Sales promotion of pepsi essays

Crystal Pepsi at first gained a lot of attention from the other soda drinkers and they lined up to try this new refreshed cola that promotes healthy drink and fewer sweetener. The sales were skyrocketed and company made more than expected profits. However, the customers found no difference between sprite and 7up and eventually gave up on Crystal Pepsi.

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The price never went down but instead changes were made on its appearance to gain attention through attraction9. The pricing was not the issue in the case of the cola. Crystal Pepsi was selling good at the asking price varying from 89 cents to a dollar in 90s. When the cola was disappeared from the market it was due to its taste and by the end of its time period, the cola lost major part of its target market. Lately, few videos were made by students at several universities on YouTube asking Pepsi to bring back Crystal Pepsi again.

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The future of Crystal Pepsi, however, is still unknown. Pepsi has tried many times to bring back Crystal Pepsi in National and International markets but was unable to fully penetrate because of severe competition posed by its either competitors or the companies that already have significant market share. The placing of the product plays a vital role in increasing sales revenue and gaining the maximum profit from the market.

But like promotion, placing depending on emphasis.

Crystal Pepsi has emphasized and stressed on promoting its formula and stretched to convince people that how different this cola is and what health benefits would they get after drinking it The mistake that was done by PepsiCo was in differentiation and positioning of its product. The product was different than regular Pepsi-Cola and Coca-Cola but had the same appearance and taste as of 7up and Sprite. Crystal Pepsi was first taste tested by participants from different target markets and then was released to test market in April The launch was limited to test the reaction of its target consumers.

Sales Promotion: Essay on Sales Promotion (645 Words)

The test markets were conducted in Denver, Dallas, and Providence, Rhode Island for nine months straight bringing all the possible changes to the formula according to the preferences of the consumers. It was then launched nationally during December Crystal Pepsi was among the favorite drinks of its consumers at that time and gained a good market share in matter of weeks. It was available at all the major retailers like Walmart and did very well in sales.

After its launch in the United States it was launched in Canada, Europe and Australia for limited time. The time span for Europe was the highest among all the markets but ultimately pulled off the shelves due to poor sales The Canadian and Australian Markets responded the same as United States but since Crystal Pepsi held different grounds in terms of taste and appearance, it lasted longer than United States. However, it was available for a limited time and in quantity in the market. It was another attempt to revive the product in an international market where diet colas are among the most favorite drinks.

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The product was not a failure but discontinued after the limited time Target Market. One of the sensitive and time consuming decisions for any company to make is to get proper knowledge of its target market. Many companies have failed to properly evaluate the preference and taste of its target markets and vanished completely or at least their product lines were disappeared from the market. Crystal Pepsi focused on two types of consumers;.

Health conscious individuals 2.

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People who prefer white soft drinks over colas. Health Conscious Individuals The first target market was quite easy to capture because at the time of its launch people in most of the developed countries were getting health conscious. They made exercise their part of life. It was the start of an era where people begun to think of their fitness and gave workout and fitness priority PepsiCo targeted those individuals and presented them an innovative drink with fewer sweeteners and lower calories to help them in achieving their fitness goals.

The other category was hard to tackle as many colorless soft-drinkers were already committed to their existed products and were brand loyal. However, the marketing strategy done by PepsiCo paid off during its launch and people tried the new product for the change. PepsiCo put all of their focus and attentions toward this group by changing formulas, packaging and differentiation, putting their health conscious group at stake.

They lost both markets in matter of months PepsiCo has always been and still is in direct competition with Coca-Cola, another food and beverage giant. The competition is so severe that they spend millions of dollars to protect their secrets from one another just like many major companies in Silicon Valley. Although the rivalry between Pepsi and Coca-Cola is always severe, the other rivals were tough too. First Movers Advantage. Crystal Pepsi was one of its kind products that was first introduced to a limited target market, made a huge impact in its test market, launched with a refined formula, failed and disappeared in 15 weeks.

Crystal Pepsi has enjoyed its top spot for few months and has gained the first mover advantage. They spell bound the market with its fewer sweeteners, low calories and new formula with amazing prices in the market.

Consumers liked the taste initially as it was a 90s reason to drink cola without color, caffeine or preservatives Crystal Pepsi was introduced to directly compete with already existed products in the market such as Clearly Canadian. This and similar products were already held the major market share and stayed strong in its demand vs supply. They addressed the need and want of its consumers more strongly as compared to its competitors.


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Crystal Pepsi when came in targeted its competition in a unique way. Although the cola was colorless, it was a direct threat to Clearly Canadian and Quibell. Clearly Canadian and Quibell both offered non-carbonate drinks that were the market segment of soft-drinkers. Their products still exists in the market in many flavors.

Coca-Cola, on the other hand, tried to come up with same product but with different strategy and named it as Tab Clear which also failed in market miserably. Company create counterpart with American sweet test product, however, it was a commercial failure and coca cola change its strategy and return back to its old formula. Consumers become more health conscious then company lunch new product to address consumer needs, such as diet coke and coca cola zero. The company bought the bottling business in South Korea which allow to access in a retail store as well as makes easy to enter in Japan, Malaysia, and China.

Moreover, China is now the largest coke consumer in the world. In the coca cola output of coke in China was 3. By the end of coke, total production in China was million tons. In addition, from to company introduced new plant which capacity was 20 million tons. The target of China coke industry is the export large quantity of production countries such as India, Brazil, Belgium and Japan.

This report shows development and positive change in the environment of the coke industry in China. China daily, newspaper website. The charges in laws and regulations, such as taxation requirements, environmental laws, and foreign jurisdictions can affect to their entry into a foreign land. The changes in nonalcoholic beverage Business Company might get pricing pressures, competitive product and their ability to maintain the share in the global market.

Sales Promotion

In the international market if government change frequently there might be a restriction to transfer funds from one country to another. However, the Coca-Cola Company is following the rules and regulation set by the government. Since last two years government is so conscious about the environment. Company adjustments in planets and proper way of wastage settlement the chance of affected by the protection laws are decline. Political conditions are overall left natural effects on coca cola industry.

It impacts well on the cock reputation. The economic analysis explores national and world economy impacts as well as inflation and recession. Economic factors are those factors that affect the production and sales of the company. If the economic condition is not good at that time coke to decide to increase its price it would impact very negative in the production of Coke. The non-alcoholic beverage industry has high sales outside the USA.

There has been an improvement in soft drink Company in major international markets like Brazil, Germany, and Japan. These markets play a great role in the growth of the nonalcoholic industry. The country like Pakistan where is the unemployment rate is very much high.


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In Pakistan coca cola company employs people. If economic variables are positive of the country it impacts well otherwise the impact is bad. Many people are spending a healthier lifestyle. Change in lifestyle, population growth rate and carrier attitudes affect nonalcoholic industry so that many people like to have bottle water and colas instead of beer. The need for healthy products, bottled water, and juice is more important in the daily life.

Consumers from the age of 37 to 55 are more concerned with nutrition. Older age people are becoming more concerned with increasing their long life. This kind of social trend can affect on demand of the nonalcoholic beverage industry. Increase in awareness among consumer and modern lifestyle might be a challenge to the coca cola company.

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