The Pepsi Carbonated Soft Drink Consumer Demand Promotion

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Strategic Marketing Plan for the United States
The Pepsi Carbonated Soft Drink Consumer Demand Promotion

Executive Summary

A strategic plan for PepsiCo North America is hereby proposed as follows for the geographical region of the national United States for the Pepsi Soda Product promotion to consumers between the ages of 12 through 18 years of age. It will utilize a pull strategy through the distribution channels to stimulate demand for the Pepsi carbonated soft drink to the end users as defined to maintain Pepsi’s younger generation of consumers over the next two decades. The strategic plan will consist of a strategic alliance with The Walt Disney Company coupled with a pop star endorsement by Hannah Montana and Kanye West with multiple promotion communication channels and strategies over the next two (2) years. The primary competitor, Coca-Cola, has been entrenched in the North American beverage market and is most commonly consumed by older generations. As such, Pepsi has been typically been targeted to a younger audience. As the ‘Pepsi Generation’ ages, PepsiCo North America should take proactive marketing action into the younger audiences to maintain the younger generations of soft drink consumption for decades to come.

The Company History and Related Companies 1

PepsiCo (herein referred to as the ‘Parent Company’) was founded in 1965 via the merger of two major corporations, Pepsi-Cola and Frito Lay. Subsequently in 1998, Tropicana was acquired to add the family of brands under PepsiCo. In 2001, the Parent Company made yet another bold step in the merger with The Quaker Oats Company, which also then included the Gatorade Company. Notwithstanding the Parent Company being relatively young, several of the brand names under the PepsiCo umbrella have been in existence for over 100 years. Through the multiple brand acquisitions and developments PepsiCo is now a leading conglomerate owning significant market control and brand equity in consumer convenience foods and beverages. “PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $92 billion” (PepsiCo, 2007). Sales volumes are measured on the retail level to show success of the manufacturing due to the Parent Company utilizing a pull strategy for its multiple divisions and product lines with a combination of a push strategy. The current headquarters are located in Purchase, New York.

The multiple corporations within the PepsiCo Family are Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International, and Quaker Foods North America. Frito-Lay North America markets and sells to the subject geographical regions the following well known brands of convenience foods: Fritos, Lays, Cheetos, Ruffles, Doritos, Rold Gold, Tostitos, Sunchips, Munchies, Crackerjack, Go Snacks, Quaker Fruit and Oatmeal Bars, Quakers Corn and Rice Snacks, and even more. While Frito-Lay North America sells to business, its end user is a consumer who has demand for a snack food, or convenience food. These are typically found in grocery stores, gas stations, small markets, vending machines, public schools, and several other distribution channels. Several of these products are facing new market changes including a health conscious consumer movement. Thus, a great diversification of product lines within the PepsiCo Family is The Quaker Oats Company, merged in 2001, just on the cusp of the health conscious movement. Brands include Quaker Oats products, Aunt Jemima products, and Rice-a-Roni products. The Gatorade brand rights are legally owned by this Corporation, yet it is sold and marketed through PepsiCo Beverages North America. PepsiCo International markets and sells the North American product brands abroad, and in additional markets and sells the Mirinda, Walkers, Sabritas, Gamesa, etc. and several others in multiple countries (over 200). Each of these subsets of brands are developments of...
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