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CONTENTS

1
 LIST OF CONTENTS

Chapter Particulars Page

1 INTRODUCTION 5

1.1 Industry Profile 15

1.2 Company Profile 17

2 REVIEW OF THE LITERATURE 20

Objectives of the study 27

Need of the study 28

Scope and Limitations 29

3 METHODOLOGY 31

3.1 Research Design 32

3.2 Sample size 33

3.3 Data collection 34

3.4 Statistical tools used for analysis 34

4 DATA ANALYSIS AND INTERPRETATIONS 35

5 SUGGESTIONS AND CONCLUSION 62

BIBLIOGRAPHY 65

APPENDIX 68

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 LIST OF TABLES

PARTICULARS Page
Table
1 Gender 36

2 Most preferred brand in PepsiCo products 38

3 Satisfaction level of expectation 40
Customer category based on Frequency of drinking soft
4 42
drinks
5 The Market Leader Pepsi Or Coke 44

6 PepsiCo- An Eco Friendly Lifestyle 46

What Factor Makes It to Be Market Leader
7 48

Innovative As It Offers A Variety Of Products For Various

8 Customers 50

9 Brand Image Of Pepsi- Easy To Remember cross tabulation 52

10 Brand Image of Pepsi-Attractive Cross Tabulation 54

11 Brand Image of Pepsi-Self Esteem Cross Tabulation 56

12 Brand Image Of Pepsi-Advertisement Cross Tabulation 58

The trust of drinking Pepsi
13 60

3
 LIST OF CHARTS

PARTICULARS Page
Table
1 Gender 37

2 Most preferred brand in PepsiCo products 39

3 Satisfaction level of expectation 41
Customer category based on Frequency of drinking soft
4 43
drinks
5 The Market Leader Pepsi Or Coke 45

6 PepsiCo- An Eco Friendly Lifestyle 47

What Factor Makes It to Be Market Leader
7 49

Innovative As It Offers A Variety Of Products For Various

8 Customers 51

9 Brand Image Of Pepsi- Easy To Remember cross tabulation 53

10 Brand Image of Pepsi-Attractive Cross Tabulation 55

11 Brand Image of Pepsi-Self Esteem Cross Tabulation 57

12 Brand Image Of Pepsi-Advertisement Cross Tabulation 59

The trust of drinking Pepsi
13 61

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INTRODUCTION

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 Chapter-1

1.0 Introduction:
The concepts of branding, positioning and importance of these elements for a
strong brand. Starts the introduction with discussing the concepts of branding and
describe relevant theories in brand personality and brand positioning. Then walk through
the problem discussion and finally the research question.

For the scope of the proposed study, brand positioning and positioning strategies
are important elements which can contribute to a successful brand.

Highly successful brands compete with other products and brands by creating
points of parity in those areas where competitors are trying to find advantage while at the
same time creating points of difference to achieve advantage over competitors in other
areas. Achieving brand leadership is important as it inspires employees of the company
and other partners and stakeholders to set a high brand aspiration level. For consumers it
provides reassurance and implies certain quality levels.

The entire marketing mix is important to develop the positioning of the brand. The
products are positioned in a certain way by the attributes ascribed to it by the target
consumer group. The management team should position the product in such a way so that
the product offering corresponds with consumer values and desires, and addresses

their needs and exceeds their expectations.

6
1.0.1 What is a brand?
The concept of a ‘brand’ can be described in terms of added value. Added value
forms an important part of a brand’s definition and is the primary basis for distinguishing
a brand from a product. The brand becomes a symbol of the product’s culture, personality
and values and the success of a strong brand then lies in its customers identifying with the
brand’s attributes.

Looking at the above definitions, a brand is more than just a logo, although logos play
an important role in identifying a product/company to consumers (think about the Pepsi
or McDonald’s logo.) As mentioned previously, the total positioning of the
product/service forms an intangible asset which differentiates the product in the market
place A brand can convey up to five different levels of meaning to consumers and these
levels of meaning can reinforce, or harm, the relationship between the brand and the
consumer.

Positioning Content Possibilities

1. Positioning content based on attribute

2. Positioning content based on attribute’s delivery of functional benefits
3. Positioning content based on functional benefit
4. Positioning content based on functional benefit’s delivery of psychological benefit
5. Positioning content based on psychological benefit
6. Positioning content based on functional benefits overcoming negative psychological
effect.

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Nature of Brands

1. Attributes: A brand may suggest different attributes. Woolworths in South Africa

for e.g. suggests quality, convenience, and style. The Pepsi brand suggests innovation,
youth, trend-conscious, dynamicness and flexibility.

2. Benefits: Attributes may be divided into functional and emotional benefits. The
attribute of ‘flexible’ could be translated into the functional benefit: “I can choose
any DRINKS which will suit my needs and pocket”. The attribute of “youth” and
“need” could be translated into the emotional benefit.
3. Values: A brand will communicate something about the values of the company. The
Pepsi brand communicates innovation, consumer-empowerment and style and
wellness.

4. Culture: A brand may represent a certain culture. The Mercedes brand represents
something of German culture: organised, efficient and high quality.

5. Personality: The brand can represent a certain personality. The Pepsi brand may
project the personality of someone fleet-footed, young and innovative.

The discussion of the concept of the brand would lead one to consider the
importance of creating the optimal brand personality, image, values, and attributes. The
right combination is necessary for consumers to form personal associations and lasting
relationships with the brand.

As mentioned previously, a strong brand will place emphasis on the product’s

unique characteristics, and should also communicate these characteristics. This
differentiation is especially important in the global markets of today. Markets have
become more integrated and highly competitive. Consumers are more educated and
empowered to make decisions, through more sophisticated channels and tools of
communication. Through the use of technology such as the Internet, consumers are more
knowledgeable about markets, products, services, quality standards and different product
offerings.

