Pepsi has been in the cola business for decades. We provide our customers with a wide range of carbonated drinks and juices. It is through our involvement in incremental innovation and research and development that we are able to provide our customers with a wide variety of products of the highest quality (McKay, 2008).

Pepsi aims to evolve with the changing market. We emphasize on good and healthy food and drinks for our customers. Where our customers are becoming more health conscious, we aim to provide them products accordingly. Healthy food and drink means using more natural ingredients and reduced use of preservatives and artificial flavoring that may affect the health of our customers.

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Therefore the market that we plan to cater to with our new drink HC is the health conscious new generation that cannot compromise on the taste while wanting to stay healthy. We plan to launch HC within the next 2 months.


The idea is to develop a product that satisfies the customer’s requirements for cola while reducing the harmful effects of cola. The new product is a drink that is not only healthy but tasty and will be provided to customers in attractive packaging. We are initially going to launch in a developed country such as the United Kingdom. We plan to launch in London, Manchester and Glasgow. Our expansion into other markets will depend on our sales in UK and our profit levels after the first year (McKay, 2008).

We plan to invest $2 billion out of which $1.5 billion will be spent on research and development, advertising, manufacturing, marketing and sales and distribution. Whereas the remaining $0.5 billion will be spent next year for continued marketing and advertising (Launching a drink, 2009).


Cola has dominated the carbonated drink market for years and for many people has become an addiction. A large number of drinkers are unaware of the impact high amounts of cola can have on their health. It can lead to obesity, mental disorders, heart diseases, tooth decay and many other health related problems.

The healthy cola recipe does not use any preservatives, sweeteners or artificial flavors. It mainly contains natural ingredients that do not harm the health of the drinker. We have decided to launch HC to meet the growing demands for healthy carbonated drinks and so it is called HC which stands for Healthy Cola (McKay, 2008).

Success criteria

We measure our success by the number of satisfied consumers we have around the country. We involve in continuous feedback through market surveys in order to learn the response of our customers to new products. We also have a complain line and a reduced number of complaints about the product depicts consumer satisfaction. Continued high sales also indicate that the product is successful and the consumers are satisfied.

The Project team

The project team comprises of ten people. Each department is represented by two of its members in the project team i.e. two people from each department sales, finance, marketing, research and development and logistics are selected to be a part of the team. This variegated representation allows each department to work collectively together to ensure that the new product is effectively developed, marketed and delivered to the customers while keeping costs to the minimum and maintaining high quality.

The Project life-cycle

During this stage of the product, research and development is critical. There is great emphasis on quality i.e. ensuring that HC meets all quality standards. During the growth stage, we will rely on forecasting to determine our periodic sales. Depending on the sales, we will expand our existing capacity to cater to the growth in demand for HC. We will ensure an efficient distribution of our product so that it reaches our target market i.e. those who consume carbonated drinks but would like to shift to healthy drink that provides them the same taste.

During this stage we aim to indulge in intense marketing through celebrity endorsements, promotional campaigns at universities, clubs and bars and advertisements on radio and television. The next is the products maturity stage where our competitors may come out with their healthy cola recipes or they might even come out with their recipe before our product has matured. At this time our focus will be competitive prices, great taste and cost cutting to ensure HC’s long life.

The Project phases


In this project phase the idea is developed. In this case the idea is to develop the healthy cola. During this phase, the project team understands the financial feasibility of the project, the business environment required, and stakeholder analysis. For the healthy cola to become a profitable product, it is essential to understand whether there cost of developing this new product is feasible and whether the stakeholders which include customers and company will respond to the product positively. The feasibility analysis indicates that HC will increase the sales revenue for the firm within the first year of its launch.

Planning and design

The healthy cola is recipe is developed and tested thoroughly to understand its benefits and impact on consumer health. Thorough research goes into designing the right mix of ingredients to develop the drink. Continuous testing is done in the laboratory to ensure that the new recipe will suit consumer’s taste. Quality standards are set in accordance and budget and time constraints are taken into consideration for the product development. It is during this phase that the decision of when to launch the healthy cola in the market and how much marketing budget to allocate are taken.


The next phase is where the healthy cola is launched into the market. Necessary sales targets are set for a time period and marketing department undertakes the responsibility of making the product reach the target customers through advertisements, promotions etc. We are currently focusing on celebrity endorsement as our main tool of promoting our product. We are considering some celebrities who will help in establishing a positive word for the product while keeping our marketing budget into consideration.


The last phase aims at studying the customer response and feedback to determine whether the product is doing well in the market. Adjustments are accordingly made to suit customer needs.

Context i.e. PESTLE

We have decided to launch the healthy cola in major parts of the United Kingdom. There are various reasons for our decision. The political environment of United Kingdom is stable. A large number of world’s best universities are located here which means larger student population going to clubs and pubs.

This gives us a large market to cater to. The country is technologically advanced allowing us to benefit from the best machinery and plants. Labor although is expensive as compared to labor in developing countries but the other factors outweigh the high labor costs and since most of our processes our mechanized, we may not be incurring very high labor costs.

Another factor which maybe of serious concern is the economy of the country. With the recent global downturn, United Kingdom has been greatly affected; however carbonated drinks come in the snacks and soft drinks category which has not been severely by the financial crisis. This gives us an opportunity to explore new markets for our healthy cola. Furthermore, the population in the United Kingdom is more aware of the effects that high amounts of caffeine or preservatives may have on health providing us with a huge target market.

Works Cited

Launching a drink. (2009). Retrieved March 9, 2009, from C:Documents and SettingsAsad AliLocal SettingsTempLaunching a new drink [Archive] – UK Business Forums.mht

McKay, B. (2008, November 21). Pepsi plans big investmentZ. Retrieved March 10, 2009, from C:Documents and SettingsAsad AliLocal SettingsTempPepsi Plans Big Mexican Investment — Commercial Alert.mht