Strong Brands And Corporate Brands - Research Paper Example

Pepsi Brand Audit Institution Student’s Name Contents Pepsi Brand Audit 3 1.0 Brand Audit Objectives, Scope, and Approach 3 2.0 Pepsi Background 3 3.0 Background of Beverage Industry 4 4.0 Consumer Analysis 5 5.0 Brand Inventory 5 5.1 Brand Position 5 5.3 Brand Meaning 8 5.4 Brand Elements 9 5.5 Supporting Marketing Programs 10 5.6 Competitive Environment 11 5.7 Points-of-parity and Points-of-difference 12 6.0 Brand Exploratory 13 6.1 Brand Associations 13 6.2 Brand Position Analysis 14 6.3 Consumer Perceptions Analysis (vs. Competition) 14 7.0 Summary Coca-Cola Analysis 16 8.0 Brand Equity Evaluation 17 9.0 Strategic Brand Management Recommendation 18 References 19 Pepsi Brand Audit 1.0 Brand Audit Objectives, Scope, and Approach The objective of the Pepsi brand audit is to assess the health of the brand, expose its equity sources and suggest ways to leverage and improve the equity in question. In other words, the audit focuses on making Pepsi more successful as a company (Beach, 2013). The scope of the audit will be based on the brand of Pepsi Company. It will focus on analyzing the brand of Pepsi and how it affects its market. However, when it comes to competitive environment analysis, Coca-Cola Company will be taken into consideration as the main rival to Pepsi. The approach of the audit entails conducting a background of Pepsi brand and the beverage industry. In addition, consumer analysis was conducted to determine the behavior, segmentation, perceptions, motivation, needs, and trends. Brand inventory and exploratory were also conducted and its equity evaluated. Lastly, strategic brand management recommendations were developed. 2.0 Pepsi Background PepsiCo, Inc. is an American international beverage, snack, and food corporation whose headquarter is at Purchase, New York in the United States. Its main interests are distribution, marketing, and manufacturing beverages, snack foods made of grains, and other products. The company was formed in 1965 through the merger of Frito-Lay and Pepsi-Cola Company. Since then, the company has expanded its Pepsi product to accommodate a broad range of beverage and food brands. PepsiCo largest expansion entails the 1998 and 2001 acquisition of Tropicana and Quaker Oats respectively. The acquisition of Quaker Oats made the Gatorade brand become one of its portfolios. The aim of the report is to conduct a Pepsi brand audit which will entail taking consideration of the brand inventory and exploratory. Figure 1 below shows some of the beverages that belong to the Pepsi Company, Source: Beach (2013) Figure 1: Pepsi Products 3.0 Background of Beverage Industry The beverage industry entails production of drinks, more so, the ready to drink beverages. The beverage production varies as they differ in the bottle lines that they operate and the types of products that they run. The beverage can be bottled in glass or plastic and can also be canned. Some of the drinks are cold-fill or hot-fill, conventional or natural. The beverage industry has grown over years due to the demand for non-alcoholic drinks. As a result, significant innovations have been made in the beverage packing, processing, and plants. The largest global players in the beverage industry as per today include the Coca-Cola Company, Nestle SA, PepsiCo, AB In-Bev, SAB Miller, and Heineken NV among others (Beach, 2013). 4.0 Consumer Analysis The carbonated soft drink has been continuously losing its market share in the beverage industry. However, with the improvement in economies, the category might experience a one to two percent improvement compared to the rate of 2013 (Cappella, 2014). The diet subcategory of the carbonated soft drink needs to be improved. However, it is predicted that the category will continue to decline, but innovations will reduce the rate of decline. A steady return of the products to a positive growth is somehow difficult since the younger consumers today drink less carbonated soft drinks. In addition, today the public has a large variety of products to choose from. The carbonated soft drink brands should focus on ensuring that the consumers revisit their products. In explanation, the brands should focus on removing some of the demerits associated with the drinks such as sugar contents and re-position in a more relevant to the millennial such as simplicity and authenticity. However, it might take four to five years for the sub-industry to experience stabilizations (Diller, 2008). 