8
1.0.2 The importance of a strong brand in retail marketing:

Brands have become important means of identification for the manufacture and a
means of legal protection for unique features and attributes, Strong brands share the
following brand attributes:

- Strong brands excel at delivering the benefits customers truly desires or need;

- The brand stays relevant to the customer;

- The pricing strategy is based on the customer’s perception of value; and

- The brand is properly positioned according to its points of parity and points of
difference with other brands in the same product or service class.

A product’s attributes are communicated to consumers in two ways Through a

person’s direct experience with the product/service, and secondly through the various
communication drivers (advertising, public relations, name, logo, and retail/service
environment). While the product’s value, utility, customer service and word-of-mouth
advertising will in many cases determine a person’s direct experience with that product,
the marketer should aim at differentiating the product/service in the minds of the
consumer.

1.0.3 Brand positioning

The concept of ‘positioning’ was popularised by the advertising industry who
described product positioning as a process that is done in the mind of the consumer, rather
than a process that is done to a product (Kotler). It is the responsibility of the marketer to
position the product in such a way that it holds a very distinctive and distinguished place
in the minds of consumers. The world’s most successful brands will often be the best,
largest, most expensive, have the highest quality etc. In the case of PepsiCo, the
company’s leadership position in the Indian soft drink industry is emphasised as well as
the fact that the company’s knowledge and innovation.

The Macmillan Dictionary of Marketing and Advertising explains the concept of

positioning as: “The term (positioning) has a simple meaning and a more complicated
one. As typically used, it defines what is accurately called product positioning – that is
defining the location of a product (or service) relative to others in the same marketplace
and then promoting it in such a way as to reinforce or change its ‘position’ (Baker).

9
 This, however, is easier said than done. The process of defining a ‘position’
requires dimensions along which the competing products can be compared, and the
resulting definition must be comparative if it is to be used as the basis for a positioning
strategy.
From the above it is clear that the positioning of a brand, involves focusing on a
‘difference’ in the market offering and positioning the product accordingly in the minds
of the consumer. Although most products can be differentiated, a difference should only
be highlighted and exploited if it adheres to the following criteria (Kittler,):

- Importance: The difference should deliver a highly valued

benefit to a sufficient size market;
-Distinctiveness: The difference should be highlighted and
communicated in a distinctive way;
- Superiority: The difference is superior to other ways of obtaining
the benefit;
-Pre-emptive quality: The difference should not be easily copied by other
competitors;
- Affordability: The buyer can afford to pay for the difference; and

- Profitability: The Company will find it profitable to introduce the

difference;

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1.0.4 Different positioning strategies
Different positioning strategies can be used to position the product optimally in
the minds of consumers. The specific strategy used will depend on the type of
product/service, the organisation’s unique assets, liabilities and capabilities, technological
and intellectual leadership, target market, competitive environment and socio-economic
environment. The following strategies can be used :
• Positioning by attribute, product characteristic or consumer benefit: the brand is
perceived to be better than others in a particular way;
• Positioning by price/quality: positioning can be aimed at high quality/high price,
positions or in low price/lower quality positions or anything in between. Marketing
communications attempt to convey a ‘value for money’ approach;
• Positioning by use or application: products or services can be positioned at target
markets in terms of usage conditions or occasions;
• Positioning by product user: this type of strategy focuses on positioning for a specific
niche market;
• Positioning in respect of product category: brand or product categories are positioned
against other substitute product categories;
• Positioning against a competitor: according to this strategy, brands are positioned with a
full understanding of their relative competitive position in the minds of target audience
members; and
• Cultural positioning: the brand is clearly associated with a specific culture, country,
religion, ethnic group or sense of heritage or tradition.
1
1.0.5 Market segmentation
Market segmentation and product positioning go hand-in-hand to assist the
marketer/producer in differentiating their product. Market segmentation can be defined as
different sub-groups or segments of a market exhibiting different consumption
preferences and as a result, producers then seek to develop different products and/or
services which will match the needs of those segments.
Markets are complex and the act of market segmentation aids the marketer in
developing smaller, relatively homogenous segments. Categorising; i.e. segmenting the
market correctly will assist the marketer in maximising the product’s position to be most
effective.

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Market segmentation provides the marketing manager with three distinct tasks:
1 • to define the market and find segments within it (segmentation);
2 • to select the most profitable segments that can be served the most effectively and
efficiently by the company’s resources (targeting); and
3 • to communicate to that segment to appeal to their specific wants and needs better
than competitors (positioning).

Segmentation is used when the differences between consumers are seen to be

substantial enough so that, to effectively market a product, consumers must be placed in a
specific target group. By dividing a larger market into smaller segments with different
preferences and subsequently adjusting the product or service to the preferences of the
individual segments, the overall distance between what the company is offering to the
market and what the market requires is reduced.

The foundations that can be used for segmentation are for e.g. demographics (age,
sex, life-stage, type of residence, income, occupation, education, religion, nationality);
geo-graphics (postal code, city, suburb, coastal or inland, economic or political
union/association, climate); geo-demographics (the segmentation of consumers where
they live – using demographic data to classify neighbourhoods); psychographics (values,
attitudes, motivations, interests, opinions and hobbies); and behavioural (benefits sought,
purchase occasion, purchase behaviour, usage and perceptions and beliefs).

Brand architecture is the way in which a company organises, manages and go to

the market with their brand. It is often the external face of the business strategy and must
be aligned with, and support business goals and objectives. Through brand architecture,
the positioning strategy of the company and brand is translated to the target market.

There are three types of brand architectures: (1) the monolithic approach (2)
branded house/endorsed approach; and (3) house of brands/‘simple’ approach. The
monolithic approach refers to organisations that use the name of the organisation as a
single dominant corporate brand across all the portfolios. Branded house architecture
employs a single (master) brand to include a series of offerings that may operate with
sub-brand names. The sub-brands add further clarity and definition to the offering.

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A house of brands architecture employs a group of stand-alone brands. Each brand here
operates independently to maximise its market share and financial return. The philosophy
is that the sum of all parts will be greater than if the brands were managed separately.
Proctor and Gamble is an example of a company that employs a house of brands
architecture.

