MARKETING PLAN OF HOT ICE TEA BY SHAYAN MAQSOOD

Marketing Plan Hot Ice Tea

Table Of Contents

Sr. ParticularPage

No.

01 Executive Summary 02

02 Company Description 03

03 Situation Analysis & Market Summary 04

04 Trends 05

05 Profitability & future growth potential 06

06 Competition 06

07 Target Market 08

08 Distribution 08

09 Positioning & Advertising 09

10 SWOT Analysis 10

11 Objectives & Goals 13

12 Marker Strategy 14

13 Segmentation 14

14 Targeting 16

15 Positioning 17

16 4 P's 17

17 Action Plan 30

18 Budget 31

19 Control 32

Shayan Maqsood of 32L3F08MCOM5301


EXECUTIVE SUMMARY

The following Marketing plan is about to introduce the new innovative product

by Pepsi which is named as Hot Ice Tea. This will be a convenient product

which will be readily available to quench the thirst of our customers and will

also give the nutritional benefits of Tea. The main characteristics of this

product will be the hot and cool nature of the product i.e. it can be served as a

hot drink as well as a hot drink; in both way it will give the same satisfaction to

the customer and there will be no weather constraint for this product and it

can be used through out the year. So the Hot Ice Tea will not be a seasonal

drink and this will be the main source of success of the product. The product

will be introduced to capture the 20% market share in the category of

functional drinks market. The market is still unserved for this segment and

company will be going to introduce a new a market trend as well as going to

challenge its competitors. This product will lead the company in functional

drink market and will carry the company on the top spot. The target market

for the product will be the health conscious and energetic customers. Our

product will broadly describe the main benefits of tea, Studies continue to

show the beneficial properties of teas, with health benefits ranging from lower

cholesterol levels to improve arterial health and decreasing chance of cancer.

This positive press has definitely increased the demand for tea. In the first

year of operation the Hot Ice Tea will be introduced in Pakistan because there

are more potential and enthusiastic customers and we can get result more

fastly about the success of product.

The Company will increase its market share through targeted advertising to

increase the number customers who want convenience and are looking to

have a drink of unique nature which will give them taste, energy and the

nutritional benefits of tea.



COMPANY DEESCRIPTION

PEPSI INTERNATIONAL

HISTORY

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

about $27 billion and over 143,000 employees. The company consists of the

snack businesses of Frito-Lay North America and Frito-Lay International; the

beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North

America and PepsiCo Beverages International; and Quaker Foods North

America, manufacturer and marketer of ready-to-eat cereals and other food

products. PepsiCo brands are available in nearly 200 countries and territories.

Many of PepsiCo's brand names are over 100-years-old, but the corporation is

relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-

Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with

The Quaker Oats Company, including Gatorade, in 2001.would entertain the

listener with the latest musical selections rendered by violin or piano or both.

The new name, “Pepsi Cola”, is derived from the two of the principle

ingredients, Pepsin and Kola Nuts. It was first used on the August 28. At that

time, Bradham’s advertising praises his drink as “Exhilarating, invigorating,

aids digestion”.

In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today

Lipton is the biggest selling ready-to-drink tea brand in the United States.

Outside the United States, Pepsi-Cola Company's soft drink operations include

the business of Seven-Up International. Pepsi-Cola beverages are available in

more than 190 countries and territories.


Marketing Plan Hot Ice Tea In Asia, they selected Lahore to make their regional office. This was done in

1970. This regional office is monitoring all the operations carried out in South

West Asia. As in Pakistan, they only entered beverage industry. They have

eleven bottlers covering whole Pakistan. The plant operating here is Riaz

Bottlers (Pvt) LTD. This plant was established at Lahore in 1974. The total

capacity of the plant is 30,000 cases per day. They have four filling lines in the

plant operating on the three shift bases. Each shift is of eight hours. They have

permanent work force of 750 people and they employee approximately 1000

people more on temporary basis during summer season.

