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Pepsi&co Marketing Management

PepsiCo is an American multinational food and beverage corporation headquartered in New York. It was formed in 1965 through the merger of Pepsi-Cola Company and Frito-Lay. PepsiCo owns popular brands like Pepsi, Lay's, Gatorade, Quaker Oats, and Tropicana. The company uses various marketing strategies like advertising, sales promotions, direct marketing and public relations to promote its brands. It also focuses on innovation, pricing competitively, and distributing products through various channels. Going forward, PepsiCo aims to make its products more sustainable and healthy.

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Shivangi Asthana
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0% found this document useful (0 votes)
237 views19 pages

Pepsi&co Marketing Management

PepsiCo is an American multinational food and beverage corporation headquartered in New York. It was formed in 1965 through the merger of Pepsi-Cola Company and Frito-Lay. PepsiCo owns popular brands like Pepsi, Lay's, Gatorade, Quaker Oats, and Tropicana. The company uses various marketing strategies like advertising, sales promotions, direct marketing and public relations to promote its brands. It also focuses on innovation, pricing competitively, and distributing products through various channels. Going forward, PepsiCo aims to make its products more sustainable and healthy.

Uploaded by

Shivangi Asthana
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© © All Rights Reserved
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Shri Vaishnav Vidyapeeth Vishwavidyalaya

Institute of Management ,Indore


Session 2021 – 2023
Semester Assignment (MBA 1st semester )
Group Presentation
Subject : - Marketing Management
Company :- Pepsi&co

Group Members :- Guided by :-


Aditya Jhade Dr Monica Sainy
Rahul Singh Khinchi
Shivangi Asthana
Monika Malviya
Deeksha Pingle
Introduction
• PepsiCo, Inc. (commonly known as the Pepsi Company) is an
American multinational food, snack, and beverage corporation
headquartered in Harrison, New York, in the hamlet of Purchase.
PepsiCo's business encompasses all aspects of the food and beverage
market. It oversees the manufacturing, distribution, and marketing of
its products.
1. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola
Company and Frito-Lay, Inc.

2. PepsiCo has since expanded from its namesake product Pepsi Cola to
an immensely diversified range of food and beverage brands.

3. The largest and most recent acquisition was Pioneer Foods in 2020
for $1.7bn and before that it was the Quaker Oats Company in 2001,
which added the Gatorade brand to the Pepsi portfolio and Tropicana
Products in 1998.
The structure of PepsiCo's global operations has shifted multiple times
in its history as a result of international expansion, and as of December
2021 it is separated into seven main divisions:

1. PepsiCo Beverages North America (PBNA),


2. Frito-Lay North America (FLNA),
3. Quaker Foods North America (QFNA), Latin America, Europe
4. Africa, Middle East, South Asia (AMESA) and
5. Asia Pacific, Australia/New Zealand, China (APAC)

As of 2015, 73 percent of the company's net revenues came from


North and South America; 17 percent from Europe and Sub-Saharan
Africa; and 10 percent from Asia, the Middle East, and Africa. PepsiCo
and its combined subsidiaries employed approximately 263,000 people
worldwide as of December 2015.
Product range
• The Product range of PepsiCo falls into three main categories which
are drinks, beverages, food .
• From brands such as Pepsi, Mirinda, Mountain Dew, 7UP, Uncle Chips,
Quaker and Tropicana, to India's favorite crisp, Lays and Kurkure,
these brands are what makes PepsiCo
PepsiCo's product mix as of 2015 (based
on worldwide net revenue) consists of 53
percent foods, and 47 percent
beverages. On a worldwide basis, the
company's current products lines include
several hundred brands that in 2009
were estimated to have generated
approximately $108 billion in cumulative
annual retail sales.
PepsiCo competitors
a. Britvic:- Britvic is a company that manufactures, markets, and sells branded
still and carbonated soft drinks.
b. The Coca-Cola Company
c. Conagra Brands:- Is a food company that produces and distributes packaged
and frozen food.
d. Kellogg is a company manufacturing and marketing ready-to-eat cereal and
convenience foods
e. Red Bull
f. Nestle
g. Monster Beverage
h. Keurig Dr Pepper is a beverage company in with a diverse portfolio of flavored
soft drinks, including water, ready-to-drink tea and coffee, juice, juice drinks,
mixers, and specialty coffee.
Innovation strategy
• PepsiCo, innovation is about harnessing the latest trends and lifestyle
shifts to develop new products, experiences, and tastes that reflect
what consumers want today.
• For example
Product Distribution
• Three distribution channels of PepsiCo
i. Direct store delivery: Under the DSD framework, PepsiCo conveys
items straightforwardly to retail locations. Of the three channels,
DSD empowers PepsiCo to stock with greatest perceivability.
ii. Customer Warehouse: The client stockroom framework is a less
costly distribution channel. It’s optimal for items that are less
delicate and perishable, have lower turnover, and are not acquired
imprudently.
iii. Third-party distributor systems: PepsiCo appropriates nourishment
and drink items to eateries, organizations, schools, and stadiums
through outsider sustenance administration and distributing
merchants and administrators.
1. Pepsi has a tremendous circulation
system in India and China.

