Hot Ice Tea

Marketing Plan

Hot Ice Tea

Table Of Contents

Sr. 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

Particular Executive Summary Company Description Situation Analysis & Market Summary Trends Profitability & future growth potential Competition Target Market Distribution Positioning & Advertising SWOT Analysis Objectives & Goals Marker Strategy • Segmentation • Targeting • Positioning • 4 P's Action Plan Budget Control

Sha yan Maqsood L3F08MCOM5301

Page No. 02 03 04 05 06 06 08 08 09 10 13 14 14 16 17 17 30 31 32

Page 1 of 33

Marketing Plan

Hot Ice Tea

EXECUTIVE SUMMARY The following Marketing plan is about to introduce the new innovative product by Pepsi which is named as Hot Ice Tea. This will be a convenient product which will be readily available to quench the thirst of our customers and will also give the nutritional benefits of Tea. The main characteristics of this product will be the hot and cool nature of the product i.e. it can be served as a hot drink as well as a hot drink; in both way it will give the same satisfaction to the customer and there will be no weather constraint for this product and it can be used through out the year. So the Hot Ice Tea will not be a seasonal drink and this will be the main source of success of the product. The product will be introduced to capture the 20% market share in the category of functional drinks market. The market is still unserved for this segment and company will be going to introduce a new a market trend as well as going to challenge its competitors. This product will lead the company in functional drink market and will carry the company on the top spot. The target market for the product will be the health conscious and energetic customers. Our product will broadly describe the main benefits of tea, Studies continue to show the beneficial properties of teas, with health benefits ranging from lower cholesterol levels to improve arterial health and decreasing chance of cancer. This positive press has definitely increased the demand for tea. In the first year of operation the Hot Ice Tea will be introduced in Pakistan because there are more potential and enthusiastic customers and we can get result more fastly about the success of product. The Company will increase its market share through targeted advertising to increase the number customers who want convenience and are looking to have a drink of unique nature which will give them taste, energy and the nutritional benefits of tea.

Sha yan Maqsood L3F08MCOM5301

Page 2 of 33

Marketing Plan

Hot Ice Tea

COMPANY DEESCRIPTION

PEPSI INTERNATIONAL HISTORY PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International; the beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North America and PepsiCo Beverages International; and Quaker Foods North America, manufacturer and marketer of ready-to-eat cereals and other food products. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of PepsiCola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.would entertain the listener with the latest musical selections rendered by violin or piano or both. The new name, “Pepsi Cola”, is derived from the two of the principle ingredients, Pepsin and Kola Nuts. It was first used on the August 28. At that time, Bradham’s advertising praises his drink as “Exhilarating, invigorating, aids digestion”. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. Outside the United States, Pepsi-Cola Company's soft drink operations include

Sha yan Maqsood L3F08MCOM5301

Page 3 of 33

Marketing Plan Hot Ice Tea the business of Seven-Up International. Pepsi-Cola beverages are available in more than 190 countries and territories. In Asia, they selected Lahore to make their regional office. This was done in 1970. This regional office is monitoring all the operations carried out in South West Asia. As in Pakistan, they only entered beverage industry. They have eleven bottlers covering whole Pakistan. The plant operating here is Riaz Bottlers (Pvt) LTD. This plant was established at Lahore in 1974. The total capacity of the plant is 30,000 cases per day. They have four filling lines in the plant operating on the three shift bases. Each shift is of eight hours. They have permanent work force of 750 people and they employee approximately 1000 people more on temporary basis during summer season. (Source www.pepsico.com)

Situation Analysis Pakistani lifestyle and work habits have made convenience a necessity. As employers demand for productivity from their employees, consumers are more pressed for time. In addition, the shaky economy has made Pakistani fear for their jobs; thus, any product that can fill the consumers' need for convenience and speed are almost automatically embraced into the Pakistani life style. Hot Ice Tea offers a unique drinking experience to its consumers. Market Summary Industry Analysis In 2007, the tea industry reached the $1.7 billion category and it is expected to continue growing indefinitely (Mintel2007). Market analysts believe the tea industry will continue to boom and is not expected to reach saturation level in the near future. The favorable movement in the tea

