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Pepsi Brand Tracker


(Project2 Part1 Brand Image Measurement)

PRAXIS BUSINESS SCHOOl

A report

Submitted to

Prof. Sreenivas Govindrajan

In partial fulfilment of the requirements of the course

Product and Brand management

On 20-08-2009

BY

Apoorva Jain
Gunjan Dugar
Hardik Mishra
Manoj Mani Iyer
PRAXIS BUSINESS SCHOOL PEPSI BRAND TRACKER
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Executive Summary

PepsiCo entered India in 1989 and has grown to become one of the country’s leading food and beverage
companies.

The objective of our project was to measure the brand image of Pepsi.

For data collection BAV method (Quantitative Research) and laddering method (Qualitative Research)
have been used. For BAV we framed a questionnaire which had 14 questions. The numbers of
respondents were 30. For laddering, the method used was one to one in-depth interview and the number
of respondents were 10.

The Brands chosen against Pepsi for a comparative analysis were Thums Up, Sprite, Coca Cola and
Fanta.

From laddering we came to know that most of the respondents preferred aerated drinks because of the fizz
factor which rejuvenated them and helped them in personal attainment. Thus this chain needs to be
concentrated and cashed upon.

From BAV we found out that Pepsi as a brand scores very high on the parameter brand knowledge but
low on brand esteem. This lead to the inference that there may be a problem with the brand personality.
Hence, a study of BAV may not be enough. Moreover, Pepsi scores very low on differentiation and
relevance. The brand Pepsi falls in the Leadership/Declining quadrant and as per the result of the analysis
the point suggests that the brand is declining, thus it needs to improve upon its differentiation & relevance
which will impact the overall esteem. Also it needs to concentrate on other softer aspects like brand
ambassador.

So, there is a possibility to incorporate some changes related to differentiation and repositioning.

PRAXIS BUSINESS SCHOOL PEPSI BRAND TRACKER


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Table of Contents

Section 1 Pepsi Brand History

1.1 Company Perspective

1.2 Brief history in India

1.3 Key dates

1.5 Tagline timeline

1.4 Brand logo timeline

Section 2 Data Collection


2.1 Models of Data Collection

2.1.1 Quantitative Research (BAV Model by Young & Rubicam)

2.1.2 Qualitative Research (Reynolds and Gutman’s “Laddering Method”)

2.2 Research methodology

2.3 Questionnaire

Section 3 Findings and Conclusion

3.1 Findings

3.1.1 Laddering findings & suggestions

3.1.2 BAV Model findings & suggestions

3.2 Conclusion

Section 4 Bibliography

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Section 1 Pepsi Brand History


1.1 Company perspective

PepsiCo's overall mission is to increase the value of our shareholder's investment. It does this
through sales growth, cost controls and wise investment of resources. It believes our commercial
success depends upon offering quality and value to our consumers and customers; providing
products that are safe, wholesome, economically efficient and environmentally sound; and
providing a fair return to our investors while adhering to the highest standards of integrity.

1.2 Brief history of Pepsi in India

 PepsiCo entered India in 1989 and has grown to become one of the country’s leading food and
beverage companies.
 PepsiCo India and its partners have invested more than U.S.$1 billion since the company was
established in the country. PepsiCo provides direct and indirect employment to 150,000 people
including suppliers and distributors.
 PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda
and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional
beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100%
fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local
brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.
 Late 1980s and Early 1990s: Focusing on International Growth and Diversification.
 Principal Divisions: Frito-Lay Company; Pepsi-Cola Company; Tropicana Products, Inc.
 Principal Competitors: Borden, Inc.; Cadbury Schweppes plc; Campbell Soup Company; Chiquita
Brands International, Inc.; The Coca-Cola Company; ConAgra Foods, Inc.; Cott Corporation;
Groupe.

