Marketing mix of PepsiCo
This is a detailed analysis of the marketing mix of PepsiCo. It analyses 4Ps (Product, Price, Place, and Promotion) of PepsiCo and explains the company’s business & marketing strategies. PepsiCo is a multinational food, snack, and beverage corporation headquartered at New York in the United States.
PepsiCo offers customers a wide range of products. Its products are available around the world. Its portfolio includes 22 brands and these brands come under four broad categories i.e. global brands, good-for-you brands, fun-for-you brands, and better-for-you brands (PepsiCo, 2018). These brands are so well-known in their own distinctive ways that many people may not even know that they belong to PepsiCo.
Pepsi, 7up, Miranda, Doritos, Quaker, Walkers, and Tropicana are some of the most famous members of the PepsiCo family. Entering into the markets such as snacks and breakfasts has helped PepsiCo grow around the world. The company takes comprehensive measures so that its products can meet the highest food safety and quality standards.
Price and pricing strategies of PepsiCo
The non-alcoholic beverage industry is dominated by two big giants i.e. PepsiCo and Coca Cola. Therefore, PepsiCo must take competition into consideration while developing its pricing strategies. PepsiCo prices its products competitively; however, neither PepsiCo nor Coca Cola seems to be interested in waging price wars against each other. Therefore, both companies focus more on branding than on pricing. Hugh Johnson (the CEO of PepsiCo as of November 2018) has made it clear by reiterating that PepsiCo pricing has to be “competitive in the marketplace”, and lower pricing is not part of the company’s strategy to gain market share (Vizard, 2018).
Place/distribution channels of PepsiCo
Place is the next element to address in the Marketing Mix of PepsiCo. The products of PepsiCo are available in more than 200 countries and territories in the world. The company has six global divisions which either independently or in conjunction with third parties, make, market, distribute and sell a wide variety of food and beverages (PepsiCo, 2018). It is worth noting that there are variations in PepsiCo’s distribution strategies. For example, some of the products are sold to authorized bottlers, independent distributors and retailers in some regions. The company also has its own bottling plants and distribution facilities in certain markets.
Promotional strategies of PepsiCo
PepsiCo implements a wide variety of promotional strategies to reach out to the target customers. It carries out advertising campaigns on TV, social media, radio, print media and other outlets. Its celebrity endorsement started with Michael Jackson, and this tradition included celebrities such as Kendall Jenner, Madonna, Beyonce and many others.
PepsiCo has made a very good use of public relations and sponsorship of events over the years. It increased its advertising focus on its healthier products in the last few years. However, it plans to increase advertising spending behind its big brands, through both major ad campaigns such as for Mountain Dew at the Super Bowl and through better in-store displays (Vizard, 2018).
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Last update: 02 November 2018
PepsiCo (2018) About, available at: http://www.pepsico.com/About (Accessed 31 October 2018)
Vizard, S. (2018) Pepsi refocuses marketing spend behind its big brands as full-price sales take a hit, available at: https://www.marketingweek.com/2018/02/15/pepsi-refocuses-marketing-big-brands/ (Accessed 23 October 2018)
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Author: M Rahman
M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He is a graduate of Leeds Metropolitan University and London South Bank University.