5.0 Brand Inventory 5.1 Brand Position The brand position is the image that the brand wants to paint to the customers. It is one of the most important things in building a brand and takes consideration of the customers’ perception, thinking, and feeling. Brand positioning is the main point of marketing strategy and a company like Pepsi that operates in more than two hundred territories and countries (Beach, 2013). In explanation, it is important for the company to continue diversifying and integrating its activities so as to foster success and growth. The company continuously makes efforts on understanding its consumers through accommodating their diversity. It utilizes niche positioning as opposed to the offensive approach to dominate the soft drink industry. The target audience of Pepsi has been the younger generation in the urban setting. In explanation, the company has been targeting the young adults and active teenagers. Most of Pepsi's market is made of women and men of the age sixteen to forty-five years that fall in the middle class and reside in both urban and rural areas. Pepsi considers its consumers to be those interested in entertainment and sports since they have proven to be the brand loyalists. The category need of the Pepsi product can be traced back to seventeenth century. The century was the first time that the soft drinks were marketed and since then the demand for carbonated drinks have increased over years. Pepsi entered the market in the eighteenth century and since then the company has been changing its brand as per the needs and wanted of the consumers. It has also expanded its portfolio to meet the need of the consumers. The key benefits of the brand have been the meaning and personal value that the consumers have been able to attach to the products. Pepsi has been able to provide an extensive portfolio to satisfy the needs of the consumers. That is, it has availed the products so as to quench the thirst of the consumers and address their cola cravings. Pepsi has been engaging in purchase motivation techniques. After losing its market share to the Coca-Cola Company, Pepsi has mixed artificial sweeteners to its colas so as to continue issuing sweet, refreshing and bold taste (Beach, 2013). Consequently, the brand has been gaining momentum since people find the new taste appealing. The Pepsi consumers enjoy the formulas in the products thus has been the main motivation factor among the consumers and loyalists of the products. Pepsi has an exceptional brand character. In explanation, the company has continued to mark its place in the beverage industry due to the unique challenge that it has given to Coca-cola its main rival. The company has embraced the aggressive branding approach which it uses to communicate to its youthful consumers. In explanation, it has made efforts to ensure that it is not continuously and dominantly overshadowed with its competitors. 5.2 Brand Portfolio Analysis Pepsi has continuously expanded its portfolio to address the needs for every lifestyle and occasion. Today, Pepsi is a flagship brand in a liquid refreshment beverage portfolio that entails the bottled waters, soft drinks, ready-to-drink coffees and teas, juice drinks, and spans of carbonated soft drinks (Beach, 2013). Figure 2 below outline the Pepsi products and its extended sub-brand portfolio that include beverages such as Naked Juice, IZZE, SoBe, Mug, Propel, AMP Energy, Tropicana Pure Premium, Aquafina, Sierra Mist, Gatorade, and Mountain Dew. The perspective of the company is that the more the offerings, the better the company. In explanation, the multiple products give Pepsi a cut-edge position as the provider of the soft drinks and adds value and depth to the organization. Source: Beach (2013) Figure 2: Pepsi’s Brand Portfolio 5.3 Brand Meaning Brand meaning entails defining the brand image, what it entails, and the picture it gives the consumers. Pepsi has worked over years to develop a reputable, unique, and strong brand image. The company is committed to achieving financial and business success while the same time is leaving a positive societal imprint. The brand focuses on portraying the image of integrity, fairness, and honesty. Pepsi has outstanding brand imagery. It uses a timeless, prestigious, and global image to fulfill the social and psychological needs of the consumers. In addition, the company has been using well-known celebrities such as Nicki Minaj, Jeff Gordon, and Beyonce to appeal to its consumers (Beach, 2013). The brand personality of Pepsi entails adventure, excitement, and sincerity based on the fact that it aims to reach the younger audience. Its print and commercial advertisement indicate the company to be more thrilling and edgy with more vibrant and active consumers. The brand distinguishes itself from its competitors based on its credibility and quality. Pepsi gives more flavorsome beverages that do not affect the quality of the brand thus enhancing the attitude of the consumers towards the brand (Beach, 2013). Pepsi is associated with a challenger performance in the beverage industry. However, the company needs to make additional efforts to ensure that the product meets the needs of the consumers. Currently, Pepsi gives some beverages to its consumers with the appropriate trusted primary ingredients and quality. In explanation, the Pepsi website gives an elaborate ingredient glossary that explains how each of the ingredient work to create the beverage (Beach, 2013). 