Pepsi And Analysis Product Life Cycle

The PLC model is of some degree of effectiveness to marketing professionals, in that it is dependant on factual assumptions. Nevertheless, it is difficult for marketing management to determine accurately where a product is on its PLC graph. A rise in sales per se is definitely not evidence of progress. A fall season in sales by itself will not typify drop. Furthermore, some products do not (or even to date, at the least, have not) experienced a decrease. Coca Cola and Pepsi are types of two products which have existed for many decades, but are still popular products all over the world. Both methods of cola have been in maturity for a few years.

Another factor is the fact that differing products would possess different PLC "shapes". A fad product would hold a steep sloped development stage, a short maturity stage, and a steep sloped decrease stage. A product such as Coca Cola and Pepsi would experience growth, but also a frequent degree of sales over lots of decades. It can probably be said a given product (or products collectively within an industry) may maintain a unique PLC condition, and the normal PLC model can only be used as a difficult guide for marketing management. This is why its called the merchandise life circuit.

Pepsi-Cola continues to be second in the carbonated drinks market and remains in the shadow of Coca Cola in conditions of market share, understanding and image. (Business Week, 2010) However, Pepsi's insightful marketing techniques (comic strips, television advertising etc. ) averted a fall of its position in the drink industry. The analysis shall try to critically analyse the product life routine of Pepsi and would further expand to assess the consumers' behavior and satisfaction towards Pepsi in New Delhi Market (India)


There are some restrictions bound with this review, Such as lack of cash, limited resources and Small test size (n=100). The random sampling which will be found in this study may not represent the complete population.


By using diversification techniques and brand management, Pepsi was able to increase its volume of sales and get a better market position. Nowadays, Pepsi's carbonated drinks division plainly remains behind the snack division in conditions of profitability and share percentage of operation income. Our impression is the fact the profits of the treat section help create the illusion that the drink sector is as successful as the management hopes it to be.

The present study aims to analyse at length the product life circuit of Pepsi in Indian market, the study shall also focus on analysing the consumer's behavior towards Pepsi in New Delhi market.


Brand loyalty is a customers' choice for the products of Pepsi. Pepsi can create brand commitment through ongoing advertising of brand and company brands, patent protection of products, product technology achieve through its research and development programs and focus on high product quality and good after-sales services. It is effective influence in the manner in which people perceive the merchandise or the company. By creating emotions of warmth, devotion and belonging to a product, a company can associate brand to human personalities.

The analysis would contribute towards identifying the customer needs and expectation towards Pepsi in New Delhi

1 e. aims and research questions of the study

Research objectives

To analyse the merchandise life routine of Pepsi

To determine the clients behaviour and satisfaction level towards products of Pepsi in New Delhi market

To know from the consumers about the specific reasons for the desire of products of Pepsi over other Cola drinks

Research Questions

Why do consumers favor Pepsi over other Cola drinks

What appeals to/draws consumers towards Pepsi in India?



Research Methodology identifies the goal of the study, how it proceeds, how to evaluate improvement and what constitute success with regards to the objectives determined to carry out the study analysis. (Kothari, 2007) The appropriate research design designed is complete below.


The research design is the basic framework, which gives guidelines for all of those other research process. (Prasad, 2006) Today's research can be said to be exploratory. The research design can determine the way of the study throughout and the techniques to be adopted. It determines the info collection method, sampling method, the fieldwork etc.


PRIMARY DATA: Principal data is basically fresh data accumulated directly from the target respondents; it could be collected through Questionnaire Surveys, Interviews, Target Group Discussions Etc.

SECONDARY DATA: Extra data that has already been available and shared. maybe it's internal and exterior source of data. Internal source: which hails from the precise field or area where research is completed e. g. publish broachers, standard reports etc.

External source: This originates beyond your field of study like books, periodicals, journals, newspapers and the Internet.


Primary data: Primary data will be selected from the test with a self-administrated questionnaire in occurrence of the interviewer in New Delhi (India).


