Disney & PepsiCo: A Detailed Brand Portfolio Strategy Analysis

This report provides a comparative analysis of the brand portfolios of Disney and PepsiCo, examining their respective branding strategies as a 'Branded House' and a 'House of Brands.' It explores the drivers behind each company's strategic choices, including their approach to brand equity, market segmentation, and brand architecture. The analysis contrasts Disney's storytelling-focused strategy with PepsiCo's diversification approach, highlighting the advantages and disadvantages of each. The report concludes that while both companies have achieved success through their chosen strategies, they must continue to innovate and adapt to evolving consumer preferences. Desklib is a valuable resource for students seeking similar solved assignments and study tools.

Running head: BRAND PORTFOLIO ANALYSIS
TWO BRAND PORTFOLIO ANALYSIS
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1TWO BRAND PORTFOLIO ANALYSIS
Executive summary
The report reviews the two brands Disney and PepsiCo. It provides a brief summary about the
two selected companies. It provides a critical analysis of the two brands. It contrasts and
compares the two firms Disney and PepsiCo, their approaches in branding. It critically examines
why the selected organizations have selected the branding strategy. It provides brief analysis of
how both the firms place their brands. Lastly, it concludes how the two firms approach in
branding was appropriate.

2TWO BRAND PORTFOLIO ANALYSIS
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Brand equity of Pepsi Co:............................................................................................................5
Segmentation of brands/sub brands.............................................................................................6
Difference between two branding strategies....................................................................................7
Drivers behind core marketing strategy...........................................................................................7
Brand architecture strategy..............................................................................................................8
Advantages and disadvantages of the strategy............................................................................8
Conclusion.......................................................................................................................................9

3TWO BRAND PORTFOLIO ANALYSIS
Introduction
Disney is one of the world famous brands. Their vision is to create stories, vision and
characters. With its world famous stories it has become one of the biggest movie studios all
across the world. The company has expanded over time and has influenced the global market
with its creative and innovative stories. The world famous brand is known for family
entertainment, amusement parks, and media networks. It has continued to make emotional
impacts on the minds of the people. It makes use of the nostalgia and emotions and finds out new
and innovative ways of remaking the old classics like the Jungle Book and Beauty and the Beast.
Disney utilizes the strategy of content marketing.
Pepsi Co. is the leading brand in the food and beverage industry since a long time. Pepsi
Co. uses the mass branding strategy in promoting their brand. The brand has successfully
expanded its business and has boosted up their research and development. There well placed
advertisement and impression has created a huge impact in their brand presence across the globe.

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Discussion
Figure 1: Brand Portfolio
Source: (The Walt Disney Company 2019)
Figure 2: Market Share of PepsiCo

5TWO BRAND PORTFOLIO ANALYSIS
(Source: Pepsico.com 2019)
Brand equity of Pepsi Co:
The world famous brand increases its brand equity by associating its products and
targeting the young audience mainly. It associates its brand with sports and promotes its brand
with famous stars and cricketers. It works hard to build its brand equity. It builds strong
marketing campaigns (Pepsico.com 2019).
Brand equity of Disney:
Disney creates strong brand equity by associating its brand with various cartoon
characters and movies stars. Disney builds a brand position in the minds of the customers by
satisfying the customer requirements and building strong advertising campaigns (The Walt
Disney Company 2019).

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Segmentation of brands/sub brands
The brands and sub brands of Disney are divided into four segments:
 The geographic segmentation,
 Demographic segmentation,
 Psychographic segmentation
 Behavioral segmentation
Geographic segmentation is used for strategic location of Disney’s theme parks such as
Disneyland and Disney world in Hong Kong and Australia. Disney’s demographic segmentation
is based on age. Psychographic segmentation is targeted to the different income levels of the
family. Behaviorist approach includes emotional motives, nostalgia of the people. Disney
primarily focuses on the kid’s. There are segments based on the children as well: the toddlers,
and teens. The channels are segmented as well. There is playhouse Disney for absolutes toddlers,
which forecast shows on counting and numbers whereas for teens there is Disney channel which
forecasts live shows and movies (Gamble 2014).
Pepsi Co brands are divided into four segments:
 Geographic segmentation,
 Demographic segmentation,
 Behavioral segmentation and
 Psychographic segmentation.
Pepsi Co. targets the domestic as well as international regions. The targeted age group is
15-45 both males and females. Income is above average and high earners. They target the degree

