Pepsi Sources of Competitive Advantage

Pepsi : An Introduction 

Pepsi is a leading soda beverage brand with a large customer base. It is a global brand with several billion dollar brands in its portfolio. Its only major rival is Coca Cola. Pepsi is the favorite of Billions around the globe. The company sells its products in more than 200 countries. It has a large product portfolio that consists of various flavors. Pepsi has a global sales and distribution network. In the recent years, the company has focused on creating new channels of growth. The company also has focused on digital engagement of users. one of its videos went viral to grab more than a billion views. Technological change as happened fast in the recent years and the company has focused on digital innovation to improve its productivity, agility and innovation.

Chairman of Pepsi’s Board of Directors and Chief Executive Officer is Ramon L Laguarta.

Sources of Pepsi’s competitive advantage

Brand equity:- 

Brand equity is a major strength of Pepsi. It has a strong image and large customer base. Brand equity does not just help it with marketing its brand and product portfolio but also helps retain customers. It has strengthened its brand equity by investing in quality and technological innovation. Other factors that have helped it strengthen its equity are its focus on CSR and employee management. Trust and equity are important factors that are important to strengthening your brand image in the market.

Overall, the value of brand equity is greater than everything in the business world. Global growth cannot happen without strong brand equity. Moreover, Pepsi invests in efforts that help it build a better image and create higher equity and loyalty. Pepsi is also investing in sustainability and working to reduce its environmental footprint. All these factors are good for brand equity.

Global presence:-

Pepsi is a global brand and sells across more than 200 countries. It has a large network of suppliers and distributors which have helped it maintain its global presence. Pepsi’s global business is divided into six key reportable segments that are Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), North America Beverages (NAB), Latin America, Europe Sub-Saharan Africa (ESSA) and Asia, Middle East and North Africa (AMENA). Independent distributors and retailers have helped Pepsi reach every corner of the globe. Each of these divisions has warehouses, plants, distribution centers, storage facilities, offices and other facilities.

Pricing strategy:-

Pepsi’s pricing strategy is also a major strength. It has priced its products affordably. This has helped Pepsi reach a large customer group throughout the globe. Affordable pricing has also led to higher sales and revenue as well as popularity. The company has made its products available in all corners of the world in various packs and sizes. From small one serving packs to large family packs, its products are available in sizes that suit varying needs. Pepsi also offers attractive deals from time to time to attract customers.

Product portfolio:-

Pepsi’s product portfolio consists of more than 20 beverages and snacks brands. Several of them are hit products that are best sellers across the globe. Some of them generate more than a billion in revenue each year. Frito Lay and Pepsico had merged in 1965. The leading beverages that the company (North America Beverages NAB) has made include Pepsi, Aquafina, Diet, Mountain Dew, Diet Pepsi, Gatorade, Mist Twist, Mountain Dew, Propel and Tropicana. Pepsi’s quaker Foods makes, markets, distributes and sells Aunt Jemima mixes and syrups, Cap’n Crunch cereal, Life cereal, Quaker Chewy granola bars, Quaker grits, Quaker oat squares, Quaker oatmeal, Quaker rice cakes, Quaker simply granola and Rice-A-Roni side dishes. Pepsi’s range of healthy products has grown in recent years. Apart from juices and waters, Pepsi has also brought more low and zero calories foods.

Marketing :-

Pepsi’s marketing strategy is a key strength. It is famous all over the world for its excellent marketing. Pepsi’s advertising is a major strength. It’s name is also a part of its logo and the company has a great advertising strategy that has helped it become a leading brand name in the world. Pepsi uses several channels for marketing its brand and products. In the recent years, it has started using digital channels in plenty for growth of market share and customer base. Video marketing is a key strategy that Pepsi has used. One of its videos achieved more than a billion views in China. Its Greater China segment celebrated sixth year of the success of its Bring Home Happiness Campaign.

Brand loyalty:-

Pepsi’s large base of loyal customers is also a key strength. There are billions around the world that love Pepsi and its flavours. It is why Pepsi and its products are best sellers in most parts of the globe. Its packaging, pricing and marketing have helped it build customer loyalty and a distinct image. Customer loyalty brings growth and revenue. Pepsi has focused on both product quality and marketing for making its customers its loyal fans. Its product portfolio includes more nutritious products and healthy, zero calories beverages.

Customer base:-

Pepsi’s large customer base is a major strength. There are billions of fans of Pepsi all throughout the globe. If Pepsi is a rich and profitable company, the reason is its large customer base. Billions of customers like Pepsi products and follow the brand loyally. It also invests a large sum each year in marketing and advertising. It spent more than 4.1 billion dollars in advertising and marketing in 2017. Pepsi products sell across more than 200 countries. You can imagine the size of its customer base. It is a major marketer, employer and a well-recognized brand.

Conclusion:-

Pepsi has grown into a globally famous soda beverages company. Its leading rival is Coca Cola. However, its market leading position is possible because of the several sources of competitive advantage it has achieved. The company is also a leading marketer and a major employer. It has a large and loyal base of customers all around the world. These several strengths have helped the brand achieve an edge and become a leading soda brand.

Sources:

Pepsi Annual Report.