5.4 Brand Elements Pepsi has unique features that help differentiate and identify it from other products in the beverage industry. Its brand elements include the logo, name, symbol, packaging, spokesperson, and slogan. The elements come together as one to make Pepsi a distinct product. Figure 3 below gives a comprehensive assessment and comparison of the brand elements between Pepsi and Coca-Cola. Source: Beach (2013) Figure 3: Brand element comparison 5.5 Supporting Marketing Programs Pepsi has been using aggressive strategies for several years in its marketing support programs. The strategies have been focused on increasing brand awareness and the identification of the iconic brand. Pepsi's food, snack, and beverage brands compete by products' distribution and variety, quality, and price. The competitive environment has made it paramount for the industries to invest in existing products. In addition, Pepsi has invested on the introduction of new products in the market. Further investments have been in the advertising campaigns, product packaging, marketing programs, pricing, and increased production efficiency. Investments have also been made on the new dispensing and vending equipment and trademark and brand protection and development. The company's competitive edge has been due to the flexibility of its distribution network, quality of the products, marketing and innovation, and the strength of the brands. Pepsi market program is based on the four P's of marketing. That is Promotion, Price, Place, and Product. Pepsi understands the wants and needs of its consumers and believes that the art of successful marketing is based on the programs and products that satisfy them (Beach, 2013). The primary product of Pepsi includes the regular cola, reduced-calorie cola, and the diet cola. The company now operates in more than two hundred countries and their products are consumed by billions of consumers per annum. The prices of the soft drinks depend on with the geographical location and availability of the products. For instance, the average prices of the products range from $ 50 to $ 10 depending on the way to which the product was chased. The small Pepsi cans can be purchased from the vending machines. The cans can also be bought easily in the form of cases that have twenty-four packs for a lower cost. Pepsi Company uses several methods to promote its products. Pepsi uses several marketing promotions such as grassroots marketing, philanthropic activities, digital and print advertising to reach the consumers. In addition, the company participates in social media campaigns, event and athletic sponsorship, product sampling, and the Super Bowl commercials. 5.6 Competitive Environment Pepsi’s biggest competitor is Coca-Cola even though there are several companies in the industry. However, Pepsi has continued to focus on its diversified brand portfolio in the market. Other beverages and food competitors include Nestle S.A., Monster Beverage Corporation, International, Inc., Kraft Foods Group, Inc., Kellogg Company, DPSG, ConAgra Foods, Inc., Sydney Lance, and Red Bull GmbH. In additional markets, the company competes against local and regional companies (Beach, 2013). Pepsi holds a great position in the food and snack industry while the Coca-Cola Company is leading in the carbonated soft drink. The market share of the beverage industry has been dominated by the Coca-Cola Company with Pepsi Company coming being the second one. Coca-Cola has always experienced continual dominance, long-term growth, and ensures consistency. Coca-Cola is leading the market share with approximately 42.2 percent (Beach, 2013). Pepsi Company is the leading challenger and has made large strides to control the greatest part of the share of the market. Currently, Pepsi has approximately 27.7 percent of the market share. The two companies are still competing to take control of the market share. However, Pepsi is in a better position to increase its market share to close the gap that Coca-Cola enjoys today. 