Managing the Total Marketing Effort

Topics: Marketing, Strategic management, Milk Pages: 11 (3053 words) Published: August 24, 2008
1.0 Executive Summary - Pepsi Cola Group is a well established public company that develops, manufacturers, and distributes beverages worldwide, including products for our target market, such as Ben & Jerry’s Milkshakes and many other flavored drinks. We believe that a new market exist for flavored milk; we plan to utilize our global marketing expertise to aggressively pursue this market. Marketing of the flavored milk beverage will be vital to ensuring that children are given a healthy alternative to soda and giving Pepsi a chance to make a difference in the community. After noticing the widespread of obesity amongst kids in the sixth through seventh grade, Pepsi realized that there was a need to produce a healthy and refreshing alternative drink to replace soft drinks. We have 100 bottling plants and 545 distribution centers around the world and we are well positioned to provide a new product to children around the world (Pepsi Cola Pepsi is entering into an already established market. Some of its competitors include: Private Label, Nestle Nesquik, Deans, Kemps, Borden Milk Products, Hershey’s, Mayfield, Garelick Farms, Hershey’s-Morningstar, and Prairie Farms ( The keys to Pepsi’s success will be the continual innovation and diversity in the flavored milk market. Pepsi’s mission is to provide its customers (ages 6-12) with a healthy drink that contains and meet all the nutrition guidelines approved by the Food and Drug Administration (FDA). Our goal is to exceed and strengthen our product offer from competitor’s products in the market. With approximately 30 million children in the US between ages 6 to 12 we plan to enter the market in the first year with a conservative 3 percent of the target market in schools, since children are more likely to drink flavored milk on a regular basis at school than at home ( Due to school vacations and holidays, we will also introduce this new product on the retail market with an initial target of 1 percent of the target market. In order to maintain our market share, Pepsi intends to use innovative technology like the internet and television (kids programming) to advertise our product to our market segment. Sales Forecast

Sales (Millions)200920102011

Schools $10.519$11.045$11.597
Total Sales$19.519$20.495$21.520

Direct Cost of Sales200920102011

Subtotal Cost of Sales$8.979$9.428$9.899
Notes: No school in July & August

2.0 Situation Analysis – Pepsi has entered its 105th year in operation. Its products have been well received for a long time all over the globe in several markets. Marketing of the flavored milk beverage will be vital to ensuring that children are given a healthy alternative to soda and giving Pepsi a chance to make a difference in the community. 2.1 Market Summary

Target Market Forecast

Potential Customers Growth 2009201020112012

Schools (3% Children 6 to 12)5%126.225132.536139.163146.121 Retail (1% Children 6 to 12)5%108113.4119.07125.024 Total10%234.225245.936258.233271.145

Target Markets
- Schools
- Retail Sales
2.1.1 Market Demographics
The profile for the typical Pepsi brand flavored milk customer consists of the following geographic, and behavior factors: Geographic’s
-Pepsi has no set geographic target area. By leveraging the expansive reach of the Internet and multiple bottling plants, Pepsi can serve both domestic and international customers. -The total targeted population is 234,225,000 potential costumers. Demographic

-There is almost equal ratio between male and female children. -Ages 6-12, estimated at 30 million.
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