Marketing Mix Strategies of PepsiCo: Pepsi Cola

This presentation discusses the marketing mix strategies of PepsiCo for Pepsi Cola. It covers the product mix, target market analysis, segmentation analysis, positioning, pricing, promotion, placement, physical evidence, process, and people. It also provides insights into the brand strategy decision and the company's background information. The target market of Pepsi Cola is mainly the youth, and the brand caters to all social classes. Pepsi Cola is a market leader and has introduced several campaigns and promotions to maintain its position.

MARKETING MIX
STRATEGIES
PepsiCo :
Pepsi-Cola

Pepsi Cola

PepsiCo Background
information
 PepsiCo started its journey in 1965 and became a successful
business brand in the snack food and beverage
manufacturing. The President and then CEO of Pepsi-Colas,
Donald M, Kendall approached the Chairman and CEO of
Frito-Lays, Herman Lay. He lay on the table the plan of
merging the two companies with an idea of giving away
complimentary products with the food and beverage
products. This would help them share the cost, skill,
merchandise and of course the knowledge.
 PepsiCo manufactures a carbonated soft drink, Pepsi Cola,
which was originally developed in 1893 and introduced in the
market as Brad’s Drink. In 1898, on 28th August it got its
name changed as Pepsi-Cola and thereafter in 1961, it got
renamed to Pepsi. It is still in the North America known as
Pepsi-Cola according to the last update of 2014.

PepsiCo
 Pepsi-Cola has purchased its headquarters in New York.
Pepsi-Cola has its dominance on one-third of the soft
drink market sales in the US, totaling to about 57 billion
dollars. Other than the US, its available in 160 other
countries(Dudovskiy, 2017). Pepsi-Cola has today one
fourth of the total soft drink sales globally.
 In 1898, Brad’s Drink named Pepsi Cola after the word
“dyspepsia” and the use of kola nuts in the recipe. In
1903, the bottling of the beverage was moved from the
drug house of Bradham to a warehouse, which was
rented(Dudovskiy, 2017). . Originally the trademark
application of Pepsi-Cola was done on 23rd Sep’1902
and the registration approval happened on 16th June
1903(Dudovskiy, 2017).

Product mix
strategy:
Products in
Beverages
Diet Pepsi,
Tropicana,
Aquafina
water Bottled,
Thirst
Quencher,
Mountain
Dew,
Gatorade.

Product mix
strategy:
Product mix typically
known as :
the amount of stuff in
the product line;
the number of product
lines which the
organisation offers,
Various type of
products present in the
in the product line;

Target market analysis:

Segmentation analysis
 A multinational company has to take into consideration
many additional factors like geo-demography.
 The trends that impact the US would have a similar
impact on Japan or any other country is not really
possible.
 The marketing strategies differ from one country from
that of the other because of the cultural and language
difference, especially regarding ads.
 The main reason why PepsiCo has been able to
successfully do business across borders is that PepsiCo
Inc(Dudovskiy, 2017). .
 worked based on the culture, taste, and languages which
made it reach the heart and home of the people.

Psycho-graphic
segmentation
 Pepsi Cola has a wide range of products,
which suits and meets the different desires
of the people. Based on different psycho-
graphics like interests, opinions and
activities, Pepsi cola has accordingly divided
its beverage segments(Bhasin, 2017). .
 Beverages like Diet Pepsi and Diet Caffeine
Free Pepsi have been introduced for health
conscious and for the ones into sports, Pepsi
introduced isotonic drinks of Gatorade
range(Bhasin, 2017). .

Target Markets:
 Pepsi-Cola's target market is young customers, which includes the
consumers of age 18 to 22 years.
 The hypothesis is accomplishment of the new segments of the
market is bit easier as the adolescent shoppers have not formed the
loyalty for the brand till time(Bhasin, 2017). .
 One more grounds for young people to be targeted is the desire of
the company to tap into the millions students of university
demanding for the high-energy giving caffeine drinks(Bhasin,
2017). .
 In 1963, the corporation began a campaign Pepsi Generation with
the aim of agreeing the consumers with the fact that the persons
who drinks Pepsi act as the forward thinker than the older,
traditional population(Bhasin, 2017).

Targeting strategy
 This operation rejuvenated in 1980s
 Bolstered with publicity and advertisements
that is featured with the known recording
artists of the 1990s and afterward in near the
beginning 2000s("Pepsi Marketing Mix",
2017). .
 Business planned advertisements where the
target are the consumers who are socially
engaged,
 Also includes the campaign of Pepsi Refresh
in 2010("Pepsi Marketing Mix", 2017).

Positioning
PepsiCo positioning strategy:
The positioning and campaign indicate change, as
Pepsi recapture foremost customers in spite of
trying to position with trends ;
Company invests in capability,
in foresights
dynamic trend-spotting,
design and creating social communities.
New-fangled positioning inject the latest vigor and
force not individually in the brand but also within
the individuals working on it, providing license to
research among the "exciting innovative initiatives.
Brand positioning of Pepsi’s has been always an
energizing cola drink for the young individuals
everywhere and on each collective occasion. The
positioning remain to be similar since its
commencement in 1898(Dudovskiy, 2017). .
"The brand positioning encouraged primarily by the
marketplace segments basically unexploited by
coca cola (young generation) and its sweet sugary
taste suitable for its young consumers",
Hence creates a Point of difference from Coca cola.