1.3 Key Dates

 1898: Pharmacist Caleb D. Bradham begins selling a cola beverage called Pepsi-Cola.
 1905: Bradham begins establishing a network of bottling franchises.
 1923: Bradham's company goes bankrupt.
 1928: Roy C. Megargel reorganizes the firm as the National Pepsi-Cola Company.
 1931: Company again goes bankrupt and is resurrected by the president of Loft Inc., Charles G. Guth.
 1933: The size of Pepsi bottles is doubled, increasing sales dramatically.
 1936: Pepsi-Cola Company becomes a subsidiary of Loft.
 1941: Loft and Pepsi-Cola merge, the new firm using the name Pepsi-Cola Company.
 1964: Diet Pepsi debuts; Mountain Dew is acquired from Tip Corporation. TOP
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 1965: Pepsi-Cola merges with Frito-Lay to form PepsiCo, Inc., with the two predecessors becoming
divisions.
 1967: Frito-Lay introduces Doritos tortilla chips to the national U.S. market.
 1977: PepsiCo acquires Taco Bell.
 1978: PepsiCo acquires Pizza Hut.
 1981: Frito-Lay introduces Tostitos tortilla chips.
 1986: The Kentucky Fried Chicken (KFC) chain is acquired.
 1997: Taco Bell, Pizza Hut, and KFC are spun off into a new company called Tricon Global Restaurant.
 1998: PepsiCo acquires Tropicana Products for $3.3 billion.
 1999: Pepsi Bottling Group is spun off to the public, with PepsiCo retaining a 35 percent stake.
 2000: PepsiCo reaches an agreement to acquire the Quaker Oats Company for $13.4 billion.

1.5 Tagline timeline

 1898 Brad's Drink

 1903 Exhilarating, Invigorating, Aids Digestion

 1906 Original Pure Food Drink

 1908 Delicious and Healthful

 1915 For All Thirsts - Pepsi:Cola

 1919 Pepsi:Cola - It makes you Scintillate

 1920 Drink Pepsi:Cola - It Will Satisfy You

 1928 Peps You Up!

 1933 It's the Best Cola Drink

 1943 Bigger Drink, Better Taste

 1958 Be Sociable, Have a Pepsi

 1963 Come Alive! You're in the Pepsi Generation1981 Pepsi's Got Your Taste for Life

 1979 Catch That Pepsi Spirit

 1983 Pepsi Now! 1984 The Choice of a New Generation

 1992 Gotta Have It

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 1996 Nothing Official about it

 1998 Yahi hai right choice baby, Aha!

 2008: "Yeh hai Youngistaan Meri Jaan!" Hindi - meaning "This is the Young era my dear" (India and
Pakistan)

1.4 Brand logo timeline

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SECTION 2 Data Collection

2.1 Models of Data collection

 Quantitative Research
 Qualitative Research

2.1.1 Quantitative Research Model - Brand Asset Evaluator (BAV) by Young & Rubicam

2.1.2 Qualitative Research Laddering method

 Laddering refers to an in-depth, one-on-one interviewing technique used to develop an


understanding of how consumers translate the attributes of products into meaningful associations
with respect to self, following Means-End Theory (Gutman, 1982).
 Laddering involves a tailored interviewing format using primarily a series of directed probes,
typified by the “Why is that important to you?” question, with the express goal of determining sets
of linkages between the key perceptual elements across the range of attributes (A), consequences
(C), and values (V).

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 These association networks, or ladders, referred to as perceptual orientations, represent


combinations of elements that serve as the basis for distinguishing between and among products in
a given product class.

Laddering Model

Laddering Methods
 One on One in depth interview.
 Focus Group Study.

2.2 Research Methodology

Exploratory research: Exploratory research provides insights into and comprehension of an issue or
situation. It should draw definitive conclusions only with extreme caution. Exploratory research is a type
of research conducted because a problem has not been clearly defined. Exploratory research helps
determine the best research design, data collection method and selection of subjects. Given its
fundamental nature, exploratory research often concludes that a perceived problem does not actually
exist.

