TABLE OF CONTENT:

1. Pepsi Preps Global Emoji Can and Bottle Campaign -

http://www.adageindia.in/marketing/cmo-strategy/pepsi-preps-global-
emoji-can-and-bottle-campaign/articleshow/51057328.cms
2. Social Media Marketing: How Pepsi Got It Right -
https://mashable.com/2010/01/28/social-media-marketing-
pepsi/#5QlQycp3XqqA
3. How Pepsi uses Facebook, Twitter, Pinterest and Google+ -
https://econsultancy.com/blog/63062-how-pepsi-uses-facebook-twitter-
pinterest-and-google
4. 5 Ways Pepsi's Use of Social Media is Right On -
https://www.socialmediatoday.com/content/5-ways-pepsis-use-social-
media-right
5. PepsiCo reaches out to front-end digital-age consumers, while focusing on
back-end efficiencies - https://diginomica.com/2016/07/08/pepsico-
reaches-out-to-front-end-digital-age-consumers-while-focusing-on-back-
end-efficiencies/
6. Pepsi sees ‘infinite possibilities’ in ecommerce -
https://www.marketingweek.com/2017/07/11/pepsi-to-prioritise-
premium-products/
7. Pepsi brings social media in-house -
https://www.marketingdive.com/news/pepsi-brings-social-media-in-
house/428194/
8. Promotional Strategies for PEPSI -
https://www.scribd.com/document/150820411/Promotion-strategies-of-
Pepsi
9. Marketing Mix of Pepsi - https://www.marketing91.com/marketing-mix-of-
pepsi/
10.Branding Strategy of Pepsi -
http://ideasmakemarket.com/2012/03/ideasclash2-0-entry12-branding-
strategy-of-pepsi.html
http://www.123helpme.com/view.asp?id=47810

https://link.springer.com/article/10.1057/dddmp.2016.4

https://www.marketingweek.com/brands/pepsico/

-----1-----
Love them or hate them, emojis are not going anywhere anytime soon because marketers just can't
seem to get enough of them. Witness Pepsi, which is the latest big consumer brand to make the
wordless icons the centerpiece of a campaign.

The soda brand is planning to market specially designed emoji cans and bottles in more than 100 global
markets this year, including the U.S, drastically expanding a program that began last year in Russia,
Canada and Thailand. The marketer calls them "PepsiMojis."

"Emojis are the language of today but no one has put them in the world like Pepsi will in 2016. With
more than 70 global and locally uniquely designed emojis printed on cans, bottles and cups all over the
world, you're going to be able to 'say it with a Pepsi' all through the summer of 2016," PepsiCo CEO
Indra Nooyi said in a presentation Thursday at the Consumer Analyst Group of New York meeting in
Boca Raton, Fla.

Ms. Nooyi said PepsiCo's design and innovation center designed all of the emojis -- and created copy
that shows how emojis and Pepsi really come in handy. An example: When you find yourself stuck at a
train station in a foreign country or at a concert where it's too loud to speak, you can use your emojis to
communicate. "Our customers are very excited about this program and this will run in about 100
markets this summer," she said.

Pepsi will support the program with digital and traditional advertising, a spokeswoman confirmed. The
marketer also has plans to extend the emojis beyond packaging. For instance, Pepsi has teamed up with
fashion designer Jeremy Scott on a collection of PepsiMoji-inspired sunglasses, Women's Wear Daily
recently reported.

View image on Twitter

View image on Twitter

WWD

@wwd

.@ITSJEREMYSCOTT collaborated with @pepsi for a collection of sunglasses [sub]:

http://wwd.com/accessories-news/eyewear/jeremy-scott-pepsi-sunglass-collection-10334550/ …

6:32 PM - Feb 1, 2016

Replies 8 8 Retweets 13 13 likes

Twitter Ads info and privacy

A soccer-themed campaign that will run in Europe includes soccer-inspired emojis. The campaign, called
"Pepsi Blue Card," includes stars such as James Rodríguez of Real Madrid and Spanish goalkeeper great
David de Gea of Manchester United.

Get Flash Player

Pepsi has also designed emojis specifically targeted for each market, such as one depicting a traditional
Thai costume.

PepsiMoji

PepsiMoji Credit: PepsiMojis in Thailand

The emoji program comes after Coca-Cola found success with its "Share-A-Coke" packaging promotion
that slapped hundreds of first names and sayings on cans. Coke launched the program in Australia in
2011 and brought it to the U.S. for the past two summers.
Emojis are of course mostly confined to the digital world. Ms. Nooyi showed a slide during her
presentation stating that more than 2 billion smartphone users globally send 6 billion emojis daily. By
slapping them on packaging, Pepsi is seeking to use them as a means to bridge retail marketing with
digital marketing, all without words. In Canada, for instance, the Pepsi Twitter handle last year
encouraged consumers to post photos of the cans and bottles to express how they are feeling.

View image on Twitter

View image on Twitter

PEPSI Canada

@PepsiCanada

We love summer scenery! Grab a #PepsiMoji and snap a picture of your favourite scene #sayitwithpepsi

9:35 PM - Jul 28, 2015

1 1 Reply 2 2 Retweets 2 2 likes

Twitter Ads info and privacy

The marketer chose Canada as a test market last year because it "is one of the few nations that has
more than one official language, so this is a place we can really test the global appeal of emojis as an
universal language of emotions that transcends linguistic barriers," Brad Jakeman, president of PepsiCo's
global beverage group, said last year in an interview with Fast Company.

To celebrate "World Emoji Day" last year on July 17, Pepsi released a "#PepsiMoji Keyboard" that is still
available on Apple's App Store and on Google Play. The program was supported with the following
video:

-----2-----
Social media marketing campaigns are proving to be goldmines rich with customer engagement and
insight that companies wouldn’t likely have otherwise. Companies like PepsiCo are going to extensive
lengths to foster this type of collaboration with fans, and the payoff has been big.

