MARKETING

STATERGIES OF
PEPSICO
Subject- Marketing Management
Roll No-19010
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 PEPSICO ALSO KNOWN AS PEPSI IS ONE OF THE LEADING
COMPANIES IN THE WORLD THAT DEALS IN THE FOOD AND
BEVERAGE SECTOR.
PEPSI SERVES ITS PRODUCT IN AROUND 200 COUNTRIES
AND TERRITORIES ALL OVER THE WORLD. THE COMPANY
PEPSICO WAS FORMED BY DONALD KENDALL, THE CEO OF
PEPSI-COLA AND HERMAN LAY, THE CEO OF FRITO-LAY IN 1965.
RAMON LAGUARTA IS CURRENT CEO OF PEPSICO.
PEPSI

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MARKETING STATERGY

• Differentiation Strategy- Pepsi differentiate himself on the basis of its sweeter taste. Pepsi Ads
reflect the social, cultural values of India and main Stream Celebrities of India are used for
promotions so it is USP of Pepsi.
• Price statergy-

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PRODUCT
• Its portfolio includes 23 brands and these brands come under four broad
categories i.e. global brands, good-for-you brands, fun-for-you brands, and
better-for-you brands
• PepsiCo in India is mainly present in two that is food and beverage.
• Food Products-
• Breakfast- Quaker Oats
• Snacks- Lays, Kurkure, Cheetos, Uncle Chips, Lehar
• Beverages-
• Mineral Bottled Water- Aquafina
• Sports Drink- Gatorade
• Soft Drinks- Pepsi, Slice, Miranda , Duke’s, Mountain Due, 7up,, Tropicana
•
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PRICE
• The pricing of Pepsi is competitive as the market is dominated by two big companies that are Pepsi and Coca-Cola. if both the
brands start a price war neither of them can win as manufacturing and transportation cost is huge. Due to this, both the brand can
enter a brand war instead of a price war
• It is a company that is known for providing discounts on buying bulk quantities or for its promotion. As the container size rises the
discount for customers also rises. This means a 2-litre bottle packing of Pepsi as compared to 250ml packing will be cheaper per
100ml.
• The company also provides a good discount to its distributors depending on the order quantity and also payment method. If a
distributor orders a huge quantity and the payment method is also in the way the company wants, they are provided with a huge
discount, which keeps them motivated.
• The profit margin of Pepsi is good from distributors but the company has to drop its price for some well-known bulk buyers and
retailers. For example, Indian retailers like Big Bazaar, Dmart, Reliance Fresh are bulk buyers of the company as they buy in bulk
and sell at a discounted price which results in huge sales. Similarly, some of the well-known food chains are also bulk buyers of the
company such as KFC and Mcdonalds.
• These retailer and food chain brands negotiate with the company for the price as they buy and sell in bulk. Although companies earn
a good margin through distributors and less margin from bulk buyers, companies prefer providing goods to bulk buyers as they order
huge amounts of goods as compared to distributors.

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PLACE
• Pepsi has a huge distribution network in India as it distributes in almost every corner of the country. The initial mode of
distribution of Pepsi is mainly through distributors who provide it to marketers. The other mode of distribution is directly
from the company to bulk buyers and other big retailers who buy directly from the company.
• The distribution chain of Pepsi is:-
• Primary Mode-
• Company – Distributors – Small Retailers / Small Buyers – End Customer
• Secondary Mode-
• Company – Bulk Buyers – End Customers
• As there are no middlemen available in the secondary mode of distribution, the company can save its middleman cost and
can provide a good margin to bulk buyers. The major challenge that the company faces in distribution is the cost of
bottling and the cost of transportation.
• Bottling of Pepsi is done only at the bottling plants. At present, there are 36 bottling plants of Pepsi in India out of which
only 13 are franchisees and the rest 23 bottling plants are owned by the company itself. The soft drinks now have their tie-
up with snacks like Lays, Kurkure, Bingo etc…

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PROMOTION
• Promotion is one of the strongest reasons that Pepsi retains its brand image. The company considers youngsters as its main
target audience and they target them through various Brand Ambassadors. In India company choose Celebrities and
Sportspeople to be their Brand Ambassadors as the youth is more into Celebrities and Sports.
• Some of the Celebrities and Sportspersons who have been Brand Ambassadors of Pepsi are M.S.Dhoni, Sachin Tendulkar,
Amitabh Bachchan, Ranbir Kapoor, and many others.
• In US, PepsiCo implements a wide variety of promotional strategies to reach out to the target customers. It carries out
advertising campaigns on TV, social media, radio, print media and other outlets. Its celebrity endorsement started with
Michael Jackson, and this tradition included celebrities such as Kendall Jenner, Madonna, Beyonce and many others.

• Pepsi targets almost every age group with its different products and taglines. For example Mountain Due targets
youngsters from its tagline that is related to an adventure sportSportspeople “Darr Ke Aage Jeet H”, Kurkure is known
as a household snack and targets middle-aged group whereas Lays advertise itself as a party snack and targets youngsters,
Gatorade is sports drink so it targets all the sportsperson. A recently launched product Quaker Oats targets itself as a
breakfast with a bit of masala.
• Apart from its marketing mix strategies company has also changed and developed its logo over the years

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 MARKETING
STRATEGIES WE CAN • Position yourself well.
LEARN FROM PEPSI
• Invest in the right channels
• Focus on digital marketing.
• Choose good sponsorships.
• Be innovative.
 CONCLUSION –
WITH THESE 4 P’S THE MARKETING MIX STRATEGY OF PEPSI COMES TO
AN END. FROM THIS 4 P’S STRATEGY OF PEPSI, IT IS CLEAR THAT PEPSI IS
A WELL-ESTABLISHED COMPANY IN BOTH THE FOOD AND BEVERAGE
SEGMENT. THE COMPANY KEPT ON CHANGING ITSELF WITH THE TIME
AND ALSO CAME UP WITH NEW PRODUCTS AND BRANDS TO KEEP ITSELF
ESTABLISHED IN THE MARKET. PEPSI PRODUCTS ARE AVAILABLE IN
EVERY CORNER OF INDIA AND CAN BE CONSUMED BY EVERYONE WHICH
MAKES IT A LEADING COMPANY IN ITS SECTOR. THE COMPANY ALSO
USED ALL THE AVAILABLE TECHNIQUES FOR ITS PROMOTION.