PepsiCo – History, Brand Value, and Brand Strategy

PepsiCo, Inc. is an American multinational food and beverage brand. It is currently one of the largest brands in the world and has topped the brand rankings in several countries. PepsiCo has established its presence in more than 210 nations. 

In the year 1965, the PepsiCo name came into existence when the Pepsi-Cola Company collaborated with Frito-Lay, Inc. The brand is headquartered in New York, USA.

PepsiCo – History

Initial days

Caleb D. Bradham was a drug specialist in North Carolina. He was the one to have created the first-ever Pepsi cola. In the year 1898, Bradham was inspired by the success of the brand Coca-Cola and named his sweet carbonated cola drink Pepsi-Cola. 

The success of the beverage enticed Bradham, and in 1902, he established the Pepsi-Cola Company. The brand has been enjoying moderate success since its inception. It went through some tough times after World War I. The brand was remodeled and reorganized after the war. 

The rise of PepsiCo

In the year 1931, the organization’s trademark and resources were acquired by Charles G. Guth, and he was the one who established the modern brand Pepsi-Cola. He set up another Pepsi Cola Company. He appointed a scientific expert figure a superior beverage, set up a new packaging strategy and started marketing a massively popular 12-ounce bottle for five pennies.

Charles Guth was also the president of a candy company called Loft Inc. In a legal fight, Guth lost a majority of shares in Pepsi Cola Company to the new party in Loft Inc.

In the year 1941, Pepsi Cola was acquired by Loft Inc., and the name of the brand was changed to Pepsi Cola Company.

The present-day

In the mid-21st century, PepsiCo concentrated on growing its company in different nations, prominently Russia, which was its second-biggest market. In the year 2008, the brand purchased a controlling asset for JSC Lebedyansky, Russia’s biggest juice producer. 

After three years, the brand finished its procurement of Wimm-Bill-Dann Foods. Those ventures helped make PepsiCo the biggest food and drink brand in Russia.

PepsiCo Brand Value

PepsiCo is one of the largest companies in the world in terms of brand value and is one of the leading companies in the USA. It created deals of about USD $ 26 billion in the year 2017. In 2018, Pepsi was promoted on television more than some other drinks in the US. 

As per reports published, the brand produced a net income of USD $ 63.53 billion worldwide in 2017. Food deals fetched 55 percent of worldwide income, and beverage deals fetched a portion of 45 percent. 

In 2017, Frito-Lay alone created around USD $ 16k million in income and represented around 25 percent of all PepsiCo’s income around the world. 

The most recent reports show that the soda pop brand has a brand value of around USD $ 11 billion in contrast to a brand value of 69 billion U.S. dollars for Coca-Cola.

PepsiCo Brand Strategy

1 . The product strategy

The Pepsi cold drink lineup is the brand’s main product and is one of the leading products in the market. The Pepsi advertising strategy items are mainly carbonated refreshments, alongside natural product juices, snacks, and others. 

Products such as Mountain Dew and 7up are separated from the Pepsi product lineup. They have an alternate focus on the clients. The organization has ventured into the zones of chips and wafers like Lays, Cheetos, and Kurkure, which cater to the different segments of the markets. 

They have come up with a variety in their product line with items such as the 7Up Revive and many other products. The brand has additionally ventured into the items like Lipton tea and Tropicana juices. The brand has an objective that it will cater to the customers in all the markets in the world with its food and beverage product line.

2 . The pricing strategy of PepsiCo

PepsiCo products are priced in the interest of the clients. The CSD is evaluated at various rates, and relies upon the opposition and the client’s pocket. They have different sizes of containers offered at different rates. This has been evaluated by the beverage quantity.

The pricing and promotion are done basically to target the customers. The Tropicana refreshments offered by Pepsi Co are evaluated and priced high as they are focused on health-conscious individuals. The promotions and the pricing are done so that the health-conscious people and customers concerned about their fitness will have this image in mind that this drink is the best drink for them.

Lipton is additionally a subsidiary, and they are, for the most part, focused on the targeted clients. Lipton products are priced a bit high, and it is justified as well. The potato chips and similar products are priced according to demand and quantity.

PepsiCo remodeled the pricing strategy to cope with the rival brand’s pricing strategy, and there is healthy competition between PepsiCo and Coca-Cola.

3 . The distribution strategy of PepsiCo

Pepsi and its items are accessible in more than 210 nations worldwide. The spots where Pepsi items are sold are, for the most part, the territories where they discover the target clients and the target markets are accessible. The CSD is accessible everywhere throughout the spots. 

The distribution strategy of PepsiCo revolves around merchant connections and the broad system of retailers, markets, cafés, general stores, and so on. PepsiCo items are effectively accessible to all individuals without any problem. The same goes for the chips like Lay’s and Kurkure, as they are requested by every sort of individual and are a sort of substitute for the nourishment they have. 

Tropicana juice products are accessible at chosen outlets as they have a particular section of clients. Lipton additionally consequently gave a selective client base, and they are accessible at chosen outlets. These outlets are mainly the general stores or the stores where the target clients visit most. 

4 . The advertising strategy of PepsiCo

The brand PepsiCo is focused on its food and beverage items. The marked CSD is focused on the youth community. The advertisement and marketing are done by targeting that young customer group. They are collaborating with the popular famous actors and the popular faces with the goal that individuals can relate to their products.

The advertising and marketing strategies involve advertising through the media sources like television ads, print media, hoardings, billboards, online advertisements, and so on for a 360-degree marking. Pepsi has supported worldwide occasions like the world cups of football, cricket, and so on.

PepsiCo advertising has infused global music and culture to make the ads more relatable. The brand has developed a separate and specialized promotional campaign for chips products like Lays and Kurkure. 

As a worldwide refreshment and tidbit brand, PepsiCo chiefly focuses on the media to make its essence felt in the market. Lipton is advertised to the targeted client market. The Tropicana brand is additionally focused on fitness-concerned individuals. 

The Tropicana refreshments offered by Pepsi Co are evaluated and marketed to health-conscious individuals. The promotions and the pricing are done so that the health-conscious people and customers concerned about their fitness will have the image in mind that this drink is the best for them.

PepsiCo has been associated with several worldwide stars from different fields who endorse their products and have contributed to their products’ success.

Conclusion

PepsiCo has come a long way and become one of the largest brands in the USA. It has dominated the global markets and has replaced the major food and beverage brands in several countries. The brand boasts of its brand value and innovative advertising techniques. The massive success of the brand speaks for it, and the future of the brand is a shining one.

Similar Posts:

Leave a Comment