Consumer Decision Making

Consumer who buy Pepsi products are usually making a routine decisions.

Routine reponse behavior are low involvement products and thats what most Pepsi products are.

Pepsi, Tropicana and Doritos are all products that you buy first and evaluate later.

Product Concepts

PepsiCo has many different product lines, one of there products lines is there beverages

Pepsi Beverages consist of 
-Pepsi 
-Pepsi Caffeine free
-Diet Pepsi
-Diet Pepsi Caffeine free
-Pepsi Max
-Pepsi Twist

Segmenting and Targeting Markets

-Even though PepsiCo products are for men and women of all ages, their main target market is young adults ages 14-30 and the places that PepsiCo targets are schools, colleges, universites, restaurants, hotels, and stores.

Developing and Managing Products

New Products

PepsiCo made three new products that are available in Belgium.

-Spookies a ghost shape chip for kids that has 64% less fat than regular chip.

-Smiths Grill new flavor chip pickle flat chips.

-Doritos also has a new flavor chip as well.  The new flavor is called Sizzling Fajita chip. 

Integrated Marketing Mix

Advertising

-PepsiCo uses plenty of television commercials to get there products noticed.  At least once an hour on a televison station there would be a commercial that shows a Gatorade, Pepsi Max, or a Doritos advertisement.

-The NFL is also a big sponsor of Gatorade with players drinking gatorade on the sidelines of a game being played and with the commercials with Peyton Manning in the Gatorade series.

-PepsiCo even has its own Facebook Page for followers to take a look at all the products PepsiCo has.

Sales Promotion and Personal Selling

-Most supermarkets like Shop & Stop, King Kullen, Pathmart, and Shoprite will have sales on 2 litter bottles of pepsi.
-Usual the sales that these supermarkets have are buy one get one free.
-These sales are also for the 12 pack cans of pepsi as well.

Advertisements and Public Relations

-PepsiCo uses many different kind of commercials, most of which try and show that there product is better than Coca-Cola.

-One commerical that Pepsi has is the Coca-Cola Santa Claus on vacation and instead of getting a coke he gets a Pepsi.

-Pepsi also has another commercial where the Pepsi vendor out performs the Coca-Cola vendor by getting Snoop Dogg the perform on a huge stack of Pepsi cans that are setup of a stage.

-These commercials are for the viewer watching these entertaining advertisements to buy Pepsi products over Coke products when the consumer goes and buys soda.

Retailing

-One of the retailers that sell PepsiCo products is Beyars Market, a family owned geocery store on Staten Island.

-The PepsiCo 20oz bottles are located in the back of the store in the left hand side of the refigerator.  The 20oz bottles sell $1.79 plus tax which is a total of $1.99 per bottle.

-The PepsiCo 2 litter bottles are located in the other side of the store in the corner near the meat department.  The price of 2 litter bottle is $2.29 plus tax which is a total of $2.53 per bottle.

-Tropicana products are located in the dairy section of the store, the Tropicana pints cost $1.69, and quarts cost $2.29.  The Tropicana half gallons cost $3.19 but with a Beyars Market coupon the Tropicana half gallon cost $1.79.

-Chip bags are in the back next to the 20oz pepsi bottles.  Frito Lay, Lays, and Tostitos are sold by the bag size, the big bags cost $3.49 a bag.

Business Marketing

Strategic Alliances

The PepsiCo company has many products under it besides the products with the pepsi logo on it.

PepsiCo has the world's largest showing of billion dollar food and beverage brands, including 18 different product lines that each generate more than $1 billion in annual retail sales.

In Feburary, PepsiCo will team up with Ocean Spray.

PepsiCo will distribute Ocean Spray products and sell several more ocean spray products that as well as the old flavors that include Apple, Orange, Ruby Red, Pinapple Peach Mango, and Strawberry Kiwi.

Developing a Global Vision

PepsiCo Goals & Commitments

- In 2009 Pepsi announced 11 global goals and commitments to help improve the well being of people in both developed and developing countries. PepisCo is focused working on products they make and on key policies and partnerships to help them state global nutrition challenges.

