Mkt 09909 - Pepsi Brand Management

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Equity Model

Customer-Based Brand Equity Model is bring up by Kevin Lane Keller in 1993 (Keller, 2003). For CBBE model, the brand power should include in the customer knowledge, feelings and experience to the brand (Keller, 2003). Therefore, the company do lots of works to ensure that customers have the brand and its products in mind to adapt in their life (Keller, 2003). The table below shows the steps to evaluate strong brand equity and six elements for development.[pic 7]

Table above shows the Equity Model (Keller, 2012)

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- Brand Awareness

Brand Awareness also know as brand salience, it has divided into depth brand awareness and breadth brand awareness that means the frequency of customer recall the brand and the usage of the brand in their mind (Keller, 2003).

For Pepsi, it has over 100 years experience on producing Pepsi-cola which has created a fixed brand image of Pepsi which is depth brand awareness. On the other hand, in breadth brand awareness, although people can recognize Pepsi produce cola, it is difficult for Pepsi to break away from Coca-cola as it is the main competitor in producing cola. Therefore, Pepsi needs to show the strong advantage for leading customer chooses Pepsi rather than Coca-cola.

- Brand performance

Brand performance is the product or service to meet the functional needs of customer (Keller, 2003). Pepsi has focus on improving their products not only cola but including 7-up and Mirinda etc to meet different needs of customer. Also, as Pepsi has cooperated with Frito-Lay, it may boost the sales and extend the business market.

- Brand Imagery

Brand Imagery is the brand meeting the customer psychological or social needs (Keller, 2003). Pepsi’s logo has changed several times. In most of the years, Pepsi using the colour of the top hemisphere is red and the bottom is blue. Pepsi says that this combination is aims to challenge customer tastes. In 2008, Pepsi has created a new logo for refresh the public image, found in appendix 6.2 (Famous Logos, 2016). As Pepsi wants to bring out the message by the logo which is ‘Pepsi brings you happy’, they using a smiley face in the middle to separate the top and the bottom (Famous Logos, 2016).

- Judgements

Pepsi mission is to become top one in the company that producing convenient foods and beverages (PepsiCo, 2016). However, since Pepsi only focus on the foods and beverages, they may difficult to extend their product line. Also, they may consider to re-positioning the brand image in order to let people re-putting the performance and imagery of Pepsi for fulfilling customer respond to the brand.

- Feelings

Brand feelings refer to the customer’s emotional behaviour for the brand (Keller, 2003). People are always compare Pepsi-cola with Coca-cola, Pepsi has launch a campaign which is using the blind test for people testing Pepsi-cola and Coca-cola in order to let people taste and choose their preference without the brand name. Finally, people prefer Pepsi rather than Coca-cola which is an emotional response of customer.

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- Loyalty

Last but not least, brand loyalty is the relationship that link between the brand loyalty and customer. It is a customer’s psychological reaction to reflect the brand’s trust and dependence in the purchase decision-making (Junjun, 2010). Loyalty customer is an important matter to keep the brand sustain and while Pepsi promote a new product that these loyalty customer also a channel to help the new product enter to the market.

- Conclusion

As Coca-cola is the main competitor of Pepsi, it needs to make consideration in the marketing strategy. Pepsi has attractive and unique package design which has also build a strong image in customer mind. Pepsi done lots of promotion rather than just put their products on the shelf. However, Pepsi only targets on youth customer, did not consider on the potential outlet such as hotel, college canteens.

Since the population is increasing, Pepsi may consider increasing the purchase of customer which may increase the sales (United Nations, 2015). Pepsi can develop some potential business to extend their market. Meanwhile, regarding there are some argues that cola drink is harmful for health, customer may be consider to purchase the other substitutes drinks which may threat to the sales of Pepsi.

As a result, Pepsi may attempt to develop a profitable and long-term marketing plan to sustain the brand.

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- References

American Marketing Association. (2016). Dictionary.

Retrieved from https://www.ama.org/resources/pages/dictionary.aspx?dLetter=B

de Chernatony, L., McDonald, M., &Wallace, (2011). Creating powerful brands. London: Taylor & Francis Routledge.

Famous Logos.(2016). Pepsi Logo.

Retrieved from http://www.famouslogos.us/pepsi-logo/

Junjun Mao. (2010). Customer Brand Loyalty. International Journal of Business and Management, 213-216.

Keller, K.L. (2003). Strategic Brand Management: Building, Measuring, and Managing Brand Equity. Upper Saddle River: NJ Pearson Education.

Mercola.com. (2009). 10 Diseases Linked To Soda.

Retrieved from http://articles.mercola.com/sites/articles/archive/2009/02/10/10-diseases-linked-to-soda.aspx

Noble, Peter M;Gruca, Thomas S. (1999). Industrial pricing: Theory and managerial practice. Marketing Science, 435-454.

Pepsi-Cola. (2016). Welcome to the Pepsi Store.

Retrieved from http://www.pepsistore.com/index.asp

Pepsi. (2016). Pepsi features.

Retrieved from http://www.pepsi.com/en-us/