Assignment (5 marks)
Marketing Management (CLO 1, 3)
NAME: SHAHZADI AIMAN
ID: 38082
1. If PepsiCo wants to increase its market share in rural areas, what modifications would
you recommend in both distribution structure and promotional communication?
ANSWER:
DISTRIBUTON STRUCTURE: The pathway (channel) products take from producer to
consumer, involving intermediaries like wholesalers, retailers, agents, or direct sales, forming
a core part of the marketing mix (Place) to ensure product availability, impacting reach, cost,
control, and brand experience
TYPES OF DISTRIBUTION STRUCTURE: The distribution structure could be of three
types:
1. DIRECT DISTRIBUTION: The producer sells directly to customers
e.g.: Online stores, company owned stores
2. INDIRECT DISTRIBUTION: Intermediaries are used to reach out to customer
e.g.: wholesalers, retailers, dealers and distributers
3. MULTICHANNEL/ HYBRID DISTRIBUTION: Involves combination of both direct and
indirect distribution
e.g.: online + retail stores, distributors + direct B2B sales
PROMOTION MIX: The strategic blend of tools like advertising, sales promotion, public
relations (PR), personal selling, and digital marketing used to inform, persuade, and remind
customers about a product, build awareness, and drive sales, ensuring a cohesive message
across channels to reach target audiences effectively
Regarding the modifications that PepsiCo should make in order to increase its market share in
rural areas is as follows:
MODIFICATIONS IN DISTRIUBTION STRUCTURE: PepsiCo should adapt hybrid, multi-
level distribution structure that involves implementing delivery through two wheelers, three
wheelers and small vans to navigate poor road infrastructure. It should implement cluster-
based delivery routes covering groups of villages from a single hub. It should prioritize
selling low unit price products (mini bottles, sachets, small chip packs) at kiryana stores, tea
stalls, dhabas, schools in order to encourage repeated purchases in a low-income area. They
should make sure to have coolers, chillers during transportation and solar-powered or low-
energy coolers in villages with unreliable electricity in order to maintain the shelf life and
quality of the perishable products.
MODIFICATIONS IN PROMOTION COMMUNICATION: Instead of endorsing
international celebrities PepsiCo should hire local influencers or familiar faces for the brand
endorsements. The promotion should be focused on capturing value for money. The
promotional communication can be carried through advertisements on TV, local channels,
FM radios, painted advertisements, and digitally through WhatsApp messages, or pre-
recorded automated calls in their regional languages. Another way the brand can promote
itself is through free sample distributions at schools, local fairs and festivals.
2. Assume PepsiCo is launching a new beverage in South Asia during the summer season.
What distribution and promotional elements should PepsiCo prioritize to maximize
market penetration?
ANSWER:
MARKET PENETRATRATION: It is a growth strategy focused on increasing sales of
an existing product in an existing market by attracting new customers or encouraging
current ones to buy more, often through competitive pricing, promotions, and increased
visibility, aiming to capture a larger market share.
DISTRIBUTION ELEMENTS: PepsiCo should adapt an intensive distribution with wide
scale availability of their products across urban, sub-urban and rural markets during peak
summer season. They should make sure that their drinks are available at a cold
temperature since during summer chilled drinks are preferred they can do so by
transporting their products in temperature-controlled vans and placement of branded visi-
coolers, chillers and ice boxes at high footfall outlets. To accommodate price sensitivity
in sub-urban and rural areas promotional small unit products should be introduced.
Product placement should be focused on high footfall areas such as beaches, schools,
tourist zones etc.
PROMOTIONAL ELEMENTS: The product positioning is crucial during the summer
season that is why the beverage should be introduced and promoted linking it to as a heat-
relief solution using attractive catchphrases or taglines. As majority of South Asia is
youth-centric the product should be promoted digitally through social media platforms
using hashtags, short videos and trend generating activities. Ad campaigns should be in
regional languages (Urdu, Hindi, Bengali) using ethnic and diverse representation to
promote relatability and creating value through emotional bonds shown in the ads. These
Ads can be promoted on television, radio, billboards and digitally. Local influencers,
regional celebrities and sport personalities should be used for brand endorsements for
relatability and credibility. Major sports events like PSL, IPL, Asia Cup are held around
summer time which gives PepsiCo a great opportunity for introducing their beverage and
using the sports events as a great product placement opportunity same goes for local
festivals held in cities or villages. In order to introduce the product in the market PepsiCo
could offer introductory discounts or bundle deals. Free samples could be introduced
during local festivals and fairs, in schools, shopping malls and grocery stores to increase
product awareness and adoption.