Promotion and Price Analysis Paper: Pepsi

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"For over 100 years, Pepsi-Cola has produced some of the finest soft drink ads available anywhere in the world. From todays 'Joy of Pepsi, as sung by Britney Spears, to yesterdays 'Nickel, Nickel (1), our ads are as memorable as the products we produce (http//www.pepsi.com)." Pepsi-Colas ability to create such attractive ads gives the company a competitive marketing edge amongst its toughest competition in the market. Pepsis ads attract the attention of each age class, allowing younger adults to feel older and more established and older adults to feel young again and take pleasure in the "Joy of Pepsi." This paper will illustrate some of the dynamic advertising techniques used by Pepsi-Cola such as television, the Internet, radio, and publicity.

Pepsi does an outstanding job advertising its cola products on television. Television ads have been such a hit for the company in the past, featuring such advertisements as 1s "Be Young, Have Fun, Drink Pepsi," spotlighting NBA superstar Shaquille ONeal; 17s "GeneratioNext" featuring the Spice Girls and rejuvenating the long-running generation theme; and 1s "The Joy of Cola" featuring the voices of Marlon Brando, Issac Hayes, and Aretha Franklin (http//www.pepsi.com). Today, using celebrities such as the Osbornes and the Osmonds to advertise Pepsi Twist, this past Super Bowl was an original way to interact one of Hollywoods clean-cut singing groups with dark-minded heavy metal musician Ozzy Osborne, allowing viewers to understand the concept of Pepsi Twist. Pepsi even represents different cultures. This can be seen most recently with Latin American singing sensation Shakira and former Destinys Child lead singer Beyonc Knowles. In Shakiras commercial, she advertises Pepsi while doing the tango with a grocery store salesman, allowing viewers to feel full of life, get up and dance, and even buy a Pepsi product. Beyonc Knowles has recreated a past commercial hit that previously spotlighted Cindy Crawford wearing a tank top and shorts and grabbing the attention of younger men. In Pepsis new commercial airing this summer, Beyonc gets out of her car at a gas station in a heart-stopping outfit and immediately attracts the attention of a young male gas attendant. Beyonc gets a Pepsi out of the vending machine and asks the speechless attendant for directions to the highway. Once again, Pepsi has done a great job using up-and-coming celebrities to advertise its product. Beyonc is also featured in another television ad for Pepsi, Carmen. Pepsi additionally offers an eye-catching website to on-line viewers.

Pepsis Pepsi-World website (http//www.pepsi.com/home.php) is an inventive website offering an abundance of information to its users. Featured sections include history/ads, Pepsi brands, downloads, wallpapers, trivia games, promotions, interviews featuring Beyonc Knowles and Shakira, and sports appearances featuring NASCAR standout Jeff Gordon. Pepsi does an outstanding job grabbing the on-line users attention in each of these featured sections. For example, if he her she clicks on the sports section, Sammy Sosa immediately fills the screen in a mid home-run swing. Additionally, soccer, racing, and football are all featured on the sports page. An additional highlight on the page is a picture of a television, which viewers can click on, allowing them to watch the Jason Giambi and Sammy Sosa commercial. This is a very interactive way of on-line advertising allowing browsers to receive continued commercial exposure. Pepsi football is another intriguing area of the sports page. This particular promotion featured the NFLs top rookies of 00. For the sports guru, Pepsis sports link is an attention grabber. Regardless of their tastes, visitors can find plenty of entertainment and information on Pepsis website.

Pepsi also participates in radio campaigns. This is another area of advertising that has helped contribute to the continued success of the company. 11s "You Got the Right One Baby Uh-Uh" featuring Ray Charles and the Uh-Uh girls hit radio and television airwaves and become one of the most popular campaigns in 11. In 000, "The Joy of Cola" brought a fresh new jingle for consumers to remember, as it was constantly played on radios across the United States. "The Joy of Cola" was such a success, that in 001, Pepsi updated this slogan to the "Joy of Pepsi" spotlighting Britney Spears. Pepsi projected that this commercial would be anticipated by consumers and offered an on-line debut where more than two () million fans clicked their way to Britneys own version of the "Joy of Pepsi" (http//www.pepsi.com). Currently, Pepsi sponsors Pepsi Sound, which is played on radio stations such as 6.1 Kiss FM and Buy cheap Promotion and Price Analysis Paper: Pepsi term paper

.7 BZZ. A spokesperson for the campaign introduces a new piece of music from a new or past artist, allowing those listening to the radio to be one of the first people to hear a portion of a soon-to-be-released music single. Pepsis constant effort to improve its exposure can also be seen with the publicity of its name.

