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Questions for Discussion:

What markets should Pepsi target for Aquafina?

What recommendations would you make foradvertising objectives, message strategy, andmessage execution for Aquafina?

What advertising media recommendationswould you make for Aquafina, and how wouldyou evaluate the effectiveness of those mediaand your advertising?

What sales promotion and public relationsrecommendations would you make forAquafina?

What recommendations would you make forpromoting Aquafina Sparkling and FlavorSplash?

To what extent is Aquefina's sales growthattributable to advertising and promotion versusthe growing dynamics of the market?

Briefly examine bottled water industry in Koreaincluding carbonated soft drink market. Identifykey marketing problems and suggest yourmarketing recommendations to deal with theidentified problems.

For decades, Pepsi fought to sell more cola than Coke. It now appears that Pepsi may have willingly conceded the number one cola honor to Coke. Although it hasn't given up on keeping the Pepsi brand at a strong number two, it has been quietly taking another route to kicking Coke's can. In fact, in December of 2005, Pepsi Co surpassed Coca-Cola in market capitalization for the first time in the 108-year rivalry. In the five previous years, PepsiCo's stock had risen by more than a third while Coke's had dropped by the same amount.

What drove this changing of the guard? Without question, one of the most significant factors is Pepsi’s lead in growth categories, such as bottled water.” They were the first to recognize that the consumer was moving to non carbonated products, and they innovated aggressively," observed the analyst. That non carbonated beverages are growing so rapidly bodes very well for Pepsi. Some 35 to 40 percent of its beverage sales are in non carbonated categories, as opposed to only 15 percent for Coca-Cola.

But while Coca-Cola seems to be putting of effort into bottled water, it also may be overly confident

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