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PepsiCo Marketing Plan

PepsiCoMarketing Plan

PepsiCoMarketing Plan

Oncemarketers have identified the target market and the competition inthe market, it is imperative to identify both the points of parityand points of difference. The point of parity refers to thetechniques that are not just unique to the brand, but are common withother brands. On the other hand, the point of difference relates tospecific characteristics attributed to a particular brand and cannotbe gotten with another brand (Kotler&ampKeller, 2012). This paperestablishes PepsiCo`s point of parity and point of difference andevaluation on whether the point of difference will gear, the firm`sgrowth forward.

Pointof Parity

Offeringvarieties of beverage flavors is one point of parity of PepsiCo andother leading industry players. For instance, while the leadingbeverage firm Coca-Cola offers flavors such as lemon, vanilla, andcherry, PepsiCo also brings its varieties, especially from its firstCola such as Pepsi Lime, Pepsi Vanilla, and Pepsi Lemon.Additionally, PepsiCo is positioned like other beverages with theprimary benefit being to satisfy the thirst of people as well asselling as a non-alcoholic soft drink. Kotler and Keller (2012)define the principal benefit as the integral need or demand thatconsumers try to placate by consuming a particular product. Also,PepsiCo offers great customer support to its clients by providingeasy access and brisk feedback as well as PepsiCo`s time for contactin case of concern (Hillman, 2009). However, this is not a distinctmarketing technique of PepsiCo since other industry players such asCoca-Cola provide the contact details of the producer and the placeof production for after sales services as well as giving the websitedomain for product support. Also, Pepsi has invested heavily in brandpackaging to the extent of patenting their bottles, and this is insimilarity to Coca-Cola which has done the same. This packagingstrategy ensures that the brands are highly distinguished andtherefore the customers can easily identify them.

Pointof Differences

Creatinga robust and unique point of differences is an undertaking worthinvesting in since it gives the company a competitive advantage andoffers the customers a distinct value that they cannot get anywhereelse hence stimulating brand loyalty based on differentcharacteristics. For instance, PepsiCo associates itself with fun,action oriented, refreshing and youthfulness and appeals to theyounger generation with the use of celebrity endorsers theircommercials always have powerful technologies aimed at representingCoca-Cola as the brand of yesterday while positioning them as thebrand of today. Additionally, while PepsiCo puts effort to market alltheir products, Coca-Cola focuses on the few favorite brands and doesnot scale its marketing efforts across its over 400 products. PepsiCois always running different campaigns at the same time with an aim toappeal and to capture the attention of the various groups in thesociety. Celebrity endorsers such as Michael Jackson, Britney Spearsand Beyoncé in the most recent have been used by PepsiCo to appealto young people who identify with these stars (Malhorta, 2012). Theuse of brand celebrities as endorsers add to the brand image and hasthe potential to attract anyone who identifies with the particularpersonality. Contrary, Coca-Cola associates itself with happinesswith campaigns such as Open Happiness (2009) and Taste the feeling(2016) and targets the whole family as well as diversifying theiraudience and customizing the marketing information to particularcultures.

PepsiCo`sproducts are usually viewed to be unhealthy due to the salt, sugar orcholesterol content, and this is a significant threat to the firmgiven today`s health conscious society. This problem is in a starkdifference from the industry leader Coca-Cola, which prides itself onhelping customers to remain active and to make dietary choices(Coca-Cola Company, 2012). Coca-Cola offers a variety of productsthat have no or low-calorie content, hence positioning themselves asthe go-to company for anyone who is health conscious. Notably, thiswas to curb the global obesity problem as reported by the WorldHealth Organization, and since the company believes that the healthof the consumer is correlated with the health of their business, itleft them with little option, but to take a user`s health intoconsideration.

Another point of difference between PepsiCo and other industry playerexists in the distribution channels. One underlying factor in thisscenario is the fact that PepsiCo deals with food and beverageproducts while Coca-Cola deals predominantly with beverages. Also,Coca-Cola Company has made use of new technologies such as vendingmachines, therefore, building customer loyalty. Also, the coverage ofPepsiCo is lower compared to Coca-Cola and therefore Coca-Cola ismore widely available compared to Pepsi. Coca-Cola createsconvenience for its customers due to its wide availability, andtherefore it sparks brand loyalty among its consumers. This scenariocauses a little demand for Pepsi since popular retailers such as McDonald`s, and Subway both provides Coca-Cola as a beverage comparedto KFC, which is the only one retailing Pepsi. PepsiCo has businessagreements with its distributors and thereby limiting the number ofdistributors in contrast with Coca-Cola, which establishes afranchise with as many dealers as possible, thereby securing a widercoverage.

UniqueSelling Point

Travelingand seeing the world is every young person`s dream, for you, meetheroes, individuals who inspire you, with Pepsi you can go and seethe world while remaining energetic and vitally energized.

Critiqueof PepsiCo Point of Difference

Themarketing and brand positioning adopted by PepsiCo is an effectiveone, especially the use of celebrity endorsements who attract youngpeople who identify with these celebrities. In my opinion, I feelthat PepsiCo still has a great opportunity in this segment and shouldconduct more campaigns to target campus students and the newlyemployed young people. Additionally, the series of campaigns run bythe company to market its various products to different groups ofindividuals is an effective way of the customer targeting whilepromoting all the brands (Grewal &amp Levy, 2008).

Thefact that PepsiCo is associated with an unhealthy lifestyle isworrying, especially in today`s health conscious society. While thisis a significant threat, it presents an excellent opportunity for thecompany to lower the salt, sugar and fats in their products as wellincorporate grains, fruits and vegetables in their products since thecustomer of tomorrow will demand nothing less of that. By so doing,PepsiCo will be able to level the ground for competition withCoca-Cola.

Thelittle geographical coverage of PepsiCo as compared to its chiefcompetitor Coca-Cola means that the company could be missing a lot insales and growth opportunities. To turn around this trend, PepsiConeeds to commit funds towards channel management as well asintroducing key performance indicators at every point. Additionally,ensuring there is effective communication between the company and itsdistributors will make sure that there exist a cordial relationshipand consistency in pricing which is integral in building trust andcustomer loyalty.

Inconclusion, PepsiCo has a distinct point of differences that providenumerous challenges and opportunities and if well managed cantransform the company into the global leader in beverage productionand sales. The points of parity on the other side, level the groundfor competition for Pepsi.


Coca-Cola®| Taste The Feeling! (n.d.). Retrieved November 19, 2016, fromhttps://us.coca- cola.com/home/

Grewal,D., &amp Levy, M. (2008). Marketing. Boston: McGraw-Hill Irwin.

Hillman,B. J. (2009). Coke vs. Pepsi. Journal of the American College ofRadiology, 6(10), 666. doi:10.1016/j.jacr.2009.07.007

Kotler,P., &amp Keller, K. L. (2009). Marketing management. Upper SaddleRiver, NJ: Pearson Prentice Hall.

Malhotra,S. (2012, November). Impact of Celebrity Endorsement on a Brand. SSRNElectronic Journal. doi:10.2139/ssrn.2361693