Sha yan Maqsood L3F08MCOM5301

Page 4 of 33

Marketing Plan Hot Ice Tea industry can be attributed to two major factors: a) consumers need for convenience and time-saving services; and b) the positive press given to tea. Trends For the last decade, the health benefits of tea have gained wide coverage in the media. Studies continue to show the beneficial properties of teas, with health benefits ranging from lower cholesterol levels to improve arterial health and decreasing chance of cancer. This positive press has definitely catapulted the demand for tea. Both the need for convenience and

positive press on

tea have spurred an

increase in sales of tea products, specifically ready-to-drink (RTD) teas sold in single-serve containers Recognizing this trend, various companies in the tea industry have come up with innovative products to take advantage of the booming market for ready-to-drink teas. Lipton tea, one of the global leaders in refreshment brands, launched new products to meet the growing the need for ready-to drink teas and introduced innovative product line to capture the health-conscious market. Today, while the soft drink industry’s value has increased , the volume sales of carbonated soft drinks has declined due to a large proportion of consumers who are opting for the trend towards healthier alternatives in the functional drink segment (energy drinks, smoothies, milk & juice drinks, sports drinks) as well as bottled juices and water. Companies have been actively engaged in new product developments in order to counter the growing concerns about negative health impacts of high-fructose drinks, but also to increase the demand in a market where product offerings are quickly maturing. New flavor introductions and health-conscious formulations have been launched in an attempt to offset the decline in carbonated soft drink sales. The functional market is expected to show sustained growth and consumer interest in the

Sha yan Maqsood L3F08MCOM5301

Page 5 of 33

Marketing Plan future years

as

consumption

shifts

to

trendier,

healthier

Hot Ice Tea and more

sophisticated product.

Profitability & future growth potential In 1993, Concentrate Producers earned 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a total industry profitability of 14%. While the functional drinks sector only accounts for 3.7% of the total soft drinks sales in 2004, estimates are forecasting a growth of 7.3% in sales and 11.0% in volume consumption by 2009.

(Source wikipidia)

Competition Pepsi's top competitors for the soft drinks industry are coca cola (43.6%) and Cadbury-Schweppes (15.8% of market), which combined, represent about 58% of the total market. Pepsi's share is 42.7% of the total soft drinks market. In the functional drinks sector, PepsiCo is the current market leader with 60.5% of the market shares in 2007. Coca-Cola Co is second with 32.8%. Hot Ice Tea will launch into a currently un served subset of that market (RTD “Ready-To-Drink” Hot Ice Tea), which is until now un existing. It is anticipated that the following brands could potentially compete with Hot Ice Tea in the functional drinks market: Brisk, Lipton Iced Tea, Sobe (owned by PepsiCo),

as

well

as

Snapple’s

and

Hawaiian

Punch

(owned

by

Cadbury/Schweppes). Hot Ice Tea also creates a potential situation for cannibalism with Pepsi's very own brands of iced tea and other functional drinks.

Sha yan Maqsood L3F08MCOM5301

Page 6 of 33

Marketing Plan Hot Ice Tea Consumers firstly decide that they are going to have a soft drink. Then they compete brands with each other. Like they compete Coke with Pepsi and Sprite with 7up and team .So the major competitor of PEPSI is Coke. When they motivate to any other brand or on PEPSI it’s in instinct basically that based on messages derive certain feelings. But PEPSI thinks in a different way, they believe that RC Cola, new coming AMRAT Cola, and all juices, even they take water and tea as their competitors. DIRECT COMPETITOR COCA COLA is the direct competitor of PEPSI and all other soft drinks in the market. The Coca-Cola Company’s core undertaking is to benefit and refresh everyone it reaches. Founded in 1886, we are the world’s leading manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups, which are used to produce nearly 400 beverage brands that make up for our wide portfolio. Our corporate headquarters are established in Atlanta, and we are holding local operations in over 200 countries around the world. Our activities cover all sectors of the beverage industry. We are the second leading player in functional and Asian specialty drinks, while ranking number one in value for the ready-to-drink tea sector.

