Integrated Marketing Communications: A PepsiCo Case Study

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INTEGRATED MARKETING COMMUNICATIONS

Executive Summary
This study sheds light on the concept of Integrated Marketing Communication (IMC). This
study also considered advertising as one of the several ideas of this concept. For the specific
purpose of this study, the advertising strategies of PepsiCo have been considered. The study
briefly discusses the company details such as Mission and Vision of the company,
background and its mostly adopted advertising strategy. The report also stated the success of
this adopted strategy in relation with the marketing of the brand. This study has also
considered one of its prime projects of water stewardship as the case study for this report.
This report resolves to critically evaluate the SOSTAC strategy for the purpose of
advertisement. These effective advertising tools have been evaluated in relation with the
PepsiCo brand.

Table of Contents
Part 1 Power Point Presentation...............................................................................................................4
Content.................................................................................................................................................4
Scope....................................................................................................................................................4
History of the company........................................................................................................................4
Mission Statement................................................................................................................................4
Vision Statement..................................................................................................................................4
Success story of brand.........................................................................................................................4
Is the campaign working? If so why?..................................................................................................5
Part 2 Report............................................................................................................................................6
Introduction..........................................................................................................................................6
PepsiCo Waterstewardship Campaign.................................................................................................6
Advertisement Tools............................................................................................................................6
Conclusion...........................................................................................................................................8
Reference List..........................................................................................................................................9

Part 1 Power Point Presentation
Content
This presentation explains the advertising techniques used by the PepsiCo. The details of the
PepsiCo brand have been explained here.
Scope
The scope of this presentation is for the newly launched companies that are trying to select
the appropriate advertising strategy for their products.
History of the company
PepsiCo is an America based multinational company having the headquarter located at
Harrison better known as Hamlet of Purchase, New York. This company specializes in food
and beverage items such as snacks and aerated drinks. The food items marketed by PepsiCo
are grain based. PepsiCo is the result of a successful joint venture between Pepsi Cola
Company and Frito Lay. In course of time, PepsiCo acquired Tropicana Products and Quaker
Oats Company. In the latest financial year, the company earned a total revenue of worth
64.66 billion dollar. Some of the well-known subsidiaries of this company are Doritos, Lay’s,
Mirinda, Mountain Dew, Aquafina and many others (pepsico.com, 2019).
Mission Statement
The mission statement of PepsiCo is to create more smiles with every sip and every bite
(pepsico.com, 2019).
Vision Statement
The vision statement of PepsiCo is to emerge as the global leader in the convenient food
items and beverages by winning with purpose(pepsico.com, 2019).
Success story of brand
Video Advertisement
PepsiCo firmly believes in creating creative advertisements that aims to get connected with
the customers. It is observed that when advertisements are presented in regional languages,
people feel more connected to them. In addition to this, when the advertisements feature
movie actors and actresses, it becomes all the more attractive and thus people tend to watch
them intently. These are some of the advertisement tactics, that established brands such as

PepsiCo follows to increase the volume of their customer base by attracting the potential
customers(Kitchen, 2017:400).
Social Media
In the new age of advertisement, it is essential that the brands create new and innovative
advertisements for their customers. One of the latest platforms that serves as an effective
platform of digital advertisements is the social media platform(Chaudhary et al. 2017:632).
As compared to all other platforms, this particular platform has more audience. This is
because this is common platform, where individuals irrespective of their demographic
background. Thus, for any popular brands such as PepsiCo, this social media platform serves
as the best platform for advertisement. In addition to this, social media is one of the most
digitally advanced platforms(Ali & Allan, 2017:100). Thus, the brands are able to use such
innovative digital technologies to format their advertisements and present to their audience.
Newspaper Advert
The newspaper advertisements are considered to be one of the most traditional way of
advertising by the PepsiCo. The medium of newspaper is one of the most popular medium as
people tend to refer the newspaper in order to get all the updates around the world.
Direct marketing and other promotional discounts
Nowadays, it is found that popular brands such as PepsiCo have started involving themselves
in direct marketing without the involvement of any third party. This includes the street
campaigning. In such events, the company tends to arrange some special eventsto attract the
pedestrians and subsequently involving them in the advertisement procedure. In addition to
this PepsiCo attempts to use some promotional discounts such as special offers for their loyal
customers.
Is the campaign working? If so why?
The campaign arranged by PepsiCo is definitely working with their customers. This is
because, the campaigns have been successful enough to get connected with the people.

Part 2 Report
Introduction
The advertising of the products of a business helps the company to earn the maximum profits
possible. This profit earning by advertising is impacted by the innovative advertisements
(Kuang-Jung et al. 2015:2). The advertisements are the medium by which, the company
delivers their product details to the customers. This part has catered SOSTAC development
based on chosen business.
PepsiCo Water stewardship Campaign
One of the most important raw material used by PepsiCo for the production of its beverage is
the water. This fact has led PepsiCo to declare water as the basic human right. On the other
hand, PepsiCo is considered to be one of the few companies that has tried to give the
maximum possible effort for the purpose of conserving water. PepsiCo has adopted the
strategy of Performance with Purpose (PwP). This strategy is ideal for the purpose of water
conservation. PepsiCo also have farming based products such as cereal based snacks. It has
been also observed that 70% of the world’s fresh water is spent behind the farming purpose.
Thus, PepsiCo has resolved to conserve water as much as possible in the farming works. This
is because it is essential to apply water use efficiency in the agricultural operations. In this
regard, PepsiCo had been utilizing the initiate in the global basis known as the Sustainable
Farming Program (SFP). This initiative by PepsiCo has been used worldwide and the
company had been interacting with the farmers living worldwide with the help of this
particular initiative(Đokić, 2018:990). This initiative is also powered by the local
partnerships increase the efficiency of the farming process worldwide. In fact, such water
conservation technique has been successfully reducing the wastage of water footprints as well
as carbon. It is reported that between the year 2011 and 2016, PepsiCo is successful in
reducing the water footprints and the carbon in the potato supply chain situated in United
Kingdom. Another aim of PepsiCo in this regard is the contribution towards Positive Water
Impact. This ensures long term and sustainable water security.
Such an initiative of PepsiCo has been adopted by a large number of companies such as The
NatureConservancy and the World Wildlife Fund in order to align with a number of UN
Sustainable Development goals(Place et al. 2016:30).

