Pepsi- Cola: Marketing Strategy
PEPSI cola accounts for nearly one-third of the total soft drinks sales in the USA a consumer market totaling about $ 60 Billion. This places PEPSI cola second to COKE-cola. Hence in order to increase its market share and inevitable take the premier position, PEPSI cola came up with an extensive and comprehensible mission which is, ‘To be the world’s premier consumer products company focused on convenience foods and beverages.’
In terms of the overall strategy, PEPSI cola pursues a Product Differentiation by ‘youth and young at heart.’ Analysis reveals a systematic and consistent growth in PEPSI cola advertising strategy termed as ‘Generational Advertising,’ from them, “You’ve got a lot live, Pepsi’s got a lot to give,” to the theme “Think young, Drink Pepsi,” to the “ Joy of Pepsi.” This strategy of ‘Youth and Lifestyle’ is the campaign’s driving forces, as they create awareness and a reflection of contemporary events and mood.
Other than the advertising strategy, PEPSI cola has concentrated its resourced on growing its businesses through internal growth and carefully selected acquisitions. This reflects PEPSI cola’s continued commitment to growth and a focus on those businesses where PEPSI cola can drive its own growth and create new opportunities. These new brands include Pepsi Blue, Pepsi One, Pepsi Twist, this differentiation satisfies the various segments in the market and as well as keep consumers excited and focused on the Pepsi brand. PEPSI cola has positioned itself by mainly targeting a younger less-cohesive generation among fast-growing ethnic populations.
In terms of the Marketing Mix, PEPSI cola has done the following;
- Product- PEPSI cola has created a wide range of products including Pepsi Twist, Diet, Lemon Flavored, Pepsi Blue
- Price- PEPSI cola has kept the prices fairly low than those of COKE-cola
- Promotion- PEPSI cola has been involved in celebrity campaigns as well as online marketing including the com promotion
- Place- since 1982 PEPSI cola conducted a structured program of purchasing quality products and services from suppliers who are designated as Minority/ Women Business Enterprises (M/WBE’s). This has steadily increased business with minorities and women-owned firms.
This Market-Orientation is to attract hard-to-reach demographic groups, which are viewed as the fastest growing ethnic populations around the USA and outside the USA.
In terms of Marketing Research, PEPSI cola has used Concept Tests, Market Tests as well as Online Survey to establish and affirm its Target Market. The result is the discovery of a Multi-cultural diverse market, this is because the market has splintered and big-universal brands no longer have any appeal. As a result, PEPSI cola has invested immensely into its Urban and Ethnic marketing division by targeting ethnic trendsetters.
In conclusion, one if the biggest factors in the long-term success of a consumer products company are whether more people fall in love with your products every year. PEPSI cola strives to give people what they want, when and where they want it. To PEPSI cola, doing that very well is more important than anything else as this will has already gone a long way in PEPSI cola winning the first multicultural awards competition held by the Association of National Advertisers. This roaring success of PEPSI cola has been as a result of superior products, high standards of performance, distinctive competitive strategies and a high level of integrity of our people. However, it is important to remember that the overriding objective is to increase the value of its shareholders’ investment through integrated operating, investing and financing activities.
Kotler, Phillip. A Framework for Marketing Management. Prentice Hall. USA 2001.
Thomas L. Greenbaum, The Handbook for Focus Group Research (New York: Lexington Books, 1993)
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