(Source www.pepsico.com)

Situation Analysis

Pakistani lifestyle and work habits have made convenience a necessity. As

employers demand for productivity from their employees, consumers are

more pressed for time. In addition, the shaky economy has made Pakistani

fear for their jobs; thus, any product that can fill the consumers' need for

convenience and speed are almost automatically embraced into the Pakistani

life style. Hot Ice Tea offers a unique drinking experience to its consumers.

Market Summary

Industry Analysis In 2007, the tea industry reached the $1.7 billion category

and it is expected to continue growing indefinitely (Mintel2007). Market

analysts believe the tea industry will continue to boom and is not expected to

reach saturation level in the near future. The favorable movement in the tea

industry can be attributed to two major factors: a) consumers need for

convenience and time-saving services; and b) the positive press given to tea.

Trends



For the last decade, the health benefits of tea have gained wide coverage in

the media. Studies continue to show the beneficial properties of teas, with

health benefits ranging from lower cholesterol levels to improve arterial health

and decreasing chance of cancer. This positive press has definitely catapulted

the demand for tea.

Both the need for convenience and positive press on tea have spurred an

increase in sales of tea products, specifically ready-to-drink (RTD) teas sold in

single-serve containers Recognizing this trend, various companies in the tea

industry have come up with innovative products to take advantage of the

booming market for ready-to-drink teas. Lipton tea, one of the global leaders

in refreshment brands, launched new products to meet the growing the need

for ready-to drink teas and introduced innovative product line to capture the

health-conscious market.

Today, while the soft drink industry’s value has increased , the volume sales of

carbonated soft drinks has declined due to a large proportion of consumers

who are opting for the trend towards healthier alternatives in the functional

drink segment (energy drinks, smoothies, milk & juice drinks, sports drinks) as

well as bottled juices and water. Companies have been actively engaged in

new product developments in order to counter the growing concerns about

negative health impacts of high-fructose drinks, but also to increase the

demand in a market where product offerings are quickly maturing. New flavor

introductions and health-conscious formulations have been launched in an

attempt to offset the decline in carbonated soft drink sales. The functional

market is expected to show sustained growth and consumer interest in the

future years as consumption shifts to trendier, healthier and more

sophisticated product.

Profitability & future growth potential


Marketing Plan Hot Ice Tea In 1993, Concentrate Producers earned 29% pretax profits on their sales, while

bottlers earned 9% profits on their sales, for a total industry profitability of

14%. While the functional drinks sector only accounts for 3.7% of the total soft

drinks sales in 2004, estimates are forecasting a growth of 7.3% in sales and

11.0% in volume consumption by 2009. (Source wikipidia)

Competition

Pepsi's top competitors for the soft drinks industry are coca cola (43.6%) and

Cadbury-Schweppes (15.8% of market), which combined, represent about 58%

of the total market. Pepsi's share is 42.7% of the total soft drinks market. In

the functional drinks sector, PepsiCo is the current market leader with 60.5%

of the market shares in 2007. Coca-Cola Co is second with 32.8%. Hot Ice Tea

will launch into a currently un served subset of that market (RTD “Ready-To-

Drink” Hot Ice Tea), which is until now un existing. It is anticipated that the

following brands could potentially compete with Hot Ice Tea in the functional

drinks market: Brisk, Lipton Iced Tea, Sobe (owned by PepsiCo), as well as

Snapple’s and Hawaiian Punch (owned by Cadbury/Schweppes). Hot Ice Tea

also creates a potential situation for cannibalism with Pepsi's very own brands

of iced tea and other functional drinks.

Consumers firstly decide that they are going to have a soft drink. Then they

compete brands with each other. Like they compete Coke with Pepsi and

Sprite with 7up and team .So the major competitor of PEPSI is Coke.

When they motivate to any other brand or on PEPSI it’s in instinct basically

that based on messages derive certain feelings.

But PEPSI thinks in a different way, they believe that RC Cola, new coming

AMRAT Cola, and all juices, even they take water and tea as their competitors.

DIRECT COMPETITOR


Marketing Plan Hot Ice Tea COCA COLA is the direct competitor of PEPSI and all other soft drinks in the

market.

