PepsiCo Incorporated Adriane Payn Aimee Renfro Clinton Eastman Scott Blankenship

PepsiCo Inc. Mission: “ to be the world’s premier consumer products company focused on convenient 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 ”

3 PepsiCo Inc. Customer Orientation Marketing Concept

4 PepsiCo Inc. Customer Orientation Organization’s Performance Objectives Marketing Concept

5 PepsiCo Inc. Customer Orientation Organization’s Performance Objectives Coordinated Market Activities Marketing Concept

6 PepsiCo Inc. Customer Orientation Organization’s Performance Objectives Coordinated Market Activities Consumer Satisfaction Marketing Concept

7 PepsiCo Inc. Customer Orientation Organization’s Performance Objectives Coordinated Market Activities Consumer Satisfaction Organizational Success Marketing Concept

8 PepsiCo Inc. Company’s Marketing Program Economic Conditions Demo- graphics Competition Technology Political And legal Forces Social And Cultural Forces

Gatorade is it in you?

Beverage Industry State of the Industry 10 Market Non Alcoholic Beverages –Soft Drinks Sports Drinks

Beverage Industry State of the Industry 11 Market

12 Competition Monopolistic Competition Main Competitors –Coca Cola (PowerAde) – 13.2% market share –Cadbury Schweppes – less than 2% –Smaller brands Strength of PowerAde –New Ads with Lebron James –Partnership with DC Comics Weaknesses of PowerAde –Entered Market too late –Can’t sway Gatorade’s loyal Customers –NHL recently changed to Gatorade

13 The Science of Sweat Target Markets –Athletes 2 types –Casually Active Individuals Those who participate in a range of activities and want something to help them –Casual Drinkers Those who want something other than water or soda

14 Target Market Aspiring young athletes –Younger audience interested in sports looking to be like their favorite professional athletes. –Uses for image and perceived benefit Doesn’t necessarily use product for its added physical benefits –(if I drink it I will be more like them) Uses product outside of the sports field

15 Target Market Serious Athlete –Looking for a real and scientifically proven competitive edge –Sole worry is benefits added in performance –Taste isn’t as important

16 Target Market Casual physically active people –People of all ages that enjoy staying physically active –People looking for a good tasting way to rehydrate themselves –Not looking for a competitive edge

17 Market Segmentation Aspiring young athletes –Age Pre-competitive youth –Lifestyle Active in a variety of sports both physically and/or socially Casual physically active people –Age High school and older –Lifestyle Active in non-competitive athletics of all types –Benefits Desired Rehydration and taste Serious Athlete –Benefits Desired Looking for a real and scientifically proven competitive edge

18 Market Segmentation Scheme Multiple single segmentations –Many different ads geared at a specific segment. Big head commercial for younger athletes It commercials for the serious athlete Endurance commercials for casual thirsty consumer

19 Market Segmentation Scheme Multiple segmentation –Commercials portray characteristics of all segments Colored sweat commercials –Casual and Youth Sport affiliated commercials –Youth and Serious –Website caters to all segments

20 Example

21 Product Positioning Ultimate thirst quencher Category founder with proven scientific advantage Drink that gives physical and mental competitive edge –If you want to perform like the best, you must drink what the best drink

22 Perceptual Map Popular Taste Acquired Taste UnresearchedHighly Studied Gatorade Powerade Accelerade Cytomax Ultima

23 FACTS ON CONSUMER BEHAVIOR The majority of the target market for Gatorade contains those with active lifestyles The age range of use is growing with several factors that are leading to prolonged active lifestyles in the later generations Greatest market is younger generation of athletes Gatorade is most commonly bought in bulk in order to induce lower cost for consumer Holds 85% of market for sports drinks Has been the consistent leader in the market through out its 40 year history

24 REASONS FOR PURCHASE Gatorade has a huge association with professional role models Psychological slogan “#1 thirst quencher” Gatorade sponsors many professional and amateur events and athlete teams in order to increase exposure and credibility

25 REASONS FOR PURCHASE The popular Gatorade cooler has made a name for itself…”the Gatorade Dunk” Gatorade is sold in a variety of settings which makes it very accessible for those who seek the product, and allows for high volumes of impulse buys

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28 MARKET RESEARCH Primary Data-Gathering: -Surveys: conduct a survey with the intent on finding out who the younger generation idolizes in each of the “big 4” sports -Experimental method: sponsor an event, have booths set up for free Gatorade…have multiple product design to see which design is more accepted by the consumers