The company’s Mountain Dew division is several stages into its DEWmocracy campaign — a plan to
launch a new Mountain Dew flavor with the public's involvement at all levels of the process, and
PepsiCo also just launched the Pepsi Refresh Project on January 13th. Rather than spending money on
Super Bowl television ads this year, the company is spending $20 million on a social media campaign.

Jay Baer, founder of the social media strategy company Convince & Convert, said brands are realizing
they need to market for the long haul. “I do think it’s a good move for Pepsi. I don’t know if every brand
can pull it off,” he said.

The Pepsi Refresh Project and the DEWmocracy campaigns are part of a crowdsourcing effort that’s part
of the larger PepsiCo plan to more closely integrate consumers with the brand. “Driving consumer
interest and engagement takes imagination and often a certain amount of reinvention, so it’s fair to say
we’re rethinking everything we do from product development to marketing campaigns across our entire
portfolio,” said Bart Casabona, a Mountain Dew spokesman.

A Closer Look at Mountain Dew's Social Media Campaign

The first DEWmocracy campaign launched in 2007. This inaugural DEWmocracy effort let consumers
choose Dew's new flavor, color, name and graphics, and resulted in more than 470,000 people voting
and an overall 1 million people taking part in some phase of the process, according to the company’s
DEWmocracy media site. The winning new flavor, Voltage, hit store shelves in January 2009.

Brett O'Brien, Mountain Dew’s marketing director, said that for the first campaign a site was built for
people to interact with, which made sense at that time.

Fast forward to July 2009, when the second DEWmocracy campaign launched. The multi-stage effort
tasks die-hard Mountain Dew fans to narrow seven sodas down to one final new flavor that will become
a permanent part of the Mountain Dew family, using social media platforms 12seconds.tv, Twitter,
Facebook and YouTube in the process.
O’Brien said that with the explosion of social networking, they felt it was best to interact with people
where they are.

Flavor Nations Play a Large Role

The second iteration of the Mountain Dew campaign is fueled by the 4,000-strong DEW Labs crew, an
online community of die-hard fans. The DEW Labs are divided up into three Flavor Nations for the three
Mountain Dew soda finalists: Typhoon, WhiteOut and Distortion. Once the three flavors debut in April,
the Flavor Nations must talk up their flavor and get people to vote for it to become the permanent new
Mountain Dew soda. That one winning new permanent soda flavor will debut on Labor Day, according to
the company’s DEWmocracy media site.

O’Brien said the several stages involved are really part of the normal product innovation process. He
said if they were going to be totally transparent the whole time in launching a new Mountain Dew
flavor, they needed their customers to be there the whole time.

Every part of the campaign involves the fans and the public — from picking flavor names, to voting on
the best user-submitted ad campaign.

Collaboration With Consumers

“What we’re calling it [is] collective intelligence,” O'Brien said. “It’s less about crowdsourcing, but more
about collaboration." PepsiCo looks at DEWmocracy, which has literally been driven by word of mouth,
as a way of doing business rather than an ad campaign, he said, and the most important thing to
recognize is the passion consumers feel for Mountain Dew is like nothing that’s out there.

According to O’Brien, PepsiCo looks at social media as the best way to get direct dialog with their fans
and for the company to hear from those fans without filters. “It’s been great for us to have this really
unique dialogue that we normally wouldn’t have,” he said. “It really has opened our eyes up.”
Convince & Convert’s Baer said the DEWmocracy campaign fits with Mountain Dew’s brand and
customer profile. He said giving customers ownership of the brand is a fantastic idea.

“What they’re trading off is reach for depth and they’re trading short-term impact for long-term
impact,” he said. Baer sees the process of brands asking customers to craft better products or services
as a trend. He pointed out that companies aren’t just soliciting customer input, but they’re putting it
into practice. And some business decisions are now based solely on customer feedback.

“To me, that’s tremendously exciting,” he said. “To me, that’s the social media story.”

-----3-----
In the latest of our posts looking at how major brands use the four main social networks I’ve decided to
turn the spotlight on Pepsi.

The drinks brand is forced to play second fiddle to Coca-Cola’s global dominance, and is unlikely to ever
match its rival’s huge social following.

However it should still make an interesting case study, particularly with its long list of brand
ambassadors. This post follows on from similar blogs looking at brands such as McDonald’s, Nike,
Burberry and Walmart.

So without further ado, here is a quick overview of how Pepsi use Facebook, Twitter, Pinterest and
Google+...

Facebook

Pepsi’s Facebook page is a bit of a conundrum. It has some 17 million fans yet it hasn’t been updated
since way back in July 2012.
In fact one of the most recent updates is a video of Fernando Torres when he had long blonde hair,
which shows just how dated it really is.

On the face of it the page appears to be official as prior to going silent it posted almost daily updates
promoting Pepsi’s ad campaigns and brand ambassadors.

The updates achieved almost zero interaction though, with very few achieving more than 50 comments
and ‘likes’, which is also odd as although they’re extremely brand focused they aren’t much worse than
a great deal of other corporate Facebook updates.

What’s perhaps most bizarre is that Pepsi recently created a ‘Like Machine’ that traded free samples in
return for smartphone owners giving the brand the thumbs up on Facebook.

This is a fairly shameless way of scraping customer data if you’re not then going to make any effort to
entertain them once they’ve been lured into becoming fans of the brand.

If you compare Pepsi’s silent page to Coca-Cola’s social efforts and the storming success it’s had just by
writing random names on the side of cans then one would assume that Pepsi might soon be hiring a new
Facebook page admin.

Pepsi’s sub-brands do a far better job of posting fresh content and responding to fans comments.

For example, Pepsi Max posts new updates almost every day, most recently focusing around its
sponsorship of cricket or featuring the magician Dynamo.
The updates featuring Dynamo’s bus levitation trick achieved a huge amount of interactions and were
shared more than 120,000 times, however these were the exception rather than the norm.

In general Pepsi Max’s updates achieve just a few hundred ‘likes’ and comments despite having more
than 1.1 million fans.

One noteworthy Pepsi Max promotion was its ICC Champions Trophy competition that offered people
the chance to win tickets to the event.

To enter users had to upload a photo of themselves with a Pepsi at a Walkabout Bar either through a
Facebook app, Twitter or on Instagram using the hashtag #MaxItToWin.