The term ‘brand attributes’ refer to the characteristics (in the broad sense) that are
brought to mind, when consumers think of a specific brand. The PepsiCo brand for
example, will bring attributes such as ‘young’, ‘fun’, ‘dynamic’, ‘sociable’, and ‘good
living’ to mind. These attributes are created by the brand positioning, identity,
associations and personality. Brand attributes can be functional; i.e. linked to
performance, or emotions.

1.0.6 The importance of best brand positioning as part of the overall

business strategy:
The aim of any brand-building exercise is to achieve brand leadership and develop
consumers into ‘brand-addicts’. The management paradigm should therefore include the
brand’s qualities in the management framework. Markets have become more cluttered
and ‘confused’ due to more segmentation and differentiation taking place. It has therefore
become more complex and difficult to differentiate a brand successfully.

An effective marketing strategy these days, does not merely include a well-
managed advertising campaign, but relies on building strong brands through other means
as well. Often, the entire organisation and each point of contact will add or subtract
from the brand’s strength. The brand’s identity will dictate the business strategy and its
actions in the market place. The brand should not be guided by tactical and short-term
decisions (for e.g. price cuts or promotions) but should be the driving force behind the
business or organisation’s strategy.

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1.0.7 Other Brand elements
Brand elements can be defined as those trademark able devices that serve to
identify and differentiate the brand.
The main brand elements are: brand names, logos, symbols, characters, slogans,
jingles and packaging. Brand elements may be used to create and enhance brand
awareness, and to facilitate the forming of strong and favourable brand associations.
There are five choice criteria that a marketer can follow when choosing brand elements:

1. Memorability:
The brand must be easily recognised and recalled through the use of the particular
brand elements
2. Meaningfulness:
The brand element(s) used must be descriptive, persuasive, fun and interesting;
and rich in verbal and visual imagery;

3. Transferability:
The brand elements should be transferable within different product categories for
e.g. the Discovery logo and brand name is used for health insurance and for life
insurance. The brand element should also be transferable across geographical
boundaries and cultures.
4. Adaptability:
The brand elements should be flexible and adaptable according to changing
market conditions; and
5. Protect ability:
Brand elements should be protected legally and competitively. Brand elements
serve different purposes and the marketer should ‘mix-and-match’ the different brand
elements to achieve optimum brand equity.

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1.1 INDUSTRY PROFILE

1.1.1 Soft drinks market analysis

“For years the story in the non-alcoholic sector centred on the power struggle
between…Coke and Pepsi. But as the pop fight has topped out, the industry's giants have
begun relying on new product flavours…and looking to noncarbonated beverages for
growth.” In order to fully understand the soft drink industry, the following should be
considered: the dominant economic factors, five competitive sources, industry trends, and
the industry’s key factors. Based on the analyses of the industry, specific
recommendations for competitors can then be created.

1.1.2 Dominant Economic Factors

Market size, growth rate and overall profitability are three economic indicators
that can be used to evaluate the soft drink industry. The market size of this industry has
been changing. Soft drink consumption has a market share of 46.8% within the non-
alcoholic drink industry, the total market value of soft drinks reached $307.2 billion in
2004 with a market value forecast of $367.1 billion in 2009. Further, the 2004 soft drink
volume was 325,367.2 million litres. Clearly, the soft drink industry is lucrative with a
potential for high profits, but there are several obstacles to overcome in order to capture
the market share.
The geographic scope of the competitive rivalry explains some of the economic
features found in the soft drink industry. “The sector is dominated by three major
players…Coca-Cola is king of the soft drink-empire and boasts a global market share of
around 50%, followed by PepsiCo at about 21%, and Cadbury Schweppes at 7%.”

Three leading companies have prominent presence in the soft drink industry.
The leaders include the Coca-Cola Company, PepsiCo, and Cadbury Schweppes.
According to the Coca- Cola annual report (2004), it has the most soft drink sales with
$22 billion. The Coca-Cola product line has several popular soft drinks including Coca-
Cola, Diet Coke, Fanta, Barq’s, and Sprite, selling over 400 drink brands in about 200
nations (Murray 2006a). PepsiCo is the next top competitor with soft drink sales grossing
$18 billion for the two beverage subsidiaries, PepsiCo Beverages North America and

15
PepsiCo International (PepsiCo Inc., 2004). PepsiCo’s soft drink product line includes
Pepsi, Mountain Dew, and Slice which make up more than one quarter of its sales.

` The major players in soft drinks market in India are PepsiCo and Coca-Cola Co.
like elsewhere in the world. Coca-Cola acquired a number of local brands like Limca,
Gold Spot and Thumbs Up when it entered Indian market second time. Pepsi Co’s soft
drink portfolio consists of Miranda and 7Up along with Pepsi. The market share of each
of the company is more or less the same, though there is a conflict in the estimates quoted
by different sources.

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1.2 Company Profile

1.2.1 History

PepsiCo is a world leader in convenient snacks, foods and beverages with

revenues of more than $39 billion and over 185,000 employees. Take a journey through
our past and see the key milestones that define PepsiCo.

Founded in 1965 through the merger of Pepsi-Cola and Frito-Lay, PepsiCo

entered India in 1989 and in the span of a little more than a decade, has grown to become
the country’s largest selling soft drinks company as well as dominant player in the snack
food segment (Frito-Lay is the leader in the branded potato chips market). To support the
operations are the group’s 38 bottling plants in India, of which 16 are company owned
and 22 are franchisee owned

PepsiCo Mission

"To be the world's premier consumer Products Company focused on convenience

foods and beverages. We seek to produce healthy financial rewards to investors as we
provide opportunities for growth and enrichment to our employees, our business partners
and the communities in which we operate. And in everything we do, we strive for honesty,
fairness and integrity."