5.7 Points-of-parity and Points-of-difference The difference between Pepsi and Coca-Cola can be well understood through their points-of-parity and the points-of-difference. The figure 4 below gives a detailed comparative analysis of Pepsi and Coca-Cola Company. Source: Beach (2013) Figure 4: Points-of-Parity and Points-of-Difference 6.0 Brand Exploratory 6.1 Brand Associations Pepsi is memorable. People across the world are able to recognize the Pepsi brand name since it is unforgettable. However, it has not yet surpassed Coca-Cola. Pepsi Brand is also meaningful. Its slogans are persuasive and descriptive making the consumers to be intrigued to the brand. Such slogans include “Be Young, Have Fun, Drink Pepsi”, “More Happy”, and “Live for Now.” All these evoke the positive feelings of the Pepsi consumers (Beach, 2013). Likeability of Pepsi is also critical. It is liked by many consumers due to its modern and sleek packaging and its outstanding taste. The consumers find the product to be aesthetically pleasing. Pepsi is also transferable. The brand is easily transferable across the geographical boundaries due to the popularity of the icons (Kay, 2006). For instance, the use of celebrities like Beyonce makes the population more able to relate with the beverage. Pepsi has proven to be adaptive. It has adapted its image and logo so as to appeal to the consumers and help in the consumption. It has today decided to take a silence and simple characteristic. The look has been modified severally with the wavy blue, white, and red circle remaining the same thus iconic. The brand of Pepsi is protectable. Consumers know that the name of the brand, slogan, symbol, logo, and name and other pertinent cannot be infringed or copied for a competitive gain. Even though the Pepsi logos can be found online, consumers cannot replicate the brand or something like it (Kay, 2006). 6.2 Brand Position Analysis Many of the young and active people, minority and urban adults consider Pepsi as a brand of soft drinks with sweet tasting cola that provides a quick relief on a busy day. Consumers consider Pepsi to be fresh, hip, youthful, unique, fun, and exciting (Beach, 2013). Even though Pepsi is present in more than two hundred countries some of the consumers say that they have a regional feeling. The brand’s position is made of the following elements: brand character, motivation of loyalty or selection or purchase, key brand benefits, category need, and target audience. 6.3 Consumer Perceptions Analysis (vs. Competition) Pepsi brand inspires millions of the consumers across the globe. These consumers are subjective to the brand and consider it the best. A study conducted in West Virginia University with a sample size of thirteen participants. The study indicated that most of the Caucasian woman of the age from eighteen to thirty five who inhabited the preferred Pepsi Cola over Coca-Cola (Beach, 2013). Figure 5 below shows the study findings based on sex while figure 6 shows the Pepsi findings as per age. Source: Beach (2013) Figure 5: Preference of Pepsi vs. Coke The figure above indicates that most people prefer coke and the preference cuts across the sex with most being males. On the other hand, only females prefers Pepsi products. Source: Beach (2013) Figure 6: Pepsi Consumer Based on Age The figure above show that majority of the people that consume Pepsi are of the age between eighteen years and thirty five. Only sixteen percent of those above forty five consume Pepsi. 7.0 Summary Coca-Cola Analysis Coca-Cola is the Pepsi’s longstanding and primary competitor. It is the largest beverage company and is the dominant beverage industry in the world. The Coca-Cola brand portfolio has sixteen major brands and three thousand five hundred beverages. The key factors that make Coca-Cola an outstanding company include success, longevity, and classic reputation. Coca-Cola consumers have more than two hundred countries and enjoy its product line products that consist of sparkling and diet colas, coffee, tea, sport drinks, water, and fruit juices. 8.0 Brand Equity Evaluation The figure 7 below is a description of the brand equity of Pepsi Company. In explanation, Pepsi Company has an exceptional brand loyalty, awareness, association, quality, and property assets. Source: Aaker (1991) Figure 7: Pepsi Brand Equity Evaluation 9.0 Strategic Brand Management Recommendation There are a number of recommendations that Pepsi need to put into consideration. First, they need to expand the product portfolio and consumers’ knowledge of the products that are new in the market. Second, it should ensure continuous engagement with its customers through the social media and incorporate non-celebrity or real-life endorsement to promote the products. Lastly, the company should develop a rewards program that will make the consumers earn bonuses in the future purchases thus helping in customers’ retention and enhance product consumption. References Aaker, D.A. (1991). Managing brand equity; capitalizing on the value of a brand name. New York, The Free Press. Beach, J. (2013). Pepsi brand audit. Retrieved from https://jennambeach.files.wordpress.com/2014/06/jbeach_613_w9.pdf Cappella, S. (2014). Beverage industry analysis, 2014. Retrieved from http://distributionpropertysolutions.com/beverage-industry-analysis/ Diller, H. (2008). Price fairness. Journal of Product & Brand Management, 17(5), 353-355. Kay, M. J. (2006). Strong brands and corporate brands. European Journal of Marketing, 40(7/8), 742-760. Read More