The Coca-Cola Company’s core undertaking is

to benefit and refresh everyone it reaches.

Founded in 1886, we are the world’s leading

manufacturer, marketer, and distributor of non-alcoholic beverage

concentrates and syrups, which are used to produce nearly 400 beverage

brands that make up for our wide portfolio. Our corporate headquarters are

established in Atlanta, and we are holding local operations in over 200

countries around the world. Our activities cover all sectors of the beverage

industry. We are the second leading player in functional and Asian specialty

drinks, while ranking number one in value for the ready-to-drink tea sector.

(Company source)

INDIRECT COMPETITOR

All the tea brands and water is in indirect competition with PEPSI.

Source: (PEPSI website)

TARGET MARKET

There are two major target markets for ready-to-drink Hot ice tea.

One group is the consumers on the go. These are the employees,

students, and other consumers who lead a busy lifestyle. The hectic

Pakistani lifestyle demands for optimize productivity with lesser time-

consumption. Thus, there is a need for products that are accessible and

readily available. Convenience has dominated the market, particularly

the food and beverage industry.



The other group is made up of health conscious consumers, specifically

the younger who demand anything healthy. The positive reviews as well

as the studies on the benefits of tea drinking have stirred an interest in

tea drinking.

Distribution

The current market for Hot Ice Tea is fragmented, since the distribution is

restricted to local outlets and selling points such as counters and small Hot Ice

Tea shops in scattered locations. However, direct competition from these local

players is not anticipated, since the marketing roll-out will initially emphasize

on product awareness and both sales channels do not reach or serve the same

market (retailing vs. counter/restoration). A strong distribution system already

exists with PEPSI, since partnerships and channels are already in place. This

will facilitate the product’s reach into its target market.

1. Retailing

2. Wholesaling



Positioning

“Hot Ice Tea” will be a bottled beverage and will be positioned as the only

ready-to-drink Hot Ice Tea product available on the market. The beverage will

have a differential advantage that it can be drink as hot drink and can be

taken as cold drink. It will bring an entirely unique drinking experience to its

consumers. It will present itself as a funky and unusual alternative to

traditional tea while providing the great taste of authentic fruit juice in an

attractive and convenient packaging.

(www.pepsico.com)

Advertising

Informative Advertising

There will be Informative Advertising during market of Hot Ice Tea and that will

help company:

1. Informing the market of a price

2. Describing available services

3. Correcting the false impression

4. Building a brand and company

image

5. communicating customer value

6. Telling market about a new

product

7. Explaining hoe the product

works

8. Suggesting new uses for a

product

Persuasive Advertising

It will help marketers to:

1. Building brand preferences

2. Encouraging switching to your brand

3. Changing customer's perception of product attribute

4. Persuading customers to purchase now

5. Convincing customers to tell others about product

SWOT Analysis (Source PEPSI web site)



STRENGTHS WEAKNESSES

Pepsi has a broader product line and outstanding reputation.

Merger of Quaker Oats produced synergy across the board.

Record revenues and increasing market share.

Lack of capital constraints (availability of large free cash flow).

Great brands, strong distribution, innovative capabilities

Number one maker of snacks, such as corn chips and potato chips

PepsiCo sells three products through the same distribution channel.

• Pepsi hard to inspire vision and direction for large global company.

• Not all PepsiCo products bear the company name

• PepsiCo is far away from leader Coca-cola in the international market – demand is highly elastic.

OPPORTUNITIES THREATS

Food division should expand internationally

Noncarbonated drinks are the fastest-growing part of the industry

There are increasing trend toward healthy foods

Focus on most important customer trend - "Convenience".

• F&B industry is mature

• Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market e.g. in India

• Over 50 percent of the company's sales come from Frito-Lay; this is a threat if the market takes a downturn

• PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft foods (because of broader product line) which are well-run and financially sound competitors.

• Size of company will demand a varied marketing program; Social, cultural, economic, political and governmental constrains.



SWOT Analysis of Pepsi Co.

