Pepsi Marketing Strategies: How They Stay One Sip Ahead Of Competition

All you fans of soda, marketing experts, and fizz fanatics, listen up! Have you been wondering about how Pepsi came to be one of the most loved sodas on the planet? ?

Prepare for a wild journey as we explore the exciting world of Pepsi’s marketing tactics. 

Get ready to plunge into an atmosphere where enticing adverts, compelling advertisements, and perplexing strategies meet. ?

We’ll reveal the strategies behind Pepsi’s brilliant marketing strategies, from extraterrestrial partnerships to mind-blowing commercial campaigns. 

So let’s satisfy our desire for advertising expertise like rarely before as you grab a cool can of your preferred fizzy beverage ?, settle in, and get started! ?

About Pepsi

American global food and drink corporation PepsiCo is based in Purchase, New York. It was created in 1965 as a result of the union of Frito-Lay and Pepsi-Cola. Since that time, PepsiCo has developed into one of the top businesses in the food and drink industry worldwide.

Among the numerous well-known brands in PepsiCo’s portfolio include Pepsi, Mountain Dew, Lay’s, Gatorade, Tropicana, Quaker Oats, Doritos, Cheetos, and many more. The corporation has a huge number of employees and works in over 200 nations and territories.

QUICK FACT ? – Pepsico’s revenue in 2022 was 86.4 billion USD.

Pepsi’s History

Caleb Bradham invented Pepsi in 1893 as “Brad’s Drink.” After changing its name to Pepsi-Cola in 1898, the company struggled financially and underwent many shifts in ownership before Charles G. Guth bought it in 1931. In 1934, Loft Inc. released the 12-ounce bottle.

In 1965, Pepsi and Frito-Lay joined to establish PepsiCo. In the 1960s, the “Pepsi Generation” marketing initiative addressed a younger demographic. In 1975, Diet Pepsi was released.

With brands including Mountain Dew, Lay’s, Gatorade, and Tropicana, PepsiCo rose to prominence as a major player in the worldwide food and drink sector. It maintains a dominant position in the sector by emphasizing sustainable development, creativity, and ethical conduct.

Now let’s move on to the marketing strategies that have helped Pepsi FIZZZZ up to the top ⤵️

Pepsi Marketing Strategies

As you all may already know, big brands like Pepsi usually invest a lot in marketing their products to reach their target demographic.

But did you know there is no one way to market your products? ?

Yes, you heard that right; different strategies brands use to make their products more appealing to the public.

Here, we will be looking at all the strategies that Pepsi uses to stay on top ⤵️

Use Endorsements from Famous People as Leverage

To broaden its audience and raise its profile, Pepsi has made use of the influence of famous people to endorse its products. Celebrities, including Michael Jackson, Britney Spears, and Beyoncé, have been employed by the company to sell its goods. 

Pepsi remains to support many causes and has served as a significant NBA partner since 2015. Even the UEFA Champions League was sponsored by PepsiCo in 2017. The Super Bowl halftime show, which averages roughly 100 million viewers annually, is owned exclusively by Pepsi.

Using Social Media Platforms

Pepsi has reached its intended demographic by utilizing the influence of online communication channels. The company has produced interesting material to connect with consumers, including blog articles and videos.

Chinese New Year has been celebrated with a focus on familial principles thanks to a partnership between Pepsi and the China Women’s Development Foundation (CWDF).

They worked together to create the “Bring Home Happiness” campaign in 2014. Another illustration of a social networking promotion that was effective was the “Say it With Pepsi” campaign in 2015.

QUICK FACT ? – Over 10 million engagements were generated by the “Say it With Pepsi” marketing effort across Facebook, Twitter, and Instagram.

Brand Positioning

Brand positioning is the successful advertising tactic that has given Pepsi an edge over others and helped grow a huge client base. If you’re unfamiliar with the term “brand positioning,” it means an advertising tactic companies employ to affect how customers view their brands.

It is an effective tactic for standing out in an increasingly competitive marketplace and drawing in new clients. As you’ll see, almost all of Pepsi’s advertising depicts adolescents or young professionals.

Multiple Pricing Structures

Pepsi uses a variety of cost strategies that take into account the demographics of the audience, commodity appeal, and product availability.

Owing to the characteristics of the items, the cost of the bulk of its items is comparable in the marketplace; nevertheless, the costs of its goods may vary throughout the same market sector.

Pepsi uses appearance to increase its margin of profit even in day-to-day rates. Your price approach could be significantly impacted by perception. The majority of Pepsi’s income comes from middle-class families.

Branding Efforts

Seven years after Coca-Cola first entered the marketplace, Pepsi was already a well-known brand. Pepsi needed to create a distinctive brand identity. History can attest that this process was difficult, and they tested several logos before deciding on the one that they currently use.