It seems like a good idea but unfortunately it looks like only about 30 people actually entered.

Pepsi NEXT’s updates and level of interactions are largely similar to Pepsi Max, however it also has to
deal with a number of critical comments about the health risks of the drink.

Pepsi recently had to change the recipe of NEXT due to health risks associated with the artificial
sweeteners it contained, however consumers clearly haven’t aren’t yet ready to forgive and forget.

Twitter
Pepsi is another brand with a confusingly broad range of Twitter feeds. There’s PepsiCo, Pepsi Max,
Pepsi Max Crew, PepsiCo Deals, PepsiCo Jobs, Pepsi Next, as well as feeds for many of the countries in
which the drink is sold.

As you’d expect most of the feeds have very few followers, however the main Pepsi account has
managed to attract a following of 1.6 million people, some 600,000 more than Coca-Cola.

The social team tweets several times per day with the general focus being on the brand’s association
with Beyoncé and its current ‘Live for Now’ campaign.

The idea is to promote Pepsi as an exciting, youthful brand that people associate with having a good
time, so its feed is littered with hashtags such as #LiveForNow, #IconicSummer, #PoolParty and #duh.

It’s all rather corporate and dull in my opinion, but it does also throw in frequent ticket competitions for
Beyoncé’s world tour, which is a good way of attracting more followers.

Pepsi Max UK also achieved decent results from a Promoted Tweet campaign for Beyoncé’s UK tour.

The ads offered some fans exclusive ‘meet and greet tickets’ with a ‘queue-jumping’ competition. After
tweeting the hashtag ‘#MeetBeyonce’ fans could visit the Pepsi Max site and see where they were
positioned in a virtual queue.

At three random times during the day, the person at the front of the queue won the meet and greet
tickets.

The ads were targeted at relevant keywords such as ‘Beyoncé’, ‘love Beyoncé’, ‘Jay Z’ and ‘Beyoncé
tour’. Pepsi Max also used gender, geography and device targeting to specifically reach women located
in the United Kingdom, on mobile.
Overall the campaign resulted in a 20.8% average engagement rate and more than 150,000 mentions.

Looking again at the main account, Pepsi’s social team also responds to occasional @mentions by other
users, though not more than a handful each day and generally only to positive comments.

Many other brands have dedicated customer service channels on Twitter but Pepsi appears to largely
ignore complaints, or it might be that it leaves them for local markets to deal with.

The PepsiCo feed appears to operate in much the same way. It responds to quite a few @mentions each
day but it tends to be mainly positive comments.

Pinterest

As far as I can tell Pepsi NEXT is the only Pepsi brand that has an official Pinterest account. Despite being
active for more than seven months it has pinned just 213 images across 14 boards, attracting a mere
1,078 followers.

One of the reasons for this could be that the boards are all slightly random. Many of the older boards tie
into NEXT’s ‘Unbelievable’ campaign, so there are collections named ‘Unbelievable events’,
‘Unbelievable Places’ and ‘Unbelievable Party Parapernalia’. But then in among those there are other
boards named ‘Homemade Holiday’ and ‘Sampling Events.’

The images themselves are quite interesting, but the social team has included too much text on the pins
in my opinion. Also, the unbelievable lists are all taken from Buzzfeed advertorials.
The more recent boards are even worse and just include images and videos from Pepsi adverts that all
link back to the product’s official website. Another one is called ‘Pepsi NEXT’ and just includes nine
different product images.

It’s hardly the sort of thing that people are going to want to share in great numbers.

Pepsi NEXT is also another example of a brand that has used Pinterest to run a competition. Users had
to create a board named ‘Unbelievable Pepsi Next Party’ and pin a branded Pepsi image as well as at
least two images depicting their ultimate super bowl party.

It attracted several hundred entries, which isn’t actually that bad for this kind of competition.

Finally, there is an account that purports to be for PepsiCo, however it doesn’t have the official Pinterest
tick.

It has created 12 boards for topics such as ‘Innovate Globally’ and ‘Sustainability’ but many of them have
only a couple of pins. In general the content is fairly dull and corporate, so it’s unsurprising that it has
just 600 followers.

Google+

Pepsi is another brand that puts very little effort into its G+ page and generally posts just one or two
updates per month. Even so, it has managed to attract just over 700,000 followers.

The posts tend to be images or videos of Beyoncé or other musicians, and rarely achieve more than a
few hundred interactions.
Pepsi’s apparent indifference to G+ is by no means unusual and I’ve previously highlighted 10 major
brands with dreadful Google+ pages. As far as I can tell, Pepsi’s other brands haven’t bothered with G+
at all.

However there is a G+ page for PepsiCo Jobs that is updated on an almost daily basis.

The content is all based around PepsiCo product launches and marketing campaigns, as well as
occasional updates on the company’s interns. It’s not particularly interesting and only has around 1,000
followers.

-----4-----
The rise of social and mobile is rewriting the marketing playbook for even the most established
companies. While many brands are still casting a wary eye at social media for business, Pepsi has
embraced the technology, carving out an ambitious social strategy aimed at building relationships with
the Millennial generation, soon to be the largest consumer group in US history.

A recent article by David Hatch of US News and World Report does a great job of breaking down Pepsi's
social strategy, the centerpiece of which is its "Live For Now" marketing campaign. The campaign,
targeting 18-35 year olds, is a great example of an established brand effectively utilizing five critical
aspects of social media marketing: consumer engagement, user-generated content, data aggregation,
geo-local, and inbound marketing.

