IIBMS ANSWER SHEETS Its Global Marketing Plans In the 1940

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Marketing Management

Q.4 Case study

Its Global Marketing Plans In the 1940 s itself PepsiCo started branching out into the international arena. At first it was into Latin America, the Middle East and the Philippines. Here too Coke had the early bird advantage. Yet the product soon gained popularity. With the Arab countries boycotting Coke, Pepsi enjoyed a monopoly for many years in the Middle East. In the 1950 s Pepsi went to Europe and this included Russia, with whom there existed a Cold War by USA. Though there were initial difficulties, getting into Russia was a major breakthrough which the company exploited. The company posted pictures of the then leaders of the United States and Russia sipping the drink. Its arch rival, Coca Cola, was able to enter the Russian markets only after more than 25 years after Pepsi s entry.

In many of the countries that Pepsi ventured into comparative advertising was prohibited and in many countries it was not an accepted concept. For example, Pepsi tried its Pepsi challenge promotional gimmick in Japan. However, the country and its people were not aware of comparative advertising and as such the campaign did more harm than good. Hence in Japan they had to break their tradition of running with the global campaign and come up with a campaign that the Japanese would identify with and was more Japanese. The Pepsiman was a superhero like figure that was devised by a Japanese person for the Japanese market. The commercial was an instant hit and helped improve Pepsi s share in the Japanese market by as much as 14%. From Japan Pepsi learned a valuable lesson the same ad will not have the same effect everywhere. When it comes to cross national advertising, there is always the inherent risk of alienating the people.

Question:

(20 1 = 20)

1. What challenges Pepsi had to face, If Pepsi would not follow the cultural factors in international marketing environment? What is the good marketing way for pepsi?

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