MARKETING ASSIGNMENT 01

SUBMITTED TO:

Miss Sobia Shujat

Dated:

17 October 2011, Monday

Class:

BBA-1B
PREPARED BY:

FAIZA BAIG HIRA SAFDAR FIRDOUS SAEED AHSAN KHALIQUE SOHAIL ASGHAR SEHRISH NAHEED

PORTFOLIO ANALYSIS A tool by which management identifies and evaluates the various businesses that makes up the company. Colas portfolio analysis is done as follows. BCG MATRIX In the BCG (Boston Consulting Group) approach, a company classifies all its BUS according to the growth share matrix. Coke is one of the main product lines of the Coca Cola Company. It is the one which is giving maximum revenues to it by different products in this line. Here we have classified some of its major products in the BCG matrix on the basis of their fame and liking of the people.

STAR
Coke Classic is the basic product through which the Coca Cola Company got the fame. It is one product, which gives the maximum revenue from all over the world. It is one flavor, which has the maximum consumers all over the world. Coke has already worked a lot on it by launching new flavors in it, but it is a product they can turn as famous as Coke Classic

CASH COWS
Fanta and Sprite are the products, which the Coca Cola Company can never think of stop producing. It is the one which make the coke company a huge success; it was one product which gives billions of dollars as revenue from world over. Whenever the company thinks of launching its product in a country the first product they launch is coke classic as they know that if dont work here then nothing else can.

QUESTION MARK
Products that are still not a big hit as they havent consumed much time yet. Sprite 3G, Sprite Zero, Diet Coke and kinley are the examples of there question marks as the question marks as they have not take much time yet to get a hold of market and not even the large percentage of the people have tasted it. So it needs time to be fully tested by the company and the company needs to think whether it should continue the production of or should divert to something new.

DOG
In BCG matrix Dog is a product that has not worked good or a product which has been a source of loss. Flavored Fanta is one product that was not a big hit. Even its not a long period which flavored Fanta has consumed but still there are signs that it wont be a success. So its better for the company to get rid of it

Market Development is the expansion of the total market for a product or company by (1) entering new segments of the market, (2) converting nonusers into users, and/or (3) increasing usage per user. Below are a few ways through which firms can grow their operations: * Market penetration * Market development * Product development * Diversification

Growth strategies of PEPSICO

MARKET PENETRATION
PepsiCo is the worlds second largest carbonated soft drink manufacturer and the largest packaged foods product manufacturer. Pepsi re-branded many of its products like Diet Pepsi Max was re-branded as Pepsi Max. The Company is now making a greater push into healthy food options, which could expand Gatorade, Tropicana, and Quaker food operations. As a part of its strategy to penetrate the market for nutritious convenience foods, Pepsi will soon begin distributing an 80-calorie fruit puree called Tropolis (marketed as a snack rather than a beverage) in test markets through its Tropicana division. The new product could piggyback success of PepsiCos Naked Juice smoothie line (for which a bottle typically contains 200 to 400 calories). Pepsi will market the product in apple, grape and cherry flavors. The company reportedly worked closely with its target audience to develop the product, and has high hopes for its success.

MARKET DEVELOPMENT
Market development is a growth strategy that identifies and develops new market segments for current products. It can be divided into two; Demographic and Geographic Development. 1. Demographic market development is the study of people and the study of population. It includes age,gender,income,education,occupation,religion,nationality etc. Pepsi commercials include people of every gender and generation for example in one commercial it includes singers (like Ali Zafar,Junaid Jamshed,Micheal Jackson,Shakira,Britney Spears) for actors(it includes Ali Zafar,Sharukh khan,Saif Ali Khan,Kareena Kapoor,Preety Zinta) or cricketers it starred (Wasim Akram,Dhoni,Waqar Yonus,Shahid Afridi.Shoaib Akhter). In a nutshell Pepsi commercials improve their market share through demographic market development.

2. Geographic market development means location wise development. If a company has launched a product in a particular country or region and it is successfully running there so the company will think to launch it in some other region or country as well, to increase their market share. For example PepsiCo company launched lays chips in foreign countries then in India and then in Pakistan. In foreign countries it launched the entire flavors of the product but here in Pakistan they just launched 3flavours including(salted,masala and French cheese). Now as the other flavors are running successfully in other regions and countries so the PepsiCo company decided to launch the other flavours in Pakistan as well which includes (grilled onion, salt and vinegar,bbq,sour cream and onion,chicken achaari,magic masala)

PRODUCT DEVELOPMENT
Product development is a growth strategy that offers new or modified products to existing market segments. Pepsi, the US cola giant that has also diversified into orange juice through Tropicana has discontinued Pepsi Raw, after two years in the U.K market. As part of a re-branding strategy to focus on healthy alternatives to cola, Pepsi Raw was launched exclusively in the U.K and sold with confusing healthy credentials: despite containing no flavorings, colorings, sweeteners or preservatives, it still had added sugar. Although the product was essentially an extension strategy of their cola which is a cash cow that is well into the maturity stage of the product life-cycle Pepsi Raw, itself, is an example of the risks associated with new product development

DIVERSIFICATION
PepsiCo Diversified itself into PepsiCo Worldwide Foods and PepsiCo Worldwide Beverages and placing their beverages and food products under the separate operations respectively. Related diversification: Brands like, Tropicana brands and Gatorade brands are examples of related diversification.

Un Related diversification: Brands like Frito-Lay brands and Quaker brands are examples of unrelated diversification.