DYNAMIC CONSUMER ENGAGEMENT

Pepsi's new digital dashboard is the most recent iteration of an online strategy that included last year's
debut of Pepsi Pulse and Sound Off, online destinations that encouraged visitors to comment on The X-
Factor, a Fox network reality television show whose sponsors include Pepsi.
To further engage its online community, the song selection and encores for a Pepsi concert series this
summer featuring major artists will be chosen in part by tweets from the live audience and people
watching online.¹

"Pepsi is learning that if you want to remain relevant with this new type of consumer, you have to be
where they are, you have to talk their language," and you have to connect with them in a way that
"keeps them feeling like they want to be part of your brand," says Brian Solis, a principal analyst at the
Altimeter Group. Connected consumers, he adds, are "getting groomed and conditioned to expect the
world to come to them."¹

pepsi live for now

USER-GENERATED CONTENT

Social media marketing is becoming increasingly dependent on user-generated content, meaning

reviews, comment, or any other input from customers. Peer influence has a measurable impact on
consumer purchase decision, especially among Millennials.

Understanding this, Pepsi has created a new digital dashboard on their Pepsi.com place page to support
the Live For Now campaign, highlighted by user-generated messages from Facebook and Twitter that
include the #LiveForNow hashtag. ¹

Moreover, with the help of SocialFlow, a tool that ranks the popularity of editorial content within
audience segments, Pepsi is paying attention to what their target audience is interested in. "It's all about
that movement [online], and where people's time is being spent," says George Smith, senior manager,
social strategy and execution, for Pepsi Beverages.

Actually listening to consumers in order to understand their wants and needs builds user loyalty,
creating brand evangelists who will spread the word and act as online defenders of the company brand.
Moreover, by monitoring what people say online about its products, Pepsi is able to manage user
complaints in real time, before they take on a life of their own.

DATA AGGREGATION

Unlike traditional, harder-to-track advertising methods such as TV and print, social media provides a
wealth of statistics about the age, gender, demographics, interests, and reactions of consumers. As
Smith notes, "With digital, you end up with a lot of extra data, and you end up with a lot more
understanding of who your consumer is."

This consumer data helps Pepsi refine its consumer engagement model, the effect of which is to attract
new fans, and thus more data.

GEO-LOCAL REACH

Pepsi is hopping on the newest trend in social: SoLoMo, or Social, Local, Mobile. Thanks to the massive
consumer adaptation of smart phones, companies like Pepsi can integrate social media with location-
based mobile marketing.

Why do so? Because Pepsi can be more surgical about reaching populations in specific geographic areas.
"We're seeing good results from that," Smith says, explaining that the company can target local
audiences with specially tailored advertising messages fueled by location information provided in
Facebook profiles. ¹

This kind of micro-targeting allows brands to hunt consumers with a high-precision rifle instead of a
shotgun.

INBOUND MARKETING

Out with the push, in with the pull.

Pepsi has recognized that the tech-enabled power shift to the consumer has effectively neutralized
many traditional forms of outbound, or push, marketing. Today's savvy consumer wants to be listened
to and courted by marketers. They want direct channels of communication to brands. In short,
consumers expect brands to employ inbound marketing best practices as an engagement model.

When done properly, this approach is a win-win for brands and consumers. Pepsi's social strategist
George Smith recognizes the mutual benefit of direct consumer interaction: "It's nice to be able to have
that direct conversation with them, and not have to rely on a specific media channel to push this, or buy
TV constantly to push that message," he says.¹

By last count, Pepsi's 8,181,075 Facebook fans agree.

Is your brand using these five aspects of social media? If so, how? If not, why?

-----5-----
Coca Cola is often cited as a digital leader, referenced by tech providers such as Salesforce, SAP
(SuccessFactors) and ServiceMax as being a prime example of an innovative customer. I’ve seen fewer
references to rival PepsiCo, which is unfortunate as a primary strategic objective of the firm is to find
ways to connect with digital-age consumers.

Or as CEO Indra Nooyi puts it, the challenge is around:

connecting with consumers in the age of social and digital media and the purpose-driven consumer.

To that end, PepsiCo is looking to a number of integrated digital and offline marketing outreach
programs, such For The Love of Sports. Built around PepsiCo’s Gatorade brand, this is a US campaign
that encourages athletes to think about and hold on to that moment when they were younger and
further in love with sport. Nooyi explains:
The multi-faceted campaign features a national retail promotion, TV commercials, and a unique cause
initiative that encourages consumers to vote for deserving sports-focused organizations to which
Gatorade will donate on their behalf.

While social media outreach will be critical, the retail component is built around creation of limited-
time-only bottles featuring athletes such as Usain Bolt, Serena Williams, Paul George and April Ross with
a special callout of the For the Love of Sports cause initiative.

Gatorade has partnered with a 19 sports-focused non-profit organizations, five of which were selected
by a roster of athletes featured on the limited time offer bottles. For the remaining 14 organizations,
consumers will have the opportunity to vote for their favorite online to receive donations that will help
athletes pursue their love of sport.

Elsewhere, digital outreach is being used in a bid to get consumers to keep eating porridge in the
summer months, tempting them via means of online tutorials and education to promote the concept of
‘overnight oats’. Nooyi explains:

We have collaborated with influential foodies to bring consumers quick and easy online tutorials on how
to make delicious and nutritious jars of chilled overnight oats perfect for days when you just need a
simple, no-cook recipe.

As well as this, there’s a use of crowd-sourcing in the shape of a Bring Your Best Bowl contest, a
nationwide search for the next Quaker oatmeal flavor. This is an ongoing exercise, says Nooyi:

Millions of consumers submitted creations using two to five ingredients, along with their inspiration
behind their idea. Three finest flavors are now being developed by Quaker and will be revealed on
around National Oatmeal Day, which is October 29. The selected flavors will then be made available in
stores across the country for consumers to taste. Then it’s up to America to vote online before the
winning flavor is revealed in February of 2017.

In similar mode, consumers are being asked to go online to decide which flavors of Lay’s potato chips
should survive and which should go, Nooyi says:
Consumers were invited to visit flavorswap.com to vote for their favorite flavor in each of the four flavor
swap matchups. We received millions of customer votes, drove tremendous social media buzz and
consumer engagement and strengthened Lay’s brand awareness in regard.

Emojis

So far, so X-Factor, a good use of social media and online engagement. Rather more innovative is an
initiative involving emojis in a new way. Nooyi explains:

To support trademark Pepsi this summer, we’re taking the world’s global language, emojis, offline in a
visually striking and socially-shareable campaign, inviting consumers to Say It With Pepsi from a smirk to
a kiss to a wink. This initiative connects cola lovers around the world through a common language that is
uniquely and definably Pepsi.