7TWO BRAND PORTFOLIO ANALYSIS
of loyalty, and targets people who seeks refreshment, satisfaction. They target the social working
class, middle class and upper class people (Koltler 2014).
Difference between two branding strategies
Disney firmly believes story telling as their strategy. Their strategy is giving a story to
their brand. This brings in concept and meaning to the products and services offered by the
brand. Their main strategy includes building a compelling brand story. The company generic
strategy is to focus on uniqueness and creativity which forecasts in entertainment, and amusing
movies. The company expands internationally through innovation and creativity (Gamble 2014).
Core branding strategy of PepsiCo is diversification. Operations of the PepsiCo are done
through marketing, research, processing, development and distribution. The company primarily
focuses on mergers and acquisition with the other food industry. The company believes in
bringing in new and innovation to the existing products. They promote their brand through the
celebrities. They design its packaging and commercials in an attractive way (Hafiz 2015).
Drivers behind core marketing strategy
The drivers behind branding strategy of Disney are to enchant the entire world with their
amazing cartoons and entertainment (Kotler et al. 2014).
Compared to Pepsi Co, their core brand strategy is sequential diversification of the
products. They firmly believe in this strategy as the customers in the food industry would expect
variety of products not just one from a particular company. Considering the wants and
requirements of the customers, the company follows this branding strategy (Baker 2014).

8TWO BRAND PORTFOLIO ANALYSIS
Brand architecture strategy
Brand architecture strategy can be defined as structure of the brands in a strategic, logical
and relational structure in the portfolio. The main criteria are that the products are differentiated
and it gets related to its brands in various levels. This assists the organization in creating a brand
portfolio which is in different sections (Baker 2014). The Pepsi Co brand is the master brand. It
has sub brands such as Pepsi diet, mountain dew and others. These sub brands relate to the
product brands. The Disney Company is the master brand and it has sub brands such as
Disneyland, Disney world and others as endorsed brands. This allows the organization is creating
several distinct segments.
The main objectives of the brand are clarity. It must promote clarity in the market place
so that it is easier for the customers to differentiate. It helps in the internal organization as well. It
enables the organization to focus on areas and benefits of every brand. It provides linkage with
the several sub brands (Finch, 2013).
Advantages and disadvantages of the strategy
Disney operates globally both domestic and internationally through various sub brands.
Disney has various platforms to forecast, promote its stories and movies. Disney has huge
collection of films, movies, TV series and stories to be provided to the viewers. Hence due to the
multi platform integration this strategy is an added advantage. However, the company primary
targets the kid’s as core audience. They need to come up with new and innovative ways for
movies apart from classics (Gamble 2014).
The advantage of Pepsi Co brand strategy is mainly product diversification. They are able
to concentrate on the sales. This makes the firm achieve great appeal from the customers, as they

9TWO BRAND PORTFOLIO ANALYSIS
bring in new and innovative way to the product they can gain loyal customers. They have
successful promotional techniques and advertising campaigns. This brings in new customers.
The disadvantage of this strategy is that its time consuming, bringing in new innovation will
result in low profitability as there is risk in bringing in new products.
Conclusion
Therefore from the above analysis it can be concluded that Disney has a strong marketing
strategy with global presence. It has successfully positioned itself in the mind of the customers. It
has built strong brand equity by using its product mix, sales techniques, marketing strategy and
other strategies. However, it needs to bring in more innovation and focus on the target audience.
PepsiCo focus on its brand equity has brought in huge success for the company. It strongly
considers the interest of the target audience and endorses its brand with famous crickets and
stars. They are focused in bringing new innovations for the product which strengthens its brand
equity.

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References
Ayodele, A.O., Selecting a Strategic Option for Walt Disney.
Baker, M.J., 2014. Marketing strategy and management. Macmillan International Higher
Education.
Baker, M.J., 2014 Rethinking Brand Identity to Become an Iconic Brand-A Study on
Pepsi. Asian Business Review, 5(3), pp.97-102.
Finch, D., Nadeau, J. and O’Reilly, N., 2013. The future of marketing education: A practitioner’s
perspective. Journal of Marketing Education, 35(1), pp.54-67.
Gamble, J. and Thompson, A.A., 2014. Essentials of strategic management. Irwin Mcgraw-Hill.
Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015. Marketing. Pearson
Higher Education AU.
Pepsico.com 2019- Official Website. 2019. PepsiCo Home. [online] Available at:
https://www.pepsico.com/ [Accessed 21 Feb. 2019].
The Walt Disney Company 2019. The Walt Disney Company. [online] Available at:
https://www.thewaltdisneycompany.com/ [Accessed 21 Feb. 2019].