Some of the goals that PepsiCo is working on are:

I. Increase the amount of whole grains, fruits, vegetables, nuts, seeds and low-fat dairy in our global product portfolio.

II. Reduce the average amount of sodium per serving in key global food brands, in key countries, by 25 percent by 2015, with a 2006 baseline.

III. Reduce the average amount of saturated fat per serving in key global food brands, in key countries, by 15 percent by 2020, with a 2006 baseline.

IV. Reduce the average amount of added sugar per serving in key global beverage brands, in key countries, by 25 percent by 2020, with a 2006 baseline.

V. Display calorie count and key nutrients on our food and beverage packaging by 2012.

VI. Advertise to children under 12 only products that meet our global science-based nutrition standards.

VII. Eliminate the direct sale of full-sugar soft drinks to primary and secondary schools around the globe by 2012.

VIII. Increase the range of foods and beverages that offer solutions for managing calories, like portion sizes.

IX. Invest in our business and research and development to expand our offerings of more affordable, nutritionally relevant products for underserved and lower-income communities.

X. Expand PepsiCo Foundation and PepsiCo Contributions initiatives to promote healthier communities, including enhancing diet and physical activity programs.

XI. Integrate our policies and actions on human health, agriculture and the environment to ensure they support each other.

- These goals are to help PepsiCo provide food and beverages with ingredients that help consume healthier eating and drinking
- Show people to make better choices and live healthier
- Help address global nutrition challenges 

The Marketing Enivorment

                                                                    

PepsiCo Brazil wins Marketing Lide Award for Ruffles and Pepsi campaigns

- In the beginning of August, PepsiCo Brazil won two Corporate Marketing Lide awards for its “Ruffles: Do us a flavor” campaign (in the Promotional Marketing category) and Pepsi “It can be Pepsi” campaign (in the Product Marketing category).

- In Feburary the Ruffles Campaign was in its final stages.  Ruffles let costumers vote and suggest on new flavor chips.  Almost two million votes were counted which included regions like Australia, Turkey, U.K. and South Africa.  Brazil had the record number of consumer votes.

Ethical and Social Responsibility

Code of Conduct

-Since 1976 the PepsiCo conduct code has been updated regularly and it is in 42 different languages for there 44,000 in 70 countries to understand it.

-If an employee doesn't obey the conduct policy a variety of disciplinary actions depending on the type and seriousness of the matter and may lead to counseling, written warnings, reduction in annual compensation or annual bonus, failure to receive long-term compensation, cancellation of stock options and termination from the company.
Human Rights and Workplace Policy

-The PepsiCo states that the workers in the company have rights to personal security, a safe, clean and healthful workplace, and freedom from harassment or abuse of any kind.

-PepsiCo also gives the honesty and fairness for there employees to talk about there wages, benefits and other conditions.

Values & Philsosphy

Some of the values the PepsiCo provides are:

1. Caring for the customers and consumers
The success of the PepsiCo depends on a thorough understanding of the customers and consumers. PepsiCo does this to show how much the company cares.
2.Respecting others
The PepsiCo success also depends on the respect, inside and outside the company. PepsiCo requires people working together as part of a team. While the company is built on individual excellence they also recognize the importance and value of teamwork in turning there goals into accomplishments.

Strategic Planning and Competitive Advantage

By Janurary 1st 2012 PepsiCo attends on getting rid of a direct sale of full sugar soda drinks in primary and secondary schools around the world.

This strategy is to help the schools students decrease their calorie and nutritious beverages.

This strategy of non direct full sugar drinks in schools is currently taking place in Europe and Canada.

Overview of Marketing (Brief History)

-PepsiCo Inc. is founded by Donald M. Kendall, President and CEO of Pepsi-Cola and Herman W. Lay, Chairman and CEO of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham.
-Now PepsiCo is a Multi Billion dallor company, with over 100,000 of employees

Herman W. Lay

Overview of Marketing (Mission Statement)

Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.