Wondering why Pepsi is everyone’s favorite? Of course, because of its taste and demand, the demand for Pepsi is so high that Pepsi successfully maintains its high position in the market. The company was instigated on August 28, 1898, in North Carolina, United States. Pepsico has its headquarters in Harrison, New York. So, what are Pepsico competitive advantages?
There are various competitive advantages that Pepsi has. It has been successful in maintaining its position in the market by focusing on what consumers want and following the strategies. The article is about what are the competitive advantages that Pepsi has, the marketing strategy, and more.
Marketing Strategies of Pepsi
Pepsi is a leading brand that has 22 other brands affiliated with it. The strategies that Pepsi used for it to be stable in the market and expand its growth are as follows:
- Worldwide presence – Pepsi has a global presence as it has enormous numbers of distributors and suppliers covering 200 countries. Business to consumer strategy has increased the sales of Pepsi to every small corner of the world. Due to its global presence, the company has managed to keep its position on top and increase its sales.
- Advertising – To become a successful brand and to keep a stable position in the market, good advertising is a must. The key strategy of Pepsi is video advertising, one of its videos got more than a billion views. The advertising strategy of Pepsi is very excellent. Various channels are used by Pepsi for its advertisement. Digital channels are also playing a crucial role in advertising.
- Customers – As the company covers 200 countries, you can imagine how many customers Pepsi has. Also, Pepsi spends a lot on advertising and marketing as the advertisement automatically attracts customers towards the brand. This is one of the most important reasons why Pepsi is such a popular brand.
- Pricing – The pricing strategy of Pepsi is also one of the biggest factors by which Pepsi is so popular. As Pepsi covers 200 countries, it has made the availability of its products to every corner of the world. There are various sizes and types of products that Pepsi provides to its customers. The prices of these products are not so high and are affordable to people due to which its sale increases. Not only the affordable prices attract the customers, but also the various deals offered by pepsi.
- Product development – This factor is also one of the strategies of Pepsi to expand its growth, as Pepsi develops variants of its existing products such as products with low-calorie, low-saturated fats, reduced salts, etc. Pepsi develops products that are unique and will capture the attention of consumers.
- DSD – Pepsi mainly focuses on Direct Store Delivery which means that Pepsi directly supplies its products to the retailers like Walmart so that the cost of middlemen is reduced and to create an in-store promotion.
- Building alliance – Many companies come in partnership with other countries to expand the business, but Pepsi has merged with a different brand in different countries which made a huge positive impact on Pepsi by spreading the business globally. Pepsi has come into coalition with the following companies:
- Tata in India
- Almarai in Saudi Arabia
- Tingyi in China
As the brand covers 200 countries, it also handles 22 brands in the segment of food and beverages. The strategy is quite simple: they just see what the customer wants, what they demand. They have different distribution strategies for urban as well as rural areas so that their products reach the customers at every corner of the world. Pepsi is a strong and successful company as it focuses on strategies to maintain its position in the market.
Name the brands affiliated with Pepsi
The brands affiliated with Pepsi are as follows:
- Mountain Dew
- Tropicana
- Quaker Oats
- Sabra
- Stacy’s Pita Chips
- Aunt Jemina
- Naked Juice
- Starbucks bottled beverages
- Gatorade and Propel
- Pasta Roni
- Doritos
- Tostitos
- SunChips
- Cheetos
- Aquafina
- Lipton
Is Pepsi better or coca-cola?
Both companies have the same business model and flagship products. Pepsi and Coca-Cola have been the biggest competitors in terms of this industry. Pepsi owns 22 more brands such as Quaker Oats, Tropicana, Sabra, and many more whereas Coca-Cola owns brands such as Gold peak teas, Georgia Coffee, Fanta, and many more. Both the companies have unique qualities in their products as well as their marketing strategies which is why they are the biggest leaders in this industry.
Conclusion
To sum up, everything that has been stated so far, Pepsi has been a successful company in terms of profitability, consumer satisfaction, expanding sales, and understanding the business model. To become a successful company, marketing strategies should be fixed, and if it is implemented, and executed correctly, then the company can maintain its position in the market like Pepsi is doing. The biggest competitor of Pepsi is Coca-Cola, and they have been rivals for years now.
