1 of 22

Capstone 5 ��Diet Pepsi �

José A. Serrano

Nov. 17, 2022

2 of 22

2

  1. Overview
  2. Data Analysis + Insights
  3. Customer Journey & Channel Mapping
  4. Brand Positioning + Competitors
  5. Creative Brief
  6. Intrafirm and Interfirm Considerations
  7. Offline Media
  8. Digital Marketing Channels
  9. Proposed Channels
  10. Assumptions + Risk Mitigation
  11. Budget Allocation
  12. Metrics
  13. Future Opportunities

TABLE OF CONTENTS:

3 of 22

1. Overview

What is the business objective?

Create a marketing plan before and after the super bowl while at the same time reducing friction between Agencies and Pepsi.

What are the marketing objectives?

  • Use innovative tactics that will attract media attention through digital marketing
  • Drive traffic to the website and social media channels before, during, and after the game.
  • Increase awareness of Pepsi’s new packaging, which is 100% recyclable
  • Increase online sales of Pepsi

What is the challenge?

Brand awareness that will reflect all marketing objectives involving digital marketing and traditional marketing ultimately increasing sales and engagement with consumer.

3

4 of 22

2. Data Analysis + Insights:

4

Increase engagement in Tik Tok platform.

Keywords are essential for this campaign as reinforcement of any product info request knowledge. eMail marketing targeting to actual customer base.

5 of 22

2. Data Analysis + Insights: Industry

5

6 of 22

What do you know about the target customer?

6

Diet Pepsi Consumer

Customer Persona

DEMOGRAPHIC SEGMENTATION

  • Age Group – divided into younger audience and mature audience
  • More specific 🡪 Teens, Young Adults, Early Middle-Age Adults with and age range of 14- 45 both Male and Female
  • It excludes young children and elderly who are less likely to enjoy caffeine-laden beverage
  • It includes singles, new marrieds without children, and couples with younger children and teens
  • High income earners, including students, employees, and professionals

BEHAVIORAL SEGMENTATION

  • Benefits sought🡪 Refreshment, enjoying good taste, satisfaction of a habit, spending time
  • Personality 🡪 Easygoing/determined/ambitious
  • User status 🡪 Regular users

“The target market for Diet Pepsi is broad, covering all age groups from teens to late middle age, men and women, focusing particularly on people who are health conscious and looking for a sugar-free alternative to the popular cola drink”

7 of 22

What can you learn from last year’s Super Bowl data?

In 2021, PepsiCo sponsored the Super Bowl halftime show instead of running TV ads during the game. Pepsi sponsored the Super Bowl halftime show for a tenth straight year in 2022, which includes a captive audience of 100 million people each year. Pepsi has been under contract for the past 10 years sponsoring the half time show and will not be sponsoring Super Bowl LVII.

In the lead-up to this year’s Super Bowl, PepsiCo wants to run a digital marketing campaign that will culminate in a TV ad during the game. PepsiCo will also have TV spots for two of their other brands during half time: Mountain Dew and Tropicana.

What further data would you like to see to understand the customer?

There is no official consumer Phone App for Pepsi?

There are several millions of users in FB and other platforms which should start to transfer over to a social media channel like Tik Tok which is more engaging.

7

8 of 22

3. Customer Journey + Channel Mapping

How does this customer typically find/research/buy your product?

PepsiCo’s products reach the market through three channels:

1. Direct store delivery (or DSD). Under the DSD system, the company, its bottlers, and distributors deliver products directly to retail stores. Of the three channels, DSD offers PepsiCo the most visibility. This channel is also more suitable for products that are restocked often and sensitive to in-store promotions.

2. Customer warehouse. This distribution channel is less expensive. PepsiCo prefers this channel for products that are less fragile, perishable, and have lower turnover.

Third-party distributor networks.

3. PepsiCo distributes its products to restaurants, businesses, schools, and stadiums through third-party foodservice and vending distributors and operators.

8

Is it the benefits of drinking Pepsi that attracts the consumer?

NO, it is mostly great advertising that attracts the customer.

9 of 22

4. Brand Positioning + Competitors

  • Where does this brand sit within its competitive space?

  • What is the Reason to Believe for consumers?

9

Quench their thirst anytime without calories(caffeinated/decaffeinated) carbonated drink 🡪 great taste refreshment

Consumers 15 to 45 yrs.

Pepsi perseveres in the Cola War

10 of 22

PEPSI Brand Equity

10

Pepsi (brand value up 12% to US$20.7 billion) has retained its position as the second most valuable, and second-strongest brand in the non-alcoholic drinks sector after Coca- Cola with the evolution of its strategy, one that places sustainability and human capital at the center of how it creates growth and value.

