Branding Strategy of Pepsi

Topics: Pepsi, Coca-Cola, Cola Pages: 31 (9539 words) Published: March 9, 2012


Branding is a way to differentiate a company, product or service from its competitors, and establish a personality that is both unique and appealing to potential customers. It is a multifaceted, multilayered process and discipline that aims at establishing long and profitable relationships with stakeholders. It begins with a branding strategy and is implemented throughout an organization and communicated to significant company stakeholders over time. It springs from a company's core - its vision and mission - and develops the corporate "story" in ways that relate and resonate with target market members. Branding builds stronger, longer relationships with customers. For those embracing the concept of "customer life value", branding is integral. A powerful, well-established brand also removes the product from the "commodity" category and often allows the company to operate without the need to participate in competitive price wars. Branding has taken on a greater significance in the past decade as companies begin to see their brands as assets - as valuable and as tangible as their systems and patents. So brands have become more than marketing slogans and icons today: they are now closely monitored by the CEO and CFO, and assessed by industry analysts and pundits. Today's accounting practices can actually value the brand as an asset on its balance sheet. Yet many businesses, particularly business-to-business marketers and service providers, have yet to accept, or even appreciate, the value of branding. The truth is every business, even a commodity supplier, is building a brand through their actions and their presence even if that brand is not being intentionally created and nurtured. They acquire a "position" in the minds of customers and prospects, a position or identity based solely on exposure and experience with the provider. With focus and action, these companies can enhance their brand and increase its value (Jelsema,M., 2007).

Marketing tells people about products, and awareness is far preferable to non-awareness. Sales promotions work, and digital marketing campaigns can be lots of fun. Creative ads get headlines and even win awards at Cannes.

Tomorrow's real branding magic is going to come from conceptualizing all business activities as branding: ingredients, mixtures, containers, manufacturing, distribution, display, replenishment, and support all commingled to provide uniqueness, competitive advantage, and behavioral prompts for purchase.

The following paper attempts to analyze the branding strategy of Pepsi both in global and Bangladesh context. The Carbonated Soft Drink (CSD) industry is a tight oligopoly with Pepsi and its chief competitor, Coca Cola, comprising 70% of the total market. In particular, the paper will examine how current actions by PepsiCo regarding differentiation, pricing, cooperation, and complements have affected their profitability in the CSD industry. Furthermore, the paper will give specific recommendations, with an emphasis on cooperation tactics and complements.

Literature Review

The American Marketing Association describes a brand as a “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” Technically speaking, then, whenever a marketer creates a new name, logo, or symbol for a new product, he or she has created a brand.

It should be recognized that many practicing managers, however, refer to a brand as more than that – defining a brand in terms of having actually created a certain amount of awareness, reputation, prominence, and so on in the marketplace.

Branding involves creating mental structures and helping consumers organize their knowledge about products and services in a way that clarifies their decision making and, in the...
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