1.2.2 Corporate Profile

PepsiCo in India

PepsiCo entered India in 1989 and has grown to become one of the country’s
leading food and beverage companies. One of the largest multinational investors in the
country, PepsiCo has established a business which aims to serve the long term dynamic
needs of consumers in India.

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.

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 PepsiCo nourishes consumers with a range of products from treats to healthy eats,
that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive
portfolio includes iconic refreshment beverages Pepsi, 7 UP, Miranda 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.

PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack
market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s
Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the
Kurkure and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and
low fat and roasted snack options enhance the healthful choices available to consumers.
Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice
Bran Oil to significantly reduce saturated fats and all of its products contain voluntary
nutritional labeling on their packets.

The group has built an expansive beverage and foods business. To support its
operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and
28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3
state-of-the-art plants. PepsiCo’s business is based on its sustainability vision of making
tomorrow better than today. PepsiCo’s commitment to living by this vision every day is
visible in its contribution to the country, consumers and farmers.

1.2.3 Performance with Purpose

Performance with Purpose articulates PepsiCo India's belief that its businesses are
intrinsically connected to the communities and world that surrounds it. Performance with
Purpose means delivering superior financial performance at the same time as we improve
the world.

To deliver on this commitment, PepsiCo India will build on the incredibly strong
foundation of achievement and scale up its initiatives while focusing on the following 4
critical areas that have a business link and where we believe that we can have the most
impact.

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1.2.4 Product and Services

PepsiCo’s mission is to be the world’s premier consumer Products Company

focused on convenient foods and beverages. The company seeks to produce healthy
financial rewards to investors as it provides opportunities for growth and enrichment to its
employees, business partners and the communities in which it operates. PepsiCo now has
many global brands, which include: Pepsi-Cola, Diet Pepsi, Mountain Dew (Diet &
Regular), Gatorade, Walkers, Lays Potato Chips, Doritos Tortilla Ch ips, Tropicana Pure
Premium Orange Juice, 7-UP (Outside USA), Cheetos Cheese Flavoured Snacks, Quaker
Cereals, Aquafina Bottled Water, Ruffles Potato Chips, Mirinda, Tostitos Tortilla Chips,
Sierra Mist (Diet & Regular) and Fritos Corn Chips.

1.2.5 Culture and Values

Our Guiding Principles:

Care for customers, consumers and the world we live in. We are driven by an
intense, competitive spirit in the marketplace, but we direct this spirit towards solutions
that achieve a win for each of our constituents as well as a win for the corporation. The
test of our standards is that we must be able to personally endorse our products without
reservation and consume them ourselves. This principle extends to every part of the
business, from the purchasing of ingredients to the point where our products reach the
consumer’s hands.

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CHAPTER 2

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REVIEW OF LITERATURE

20
 REVIEW OF LITERATURE

In the previous chapter we discussed and presented the introduction. In this chapter we
will narrow this study down to a specific area of research. But before doing this we will
look at theories of the brand and brand positioning to better understand them.

2.0.1 BRAND:
Hofmeyr and Rice (2000: 2) said the following on brands and successful
marketing – “the key to brand profits is in the consumer’s minds” and; “the key to
successful marketing knows what is in the consumer’s mind and managing the
relationship appropriately”. From these quotations, one could say that in order for a brand
to be successful, there needs to be a strong relationship between the consumer and the
brand. The question then arises as to how a strong and positive relationship can be
forged? The answer would lie in communication. To manage the relationship correctly,
the marketer should establish the consumer’s needs, values and predicted behaviour.
According to this information, the brand should be defined appropriately and then
positioned in such a way as to communicate value to the consumer. Attempts at defining
the concept of a brand, must therefore emphasize the role of communication.

Some definitions follow: The America Marketing Association defines a brand as a name,
term, sign, symbol, or design, or a combination of these, intended to identify the goods or
services of one seller or groups of sellers and to differentiate them from those of
competitors (Kotler, 2000: 404).

Kotler further states that a brand is an important communicator of product

attributes and identifies the seller/maker/person delivering the service.

Hogan (2001) defines a brand as the sum of positioning all the available
information about a product, service or company. De Chernatony in (Egan, 1998) defines
a brand as an identifiable product, service, person or place, augmented through a coherent
process, such that buyers or users perceive unique, relevant added values which match
their needs most closely

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2.0.2 POSITIONING A BRAND

To be successful today the organisations have to be aware of today’s reality and

environment. And the reality that counts is the one in the proposed customer mind. The
fundamental of positioning is not to create something new or different, but to change or
manipulate what already exists (Ries & Trout, 1985, p 12). Or as fill (2002, p 321)
explains it; “positioning is not about the product but what the buyer think about the
product or organisation”.

Positioning are not verifiable scientific hypotheses. There is a great deal of

subjective interpretation and high degree of risk involved in choosing to seek one
positioning strategy over another (Upshaw, 1995). Alternative positioning types; features-
driven prompts, problem/solution prompts, target driven positioning, completion- driven
positioning, emotional/psychological positioning, positioning, benefit-driven positioning,
aspirational positioning and value positioning. Positioning is the process whereby
information about the organization or the product is communicated in such a way that the
object s perceived by the consumer/stakeholder to be differentiated from the competition,
to occupy a particular space in the market (Fill, 2002, p321).

The commercial utility of positioning lies in how the im buying of trademark with
unique, true and compelling values can influence purchasing decisions and impact upon
sales. The entire enterprise of branding itself can be understood as an exercise in
positioning; using product experience and marketing initiatives to increase profitability by
associating trademark with compelling consumer values (Marsden, 2002). Positioning is
about visibility and recognition of what a product/service represents for a buyer. In
markets where the intensity of rivalry and completion are increasing and buyers have
greater choice, identification and understanding of a product’s intrinsic values becomes
critical (Fill, 2002, p323). Hankinson and cowkings (1997 p2) states that a brand
positioning “define the brands point of reference with respect to the competition”.

