brand image measurement pepsi

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PRAXIS BUSINESS SCHOOL PEPSI BRAND TRACKER

Pepsi Brand Tracker (Project2 Part1 Brand Image Measurement)

PRAXIS BUSINESS SCHOOl

A report

Submitted to

Prof. Sreenivas Govindrajan

In partial fulfilment of the requirements of the course

Product and Brand management

On 20-08-2009

BY

Apoorva Jain Gunjan Dugar Hardik Mishra

Manoj Mani Iyer

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Executive Summary

PepsiCo entered India in 1989 and has grown to become one of the country’s leading food and beverage

companies.

The objective of our project was to measure the brand image of Pepsi.

For data collection BAV method (Quantitative Research) and laddering method (Qualitative Research)

have been used. For BAV we framed a questionnaire which had 14 questions. The numbers of

respondents were 30. For laddering, the method used was one to one in-depth interview and the number

of respondents were 10.

The Brands chosen against Pepsi for a comparative analysis were Thums Up, Sprite, Coca Cola and

Fanta.

From laddering we came to know that most of the respondents preferred aerated drinks because of the fizz

factor which rejuvenated them and helped them in personal attainment. Thus this chain needs to be

concentrated and cashed upon.

From BAV we found out that Pepsi as a brand scores very high on the parameter brand knowledge but

low on brand esteem. This lead to the inference that there may be a problem with the brand personality.

Hence, a study of BAV may not be enough. Moreover, Pepsi scores very low on differentiation and

relevance. The brand Pepsi falls in the Leadership/Declining quadrant and as per the result of the analysis

the point suggests that the brand is declining, thus it needs to improve upon its differentiation & relevance

which will impact the overall esteem. Also it needs to concentrate on other softer aspects like brand

ambassador.

So, there is a possibility to incorporate some changes related to differentiation and repositioning.

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Table of Contents

Section 1 Pepsi Brand History

1.1 Company Perspective

1.2 Brief history in India

1.3 Key dates

1.5 Tagline timeline

1.4 Brand logo timeline

Section 2 Data Collection

2.1 Models of Data Collection

2.1.1 Quantitative Research (BAV Model by Young & Rubicam)

2.1.2 Qualitative Research (Reynolds and Gutman’s “Laddering Method”)

2.2 Research methodology

2.3 Questionnaire

Section 3 Findings and Conclusion

3.1 Findings

3.1.1 Laddering findings & suggestions

3.1.2 BAV Model findings & suggestions

3.2 Conclusion

Section 4 Bibliography

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Section 1 Pepsi Brand History 1.1 Company perspective

PepsiCo's overall mission is to increase the value of our shareholder's investment. It does this

through sales growth, cost controls and wise investment of resources. It believes our commercial

success depends upon offering quality and value to our consumers and customers; providing

products that are safe, wholesome, economically efficient and environmentally sound; and

providing a fair return to our investors while adhering to the highest standards of integrity.

1.2 Brief history of Pepsi in India

PepsiCo entered India in 1989 and has grown to become one of the country’s leading food and

beverage companies.

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.

PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda

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.

Late 1980s and Early 1990s: Focusing on International Growth and Diversification.

Principal Divisions: Frito-Lay Company; Pepsi-Cola Company; Tropicana Products, Inc.

Principal Competitors: Borden, Inc.; Cadbury Schweppes plc; Campbell Soup Company; Chiquita

Brands International, Inc.; The Coca-Cola Company; ConAgra Foods, Inc.; Cott Corporation;

Groupe.

1.3 Key Dates

1898: Pharmacist Caleb D. Bradham begins selling a cola beverage called Pepsi-Cola.

1905: Bradham begins establishing a network of bottling franchises.

1923: Bradham's company goes bankrupt.

1928: Roy C. Megargel reorganizes the firm as the National Pepsi-Cola Company.

1931: Company again goes bankrupt and is resurrected by the president of Loft Inc., Charles G. Guth.

1933: The size of Pepsi bottles is doubled, increasing sales dramatically.

1936: Pepsi-Cola Company becomes a subsidiary of Loft.

1941: Loft and Pepsi-Cola merge, the new firm using the name Pepsi-Cola Company.

1964: Diet Pepsi debuts; Mountain Dew is acquired from Tip Corporation. TOP

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1965: Pepsi-Cola merges with Frito-Lay to form PepsiCo, Inc., with the two predecessors becoming

divisions.

1967: Frito-Lay introduces Doritos tortilla chips to the national U.S. market.

1977: PepsiCo acquires Taco Bell.

1978: PepsiCo acquires Pizza Hut.

1981: Frito-Lay introduces Tostitos tortilla chips.

1986: The Kentucky Fried Chicken (KFC) chain is acquired.

1997: Taco Bell, Pizza Hut, and KFC are spun off into a new company called Tricon Global Restaurant.

1998: PepsiCo acquires Tropicana Products for $3.3 billion.

1999: Pepsi Bottling Group is spun off to the public, with PepsiCo retaining a 35 percent stake.

2000: PepsiCo reaches an agreement to acquire the Quaker Oats Company for $13.4 billion.