The PepsiCo design and innovation center has created more than 600 PepsiMoji designs, all
incorporating the brand’s iconic globe shape and the colors of blue, red and white. Nooyi expands:

Both globally relevant and locally significant PepsiMojis designs come to life across the full Pepsi
portfolio and also beyond packaging in unexpected ways such as a fashion collaboration with designer
Jeremy Scott.

The limited edition Pepsi with Jeremy Scott Capsule Collection includes six styles of emoji-inspired
sunglasses featuring PepsiMoji designs. We have partnerships with famed photographer, Ben Watts, as
well as Daniel Arnold, a street photographer with one of today’s most enviable Instagram followings.
Their work shares the story of #PepsiMoji in the same non-verbal vein as emojis themselves with a
quirky, candid and playful tone.

We also have localized experiential content from vending machines in India that dispense Pepsi product
adorned with the PepsiMoji design that matches users’ current state of mind to online engagement in
Argentina where consumers can create a personalized PepsiMoji design or use PepsiMoji accessories to
fashion their selfies. And we also have a free PepsiMoji keyboard app that can be downloaded at the
Apple App or Google Play Stores.
It’s a big initiative on a global scale, says Nooyi:

Global television and original digital creative also showcase how communicating through PepsiMoji
icons can lead to unpredictable and memorable adventures and experiences. And consumers around the
world have already begun to experience #PepsiMoji in the US, Australia, Canada, India, Mexico, Russia
and Thailand. The global campaign is being featured in more than 100 markets around the world in
2016.

Back-end

Away from the consumer-facing front end, PepsiCo is also investing in digitally-empowered tech to
improve productivity in the back-end, says Nooyi:

In addition to marketing, we’ve also continued to invest in critical capabilities like R&D, the
establishment of our global design center and the creation of our global e-commerce group. To capture
productivity, we are increasingly leveraging automation and advanced technology, as well as the
development and deployment of global best practices, all to make our supply chain more efficient.

In common with global firms the world over, PepsiCo has spent more than its fair share on ERP over the
years. Nooyi says the firm is now seeing some benefits from that:

We spent a lot of effort, time, and money on putting in an ERP system when we invested in SAP. We
started that way back in 2000 and we’ve been doing that for the last 10 or 15 years. Putting in an ERP
system takes time, takes money, and now we’re beginning to see some of the benefits from that ERP
implementation. As we complete a lot of those implementations, we’re able to take out the costs from
those implementations and start to realize the benefits. So it’s streamlining the supply chain, the
organization, smart spending, and now the increased leverage from the SAP investment.

There are, in fact, now hundreds of supply chain productivity projects being rolled out across PepsiCo,
she adds:
We’re implementing automated high-speed packaging lines across the globe, increasing packaging line
speeds by up to 50%, while at the same time eliminating the bottleneck to total production lines and
significantly reducing labor costs.

To improve our water use efficiency, we have developed and are implementing technology and
processes that capture sugar and starch from wastewater streams. The waste sugars and starches are
then sold as byproduct. The resulting water stream can then be repurposed for secondary
manufacturing uses such as sanitation. This not only generates incremental cash flow and saves money,
it also reduces our water usage to advance our sustainability agenda.

Our global operations group is identifying and then lifting and shifting best practices developed by our
manufacturing teams around the world. For example, our manufacturing team in Romania developed a
refinement to our potato cutting process that can reduce raw potato waste by up to 2%. We’re now
implementing this process improvement in other plants around the globe.

Such a diversity of programs is paying off, says Nooyi, and on a globally-transplantable scale:

We’re capturing significant savings by using advanced logistics planning processes and tools, which
enable us to optimize both the mode and routing of material transport. These tools initially developed
and deployed in North America have been expanded to nine more countries and are generating 3% to
4% savings in transportation costs.

In key markets, we’ve also advanced our third-party transportation procurement process by
consolidating all transport-origin destination pairs across our food and beverage businesses to present
to the market for competitive bids. And we have the opportunity to expand this process to many more
markets.

Such investments are being combined with careful budget controls, concludes Nooyi:

Productivity is also being captured through the implementation of our smart spending program, which is
driving meaningful reductions in key discretionary spending areas like travel, facilities and consulting.
We’re attacking spending on both rate and volume dimensions.
So, for example, we’ve reduced meeting-related travel by insisting on the use of teleconferencing in
place of physical meetings in many instances. And as a result of all of our productivity efforts, we’re
capturing significant savings that are delivering meaningful margin improvement and also providing the
funding necessary to invest in the long-term health of the business.

My take

That PepsiCo is investing time and resource in the back-end as well as on gimmicky front-end social
media-assisted consumer engagement campaigns, is a plus point here. While finding new ways to
connect with the digital customer is clearly important, running the most efficient supply chain possible is
mission critical for a global giant like PepsiCo. Sixteen years on from starting to spend on ERP, it sounds
as though the benefits are coming through.

-----6-----
As its second quarter performance beats forecasts, Pepsi says it will prioritise premium products and
establishing a greater ecommerce presence.

By Rachel Gee 11 Jul 2017 3:30 pm

PepsiCo

PepsiCo plans to focus on pushing healthier products, ecommerce and using marketing to drive its top
line as it looks to build on steady growth despite headwinds in the soft drinks industry.

The company reported net revenue growth of 2% to $15.7bn during its second quarter ending 17 June;
this was slightly ahead of the $15.57bn it had originally forecast. And sales in its core North America
beverage unit also rose 2% to $5.24bn.

The company said it witnessed “good results” across Europe over the second quarter and had benefited
from the sale of its minority stake in Britvic. “We continue to deliver strong, reliable results – even as
our industry is witnessing some strong shifts,” insisted Indra Nooyi, chief executive at PepsiCo, speaking
on an investor call earlier today (11 July).
Nooyi said PepsiCo will continue to deliver strong results by transforming its portfolio to ensure it has
more reduced sugar options and focuses more on promoting premium products. She said it has already
reduced the sugar and saturated fat in its products to deal with growing customer demand for healthier
food and drink options.