(Company source)

INDIRECT COMPETITOR All the tea brands and water is in indirect competition with PEPSI. Source: (PEPSI website)

Sha yan Maqsood L3F08MCOM5301

Page 7 of 33

Marketing Plan

Hot Ice Tea

TARGET MARKET There are two major target markets for ready-to-drink Hot ice tea. •

One group is the consumers on the go. These are the employees, students, and other consumers who lead a busy lifestyle. The hectic Pakistani lifestyle demands for optimize productivity with lesser timeconsumption. Thus, there is a need for products that are accessible and readily available. Convenience has dominated the market, particularly the food and beverage industry.

•

The other group is made up of health conscious consumers, specifically the younger who demand anything healthy. The positive reviews as well as the studies on the benefits of tea drinking have stirred an interest in tea drinking.

Distribution The current market for Hot Ice Tea is fragmented, since the distribution is restricted to local outlets and selling points such as counters and small Hot Ice Tea shops in scattered locations. However, direct competition from these local players is not anticipated, since the marketing roll-out will initially emphasize on product awareness and both sales channels do not reach or serve the same market (retailing vs. counter/restoration). A strong distribution system already exists with PEPSI, since partnerships and channels are already in place. This will facilitate the product’s reach into its target market. 1. Retailing 2. Wholesaling

Sha yan Maqsood L3F08MCOM5301

Page 8 of 33

Marketing Plan

Hot Ice Tea

Positioning “Hot Ice Tea” will be a bottled beverage and will be positioned as the only ready-to-drink Hot Ice Tea product available on the market. The beverage will have a differential advantage that it can be drink as hot drink and can be taken as cold drink. It will bring an entirely unique drinking experience to its consumers. It will present itself as a funky and unusual alternative to traditional tea while providing the great taste of authentic fruit juice in an attractive and convenient packaging. (www.pepsico.com) Advertising •

Informative Advertising

There will be Informative Advertising during market of Hot Ice Tea and that will help company: 1. Informing the market of a price 2. Describing available services 3. Correcting the false impression 4. Building a brand and company image 5. communicating customer value

•

6. Telling

market

about

a

new

product 7. Explaining

hoe

the

product

works

8. Suggesting

new

uses

for

a

product

Persuasive Advertising

It will help marketers to: 1. Building brand preferences 2. Encouraging switching to your brand 3. Changing customer's perception of product attribute 4. Persuading customers to purchase now 5. Convincing customers to tell others about product Sha yan Maqsood L3F08MCOM5301

Page 9 of 33

Marketing Plan

Hot Ice Tea

SWOT Analysis STRENGTHS

• • • • • • •

Pepsi has a broader product line and outstanding reputation. Merger of Quaker Oats produced synergy across the board. Record revenues and increasing market share. Lack of capital constraints (availability of large free cash flow). Great brands, strong distribution, innovative capabilities Number one maker of snacks, such as corn chips and potato chips PepsiCo sells three products through the same distribution channel.

OPPORTUNITIES • • • •

Food division should expand internationally Noncarbonated drinks are the fastest-growing part of the industry There are increasing trend toward healthy foods Focus on most important customer trend - "Convenience".

(Source PEPSI web site) WEAKNESSES

• Pepsi hard to inspire vision and direction for large global company. • Not all PepsiCo products bear the company name • PepsiCo is far away from leader Coca-cola in the international market – demand is highly elastic.

THREATS • F&B industry is mature • Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market e.g. in India • Over 50 percent of the company's sales come from Frito-Lay; this is a threat if the market takes a downturn • PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft foods (because of broader product line) which are well-run and financially sound competitors. • Size of company will demand a varied marketing program; Social, cultural, economic, political and governmental constrains.

