PepsiCo: Marketing Strategy of PepsiCo

Imagine a healthy drink that makes 
you feel good all day and helps you   digest. This image may not be part of Pepsi's 
marketing plan anymore, but it used to be.
  Since then, Pepsi's marketing plan 
has changed, like all good things do,   to make sure the soda stays popular. In this 
video, you'll learn about PepsiCo's past and   how the company has managed to stay in business.
You'll also find out more about Pepsi's marketing   strategy and what worked and what didn't work. 
Even better, you'll be able to see how smart   marketers like you can use Pepsi's strategies.
A History of the company
  In 1893, Caleb Davis Bradham in New Bern, North 
Carolina, came up with the recipe for Pepsi.   The pharmacist came up with the name 
"Brad's Drink" for this cola and finally   quit his job to focus on his new business.
Due to a lack of sugar, the business went out   of business in 1923.

Creditors took the patent 
for the drink until Roy Megargel paid them off.
  Megargel kept working until the company 
went out of business for the second time,   this time because of the Great Depression. 
Charles Guth used this chance to buy out Pepsi,   so all of the Coke products in his candy 
shop, Loft's, were switched to Pepsi.
  Guth bought a sugar farm in Cuba in case there was 
another sugar shortage and the drink went out of   business.

Guth also made Pepsi's price affordable 
by charging half as much as other sodas,   which caused sales to increase dramatically.
After about 10 years, Loft's changed its name to   "the Pepsi-Cola Company," and Walter Mack took 
over as CEO. PepsiCo changed its image a few   times before deciding on the red, white, and blue 
stripes to show patriotism during World War 2.
  In 1961, Pepsi-Cola and Frito Lay finally 
joined forces to make the brand we know today.
  Pepsi's marketing strategy, which includes new 
products and star endorsements, has helped the   company grow into what it is today.
Pepsi Marketing Mix Product
  Even though most of PepsiCo's goods are carbonated 
drinks, the company has added more items since it   got together with Frito-Lay. These items vary 
from salty snacks to teas and fruit drinks.
  Price
Pepsi's pricing plan   is based on how much their competitors charge 
and how much their customers want to pay. The   company tries to get people to buy in bulk by 
making the price per ounce of Pepsi cheaper for   larger quantities than for smaller quantities.
This approach helps them improve the ways they   already sell their products.
Place
  Even though PepsiCo's main office is in 
New York, their goods are sold in more than   200 countries.

Pepsi also has 36 plants 
around the world that bottle the soda.
  India loves Pepsi, which is why it is the 
third most popular fizzy drink in the country.
  The product is sold by the brand in retailers 
and grocery stores. But they also have deals   with well-known fast-food chains like 
Wendy's, Pizza Hut, and Taco Bell.
  Promotion
Pepsi depends a lot on a   strong brand image and endorsements from famous 
people to sell their goods. Michael Jackson,   Britney Spears, and Beyonce have all said nice 
things about the brand and its signature drink.
  Memorable Pepsi Marketing Strategies
PepsiCo has had numerous challenges   on the road and almost failed in the past. 
They were lucky that they used the following   marketing strategies to make sure their business 
would live (and do well) in a tough market.
  1. Branding Efforts
When Pepsi came out seven years after Coca-Cola,   both were already well-known brands.

Pepsi had 
to find a way to make their name stand out.
  History shows that this wasn't an easy job, 
and they went through a number of names   before settling on the one they use now.
Pepsi made new commercials and slogans   to get people's attention and show that 
they were "the new soda on the block."
  "You've got a lot to live for," was their motto. 
"Pepsi's got a lot to give" gave the brand a voice   that was new and young. Coca-Cola was shown to be 
old-fashioned by the way Pepsi marketed itself.
  2. Sponsorships And Endorsements
It's no secret that Pepsi promotes their products   with the help of star endorsements and company 
sponsorships. In fact, Pepsi has the only rights   to the halftime show at the Super Bowl, which is 
watched by about 100 million people every year.
  Since 2015, Pepsi has also been a key sponsor 
of the NBA.

The company is still reaching out   to other groups. In 2017, PepsiCo became 
the sponsor of the UEFA Champions' League.
  In 1983, Michael Jackson was the first famous 
person to work with Pepsi. He was the face of   their "New Generation" ad. Because of his 
fame, the brand got a lot of attention and   became the drink of a new, younger group.
In later years, other famous people like   Britney Spears, Cindy Crawford, and Beyonce 
did the same thing and worked with PepsiCo.
  3. Embracing Social Media
Pepsi teamed up with the China Women's Development   Foundation (CWDF) to welcome the Chinese New 
Year and bring attention to the importance   of family.