READ MORE: Pepsi’s ad failure shows the importance of diversity and market research

“Going forward, we have paths in place to improve the trajectory of the business. We are trying to move
the portfolio to more premium products and to focus on price realisation, letting marketing drive the
topline,” she commented.

Nooyi admitted PepsiCo has more work to do on its healthier carbonated drinks portfolio, but said there
will be a stronger brand execution behind this during its sponsorship of the NFL in the autumn.

The firm will also go “more aggressively” after productivity to reduce costs and Nooyi said there is an
opportunity for Pepsi to look more at innovation for ecommerce, including looking at launching select
online grocery stores.

“We want to make sure our snacks are more deliverable, not just through click-and-collect. We want to
look at the cold delivery of beverages to support the exploding growth of ecommerce,” she explained.
“There are infinite possibilities to create impulse buying through technologies online.”

Furthermore, PepsiCo said it will also focus on analysing consumer habits and the lifestyles influenced by
mobile technology through a concentration on big data and communication with customers on a “much
more personalised level”.

-----7-----
Dive Brief:

PepsiCo is taking its social media marketing in-house according to Adweek.

The move comes a month after it put its digital agency, The Barbarian Group, under review.
The beverage company used the review process to shake up its agency roster in a traditional way, but
along with moving social media in-house it is now also allowing third parties to bid on other digital
marketing activities.

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Dive Insight:

Managing a brand's relationships on social is a nuanced undertaking that can require more direct brand
involvement. Pepsi's move highlights some of the unique challenges of social media, which provides
brands with an opportunity to connect on a more personal level with customers than traditional media.
At the same time, it opens the door to negative comments reaching a broad audience if not handled
correctly.

By choosing to shake up its digital marketing, especially exemplified by moving its social media outreach
in-house, Pespi is also providing another illustration of how the traditional agency/brand relationship
has shifted as marketing has become more data-driven and digital. Overall the traditional big players in
the agency space have been slow to react to the realities of digital marketing and changing needs of
marketers at big brands that once spent large marketing budgets with those agencies.

The Barbarian Group looks to be the big loser in the changes as digital initiatives go to other third
parties, with a major loss being Pepsi’s Super Bowl social media campaigns being handled internally.

The agency model “is not going to bend, it’s going go break. Agencies will continue to see more and
more projects leaving them … They will get a smaller and smaller share of the pie,” Pepsi marketing
executive Brad Jakeman speculated at an ANA event last year.
Adweek reported that both Pepsi and The Barbarian Group didn’t comment on the shift in digital
strategy.

-----8-----

Advantages of Sale promotion

1.

Sales promotion makes an immediate effect on sales

2.

It stimulates positive attitude towards the products

3.

It gives an extra incentives to the retailers/consumers to make anew purchase

4.

Measurement of the effectiveness of the sales promotion iseasier against the other promotional
methods

5.

It gives extra incentive to take immediate action now rather thanlater

6.

It has flexibility and can be used at any stage of a new productintroduction. Sales promotion is very
effective in this regard

7.

Products are becoming standardized and similar and so needincreased support of non-price factors of
which sales promotionis important

Limitations of sales promotion1.

Sales promotion has temporary and very short life span. Salespromotion alone cannot build up the
brand loyalty
2.

Sales promotions are only supplements, devices to supplementselling efforts of other promotion tools

3.

They are not recurring in their use. They have seldom reusevalue

4.

Too much sales promotion may affect adversely the brand image,suggesting its lack of popularity of
overstocking by the company

5.

Advertising agencies accord law status to sales promotion so thatthey may be trained for more creative
jobs

6.

Sales promotions are ineffective in lack of proper planning andresearch for sales promotion

3. Public relation and Publicity

As public relation is a management tool designed to favourably influenceattitudes towards an

organization, its products and policies, whereaspublicity is any communication about an organization, its
products andpolicies through the media which is not paid by the organizationBut beyond this, Pepsi
goes for

“Marketing

Public Relation

(MPR)”

wherethe company directly support corporate product promotion and imagemaking. This is the
responsibility make for marketing division rather thanpublic relation department.To promote its
products through Marketing Public Relation, Pepsi hasvarious tools,

Organizing events:
Pepsi organises, sponsors and co-sponsors variousgames and sport events to get publicity, through
electronic and printmedia. These games may be played at local, national and internationallevel. Besides
this the company also sponsors various functions andindoor games at local levels.

Music and Dance Programme:

Time to time, Pepsi sponsors variousmusic and dance programs in different cities across the country.
This typeof events organized by Pepsi has become very helpful ini. Building the corporate image
favourable in publicii. Boosting the sales force and dealer enthusiasm. They feelproud to speak about its
productsiii. Influencing specific target market and bringing interest inproduct category

4. Personal selling

Conceptually there is not any place for personal selling in soft drinkindustry. It falls into illegal trade.
However Pepsi adopts surrogate natureof personal selling. As soft drink allows the company to
communicate frequently and directlywith wholesalers and retailers than consumers. For clear and
reliablecommunication, the company appoints

“Territory

sales

executive”

in everymarket segments. The main work of territory sales executives is tocommunicate with
wholesalers and retailers of their concerned marketsegments on regular basis.Besides they also play the
watchdog in the market. They observe thebrand position in the market and compare it with

competitor’s

brand andplace the report to area sales manager. They also see that there is nomuch fluctuation in the
supply of

Pepsi’

s products in the market and theproducts are available to consumers with ease especially in the
peakseason (March to September). The distributors are also involved in thepersonal selling. For this they
appoint salesman as per the instructionsand guidance given by the company. The company provides the
trainingfacilities to salesman when required by the distributors.For good and effective merchandising a
salesman performs followingfunction such as:i. The salesmen are one of the best chains to cultivate
thegoodwill to all the selling workii. He checks the stocks, maintains a plan and fulfils thedemand
through the requirement.iii. He educates the dealers about the method of refrigerationof soft drinks
iv. He tells his dealers about the method and good way of putting soft drink on display.