2. It must be vast on the grounds that the


brand should be available in each niche
and corner of the nation to build its deals.

3. The essential method of circulation is


through merchants who thus offer it to
retailers, eateries, and accommodation
stores.
Pricing strategy
• PepsiCo’s prices are considerably varied because the company has a
wide product mix, which means that it has a large number of product
lines and brands. Approaches used to set prices are analyzed in this
element of the marketing mix. PepsiCo’s main pricing strategies are as
follows:

1. Market-oriented pricing strategy


2. Hybrid Everyday Value pricing strategy
1. Market-oriented pricing strategy: Most of PepsiCo’s products are
priced based on the market-oriented pricing strategy. The company’s
objective in using this strategy is to ensure that its prices are
competitive, based on other firms’ prices and prevailing market
conditions

2. Hybrid Everyday Value pricing strategy: Hybrid Everyday Value is


PepsiCo’s pricing strategy for some of its products, especially soft
drinks. The company’s objective in using this pricing strategy is to close
the gap between regular/everyday prices and discounted holiday
prices. In this way, PepsiCo expects consumers to buy more of its soft
drinks everyday and not just during the holidays.
Promotion strategy
• A promotional strategy is an actionable plan to influence people
about your business , generate more leads , and boost customer
engagement. It visualizes how to perform your marketing strategy and
communication , who to target as your audience , and where and
when to execute the promotion plan .
• Pepsi promotional strategy has provided us with a number of hits and
misses over the year . Promotions covers the marketing
communications strategies and tactics that the company uses to reach
its customers .
Promotional strategies of PEPSICO
• Advertising : Advertising is PEPSICO primary tactic for marketing
communications . The advertising is mostly creative and has different
elements like music and sports other than Bollywood . The company is
popularly known for using celebrity endorses to promote its product on
television , radio , print media and online media .

• Sales promotions : Sales promotion is define as an activity taken up to


boost the sales of a product . Sales promotion includes those activities
that supplement both personal selling and advertising and coordinate
them effective such as display , shows , demonstrations and other non
recurrent selling efforts not in the ordinary routine .
• Direct marketing : The communication establishes through a direct
channel without using any intermediaries is referred to as direct
marketing .direct marketing can be used to deliver messages or
service and also reduces cost of companies . Face to face marketing ,
direct mail , telemarketing are media for direct marketing .
• Public relations : One of the best promotion techniques is public
relations which refers to developing a positive brand image in the
media . It’s a way to connect with your target audience by sharing
favorable information about your business .
Recommendation
• Creating new brands that provide healthy snacks or beverages,
• Making their existing products more healthy. Overall, this focus will
give PepsiCo an edge in an environment where unhealthy snacks and
beverages are starting to become less and less profitable every day.
Campaigns of PepsiCo
• PepsiCo India Flags Off Tidy Trails, A Special Plastic Waste
Management Initiative In Mathura Vrindavan, Uttar Pradesh
• Quaker provides over 1 lakh oatmeal's to the healthcare community
across 7 states. Quaker teams up with leading non-profit organization,
Smile Foundation, to provide Quaker Oats to doctors, nurses, and
healthcare professionals
• PepsiCo India and Alternative Development Initiatives (ADI) joins
hands to launch rejuvenated wastewater pond in Sangrur, Punjab
Future Plans
• Looking to the future, PepsiCo has many opportunities to improve
themselves.
• PepsiCo announced new goals to cut virgin plastic per serving by 50%
across its global food and beverage portfolio by 2030, using 50%
recycled content in its plastic packaging and scaling the SodaStream
business globally, an innovative platform that almost entirely
eliminates the need for beverage packaging, among others levers
THANK YOU

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