Strength

• Pepsi has a broader product line and outstanding reputation.

• Merger of Quaker Oats produced synergy across the board.

•Record revenues and increasing market share.

• Lack of capital constraints (availability of large free cash flow).

Great brands, strong distribution, innovative capabilities

Number one maker of snacks, such as corn chips and potato chips

• PepsiCo sells three products through the same distribution channel.

For example, combining the production capabilities of Pepsi, Gatorade and

Tropicana is a big opportunity to reduce costs, improve efficiency and smooth

out the impact of seasonal fluctuations in demand for particular product.

Weakness

• Pepsi hard to inspire vision and direction for large global company.

• Not all PepsiCo products bear the company name

• PepsiCo is far away from leader Coca-cola in the international market –

demand is highly elastic.



Opportunity

• Food division should expand internationally

• Noncarbonated drinks are the fastest-growing part of the industry

• There are increasing trend toward healthy foods

• Focus on most important customer trend - "Convenience".

Threats

• F&B industry is mature

• Pepsi is blamed for pesticide residues in their products in one of their most

promising emerging market e.g. in India

• Over 50 percent of the company's sales come from Frito-Lay; this is a threat

if the market takes a downturn

• PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft

foods (because of broader product line) which are well-run and financially

sound competitors.

• Size of company will demand a varied marketing program; Social, cultural,

economic, political and governmental constrains.

Objectives and Goals

Company is centered on these objectives:



With the expected growth of the billion dollar ready-to-drink ice tea market, Hot

Ice Tea is poised to capture a bigger share of the market with an aggressive

marketing strategy: from packaging to advertising.

Short Term Goals:

Improve market presence by 20%

Short-Term Objectives

Aggressive Marketing Strategy PepsiCo can take advantage of the positive press

on the health benefits of tea to boost the sales of its hot ice tea product line. The

company can use recent studies on the health benefits of tea as the basis of its

press releases and advertising campaigns.

Improve Packaging The Hot Ice Tea will be introduced in two sizes: the 250ml

bottle and 1/2 liter bottle. PepsiCo can come up with other packaging sizes to

ensure that consumers will have other choices and that Hot Ice Tea will be easily

and readily available to consumers.

Improve Shelf Presence PepsiCo can make a deal with retailers ensure retail

shelf space and prominent positioning for Hot Ice Tea.“ Although an average

shopper may not notice what brands are positioned in prominent places on

shelves or how much room is allotted to each manufacturer, shelf space and

positioning as make or break factors in introducing new products”

Long-Term Goals:

World Number One ready-to-drink ice tea

Long-Term Objectives:

Product Innovation PepsiCo must continue its innovative research and development strategy to come up with new flavors and products. PepsiCo has extensive research facilities on product improvement. The company can use its resources and professional expertise to come up with new flavors that will suit the continuous demand for healthy ready-to-drink hot ice tea. With aggressive marketing strategy and product positioning, Hot Ice Tea is ready to take the global lead in ready-to-drink tea industry.



MARKETING STRETEGY

SEGMENTATION

Segmentation variables for consumer market of Hot Ice Tea

TYPE VARIABLES PARTICULARS

World region or country

Nationwide (all provinces and territories) with emphasis on urban / metropolitan areas, and adapted strategies for all geographical groups

City or Metro size

5000-20,000,upto 400,000 and over

Density Urban, suburban

Climate Northern southern eastern western

Age 12-19,20-34,35-49,50-64,65+

Gender Male , Female

Family size 1-2,3-4,5+

Family Life Cycle

Young ,single married under 18 older

Income Under 10,000 and over 100,000

Occupation Professional ,proprietors, clerical sales persons

Education Grade school or less high school ,graduate and above

Race All (Asian ,Hispanic, black ,white)

Generation Generation y

Social class Working class, middle class, upper middle class, lower uppers ,upper uppers



Life style Achievers and strivers

Personality Compulsive ,authoritarian gregarious, ambitious

Occasions Regular occasion and Special occasion

Benefits Quality, convenience, nutritional

User Status Non-user, regular user, first time user

Usage rate Light user , medium user , heavy user

Loyalty status None , medium , strong

Readiness stage

Un aware , aware ,interested , intended to buy

Attitude towards product

Positive, enthusiastic , indifferent



TARGETING

Segment identification:

RTD (Ready-to-drink) bottled Hot Ice Tea, to be established within the

Functional Drinks sector.