1.5 Tagline timeline

1898 Brad's Drink

1903 Exhilarating, Invigorating, Aids Digestion

1906 Original Pure Food Drink

1908 Delicious and Healthful

1915 For All Thirsts - Pepsi:Cola

1919 Pepsi:Cola - It makes you Scintillate

1920 Drink Pepsi:Cola - It Will Satisfy You

1928 Peps You Up!

1933 It's the Best Cola Drink

1943 Bigger Drink, Better Taste

1958 Be Sociable, Have a Pepsi

1963 Come Alive! You're in the Pepsi Generation1981 Pepsi's Got Your Taste for Life

1979 Catch That Pepsi Spirit

1983 Pepsi Now! 1984 The Choice of a New Generation

1992 Gotta Have It

TOP

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1996 Nothing Official about it

1998 Yahi hai right choice baby, Aha!

2008: "Yeh hai Youngistaan Meri Jaan!" Hindi - meaning "This is the Young era my dear" (India and

Pakistan)

1.4 Brand logo timeline

TOP

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SECTION 2 Data Collection

2.1 Models of Data collection

Quantitative Research

Qualitative Research

2.1.1 Quantitative Research Model - Brand Asset Evaluator (BAV) by Young & Rubicam

2.1.2 Qualitative Research Laddering method

Laddering refers to an in-depth, one-on-one interviewing technique used to develop an

understanding of how consumers translate the attributes of products into meaningful associations

with respect to self, following Means-End Theory (Gutman, 1982).

Laddering involves a tailored interviewing format using primarily a series of directed probes,

typified by the “Why is that important to you?” question, with the express goal of determining sets

of linkages between the key perceptual elements across the range of attributes (A), consequences

(C), and values (V).

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These association networks, or ladders, referred to as perceptual orientations, represent

combinations of elements that serve as the basis for distinguishing between and among products in

a given product class.

Laddering Model

Laddering Methods

One on One in depth interview.

Focus Group Study.

2.2 Research Methodology

Exploratory research: Exploratory research provides insights into and comprehension of an issue or

situation. It should draw definitive conclusions only with extreme caution. Exploratory research is a type

of research conducted because a problem has not been clearly defined. Exploratory research helps

determine the best research design, data collection method and selection of subjects. Given its

fundamental nature, exploratory research often concludes that a perceived problem does not actually

exist.

Data collection: In this study internal and external source for data collection had been used. In this

process the following two types of data comes into picture.

Primary data.

Secondary data.

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Primary data: All the primary data for the purpose of the study were obtained by interviewing the

consumers with the help of a questionnaire. Questionnaire was framed on the basis of product & its

competition. The questions were designed in such a way as to elicit maximum information and data.

Secondary data: Secondary data has been collected by through books & websites.

Respondents: The respondents are consumers of all age groups.

Sample Size:

The sample size for BAV study was 30, who were college students and working people.

The sample size for Laddering was 10.

Sampling Scheme: The sampling technique adopted was “simple random sampling”. As the universe is

the mass and surveying everyone is not possible.

Research tool:

For quantitative research a questionnaire was used as a research tool.

For qualitative research focus group study & in depth interview was used.

Questionnaire: The questionnaire has been framed by using the following five steps:

Specifying data requirements

Determining the type of questions to be asked.

Deciding the number and sequence of questions.

Preparing the preliminary draft of questionnaire.

Revising and pre-testing the questionnaire.

2.3 QUESTIONNAIRE

1. How much do you care about your choice between different brands of coldrinks?

a) Care

b) Somewhat care

c) Don’t care

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2. Name five brands that come to your mind when you think of coldrinks? (Knowledge)

a) ____________________ d) ____________________

b) ____________________ e) ____________________

c) ____________________

3. Identify the brands from the taglines mentioned below? (Brand Knowledge)

Sl. No. Taglines Brands

1 Aap muskurayenge, bulbule gungunayenge

2 Yeh hai youngistaan meri jaan

3 Seedi Baat, No bakwaas, Clear hai

4 Taste the thunder

5 ______ ka Signal loud, Bunking is allowed

4. Identify the brands from the respective product design. Refer to sample graphics above. (Knowledge)

(A) (B) (C) (D) (E)

Sample Brand

A

B

C

D

E

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5. Which brands do the following celebrities endorse? (Knowledge)

Sl.

No.