Data collection: In this study internal and external source for data collection had been used. In this
process the following two types of data comes into picture.

 Primary data.

 Secondary data.

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Primary data: All the primary data for the purpose of the study were obtained by interviewing the
consumers with the help of a questionnaire. Questionnaire was framed on the basis of product & its
competition. The questions were designed in such a way as to elicit maximum information and data.

Secondary data: Secondary data has been collected by through books & websites.

Respondents: The respondents are consumers of all age groups.

Sample Size:

 The sample size for BAV study was 30, who were college students and working people.
 The sample size for Laddering was 10.

Sampling Scheme: The sampling technique adopted was “simple random sampling”. As the universe is
the mass and surveying everyone is not possible.

Research tool:

 For quantitative research a questionnaire was used as a research tool.


 For qualitative research focus group study & in depth interview was used.

Questionnaire: The questionnaire has been framed by using the following five steps:

 Specifying data requirements


 Determining the type of questions to be asked.
 Deciding the number and sequence of questions.
 Preparing the preliminary draft of questionnaire.
 Revising and pre-testing the questionnaire.

2.3 QUESTIONNAIRE

1. How much do you care about your choice between different brands of coldrinks?

a) Care

b) Somewhat care

c) Don’t care

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2. Name five brands that come to your mind when you think of coldrinks? (Knowledge)

a) ____________________ d) ____________________

b) ____________________ e) ____________________

c) ____________________

3. Identify the brands from the taglines mentioned below? (Brand Knowledge)

Sl. No. Taglines Brands

1 Aap muskurayenge, bulbule gungunayenge

2 Yeh hai youngistaan meri jaan

3 Seedi Baat, No bakwaas, Clear hai

4 Taste the thunder

5 ______ ka Signal loud, Bunking is allowed

4. Identify the brands from the respective product design. Refer to sample graphics above. (Knowledge)

(A) (B) (C) (D) (E)

Sample Brand

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5. Which brands do the following celebrities endorse? (Knowledge)


Sl. Advertisements Brands
No.

A Aamir Khan

B Akshay Kumar

C Ranbir Kapoor

D Genellia D’ souza

E Sania Mirza

6. From the samples tasted, indicate the brand that comes to your mind? (Differentiator)

Samples Brands

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7. Which brands would you like to be most associated with? Rank in order of your preference (1 being
the most preferred) (Esteem)

Brands Rank

Pepsi

Thumsup

Sprite

CocaCola

Fanta

8. Which of the following is a brand that you trust most? (Esteem)

a) Thumsup

b) Pepsi

c) Fanta

d) Coca Cola

e) Sprite

9. For each of the following brand, please tell me, if you feel there is another brand, quite similar in
offerings (Differentiator)

Brands Yes/ No

Pepsi

Thumsup

CocaCola

Fanta

Sprite

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10. For the following reasons which brand of cold drinks would you purchase ? (Relevance,
Differentiator)

Coca Cola
Thumsup
Situations

Sprite
Fanta
Pepsi
Family get together

With alcohol

Thirst quencher

The brand has many variants

11. Which brand delivers their brand promise the most? (Esteem)
Coca Cola
Thumsup
Sprite
Pepsi
Fanta

12. In order of preference which brands would you like to stock? (1 being the most preferred)?
(Relevance)

Thumsup
Coca Cola
Pepsi
sprite
Fanta

13. Has the Youngistan Campaign motivated you to buy Pepsi?

Yes

No

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14. Which brand of cold drinks would you buy based on the below mentioned factors?? (Relevance)

Coca Cola
Thumsup
Factors

Sprite
Fanta
Pepsi
Taste

Brand Ambassador

Advertisements

Constant Innovation

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Section 3 Findings and Conclusion


3.1 Findings

3.1.1 Laddering Findings for the coldrink brand Pepsi

Personal Self Peer

Attainment Esteem belonging

Confidence Physical well being Physical Appearance

Rejuvenating Weight Control Motivation Acidity relief

Fizz No Calorie Tagline Soda


Calories

Strongest Benefit Chain Strong Chain Weaker Chain

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Laddering findings & suggestions

Some of the respondents were


Most number of respondents listed the
motivated with the tagline as well as
fizz factor in the coldrink which
the brand ambassador and feeling good
rejuvenated them and as a result they
about themselves boosting their self
had personal attainment
esteem.