Sha yan Maqsood L3F08MCOM5301

Page 10 of 33

Marketing Plan

Hot Ice Tea

SWOT Analysis of Pepsi Co. Strength • Pepsi has a broader product line and outstanding reputation. • Merger of Quaker Oats produced synergy across the board. •Record revenues and increasing market share. • Lack of capital constraints (availability of large free cash flow). •

Great brands, strong distribution, innovative capabilities

Number one maker of snacks, such as corn chips and potato chips • PepsiCo sells three products through the same distribution channel. For example, combining the production capabilities of Pepsi, Gatorade and Tropicana is a big opportunity to reduce costs, improve efficiency and smooth out the impact of seasonal fluctuations in demand for particular product. Weakness • Pepsi hard to inspire vision and direction for large global company. • Not all PepsiCo products bear the company name • PepsiCo is far away from leader Coca-cola in the international market – demand is highly elastic. Sha yan Maqsood L3F08MCOM5301

Page 11 of 33

Marketing Plan

Hot Ice Tea

Opportunity • Food division should expand internationally • Noncarbonated drinks are the fastest-growing part of the industry • There are increasing trend toward healthy foods • Focus on most important customer trend - "Convenience". Threats • F&B industry is mature • Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market e.g. in India • Over 50 percent of the company's sales come from Frito-Lay; this is a threat if the market takes a downturn • PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft foods (because of broader product line) which are well-run and financially sound competitors. • Size of company will demand a varied marketing program; Social, cultural, economic, political and governmental constrains.

Sha yan Maqsood L3F08MCOM5301

Page 12 of 33

Marketing Plan

Hot Ice Tea

Objectives and Goals Company is centered on these objectives: With the expected growth of the billion dollar ready-to-drink ice tea market, Hot Ice Tea is poised to capture a bigger share of the market with

an aggressive

marketing strategy: from packaging to advertising.

Short Term Goals: Improve market presence by 20%

Short-Term Objectives Aggressive Marketing Strategy PepsiCo can take advantage of the positive press on the health benefits of tea to boost the sales of its hot ice tea product line. The company can use recent studies on the health benefits of tea as the basis of its press releases and advertising campaigns. Improve Packaging The Hot Ice Tea will be introduced in two sizes: the 250ml bottle and 1/2 liter bottle. PepsiCo can come up with other packaging sizes to ensure that consumers will have other choices and that Hot Ice Tea will be easily and readily available to consumers. Improve Shelf Presence PepsiCo can make a deal with retailers ensure retail shelf space and prominent positioning for Hot Ice Tea.“ Although an average shopper may not notice what brands are positioned in prominent places on shelves or how much room is allotted to each manufacturer, shelf space and positioning as make or break factors in introducing new products”

Long-Term Goals: World Number One ready-to-drink ice tea

Long-Term Objectives: Product Innovation PepsiCo must continue its innovative research and development strategy to come up with new flavors and products. PepsiCo has extensive research facilities on product improvement. The company can use its resources and professional expertise to come up with new flavors that will suit the continuous demand for healthy ready-to-drink hot ice tea. With aggressive marketing strategy and product positioning, Hot Ice Tea is ready to take the global lead in ready-to-drink tea industry.

Sha yan Maqsood L3F08MCOM5301

Page 13 of 33

Marketing Plan

Hot Ice Tea

MARKETING STRETEGY SEGMENTATION

Segmentation variables for consumer market of Hot Ice Tea TYPE

VARIABLES

PARTICULARS

World region or country

Nationwide (all provinces and territories) with emphasis on urban / metropolitan areas, and adapted strategies for all geographical groups

City or Metro size Density Climate Age Gender Family size

5000-20,000,upto 400,000 and over

Family Life Cycle Income

Young ,single married under 18 older Under 10,000 and over 100,000

Occupation

Professional ,proprietors, clerical sales persons Grade school or less high school ,graduate and above All (Asian ,Hispanic, black ,white) Generation y