Segment needs:

The product will have both physiological need (hydrating and nutritional value)

and social needs (perception of a social, fun drink with a sense of belonging

within peer consumer groups)

Segment trends:

The current trends include a shift away from junk foods and carbonated

drinks, a growing interest for healthier / beneficial products for the “mind and

body” the trend towards the availability of on-the-go products for those with

an active lifestyle, as well as the trend for personalization through

customization (or for beverages, through variety-seeking in a wide

introduction of flavours. (www.oppapers.com)

Segment growth potential:

Statistical reports anticipate a segment growth of 1.72% over the next 9 years

(2015) for the 10-29 years old subsets.

(www.oppapers.com)


POSITIONNING

Positioning strategy

The only RTD bottled Hot Ice Tea available. Funky & eye-catching bottle,

functional packaging, premium-priced, cool, new and unusual, unique drinking

experience, aspects of play variety of flavors, sweet, refreshing, for hip &

young people, healthier alternative to heavy-sugar drinks.

POSITIONING STATEMENT

To young active soft drink customers who have little time for sleep, Hot Ice

Tea gives you the nutritional benefits of tea and keep you awaken. You can

take it while on the go, now it's your choice that you can chill it and you can

hot it. There is no boundary of season now because Hot Ice Tea can be taken

from both aspects hot drink and cold drink.

PRODUCT

PRODUCT STRATEGY

The core

o Hot Ice Tea beverage in a pre-bottled, ready-to-drink format.

The actual product

The Hot Ice Tea will be a convenience product.

o Packaging and labeling:

1. Twist Cap

2. freshness seal

3. Easy to grab bottle

4. Flavor

5. logo of Hot Ice Tea

6. Slogan

7. Ingredients

8. PEPSI product

9. 250 ml bottle

10. Nutritional Details

11. Sweetened or Diet

o Branding:

Colorful, aspect of play, round shaped, prominent Hot Ice Tea logo written in

modern font.

o Trade name:

Hot Ice Tea ™, a PEPSI product

o Brand personality:

Energy, funky, cool, functional, original, funny, healthy, etc.

o Brand equity:

PEPSI provides a quality, consistent, innovative and accessible soft drink

reputation.

o Product life cycle:

Hot Ice Tea is a low-learning product. With a strong marketing campaign,

“sales [will] begin immediately and the benefits of the purchase are readily

understood” Since Hot Ice Tea is prone to product imitation, Pepsi's strategy is

to broaden distribution quickly, which is currently feasible thanks to the

company’s high manufacturing capacity.

o Product class:

Food & beverage Soft Drinks Functional Drinks Hot Ice Tea follows the

practice of product modification PEPSI is introducing an existing beverage

(Hot Ice Tea) but redefines the drink with a new, more convenient package.

Hot Ice Tea will now become a widely available drink in multiple retailing

(distribution) channels.

Product Quality

Performance Quality

The performance quality of Hot Ice Tea will be that it will produce what it

functions, and the main function of Hot Ice Tea is the hot and cool nature

of product. Customer can take it as a hot drink by got hot by oven and can

take it as cool drink by chilling it in deep freezer it is up to the customer.

Conformance Quality

The conformance quality of Hot Ice Tea will be that it will be free from any

defects; it will deliver its targeted performance and quality

PRICE

PRICE STRATEGY

The price strategy that will be undertaken should consider the following

aspects:

1. Consumer demand

2. The product lifecycle

3. Potential substitutes

Customer demand

Customer demand is a crucial factor which is driven by tastes, income and

availability of others similar products at a different price. For a lot of

consumers, value and price are highly related: ‘’the higher the price, the

higher the value’’. Consequently, Pepsi's intention to position Hot Ice Tea as

a unique, innovative and attractive product gives

it a certain control over Hot Ice Tea price. To be

able to implement higher pricing though, the

minimization of the non-monetary costs to

customers should also be include along with

awareness of the product (notably by advertising)

and value (benefits).

