Branding is of significance to the success of a company. Pepsi Company utilizes branding as part of their marketing strategy. Pepsi's parent company has created a product that fits in different target audiences, making it a mass-market product. The non-alcoholic Pepsi beverage has branded itself as a young and vibrant brand, which is a great strategy to enhance market penetration. The iconic youth brand is also very efficient in enhancing experiences for the target audience. This has helped maintain and increase its market. Pepsi's parent company has created a global market in over 200 countries around the world (Doyle, 2001). This has enabled many new products to succeed in the market since Pepsi has already established awareness worldwide. New product market strategies are efficient since the company already has a wide existing market in the world.
The market development strategy for Pepsi is very effective. For example, Pepsi has been sponsoring the Super Bowl show for seven years. The audience reached by the show is over 100 million people by 2019. This shows that Pepsi utilizes proper marketing strategies to develop new markets. Through its availability in many countries, Pepsi has made brand extension very easy for the company. I would recommend Pepsi Company to continue making successful mergers in the bottling and snacking market. I also recommend that the company should focus on transparency with its audience by developing strategies to eliminate practices that cause doubt of the company's reliability.
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Moreover, the company should heavily invest in emerging markets where healthier beverages and snacks have a rapidly growing market. PepsiCo's primary brands include Pepsi beverages, Tropicana Juices, Frito-Lay Snacks, Quaker Food Snacks, and unique regional brands like Walker Crisps. The merging of Pepsi Company with companies like Friro lay and Quaker foods has enabled its production of snack foods in large markets. However, Pepsi in the future may utilize brand extension, for example, by introducing an alcoholic beverage. The market for alcoholic beverages is expected to grow at a high rate. Venturing into an alcoholic beverage space is a potential market space for the company, although the company values may contradict this venture. However, the market shows a growing demand for alcoholic pre mix beverages.
Pepsi also plans to introduce snacks and drinks that suit the population that prefers to cook meals at home. The covid 19 Pandemic has created a new dimension of snacking, whereby Pepsi aims to create snacks that can be consumed during the preparation of meals. To enhance this strategy, the company will include recipes in such snacks that people at home can use to prepare meals. This is a brand extension with a high potential for success since many people love to incorporate snacks into their meals. This trend has mostly been brought by the quarantine measures where families try to be diverse in their homemade meals. My recommendation on this brand extension is that Pepsi should figure out the best strategy to introduce alcoholic beverages without showing any interference with the company's' values on healthy living. The beverage should differ from any other and advocate for a happy lifestyle and the creation of memories (Dhār et al, 2005). Another recommendation is that the company should utilize this period to introduce snacks that can be incorporated into meals and establish a market during the quarantine period. This way, Pepsi will have an existing market for its products even after the pandemic is over.
Pepsi Company should utilize new marketing strategies to venture into the global market fully. For example, it can emphasize campaigns that address local consumer needs. Through a complete focus on customer support, the company would face a high scale-up of distribution and marketing worldwide. By satisfying the immediate consumer needs, a product becomes reliable to all people worldwide and increases its sales. The best marketing strategy for a big company like Pepsi entails its combining of technology and advertisement. The company can venture into a health show produced by the Pepsi Company to enlighten people on healthy lifestyles and nutrition as a whole. This way, the company will attract people of all ages to enjoy their beverages and snacks.
References
Doyle, P. (2001). Building value-based branding strategies. Journal of strategic marketing , 9 (4), 255-268.
Dhar, T., Chavas, J. P., Cotterill, R. W., & Gould, B. W. (2005). An Econometric Analysis of Brand‐Level Strategic Pricing between Coca‐Cola Company and PepsiCo. Journal of Economics & Management Strategy , 14 (4), 905-931.
