In the world of soft drinks and food industry, PepsiCo is considered as one of the leading brands. Though the competition is high, and no brand can claim the top position for a long time; still the positioning the brands have made in people’s mind is the biggest strength for them. Same goes for PepsiCo. The market share and yearly sales of this company are noteworthy. Though there are intense competitions like Coca-Cola, PepsiCo is still running globally with full grace while enjoying some competitive advantages as well.
Competitive Advantages of PepsiCo
Innovative Marketing Initiatives of PepsiCo
PepsiCo is always one step ahead and spontaneous based on its marketing strategies. It is always trying to create new themes to connect more people with their brand to develop competitive advantages. It had a promotional campaign called “Do us a flavor” that involved people in suggesting their customized flavor ideas of 17 countries! It helped this brand to achieve a huge customer base. As a result, its sales got increased remarkably. This brand also does promotion cross-culturally with catchy headlines and messages, which helps to create a loyal customer base regionally. It always puts importance on engaging with more people, so enjoy more market share among other companies.
PepsiCo Direct Store Delivery
PepsiCo has an innovative supply chain management which led it to win an award too! The company uses the Direct Store Delivery (DSD) system and distribution network through which it directly supplies its product to retail stores. By this, the company has reduced the cost of the middleman and now can ensure maximum visibility of their product on several stores. It also helps them to create a substantial in-store promotion. As a result, customers will not have the scope of choosing another product because of the shortage. DSD helped this company to run short in supply and building an engaging relationship with leading retail industries such as Wal-Mart.
PepsiCo’s Formation of Strategic Alliances Globally
PepsiCo is constantly spreading itself globally, and at present, it has its operations going on over 200 countries! To make this global business more successful, this brand uses the strategy of forming alliances globally. It has established a partnership with Tingyi in China, with Tata in India, with Almarai in Saudi Arabia and so on for capturing the market, enhancing manufacturing capabilities etc. PepsiCo and other companies in the market have already done mergers or acquisition with other companies, but creating a partnership with different companies in different countries has made a distinct impact on this company. As a result, PepsiCo is enjoying competitive advantages regionally with the assistance of big companies.
PepsiCo Diversification beyond Drinks
PepsiCo has an extensive portfolio of food and drinks with 100 brands serving. And it continually uses diversification into snacks over soft drinks. The success in this area is something which other rival companies couldn’t be able to balance with. Its Frito-Lays product line that owns Doritos, Cheetos and other snacks like these, has been contributing to considerable growth in this brand’s sales and profit margin over the last few years. Also, it has entered into the water business, which has added another momentum in the company’s success.
Iconic Youthful Brand Image of PepsiCo
PepsiCo has a brand image which represents the society of the future or youth generation. And this brand focus has helped PepsiCo to gain a more extensive loyal fan base among the youth. The way this brand lunches its products and marketing campaign it has always been a favorite of the younger generation. This brand is always one step ahead to engaging with youths through festivals, sports and games such as in IPL, Super bowl etc. This kind of sharp brand image plays a constant role on the part of the target group, which can’t be altered by another brand easily. And PepsiCo is successful in that case.
Related: Competitive Advantages of Apple Inc
References
- https://www.forbes.com/sites/panosmourdoukoutas/2019/07/13/pepsi-beats-coke-again/#7bb180b32bad
- https://research-methodology.net/pepsico-analysis-of-corporate-strategy/
- https://notesmatic.com/2019/01/pepsi-sources-of-competitive-advantage/
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