Pepsi And Analysis Product Life Cycle

Pepsi And Analysis Product Life CycleThe PLC model is of near score of usefulness to marketing managers, in that it is based on factual assumptions. Nevertheless, it is difficult for marketing management to gauge accurately where a produce is on its PLC graph. A rise in sales per se is not necessarily evidence of growth. A coin in sales per se does not typify decomposition. Furthermore, some products do not (or to date, at the least, have not) experienced a decline. Coca Cola and Pepsi atomic number 18 examples of two products that have existed for many another(prenominal) decades, but ar clam up popular products all over the world. Both modes of skunk have been in maturity for some years.Another factor is that differing products would possess contrasting PLC shapes. A delirium product would hold a steep sloped growth stage, a short maturity stage, and a steep sloped decline stage. A product such as Coca Cola and Pepsi would experience growth, but also a constant level of sales over a number of decades. It backside likely be said that a given product (or products collectively within an industry) whitethorn hold a unique PLC shape, and the typical PLC model tin can only be used as a rough guide for marketing management. This is why its called the product breeding calendar method.Pepsi-Cola is still second in the carbonate drinks market and keeps in the shadow of Coca Cola in terms of market divvy up, perception and image. (Business hebdomad, 2010) However, Pepsis insightful marketing techniques (comic strips, television ads etc.) prevented a fall of its position in the beverage industry. The composition shall aim to critically analyse the product life bicycle of Pepsi and would further extend to assess the consumers behaviour and propitiation towards Pepsi in sensitive Delhi Market (India)LimitationsThere are some limitations bound with this study, Such as shortage of funds, limited re offsets and Small sample size (n=100). The haphazard sampling which will be used in this study may not represent the complete state.1C. WHY IS THIS PARTICULAR TOPIC CHOSEN?By using diversification techniques and brand management, Pepsi was able to increase its volume of sales and get a stronger market position. Nowadays, Pepsis carbonated beverages division clearly remains behindhand the snack division in terms of positiveness and share percentage of operation earnings. Our impression is that the profits of the snack division help create the fancy that the beverage sector is as successful as the management wishes it to be.The present study aims to analyse in detail the product life cycle of Pepsi in Indian market, the study shall also focus on analysing the consumers behaviour towards Pepsi in New Delhi market.1D. WHAT CONTRIBUTION WOULD THE PROJECT MAKE?Brand loyalty is a buyers tasting for the products of Pepsi. Pepsi can create brand loyalty through continuous advertising of brand and lodge names, patent protection of produc ts, product innovation achieve through its research and development programs and emphasis on high product quality and good after-sales services. It is effective make for in the way in which people distinguish the product or the company. By creating feelings of warmth, affection and belonging to a product, a steady is able to relate brand to human personalities.The study would contribute towards identifying the client needs and expectation towards Pepsi in New Delhi1 e. objectives and research questions of the studyResearch objectivesTo analyse the product life cycle of PepsiTo determine the customers behaviour and rapture level towards products of Pepsi in New Delhi marketTo know from the consumers about the special(prenominal) reasons behind the preference of products of Pepsi over other Cola drinksResearch QuestionsWhy do consumers prefer Pepsi over other Cola drinksWhat attracts/draws consumers towards Pepsi in India?2.0 METHODOLOGY AND METHODS OF ENQUIRYRESEARCH METHODOLOGY Research Methodology defines the purpose of the research, how it proceeds, how to measure progress and what pull in success with respect to the objectives determined for carrying out the research study. (Kothari, 2007) The appropriate research design formulated is detailed below.RESEARCH DESIGNThe research design is the fundamental framework, which provides guidelines for the rest of the research process. (Prasad, 2006) The present research can be said to be exploratory. The research design determines the direction of the study throughout and the procedures to be followed. It determines the make outive information collection method, sampling method, the fieldwork and so on.NATURE OF informationPRIMARY DATA Primary selective information is basically fresh data collected directly from the marking respondents it could be collected through Questionnaire Surveys, Interviews, Focus Group Discussions Etc.SECONDARY DATA Secondary data that is already available and published .it could b e inbred and external source of data. Internal source which originates from the specific field or area where research is carried out e.g. publish broachers, official reports etc.External source This originates outside the field of study like books, periodicals, journals, newspapers and the