PepsiCo Product Marketing Campaign Strategy

PepsiCo Marketing Campaign Strategy. There must be reasons for the success of this top 2 company in the world. Let’s learn about the Product Marketing Campaign of Pepsi.

A brief history of PepsiCo

PepsiCo is American multinational food, snack and beverage corporation headquartered in Purchase, New York. Also, PepsiCo has interests in the manufacturing, marketing, and distribution of corn-based snack foods. Including non-dairy beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc.

The merger between these two companies, which created the new company called PepsiCo, Inc. Because of its ability to leverage resources from both product lines, PepsiCo became a corporate leader. Especially, in the food and beverage industry by expanding its potential for international growth. Then on October 3rd 1969, Pepsico went public at $22/share or a market cap of $1.65 billion with a split-adjusted price/earnings ratio of 16.5x. The stock has gone up $1.98/share or +3.5% since when it was first sold 40 years ago.

PepsiCo’s product portfolio  

PepsiCo’s product portfolio includes 22 brands that generate more than $1 billion in annual retail sales. The company’s seven major brands – are Pepsi-Cola, Gatorade, Quaker, Tropicana, Mountain Dew, Lay’s and Doritos. Each generate more than $1 billion in annual retail sales. In addition to these brands, the company has 10 percent interest in Starbucks Coffee Company. Which accounted for an additional $7 billion in retail sales during 2012; and 25 percent interest in Wimm-Bill-Dann Foods Holding , which accounted for an additional $2 billion in retail sales during 2012. 

PepsiCo Product Marketing Campaign Strategy

PepsiCo, Inc. has a product line that consists of more than 200 products with about $66 billion in revenues for the year 2012. The company has strong brands that are well recognized by consumers around the world. PepsiCo, Inc. has been able to utilize these strong brands to expand its presence in emerging markets and boost results.

The company’s main products include beverages, snacks and other foods. The company is an industry leader in the beverage industry through its ownership of the leading cola brand, Pepsi-Cola, and Mountain Dew as well as Tropicana juices and Quaker oatmeal. It is also a major player in the salty snacks market thanks to its Frito-Lay division.

In addition, it competes with other food manufacturers on a large range of grocery products through its ownership of brands such as Quaker, Tostitos and Doritos. PepsiCo is a very successful advertising campaign because of its product line that consists of more than 200 products with about $66 billion in revenues for the year 2012.

PepsiCo’s Product Marketing Campaign

PepsiCo’s product marketing campaign worked because it had a large variety of drink flavors (variety) and was able to target specific groups to buy their product (targeting). For example:  For their variety their drink flavors ranged from traditional drinks like Mountain Dew to something more unique like Gatorade’s newest Sport raspberry lemonade flavor which tastes like lemonade but without all the sugar and calories that come with typical lemonade. For targeting they have many different demographics they target such as young men who are high school or college athletes or young women who are active athletes who want to stay fit or just want a healthy beverage option at restaurants instead of soda or juice.