The product lifecycle

The company should take advantage also to the fact that the newer the

product and the earlier in its lifecycle the higher the price can usually be. It

ensures a high profit margin as the early adopters buy the product and the

firm seeks to recoup development costs quickly and it also brings a certain

prestige to the product. (Source netmba.com)

Product development

It begins when the company finds and develops a new product idea. During

product development, sales are zero and the company's investment costs

mount.

Introduction

Is the period of slow sales growth as the product is introduced in the market.

Profits are nonexistent in this stage because of the heavy expenses of product

introduction.

Growth

Is a period of rapid market acceptance and increasing profits .

Maturity

Is a period of slowdown in sales growth because the product has achieved

acceptance by most potential buyers. Profits level off or decline because of

increased marketing outlays to defend the product against competition.

Decline

Is the period when sales fall off and profits drop. (Ref. from book)

Potential substitutes

PEPSI is constrained by the monopolistic market in which it competes. The

main characteristic however is product differentiation.

Pricing strategy

The point here is that PEPSI can not set a price that is too high because

competitors will be attracted by potential profits and will follow by a lower

price. After having taken all the important factors into consideration, there

are five price-level fixing approaches seem appropriate.

1. Cost Based Pricing

One of the central objectives of this project being to become the market

leader in functional drinks, PEPSI is willing to stay among the top competitors,

if not becoming the greater, by achieving a certain target profit. This could be

obtained by establish a price that will largely cover variable and fixed costs

while bringing tremendous profits.

2. Value Added Pricing

Competitors and potential substitute's prices can also be part of the strategy.

Having a higher price could make customers aware of the additional benefits

and the higher quality of Hot Ice Tea.

3. Value based Pricing

The company sets its target price based on customer perceptions of the

product value. The targeted value and price then drive decisions about

product design and what cost can be incurred. As a result pricing begins with

analyzing consumer needs and value perceptions, and price is set to match

consumer's perceived value.

4. Market Penetration Pricing

The company can set a low price for a new product in order to attract a large

number of buyers and a large market share.

5. Break-even pricing

The company has to make some strategies for break-even prices, setting

prices to break even on the costs of making and marketing a product; or

setting prices to make a target profit.

PROMOTION

PROMOTION STRATEGY

Objectives:

To initiate strong awareness about the launch of Hot Ice Tea throughout

Generation Y (10-29 years old) consumers as well as their parents.

To win market shares over our top functional drinks competitor, PepsiCo.

The promotional activities will convey the clear message that “Hot Ice Tea is a

healthy drink for sporty and young people who simply enjoy taking care of

their body and life.”

Concepts:

“Think outside the bubble”: Be Bold, Be Original, Be Different, Be

Yourself.

“A good spirit in a good body.”

“For the out-of-the-ordinary individuals who like to challenge

themselves.

Media selection:

Before choosing the appropriate Medias, it is important to note that

Generation Y consumers only give partial attention to media. However, they

can be reached through integrated programs. They are typically using more

than one communication media at a time; a behaviour that is often called

“multitasking”. This group of consumers doesn’t give its full attention to one

single message, but rather uses continuous partial attention to scan the

media. Marketers can still communicate with Generation Y by using a variety

of targeted promotional tools. Another important tactic to reach our target

market is through “Hot Ice Tea” marketing, which PEPSI will heavily use in this

campaign (campus, contests).

Advertising:

Output Examples

Television GEO TV. ARYONE DIGITAL.AAG TV

Radio FM100,FM103,FM106

Magazines TIME MAGAZINE ,akhbar e jahan ,family

Internet Banners on selected websites (gaming, sports, Google,

yahoo etc.)