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 According to Upshaw (1995) positioning campaigns that work often share
common characteristics that can serve as a guide for marketers. Some of the most
important factors are;
 They are correctly and clearly targeted.
 They promise relevant benefits;
 Their promises are backs up with persuasive support;
 They serve as an integrated base with a compelling strategic
personality;
 There is a credible brand fit.
 They are supported by sufficient market spending.

How a brand is recognised in the market place is based largely on its personality,
but what it means in someone’s life is derived from its positioning.
According to karferer (1997) positioning does not reveal the entire brand’s richness of
meaning nor reflect all of its potential. The brand is restricted once reduced to four
questions:
 Why? This question asks about the brand promise and consumer benefit
aspect.
 For whom? Refer to the target aspect.
 When? In what occasions will the product be consumed?
 Against whom? This question defines the main competitors whose
clients/customers an organisation thinks they can win over.

Figure positioning a brand

Source: kapferer, 1997, p97.

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 Positioning can be seen as a two step process; first indicate to what category
the brand should be associated and compared with; secondly, indicate what the brands
essential difference and comparison to other products and brands of that category
(Kapferer, 1997). To identify a brands position and its future position oppurtunities,
Aaker (1996). Uses this figure ( see figure 2.2).

Figure 2.2 Brand position

Source: Aaker, 1996, p184

1.0.8 Multidimensional scaling

Why do some people prefer a branded soft drink to fresh fruit juice? Why do some
prefer Nirma washing powder to any other detergent of unquestionable quality? Why do
people vote for a particular party or individual? How do boys decide their girl friends (or
vice versa)? Can these questions and others like them relating to perceptions and
preferences be systematized?
Multidimensional Scaling (MDS) is a set of techniques to understand and measure
this variety of human responses. We will deal with MDS at some length because of its
frequent use for perceptual mapping.
Multidimensional Scaling tackles basically two problems:
1. Dimensions involved for consumer perception of objects (products, brands, companies,
services, etc.)

24
2. Configuration of points (of objects) in that dimensionality.

As regards dimensionality, the number can be two or more. However, for

illustrative purposes, only two most important dimensions are chosen as the resultant
configuration can then be shown graphically (although in practice, MDS involves several
dimensions, and hence the name). The output of MDS is the location of objects on the
relevant dimensions and is usually termed as perceptual mapping. The starting point for
MDS is also some measure of proximity between pairs of objects. These proximity
measures can be expressed either as Euclidean distances or preference (dominance) data.
For both the approaches the similarity or dissimilarity (distances) data can be obtained in
metric (interval-scaled) or no metric (ordinal-scaled) measures.
For example:
(i) If the respondent is asked to indicate on a 7-point scale, how
Similar or dissimilar two objects are, the data are called metric.

(ii) On the other hand, if the respondent is asked to rank all possible pairs of objects in
order of similarity (or dissimilarity), the resultant data becomes non metric.

Given that an adequate number of objects and dimensions is involved in MDS, both
metric and non metric approaches are
Likely to produce near-perfect solutions. Research that yields perceptual maps of a
product class also shows up holes or vacant positions in the market. Subjectively, these
open spaces can suggest new product opportunities. They stimulate management to
develop hypotheses about new product concepts and throw up possibilities as well for
repositioning old products .Preferred positions and ideal points.

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 Need for the study:
A study on Brand positioning of Pepsi in Rasipuram town with special reference
to PepsiCo holding limited. The study is conducted in Namakkal district because PepsiCo
India Ltd., wants to know the customer attitude for their product in one of Major cities in
northern Tamil nadu, moreover it is interested in developing suitable strategy to change
the distribution network after research in the study area. Major concern is in rasipuram
the market performance of Pepsi products are bit lower than coca cola and other domestic
players. So the study conducted a survey among the customer of soft drinks in general in
the study area.

26
 Objectives For the study

 To identify the brand positioning of PepsiCo in area of

study.

 To know the significant difference between brands

attributes of drinks and different age group of customers.

 To know the effective factor which influence the purchase

behaviour of the customer.

27
 Scope of the Study

 This will also help to the company to identify the fast moving
brand of soft drinks in the study area.

 The study will help to the company to find out the factors
influencing the purchase of soft drinks rasipuram town.

 This study will help to the company to find out the best and
suitable positioning strategy for drinks products in the research
area.

28
 Limitations of the Study

In any study a research there will be some limitations associated with it

for the proper understanding about the project.

 The study is restricted to only selected areas from Rasipuram

town.

 Because of the cost and time factors the research is restricted to

100 samples only.

 On few occasions, customers are reluctant to give information

because they were busy.

29
 CHAPTER 3

----------------------------------------------------------------------------

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

3.1 Introduction

The research methodology that was followed was discussed briefly. In this
chapter, the following aspects of the research methodology are discussed in more detail:

30
 1 • The research method;
2 • The sampling procedure;
3 • The data collection method;

3.2 The Research Design

As stated by the title of the study, the objective is to analyze and understand the
implications of brand positioning and identity to a PepsiCo company. The product
positioning study is an important type of marketing research and is also sometimes
referred to as an ‘image’ study.

Psychological theory suggests that people respond to things according to how they
‘perceive’ them, which may be inconsistent with the way they really are. The perception
of quality may be a strong motivator for consumers to purchase a product; even if the
perception is not equal to reality.

A problem for the marketing manager is that even if the perception of quality
exists, it may not be a strong enough motivator for the consumer to purchase the product.
A positioning study will attempt to uncover consumer beliefs about a product as well as
the importance placed on each product and brand characteristic.

The industry being studied is a retail organization and aspects related to the brand
are in most cases, tangible. The positioning study will therefore also include the
measurement of customer satisfaction.

A descriptive quantitative study was conducted to statistically measure opinion on

the brand characteristics important for the brand positioning and identity strategy. It
define descriptive studies as formal studies which are typically structured with clearly
stated hypotheses or investigative questions.