Education Race Generation Social class Life style Personality

Sha yan Maqsood L3F08MCOM5301

Urban, suburban Northern southern eastern western

12-19,20-34,35-49,50-64,65+ Male , Female 1-2,3-4,5+

Working class, middle class, upper middle class, lower uppers ,upper uppers Achievers and strivers Compulsive ,authoritarian gregarious, ambitious

Page 14 of 33

Marketing Plan

Hot Ice Tea Occasions Benefits User Status Usage rate Loyalty status Readiness stage Attitude towards product

Sha yan Maqsood L3F08MCOM5301

Regular occasion and Special occasion Quality, convenience, nutritional Non-user, regular user, first time user Light user , medium user , heavy user None , medium , strong Un aware , aware ,interested , intended to buy Positive, enthusiastic , indifferent

Page 15 of 33

Marketing Plan

Hot Ice Tea

TARGETING Segment identification: RTD (Ready-to-drink) bottled Hot Ice Tea, to be established within the Functional Drinks sector. Segment needs: The product will have both physiological need (hydrating and nutritional value) and social needs (perception of a social, fun drink with a sense of belonging within peer consumer groups) Segment trends: The current trends include a shift away from junk foods and carbonated drinks, a growing interest for healthier / beneficial products for the “mind and body” the trend towards the availability of on-the-go products for those with an active lifestyle, as well as the trend for personalization through customization

(or

for

beverages,

through

introduction of flavours.

variety-seeking

in

a

wide

(www.oppapers.com)

Segment growth potential: Statistical reports anticipate a segment growth of 1.72% over the next 9 years (2015) for the 10-29 years old subsets. (www.oppapers.com)

Sha yan Maqsood L3F08MCOM5301

Page 16 of 33

POSITIONNING Positioning strategy The only RTD bottled Hot Ice Tea available. Funky & eye-catching bottle, functional packaging, premium-priced, cool, new and unusual, unique drinking experience, aspects of play variety of flavors, sweet, refreshing, for hip & young people, healthier alternative to heavy-sugar drinks. POSITIONING STATEMENT To young active soft drink customers who have little time for sleep, Hot Ice Tea gives you the nutritional benefits of tea and keep you awaken. You can take it while on the go, now it's your choice that you can chill it and you can hot it. There is no boundary of season now because Hot Ice Tea can be taken from both aspects hot drink and cold drink.

PRODUCT PRODUCT STRATEGY The core o Hot Ice Tea beverage in a pre-bottled, ready-to-drink format. The actual product The Hot Ice Tea will be a convenience product.

o Packaging and labeling:

1. Twist Cap 2. freshness seal 3. Easy to grab bottle 4. Flavor 5. logo of Hot Ice Tea

6. Slogan 7. Ingredients

8. PEPSI product 9. 250 ml bottle 10.Nutritional Details 11.Sweetened or Diet

o Branding: Colorful, aspect of play, round shaped, prominent Hot Ice Tea logo written in modern font.

o Trade name: Hot Ice Tea ™, a PEPSI product o Brand personality: Energy, funky, cool, functional, original, funny, healthy, etc.

o Brand equity: PEPSI provides a quality, consistent, innovative and accessible soft drink reputation.

o Product life cycle:

Hot Ice Tea is a low-learning product. With a strong marketing campaign, “sales [will] begin immediately and the benefits of the purchase are readily understood” Since Hot Ice Tea is prone to product imitation, Pepsi's strategy is to broaden distribution quickly, which is currently feasible thanks to the company’s high manufacturing capacity.

o Product class: Food & beverage  Soft Drinks  Functional Drinks Hot Ice Tea follows the practice of product modification PEPSI is introducing an existing beverage (Hot Ice Tea) but redefines the drink with a new, more convenient package.

Hot Ice Tea will now become a widely available drink in multiple retailing (distribution) channels.