Outdoors Billboards and prints in select areas including:

Campuses, transportation (bus, metro, stations)

Tourist areas in high seasonal periods

Personal

selling

Direct contact with retailers, sales kit strategies to be

explained later in the text.

Public

relations

Stands or special displays and events in schools, malls,

sports events (i.e. IPL SEASON 2), sponsorship activities

Publicity Conferences, press releases (print and online), marketing

through TV coverage

Justifications for advertising selections

-TV:

Most viewed channel for now a days are geo ,Ary one world and Aag tv

and specially etc and MTV are the most viewed channels by teen age groups.

TV communicates with sight, sound and motion, which is needed for HOT ICE

TEA. It is the only media that can reach 99% of the homes at once. PEPSI has

the budget to cover the high costs of this media.

-Radio:

FM 100 ,FM 103 ,FM 106.2 AND FM 101 are the most popular fm radio

stations which are equally listened by every age group.

Radio is an already segmented medium. There are many radio stations in

Pakistan. The average University or college student is a surprisingly heavy

radio listener and spends more time during the day listening to radio than

watching network television we could also use of “Interactive radio” as Pepsi

has already done in the past.

-Magazines:

We should take advantage of the fact that magazines have become a

very specialized medium. There are many consumers' magazines in Pakistan.

Good color production is also an advantage that creates strong images which

is the purpose of PEPSI with its HOT ICE TEA brand. Each magazine’s readers

often represent a unique profile.

Reaching:

-AKHBAR E JAHAN (is the largest selling Urdu magazine in the world)

-FAMILY MAGAZINE

-DEFENCE JOURNAL

-YOUNG WORLD (weekly magazine for young people)

-HUMSAFAR

-PAKISTAN PUNCH

-SHE MAGAZINE (for young girls)

(www.allyoucanread.com)

-Internet :

Online advertising is similar to print advertising in that it offers a visual

message. It also has additional advantages; it can also use the audio and

video capabilities. As we are targeting our ads to young outgoing people,

sound and movement may attract more attention from viewers and has the

unique feature of being interactive. Interactive media would offer PEPSI the

opportunity to reach younger consumers who have developed a preference for

online communication.

-Outdoor:

Billboards in specific geographical area would allow us get a good reach and

frequency. It is a low cost and flexible alternative. (Campus, malls, Bus and

metro stations)

Promotional Mix:

Contests:

“Win another Hot Ice Tea flavour”, “Uncover a secret code underneath the

bottle cap and win sporting goods and electronics by logging on the website”,

“Win a trip for the 2009 ICL IN INDIA”. (Arguments: It will increase consumer

purchases and encourage consumer involvement with the product).

Samples:

Distributed in supermarkets, school/universities. Samples are a way to avoid

product resistance since people are not used to find bubbles in their drinks.

Arguments: It will encourage new product purchases and it represents low risk

for consumers since they get it for free. They have nothing to loose by trying

it.

Point-of-purchase:

In supermarkets (to reach the parents of generation Y). Arguments: It is also a

mean to increase product trial and provides a good product visibility.

Others:

In subsequent years, engage in product placement in TV shows or movies.

Trade oriented:

Allowances and discounts:

Case allowance (Arguments: The “free goods” approach will be used so it can

encourage retailers to buy more of the product to get a certain amount for

free).

Cooperative advertising:

To encourage retailers to buy our product and to maintain our high level of

advertisement that consumers expect from PEPSI.

Other considerations:

Scheduling of the advertising:

Pulse scheduling (promotional presence year-round, but emphasized and

intensified before and during summer).

IMC (integrated marketing communication) (source beverage digest)

Target Audience:

Intermediary:

Personal selling will be more often used

Ultimate consumer:

PEPSI will use more of mass media because the amount of potential buyers is

large.

PLACE

PLACE (DISTRIBUTION STRATEGY)

Hot Ice Tea will be distributed through these channels: supermarkets,

convenience stores, independent food stores, discount stores, multiple

grocers, direct sales.