3.3 Sampling Procedure

31
 It has already been indicated that the study focuses on a company in the soft
drinks industry. PepsiCo was chosen for the study as the company is currently the market
competitor for coke, and is also regarded as the industry leader in terms of product
innovation. The company has large number of customers. However, due to the size of this
population and limited resources, the population was reduced to particular region. The
company agreed to conduct between 100 interviews, depending on the available capacity.
A sample of 100 respondents was taken from the population group and 100 interviews
were conducted. The response rate was therefore 100%.

The Rasipuram region was chosen as the region from where the respondent
sample would be taken, as this region is regarded as the most comprehensive region on in
Northern India. This region is also the fast developing region where the PepsiCo having
its production unit.. The results from this specific population in terms of quality, service,
value and perceptions on the brand, will be interesting as the assumption can be made that
this group of respondents are mostly affected by value for money/price vs. quality Vs
taste.

32
3.4 Data Collection Method
After the selection of the sample, the direct interview-method was selected as the
data collection method. Although direct interviews have some disadvantages (for e.g. the
interview length should be limited, and some respondents not being available);

The advantage of this interview method is that termination of a F2F interview is

easy, compared to other interview methods. In the interaction between interviewer and
interviewee enough clues can be given that the end of the interview is near, for example
by shuffling the papers and turning off the tape recorder. An explicit way to terminate the
interview is by thanking the interviewee for cooperation and asking him or her if there are
further remarks that might be relevant to the topic or the interview process. This can lead
to an emergent of a whole new area of information.

As with self-administrative surveys, face two face interviews should be structured

to meet the following objectives:

• Questions should be specific and easy to understand;

1 • Clear response directions should be used; and
2 • Interview length should be appropriate.

3.5 Statistical Tools Used For Analysis

The collected data were analysed by using Percentage analysis tool

33
Chapter 4

----------------------------------------------------------------------------

Analysis and Interpretation

34
 Analysis and Interpretation

Gender:

The table below shows the gender of respondents.

Table no 1: Gender

S.NO Particular Frequency Percentage

1 Female 39 39

2 Male 61 61

Total 100 100

35
Chart no 1:

Frequence

70

60

50

40

30

20

10

0
Female Male

Inference:
From the above table I inferred that Out of 100 respondents 69% are male
and 39% are female.

36
2. Most preferred brand in PepsiCo products:

The table below shows the most preferred brand in PepsiCo product by the respondents

TABLE NO 2: Most preferred brand in PepsiCo products

S.NO Particulars Frequency percentage

1 Miranda 20 20

2 Pepsi 25 25

3 7up 16 16

4 Slice 24 24

5 Dew 15 15

Total 100 100

37
Chart no 2:

F requ enc y

30
25
20
15
P e ps i S lic e
10 M ira nda
7 up D ew
5
0
p

w
i

ice
da

ps

7u

De
Pe

Sl
ran
Mi

F req uenc y

Inference:
From the above table it is evident that out of the total 100
respondents 20% like Miranda, 25% like Pepsi, 16% likes 7 up, 24% likes slice
and 15% like’s Mountain dew.

38
3. Satisfaction level of expectation:

The table below shows the satisfaction level of customers’ expectation after
taste soft drinks.

TABLE NO 3: Satisfaction level of expectation

S.NO Particulars Frequency Percentage

1 Yes 85 85

2 No 15 15

Total 100 100

39
CHART NO: 3

Frequency

90
80
70
60
50
40
30
20
10
0
Yes No

Inference:

From the above table it evident that Out of 100 respondents 85% are said yes
and 15% are said no for satisfaction level on their soft drinks

40
4. Customer category based on Frequency of drinking soft drinks:

The below table shows the different group of customer based on the usage.

TABLE NO: 4 Customer categories based on Frequency of drinking soft

drinks.

S.NO Particulars Frequency Percentage

1 Every day

31 31

2 Twice in a week

34 34

3 Monthly or
occasionally
20 20

4 Only at parties
15 15

Total
100 100

41
CHART NO: 4

Frequency

40
35
30
25
20
15
10
5
0
Every Day Twice in a week Monthly or Only at parties
occasionally

INFERENCE:

From the above table it is inferred that Out of 100 respondents 31%
are drink Pepsi everyday, 34% are drink twice or more in a week, 20% are
drink monthly or occasionally, 15% are drink only at party and functions.

42
5. Is the Market Leader Pepsi or Coke?

The table shows the value of who is the market leader in current
scenario

Table 5- The Market Leader Pepsi or Coke;

S.NO Particulars Frequency Percentage

1 Pepsi 79 79

2 Coke 21 21

Total 100 100

43
Chart no 5:

Frequency

90
80
70
60
50
40
30
20
10
0
Pepsi Coke

INFERENCE:
From the above table it is evident that Out of 100 respondents 79%

said Pepsi is the market leader. 21% are said coke is the market leader.

44
6. PepsiCo Has an Interest in Assisting the Society to Lead an Eco
Friendly Lifestyle

The table below shows the response of customer toward the PepsiCo social

responsibility.

TABLE NO: 6- Lead an Eco Friendly Lifestyle

S.NO Particulars Frequency Percentage

1 Strongly agree 30 30

2 Agree 40 40

3 Neutral 5 5

4 Strongly disagree 15 15

5 Disagree 10 10

Total 100 100

45
CHART NO: 6

Frequency

45
40
35
30
25
20
15
10
5
0
e

e
ra
e

ee
re

re
re

ut
Ag

gr
ag
ag

Ne

sa
s
ly

Di

di
ng

ly
ro

ng
St

ro
st

Inference:
From the above table its evident that Out of 100 respondents 15% are drink
strongly disagrees the above statement, 10% are disagreed, 5% are neither
agree nor disagree, 40% are agree and 30% of respondents strongly agree
with the statement. Most of respondents agreed that Pepsico has an interest
in assisting the society to lead an eco friendly lifestyle.

46
7. What Factor Makes It to Be Market Leader

The below table shows the factors that makes the soft drink as market
leader.

