Pepsi Cola Marketing Mix Essay Research Paper

Pepsi Cola Marketing Mix Essay, Research Paper

Pepsi Cola Marketing Mix

Pepsi Co., one of today s leading soft drink companies, has not only revolutionized the soft drink industry with its creative marketing techniques and unforgettable taste, but for years has dominated the snack food and juice industry as well. PepsiCo. is amongst the most successful consumer product companies in the world. The company consists of the Pepsi-Cola which is the world s second largest beverage company, Frito-Lay Company which is the world s largest manufacturer and distributor of snack chips, and Tropicana Products, Inc. which is the world s largest marketer and producer of branded juices. Pepsi Co. is proud to declare that its overall mission statement is: To increase the value of our shareholder s investment through sales growth, cost controls, and wise investments of resources. PepsiCo believes that commercial success depends upon offering quality and value to consumers and customers; providing products that our safe, wholesome, economically efficient, and environmentally sound while adhering to the highest standards of integrity.

PepsiCo s company objectives are based on one question: What exactly is it that enables the best consumer product companies to grow year in and year out. Market positioning is one of the most important aspects of PepsiCo success. It has been a leader and gaining market share in each of its core businesses and strives to continue in recognizing under-marketed target regions throughout the world to continually gain market share from its competitors. The second aspect of PepsiCo s objectives deals with continuing is strong well- recognized consumer brand name domestically and internationally. Third the company strives to recognize good growth prospects and opportunities for new and alternative product development within each of its core businesses. PepsiCo s fourth objective is to globally diversify its portfolio. Pepsi Cola brand beverages are now available in over 160 different countries, Frito-Lay operates in over 42 countries, and Tropicana has a presence in over fifty countries spanning over Europe, Asia, and South America. Finally, the last objective of PepsiCo is to be more productive and efficient through the competitive advantages of its product innovation capabilities, the company s streamlined patented manufacturing process, and the vast scale of the manufacturing and distribution system.

Right from the first half of the century, the business of selling Pepsi

motivated the company to reach out to a broad spectrum of the population,

tapping new and sometimes under-served markets and incorporating that wide

range of talent into the fabric of the company. The fact that PepsiCo has many different product lines and business ventures that incorporate its name creates many different target markets for each of its products. In focusing on the Pepsi-Cola beverage product, PepsiCo. has retained a long history of concentrating on youth as its main target market Generation Next! It has spent billions of dollars in trying to woo the young and nearly young, implying that Coca-Cola is for the older generation. The reason Pepsi-Cola has fiercely targeted this market is because it is the largest amongst its users. Market segment profiles have shown that the majority of carbonated beverage drinkers are youth and middle age people. Also, Pepsi continually targets the college market in which they spend huge amounts of money to compete with Coca Cola in acquiring contracts with universities (ie: CSUF) to have sole representation of their products distribution. Pepsi s use this behavioristic segmentation has been a key to the company s success.

Perhaps the most dramatic change at Pepsi is that these days, soda and

juice run a distant second to the big engine that now drives PepsiCo: snack

food, in which the company enjoys near-total dominance(Griesing). Although PepsiCo’s identity is still tied to soft drinks, that business now accounts for only

a quarter of its sales. Frito-Lay, which controls two-fifths of the world market

for salty snacks, generated more than 71% of PepsiCo’s profits last year(Rifi). Pepsi’s position in the marketplace has strengthened, too. For the first

time in its history, it boasts two of the top three U.S. soft-drink brands

on store shelves. Pepsi-Cola is still second to Coca-Cola, but last fall

Pepsi’s Mountain Dew edged out Diet Coke for third place and Pepsi’s Aquafina

bottled water is the No. 1 brand in that fast-growing category(Rifi).

The strategic decisions of Pepsi corporate officers in recent years have changed their company s focus into areas where the company could dominate. The realization of Coca-Cola Company s (Primary Competitor) dominance in certain domestic and primary overseas markets gave birth to this strategic change. This meant giving up the self-defeating strategy of going head to head with Coke in every market, and instead concentrating on emerging markets that were still up for grabs.

Pepsi this year marks the Hundred Years War with Coca-Cola, with no decisive victory in sight. But then, perhaps victory would spoil all the fun — not to mention the price wars that frequently let thirsty consumers load up at grocery chains for less than 17 cents a can ( Gibney). The so-call

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