Pepsi Marketing Strategy: How the Brand Stays Ahead of the Competition

Introduction

• PepsiCo: A global phenomenon in the food and beverage industry.
• Founded: 1893 by Caleb Bradham as "Brad's Drink".
• Renamed: Pepsi-Cola in 1898. Became a competitor to Coca-Cola.
• PepsiCo Formation: 1965, conglomerate with a range of products.
• Revenue: Over $70 billion in 2020.

Marketing Strategy Overview

• Objective: Create a strong emotional connection with consumers.
• Target Audience: Diverse, focus on youthful, vibrant demographics.
• Brand Personality: Fun, youthful, aspirational image.

Marketing Mix Components

Product

• Variety: Classic, Diet Pepsi, Pepsi Max, Wild Cherry, and more.
• Innovation: Health-conscious options like Pepsi Zero Sugar.
• Diversity and Inclusion: Products for various tastes and preferences.

Price

• Competitive Pricing: Balances affordability with value.
• Promotional Pricing: Discounts and bundle offers drive sales.

Place

• Distribution: Supermarkets, stores, restaurants, vending machines.
• eCommerce: Embracing online platforms and delivery services.

Promotion

• Advertising: Celebrities and pop culture integration.
• Social Media: Active presence on Instagram, TikTok, and other platforms.
• Experiential Marketing: Events like Super Bowl Halftime Show.
• Sustainability Initiatives: Reducing plastic use by 35% by 2025.

Target Audience

• Age Focus: 15-35 years, but appeals to all ages.
• Lifestyle: Active, social lives, celebration moments.

Marketing Strategies

• Strong Brand Identity: Global fun and youthful image.
• Experiential Marketing: Pop-up experiences, interactive installations.
• Limited Edition Flavors: Collaborations with other brands.
• Celebrity Endorsements: Michael Jackson, Beyoncé, BTS.
• Sponsorships: Super Bowl, NBA, UEFA Champions League.
• Social Media Engagement: Extensive use on platforms like Instagram.

Greatest Advertising Campaigns

• Pepsi Zero Sugar Better With Pepsi: Highlight health-conscious choices.
• Michael Jackson Campaign: Targeted young adults.
• Super Bowl Halftime Show 2020: With Shakira & Jennifer Lopez.
• Pepsi That's What I Like Campaign: Emphasizing joy and refreshment.
• UEFA Champions League Partnership: Engaging global football fans.

Pepsi vs. Coca-Cola

• Portfolio: PepsiCo has a broader range including Gatorade, Tropicana.
• Marketing Approach: Pepsi targets youth, Coca-Cola has universal appeal.
• Brand Positioning: Pepsi as youthful and innovative, Coca-Cola as traditional.

Conclusion

• PepsiCo's Success: A blend of advertising, experiential marketing, and social media.
• Cultural Adaptation: Tailoring strategies to local preferences enhances reach and growth.

These notes provide an overview of Pepsi's marketing strategy, highlighting its approach to product diversity, pricing, promotion, distribution, and how it competes with its main rival, Coca-Cola.