pepsi case study

Topics: Coca-Cola, Pepsi, Cola Pages: 8 (1253 words) Published: November 24, 2014
London South Bank University


BSc (Honours) Business Management

BBM-6-ITM International Marketing

Individual Assignment
Marketing Pepsi’s New Healthy Option In the United Kingdom (Case study)

STUDENT NAME:Nambuhewage Buddhini Shashika

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Coca-Cola and Pepsi have been battling each other for more than a century. It's a legendary brand rivalry. The saga began in 1886, when John S. Pemberton developed the original recipe for Coke and Pepsi-Cola was created 13 years later by pharmacist Caleb Bradham and the war still continues .

Pepsi has launched Pepsi Raw, a new premium Pepsi cola, which is made using ingredients from natural sources. Launching first in the UK, it is the most significant innovation from Pepsi since the launch of Pepsi Max in 1993.

PepsiCo's corporate strategic marketing to push natural food and beverage categories illuminates the marketer's motivation behind and created a product like Pepsi Raw. It wants to capture more health conscious consumers, as well as younger, hipper folks who want alternatives to basic cola's and have switched to new age soft drinks and other beverages.

Pepsico the maker and marketer of the Pepsi cola drink brand, is getting raw and natural with a new cola drink that was introduced in the United Kingdom called Pepsi Raw. The new cola was created by Pepsi's UK drinks division.

"Pepsi Raw is different to any other cola available at that moment. The combination of quality ingredients, gives it a subtle yet distinct taste which works well on its own or as a mixer. It mixes particularly well with premium spirits, which can be tasted through the more subtle flavour of Raw

The entire case study discuss about the launch of Pepsi raw, the marketing tactics used to position as a natural drink and to provide consumers with a wide range of premium colacomplimenting the existing range and to create a distinctive brand image.

Though the cola wars is going on for years but the lauch of Pepsi raw is just a latest move in this hundred year battle for dominance.

Why might PepsiCo be willing launch this brand in the United Kingdom rather than its home market ,the United States?

PepsiCo is the world’s second largest food and beverage business. This company offers a wide range of products in more than 200 countries. The UK has become a leader in natural and organic food and drink--both from a consumer demand standpoint and retailer push perspective--so the UK launch was a good move. It offers a test in a hip food and drink market, where "natural," "organic," "ethical," and "green" are becoming a part of the everyday language of consumers.

Further, there is a moderate degree of rivalry in the UK carbonated soft drinks market. The UK market has a limited number of players and all of them are trying to secure their market segment. The UK economy is solid with a high standard of living and the British way of life is very similar to the American life style. The political environment in the UK is rather stable and so they decided to launch in United Kingdom rather than home market. to see how popular it would be before launching in the USA market

Launching the new Pepsi raw in the UK market can be seen as a marketing strategy, showing English people that their opinion and taste matters to an American Company.

The strategy was to launch initially in bars and clubs and later to be rolled out across UK . This is to create word of mouth buzz among the trendsetters who visits bara and clubs, thereby creating more widespread demand for the new drink. These clubers tend to be early adopters, and...
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