Pepsi Marketing Mix and 4Ps

Introduction: Pepsico / Pepsi

• Pepsi

  • Type: Cola
  • Introduced: 1893 as Brad's Drink
  • Manufacturer: PepsiCo

• Pepsico

  • Origin Country: USA
  • Founded: 1898
  • Founder: Caleb Bradham
  • Headquarters: New York, USA
  • Employees in 2023: 309,000
  • Annual Revenue in 2023: $79.470 billion USD
  • Net Income in 2023: $7.610 billion USD
  • Market Value in 2023: $240.690 billion USD
  • Market Cap in 2023: $216.150 billion USD

• Formed by merger of Frito-Lay Inc. and Pepsi-Cola Company in 1965.

• 2nd most significant company in food and beverage sector.

• Distributes products like soft drinks, juices, bottled water, snacks, etc.

• Leading soft drink brand based on market revenue.

Pepsi Product Strategy

• Competes primarily with Coca-Cola.
• Targets younger, health-conscious consumers.

Product Mix (2023)

1. Carbonated Soft Drinks
   • Pepsi, Diet Pepsi, Pepsi Zero Sugar, Pepsi Wild Cherry.
2. Non-Carbonated Beverages
   • Lipton Iced Teas, Gatorade, Tropicana, Aquafina.
3. Energy Drinks
   • Mountain Dew Game Fuel, Rockstar Energy.
4. Snack Foods
   • Lays, Doritos, Cheetos, Fritos, Ruffles.
5. Healthy Snacks and Foods
   • Quaker Oats, whole grain snacks.
6. Dairy Products
   • Yogurt, milk-based drinks.
7. Convenience Foods
   • Pasta, rice dishes, ready-to-eat meals.

• Product diversification strategy beyond soft drinks.

Pepsi Place Strategy

• Presence in 200+ countries, both urban and rural.
• 36 bottling plants.

Distribution Methods

1. Global Retail Distribution
   • Supermarkets, convenience stores, vending machines.
2. Online and E-commerce Platforms
   • Expanded presence for online purchases.
3. Restaurants and Foodservice Venues
   • Partnerships with restaurants, fast food chains.
4. Strategic Location Marketing
   • Tailored offerings and promotions by region.
5. Direct-to-Consumer Channels
   • Subscription services or brand-specific websites.

Pepsi Pricing Strategy

• Emphasis on bulk sales for profitability.

Key Pricing Approaches

1. Competitive Pricing
   • Priced competitively with Coca-Cola.
2. Psychological Pricing
   • Pricing strategies like $1.99 instead of $2.00.
3. Promotional and Discount Pricing
   • Discounts, bundle offers, seasonal sales.
4. Geographic Pricing Strategy
   • Adjusts prices based on local factors.
5. Product Line Pricing
   • Different pricing for flavors like Pepsi Zero Sugar.
6. Dynamic Pricing
   • Adjusts according to market conditions.

Pepsi Promotional Strategy

• Image: Drink for trendy, health-conscious people.

Promotional Tools

1. Traditional Media
   • TV, radio, newspapers, billboards.
2. Celebrity Endorsements and Brand Ambassadors
   • Influencers like Cindy Crawford, Britney Spears, Michael Jackson.
3. Sponsorships
   • Sporting events like NFL, UEFA Champions League.
4. Social Media Platforms
   • Facebook, Twitter, Instagram for engagement.

Notable Campaigns

• The Choice of a New Generation (1984)

  • Featured Michael Jackson, notable sales increase.

• Joy of Pepsi

  • Boosted brand image.

• New Can 1992

  • Featured Cindy Crawford, became popular quickly.

• Use of digital marketing and social media for modern campaigns.