Tuesday, December 12, 2017

Pepsi Co Case Study

Alyssa Weisberger
MKT 200-02
Professor Liu

            Based on the information given in the two articles, I’d say that Pepsi Co. is doing well. The number one reason that I say this is because they understand the issues that they are having, and they are on track to fixing them. Also, they launched LIFEWTR and put a lot of time, effort, and money into making it a success. They really focused on the packaging in hopes that it would want people to post photos with the product on their social media accounts. Social media is huge in our society right now, so personally, I think that is a very smart move. Also, Pepsi Co.’s revenue and net worth are slowly growing, which is a very good thing for them; it is exactly what they were hoping for.
            I think that in comparison to Coca-Cola’s company, Pepsi Co. has a product differentiation competitive advantage. I say this because the definition of product differentiation competitive advantage is, “provision of something unique and valuable to buyers beyond simply offering a lower price than competitors.” I think this relates to Pepsi Co. especially with their launch of LIFEWTR. They really wanted to make people feel good and proud to be drinking water that is better for them, and has beautiful packaging that is updated every few months. I think that Pepsi Co. really cares about pleasing their customers, and not just sales.
            Pepsi Co.’s strategic goal for 2025 is “for two-thirds of its global beverage portfolio volumes to contain less than 100 calories for added sugar per 12-ounce serving.” They aim to do this by selling more water and healthy products. They aim to do that by improving their products as a whole, advertising them, and also improving the packaging in order to make it more appealing and social media worthy.
            I think Pepsi Co. wants to change their strategies in the next few years because they genuinely care about improving the health of people. Also, they know that being healthy has become more and more important to people as time goes on. So, I assume that they can see that starting to sell healthier products and more of healthy products, then they will make more money.
            The market for bottled water in the U.S. in 2016 is much higher than it ever has been. In 2016, bottled water sales have finally passed that of bottled sodas. According to one of the articles, “sales of bottled water have surged more than 50% over the last decade.” And while the sales of bottled water increases, the sales of bottled soda continues to decrease. This proves that Americans are trying to be healthier, so it is very smart of Pepsi Co. to try to market healthier products.

            When it comes to Pepsi Co.’s new brand LIFEWTR, Pepsi Co. is using strategic segmentation, targeting, and positioning (STP). They understand that American’s as a whole want to be healthier, and are overall buying more bottled water than ever. Also, younger generations are very swayed to buy certain things based on what those things say about you. So knowing this, Pepsi Co. markets LIFEWTR to American’s that would like to be healthier and to younger generations that especially use social media; this is who they are mainly trying to target. This can be proven through the fact that their first ad-campaign for LIFEWTR was during the 2017 super bowl; lots of people watch because they loves sports and being active, and also lots of millenials watch just to get a kick out of the commercials. When it comes to planning, they planned on creating water that appealed to people because it contained good ingredients, and it also has very appealing packaging.

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