Advertisement Tools
Situational Analysis: This situational analysis is ideal when brands such as PepsiCo has
production units located in different parts of the world. The water content is not equal in all
parts of the world. Thus, for the areas having a reduced water supply, it is essential that the
water in that region is conserved as much as possible. This is achieved by the replenishing if
the water content and many others. In fact, it has been observed that by the deployment of
initiative such as Water use efficiency rate per unit(Al Khattab et al. 2015:538). With every
passing year this rate of conservation is increasing which is proving to be a good sign.
Objective:The objective of this water stewardship initiative is the returning the equivalent
amount of water consumed for the purpose of production to the nature. This includes
replenishing of the lost water content in the water shed. This essential for the companies such
as PepsiCo because this water is their main raw material for the beverage business(Shamout,
2016:80). Thus, it implies that water is the main driving force behind the continuation of the
business.
Strategy:The strategy is employed for the fulfilment of the objectives. The objective includes
providing access to safe water by the 25 million people worldwide. This especially relevant
in places where there is constant shortage of water. Thus, for the fulfilment of this objective,
PepsiCo has taken help from the local NGOs. This collaboration with the NGO provides the
transformative opportunity for the brand. This collaboration also ensures large chances of
water availability in the water draught areas. This had led to sustainable water access to local
communities.
Tactics:For the fulfilment of the water conservationstrategy,it is required that the exact
amount of water consumed be calculated beforehand.This is because, such calculation will
provide the target amount of water to be replenished to PepsiCo. Based on this calculation,
PepsiCo will be able to proceed with the replenish mechanism.
Action:This initiative of PepsiCo has been beneficial for the high-water risk countries such
as India. In fact, off late, PepsiCo is trying to redouble its effort for the goal of replenishment
in the form of Performance with Purpose (PwP) by the end of the year 2025(Oluwafemi &
Adebiyi, 2018:110). In such cases, PepsiCo has partnered with the local communities to
address the water shortage problem properly.
Control:Brands such as PepsiCo aims to maintain a high standard in its work. This is
reflected even in the case of water conservation initiative. But this is not always possible as

there are many constraints in its pathway. In case of the initiative brought by the PepsiCo,
there is a clear evidence of this. There are countries, where there is a high percentage of
waste water as compared to the available quantity of fresh water. In such scenario, it is
difficult to conserve the water. In fact, apart from the challenge of water conservation, it is
even difficult to stop the wastage of fresh water by the waste water. Such scenarios are
handled by the limiting of the wasteful water discharge from the production unit end.
Conclusion
Thus, it can be concluded from the above case study that the advertisement campaign of a
company defines the profit margin of the company for its products. It is recommended that
newly launched brands can follow the example PepsiCo for their advertisement campaign.
These brands can take ideas by following the campaigns arranged by PepsiCo to understand
the advertisement strategy adopted by PepsiCo.

Reference List
Al Khattab, S. A., As’ad, H., &Zaidan, G. M. (2015). E-Integrated Marketing
Communication and its impact on customers’ attitudes. American Journal of Industrial and
Business Management, 5(08), 538.
Ali, N. N. H., & Allan, M. (2017). The Role of Integrated Marketing Communications in
Increasing the Efficiency of Internet-based Marketing among Jordanian Consumers.
International Journal of Marketing Studies, 9(4), 97-110.
Chaudhary, A. H., Khan, M. A., & Ali, R. A. (2017). Effect of Integrated Marketing
Communications on Consumer Buying Decision of Internet Service (An Empirical Study of
Mobilink in Multan City). Journal of Research in Marketing, 8(1), 630-635.
Đokić, I. (2018). Economic effects of integrated marketing communications: The case of
food products. Ekonomikapoljoprivrede, 65(3), 985-994.
Kitchen, P. J. (2017). Integrated marketing communications. Evolution, current status, future
developments. European Journal of Marketing, 51(3), 394-405.
Kuang-Jung, C., Mei-Liang, C., Chu-Mei, L., &Chien-Jung, H. (2015). Integrated marketing
communication, collaborative marketing, and global brand building in Taiwan. International
Journal of Organizational Innovation, 7(4).
Oluwafemi, O. J., & Adebiyi, S. O. (2018). CUSTOMER LOYALTY AND INTEGRATED
MARKETING COMMUNICATIONS AMONG SUBSCRIBERS OF
TELECOMMUNICATION FIRMS IN LAGOS METROPOLIS, NIGERIA. Journal of
Competitiveness, 10(3), 101-118.
pepsico.com. 2019. about-the-company Available at https://www.pepsico.com/about/about-
the-company [Accessed on 01/03/2019]
pepsico.com. 2019. Available at https://www.pepsico.com/about/mission-and-vision
[Accessed on 01/03/2019]
Place, K. R., Smith, B. G., & Lee, H. (2016). Integrated Influence? Exploring public relations
power in integrated marketing communication. Public Relations Journal, 10(1), 1-35.
Shamout, M. D. (2016). The impact of promotional tools on consumer buying behavior in
retail market. International Journal of Business and Social Science, 7(1), 75-85.