Marketing Strategy and SWOT analysis of Pepsi
The iconic “PSST!” sound means that you are probably about to taste a loved soft drink. Die-hard Pepsi fans know that a refreshing taste always follows the pleasant hissing sound. The company has lived and operated in the last three centuries. Nevertheless, the addictive taste of Pepsi remained the same throughout all these years. There are reasons why people love fizzy liquid. Their marketing strategy and product offerings are equally strong. Consequently, that is why they successfully market the right product to the right customer.
Pepsi drinks are now only a chapter in the Pepsi Co. book…
Mission statement.
As the founding brand for the Pepsi Corporation, Pepsi’s mission is to gift joy and memorable moments. Simultaneously, they strive to operate sustainably to provide a bright future for upcoming generations. With a youngster-oriented and unique soft drink, Pepsi wants to expand its reach to every household.
Pepsi is determined to improve the business environment around them and invest in its continuous development. The company’s mission globally is to make Pepsi an indivisible part of joyful moments. Every life-changing event must have Pepsi amongst its participants. For achieving this, Pepsi has a clear mission of walking with progress and adapting to evolving consumer habits.
Vision Statement.
Pepsi’s vision is to “be the global leader in convenient foods and beverages by winning with purpose”. Pepsi Co. is already a giant figure in the market, actions of which affect every corner of the world. Their influence as a nutritional corporation has expanded non-stop. The original Pepsi drink itself is a drink that needs no introduction.
Pepsi invests all its efforts to broaden its portfolio and expand over new locations. Moreover, they desire to get stronger and better in their current areas as well. Considering the scale of their expansion, it is crucial not to forget about sustainability and responsibility. Their activity in the market should not be dominance-driven and will be better even to improve the business environment.
Pepsi owes it to its positioning strategy for today’s worldwide fame.
Global brands like Pepsi build their marketing strategy way before introducing the product. They know exactly who they are, and they know people who will take their product of the shelves. Before uncovering the persona of Pepsi buyers, we will try to analyze Pepsi’s positioning itself.
The creativity in this Instagram post is not just an attempt from Pepsi to generate social media engagement. Nor it is a catchy ad that we will hear from TVs in every household. Instead, this post is an example of how Pepsi makes a positioning move of the product.
Nothing extra catches the eye at first glance. The only attribute that is out of the picture is the teacup. Bear with us; we are going to discuss the symbolic meaning of the post.
Before that, we witness a simple scene with a light orange background, a Pepsi can and a teacup. The short video is in boomerang effect, and Pepsi pours in and out like an endless animation.
Finally, the description tells us everything about the intention of the post. The “When the Pepsi is pouring” part is very simple, and there is no double meaning under it. However, the “the chisme is spillin’” part contains all that we need to know.
This slang phrase means there will be gossip around a drink. Most of the time it is either coffee or tea. That is why the teacup has found its place in the post.
The post content is rather simple, but its effect is much more complicated. By analyzing the IG post, we can conclude that Pepsi belongs to the Jester Archetype.
What key qualities are typical to the Jester Archetype?
Desire: To get maximum joy out of moments in life.
Goal: Make sure to have a great time and spread the mood to the environment around them.
Gift: Sharing the fun and joy with their surroundings.
Values: Laughter and humor, jokes and playful lifestyle.
The messaging levels of the Jester archetype are as follows:
Level 1: Boredom, hunger for more fun and enjoyment.
Level 2: Having fun in life and treating it as a game.
Level 3: Trickiness and cleverness are useful for solving life problems and avoiding trouble.
Level 4: Squeezing the maximum out of life moments and living in the present.
The brand can potentially belong to the Jester archetype if it:
- Serves to customers for having fun and spend memorable time together.
- Has an affordable price in the range of low to moderate.
- Differentiates itself from more premium and established brands with their fun-based nature.
- Helps people feel that they belong.
- Belongs to a company that appreciates fun-loving organizational culture.
A casual SWOT Analysis will tell Pepsi’s story from different angles.
Strengths.
Pepsi Co. – Being the first company in one of the largest food and beverage corporations is a checkmark for every brand. The corporation shares every success with every brand separately. An opportunity of growth for one brand can present one for others as well. The brand image of Pepsi Co. is another benefit of the whole portfolio.
Celebrity endorsements – Pepsi has been a sponsor of football for the last few decades. Famous world superstars featured in rather long Pepsi ads. Many generations of footballers, singers, and Hollywood stars endorsed Pepsi, positioning it as a “youngster” brand. The fan bases of celebrities could become potential customers by trusting the choice of their beloved idols.
Global presence – Pepsi has spread its influence into every corner of the world. Their distribution chain allows reaching their customers with new product offerings and marketing campaigns. Moreover, their activity in every market is different for every location to meet the needs of that specific market.
Weaknesses
Overdependence from the US – More than 50% of sales come from the US market currently. Their sales distribution is not diversified and too dependent on the sales in the US. Any minor fluctuation in sales would cause the company big losses. With such a flexible and widespread distribution chain, Pepsi should have managed its market distribution better.