Internet.DATA COLLECTIONPrimary data Primary data will be selected from the sample by a self-administrated questionnaire in presence of the interviewer in New Delhi (India).SAMPLE SIZEThe survey will be conducted among 100 respondents in New Delhi (India)Sample Area New Delhi (India)Sample unit It will not be possible for the investigator to survey all the consumers of Pepsi so this study is based on the sampling study that will be done on the sample size of 100 persons residing in Central Delhi (New Delhi-India), this central part of New Delhi is chosen for a straightforward reason that it is a wonderful mix of people belonging to middle class/upper middle class/higher classSECONDARY DATA Secon dary data will be collected through Articles, Reports, Journals, Magazines, Newspapers and InternetSAMPLING TECHNIQUERandom sampling technique is employed to extract the dark-fruited results. This includes the overall design, the sampling procedure, the data collection methods, the field methods and the analysis proceduresSAMPLING PROCEDURE ACTUALLY EMPLOYEDThe process that will be employed to select the sample in New Delhi (India) is simple random sampling. Simple random sampling refers to that sampling technique in which each and every unit of the population has an equal and same opportunity of being on the sample. In simple random sampling, which item gets selected is just a matter of chance.ANALYTICAL TOOLSSimple statistical tools will be used in the present study to analyze and interpret the data collected from the field. The study will use percentiles method and the data will be presented in the form of tables and diagrams.INITIAL LITERATURE REVIEWProduct life cycle managemen t (or PLCM) is the succession of strategies used by employment management as a product goes through its life cycle. The condition in which a product is sold (advertising, saturation) changes over time and must be managed as it moves through its succession of stages.Like human beings, products also have their own life-cycle. From birth to death human beings pass through various stages e.g. birth, growth, maturity, decline and death. A similar life-cycle is seen in the case of products. The product life cycle goes through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures. To say that a product has a life cycle is to assert four thingsthat products have a limited life,product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller,profits ris e and fall at different stages of product life cycle, andproducts require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stage.There are many stages in a products life cycle, some of them are explained belowStageCharacteristics1. Market introduction stagecosts are highslow sales volumes to startlittle or no competitiondemand has to be createdcustomers have to be prompted to try the productmakes no money at this stage2. Growth stagecosts reduced due to economies of scalesales volume increases significantlyprofitability begins to rise world awareness increasescompetition begins to increase with a few new players in establishing marketincreased competition leads to price decreases3. Maturity stagecosts are lowered as a result of production volumes increasing and experience curve effectssales volume peaks and market saturation is reachedincrease in competitors entering the marketprices tend to drop due to the proliferation of competing productsbrand differentiation and feature diversification is emphasized to maintain or increase market shareIndustrial profits go down4. Saturation and decline stagecosts become counter-optimalsales volume decline or stabilizeprices, profitability diminishprofit becomes more a challenge of production/distribution efficiency than increased salesIt is claimed that every product has a life period, it is launched, it grows, and at some point, may die. A fair comment is that at least in the short term not all products or services die. Jeans may die, but clothes probably will not. Legal services or medical services may die, but depending on the social and political climate, probably will not.Even though its validity is questionable, it can offer a useful model for managers to keep at the back of their mind. Indeed, if their products are in the previous or growth phases, or in that of decline, it perhaps should be at the front of their mind for the predominant features of thes e phases may be those revolving around such life and death. Between these two extremes, it is salutary for them to have that vision of mortality in front of them.However, the most important aspect of product life-cycles is that, even under familiar conditions, to all practical intents and purposes they often do not exist (hence, thither needs to be more emphasis on model/reality mappings). In most markets the majority of the major brands have held their position for at least two decades. The dominant product life-cycle, that of the brand leaders which almost monopolize many markets, is therefore one of continuity.Studies shave revealed that the customers are attracted more towards the companies which are in advance(p) in nature and enjoy good brand image in the market. knowledgeability is now a priority in most firms around the world just as quality was two decades ago. The