Some of the respondents found the low


calorie variant of the brand as the one
Some also felt the soda content in the
which helps them to keep their
drink helps them fight gas trouble
calories in check boosting physical
making them relived and happy.
appearance therby boosting self
esteem.

Factors of Consumption: Drinking this fizzy drink, with catchy


tagline, having low calorie content which also helps fighting gas
trouble creates a sense of rejuvenation, helping physical well being,
boosting self esteem leading to a strong sense of physical
attainment.

Strong Benefit Chain:- Most of the respondents prefer because of


the fizz factor thus this attribute in the chain needs to be
concentrated and cashed upon.
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3.1.2 BAV Model rationale, findings & suggestions

Rationale behind designing the questionnaire


 Out of the total of 14 questions, we had asked 4 questions to test brand knowledge.
 To test brand differentiator, we had asked 3 questions.
 To test brand esteem, we had asked 3 questions.
 To test brand relevance, we had asked 3 questions.
 To test the Branding importance we asked 1 question.

Methodology for data analysis


 We ranked the brands by tabulating scores achieved by the brands in the answers.
 For multi choice questions we adopted weighted average method.
 After ranking the brands we assigned the percentiles achieved by them.
 To arrive at a percentile achieved by the brand on particular parameter, we took the average
percentile achieved in that parameter and then ranked the brands again and gave percentiles.

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Scores of brands on the 4 parameters

Brand Knowledge
Percentile

100
80 80
60
40

Pepsi Fanta Sprite Thumps up Coke

Brand Differentiation
Percentile

100
80 80
60 60

Pepsi Fanta Sprite Thumps up Coke

Brand Esteem
Percentile

100
80
60
40
20

Pepsi Fanta Sprite Thumps up Coke

Brand Relevance
Percentile

100
80
60 60
40

Pepsi Fanta Sprite Thumps up Coke

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Brand Stature

Out of the 4 parameters, Knowledge and Esteem together create Brand Stature. it measures the current
strength of the brand.

Brand Stature
Percentile

100

40

Knowledge Esteem

Brand Stature Score = Knowledge (100) + Esteem (40) / 2 = 70

Findings & Suggestions

It can be seen from the Thus we can infer that


above table that Pepsi as a there may be a problem
brand is very high on with the brand personality
knowledge and low on hence a study of BAV may
esteem. not be enough.

We need to know the


softer aspects of the brand
or the brand personality.

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Brand Vitality
Differentiation and Relevance together create Brand Vitality and it measures the growth potential of a
brand.

Brand Vitality
Percentile

60 60

Differentiation Relevance

Brand Vitality Score = Differentiation (60) + Relevance (60) / 2 = 60

Findings & Suggestions

It can be seen from the


So there is a possibility to
table that Pepsi as a brand
incorporate some changes
has not a very high
to differentiate and
differentiation and
reposition.
relevance.

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Findings & Suggestions

3.2 Conclusion

The above diagram suggests that the brand Pepsi falls in the
Leadership/Declining quadrant and as per the result of the analysis
the point suggests that the brand is declining, thus it needs to
improve upon its differentiation & relevance which will impact the
overall esteem. Also it needs to concentrate on other softer aspects
like brand ambassador.

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Section 4 Bibliography

Books referred

Marketing Management by Kotler & Keller

Websites

http://www.pepsi.com

http://www.findownersearch.com/bav-model/3751576/

http://www.heskesresearch.com/html/laddering1.html

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