Advertisements Brands

A Aamir Khan

B Akshay Kumar

C Ranbir Kapoor

D Genellia D’ souza

E Sania Mirza

6. From the samples tasted, indicate the brand that comes to your mind? (Differentiator)

Samples Brands

A

B

C

D

E

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7. Which brands would you like to be most associated with? Rank in order of your preference (1 being

the most preferred) (Esteem)

8. Which of the following is a brand that you trust most? (Esteem)

a) Thumsup

b) Pepsi

c) Fanta

d) Coca Cola

e) Sprite

9. For each of the following brand, please tell me, if you feel there is another brand, quite similar in

offerings (Differentiator)

Brands Yes/ No

Pepsi

Thumsup

CocaCola

Fanta

Sprite

Brands Rank

Pepsi

Thumsup

Sprite

CocaCola

Fanta

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10. For the following reasons which brand of cold drinks would you purchase ? (Relevance,

Differentiator)

Situations

Th

um

sup

Coca

Cola

Pep

si

Fan

ta

Sp

rite

Family get together

With alcohol

Thirst quencher

The brand has many variants

11. Which brand delivers their brand promise the most? (Esteem)

Coca Cola

Thumsup

Sprite

Pepsi

Fanta

12. In order of preference which brands would you like to stock? (1 being the most preferred)?

(Relevance)

Thumsup

Coca Cola

Pepsi

sprite

Fanta

13. Has the Youngistan Campaign motivated you to buy Pepsi?

Yes

No

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14. Which brand of cold drinks would you buy based on the below mentioned factors?? (Relevance)

Factors

Th

um

sup

Coca

Cola

Pep

si

Fan

ta

Sp

rite

Taste

Brand Ambassador

Advertisements

Constant Innovation

TOP

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Section 3 Findings and Conclusion

3.1 Findings

3.1.1 Laddering Findings for the coldrink brand Pepsi

Strongest Benefit Chain Strong Chain Weaker Chain

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Fizz No Calorie

Calories

Tagline Soda

Rejuvenating Weight Control Motivation Acidity relief

Confidence Physical well being Physical Appearance

Personal

Attainment

Self

Esteem

Peer

belonging

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Laddering findings & suggestions

TOP

Most number of respondents listed thefizz factor in the coldrink whichrejuvenated them and as a result theyhad personal attainment

Some of the respondents weremotivated with the tagline as well asthe brand ambassador and feeling goodabout themselves boosting their selfesteem.

Some of the respondents found the lowcalorie variant of the brand as the onewhich helps them to keep theircalories in check boosting physicalappearance therby boosting selfesteem.

Some also felt the soda content in thedrink helps them fight gas troublemaking them relived and happy.

Factors of Consumption: Drinking this fizzy drink, with catchy

tagline, having low calorie content which also helps fighting gas

trouble creates a sense of rejuvenation, helping physical well being,

boosting self esteem leading to a strong sense of physical

attainment.

Strong Benefit Chain:- Most of the respondents prefer because of

the fizz factor thus this attribute in the chain needs to be

concentrated and cashed upon.

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3.1.2 BAV Model rationale, findings & suggestions

Rationale behind designing the questionnaire

Out of the total of 14 questions, we had asked 4 questions to test brand knowledge.

To test brand differentiator, we had asked 3 questions.

To test brand esteem, we had asked 3 questions.

To test brand relevance, we had asked 3 questions.

To test the Branding importance we asked 1 question.

Methodology for data analysis

We ranked the brands by tabulating scores achieved by the brands in the answers.

For multi choice questions we adopted weighted average method.

After ranking the brands we assigned the percentiles achieved by them.

To arrive at a percentile achieved by the brand on particular parameter, we took the average

percentile achieved in that parameter and then ranked the brands again and gave percentiles.

TOP

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Scores of brands on the 4 parameters

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100

6040

80 80

Pepsi Fanta Sprite Thumps up Coke

Brand Knowledge

Percentile

60

100

80 80

60


Brand Differentiation

Percentile

4020

80100

60


Brand Esteem

Percentile

6040

60

10080


Brand Relevance

Percentile

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Brand Stature

Out of the 4 parameters, Knowledge and Esteem together create Brand Stature. it measures the current

strength of the brand.

Brand Stature Score = Knowledge (100) + Esteem (40) / 2 = 70

Findings & Suggestions

TOP

100

40

Knowledge Esteem

Brand Stature

Percentile

It can be seen from the above table that Pepsi as a

brand is very high on knowledge and low on

esteem.

Thus we can infer that there may be a problem

with the brand personality hence a study of BAV may

not be enough.

We need to know the softer aspects of the brand or the brand personality.

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Brand Vitality

Differentiation and Relevance together create Brand Vitality and it measures the growth potential of a

brand.

Brand Vitality Score = Differentiation (60) + Relevance (60) / 2 = 60


TOP

60 60

Differentiation Relevance

Brand Vitality

Percentile

It can be seen from the table that Pepsi as a brand

has not a very high differentiation and

relevance.

So there is a possibility to incorporate some changes

to differentiate and reposition.

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3.2 Conclusion

The above diagram suggests that the brand Pepsi falls in the

Leadership/Declining quadrant and as per the result of the analysis

the point suggests that the brand is declining, thus it needs to

improve upon its differentiation & relevance which will impact the

overall esteem. Also it needs to concentrate on other softer aspects

like brand ambassador.

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Section 4 Bibliography

Books referred

Marketing Management by Kotler & Keller

Websites

http://www.pepsi.com

http://www.findownersearch.com/bav-model/3751576/

http://www.heskesresearch.com/html/laddering1.html

TOP

http://www.pepsi.com/

http://www.findownersearch.com/bav-model/3751576/

http://www.heskesresearch.com/html/laddering1.html

brand image measurement pepsi

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