Incentives

Suggestion scheme awards:

if anybody gives any suggestionregarding the product quality and promotional activities the
companyawards prizes to the best suggestion either in cash or kind.

Man of the month:

For increasing the sales the company also hasan arrangement of giving the prize who achieves the
targetsuccessfully

Man of the year:

The company also gives an annual prize to thebest performer in the sales of the products over the whole
year

------9-----
We are discussing the marketing mix of Pepsi. We know that the marketing mix is a dynamic process and
is always changing with respect to price and promotions. Thus, kudos to Pepsi, which has always kept
changing their marketing mix with the changing environment. Here is the Pepsi marketing mix or the
4P’s of Pepsi.
Product in the marketing mix of Pepsi

There are 2 main product types in which Pepsi is present in India.

Beverages

Soft drinks – 7up, Duke’s, Mirinda, Mountain dew, Nimbooz, Pepsi, Slice, Tropicana,

Mineral / Bottled water – Aquafina

Sports Drink – Gatorade

Food Products

Snacks – Cheetos, Kurkure, Lays, Lehar, Uncle chipps

Breakfast – Quaker oats

Thus, Pepsi, unlike its major competitor Coca cola, has expanded in the breakfast as well as snacks
segment. Coca cola on the other hand is present only in the beverages section. The advantage of Pepsi’s
snacks segment is that brands like Lays, Kurkure and Cheetos are in great demand. Quaker oats which is
a recent addition is also increasing in demand. Thus the turnover resulting from the Food products is
helping the bottom line of the company.

Price in the marketing mix of Pepsi

Pepsi is in an industry which is dominated by the two biggies – Coca cola and Pepsi. Thus the pricing of
Pepsi is competitive. In a war between Coca cola and pepsi, neither of the brands can win if they enter a
price war. This is because the cost of manufacturing and transportation is huge. Thus, these companies
are likely to enter a brand war rather than enter a price war.

Pepsi is known to give promotional discounts as well as discounts on bulk buying. For customers, as the
container size rises, the discounts also rise. Thus a 2 litre bottle of Pepsi will be relatively cheaper per
100ml as compared to a 250 ml pack. For distributors, the discount is based on the quantity as well as
the payment terms. The better the payment terms or the higher the quantity, the more is the discount
given thereby keeping the distributor motivated.
However, Pepsi has to lower its price for the top retailers and bulk buyers. For example – Indian retailers
like Big Bazaar, Reliance fresh, as well as hypercity are bulk buyers. Similarly fast food chains like
Mcdonalds, KFC are also bulk buyers. These bulk buyers negotiate with the soft drink brands on the
basis of price and sell their products in huge quantities. Thus, pepsi has to drop prices in these places
which affects the operating margin of the brand. The margins of the company are better through the
distributors and lesser through bulk buyers. However, the sales of the company are higher to bulk
buyers as compared to distributors.

Place in the marketing mix of Pepsi

Pepsi has a huge distribution network in India. It has to be huge because the brand needs to be present
in every nook and corner of the country to increase its sales. The primary mode of distribution is
through distributors who in turn give it to retailers, restaurants, and convenience stores. The secondary
mode of distribution is directly through the company to bulk buyers and major retailers who buy directly
from the company.

Thus distribution channel is as follows

1) Company > Distributor > Small retailers / Small buyers > End customer

2) Company > Bulk buyers > End customer

As cost is saved in the 2nd example, companies are able to give better margins to Bulk buyers. The
major challenge in distribution is the cost of bottling as well as the cost of transportation.

Bottling of Pepsi is done at bottling plants. In India, Pepsi has 36 bottling plants out of which 13 are
franchisees whereas 23 are company owned. The soft drink once packed is moved to the company
warehouse from where it goes to distributors and bulk buyers.

Several of pepsi’s soft drink distributors themselves might act as distributors of Kurkure, Lays and other
snacks products as the distribution is through the same channel. The products are also sold from the
same convenience store. Thus, it makes sense if the distributor of the soft drink is given the authority to
distribute snacks as well. However, in some cases, the distributor of soft drink might be separate from
that of Snacks.

Promotions in the marketing mix of Pepsi.

One of the strongest reason Pepsi retains its brand image is its promotions. Pepsi targets mainly
youngsters through various Brand ambassadors. In India, the brand ambassadors have been the best
celebrities as well as sports person of the country including Sachin tendulkar, M S Dhoni, Amitabh
Bacchan, Ranbir kapoor and others.

Mountain dew has a message of “Darr ke age jeet hai” which is again focused on adventure sports
thereby targeting youngsters. Snacks like Kurkure and Lays target different segments. Kurkure is known
to target household snacks and middle aged group whereas Lays targets youngsters and the party mood.
Gatorade targets only sports as it is a sports drink. And Quaker oats, which is a recent launch as
compared to the other products, targets breakfast with a bit of masala.

Pepsi uses all the media channels for its promotions. Along with ATL, pepsi is also present in BTL
marketing. Furthermore, along with traditional media channels, Pepsi also uses trade promotions and
sales promotions at point of purchase. Discounts and packaging are always being bundled to give the
best combination and value to the customer to increase purchases as well as the brand equity.

The bottomline is that Pepsi cannot exist without the proper promotions. This is because Pepsi belongs
in the FMCG market, and in FMCG, you either perform or perish. The FMCG market is one of the
toughest market for businesses. However, Pepsi is not only surviving, but it is thriving in the FMCG
market. Thus, hoping that Pepsi keeps re inventing its marketing mix so that it remains in the top 2
category of soft drinks.