Table 7- Factor Makes It to Be Market Leader

S.NO Particulars Frequency percentage

1 Advertising 35 35

2 Availability 15 15

3 Brand name 15 15

4 Sponsoring 9 9

5 Brand personality 26 26

Total 100 100

47
CHART NO: 7

B ran d p e rsonality

26

26
S ponsorin g
9

B rand name
15

15

Av ailability
15

15

Adv e rtising
35

35
0 10 20 30 40 50 60 70 80

Frequenc y perc entage

INFERENCE

From the above table it is inferred that Out of 100 respondents 35%
said that advertisement , 15% said that availability, 15% said that brand
name, 9% said that sponsoring and 26% said brand person are the factors
makes the product as a market leader.

48
8. PepsiCo Is Innovative As It Offers A Variety Of Products For
Various Customers:

The table below shows the response of customer toward the offer introduced
by Pepsi.

TABLE NO: 08- PepsiCo Is Innovative As It Offers A Variety Of Products

S.NO Particulars Frequency Percentage

1 Strongly agree 26 26

2 Agree 35 35

3 Neutral 24 24

4 Disagree 11 11

5 Strongly disagree 4 4

Total 100 100

49
CHART NO: 8

Frequency

40

35

30

25

20

15

10

0
Strongly agree Agree Neutral Disagree stronglydisagree

Inference:
Out of 100 respondents 9% are strongly disagrees the
above statement, 11% are disagreed, 24% are neither agree nor disagree,
35% are agree and 26% of respondents strongly agree with the statement.
Most of respondents agreed that PepsiCo is innovative as it offers a variety of
products for various customers.

50
9. Perception on the Brand Image of Pepsi- Easy To Remember crosses
tabulation:
The table below shows the perception of Pepsi’s brand name.

Table no. 09- Brand Image of Pepsi- Easy To Remember

S.NO Particulars Frequency Percentage

1 Strongly agree 35 35

2 Agree 26 26

3 Neutral 23 23

4 Disagree 12 12

5 Strongly disagree 4 4

Total 100 100

51
CHART NO: 9

Frequency

40

35

30

25

20

15

10

0
Strongly agree Agree Neutral Disagree stronglydisagree

Inference:

Out of 100 respondents 4% are strongly disagrees the

above statement, 12% are disagreed, 23% are neither agree nor disagree,
26% are agree and 35% of respondents strongly agree with the statement.
Most of respondents strongly agreed that PepsiCo is Pepsi’s brand
attractiveness.

52
 10. Perception on the Brand Image of Pepsi-Attractive Cross
Tabulation
The table below shows the perception of Pepsi’s brand attractiveness.

TABLE NO: 10- Brand Image of Pepsi-Attractive

S.NO Particulars Frequency Percentage

1 Strongly agree 24 24

2 Agree 35 35

3 Neutral 20 20

4 Disagree 15 15

5 Strongly disagree 6 6

Total 100 100

53
CHART NO: 10

Frequency

40

35

30

25

20

15

10

0
Strongly agree Agree Neutral Disagree stronglydisagree

Inference:

Out of 100 respondents 6% are strongly disagrees the above statement, 15%
are disagreed, 20% are neither agree nor disagree, 35% are agree and 24%
of respondents strongly agree with the statement. Most of respondents
agreed that Pepsi’s brand attractiveness of various customers.

54
11 .Perception on the Brand Image of Pepsi-Self Esteem Cross
Tabulation
The table below shows the perception of customer while drinking Pepsi.

TABLE NO: 11- Brand Image of Pepsi-Self Esteem

S.NO Particulars Frequency Percentage

1 Strongly agree 21 21

2 Agree 41 41

3 Neutral 19 19

4 Disagree 15 15

5 Strongly disagree 4 4

Total 100 100

55
CHART NO: 11

Frequency

45

40

35

30

25

20

15

10

0
Strongly agree Agree Neutral Disagree stronglydisagree

Inference:

Out of 100 respondents 4% are strongly disagrees the above

statement, 15% are disagreed, 19% are neither agree nor disagree, 41% are
agree and 21% of respondents strongly agree with the statement. Most of
respondents agreed that PepsiCo is self esteem.

56
12. Perception on the Brand Image of Pepsi-Advertisement Cross
Tabulation
The table below shows the perception of Pepsi’s advertisement.

TABLE NO: 12- The Brand Image Of Pepsi-Advertisement

S.NO Particulars Frequency Percentage

1 Strongly agree 31 31

2 Agree 43 43

3 Neutral 11 11

4 Disagree 13 13

5 Strongly disagree 2 2

Total 100 100

57
CHART NO: 12

Frequenc y

50

45
40

35
30

25
20

15

10
5

0
S trongly agree A gree Neutral Dis agree s trongly dis agree

Inference:

Out of 100 respondents 2% are strongly disagrees the above statement, 13%
are disagreed, 11% are neither agree nor disagree, 43% are agree and 31%
of respondents strongly agree with the statement. Most of respondents
agreed that PepsiCo is advertisement is very attractive.

58
13. Level of trust in drinking Pepsi

The table below shows the trust of drinking pepsi.

TABLE NO: 13- The trust of drinking Pepsi

S.NO Particulars Frequency Percentage

1 Very high 24 24

2 High 31 31

3 Moderate 25 25

4 Low 15 15

5 Very low 5 5

Total 100 100

59
CHART NO: 13

Frequency

Very high
High
Moderate
Low
Very low

Inference:

Out of 100 respondents 24% are very highly trusted, 32% are Highly trusted,
25% are moderate, 15% are low and 5% of respondents very low in drinking
Pepsi with trust.

CHAPTER 5

60
----------------------------------------------------------------------------

SUGGESTION &CONCLUSION

61
 1. SUGGESTIONS

 The study suggested that the PepsiCo should concentrate to increase

the availability of the product in Rasipuram town.

 The study suggested that the PepsiCo should concentrate develop its
advertisement more attractive and innovative.

