MKT101A - Marketing Fundamentals: PepsiCo's Marketing Mix Strategies

This presentation provides a detailed analysis of PepsiCo's marketing mix strategies. It begins with background information on PepsiCo, highlighting its history and market dominance. The presentation then delves into the product mix strategy, covering beverages like Diet Pepsi, Tropicana, and Gatorade. It also examines target market analysis, including segmentation strategies based on demographics and psychographics, focusing on young consumers. The presentation further discusses PepsiCo's positioning strategy, emphasizing its energizing cola drink image and differentiation from competitors. Pricing and promotional strategies, including the Pepsi Stuff promotion and partnerships with celebrities, are also explored. Additionally, the presentation covers placement strategies, including global market expansion, and physical evidence, such as sustainable packaging initiatives. Finally, the presentation discusses the importance of people and processes within PepsiCo's marketing efforts. Desklib offers a range of similar marketing assignments and study resources for students.

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.