The review will be conducted among 100 respondents in New Delhi (India)

Sample Area: New Delhi (India)

Sample unit: You won't be possible for the investigator to market research all the consumers of Pepsi so this study is dependant on the sampling analysis which will be done on the test 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's a wonderful combination of people owned by middle category/upper middle category/higher class

SECONDARY DATA: Secondary data will be gathered through Articles, Information, Journals, Magazines, Papers and Internet


Random sampling strategy is employed to extract the fruitful results. This includes the overall design, the sampling method, the info collection methods, the field methods and the research procedures


The process that'll be employed to choose the sample in New Delhi (India) is easy random sampling. Simple random sampling identifies that sampling strategy in which every single unit of the population has an identical and same opportunity of being on the sample. In simple arbitrary sampling, which item gets determined is just a matter of chance.


Simple statistical tools will be used in today's study to analyze and interpret the data gathered from the field. The study use percentiles method and the info will be offered by means of furniture and diagrams.


Product life routine management (or PLCM) is the succession of strategies employed by business management as something goes through its life routine. The condition in which a product comes (advertising, saturation) changes as time passes and must be handled as it moves through its succession of phases.

Like humans, products likewise have their own life-cycle. From delivery to death humans go through various levels e. g. birth, growth, maturity, drop and death. An identical life-cycle sometimes appears regarding products. The product life cycle undergoes multiple phases, entails many professional disciplines, and requires many skills, tools and processes. Product life circuit (PLC) is due to the life span of something on the market with respect to business/commercial costs and sales actions. To say that a product has a life circuit is to assert four things:

that products have a restricted life,

product sales pass through distinct phases, each posing different problems, opportunities, and problems to owner,

profits rise and street to redemption at different periods of product life cycle, and

products require different marketing, financial, processing, purchasing, and individuals source strategies in each life routine stage.

There are many phases in a product's life pattern, a few of them are described below:



1. Market release stage

costs are high

slow sales quantities to start

little or no competition

demand must be created

customers have to be prompted to try the product

makes no money at this stage

2. Growth stage

costs reduced scheduled to economies of scale

sales volume increases significantly

profitability begins to rise

public recognition increases

competition commences to increase with a few new players in establishing market

increased competition causes price decreases

3. Maturity stage

costs are reduced therefore of production quantities increasing and experience curve effects

sales level peaks and market saturation is reached

increase in opponents joining the market

prices tend to drop due to the proliferation of fighting products

brand differentiation and show diversification is emphasized to keep up or increase market share

Industrial profits go down

4. Saturation and decrease stage

costs become counter-optimal

sales volume decline or stabilize

prices, profitability diminish

profit becomes more an issue of production/distribution efficiency than increased sales

It is stated that every product has a life period, it is launched, it grows up, and sooner or later, may die. A fair comment is the fact that - at least in the short term - not absolutely all products die. Denims may pass away, but clothes will probably not. Legal services or medical services may expire, but with respect to the social and political climate, will probably not.

Even though its validity is questionable, it can provide a useful 'model' for professionals to keep at the back of their brain. Indeed, if their products are in the introductory or growth phases, or in that of decline, it perhaps should be at the front end of their head; for the predominant top features of these stages may be those revolving around such life and loss of life. Between these two extremes, it is salutary for them to have that vision of mortality before them.

However, the most crucial aspect of product life-cycles is that, even under normal conditions, to all practical intents and purposes they often do not exist (hence, there needs to be more focus on model/simple fact 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 market leaders which almost monopolize many markets, is therefore one of continuity.

