PepsiCo was first created in 1898 by Caleb Bradham who invented the soft drink formula then called Pepsi Cola. In 1965, PepsiCo International was founded. In 1986, PepsiCo purchased 7UP International which is the third largest franchise soft drink operation outside the United States. In 2001, PepsiCo announced a new joint venture formed in Egypt, combining the salty snack operations of Chipsy, the current market leader and Tasty Foods which was owned by PepsiCo. Today, PepsiCo is a world leader in convenient foods and beverages, with 2005 revenues of more than $32 billion and more than 157,000 employees. PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $85 billion. Many of PepsiCo's brand names are more than 100-years-old. PepsiCo offers product choices to meet a broad variety of needs and preferences ranging from the fun items to product choices that contribute to healthier lifestyles.
•PepsiCO has brand name equity which supports all its product lines including 7UP. •7UP is leader in the lemon lime segment in Egypt with 58% share •7UP is one of the key brands in Pepsi Cola Egypt is 30% of total companies volume •During 2004, 7UP was only lemon lime Carbonated Soft Drinks to carry marketing communication initiative in Egypt •According to consumer research conducted by AC Neilson, 7UP brand is number one refreshing beverage within CSD category •According to Usage and Attitude study 2004, 7UP is chosen the preferred CSD consumed with food •It is a thirst quenching drink
•Extensive distributional policy that leads its products to expand across all market sectors in Egypt. •Providing a variety of 7UP flavors such as 7UP Ice with refreshment of mint, 7UP Tropical. •7UP is provided in different bottle sizes
•7UP is available in regular and diet versions
•7UP is not expensive
•Fido Dido character is very popular and helps in brand awareness •Fido Dido target consumers through his unique quirky personality •Fido Dido has a strong equity in consumer mind, character and slogan are constantly recalled by Egyptian Consumers •Fido Dido’s character is consistent with today teens and young adults •2004, 7UP campaign in Ramadan witnessed great success and was chosen to be part of New York pool copies that would be launched in other markets •It is an UN-cola drink, it consists of soda and lime, it has no caffeine in it •It has been in the market for several years its roots goes back to 1920 worldwide •Has an image of healthy beverage because it helps in digestion
•Limited and nearly nonexistent promotion for 7UP before 2004 •Lost the youth, initially their target market
•Lost image of being young and cool
•Egypt is considered high consumption market of CSD because of its hot weather •Health trend among Egyptian consumers is growing and the increasing number of health-conscious consumers will allow 7UP by its UNcola image to have a favorable position in the market. •The trend toward weight loss has been increasing among A class target market (mainly youth) which will increase the usage of 7UP diet •There is an opportunity in month of Ramadan to increase the awareness of 7UP and get it closer to the youth. By the excessive T.V s programs, shows and ads. •There are several youth events being held and 7UP can be a main sponsor to grab youth attention •There are no current promotions or advertisements for other direct competitors such as Sprite. •Sprite does not have a character like Fido Dido so it is not easily recalled. •Life style is changing toward fast food which CSD is usually consumed with •The trend for coffee shops as a place to hangout so 7UP could be consumed more regularly
•Sprite is dealing with large accounts like McDonalds to sell Sprite as a lemon drink. •The presence of substitutes to soft drinks such as...