 This study concentrated on certain principles of marketing in the

health care industry, and investigated one specific company only. In
addition to this, the views and perceptions of members on only one
specific package were tested.
 Measurement instruments for brand positioning and identity could be
developed further.

62
 CONCLUSION

The study explored the positioning and brand image by conducting

direct interviews. These interviews were conducted to understand the
perception of the position and personality of a brand, the study described the
data collected on the positioning of a brand and a brand image. The study
also described customers’ opinion based on various factors like product
information, taste, package, design, and advertisement in drinks. Thus the
PepsiCo limited to be a leader in market, it should concentrate on developing
cordial relationship with customers. The availability should be increased; the
package and design should also play a vital role in the development of
PepsiCo limited.

63
----------------------------------------------------------------------------

BIBLIOGRAP
HY

64
 BILIOGRAPHY
 Aaker, D.A., 1996, Building Strong Brands, Free Press, New York, NY.

 Aaker, D.A., 1995, Strategic Met Management, John Wiley and Sons,

New York.

 Aaker, D.A., Joachimsthaler, E., 2000, Brand Leadership, The Free Press,

New York.

 Baker, M., 2000, Marketing strategy and management, Macmillan, Basingstoke.

 De Chernatony, L., Harris, F., Dall’Olmo Riley, F., 2000, “Added value: its

nature, roles and sustainability”, European Journal of Marketing, 34, 1 ,39-56.

 De Chernatony, L., Segal-Horn, S., 2003, “The criteria for successful services

brands”, European Journal of Marketing, 37, 7 / 8, 1095-1118.

 Hofmeyr, J., Rice, B., 2000, Commitment-led marketing : the key to brand

profits is in the customer's mind, Wiley, Chichester, New York.

 Hogan, S., 2001, “Positioning a Brand in the Marketplace”, available on-line from:

http://www.lippincott-marguiles.com/publications/articles/article2.html, accessed

on 6 September 2001.

 Keller, K.L., 1993, “Conceptualising, measuring, and managing customer-based

brand equity”, Journal of Marketing, 57, 1-22.

 Keller, K., 1998, Strategic Brand Management, Prentice Hall, Englewood Cliffs,

NJ. Kotler, P., 1999, Kotler on Marketing. How to create, win and dominate

markets, The Free Press, New York.

65
  Kotler, P., 2000, Marketing Management, Prentice Hall, Upper Saddle River,

N.J.

 Ries, A & trout, j. (1985) positioning: Kampen o ditt madvetande. Lund,

Studentlitteratur.

 Fill, c. (2002) Marketing communication; contexts, strategyes and applications (3th

ed). Prencie Hall.

 Upsaw, L.B. (1995) Building brand identity- A strategy for success in a Hostile
marketplace. New York: john Wiley & Sons.

 Marsden, P. (2000) Brand positioning: meme’s the world marketing Intelligence &
Planning. 20(5), p 307-312.

 Hankinson, G. & Cowking, P. (1993) Branding in action. Mcgraw-Hill Marketing

for Professionals series, Cambridge, McGraw-Hill.

 PepsiCo Inc. (2004). 2004 Annual Report. Retrieved February 17, 2006 from

http://www.pepsico.com

 Brand Positioning – from

www.hightidecreative.com/pdfs/brand_positioning.pdf

 Positioning your brand from

www.safoodcentre.com.au/__data/assets/pdf_file/0005/84857/3.2_Positioning_yo

ur_brand.pdf

other domains:

 www.pepsiindia.co.in/aboutus_corporateprofile.html

 www.customermanufacturing.com/wpfiles/brandpersonify.pdf

 www.prophet.com/insights/articles/topics/brand_identity_positioning.html

 www.themanager.org/pdf/positioning.pdf

66
----------------------------------------------------------------------------

APPENDIX

67
 APPENDIX

QUESTIONAIRE
Dear sir/ madam

My name is J.DINESH KUMAR final year M.B.A student of The Kavery

Engineering college salem , conduct a survey on “A Study on brand
positioning of Pepsi in Rasipuram town .I request you to kindly express
your opinion for the following questions. I assure you that your opinion will be
utilized only for this project work.

1. Name :

2. Gender: Male Female

3. Age

a) 10-20 b) 20-30 c) 30-40 d) above 40

4. Name the brand which comes to your mind when you think about soft

drinks

………………………………………………

5. If yes, which brand you like in PepsiCo products?

a) Miranda b) Pepsi c) 7 Up d) Slice e) Dew

6. Does it satisfy your expectations fully?

Yes No

7. How often you used to drink soft drinks?

a) Every day b) 2-3 times in a week c) monthly or

occasionally d) Only at Parties

68
8. According to you which one is the market leader?(Pepsi or Coke)

…………………………………………………………………………………

9. What makes it to be the market leader?

a) Brand name b) Availability c) Advertising d)

For sponsoring e) Brand personality

69
NOTE: (V- Strongly agree, IV- Agree, III- Nether agree nor
disagree, II- disagree, I- strongly disagree)
(Put (‘√’) mark in the appropriate column)

1. Mark the level of satisfaction given by the Pepsi for the following

attributes:

V IV III II I

Color

Trendy

Innovative

Taste

Quality

2. What is your opinion of the influences in your purchase decision:

Design/label

Package

Suggestion
by
Sales man
Brand
image

Brand
personality

Logo

Advertiseme
nt

NOTE: (V- Strongly agree, IV- Agree, III- Nether agree nor
disagree, II- disagree, I- strongly disagree)

70
(Put (‘√’) mark in the appropriate column)
10. Your perception on the brand image of PEPSI

V IV III II I

easy to remember

very attractive

You will get self esteem while drinking

Pepsi.

The advertisement of the Pepsi

products are very attractive

11. Positioning Frequencies:

PepsiCo has an interest in assisting the

society to lead an eco friendly lifestyle:

PepsiCo is innovative as it offers a

variety of products for various
customers:
12. Mark the level of trust you have in drinking Pepsi?

Very high High Moderate Low Very Low

Thank you

71