Studies shave revealed that the clients are attracted more towards the firms which are progressive in nature and revel in good brand image in the market. Innovation is currently a priority generally in most firms about the world in the same way quality was 2 decades ago. The challenge then was how to convert a quality program and results into a quality image. Today the necessity is to gain image credit for producing an innovative group and a move of impressive products. Getting a reputation for creative imagination not only interjects energy and esteem, but contributes new product reliability to support a firm's culture and strategy. Business Week lately ran a story on the 25 most progressive companies (e. g. Apple, Yahoo, 3M, Toyota, Microsoft, G. E. , Procter & Gamble, Nokia, Starbucks, IBM and Samsung) as determined by a survey of over 1, 000 professionals. Among the list of ideas these organizations used to foster innovation was freeing a chance to experiment, patent posting, having an innovator-in-chief and producing invention metrics. While interesting, the storyline made the unfortunate implication that a reputation for innovativeness was due to the current strategies, operations, culture and product move of the organization and, further, that such a reputation would lead to financial success. The truth is considerably different.

Perceived innovativeness is influenced by many factors, some getting far in to the history. One factor is undoubtedly the history of creativeness. For over 50 years, 3M has been known for its viewpoint of empowering innovators. Apple, the No. 1 company in the review, is still attracting on Steve Jobs' legacy of the first Apple nearly 30 years back. IBM gets credit for creating the computer industry some five years in the past. G. E. 's reputation may be inspired more by the legacy of the founder, Thomas Edison, than the Jeff Immelt revolution. (Aaker, 2006)

The effect of brand understanding on buying decisions tends to regard product choice as a very complicated problem-solving process (Foxall, 1992). However, in many low involvement situations, consumers do not have enough time, the resources, or the motivation to engage in such EPS techniques. They are being used to being passive recipients of product information, who need to invest minimal commitment to determine brand choice (Foxall, 1992). A straightforward heuristic method, such as "buying well-known brands' used as a basis for brand choice when consumers take on commonly repeated product purchases, may describe why firms marketing low involvement products often make investments considerable amounts of money into advertising, in order to generate and keep maintaining brand recognition. (Hoyer, 1984)

Brand recognition is a dominating factor in both preliminary (trial) and repeat-purchase decisions, even though the grade of the countrywide brand was inferior compared to that of a non-national brand. Hoyer and Dark brown (1990) Similar conclusions were obtained in the replicated research of Macdonald and Clear (2000), further evidencing the result of brand recognition on purchase decisions. Knowledge of a brand has an influence on consumer assurance towards a brandname, which, in turn, affects the intent to buy that brand (Laroche et al. 1996). Familiarity is assessed by the experience and information possessed by the consumer for a particular brand hence such information will exert some results on purchase motives, thus creating one of the devotion sizes (Bloemer et al. , 1999).

If we go through the Pepsi-Cola Company from the exterior, there has been a degree of repetitiveness in its development. By following the trends and concentrating on how to lessen the price whenever you can, they were able to create a successful company. By investing in the development of the bottling and circulation sector, Pepsi found their balance in the market. (Nels, 2008)

Then in 1920's Pepsi-Cola Company failed because they didn't concentrate enough energy on branding. Within a couple of years Pepsi was announced bankrupt twice. By the finish of the 1930's the company was reorganized from inside and the marketing policy drastically modified. Major investment was now directed towards making people more familiar with the merchandise. After acquiring Hill Dew, new sources of financing and earnings opportunities were needed because the acquisition was not an instant success. Therefore, in 1965 Pepsi merged with Frito Place. In the 1980's the reducing sales in the beverage market induced the industry to adapt with more extreme online marketing strategy and new products. Actually, Coke marketed a fresh cola formulation, whereas Pepsi persisted with promotional attempts and increased customer responsiveness to increase sales volume level. (Thomas and Alexander, 2005)

Following these cyclical changes in the marketing coverage of the organization (every 20 years there's a huge turn over), you can conclude that is the time for PepsiCo's to readjust. The circumstances root the merger with Quaker Oats are significant. Nowadays, the market is rapidly changing and it's becoming saturated. The access into potential new markets is more technical than ever therefore, the only way for the company to increase is by getting market show by mergers or proper alliances. Furthermore, the marketing strategies in foreign market segments like China and India are experiencing problems in customer responsiveness. Presently, the drink sector is following a trend of ongoing launch of services to be able to attract clients. In this particular sense, the challenge for Pepsi is usually to be able to maintain such a craze and conversely, to stay a innovator in their market.

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