ACTION PLAN

Step Output Period of time Arguments

1 Personal selling 1st month to 2nd monthTo make Pakistani retailers aware of Hot Ice Tea

so they can order it in time

2 Radio spots2nd month to mid of 3rd

month

Radio is the most listened media by students and

peoples on the go

3 Magazines adsMid of 3rd month to 4th

month

The target market will then match an image with the

name of the product more easily. The recognition of

Hot Ice Tea will be faster.

4 Television spotsMid of 3rd month to 4th

month

To send a wide message over Pakistan that Hot

Ice Tea is now available.

5Point of

purchase5th month to 6th month

Making a special section for the Hot Ice Tea in

Grocery store will help the new potential buyers to

find our product faster and more easily.

6 OutdoorsMid of 3rd month to 4th

month

Putting adds in specific places where Generation Y

hangs out will create an increased awareness of

Hot Ice Tea

7 Public Relations 6th month to 7th month

We will use special events (sports and others) to

promote Hot Ice Tea and also to get in touch with

our potential market. It will allow PEPSI to interact

with our Generation Y Consumers.

8 Contest 7th month to 8th monthWe will use contest to give a second "push" to the

sales of the Hot Ice Tea.

9 Publicity All the timeUse of TV ads and news to make the general public

aware of the existence of Hot Ice Tea.

MARKETING DEPARTMENT HIRARCHRY CHART

BUDGET

The estimated cost that will incurred while marketing of Hot Ice Tea is about

10 crores or 10 billion rupees for one year.

The details are as follows:

Media Explanation of estimated cost that will incurred for 1 year

T.V Adds on TV with different celebrities for one year will cost approx. 7 crores

NEWS PAPER

Add in leading news papers will cost approx. 2 million

RADIO For 30 second add for 2 months will cost approx. 380,400

MAGAZINE For 1 month advertising in Akhbar e Jahan will cost approx. 200,000

BILL BOARDS

For 3 bill boards on main locations acquiring will cost approx. 10.5 million

FREE SAMPLING TO RETAILORS

Free sampling to main retailers will cost approx. 300,000

CONTESTS After 6 month of operation if there will be a need to give a 2nd push to our sales and a contest has to be arranged that will approx. cost about 5million

CONTROL

MARKETING DEPARTMENT

DIRECTOR MARKETING

SALES MANAGER

ADVERTISING MANAGER

DISTRIBUTION MANAGER

BRAND MANAGER

MARKET RESEARCH MANAGER

In the first month of operation Management will over view that whether the

Marketing goals and objectives are going in right direction or not if not than

what went wrong and what are differences between actual and expected

performance. This may require changing the action programs or even

changing the goals.

Operating control

It involves checking ongoing performance against the annual plan and

taking corrective action when necessary. It will ensure us that the com-any

achieves the sales, profits and other goals set out in annual plan. It also

involves determining the profitability of product.

Strategic Control

It involves looking at whether the company's basic strategies are well

matched to its opportunities. Marketing strategies and programs can

quickly become out-dated and there will be need of periodically reassess its

over all approach to the market-place. A major tool is marketing audit.

Marketing Audit

There will be a need of monthly marketing audit regarding current activities

and sales volume. It will cover all the marketing areas of business. It will

include audit of:

1. Marketing Environment

2. Marketing Strategy

3. Marketing Organization

4. Marketing Systems

5. Marketing Mix

6. Marketing productivity

7. Profitability

Measuring and Managing return on Marketing Investments

After six months of operation we have to measure that whether our

investment is being spent well or not? Are we getting targeted Return on

Investment or not?

Return on Investment

The net return from a marketing investment divided by the costs of the

marketing investment. It measures the profits generated by investments in

marketing activities. (Source principles of marketing)

The consumer purchase decision process

Routine problem solving

Economic Needs

Search for information

Evaluate alternatives and decide on solution

Purchase product

Post-purchase evaluation

Postpone decision

Extensive problem solving

Purchase situation

Social influences

Need motivation

Psychological variables

MARKETING PLAN OF HOT ICE TEA BY SHAYAN MAQSOOD

Business

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