Pepsi Marketing Strategy Case Study Sample

Headquartered in Harrison, (New York) Pepsi is a multinational beverage, snack, and food conglomerate. It is known for distribution marketing, and manufacturing beverages, snacks, and other products. By 2014, 22 of Pepsi’s retail brands generated above $11 million. The brand exported products across 200 countries that generated about $43.3 million.

Based on the net revenue generated by the company, Pepsi is the second-largest beverage and food company after Nestle. Within North America, it is the largest food business with regards to the total revenue generated. 

Caleb Bradham, a businessman, and pharmacist from North Carolina established the Pepsi-Cola company in 1902. Megargel and Charles Guth bought the business, the trademark of the business in 1931. 

Vision of Pepsi

• Pepsi’s vision is to deliver top-notch performance in the long haul by integrating sustainability into business strategy, leaving a positive impression on the environment and society. Pepsi adds that the vision statement relies on the philosophy of performance with purpose.
• The vision statement of Pepsi indicates that the company integrates sustainability in business endeavors. It emphasizes high financial performance as one of the aspects of the company’s vision statement.
• Corporate social responsibility has a major influence on the strategies of the company, especially its impact on shareholders. 

Mission of Pepsi

• The mission statement implies that the company aims to provide consumers with complementary and convenient, affordable, and delicious food items. It varies from wholesome breakfast to fun beverages, snacks to evening treats.
• It also states that the company is committed to serving its customers, company and committed where it operates. 

Strength

• It is one of the prominent and renowned brands in the beverage and food industry.
• It has an estimated worth of $ 19.4 million
• As per the Forbes magazine, Pepsi ranks among the 29 top companies in the world. 
• Pepsi works with 22 brands like Pepsi Max, Diet Pepsi, Fritos.

Weakness

• Packaged food and soft carbonated drinks undermine the company’s adaptability in case of a downturn in that segment. 
• Failed products like Pepsi Blue and Crystal Pepsi demoralized the company’s staff. 

Wrong remarks of brand ambassadors might affect the company’s standing. 

Opportunity

• The company needs to exploit the benefits of online shopping, expanding its e-commerce channels, and grow sales through this media. 
• The company has adequate resources that it can invest in manufacturing, R&D process, thereby gaining a competitive edge.
• The economic situation in the markets of South America, Africa, and Asia improved with time. The company can make use of these opportunities to tap a new customer base, and increase sales. 

Threats

• The profitability and market share of Pepsi get threatened by stiff competition from companies like Nestle, Unilever, and Coca-cola. 
• Pepsi can lose out on its competitive advantage if they adopt cutting-edge technological assistance.

Organizational Structure 

Market-division

Market division is one of the prominent features of the organizational structure of Pepsi. This sort of corporate structure depends on two variables. One is geography, the other is business. 

In terms of geography, Pepsi has separate divisions for Europe and America. Furthermore, Pepsi has one global division for uaker Food and Frito-Lay.

Functional Groups 

Pepsi has multiple functional groups to keep up with the organizational control, and immediate implementation of policies and strategies. Each group gets led by a senior vice president. These are the functional corporate groups at Pepsi.

• Global R&D
• Global Operations and categories
• Finance
• Resources

Marketing Mix

Marketing Mix includes five variables that the management team has to look after and control so that it can improve the customer experience. Those variables are also known as the 4 Ps of marketing that includes Price, Product, Place, Promotion, and People.

Customer 

Retail buyers and resellers are the main customers, purchasing goods from Pepsi. distributors, e-commerce retailers, grocery stores, Pops & moms outlets are the buyers of Pepsi products. Individuals of all age groups form the retail segment buyers of Pepsi. 

Place

Pepsi has an extensive distribution network in India. Brands need to make their products available in all the areas within a country. Company products get distributed through distributors that export items to restaurants, retailers, and fast-service stores. 

However, the company distributes products directly to bulk customers. Here, the brand can provide products at comparatively low rates. 

The brand has about 36 manufacturing plants, out of which 23 are owned by the company and 13 plants are owned by franchisees. 

Digital Marketing Strategy in Marketing Mix 

Pepsi makes use of all media to promote its products. Apart from ATL, it also uses BTL media. Packaging and discounts are aimed at providing the customers with the best combination and value to increase sales and improve brand image. 

Competitive analysis of Pepsi

Mondelez, Nestle, and Coca-Cola are non-alcoholic beverage companies that follow similar marketing strategies. To bring out changes in the products served, and retain customers, it needs to focus on brand-building activities. 

Competitive Advantage of Pepsi 

• Outsourcing business activities, extensive product portfolio, and scaling expenses helped the company to lessen operational expenses, and boost its productivity.
• Participative Marketing Strategies helped the company to meet the varying needs of consumers, and segment potential clients with diverse economies. 

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