11 of 22

5. Agency Creative Brief – Pepsi Digital Marketing Campaign

In 2021, PepsiCo sponsored the Super Bowl halftime show instead of running TV ads during the game. Pepsi sponsored the Super Bowl halftime show for a tenth straight year in 2022, which includes a captive audience of 100 million people each year. Pepsi has been under contract for the past 10 years sponsoring the half time show and will not be sponsoring Super Bowl LVII.

OBJECTIVE: PepsiCo wants to run a digital marketing campaign that will involve a TV ad during the game. PepsiCo will direct consumers brand awareness directing toward two of their other brands: Mountain Dew and Tropicana. It will involve simultaneiously traditional marketing and digital marketing.

Pepsi three main products - Pepsi, Diet Pepsi and Pepsi Max - that each generates more than $1 billion in annual retail sales with the flagship Pepsi brand over $10 billion. Pepsi passed Diet Coke in 2014 to return to its spot as the second most popular soda for Americans. Pepsi-Cola was created in 1898 in New Bern, N.C. by pharmacist Caleb Bradham.

Target Audience = Customer Persona

Key Message : “Who said Pepsi wouldn’t last forever”

Consumer Benefit : running a sweepstake draw engaging young consumers and adult consumers interacting with social media for a win of 25 tickets to next years Super Bowl half time show 2024 as well different coupons across the Mountain Dew and Tropicana Brands.

11

12 of 22

Creative Brief

  • What should the content look/feel like?

https://www.youtube.com/watch?v=YtK-yq-BQDU

  • What message do you want to convey?

Revival and capture of older generation crowd and interaction with younger consumer helping them towards engagement in the social media platforms

“Who said Pepsi wouldn’t last forever”

12

13 of 22

Creative Brief

  • Which channels will be used to promote the campaign? Display Ads, SEM, eMail Marketing, Social Media, TV, Billboards

Billboards

13

TV Ad in the beginning of the Super Bowl with C.C. daughter (target young crowd) same theme commercial but a 2023 vision (ex. Convertible Lamborghini) always a call to action of engagement through the phone

Half-time ask through Social Media engagement on the phone a trivia question: ex. WHO WAS THE FIRST MODEL? (prior add being shown through social media up to the Super Bowl game date) in addition to 1 to 2 trivial questions pertaining to the Ad and Marketing objective such as:

Do you drink Tropicana Juice?

Do you drink Mountain Dew?

Did you know about our 100% recyclable packaging?

leading up to the Pepsi web page and registry to participate for tickets to the next super bowl

End with Cindy C. waving goodbye and leading once again to the web page (older crowd) showing all the rest of the products

14 of 22

6. Intrafirm and Interfirm coordination

  • How will you coordinate with other PepsiCo brands?

This will be done on real time with AI segmenting consumers by demographic targeting and behavioral targeting where Diet Pepsi will be the hook and door to all other products for this campaign according to choice and demographic segmentation for specific product target Ad Display in social media.

Ex. Younger Consumers = Diet Pepsi, Mountain Dew and all other brands

Older Consumers = Tropicana (primary Ad Display) while at the same time they can or will choose Diet Pepsi or other Pepsi Products

INTRAFIRM alignment must be closely monitored to target efficiently during this campaign so that friction does not occur among different products brands that are not the main focus of this campaign.

What about different marketing agencies?

INTERFIRM simultaneous coordination must be tested prior and measured so that both traditional TV and Digital Social Media strategies perform optimally.

  • Are there data, tech, or organizational questions to address?

Yes, agency will have to evaluate which best MarTech tool will be used.

14

15 of 22

7. Digital Marketing Channels

  • How/why will you use different digital marketing channels?

Social Media, Display Ads, SEM, email marketing, Billboards,TV

  • What is the marketing/business purpose of each channel?

Each channel should serve as a direct tool to create a consumer database that can be segmented according to the choice of different products that Pepsi has to offer and can be targeted to each individual.

  • Are there any new innovations you could use to attract more engagement?

Yes, Social Media engagement channels such as Tik Tok and the METAVERSE for younger demographics in the future.

15

16 of 22

8. Proposed Plan

When will different channels run ads?

  1. Ads will run prior to the Superbowl / Cindy Crawford (social media and phone engagement call to action to participate in sweepstake)
  2. Ad will run at half time – Sweepstake question and Mountain Dew/Tropicana questions (discounts, loyalty programs) Social Media
  3. Social media engagement at half time and finalizing with a call to action at the end but as well prior and during the game to engage in social media (tickets to the next super bowl half time on field concert)

How will you ensure that they work together for maximum impact?

Coordination among Agency and Pepsi is imperative.

Campaign will be interconnected to a call to action in all social media owned Pepsi Platforms with new registry giving discounts and the final price through social media sweepstake answer.

Each consumer according the demographics and behavioral interaction with platform asking basic questions about their products and targeting them accordingly at registry and engagement(1 o 2 questions max) registry with email or phone first name and last name to participate in the sweepstake of knowing for instance when then 1st ad came out, year, name of model, new model name)

A call to action during the game via TV which cascades into a social media post or likes to a landing page campaign

Questions:

Did you know about our 100 % packaging?

