsi is a worldwide company that looks for mergers and partners. It collaborates with many companies that produce the Pepsi products (Stoddard, 1997). It is this widespread that facilitates its advertisements in the many countries (Stoddard, 1997). The new product should not violate or seek for any other means of distribution different from the traditional method. Distribution of the product within the region and the world will take place through mergers and partners who will produce the product in that given area and sell it in the region. The company might also plan to use joint ventures in the different countries where it can control the market. Promotion Mix According to Harrell (2008), promotion is one of the four variables of marketing. It consists of personal selling, advertising, public relations, publicity and sales promotion (Harrell, 2008). The design of the four variables creates a promotional mix (Harrell, 2008). This promotional mix specifies how much attention needs to be placed on each variable. Over the past years, Pepsi has had strong advertising strategies. Print and electronic media are the main advertising strategies to employ. The company will seek to endorse some of the renowned celebrities and actresses like Imran Khan and Wasim Akran. When targeting the youth, young stars like Aisam Ul Haq can be considered for endorsement. Pepsi can also help in sponsoring events. This will help boost the company’s brand name reputation (Harrell, 2008). The company may also consider providing incentives to the shop keepers and discounts to the consumers. The company can also put up bill boards and paint at different outlets for publicity. Conclusion Pepsi is among the reputable consumer brands not only in Abu Dhabi but also in the whole world. The brand sensitive consumers use Pepsi products across the world. Engagement of Pepsi in numerous event sponsorships across continents has significantly improved its image and reputation. The brand loyal consumers use the products due to the exceptional quality and taste. The new proposed product will enter the market and will prevail due to the quality standards set by the brand. Questionnaire 1. How did you first learn about Pepsi? a. Through a friend b. Through an advert c. Through the retailers d. Any other way (Please specify) 2. How often do you take Pepsi Cola? a. Every day b. Once in two days c. Once in a week d. Once or twice in a month 3. What is your preferred Pepsi cola bottle quantity? a. 600 mls b. 300 mls c. 1litre 4. How do you define quality in a drink? a. By the ingredients b. By the taste c. By the packaging 5. How do you rate Pepsi Colas drink quality? a. Excellent b. Good c. Average d. Below Average e. Bad 6. Pepsi cola is my a. Preferred drink b. Second preferred drink c. Last preferred drink 7. How many Pepsi cola products do you know? 8. Do you like soft drinks? 9. What is your preferred soft drink flavor? 10. How would you rate your satisfaction with Pepsi Cola drinks? a. Fully satisfied b. Averagely satisfied c. Not satisfied 11. Pepsi cola drinks a. Leaves me craving for more b. Disgust me 12. What are your reactions when you see a Pepsi cola can in a shop’s counter or with a friend? 13. How well would you distinguish and identify Pepsi cola in a mixture of other brands? Please specify any significant or unique feature. References Harrell, G. D. (2008). Marketing: Connecting with Customers. Chicago Education Press. Louis, J. C., & Yazijian, H. Z. (1980). The Cola Wars. New York, USA: Everest House Publishers. Stoddard, B. (1997). Pepsi Cola - 100 years. Los Angeles, USA: General Publishing Group. Read More