Product Quality •

Performance Quality

The performance quality of Hot Ice Tea will be that it will produce what it functions, and the main function of Hot Ice Tea is the hot and cool nature of product. Customer can take it as a hot drink by got hot by oven and can take it as cool drink by chilling it in deep freezer it is up to the customer. •

Conformance Quality

The conformance quality of Hot Ice Tea will be that it will be free from any defects; it will deliver its targeted performance and quality

PRICE PRICE STRATEGY

The price strategy that will be undertaken should consider the following aspects: 1. Consumer demand 2. The product lifecycle 3. Potential substitutes Customer demand Customer demand is a crucial factor which is driven by tastes, income and availability of others similar products at a different price. For a lot of consumers, value and price are highly related: ‘’the higher the price, the higher the value’’. Consequently, Pepsi's intention to position Hot Ice Tea as a unique, innovative and attractive product gives it a certain control over Hot Ice Tea price. To be able to implement higher pricing though, the minimization

of

the

non-monetary

costs

to

customers should also be include along with awareness of the product (notably by advertising) and value (benefits). The product lifecycle The company should take advantage also to the fact that the newer the product and the earlier in its lifecycle the higher the price can usually be. It ensures a high profit margin as the early adopters buy the product and the firm seeks to recoup development costs quickly and it also brings a certain prestige to the product. •

(Source netmba.com)

Product development

It begins when the company finds and develops a new product idea. During product development, sales are zero and the company's investment costs mount.

•

Introduction

Is the period of slow sales growth as the product is introduced in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction. •

Growth

Is a period of rapid market acceptance and increasing profits . •

Maturity

Is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increased marketing outlays to defend the product against competition. •

Decline

Is the period when sales fall off and profits drop.

(Ref. from book)

Potential substitutes PEPSI is constrained by the monopolistic market in which it competes. The main characteristic however is product differentiation. Pricing strategy

The point here is that PEPSI can not set a price that is too high because competitors will be attracted by potential profits and will follow by a lower price.

After having taken all the important factors into consideration, there

are five price-level fixing approaches seem appropriate.

1. Cost Based Pricing One of the central objectives of this project being to become the market leader in functional drinks, PEPSI is willing to stay among the top competitors, if not becoming the greater, by achieving a certain target profit. This could be obtained by establish a price that will largely cover variable and fixed costs while bringing tremendous profits. 2. Value Added Pricing Competitors and potential substitute's prices can also be part of the strategy. Having a higher price could make customers aware of the additional benefits and the higher quality of Hot Ice Tea.

3. Value based Pricing The company sets its target price based on customer perceptions of the product value. The targeted value and price then drive decisions about product design and what cost can be incurred. As a result pricing begins with analyzing consumer needs and value perceptions, and price is set to match consumer's perceived value.

4.

Market Penetration Pricing

The company can set a low price for a new product in order to attract a large number of buyers and a large market share. 5.

Break-even pricing

The company has to make some strategies for break-even prices, setting prices to break even on the costs of making and marketing a product; or setting prices to make a target profit.

PROMOTION PROMOTION STRATEGY Objectives: •

To initiate strong awareness about the launch of Hot Ice Tea throughout Generation Y (10-29 years old) consumers as well as their parents.

•

To win market shares over our top functional drinks competitor, PepsiCo.

The promotional activities will convey the clear message that “Hot Ice Tea is a healthy drink for sporty and young people who simply enjoy taking care of their body and life.” Concepts: •

“Think outside the bubble”: Be Bold, Be Original, Be Different, Be Yourself.

•

“A good spirit in a good body.”

•

“For

the

themselves.

out-of-the-ordinary

individuals

who

like

to

challenge

Media selection: Before choosing the appropriate Medias, it is important to note that Generation Y consumers only give partial attention to media. However, they can be reached through integrated programs. They are typically using more than one communication media at a time; a behaviour that is often called “multitasking”. This group of consumers doesn’t give its full attention to one single message, but rather uses continuous partial attention to scan the media. Marketers can still communicate with Generation Y by using a variety of targeted promotional tools. Another important tactic to reach our target market is through “Hot Ice Tea” marketing, which PEPSI will heavily use in this campaign (campus, contests). Advertising: Output Television Radio Magazines Internet

Examples GEO TV. ARYONE DIGITAL.AAG TV FM100,FM103,FM106 TIME MAGAZINE ,akhbar e jahan ,family Banners on selected websites (gaming, sports, Google, yahoo etc.)

