The Pepsi Carbonated Soft Drink Consumer Demand Promotion

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Strategic Marketing Plan for the United States The Pepsi Carbonated Soft Drink Consumer Demand Promotion Executive Summary A strategic plan for PepsiCo North America is hereby proposed as follows for the geographical region of the national United States for the Pepsi Soda Product promotion to consumers between the ages of 12 through 18 years of age. It will utilize a pull strategy through the distribution channels to stimulate demand for the Pepsi carbonated soft drink to the end users as defined to maintain Pepsi’s younger generation of consumers over the next two decades. The strategic plan will consist of a strategic alliance with The Walt Disney Company coupled with a pop star endorsement by Hannah Montana and Kanye West with…show more content…
Since 1975 the overall growth rate of soft drink market has been slowing. (Figure_1) As this provides a constraint on new market opportunities, it does not constrict maintaining a similar level of revenue or slightly improving it. As the current consumer market continues to age, it is expected there exists a certain level of retention to Pepsi consumption until a specific age when it is recommended by a doctor not to consume a soft drink. Given Pepsi’s position in terms of product placement within demographics, it holds the youth market when compared with Coke. As growth slows, the youth markets must continually be targeted to maintain the consumption level of Pepsi as new consumers enter the market of soft drink consumption, and other age out of it. This strategy will over a long period of time prove to gain market share of domestic soft drink consumption over Coke, while being offset by a slowing of the overall consumption. Figure 1 [pic][pic] The subject proposal is targeted to use a pull strategy through the distribution channels, and is therefore focused on the end user, or consumer segment of the market. Notwithstanding, the industry overall (primarily Pepsi and Coke as outlined herein below) does not only sell directly to consumers. A very prevalent distribution channel is through licensed bottlers and restaurant chains. A very strong

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