PEPSICO

PepsiCo, the world’s second largest beverage company, is a globally renowned brand. Its
multiple product-brands are sold in nearly 200 countries. For fiscal year 2004, PepsiCo had
revenue of $29.2 billion and net income of $4.2 billion. The company is headquartered in
Purchase, New York.

By the middle of 20th century, Pepsi began its diversification drive beyond the soft drink industry,
and by 1965, Frito Lay of Dallas, Texas, and Pepsi Cola merged to form PepsiCo. There is a
strong connection of PepsiCo’s global operations. Indra Nooyi is the chairperson and Chief
Executive Officer of PepsiCo.

Marketing
Initial marketing of PepsiCo was based on the cost advantage of Pepsi. Pepsi made advertising
history by creating the first advertising jingle that was nationally broadcasted. The jingle
“Nickle,Nickle” went on to become record and was translated into 55 languages. Besides it
Pepsi tried many daring ideas like -In 1975, Pepsi introduced the Pepsi Challenge marketing
campaign where PepsiCo set up a blind tasting between Pepsi-Cola and rival other companies.
During these blind taste tests the majority of participants picked Pepsi as the better tasting of
the two soft drinks. PepsiCo took great advantage of the campaign with television commercials
reporting the results to the public.

Use of Information Technology in Marketing of Pepsi

Use of Information Technology is very important for any company in these days. Since PepsiCo
is a giant in beverage field form year 1905, it has occupied approximately 43.2% market of soft
drinks all over the world and 30.8% market share in U.S. (according to Beverage Digest’s 2008
report). PepsiCo occupied this place in market by its innovative and daring marketing strategies.
PepsiCo spend approximately $1.6 billion every year on advertising in different mediums like
electronic media, print media and for different contests which are part of its marketing.

Advantages
PepsiCo have been using Information Technology for marketing of its products since year 1923
(when company converted into a global company). Company advertised its product very
aggressively and got a huge amount of benefit all over the world. Company did many contests
and programmes time by time to enhance its sale. .
In late 2008, Pepsi overhauled their entire brand, simultaneously introducing a new logo and a
minimalist label design. The redesign was comparable to Coca-Cola's earlier simplification of
their can and bottle designs. Also in 4th quarter of 2008 Pepsi teamed up with Google/Youtube
to produce the first daily entertainment show on Youtube. This daily show deals with pop
culture, internet viral videos, and celebrity gossip. Poptub is refreshed daily from Pepsi.

In 2009, "Bring Home the Cup," changed to "Team Up and Bring Home the Cup™." The new
installment of the campaign asks for team involvement and an advocate to submit content on
behalf of their team for the chance to have the Stanley Cup delivered to the team's hometown
by Mark Messier.

Opportunities
PepsiCo joined its marketing strategies with games majorly with cricket. On July 6, 2009, Pepsi
announced it would make a $1 billion investment in Russia over three years, bringing the total
Pepsi investment in the country to $4 billion. Pepsi also has sponsership deals in international
cricket teams. The Pakistan cricket team are just one of the teams that the brand sponsers. The
team wears the Pepsi logo on the front of their test and ODI test match clothing. Pepsi has
official sponsorship deals with three of the four major North American professional sports
leagues: the National Football League, National Hockey League and Major League Baseball.
Pepsi also sponsors Major League Soccer. PepsiCo defeated its rivals in India, Pakistan and
Saudi Arabia and many other rivals by its effective advertisement and communication.

Threats
As like other businesses PepsiCo have also been facing some threats from its rivals. Coca Cola
(another prime company in beverage field) is also a global company and biggest competitor of
PepsiCo in beverage field. Some expert said that Coca Cola has more effective
advertisement in most part of the world than PepsiCo. According to Beverage
Digest's 2008 report, PepsiCo's U.S. market share is 30.8 percent, while The Coca-Cola
Company's is 42.7 percent. Coca-Cola outsells Pepsi in most parts of the United States. The
Coca-Cola Company and PepsiCo together held 95% market share of soft-drink sales in India.
Coca-Cola India's market share was 52.5%.Pepsi was banned from import in India in 1970 for
having refused to release the list of its ingredients.

So PepsiCo have to be more innovative and clear about its principles to outcome these
problems.