challenge then was how to transform a quality program and results into a quality image. Today the need is t o gain image credit for developing an innovative organization and a flow of innovative products. Having a reputation for creativity not only interjects energy and respect, but adds new product credibility to support a firms culture and strategy. Business Week recently ran a story on the 25 most innovative companies (e.g. Apple, Google, 3M, Toyota, Microsoft, G.E., Procter Gamble, Nokia, Starbucks, IBM and Samsung) as determined by a survey of over 1,000 executives. Among the ideas these firms used to advance innovation was freeing time to experiment, patent sharing, having an innovator-in-chief and developing innovation metrics. While interesting, the story made the unfortunate implication that a reputation for innovativeness was due to the veritable strategies, processes, culture and product flow of the firm and, further, that such a reputation would result in financial success. The reality is far different.Perceived innovativeness is driven by many factors, some reaching far in to the past. One factor is undoubtedly the heritage of imagination. For over 50 years, 3M has been known for its philosophy of empowering innovators. Apple, the No. 1 firm in the survey, is still drawing on Steve Jobs legacy of the first Apple nearly 30 years ago. IBM gets credit for establishing the computer industry some five dollar bill decades ago. G.E.s reputation may be influenced more by the legacy of the founder, Thomas Edison, than the Jeff Immelt revolution. (Aaker, 2006)The effect of brand awareness on buying decisions tends to regard product selection as a very intricate problem-solving process (Foxall, 1992). However, in many low involvement situations, consumers do not have the time, the resources, or the motivation to fill in such EPS processes. They are used to being passive recipients of product information, who need to spend minimal time and effort to determine brand choice (Foxall, 1992). A simple heuristic method, such as buying well-known brands used as a bas is for brand choice when consumers undertake normally repeated product purchases, may explain why firms marketing low involvement products often invest considerable sums of money into advertising, in order to flummox and maintain brand awareness. (Hoyer, 1984)Brand awareness is a dominant factor in both initial (trial) and repeat-purchase decisions, even when the quality of the national brand was wanting(p) to that of a non-national brand. Hoyer and Brown (1990) Similar conclusions were obtained in the replicated study of Macdonald and Sharp (2000), further evidencing the effect of brand awareness on purchase decisions. Familiarity with a brand has an influence on consumer confidence towards a brand, which, in turn, affects the intention to buy that brand (Laroche et al.1996). Familiarity is measured by the experience and information possessed by the consumer for a specific brand hence such information will exert some effects on purchase intentions, thus constructing one of the lo yalty dimensions (Bloemer et al., 1999).If we look at the Pepsi-Cola Company from the outside, there has been a certain amount of repetitiveness in its development. By following the trends and focusing on how to lower the price as often as possible, they managed to create a successful company. By investing in the development of the bottling and distribution sector, Pepsi found their balance in the market. (Nels, 2008)Then in twenties Pepsi-Cola Company failed because they didnt concentrate enough energy on branding. Within a few years Pepsi was declared bankrupt twice. By the end of the 1930s the company was reorganized from inside and the marketing policy drastically changed. Major investment was now directed towards making people more familiar with the product. After acquiring Mountain Dew, new sources of financing and revenue opportunities were needed because the acquisition was not an instant success. Therefore, in 1965 Pepsi merged with Frito Lay. In the 1980s the decreasing s ales in the beverage market induced the industry to adjust with more aggressive marketing strategy and new products. In fact, Coke marketed a new cola formula, whereas Pepsi persisted with promotional efforts and improved customer responsiveness to increase sales volume. (Thomas and Alexander, 2005)Following these cyclical changes in the marketing policy of the firm (every 20 years there is a huge turn over), one could conclude that this is the time for PepsiCos to readjust. The circumstances underlying the merger with Quaker Oats are significant. Nowadays, the market is rapidly changing and its bonny saturated. The entrance into potential new markets is more complex than ever consequently, the only way for the company to expand is by gaining market share by mergers or strategic alliances. Furthermore, the marketing strategies in foreign markets like China and India are experiencing problems in customer responsiveness. Currently, the beverage sector is following a trend of continuo us launch of new products in order to attract new customers. In this sense, the challenge for Pepsi is to be able to sustain such a trend and conversely, to remain a leader in their market.