Question

What are the communication issues with Pepsi Cola company and how can they resolve it through organizational structure and design.

Answer 1

Pepsi Cola holds 1/3 of United States soft drink market and it is considered as the second largest soft drink company in the world. To be a super successful company in the world, Organizations should possess the ability to attract and retain consumers loyal to their product. They should use effective marketing methods to communicate their brand value to their consumers. This will help the brand to survive in the dynamic world. Companies that don’t use effective communication strategies cannot last long in the modern complex market environment. Pepsi is one company that has clearly identified the importance of the communication in the modern market. So they spend millions of dollars each year to market their brands to their consumers. Pepsi Corporation mainly uses four types of marketing strategies to effectively communicate their brand value to their consumers. They are, Media Commercials, Sponsorships, Online promotions, Community activities and product diversification. The main marketing strategies they use with examples, pros and cons that can be identified in each strategy, a cross comparison between the communication strategies of four well known drinks companies in the world and some recommended methods to improve the current marketing strategies in Pepsi corporation.

Integrated Marketing Communications

Kotler (2003) gave the explanation that the purpose of the marketing is to deliver higher standard of living. What marketer should be considered is value, which could be described as a ratio between benefits and costs, between what customers give and get. The main purpose of marketing communication is to find a balance in the customers’ mind, in order to achieve the highest demand from the customer such as increase benefits, reduce costs.

As communication efforts become increasingly specialized in order to target fragmented audiences, the cost and inefficiency of marketing communications has increased, whilst the ability to measure campaign effectiveness has decreased. Furthermore, the rise in competition in the market place means that products are becoming less and less differentiated, whereby consumers are facing with an array of choices. IMC as management and control of all market communications.

The communication mix consists of personal selling, sales promotion, public relation, direct market, advertising and brands. In the last ten years, Integrated Marketing Communication (IMC) has become a powerful tool in the market field. IMC offers the promise of becoming a strategic tool in helping to ensure synergy and consistency of messages regardless of the communication vehicle used to deliver that message”. There have four stages of IMC which are tactical co-ordinations of promotional elements, redefining the scope of marketing communications, application of information technology, and financial and strategic integration; which mainly focus on the first two stages. IMC is identified as a coordinated marketing communication campaign, one voice communication and integrated communication.

Brand the value of the people’s mind as a consequence of a total marketing communications effort is known as “brand”.The product and company will differentiate by using brand as strategy and it is the perception of the customer because the customer consider before making purchase decision. Besides, brand are also symbol, logo, company, legal instrument, cluster of values added value, image etc