Key Strategies of PepsiCo Inc.

Strategies of PepsiCo Inc.

PepsiCo is a brand that almost everyone has heard of. Pepsi and Frito Lay merged in 1965, and as a result, this leading soda beverage brand was created. PepsiCo prospered and has since expanded its business even further despite the economic recession, during which many soda brands encountered difficulties as a result of global industry shifts. Since its inception, PepsiCo’s products have been sold in more than 200 nations. Despite not being an expert, the founder had the right idea. The business experimented with variety. It distinguished itself as an inclusive business by acquiring numerous brands. Diverse strategies shaped PepsiCo’s rise to prominence, which are :

PepsiCo Inc. Mergers & Acquisitions

PepsiCo’s business strategy can be described as having mergers and acquisitions as one of its main pillars. PepsiCo’s portfolio now includes 22 brands, each of which has generated at least one billion USD in retail sales in 2015 as a result of aggressive pursuit of this strategy. Gaining access to competencies and infrastructure, lowering direct costs and overheads, and achieving organic growth are all advantages of mergers and acquisitions. The large number of food and beverage-related brands in PepsiCo’s portfolio is the company’s main strength. It manages to meet and exceed its forecasts thanks to its diverse portfolio, whereas other businesses struggle to meet their forecasts because of market uncertainty. The decrease in demand for soft drinks is offset by rising demand for its snacks like Lays and Doritos. Pepsi has greatly been able to expand its business and offer a variety of products to meet the needs of its diverse customer base through mergers and acquisitions.

Innovations

To remain top of mind, Pepsi also continues to invest in their products’ packaging and quality. For their health-conscious customers, they have also added more nutritious products to their product line. Their excellent marketing strategy is reflected in their diverse product portfolio, which includes a wide range of flavor options and delectable, nutritious options. As Pepsi continues to innovate, their packaging and quality merit special mention. Keeping their customers happy and attracting new ones at the same time has been made easier by regularly updating their designs. They do this because they are aware that offering more options and attractive packages can increase sales. Since people’s requirements fluctuate on a regular basis, Pepsi places a significant emphasis on adapting to those requirements.

Branding

Seven years after Coca-Cola, Pepsi was on the market, and by that time, they were already a powerful brand. Pepsi needed to create a distinctive brand image.They went through quite a few logos before settling on the one they have today, as history will show. This task was not easy. To catch the attention of their customers and portray themselves as the “new soda on the block”, Pepsi developed new slogans and jingles. “You’ve got a lot to live for” was their slogan. “Pepsi’s got a lot to give” gave the brand a new, young voice. Coca-Cola was subtly portrayed as an outdated brand by Pepsi’s snarky marketing strategy. Pepsico has successfully positioned both its brand and its products in the market. With 22 brands in its current portfolio, it offers healthy snacks and drinks in addition to its standard soda offerings. Pepsi has positioned itself as a brand that represents youthful energy, as evidenced by their advertising and marketing campaigns. The majority of Pepsi’s customers are between the ages of 13 and 35, coming from the lower middle class to the upper class and leading busy, modern lives. Because of this, their prices continue to be affordable for millennials from various social classes. In order to make their products more appealing to people who want a quick drink to quench their thirst and satisfy their cravings, they have even introduced smaller versions of soft drinks.

PepsiCo Inc. Sponsorships & Endorsements

Pepsi relies heavily on partnerships and sponsorships for brand awareness in addition to its promotional campaigns.They put a lot of money into sports marketing, partnering with various sports organizations around the world to promote themselves in important markets. Pepsi uses celebrity endorsements and company sponsorships to promote their product, which is no secret. In 1983, Michael Jackson was hired by Pepsi as their first celebrity endorser to star in their “New Generation” campaign. His status made the brand get a lot of attention and made the soda the drink of choice for a new, younger generation. Beyonce, Cindy Crawford, and Britney Spears, among others, would collaborate with PepsiCo in later years. In point of fact, Pepsi owns the exclusive rights to the Superbowl halftime show, which is watched by approximately 100 million people annually. They collaborated with the National Basketball Association (NBA) for instance in 2015. They collaborated with the Board of Control for Cricket in India in 2016.In addition, they promoted several of their brands through a second partnership with the UEFA Champions League in 2017.

Digital Marketing

Having a successful digital marketing strategy is just as crucial as connecting with customers online. Even though Pepsi still spends money on traditional advertising channels like television, a lot has changed over time. As digital technology continues to advance, Pepsi was prudent to increase investments in digital marketing.

Pepsi’s digital campaigns always make an impression on their target market, which is one reason why they continue to be remembered. Brands like Pepsi have begun to connect with their customers through real-time promotional campaigns ever since social media became a trend. They have been able to instantly connect with millions of people worldwide as a result of this. For instance, their 20-minute “Bring Home Happiness” campaign became so popular that more than a billion people watched it. As a result, despite the fact that Pepsi uses social media to connect with customers, the company also uses the platform’s power to run campaigns. In this day and age, building customer loyalty and engagement requires this. Because they are aware that negative feedback and news can quickly spread across social media and reach millions of people in a short period of time, they have also increased their focus on providing excellent customer service and product quality. In 2014, they developed their campaign titled “Bring Home Happiness”. A mini-movie, celebrity endorsements, and a charity program supported by interactive social media channels made up this campaign. Users were able to post family-themed videos on the popular Chinese social media platforms Weibo and WeChat. Users were encouraged to spend more time with their families over the holiday and document it on social media by the video campaign. Pepsi’s marketing strategy included this campaign, which put the brand in front of a large audience.Over 15 million social media videos were part of this campaign, which received 1.2 billion views.

Conclusion

There is, without a doubt, a lot of competition in today’s world, so it would be critical to continue experimenting and inventing over time. Pepsi excels at this by adapting their product offerings to meet the needs and financial constraints of each new generation while simultaneously expanding with the times. Pepsi’s beginnings can be seen. They have demonstrated their resilience throughout their struggle to establish themselves as a recognizable brand. Pepsi is now a multibillion-dollar business that has no intention of slowing down, despite a few setbacks. It has achieved success by focusing on branding, embracing endorsements, establishing a connection with its target market, and learning from its failures.