The paper "Pepsi Marketing Mix Across Japan and USA" is a good example of a marketing case study. Marketing communication is the flow of information regarding a product between the customer and the seller. It is said to be effective when it smoothly flows between the two parties without the occurrence of miscommunication. Basically, the marketer communicates information about his/her product to the customer while the customer in return gives his or her feedback. It is, therefore, a two-way process (Jobber 2004) In this assignment, we have chosen Pepsi as our product and we will compare its marketing communication and level of adaptation across Japan and the USA.
We will start by giving a brief about what Pepsi is. Pepsi is a carbonated soft drink with 22 variants manufactured by PepsiCo. It has a huge market all over the world and its main competitor is the CocaCola brand it was first manufactured in the US back in 1898 and has grown over the years with a good reputation to establish itself as one of the market leaders in the soft drink world market today. Figure 1.
Pepsi's first logo designed in 1898 Figure 2. Pepsi current logo Currently, PepsiCo generates more than $65 billion dollars net annual revenues and has a 22-brand product portfolio. Its huge success over the years has been built on a sound marketing communication mix. This is achieved through massive advertisements campaigns that cost billions of dollars annually. For instance, it spent over $1.3 billion in advertising costs in 2004. Its main competitor is CocaCola and Pepsi has done pretty well over the years to retain its market share from the CocaCola ‘ threat’ .
Statistically, it seems it will always be second, but only to CocaCola. (Mind-advertising) First, it has had to continually adjust its marketing strategy over the years and across different regions in the world. With globalisation, advertisement and promotion have grown and become re-invented and producers have had to respond accordingly. This is because of the differences that exist across distinct customers and countries (Armstrong & Kotler 2005). Marketing communication involves the four Ps: product, price, promotion and pricing. The product area includes product variety, brand name, packaging, services, features, design and quality (Jobber 2004) The product, in this case, is Pepsi.
Pepsi-Cola contains carbonated water, caffeine, citric acid natural flavours, fructose, sugar and colourings. It is worth noting that there have been other varieties that have been released for special seasons in the past and later discontinued such as Pepsi Cheer specifically for the 2010 world cup There are different Pepsi varieties in the two countries and some of them are shown below. USA Japan Pepsi cola (the signature cola flavour) Pepsi Azuki Pepsi Wild cherry Pepsi Baobab Pepsi Natural Pepsi Blue Hawaii Pepsi holiday spice Pepsi carnival Pepsi mojito Pepsi Carribean Gold Lemon Pepsi Pepsi Red Pepsi freeze Pepsi pink Pepsi next Pepsi X Energy Cola Pepsi vanilla Regarding price, it is defined in economics as the monetary value of a commodity.
It includes other aspects such as list price, discounts, allowances, payment periods and credit terms. Pricing a commodity well determines whether it will be successful in the market. Pepsi varieties have different prices in the two countries. Pepsi determines the prices are determined based on Cola, the prices are a bit higher than in Japan. Sample Pepsi global standard pricing list for the common Quantities. Quantity Price Regular Pepsi 250ml Rs. 15 Pepsi disposable 500ml Rs. 25 Pepsi 1.5l Rs.
50 Placement means the market where the product is sold. It contains aspects like channels of distribution, coverage of the market, assortments, inventory records and logistics services. Pepsi has well-established distribution channels in both countries. The products are availed in bulk to wholesaler, restaurants and hotels and retailers who in turn sell the requisite quantities to the final consumers. The market for Pepsi has spread all over the world. In the USA, it has a thriving market in all states. In Japan, it is relatively new but is the market is growing fast.
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