Pepsi developed fresh jingles and catchphrases to appeal to consumers and position themselves as “the fresh soda in the neighborhood.”

“You’ve got a lot to live,” reads their motto. The company’s new, youthful voice inspired the slogan “Pepsi’s got a lot to give.” Pepsi’s edgy marketing approach discreetly painted Coca-Cola as an old-fashioned brand.

Learning from Failure

The colossus that is today’s PepsiCo hadn’t always been there. The business declared bankruptcy twice in the early years of its existence! Fortunately, they’ve picked themselves up and developed some remarkable advertisements.

Nevertheless, not every effort had the desired outcome. Crystal Pepsi debuted at the peak of the transparent soda craze in 1992.

Unfortunately, Pepsi removed the item from shop shelves in 1994. Some claim that the absence of public discourse is what led to the loss. Customers denied the merchandise because they were unaware of the reason why the color was altered.

Investing in The Right Channels

Pepsico has always made significant expenditures on advertising to expand its market share and increase sales.

Nevertheless, based on Pepsi’s annual report, its worldwide advertising and promotions spending climbed by over 12% in 2019. Today, a large portion of revenue goes into online advertising and promotional efforts.

Even while Pepsi continues investing in conventional advertising strategies like television commercials, quite a bit has changed. It makes sense to spend more money on online advertising, as Pepsi does, as long as the internet is still developing.

Being Innovative

To maintain its prominence, Pepsi also makes ongoing improvements to the goods’ design and composition. For its customers who value their health, they have also increased the number of nutritional alternatives in its range of goods.

Their excellent marketing plan includes a broad range of tasty and nutrient-dense product options and flavors in their diversified product inventory.

Particular attention should be paid to its design and flavor as Pepsico keeps growing. Frequent design updates have helped them retain current clients while also luring in new ones.

Focusing on Digital Marketing

Having a solid internet advertising plan in place is as critical to connecting with clients online. One reason Pepsi remains a household name is that its online advertising strategies consistently leave an impression on its target audience.

For instance, their 20-minute “Bring Home Happiness” commercial received over a billion views after becoming viral.

Therefore, it’s vital to highlight that while Pepsi uses the internet to connect with consumers, they also use the influence that goes along with it to manage its campaigns.

Aside from these marketing strategies, there are certain products that lift up Pepsi as a brand. ?

Let’s look at what the top products of Pepsi are ⤵️

Top Pepsi Products

Quaker Oats

The company that manufactures the nutritious morning cereal Quaker Oats is also one of the planet’s top makers of everything artificial and unhealthy, one of the pioneers of the processed food craze. This range of heart-healthy grains generates a hefty $2.5 billion in annual revenue.

QUICK FACT ?️- A half-cup (40 grams) serving of dried instant oats has around 150 calories. Instant oats have about 27 grams of carbs, 5 grams of protein, and 2 grams of fat as their main macronutrients.

Lipton Teas

While Lipton teas aren’t only Pepsi Co. goods, they still make the list. They are rather manufactured in collaboration with Unilever. However, it belongs to the family. It is excellent and incredibly well-liked. It generates roughly $3 billion in revenue for PepsiCo and Unilever.

Doritos Chips

Doritos Tortilla Chips, the ideal snack item to pair with Pepsi’s beverages, is one of Pepsi Co.’s best-selling goods. It is a simple choice to acquire for outings, camping, and snack gatherings since it is crispy and tasty. It brings in roughly $3 billion annually.

7-Up

The Pepsi-Cola company’s little sister, 7-Up, is frequently disregarded in America. But the narrative varies beyond the nation. It generates roughly $3.5 billion in yearly sales globally.

It is a pretty impressive number for a beverage that continues to be extremely hydrating and pleasant.

Tropicana

The main product line from Tropicana is a selection of fruit drinks created from pure oranges. The company is renowned for its dedication to providing unadulterated, excellent fruit juices free of synthetic flavors, colors, or additives.

It has continued to attract an avid fan base both within and outside of America. It has had several fascinating and prosperous variations in different places.

Diet Pepsi

A carbonated soda without calories or sugar is called Diet Pepsi. It is a variant of the well-known cola drink Pepsi but was made with no sugar.

People who are controlling their calorie intake or managing illnesses like diabetes, wherein sugar consumption needs to be controlled, frequently drink Diet Pepsi and other diet sodas.

Gatorade

The most widely consumed athletic and energetic beverage worldwide, Gatorade is a mainstay of numerous gymnasium areas, race tracks, bikers’ bicycles, and places around the court for basketball.

Marketed as a well-balanced compound of electrons, minerals, and other nutrients that can fuel a healthy body.

