Advertising Campaign for Pepsi - Case Study Example

Advertising Campaign Name: Institution: Introduction Advertising is a tool that is used by companies to create awareness of their products. An agency plays a significant role in ensuring that it will control marketing and formulating strategies that are used in branding and sales promotion. To create awareness, there is need to introduce an advertising agency since it plans and control advertising strategies that promote the company products and services to the customers. Advertising campaign must be designed so that the company may increase the sales and create trust to the loyal customers. An advertising agency saves one time that could be used when creating and planning the strategies that are going to be used in the advertising. The agency creates techniques and advertising campaign that appeal to the customers. The agency plays a significant role in ensuring that an increase of revenue is obtained, and the brands recognition improved. Whenever the brand is recognized, then it implies that chances of the company increasing the profit are high. Company management needs to advertise their product and services so that recognition is improved. This paper seeks to discuss Pepsi as the brand and how an advertising agency can be used to create awareness of the brand. It will further seek to provide the overview of the advertising agency, it strength and the overall business objectives. Additionally, it will give the tactics employed to attain the objectives and the measures put in place to monitor the success of the campaign. Challenges of the brand Pepsi being the co-competitor of Coca –Cola has a wide range of gap that exists in terms of how the product is known to the customers. Comparing with other carbonated drinks like the Coca-Cola Company that recorded $168.8 billion in 2014, PepsiCo managed to record annual revenue of $66.28 billion in the same year. This is a major challenge that needs to be addressed by comparing the two brands Pepsi being the co-competitor in the carbonated drinks. There is a need to come up with a strategy that can be used to reduce the gap that exists. Awareness needs to be created so that the brand can be accepted in the market globally and compete stiffly with Coca-Cola. The problem that is faced by the brand is that the PepsiCo does not rely on advertising as a communication tool that can play a significant role in ensuring that awareness is created. Though advertising is expensive in the long term, it leads to profit increase since it will lead to Pepsi being recognized. When awareness is created to the customers there is need to come up with strategies that can be used to change the company chemical formula that they use so that taste and the color of the brand can be changed (Ind, 2007). It implies that the customers will consider that Pepsi improved its brand and thus create trust and customer loyalty. Overview of the Agency The advertising agency that is needed for Pepsi to reduce the challenges that exist in the company is Full Services Agencies. The agency is concerned with planning, creating, performing research based on how the brand can do in certain market segments and the media that can be used to advertise. The agency is also involved in some services like strategic marketing planning, direct promotion programs, public relation and interactive marketing of the brand (Beaverstock, 2011). The agency will play a significant role in ensuring that planning and marketing on how Pepsi will be recognized in different market segments. Full-Service Agency provides services locally and internationally and thus it implies that Pepsi will be a global brand that that the customers are going to be made aware of. The strength of the full-Service Agency is that it provides direct advertising functions to the customers. It implies that the brand is advertised in such way directed to the customers to make sure that the brand has retained the capability to be a leading carbonated soft drink as compared to the other brands. Full-Service Agency also has the strength of making sure that it gives commission to the clients, so they are motivated and work together with the agency. Additionally, the direct marketing promotion that the agency provides makes it more reliable to the clients who use the agency since they benefit directly due to promotion programs and the interactive marketing. Objectives The overall communication and marketing of the advertising campaign agency is to plan how Pepsi will outdo the Coca-Cola brand in its stronghold locations. It implies that advertising campaign that will influence the key specific locations must be carried. Creation of awareness of Pepsi is the overall objective where any advertising method will be used to make sure that the brand will be accepted in the market. The aim of using the advertising tools is to make sure that the gap that exists will be reduced and increase the revenue of Pepsi. The use of social media is going to be used since most of the customers use the social media to check for different varieties that may satisfy their needs. The agency must come up with strategies that will increase the public relation between the consumers and the staffs who are going to distribute the brand. To outdo the global leader in soft drink industry, it implies that Pepsi in combination with the full-Service Agency has to market the brand using all means possible (Partridge, 2011). For example, the use of direct marketing and distribution of fliers that will involve door to door distribution will improve Pepsi. Promotion and use of posters will create awareness of the brand making it possible for Pepsi to be accepted in the market. The agency has to come up with the plan how the campaign will be conducted using more than three groups that will initiate the advertising campaign. The management of PepsiCo has to facilitate the agency with the required resources so that the campaign will smoothly be conducted. The method may be expensive but in longer term goals it will improve the brand and increase the sales. Execution and tactics employed The overall objective is to create awareness of the brand secondly the agency and the management of the company need to outdo the leader of the soft drinks. One of the tactics that are going to be used is targeting the demographic of the customers. For example, it is the role of the agency to research before they start the advertising campaign since they should be aware of what the targeted demographic enjoys. For example, if they enjoy radio and television programs they have to introduce the campaign aiming advertising on the radios and the television so that the customers can be convinced about the brand. The campaign targets young and old generations who enjoy drinking soft drinks. The second tactics that are going to be used is considering the culture of the customers and their climatic conditions. For example, some customers who dwell in cold climatic conditions do not need the drinks, and their culture must be considered so that what they like most can be offered. Technology is another tactic that is going to play a significant role in improving the brand. If the customers have the tendency of embracing the technology, then the agency should incorporate social media. For example, the use of Facebook, YouTube, and direct email can play a significant role in ensuring that the brand has been accepted in the market. The advantage of the campaign is that through the full-service agency research of the market is conducted making the agency effective in its campaign (Tellis, 2004). One of the lessons learned from the full-service agency is that it provides the customers with direct access that is required for advertising functions. The second lesson is that the agency is also concerned with marketing research making it possible for the company to know about the location first before introducing the brand. Evaluation and monitoring The measures that were put in place to monitor the success of the campaign is to make sure that PepsiCo management will register an increase of revenue. This will be established by comparing with other months when the management had introduced the advertising agency campaign. The other measure put in place to monitor the success of the campaign is when the management will receive public opinions concerning the brand. The opinions will be about the taste, the price of the brand and the packaging of the brand among others. The outcomes achieved is that when the market research is concluded then the brand is introduced to the target market resulting in revenue increase within the specified timeframe. Creation of awareness of the brand is attained since the market research has incorporated the target market and their demographic (Jones, 2011). When the advertising agency finds the targeted customers, then the public relation is created so that a favorable environment is established so that they are can be loyal customers. The gap that exists between Pepsi and Coca-Cola is going to be reduced since the brand is known to many customers and thus attaining the goals of the PepsiCo. The aim is to outdo the Leading soft drink company by providing the best quality drinks at a cheaper price and meets the consumer requirements. References Beaverstock, J. 2011. The globalization of advertising. New York, NY: Routledge. Blanchard, O. 2011. Social media ROI: Managing and measuring social media efforts in your organization. Indianapolis, Ind.: Que. Ind, N. 2007. Living the brand how to transform every member of your organization into a brand champion. London: Kogan Page. Jones, J. 2011. How to use advertising to build strong brands. Thousand Oaks, Calif.: Sage Publications. Partridge, K. 2011. Social networking. New York: H.W. Wilson. Tellis, G. 2004. Effective advertising: Understanding when, how, and why advertising works. Thousand Oaks, Calif.: Sage Publications. Read More