Maryam Ejaz

Sec-A
Marketing Assignment (chp #15)

Pepsi: Promoting Nothing

Q1) What markets should Pepsi target for Aquafina?

A1) Since Aquafina is a consumer product, Pepsi should choose a large
target market. Firstly, Pepsi could mimic the other water producers and
target women. But to narrow the targeting even more, it could target the 20-
35 aged, active, on-the-go, health-conscious woman. Then, in response to
the concerns over teenagers drinking too many soft drinks, it can also
position the drink as a substitute for soft drinks. This would be problematic
for Pepsi but could be a complementary alternative. Likewise, focusing on
the mass market, irrespective of gender, can also prove very profitable as it
will give the company a greater scope for diversification. Mass marketing can
also be suitable since Aquafina has an average price so it is affordable for
almost every one. Furthermore, it could position Aquafina not as a sports
drink but simply as a convenient source of pure water for people on the go or
in situations where good water was not readily available.

Q2) What advertising objectives should Pepsi set for Aquafina?

A2) The core advertising focus of Pepsi should be on communicating the
major benefits and high quality level to its customers. Consumers already
know about the product and the category’s success has demonstrated the
primary demand for the product. The focus for advertising objectives should
be on persuading or on building selective demand.

Pepsi wants to build brand preference and encourage both new users and
brand switching. Persuasive advertising includes persuading customers to
purchase now, to receive a sales call, and convincing customers to tell others
about the brand which also gives it a competitive edge.

Q3) What message strategy and message execution

recommendations would you make for Aquafina?

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A3) The first step in creating effective advertising messages is to decide
what general message the company wants to communicate to consumers.
This flows from the positioning statement stressing the idea that the
positioning statement guides development of the marketing mix.

The message should convey the product’s benefits and the high quality level
being provided emerging from a “creative concept”. Pepsi’s problem arises
because they are positioning the product as “nothing”. If Pepsi wanted to
target active people who drink water, a core benefit could be summarized as
“Pure water. Wherever you are.” Although there are many pure positions,
the author is stressing the convenience of bottled water especially in out-of-
the-way places. The stated advertising appeals should be meaningful,
believable, and distinctive.

For message execution there are a number of different styles. Pepsi initially
used some of these including: “slice of life” style in depicting ‘real’ people
drinking Aquafina, “personality symbol” by featuring ‘Friends’ star Lisa in
their advertisements and also the “musical” style by using images of an
artist, skier and guitar player drinking Aquafina. If this were the case then
selecting “Lifestyle” ads that depict active people using the product in
unusual places is a good method. Moreover, the “Mood or Image” style can
also prove effective by linking it to relief of stress or even a high and
consistent sincerity level.

Q4) What advertising media recommendations would you make

for Aquafina, and how would you evaluate the effectiveness of
those media and your advertising?
A4) If Pepsi is targeting “everyone” then almost any media would work. This
is why the company should really narrow its focus which will help it select
which media opportunity to pursue.

If the company targets active people with the pure/convenient positioning

stance they can use media that serves various sports and outdoor
enthusiasts. Pepsi could advertise in hiking magazines or on television shows
that featured outdoor activities and themes. It could develop an Aquafina
Web site that offered information on outdoor activities and education/advice
on outdoor activities.

Pepsi wants to generate a trial of Aquafina and a potential switching from

other products. The print ads might contain coupons for free or reduced
price Aquafina that consumers could redeem at stores. Each coupon could
have an identifying code so Pepsi could determine which print media

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contained the coupon. Both written media have a short life but a large
audience, high acceptability and facility of referring back easily.

The Web site could also have similar offers through downloading coupons.
Television ads could also include promotional offers. All of these steps could
help Pepsi measure both communication effects and the sales effects of the
individual media. Internet will be able to cover the mass market cheaply and
quickly with a prompt feedback.

Focus groups and other marketing research techniques could help measure
overall brand awareness and communication effects. Pepsi could also
experiment with different promotional programs in different market areas
and compare the results with those in other areas.

Moreover, radio could also be suitable. Although it doesn’t provide the video,
but it is able to reach a large market and at a low cost.

Q5) What sales promotion and public relations

recommendations would you make fro Aquafina?
A5) For the sales promotion, Pepsi could promote Aquafina in grocery
stores with end-of-aisle displays and special pricing. It could give away
sample drinks in the stores. It could have contests whereby entrants could
win various promotional items like Aquafina coolers and bottle holders. It
could offer trade promotions to encourage stores to stock and feature the
water.

They could also develop a loyalty program, in a category where switching is

so easy, such a program could be important. Evian has a program whereby a
consumer goes to its Web site and enters a code on the Evian bottle. This
earns the consumer points that are redeemable for merchandise.

For public relations, Pepsi could sponsor various athletic and outdoor
competitive events, such as 10K runs where it would supply water for the
participants. Community charity events, like walkathons for a charity would
also be good candidates. Furthermore, written material and speeches can
even be a good choice.

Q6) What recommendations would you make for Aquafina

Essentials, Aquafina Sparkling Water, and H2Oh!?
A6) Given that Pepsi has established the name and selective demand for
Aquafina, it is much cheaper for it to build off that rather than to start over to

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build marketing support for another new brand name. Pepsi designed each of
these products to satisfy different needs within the market.

These should be positioned as an alternative to bland water. “Add some zing

to your water” might be a tagline suitable for these products. The target in
this situation is the water consumer who is looking for some variety.

Pepsi can still pursue a health-orientated positioning. Promotions aimed at

health-conscious people, especially those who like to exercise or go to health
spas. Then, for all three products, generating trial is an important
promotional task. Pepsi could use extensive advertising tools to persuade
the target customers but should also focus on being cost-effective.

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