Situation Analysis - Pepsi

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10/Oct/2012
Author: Bin Liu | ID #: U1037223|

Assignment # 2| A Completed Analysis of Marketing Plan for Pepsi New Zealand|

Executive Summary
This paper presents a completed marketing plan/analysis for Pepsi in order to assist it regain its “second leader” position in the soft drink market in New Zealand. The first half of this paper shows the situation analysis of Pepsi. In particular, the internal analysis focuses on the power of suppliers, buyers, new entrants, and product substitutes. The results show that the bargaining power of suppliers and buyers are not great, threat from new entrants are negligible but significant from the substitutes. The external analysis focuses on the economic, regulatory and industrial environments. The analysis of economics suggests that both the income growth rate and inflation rate over the next 4 years for NZ is positive. The outcomes of regulatory analysis recommend that the company should perhaps not use plastic bottles as they are hard to be recycled. The industrial competitiveness analysis suggests that Pepsi should develop wider product range to differentiate its’ products from the Coca-Cola. Following the external analysis is the SWOT analysis. Results from the SWOT analysis are as follows. First, the age of target group is between 12 and 50; second, winder range product development is important to maintain existing customers and attracts new customers; third, PepsiCo should focus on less-developed and developing nations.

With the knowledge of the marketing situation of Pepsi, a detailed marketing plan and strategies are discussed in the 2nd half of this paper. The goal of this marketing analysis is to help Pepsi regain its “second-leader” position in the soft drink market. Without introducing a completely new product, we propose that Pepsi should 1focus on the advertisements (as the result from Pepsi challenge shows that the consumers cannot really distinguish between Coca-cola and Pepsi once the brand name are removed), 2create an image of better taste through charging a higher price, 3increase the “per-shop” volume of Pepsi, and 4distribute their new products only to retailers at the initial stage in order to have effective control over the end price. The central focus of this marketing plan will be Auckland and Wellington as these two cities contain the majority of population in NZ.

Table of Contents
Executive Summary………………………………………………………………………….p 1

Introduction……………………………………………………………………………….….p 3

Internal Analysis……………………………………………………………………………..p 3

External Analysis………………..…………………………………………………………...p 6

S.W.O.T Analysis…………………………………………………………………………….p 8

II. Marketing Goal and Objective………………………………………………………......p 11

III. Target Market…………………………………………………………………………...p 12

IV. Product Strategy………………………………………………………………………...p 14

V. Pricing Strategy………………………………………………………………………….p 16

VI. Distribution Strategy……………………………………………………………………p 17

VII. Integrated Marketing Communication Strategy……………………………………….p 18

VIII. Marketing Implementation, Evaluation and Control…………………………………p 19

IX. Ethics, Social Responsibility and Sustainability Issues………………………………...p 20

References………………………………………………………………………………….p 24

Introduction
Extended from the previous essay, this second one continues to use PepsiCo Inc. as its example and presents a completed analysis of marketing plan for this giant cola maker. The structure of this report is as follows. In the first section, the situation analysis which conducted in the previous essay will be presented and discussed. In specific, the power of suppliers, power of consumers, threats of new entrants and substitutes, legal and regulatory framework, industrial competitiveness, and SWOT analysis are shown. Following that, the marketing goal and objective are stated and explained. In the third section, an examination of the targeted market is shown. The product strategy, pricing strategy, distribution...
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