Product Mix Strategy:

Product mix
 Product mix is also known as the product
assortment.
 Kotler asserts openly that planning of the
product mix is in a great way is the
accountability of the strategic planners of
the company("Pepsi Marketing Mix",
2017). .

Positioning Strategy
 The higher-ranking management charge with the
information that is abounding by the marketers of
the organisation, which the manufactured goods
mix. so the product mix is a communal decision by
a variety of functions of the business and not that
of marketing section alone(Dudovskiy, 2017). .
 PepsiCo merchandise line directs relate to the
product mix. When company's manufactured
goods line is urbanized then product mix also
developed. As a product mix consists of all the
produce lines and items that a particular seller
offer for sale.

Brand strategy decision:
 The produce line expansion in introducing
the recent produce which is comparable to
what the corporation offers is targeting an
active market by means of the present
brand name
 Expansion of the market’s through the
brand understanding. This can be achieved
through the more products offers under the
active brand name(Dudovskiy, 2017). .


Pricing strategy:
Pepsi pricing is base on
customer perception of Value.
Prices of Cold drink are
market determined.
Pepsi never involved in a
price war with coke this may
results into eaten the brand
equity of Pepsi as customers
perceive
Pepsi is justified as the
refreshing cola experience
rather than just the thirst
quenche(Dudovskiy, 2017). r.
Pepsi is competitively priced
with the major competitors,
contributing the better
product as compared to other
brands with the competitive
price.

Promotion:
 Pepsi Stuff promotion whereby consumers build up Pepsi
Points as of buying a variety of products.
 Current promotion concerning the NY Yankees not healthy
received when not adequate free of charge tickets were
made obtainable(Dudovskiy, 2017). .
 In the year 2008 PepsiCo engaged with Tiger Woods in
promoting the Gatorade product known as Gatorade
Tiger(Dudovskiy, 2017).
 PepsiCo continue its promotional alliance by the NFL plus
the Super Bowl mainly advertising Pepsi and Doritos.
 In 2009 Pepsi launch its “Pepsi Throwback” campaign
contributing a drink with the sugar substance of its
innovative produce.

Placement
Placement
 primarily US base business
 Having just about 52% of revenue in the state.
 $1, 000 million venture in the nation of China, and a $500
million venture in India("Pepsi Marketing Mix", 2017). .
 Development into the global markets with reduction of its
dependency on the sale of US.
 Also plans on main capital initiatives in Mexico and Brazil.
 Acquiring Russia’s primary Juice Company, Lebedyansky,
plus V Water positioned in the UK("Pepsi Marketing Mix",
2017). .

Physical Evidence
 The company website provides the information
about the company wealth which also includes
the wealthy record and the built-up process of
the organisation(Kish, Riskey & Kerin, 2001). .
 PepsiCo is person in charge in the industry for its
wrapping and serving to implement and promote
such principles of sustainable covering.
 Company having high covering philosophy:
decrease, recycle, take away, reuse and
renovate(Kish, Riskey & Kerin, 2001).

Process
 The procedure of removing elevated
fructose corn syrup (HFCS) on or after
together the customary(Kish, Riskey &
Kerin, 2001). .
 The Frito-Lay section is to
manufacture the Lay’s Kettle by natural
flavours, boosting the fibre and whole
grain contented, correspondingly, in THE
Sun Chips and Tostitos brands(Kish,
Riskey & Kerin, 2001). .

People
 Indra K. Nooyi act as the CFO in additionally
act as the President of the company (Kish,
Riskey & Kerin, 2001).
 In recent times Steven S Reinemund is
designated as the main designated person of
the board and chief managerial officer of the
Board of director(Kish, Riskey & Kerin, 2001).
 PepsiCo foster such business culture which
principles for workers and emphasizes in the
place of work diversity.

People
 PepsiCo as the ‘greatest company for Multi
Cultural Women’ catalog by Working
Mother journal.
 PepsiCo is documented as Top 10 Company for
Asian Americans from the AMBA(Kish, Riskey &
Kerin, 2001). .
 PepsiCo also won the prestigious ‘Workplace
Excellence’ prize
 Fortune magazine listed PepsiCo as the top 20
‘Ideal Employer MBA Ranking’ (Kish, Riskey &
Kerin, 2001).

Conclusion:
 The product Pepsi cola is not only
bounded for any of the particular age,
lifecycle or gender.
 The brand is for all the users and every
age group but the target market of the
product is mainly the Youth(Kish, Riskey
& Kerin, 2001). .
 It caters to all the social classes as a
result its social media efforts.
 Pepsi Cola is a market leader and under
such strategy it has introduced the

Refrences:
 Bhasin, H. (2017). Marketing mix of Pepsi - Pepsi Marketing mix
and 4 Ps of Marketing. Marketing91. Retrieved 14 August 2017,
from http://www.marketing91.com/marketing-mix-of-pepsi/
 Dudovskiy, J. (2017). PepsiCo Segmentation, Targeting and
Positioning - Research Methodology. Research Methodology.
Retrieved 14 August 2017, from http://research-
methodology.net/pepsico-segmentation-targeting-and-
positioning-2/
 Kish, P., Riskey, D., & Kerin, R. (2001). Measurement and
tracking of brand equity in the global marketplace ‐ The PepsiCo
experience. International Marketing Review, 18(1), 91-96.
http://dx.doi.org/10.1108/02651330110382014
 Pepsi Marketing Mix. (2017). Marketingteacher.com. Retrieved
14 August 2017, from http://www.marketingteacher.com/pepsi-
marketing-mix/