PepsiCo is one of the largest companies in the food and beverage industry. Established in 1965, this company is now operating its business in over 200 countries worldwide. The net revenue of this company in 2019 was approx. $67 billion! With a broad range of product portfolio and a differentiated approach in each country, this brand has made a strong brand identity among tough competitors. Despite product similarities, PepsiCo always used distinct and unique marketing strategies compared to its biggest competitor Coca-Cola. Even though this company had some hard phases, including bankruptcy, it stood up again with more enthusiasm and showed the world the power of brand image and effective marketing strategies.
Product Strategy of PepsiCo
Product is the primary factor though which a company begins its marketing activities. The value it proposes with certain products works as the base of marketing.
PepsiCo has a broad range of product lines under two categories, drinks, and beverages. Initially, this brand was only devoted to different kinds of drinks, but then it added snacks on its product line and got huge success, and their sales and profit margins also increased. And recently it entered into the mineral water business too! PepsiCo’s popular beverage products include Pepsi cola, 7up, Mirinda, Mountain Dew, Tropicana (Fruit Juice), Diet Pepsi, diet mountain dew, and many more. And this brand with its snack items such as Kurkure, Cheetos, Lay’s has beaten up all other competition in the market. It also serves Quaker oats (cereal), Gatorade (sports drink), ready to drink teas, etc. which added more dimension to its product offering. There’s also a brand of drinks called Brisk, which is the result of a joint venture between PepsiCo and Unilever. Even the approach of “Cut the sugar” formula has gathered a massive response among today’s health-conscious people around the world. This company never loses a chance to invent new products based on the latest market openings and demands. There’re also events of launching new products focusing on popular events as well.
Price Strategy of PepsiCo
A business offers something and expects something in return, and that is called price. And marketing suggests deciding that amount in a way that both the buyer and seller feel is appropriate for them based on the product’s value.
PepsiCo always does extensive research before launching a product in the market and analyzes which negotiable amount will be perfect for that product. Depending on the demand and target market, this brand uses a different pricing strategy for its diverse product. As a global country, this company keeps the price separate based on each country’s affordability and acceptance. Due to the fierce competition with Coca-Cola, these two companies always use a competitive pricing strategy. As for PepsiCo, it still encourages people to buy in bulk amount. And how does it do it? This company supplied its products in various sizes, and the most significant size offers a relatively low cost compared to the amount. As a result, people psychologically feel a push to buy the bigger bottles and end up purchasing in a bulk amount. Although there’re products like Tropicana, which is targeted to people of a bit wealthier sections. As a result, this product costs relatively higher than other drinks of this brand.
Place Strategy of PepsiCo
A marketing strategy won’t work if people can’t find a company’s products at their nearest possible place. Especially if it’s a domestic product. That’s why ensuring a proper placement and distribution strategy is very important in the marketing mix.
This global brand has a broad network of distribution channels. It uses a DSD or direct store delivery system, which ensures maximum product availability under any circumstances. This brand strictly maintains that its customers never leave a store with another replacement as they couldn’t find its products. This brand owns famous international restaurant chains such as Pizza Hut, KFC, and Burger King Etc. And this third party distributor network has made this company’s placement and visibility more robust. Also, the sharp brand image this company has helps it to build a good connection with its suppliers and other distribution channels. As a result, PepsiCo has the benefit of getting market insights into how it can make its products more visible and if there are opportunities for new openings. This brand has made its appearance in almost every remote area of those 200 countries where it performs its activities. You won’t find any people who haven’t tried Pepsi cola at least once in their life, no matter in which part of the world you go.
Promotional Strategy of PepsiCo
Promotional activity completes the marketing mix plan. Promotion can make a business stand out from others even if the business doesn’t offer anything new. It all depends on how much attention a company can gather among the target market.
PepsiCo always wanted to have a place in people’s hearts in a different way than Coca-Cola. That’s why it never uses emotional appeal through its promotional activities. Instead, it has a brand image of youthful energy. It successfully connected itself with the younger generation. For that, it uses the sports industry and promotes itself there, and we all know the Pepsi IPL craze. It also has its own line of sports drinks names Gatorade, which is a huge success. Also, the slogans, packaging, and innovation this company does, are enough to create hype among people. PepsiCo is always active on all the social media sites and continually runs promotional campaigns such as “Bring home happiness”. Its other remarkable promotional strategies are using emojis, pranks, and publicity stunts with AR, promoting advocacies with VR, etc.
In Summary
PepsiCo has a distinct place in the food and beverage industry. It’s also one step ahead of Coca-Cola with its extensive product portfolio. PepsiCo always uses different strategies for different locations, which has made this brand more appealing among people worldwide. You can have a taste of different images of this brand while traveling to different countries. Though the competition is really tough with Coca-Cola, it never let PepsiCo take a pause.
Related Reading
- 7 Advertising Strategies of Coca-Cola
- 5 Major Competitive Advantages of Coca Cola
- What Competitive Advantages did PepsiCo Develop Over the Years?
References
- http://www.affinitydrinks.es/en/news/202-about-pepsi
- https://www.forbes.com/sites/panosmourdoukoutas/2019/10/05/pepsis-new-winning-formula-cut-the-sugar/#4858b93b7598
- https://marketrealist.com/2019/11/pepsico-a-must-know-overview-of-the-consumer-giant/
- https://www.daytranslations.com/blog/how-pepsi-expands/
- https://digiday.com/marketing/every-state-is-different-inside-pepsis-regional-approach-to-increasing-its-advertising/
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