Do you drink Tropicana Juice?

Do you drink Mountain Dew?

16

17 of 22

9. Assumptions + Risk Mitigation

  • What assumptions are built into your plan?

That the influencers agree to a TV ad – Cindy Crawford and daughter and that is not on the Digital Budget

That the older crowd interacts with the younger crowd and synergies are created within social media for engagement

  • How will you course-correct if things do not go to plan?

This will be done real time with AI segmenting consumers by demographic targeting and behavioral targeting according to questions where Diet Pepsi will be the hook and door to all other products according to choice.

Demographic segmentation of specific product target Ad Display in social media.

Ex. Younger Consumers = Diet Pepsi, Mountain Dew and all other brands

Older Consumers = Tropicana (primary Ad Display) while at the same time they can also choose Diet Pepsi or another Pepsi Product

  • How will you coordinate with other PepsiCo brands?

Coordination is vital for other brands within Pepsi’s product marketing team.

16

18 of 22

10. Budget Allocation

How will you analyze results and optimize once campaign data is available?

Engagement and social media sharing/posting metrics will be measured via increase of sales on all the product brands

17

Display Advertisement = 300K

SEM = 200K

eMail = 50K

Social Media = 150K

Influencer & TV

Billboards around stadium and the 2 cities from which the 2 football teams are from.

19 of 22

11. Metrics

19

  • CPM Cost Per Mile:

Ad Spend/Impressions shown*per 1000 Ads

  • CTR Click Through Rate:

Total clicks/total number ads shown *100

  • CPC Cost Per Click:

Total campaign costs/total clicks

  • Conversion rate:

Products purchased/number of clicks

  • Cost Per Action:

Original Ad Spend/total number of purchases

  • CAC🡪 Customer Acquisition Cost
  • Metric of Influence (the lift in purchase probability)

What would be a reasonable estimate of the ROI for each channel’s budget?

Metric of Influence as we are dealing with traditional and digital marketing advertisement (pre and post game buzz)

20 of 22

What would a measurement dashboard look like?

20

App Download

SEO

This campaign is focused toward Awareness for Diet Pepsi and capturing new customers luring them towards new products that Pepsi creates or acquires

21 of 22

12. Future Opportunities

Based on your research on the future of digital marketing, what are the three big opportunities that this brand should be aware of?

  1. Brand Awareness through Social Media Targeting
  2. METAVERSE
  3. New Brand Advertisement

Why?

I think that Pepsi’s

engagement today is through

content via the Phone in

Digital platforms specially

in Social Media.

21

22 of 22

Bibliography

22

  1. Columbia Business School – Kinshuk Jerath
  2. https://brandirectory.com/rankings/food/
  3. https://www.bevindustry.com/articles/93973-soft-drink-report-new-csds-craftedforsizzleandpop#:~:text=For%20the%20same%20timeframe%2C%20Cola,percent%20rise%3B%20and%20Ginger%20Ale
  4. https://finance.yahoo.com/news/pepsico-company-overview-203956177.html?guccounter=2
  5. https://www.start.io/blog/pepsi-target-market-analysis-audience-segmentation-marketing-strategy/
  6. Cross-Channel Overview Landscape: Pepsi Focus Company: PepsiSep. 22, 2021 - Oct. 21, 2021 BST
  7. SEMRUSH
  8. https://www.forbes.com/companies/pepsi/?sh=71514f59bc31
  9. https://en.wikipedia.org/wiki/Super_Bowl_LVI_halftime_show
  10. https://www.investopedia.com/ask/answers/060415/how-much-global-beverage-industry-controlled-coca-cola-and-pepsi.asp
  11. https://www.statista.com/topics/1503/pepsico/#topicOverview
  12. https://www.start.io/blog/pepsi-target-market-analysis-audience-segmentation-marketing-strategy/
  13. https://research-methodology.net/pepsico-segmentation-targeting-and-positioning-2/
  14. https://www.start.io/blog/pepsi-target-market-analysis-audience-segmentation-marketing-strategy/
  15. https://research-methodology.net/pepsico-segmentation-targeting-and-positioning-2/
  16. https://www.mbaskool.com/brandguide/food-and-beverages/558-diet-pepsi.html 
  17. https://www.businessinsider.in/advertising/brands/article/how-pepsi-continues-to-stay-relevant-and-connect-with-every-generation/articleshow/81573612.cms 
  18. https://www.statista.com/statistics/263264/top-companies-in-the-world-by-market-capitalization/ 
  19. https://www.statista.com/statistics/1179261/leading-corporations-reputation-united-states/ 
  20. https://research-methodology.net/pepsico-segmentation-targeting-and-positioning-2/