-----10-----
Understanding the branding strategy of Pepsi goes beyond the listing of a set of steps which can
effectively summarize their strategy. The entire strategy revolves around the company’s response to the
changing dynamics of consumer psychology. This article makes an attempt to unscramble the
complexities involved in the branding steps undertaken by Pepsi and the impact of the marketing
campaigns undertaken by the company.
Before we try to study the competitive environment in which Pepsi operates, it is necessary to
understand the mechanics of PepsiCo’s entry into India. This is essential because the pillars of the
success of PepsiCo’s brand were laid in the early years of its entry. Till 1977, Coca-Cola was the leading
soft drink company in India. However, the regulations in the country laid down by the Foreign Exchange
Regulation Act (FERA) and orders by the Indian government to reveal its secret recipe forced Coca-Cola
to exit the Indian market. PepsiCo entered India in 1988 through a joint venture. The joint venture sold
PepsiCo products under the Lehar brand (Lehar Pepsi). Post liberalization in 1991, the requirement for
foreign companies to operate with a minority stake was relaxed, and PepsiCo bought out its partners.

Pepsi introduced its products in India at a time when the adoption of Western products by Indian
consumers was on a rise. It did not have any significant competition in the country at that time and the
late entry of Coke (1993) enabled Pepsi to establish a stronghold in the Indian markets. The Pepsi brand
became synonymous with soft drinks and this helped the company in dominating the cola category in
the early years.

Classification of Soft drink market

The soft drink market can broadly be classified into cola and non-cola drinks. The cola segment
commands a market share of around 62%. The non-cola segment consists of soda, flavoured drinks and
lemon drinks. For PepsiCo, while Pepsi is in the cola category, 7UP, Mirinda, Mountain Dew and
Nimbooz populate the non-cola category. Other brands in PepsiCo portfolio include Aquafina (drinking
water), Gatorade (sports drink), Tropicana (fruit juices), and Slice (juice-based drink). The brands operate
independently but a change in the market patterns can make the parent company shift its focus from
one brand to another.

Positioning of Pepsi

Since its inception, Pepsi has always targeted the youth segment. The changing demands and
sentiments of the younger generation in the country have resulted in changes in the positioning of
Pepsi. This can be observed from the changes in the taglines, logo, advertisement messages and means
of communication of messages.
From ‘The choice of a new generation’ (1990), Pepsi has introduced a number of new taglines reflecting
a shift in focus of the youth. ‘Yeh hi hai right choice baby, Aha’ was introduced in 1992, ‘Yeh Dil Maange
More’ in 1999, ‘Yeh Pyass hai Badi’ in 2004 and ‘Yeh Hai Youngistaan Meri Jaan’ in 2008. The current
Pepsi tagline is ‘Change the Game’ which started with company’s association with the 2011 Cricket
World Cup and was successful in creating a prominent brand recall in the minds of the consumers. Pepsi
advertisements have also been targeted at the youngsters. Pepsi focussed on two of the biggest
obsessions of the Indian youth – Cricket and Bollywood – to design its advertisement campaigns. Even
the hoardings, posters and print ads expanded on this theme. Popular celebrities from these two
domains were used to generate a connect of the brand with the youth. These celebrities are treated as
role models and trend setters for the youngsters and Pepsi has tried to make use of these desired
qualities to project its brand. Its youth focus can also be observed from the change in its brand icon from
Sachin Tendulkar to Mahinder Singh Dhoni. The success of the Indian cricket team in the recent times
(specially the World Cup) has gone a long way in strengthening its brand value in the minds of the
consumers.

[sociallocker]

Pepsi has even tried to leverage its logo as a means of connecting with its target consumers. Recently
the Pepsi logo was modified to create a connection with popular emoticons. These changes in logo were
undertaken at the global level but as a result of internet activities, they were also able to generate buzz
among Indian youth.

Pepsi has also used internet as an effective means of reaching its target consumers. It has run a large
number of digital campaigns and contests (‘Youngistan Anthem’ being one of the examples). The Pepsi
facebook page serves as another means of connecting with its customers. It runs various contests, polls
and campaigns on its facebook page to create a constant buzz.

Despite the evolving messages and communications, the central theme has always revolved around the
youth and Pepsi has made sure that it stuck to the core theme of being associated with what the youth
represents. The impact of the branding activities has been such that it has been successful in creating a
craving of Pepsi ads among the youth.

Other initiatives/incidents affecting Brand Image

Apart from the marketing activities, PepsiCo has also taken up initiatives which help in the enhancement
of its brand image. The setting up of an agricultural research centre in India was one such measure.
PepsiCo also helped in the setting up of food and vegetable processing plants in Punjab which provided
employment to farmers in the region. Apart from showing the company (and its brands) in a positive
light, it also benefitted PepsiCo in its processed food business.

The Pepsi story has not always been one of positive brand building. In 2003, Pepsi, along with Coke,
found itself in the midst of pesticide controversy. It was reported that the colas contained pesticides and
insecticides in excess of what is allowed by the European Economic Commission. Though they were later
cleared, the images of the brands suffered a huge negative impact. It took a substantial time for the
companies to restore the faith of the consumers in the brands.

Distribution network

A strong distribution network has gone a long way in making sure that the marketing strategies have
been converted to actual sales. In addition to branding strategies, the company also comes up with
promotional strategies from time to time (E.g. freebies with its 2L packs). These further help in boosting
the sales of the product.

Competitive landscape

If we go by the market shares, Coke lags Pepsi in market share in the cola segment (according to
Euromonitor). However, both these brands command a market share less than that of Coca-Cola’s other
cola brand, Thumbs-Up. Overall, the cola segment has seen a reduction in growth in the recent years.
Despite this, Pepsi has been able to generate a healthy increase in sales (20% in 2011) as compared to
other brands (8% for Coke).

The brand trust rankings of the major brands are volatile and also vary among different surveys
conducted. While Coca-cola brand was rated higher in one survey, Pepsi got higher ratings in another
major survey.

Challenges and Trends

In light of the tough competition in the soft drinks segment, both Pepsi and Coca-cola expanded their
portfolios and ventured into other categories like fruit juices and mineral water. The companies are also
foraying into tea and milk based drinks in response to the high preference of Indian consumer for non-
carbonated drinks (tea, milk and coffee).

The increasing health-conscious segment is also shifting from the cola drinks to healthier alternatives.
This can be one of the reasons for the declining growth rate of the segment. In response to these trends,
Cola companies are coming up with new ways to attract consumers. Diet Pepsi was a product innovation
by Pepsi in response to the changing requirements.