pepsiiico-blog

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POST 12: PROMOTION

PepsiCo is a part of every social media (even Tumblr!). With technology advancing, it is crucial for a brand to hop on the social media bandwagon. It has its largest presence on Facebook with nearly 37 million likes and Twitter with over 3 million followers. Taking a look at Pepsi’s Facebook, it is clear that they promote their product heavily based on using familiar faces like Kendall Jenner, Tinashe, Leroy Sanchez, Jidenna and Bebe Rexha. They surely do their best to appeal to their younger consumers. They also use giveaways/sales promotions to promote their posts and use the hashtag #FortheFans among many others. I think this is incredibly effective considering how many people use Facebook and react to their posts. Thus, raising even more brand awareness.

In 2015, PepsiCo spent $3.9 billion on both advertising and other marketing tactics. Whether you’re listening to the radio, watching television, walking down the street or flipping through a magazine, it is a certainty you will see a Pepsi advertisement if you pay close attention.

PepsiCo doesn’t participate in personal selling for their products, and I don’t think it would be beneficial for them to do so.

PEPSI. Retrieved May 07, 2017, from https://www.facebook.com/pepsi/

PEPSICO, INC.|Company Profile. (n.d.). Retrieved May 07, 2017, from http://www.vault.com/company-profiles/food-beverage/pepsico,-inc/company-overview.aspx

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POST 11: PLACE (DISTRIBUTION)

PepsiCo utilizes three distribution channels; direct store delivery, customer warehouse, and third-party distributor networks. With a direct store delivery, PepsiCo is able to deliver their products directly to retail stores. The least expensive option is the customer warehouse since it contains few fragile and perishable products. Third-party distributor networks is where PepsiCo has a third-party food service/vendor go to restaurants, schools, stadiums and businesses. PepsiCo uses intensive distribution considering they want their products sold anywhere and everywhere. The company’s products can be found practically anywhere: grocery stores, full-line discount stores, convenience stores, supercenters, mass merchandisers, membership stores, authorized independent bottlers, and food service distributors. Whew!

Sharon Bailey   | Dec 12, 2014 3:42 pm EDT. (n.d.). PepsiCo's three-channel distribution network. Retrieved May 08, 2017, from http://marketrealist.com/2014/12/pepsicos-three-channel-distribution-network/

Management’s Discussion and Analysis. (n.d.). Retrieved May 08, 2017, from https://www.pepsico.com/Annual-Reports/annual12/blocks/financials/our-business.html

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POST 10: TRENDS/PRICING

More consumers are becoming health conscientious in today’s time with all the talk of what’s organic and what contains GMOs, so the health and wellness trend could pose either a threat or opportunity to PepsiCo depending on how they approach it.

So far, they are trying out different methods in order to not succumb to this health concern among the nation. Last year, PepsiCo began using fruits and grains in their beverages as a replacement for sugar in order to appeal to consumers weary of drinking soda. Chief Executive Indra Nooyi has pushed for “guilt-free products” and for beverages 70 calories or less per 12 ounces. A soda might not seem so bad if it doesn’t contain all those empty calories and unnecessarily high levels of sugar. Am I right?

Because PepsiCo has such an array of a product mix, prices can vary. For the most part, we can agree that they are pretty affordable. The two pricing strategies they use are market-oriented pricing strategy and as of 2013, hybrid everyday value strategy. Market-oriented pricing strategy is all about competition (Coca-Cola), whereas hybrid everyday value is the most appealing to customers since it offers an inexpensive cost. PepsiCo was known for heavily discounting their products when it was the holiday season, and in order to close the gap between holiday and everyday profits, they changed the pricing to one that would attract more daily buyers and boost profits.

Garcia, T. (2016, April 19). PepsiCo using grains and fruits in drinks and snacks as consumers shun sugar. Retrieved May 08, 2017, from http://www.marketwatch.com/story/pepsico-capitalizes-on-health-and-wellness-trend-with-guilt-free-products-2016-04-18

Young, J. (2017, February 06). PepsiCo's Marketing Mix (4Ps) Analysis. Retrieved May 07, 2017, from http://panmore.com/pepsico-marketing-mix-4ps-analysis

UPDATE 1-PepsiCo rethinks U.S. pricing to attract more daily buyers. (2013, May 22). Retrieved May 07, 2017, from http://www.reuters.com/article/pepsico-pricing-idUSL2N0E32L020130522

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POST 9: SERVICES

PepsiCo primarily offers customer service. If you want to contact Pepsi, you can either call their 1-800 number provided on their website or send them an email to either share a comment/compliment, voice a problem, ask a question, or talk about a promotion. You can also send an email to Frito-Lay, Quaker, Gatorade and Tropicana if you wish. I’m sure this (along with Twitter) is how a lot of people contacted them regarding the Kendall Jenner ad they aired. PepsiCo gave the people what they wanted and pulled it.

