Mkt1002 Market Report

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CONTENTS

1. Overview of the market: Pepsi
o 1.1 – Position in the market
o 1.2 – Recent market trends
o 1.3 – Influences from the macro environment
o 1.4 – Customer profile
o 1.5 – Decision making process
2. Overview of the market: Honda Civic
o 2.1 – Position in the market
o 2.2 – Recent market trends
o 2.3 – Influences from the macro environment
o 2.4 – Customer profile
o 2.5 – Decision making process
3. Marketing communications
o 3.1 – Objectives
o 3.2 – Marketing Communication
o 3.3 – Pepsi
o 3.4 – Honda Civic
o 3.5 – Sponsorship
4. Conclusion

References

1 - Overview of the market: Pepsi
1.1 – Position in the market
Pepsi is a fast moving consumer good. The brand is a market leader in the soft drink industry, with only Coca-Cola ahead of it. These two companies dominate the market for carbonated soft drinks. In 2010, Pepsi had a 13.5% share of all take-home value sales (Mintel, 2011:38). Pepsi has been an established brand since its introduction in 1898, and is in the maturity stage of the product life cycle.

1.2 – Recent market trends
Carbonated soft drinks have the highest market share of sales to adults in the UK (Mintel, 2011:27). The soft drink market generally sees a rise in sales over the warm summer months, but still pull in good sales results all year round (Key Note, 2011:4). While carbonated soft drinks continue to dominate the market, the introduction of new competitors has begun to shrink Pepsi’s user base (Mintel, 2011:27). The rise in popularity of other soft drinks, such as smoothies, flavoured waters and energy drinks has given the consumers a wider range of product choice. The population’s growing concern for living a healthy lifestyle has led to a greater demand for healthier products, making them more likely to choose one of the so called healthier alternatives rather than the negatively perceived, sugary carbonated drinks. Pepsi have responded to social trend towards health by placing more focus on their diet/sugar free variations, Pepsi Max and Diet Pepsi. Pepsi aims to have its healthier variations make up 65% of their sales by 2015 (Mintel, 2011:41)

1.3 – Influences from the macro environment
While the focus on health issues may push consumers towards alternative products, the state of the economy has the opposite effect, and tends to draw customers back to fizzy drinks like Pepsi. While the increasing costs of the raw materials used to produce the packaging for Pepsi have caused the price to rise, they are still considered a cheaper alternative to other drinks like bottled water and juices, which can be seen as too expensive for what they are, especially when the economic crisis has left consumers with less disposable income.

Environmental issues are another factor that Pepsi have had to take into consideration. Pepsi have a range of pledges in place to reduce their carbon footprint and promote an environmentally friendly brand image to fit in with consumers’ attitudes towards the environment. An example of their pledges to achieve environmental stability is the replacement of 46% of their distribution vehicles with low emission vehicles. Pepsi claim to strive to use energy from renewable sources, and to reduce the use of fossil fuels during the production process. They aim to be ‘fossil-free’ by 2023 (PepsiCo, 2009/10)

Pepsi are impacted by a range of political influences. The Food Standards Agency have restrictions on the use of some artificial sweeteners and colourings, which impacts Pepsi’s sugar free variations as they’re restricted on what sweeteners they’re able to use. Pepsi’s marketing campaigns have also been impacted by the Ofcom regulations about advertising unhealthy food around programmes aimed at children...
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