In the summer of 00, Pepsi is sponsoring Pepsi Smash on the WB television network Wednesday evenings at 00 PM. For six weeks this summer, Pepsi will present a one-hour live concert featuring as many as five groups or artists. What is unique about these shows is that these groups or artists will not lip-sync or sing to a track; everything is live. Pepsi Smash will bring todays favorite artists such as Blackeyed Peas, Jewel, Ashanti, Michelle Branch, and many more to viewers each Wednesday (http//wb17.trb.com). Pepsis concert series is an exciting and intriguing way to publicly bring its name to television viewers. By showcasing todays hottest artists and linking its name to them, Pepsi is reaching out to its pre-teen and teenage audience like never before. Viewers see the Pepsi brand from another angle instead of the usual television commercial and radio advertisements. Pepsis constant exposure has allowed its brand of beverages to excel in its product lifecycle as well.

The product life cycle "describes the stages a really new product idea goes through from beginning to end. The product life cycle is divided into four major stages market introduction, market growth, market maturity, and sales decline (Perreault, McCarthy, 001, p. 70)." The below graph illustrates the life cycle.

The above graph allows one to visualize the stages of the product life cycle. By examining the graph and the stages within the product life cycle, it is evident that Pepsi, having worked hard, has reached its maturity level. A background of Pepsi throughout the years is useful to illustrate how the company has been able to remain a success in the cola industry.

From its beginning in 18, when a young pharmacist named Caleb Brandham experimented with different soft drink concoctions, Pepsi-Cola has been a fierce competitor in the cola wars, having survived financial disaster, war, and strong rivalry from other companies. Within a mere 14 years of its inception, Pepsi-Cola had expanded to over 40 franchises, even registering its trademark in Mexico. Its stronghold on a portion of the world market was slowly taking shape. Throughout the 10s, the company was hit with huge financial loses when the sugar market collapsed in 11, eventually leading to the collapse of Pepsi-Cola, despite all attempts by Brandham to keep the business afloat. Two years later, the company went bankrupt and did not see the light again until it was bought by Loft, Inc., the giant candy company in 11. Pepsi was back on the rise, gaining momentum when it decided to sell a 1-ounce bottle of cola for five cents, the same price charged by its competitors for a 6 ounce bottle.

A year before the United States entered World War II, Pepsi made advertising history by having the first-ever advertising jingle broadcasted nationwide. When the U.S. became involved in the war in 141, the cola company showed its patriotism by changing the colors of the bottle caps to red, white, and blue. This color combination has been the companys trademark color scheme ever since. The post war years brought the creation of television, and Pepsi-Cola wasted no time taking advantage of the new medium by targeting the baby boom generation in the 160s labeling itself the drink of "The Pepsi Generation."

Within 0 years, those baby boomers children were now called the "New Generation" of Pepsi drinkers by the cola companys new advertising campaign. As one of the two major cola manufacturers, Pepsi-Cola works hard to keep its faithful customers while at the same time finding improved ways to attract a new legion of fans.

With each passing decade, Pepsi has reinvented its marketing strategies to ensure its place in the land of cola competition. Despite its turbulent history, Pepsi has maintained a firm grip on the soft drink market. Through all its ups and downs, the company has seen it all and yet has managed to stay on top of the competition, 110 years later.

As noted in the companys history, Pepsi strives to give its customers value for their money. Pepsis ability to sell its 1-ounce bottle to consumers for the same price as its competitors were charging for a six-ounce bottle of cola is just one way Pepsi shows its determination to maintain its market status. Economic forces will always play a vital role in the price that Pepsi charges for its drinks, but through innovative advertising, the company will not suffer. Loyal customers will remain with Pepsi, and Pepsi will attract new consumers. 150s "More Bounce to the Ounce" let consumers know that prices are increasing but he or she is getting "More Bounce to the Ounce" when they buy a Pepsi product.

The aforementioned examples only provide an overview of the world of Pepsi. Year after year, the company has done an exceptional job innovating new ways to let consumers know why Pepsi is the preferred choice. By overcoming adversity and adapting to historical changes, Pepsi has proven its dominance in the market.

References

Perreault, W. D., Jr. & McCarthy, E. J. (1). Basic marketing A global-managerial approach (1th ed.) [University of Phoenix Special Edition Series]. Burr Ridge, IL Irwin/McGraw-Hill

Retrieved August 1, 00 from the World Wide Web http//www.pepsi.com/ads_and_history/legacy/index.php

Retrieved August 1, 00 from the World Wide Web http//www.pepsismash.com/

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