Contact Us. (n.d.). Retrieved May 07, 2017, from http://www.pepsico.com/home/contact

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POST 8: BRAND

PepsiCo made its start in 1898. Since then, the national brand that is Pepsi has become incredibly successful and has heavily expanded. (Let’s keep in mind that PepsiCo’s soda makes up just 12% of their revenue...) As PepsiCo obtained plenty of brand awareness and brand loyalty throughout the years, they began increasing their product mix via brand extension and line extension.

Today, PepsiCo takes great pride in the fact that they offer 22 “iconic, billion-dollar brands”.

They have multiple lines of beverages by Pepsi, 7UP, Mountain Dew, Lipton, Tropicana, Aquafina, Gatorade, etc. and food by Cheetos, Lays, Lehar, Quaker Oats, etc.

Bhasin, H. (2016, November 28). Marketing mix of Pepsi. Retrieved May 07, 2017, from http://www.marketing91.com/marketing-mix-of-pepsi/

BrandsYou Love. (n.d.). Retrieved May 07, 2017, from http://www.pepsico.com/brands

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POST 7: PACKAGING

Pepsi’s packaging is simple, sleek, and catches consumers’ eyes. The logo represents a globe, and the use of three colors makes it pop since the red and blue contrast one another. The lowercase and italicized font is unique as well (a change from the Pepsi cans we grew up with with all caps). 

They recently released a new design for their “PepsiMoji” campaign. The use of just an emoji can appeal to consumers all over the globe since it feels much more personalized. 

I do not think there are any changes that should be made to Pepsi’s packaging, although, I do prefer the early 2000 design best. I do see how the recent design is the most aesthetically pleasing.

ARTHUR, R. (2016, March 15). PepsiCo rolls out 'PepsiMoji' campaign, as packaging gets more creative and personal. Retrieved March 22, 2017, from http://www.beveragedaily.com/Processing-Packaging/PepsiCo-PepsiMoji-campaign-creative-and-personal-packaging

Stampler, L. (2013, March 22). Pepsi Is Completely Changing What Its Bottle Looks Like. Retrieved March 22, 2017, from http://www.businessinsider.com/pepsi-completely-changing-its-bottle-look-twist-2013-3

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POST 6: COMPETITION

PepsiCo’s key competitor has been, is, and always will be Coca-Cola. Coca-Cola always takes the cake when it comes to first place and has for years. Coca-Cola has been around longer, pays more money in advertising, has more of an international presence...you name it. Although, according to the Pepsi Taste Test, people do prefer the taste of Pepsi more!  

PepsiCo’s market capitalization is 30% less than Coca-Cola’s and scored lower on every category on Brandwatch’s social index. The four categories include social visibility, net sentiment, reach growth, and social engagement and content.

While Coca-Cola does dominate, that doesn’t mean PepsiCo doesn’t excel in other areas. Pepsi is known as the United States’ largest snack and non-alcoholic drink producer with 39% and 25% of the respective market shares. Another fun fact is that PepsiCo’s revenues aren’t completely made up of their carbonated soft drinks - 60% of it is made off of Gatorade and Tropicana products. Who would have thought?

Coca-Cola Company (KO). (n.d.). Retrieved March 20, 2017, from http://www.wikinvest.com/stock/Coca-Cola_Company_(KO)#Domestic_Competition_and_Market_Share)

Coke vs Pepsi: Market Share Analysis on Social. (2016, June 17). Retrieved March 20, 2017, from https://www.brandwatch.com/blog/the-coke-vs-pepsi-social-presence-showdown/

Pepsico (PEP). (n.d.). Retrieved March 20, 2017, from http://www.wikinvest.com/stock/Pepsico_(PEP)

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POST 5: TARGET MARKET

Since Pepsi is so heavily involved in entertainment, it’s no surprise that their target market is the younger generation. Demographics show that those targeted are 15-45 year old males and females with an average/above average/high-earner income, and are either students/employees/professionals. Pepsi ensures through using a differentiated marketing strategy to appeal to those who may want to drink soda without all the calories/caffeine by releasing Diet Pepsi and Pepsi Max.