Outdoors

Billboards and prints in select areas including:  Campuses, transportation (bus, metro, stations)

Personal

 Tourist areas in high seasonal periods Direct contact with retailers, sales kit strategies to be

selling Public

explained later in the text. Stands or special displays and events in schools, malls,

relations Publicity

sports events (i.e. IPL SEASON 2), sponsorship activities Conferences, press releases (print and online), marketing through TV coverage

Justifications for advertising selections -TV:

Most viewed channel for now a days are geo ,Ary one world and Aag tv and specially etc and MTV are the most viewed channels by teen age groups. TV communicates with sight, sound and motion, which is needed for HOT ICE TEA. It is the only media that can reach 99% of the homes at once. PEPSI has the budget to cover the high costs of this media. -Radio: FM 100 ,FM 103 ,FM 106.2 AND FM 101 are the most popular fm radio stations which are equally listened by every age group. Radio is an already segmented medium. There are many radio stations in Pakistan. The average University or college student is a surprisingly heavy radio listener and spends more time during the day listening to radio than watching network television we could also use of “Interactive radio” as Pepsi has already done in the past. -Magazines: We should take advantage of the fact that magazines have become a very specialized medium. There are many consumers' magazines in Pakistan. Good color production is also an advantage that creates strong images which is the purpose of PEPSI with its HOT ICE TEA brand. Each magazine’s readers often represent a unique profile.

Reaching: -AKHBAR E JAHAN -FAMILY MAGAZINE -DEFENCE JOURNAL

(is the largest selling Urdu magazine in the world)

-YOUNG WORLD

(weekly magazine for young people)

-HUMSAFAR -PAKISTAN PUNCH -SHE MAGAZINE

(for young girls)

(www.allyoucanread.com) -Internet: Online advertising is similar to print advertising in that it offers a visual message. It also has additional advantages; it can also use the audio and video capabilities. As we are targeting our ads to young outgoing people, sound and movement may attract more attention from viewers and has the unique feature of being interactive.

Interactive media would offer PEPSI the

opportunity to reach younger consumers who have developed a preference for online communication. -Outdoor: Billboards in specific geographical area would allow us get a good reach and frequency. It is a low cost and flexible alternative. (Campus, malls, Bus and metro stations)

Promotional Mix: •

Contests: “Win another Hot Ice Tea flavour”, “Uncover a secret code underneath the bottle cap and win sporting goods and electronics by logging on the website”,

“Win a trip for the 2009 ICL IN INDIA”. (Arguments: It will increase consumer purchases and encourage consumer involvement with the product).

•

Samples: Distributed in supermarkets, school/universities. Samples are a way to avoid product resistance since people are not used to find bubbles in their drinks. Arguments: It will encourage new product purchases and it represents low risk for consumers since they get it for free. They have nothing to loose by trying it.

•

Point-of-purchase: In supermarkets (to reach the parents of generation Y). Arguments: It is also a mean to increase product trial and provides a good product visibility.

•

Others:

In subsequent years, engage in product placement in TV shows or movies. Trade oriented:

•

Allowances and discounts:

Case allowance (Arguments: The “free goods” approach will be used so it can encourage retailers to buy more of the product to get a certain amount for free).

•

Cooperative advertising:

To encourage retailers to buy our product and to maintain our high level of advertisement that consumers expect from PEPSI.

Other considerations: •

Scheduling of the advertising:

Pulse scheduling (promotional presence year-round, but emphasized and intensified before and during summer). IMC (integrated marketing communication)

(source beverage digest)

Target Audience: •

Intermediary: Personal selling will be more often used

•

Ultimate consumer: PEPSI will use more of mass media because the amount of potential buyers is large.

PLACE PLACE (DISTRIBUTION STRATEGY) Hot Ice Tea will be distributed through these channels: supermarkets, convenience stores, independent food stores, discount stores, multiple grocers, direct sales.