Lay’s Chips

It is one of the most prevalent comfort foods in the entire globe and undoubtedly in the United States. It can be found particularly in many grocery bags for celebrations like the Fourth of July or summertime trips, as well as for routine tasks like an alcoholic meeting at the house or an extended learning course.

Mountain Dew

Mountain Dew is an adolescent people’s favorite drink that is crisp, filled with soda, absolutely trendy, and alluring. Mountain Dew is bringing in a sizable sum of money for Pepsi Co.

Whether its ability to draw people into the marketplace is due to its inherent flavor or the effectiveness of strong company strategy and advertising is up for debate.

QUICK FACT ?- One of the sizes Ordinary Mountain Dew comes in is 12-ounce (355 ml) cans, and each one has about 170 calories.

Pepsi Cola

Each guy, girl, and child on the developed planet immediately visualize the distinctive blue-and-red circle divided by a white ripple when Pepsi Co. is mentioned.

Pepsi-Cola is the first item from the corporation that these individuals can think of in less than five seconds. It makes up for around a fifth of the brand’s total sales.

Pepsi Marketing Mix 4P Analysis

Now let’s analyze the 4Ps of Pepsi ⤵️

• Product

In contrast to its rival, Coca-Cola, Pepsi has also moved into the morning and snacking markets. Conversely, its rival, Coca-Cola, solely participates in the drinks industry.

The fact that Pepsi owns popular food products like Lays, Kurkure, and Cheetos, which are in considerable demand, offers the corporation an edge over its rivals. Interest in Quaker Oats, a product that the business just added, has also increased significantly.

• Place

Due to its extensive supply chain throughout India, Pepsi is available practically everywhere. Pepsi’s primary first sales method involves wholesalers who give it to retailers.

The alternative distribution method is through direct sales from the business to large retailers and wholesale customers.

• Price

Pepsi and Coca-Cola are both major brands controlling the marketplace, so Pepsi’s price is comparable. It is a business that is well-known for offering deals when purchasing large amounts or for its advertising.

The price reduction for clients increases as bottle size increases. This implies that a 2-liter container of Pepsi will cost less per 100ml than a 250ml one. 

• Promotion

One of the main factors preserving Pepsi’s reputation as a company is marketing. The corporation views adolescents as its key demographic and uses a variety of spokespersons to reach out to them.

Given that the Indian youth is more interested in superstars and athletics, companies often pick athletes and stars to represent their brand. 

Pepsi’s Top Campaigns

You have to know the top campaigns of Pepsi; you wouldn’t want to miss out on the ads that shot up Pepsi’s sales, do you? ?

Ray Charles Pepsi Diet

Pepsi focused on associating prominent people with the company during the 1990s. The promoter’s appeal heavily influences marketing; therefore, there was a period when he switched big marketing with more subpar ones.

Ray Charles performing the Pepsi song was a wonderful sentiment and wonderful music.

New Generation con Michael Jackson

Michael Jackson’s use in one of Pepsi’s commercials is quite successful. It happened in 1984, two years after the release of Michael Jackson’s most popular sixth studio album, “Thriller,” which debuted.

One of the numerous reasons why the advertisement was significant was that it broke MTV’s practice of solely promoting white musicians. Following the advertisement, the business increased sales and made 7.7 billion dollars in profits.

Pepsi – Dinner

A strong tale ignites the customer’s mind and strengthens his attachment to the company. Competitive advertising was only legal in the United States at the time, and Pepsi started a contentious campaign around it in 1995.

Competitive advertising was risky since it may be seen as “disloyal” if done in a way that promoted the rival. The popularity of the deliverymen’s tale contributed to the idea that Coca-Cola and Pepsi were comparable.

Joy of Pepsi

“Joy of Pepsi” is a statement declaring Coca-Cola’s withdrawal due to brand misuse. As we’ve seen in the past, Pepsi began a comparison advertising approach and crossed a fine line that was utterly surpassed here.

The advertisement appears fantastic and demonstrates that Pepsi is adept at using History in its advertising campaigns without turning to the current pop culture icon.

The Pepsi Challenge

The Pepsi Challenge was introduced by Pepsi-Cola in 1975. The competition between Pepsi and Coca-Cola was primarily about determining which beverage was more popular with customers.

The objective was to provide cola customers with two Coke containers, one following another divided by biscuits, to help them cleanse their palates in common spaces like shopping malls. 

Key Takeaways

Pepsi is one of the few companies dominating the beverage industry. ?

Social media is a great tool for reaching out to youngsters and millennials, making it increasingly popular. ?

Learning from Pepsi’s marketing strategies and some hard work on your end might also help your brand reach the top! ?

Frequently Asked Questions (FAQ’s)

References:

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