Those who purchase PepsiCo products are part of the working class, middle class, or upper class. Their lifestyles are that of an aspirer, succeeder, or explorer. Consumers have a self-concept as being easygoing, determined, and ambitious.

Since PepsiCo has consumers worldwide, there is no need for geographic segmentation.

PepsiCo Segmentation, Targeting and Positioning. (2016, May 08). Retrieved March 20, 2017, from http://research-methodology.net/pepsico-segmentation-targeting-and-positioning-2/

War, C. (n.d.). Pepsi targeting & positioning. Retrieved March 20, 2017, from http://softdrinkcolawar.blogspot.com/2012/12/pepsi-positionig-pepsi-has-historically.html

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POST 3: STRATEGY

Because Pepsi and main competitor, Coca-Cola, are so close in taste, price, and just about everything else, the main differentiation is how they market themselves. The way the companies position their brands is what makes all the difference. (Although, Coca Cola usually takes reign over PepsiCo...)

Pepsi is big on entertainment. Pepsi has remained relevant through advertisements, event sponsorship, and product placement as part of their market penetration strategy. Plenty of celebrities like Madonna, Britney Spears, Michael Jackson, and Mariah Carey have endorsed Pepsi. Pepsi even sponsored Magruber sketches on SNL as part of their collaboration for product development purposes.

B. (2011, December 12). Product Touch Point and Differentiation. Retrieved March 20, 2017, from http://exchange2012sbm.blogspot.com/2012/12/product-touch-point-and-differentiation.html

Speculations, G. (2011, August 09). Pepsi Can Dream About Entertainment Reversing Share Loss. Retrieved March 20, 2017, from https://www.forbes.com/sites/greatspeculations/2010/06/23/pepsico-enhances-its-brand-with-sponsored-entertainment/#2bf6e3eaa8f6

POST 4: SWOT

I think between every opportunity PepsiCo has, they should aim to focus on their product innovation and establish more growth in healthier beverages. They have recently released Quaker oatmeal breakfast bars as well as flavored Aquafina sparkling waters. This strength could increase their organic revenue from 4-6% in hopes of helping their declining sales on Diet Pepsi. This could help with the threat of obesity/health concerns if they continue releasing more health conscientious foods/beverages.

PepsiCo has high-profile sponsorship deals that could help it become more recognized worldwide rather than just in North America. It will be tough though considering Coca-Cola is the head honcho, which attributes to Pepsi’s weaknesses. With advertising and their diversified product portfolio, there is potential for Pepsi to make more of a name for themselves in other parts of the world.

Publishing, V. L. (n.d.). Retrieved March 25, 2017, from http://www.valueline.com/Stocks/Highlights/PepsiCo,_Inc___A_Quick_SWOT_Analysis.aspx

Rohail Siddique, Intern Follow. (2012, April 26). Cola-wars-continue-coke-and-pepsi-in-2006-by-group-c. Retrieved March 25, 2017, from https://www.slideshare.net/rmsiddique/colawarscontinuecokeandpepsiin2006bygroupc

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POST 2: BRAND

PepsiCo Inc. is all selling about food, snack and beverage products. They own many companies including Frito-Lay, Tropicana Company, Gatorade, Quaker Oats Company, etc. It is a b2b company. Their annual sales are $74 billion.

The corporate headquarters are located in Purchase, NY. It is a publicly traded company. PepsiCo has 264,000 employees. Their mission statement is “It [PepsiCo] strives for honesty, fairness and integrity. The company seeks to produce financial rewards for investors and provide opportunities for growth and enrichment to its employees, its business partners and the communities in which it operates.”

REFERENCES:

List of Publicly Traded Soft Drink Companies. (2016, November 05). Retrieved February 20, 2017, from http://investsnips.com/list-of-publicly-traded-soft-drink-companies/

What We Believe. (n.d.). Retrieved February 20, 2017, from http://www.pepsico.com/purpose

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POST 1: START