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Promotion Strategies

The largest companies in world can demonstrate the best promotion strategies which are worth learning and following if one wishes to get success in the world trade and production. Two of such big companies which success could be defined as the best promotion strategies implementation are Coca Cola beverages Company and Pepsi Company.

Pepsi promotes its products by personal selling, advertising, and sales promotion. For advertising, and sales promotion it used printed and electronic media. Every newspaper and magazine carry Pepsi advertisements. Advertisement of Pepsi are eye catching and attractive. Through advertising it informs the consumer about new brands and flavours. Pepsi designs its sales promotion strategies and advertisement campaign focusing strictly on the target markets. Pepsi has been catching the trends of society. National songs by bands like Vital Signs, Awaaz, Junoon and Strings were the keys in their advertisement campaign. Sponsoring the pop industry and the cricketing team helped Pepsi hit right on target of their primary market which consists of teenagers.

The management of PEPSI uses both the skimming and penetration pricing strategy. The brands, which has price greater than Pepsi beverage is skimming pricing strategy, and brands having prices less than one can of Pepsi adopted penetration-pricing strategy. By adopting skimming they are earning more profit and by penetration they attract the customers and consolidating position in the market. They have to adopt both strategies because they are facing established competition in the market, e.g. In beginning the main competitors for Pepsi are Coca cola & RC, now their major competitor is Coca cola.