Case study of pepsi marketing strategies

He was inspired to experiment with various products and ingredients to create a suitable summer drink that became highly sought after way back in the summer of It was this summer inspiration that later evolved into what we now know as Pepsi Cola. The company was launched officially in the year

Case study of pepsi marketing strategies

While this second goal may appear to be mainly related to improving their corporate image, it does have commercial intent, as explained on the PepsiCo website: Recent Product Innovations PepsiCo has a history of developing and launching a number of mid-calorie beverages and Pepsi Next is by no means their first attempt with this style of product.

One very successful mid-calorie product initiate is Trop50, which was launched in Pepsi acquired the Gatorade brand with their purchase of the Quaker Company in Hence, they believed that it was the right time to revisit a reduced calorie Pepsi variation.

Not to be confused with the current Pepsi Light brand marketed in various countries, which is a version of Diet Pepsi.

According to one of their vice presidents at Case study of pepsi marketing strategies time Edward E. More recently, inPepsiCo released a calorie beverage branded as Pepsi Edge.

Both of these brands only lasted around 18 months or so in the market before being withdrawn. Volumes units have weakened slightly sinceindicating that the market is in late maturity-early decline stage of the product life cycle.

Retail dollar sales have been supported somewhat by price increases. And the soft drink market has also been slightly challenged by sports drinks and energy drinks that have seen a minor increase in market share.

Overall, these movements indicate changing tastes of consumers as a result of a stronger health focus. One of the brands most impacted by these market changes has been the flagship Pepsi brand. Reportedly, Dr Pepper Snapple is pleased with the performance of this new product to date.

Independent to the Pepsi Next offering, Coca-Cola is currently mid-late in the process of test marketing in four American cities mid-calorie versions of their Fanta and Sprite brands.

Case study of pepsi marketing strategies

Obviously if these tests are successful and these products are fully rolled-out to the market as a standard product, it appears that there could be a third sub-category of soft drinks; traditional, diet, and now mid-calorie beverages. It would then be interesting to see how and if this sub-category develops, particularly with more offerings and overall promotional support.

But on the other hand, it might be possible that Coke might be test marketing the mid-calorie Sprite and Fanta options as a form of market research only. Impact of Substitute Products Why it may seem strange that a highly successful company like PepsiCo would frequently come back to a product concept that they had struggled with a number of times, it appears that one of the key drivers has been the slight decline in the US carbonated soft drink CSD market in recent years.

It is estimated that the cola category of the CSD market is reducing by around 90 million cases a year. These consumer purchases have tended to shift to other beverage solutions, such as water, energy drinks and juices. One of the underlying factors driving this change in behavior has been identified as the preference that some consumers have to reduce sugar.

Pepsi Next Strategy, Development and Launch As stated above, a key goal of the Pepsi Next offering is to try and win back cola drinkers lost to other beverages. For instance, Coke Zero was a very successful new product a sub-brand under the Coke family brandwhich also had the impact of adding excitement to the Coca-Cola product.

The firm used a variety of promotional tools, including a series of humorous YouTube videos with pretend and somewhat inept Coke brand managers who were intent on taking legal action against Coke Zero.

Another important aspect to keep in mind for Pepsi Next and its likely financial viability is the overall size of the CSD market. With this in mind, even a fraction of market share in the CSD market is significant.

This should deliver good gross margins, as the product would be produced, distributed and marketed using existing infrastructure and facilities. Of course, while Pepsi has indicated that they are taking a long-term view of the market and this product, these statements may or may not be true.

In these types of markets fun food and drinksvariety and new flavors are often used as an effective short-term tactic. For example, chocolate manufacturer Cadbury frequently brings out new products for a limited time only.

It is also a common tactic in the fast food industry. Market Gap Pepsi Next is obviously designed to fill the gap between normal sugar cola drinks and diet colas, trying to appeal to consumers that may sometimes prefer lower-calorie drinks but are concerned with the taste or the social image of diet drinks and vice versa.A Case Study of the Marketing Strategies of Aldus Corporation Words | 10 Pages short paper, this author will look at the Aldus Corporation and the company's marketing manager, Richard Strong.

''A study on marketing strategy of Apple'' December I ''Critical Analysis of using marketing strategies of branding Apple Inc'' Maha H 2. ''A study on marketing strategy of Apple'' December II Declaration I hereby declare that this dissertation is my own original work and is the result of my own investigations.

In February the Pepsi Next product was launched into the US market. This case study provides students with an interesting insight into PepsiCo’s new product process and some of the challenging decisions that they faced along the way. Aug 08,  · Coca-Cola Marketing Case Study 5 (%) 2 votes From the star ‘ Coca-Cola ‘ drink to Inca Kola in North and South America, Vita in Africa, and Thumbs up in India, The Coca-Cola Company owns a product portfolio of more than products.5/5(1).


Read about the marketing strategy of pepsi and the strategies it used to grow its business. Learn about its social media marketing strategy and its marketing capabilities in this case study. Case Study: PepsiCo’s International Marketing Strategy Pepsi was created by chemist named Caleb Bradham.

He was inspired to experiment with various products and ingredients to create a suitable summer drink that became highly sought after way back in the summer of

Case Study: PepsiCo's International Marketing Strategy