In 2014, they worked together to 
make the "Bring Home Happiness" campaign.
  This campaign had a mini-movie, celebrity 
endorsements, and a charity program,   all of which were supported by social media 
channels that people could interact with.
  People on the popular Chinese social networks 
Weibo and WeChat could share films about their   families. The video ad told people to spend more 
time with their families over the holidays and   share photos and videos of it on social media.
With this campaign as part of Pepsi's marketing   plan, the company got seen by a huge 
number of people. This program had more   than 15 million videos on social media, 
and 1.2 billion people watched them.
  4. Learning From Failure
PepsiCo hasn't always been   the huge company as it is now. Early in its 
history, the business went bankrupt twice!
  They were able to get back on their feet 
and come up with some pretty memorable   ads.

But not every effort worked 
out the way they hoped it would.
  In 1992, at the height of the clear soda phase, 
Crystal Pepsi made its mark on the market.   Unfortunately, Pepsi took the 
drink off store shelves in 1994.
  Some people think that the reason for 
the failure was a lack of communication   with the public. Consumers didn't know why the 
color changed, so they didn't buy the goods.
  Others think that the failure of Crystal Pepsi was 
caused by Coca-Cola's release of Tab Clear at the   same time. Both products were in close competition 
with each other, which hurt them both.
  But in 2022, Pepsi said that Crystal Pepsi would 
be back to celebrate the drink's 30th anniversary.   Still, you couldn't buy the drink in shops.
Instead, the company used Twitter to announce   a contest in which customers were asked 
to send in a picture from the past. Then,   they were told to use the terms "#ShowUsYour90s" 
and "#PepsiSweepstakes" for a chance to win.
  Let’s see if you can find the 
answer for this question!
  How did PepsiCo manage to survive during the Great 
Depression and increase sales dramatically?
  a) Introducing new flavors like cherry and vanilla 
b) Offering discounts on bulk purchases of Pepsi   c) Reducing the price of Pepsi to 
compete with other sodas d) Focusing   on international markets to offset losses
Give your answers in the comment section below!
  How Marketers Can Use These Strategies 
To Improve Their Own Approach
  1.

Build a strong brand
Creating a strong brand takes time,   but it can help you keep a good reputation with 
your target group. A consistent brand can also   help people remember and stay with a company.
You can try out different logos, slogans,   jingles, or other design elements to help 
you make a brand that people will remember.
  2. Embrace Partnerships
You can use partnerships   to reach more people, just like Pepsi did with 
business sponsorships and endorsements from famous   people.

Make sure you pick people or businesses 
that fit with what your brand stands for.
  If your brand isn’t at a similar level 
to PepsiCo, use micro-influencers or   partner with smaller, local businesses.
3. Find New Ways To Connect With Your Audience
  People's needs are always changing, so social 
channels are always changing to meet those needs.   Make sure that your efforts use 
these ways to reach the target.
  The "Bring Happiness Home" ad by Pepsi was mostly 
driven by social media, and you can do the same.   Make sure you go where your 
audience is and use the methods   that are most likely to get their attention.
4. Take Risks (And Learn From Your Mistakes)
  Rome wasn’t built in a day. The same is true 
for both Pepsi's brand and your business.
  Making mistakes is part of growing up. 
What matters is that you figure out why   you failed and keep trying again. 
You can see how PepsiCo kept going   even when things were hard in the beginning.
Pepsi chose to buy their own sugar plantation   so they wouldn't have to go out of business 
again because there wasn't enough sugar.   They spread out their money so that their 
past wouldn't be the same as their future.
  PepsiCo brought back Crystal Pepsi 
and advertised it in a way that wasn't   possible when it was first launched. 
Even though it wasn't the best product,   they saw that some customers liked 
the fact that it wasn't very common.
  If something isn't working for your business, 
you should reconsider your plan and try again.
  Pepsi Marketing Strategy Recap
In this video about how to sell Pepsi,   you've seen how PepsiCo got started.

They 
had to work hard to become the well-known   name they are now, and their strength has shown.
Even though Pepsi has had some problems, it is now   a multibillion-dollar business that has no plans 
to slow down. PepsiCo succeeded by emphasizing   branding, embracing endorsements, connecting with 
their audience, and learning from their failures.
  If you use the same business plan as Pepsi, you 
can do well too. Using what you've learned here,   make a brand that is new and 
exciting for a whole new age..

As found on YouTube

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