The resemblance with Coca-Cola – Despite almost 130 years of history behind the brand, Pepsi still faces the issue of resemblance with Coke. In some cases, people consider Pepsi as a replica of Coca-Cola that mimics their every move and product. Pepsi does not deserve this reputation, and they need to find a way to escape such criticism.
Opportunities
Expansion to emerging markets – Emerging markets are the new targets for global businesses. Pepsi must not let this opportunity getaway. They should concentrate their forces to increase their presence and influence in emerging markets. Moreover, they should do that with more intensity and pace compared to the competition.
Online sales – The pandemic gave global companies a valuable lesson on managing sales channels. We experienced many changes in habits, and online shopping entered every household. Pepsi must stay focused and forecast such drastic changes in the shopping preferences of consumers. Possibly, a faster reaction can bring to enjoying the benefits of the pioneer.
Healthier alternatives – Introducing healthier alternatives can attract more health-conscious segments. Pepsi’s reputation of having sugary products might get in the way, but proper marketing will do its work. If they present their nutritional benefits, the possibility of expanding their customer base will be higher.
Threats
Changing consumer needs – The current trend for healthy nutrition might disturb Pepsi’s growth. Consumers are starting to switch to healthier foods and beverages. Pepsi might not manage to play its turn, and lose valuable customers to competitor brands.
Competition from Coca-Cola – The fierce competition from Coca-Cola has been and is present as a threat from Pepsi. Every attempt from Pepsi to capture a market share has its answer from Coca-Cola. With such a giant on its way, Pepsi might have problems improving its growth rate in the future.
Substitute threats – Even with global presence and recognition earned throughout the years, Pepsi might still lose market share to substitutes. The largest among them is Coca-Cola, and many other smaller companies may present relatively small, but significant harm to Pepsi.
Pepsi knows their ideal customer due to superior segmentation strategy – Peacocks
Segmentations strategies uncover the ideal buyer personas for the company. These buyer personas are a group of people sharing lifestyles, values and preferences. Let’s analyze this Pepsi commercial to know their ideal customer better.
Everybody knows Beyoncé. Her persona is globally famous, and featuring her in a commercial is already an accomplishment. The show-business queen is an idol and inspiration for many. She is famous for her work ethic and dedication. Perfect examples of that are the intensely choreographed long concerts, which are way more than simple musical events.
The commercial shows Beyoncé practicing dance moves alone in the studio full of mirrors. She decides to take a break and sip a can of Pepsi. Next, she sees her past selves in mirrors dressed in her different famous costumes. Beyoncé starts dancing with reflections in the mirror. The ad ends with a slogan saying “Embrace your past, but live for now”.
Pepsi wants to state that they were relevant like Beyoncé in the past, and they are still around now. They make the brand an indivisible part of Beyoncé’s shiny character. By analyzing the commercial, it is clear that Pepsi targets the Peacocks segment.
Who are Peacocks?
Lifestyles and Values: Representatives of this segment love to stand out in the crowd. They expect others to notice them easily, and this affects their preferences in appearance and clothing. The circle of people around them are also a reflection of their personality. Peacocks are self-confident, but sometimes it can be an illusion they want to create in the eyes of others. They want others to treat them as self-confident people that is why self-confidence becomes more of an accessory.
Peacocks consider themselves as perseverant. They are not good at accepting failure, because it will damage their image. Usually, there is probably an outside cause rather than a personal mistake for them. Success is of much importance, and visible success is even more preferable. That is why Peacocks try to excel in activities where they can truly shine.
Attitude to shopping: Peacocks pay a lot of attention to their looks. This refers to their clothing and physical shape. They regularly visit the gym, but not only for working out and getting fit. It is a wonderful chance to meet new people and socialize.
Peacocks like to dress in well-known brands, but they cannot always afford them. That is why they hunt for good deals or might wait for prices to get lower. Peacocks are not so brand loyal. They tend to stick with a brand if they like one, but might switch to other brands as well. With time, the brand might become a part of their personality, and parting with the brand would be harder.
Representatives of this segment love being in trend. More importantly, other people must perceive them as trendy. They will most probably follow the trends via magazines or TV. However, the final decision is on them, because they feel they know the trend by themselves.
Interesting facts about Peacocks:
- TV is the main source of information. They will most probably follow trends or watch TV for enjoyment rather than for educational content.
- Following the trends via magazines is the most preferable way. However, magazines are a little pricy for them; that is why they do not consume magazines very often.
- Internet is primarily a social engagement channel rather than a source of information.
- Peacocks surround themselves with many friends, but they do not have friends who have similar personalities.
- Peacocks are above average club and moviegoers, primarily for socializing and meeting new people.
Pepsi soft drinks became part of our most memorable moments. The company succeeded in linking its brand with special occasions, which increases the value of the product. Surely, Pepsi is also a perfect complementary drink for the food that we love. After more than 130 years in the market, Pepsi walks with progress and brightens the world around them. With such a global name and influence, every small decision is an impact on the world.
Consequently, every move of Pepsi must be backed up with a forward-looking marketing strategy. After such deep analysis, Pepsi is still a worldwide famous brand that we love and trust. That is it, be sure to check out more posts like this on our website.