ACTION PLAN

Step

Output

Period of time

1

Personal selling 1st month to 2nd month

2

Radio spots

3

4

5

Magazines ads

Television spots

Point of purchase

Arguments To make Pakistani retailers aware of

Hot Ice Tea

so they can order it in time

2nd month to mid of 3rd Radio is the most listened media by students and month

peoples on the go

Mid of 3rd month to 4th month

The target market will then match an image with the name of the product more easily. The recognition of

Hot Ice Tea will be faster.

Mid of 3rd month to 4th To send a wide message over Pakistan that month

Ice Tea is now available. Making a special section for the

th

Hot

th

5 month to 6 month

Hot Ice Tea in

Grocery store will help the new potential buyers to find our product faster and more easily. Putting adds in specific places where Generation Y

6

Outdoors

Mid of 3rd month to 4th month

hangs out will create an increased awareness of

Hot

Ice Tea We will use special events (sports and others) to

7

Public Relations

6th month to 7th month

8

Contest

7th month to 8th month

9

Publicity

All the time

promote

Hot Ice Tea and also to get in touch with

our potential market. It will allow PEPSI to interact with our Generation Y Consumers. We will use contest to give a second "push" to the sales of the Hot

Ice Tea.

Use of TV ads and news to make the general public aware of the existence of Hot

Ice Tea.

MARKETING DEPARTMENT HIRARCHRY CHART

MARKETING DEPARTMENT DIRECTOR MARKETING SALES MANAGER ADVERTISING MANAGER DISTRIBUTION MANAGER BRAND MANAGER MARKET RESEARCH MANAGER

BUDGET The estimated cost that will incurred while marketing of Hot Ice Tea is about 10 crores or 10 billion rupees for one year. The details are as follows: Media

Explanation of estimated cost that will incurred for 1 year

T.V

Adds on TV with different celebrities for one year will cost approx. 7 crores Add in leading news papers will cost approx. 2 million

NEWS PAPER RADIO MAGAZINE BILL BOARDS FREE SAMPLING TO RETAILORS

CONTESTS

For 30 second add for 2 months will cost approx. 380,400 For 1 month advertising in Akhbar e Jahan will cost approx. 200,000 For 3 bill boards on main locations acquiring will cost approx. 10.5 million Free sampling to main retailers will cost approx. 300,000 After 6 month of operation if there will be a need to give a 2nd push to our sales and a contest has to be arranged that will approx. cost about 5million

CONTROL In the first month of operation Management will over view that whether the Marketing goals and objectives are going in right direction or not if not than what went wrong and what are differences between actual and expected performance. This may require changing the action programs or even changing the goals. •

Operating control

It involves checking ongoing performance against the annual plan and taking corrective action when necessary. It will ensure us that the com-any achieves the sales, profits and other goals set out in annual plan. It also involves determining the profitability of product. •

Strategic Control

It involves looking at whether the company's basic strategies are well matched to its opportunities. Marketing strategies and programs can quickly become out-dated and there will be need of periodically reassess its over all approach to the market-place. A major tool is marketing audit. Marketing Audit There will be a need of monthly marketing audit regarding current activities and sales volume. It will cover all the marketing areas of business. It will include audit of: 1. Marketing Environment 2. Marketing Strategy 3. Marketing Organization 4. Marketing Systems 5. Marketing Mix 6. Marketing productivity 7. Profitability Measuring and Managing return on Marketing Investments

After six months of operation we have to measure that whether our investment is being spent well or not? Are we getting targeted Return on Investment or not? Return on Investment The net return from a marketing investment divided by the costs of the marketing investment. It measures the profits generated by investments in marketing activities.

(Source principles of marketing)

The consumer purchase decision process Purchase situation

Social influences

Psychological variables

Need motivation Routine problem solving

Extensive problem solving Economic Needs Search for information on solution

Evaluate alternatives and decide

Purchase product Post-purchase evaluation

Postpone decision