This generic strategy enables business competitive advantage by attracting consumers to some unique features of the firm’s products. However, the content is not the same across all the Twitter accounts since the accounts differ from country to country. International business strategies have become very important in the wake of increasing globalization, as well as, internationalization of established local companies as they attempt to increase their values in the market. Digitalization has helped Pepsi respond faster and better to the customer demand. Pepsi has continued to innovate its marketing and business growth strategy over time so as to retain its popularity and increase demand. On Facebook, Pepsi has more than 37 million followers. Assisting 6 million women and girls through investments in communities throughout the world. These posts are liked and shared by its followers. Mountain Dew has more than 8.5 million followers and Pepsi Max also more than 1 million [4]. It also presents new challenges and risks. ... it's likely effective in distilling a more elaborate strategy into generalities the entire PepsiCo employee base can rally around. Brief History 2. The following are the most significant strengths of PepsiCo: 1. See our Privacy Policy page to find out more about cookies or to switch them off. Its another promotional campaign titled ‘Made for This’ targeting the millennial generation and featuring High school athletes was also highly popular. PepsiCos generic competitive strategy is based on the need to address market pressure coming from its biggest rivals, including the Coca-Cola Company. Just like Facebook, videos of promotional events are also shared on Twitter which helps it reach its millions of followers. For example, PepsiCo continues to develop products or variants of existing ones, such as low-calorie, reduced-salt, or low-saturated-fat variants of its food and beverage products. In this article, a detailed discussion of how Pepsi obtains a competitive advantage by adopting generic and intensive growth strategies is made. Pepsico has positioned its brand and products very well in the market. Digital innovation is one of the megatrends that has affected Pepsi’s business growth globally. Moreover, the Facebook and Twitter accounts can be used to keep fans and followers updated. Its customers are from all income segments including lower middle class to upper class. As Kendall succinctly related to Forbes in 1968, “Potato chips make you thirsty; Pepsi satisfies thirst.” The plan was to jointly market PepsiCo’s snacks and soft drinks, thereby giving Pepsi a potential advantage in its ongoing battle with Coke. Developing new products and ingredients as well as flavours and products. Segmentation is the important strategy which helps the brand in targeting the specific group of customers with differentiated offerings.. Pepsi is the mass market product which uses … Before moving on to the details of Pepsico’s marketing strategy, take a look upon how it has positioned its brand and products in the market. Published. This reveals that Coke is still the most valuable brand of the soft drink market. Big Data is also helping understand and cater to customer demand for food products in North America. Pepsi is using IoT capabilities to know when plant equipment will need maintenance as well as how to reduce energy consumption [1]. Pepsi co diversification strategy case analysis 1. Key players Pepsi Cola in Pakistan Pepsi-Cola is one of the best soft drink in the world. Now, it has also released smaller options for its several soft drinks to make its products more affordable and accessible. Unfortunately, these plans were eventually scuttled by the resolution of a Federal Trade Commission antitrust suit brought against Frito-Lay in 1963. However, this investment excludes the cost of consumer research. Pepsico’s success and growth can partly be attributed to their marketing strategies. PepsiCo's biggest lever in this endeavor is to increase the revenue of its largest profit driver, Frito Lay North America, or FLNA. 2019. Product innovation becomes essential because of continuously evolving tastes of the consumers and there are other factors too that necessitate continuous changes across the product spectrum. However, its commitment to health and excellence has served the brand well in 2017, when it again delivered strong operating performance. This intensive strategy supports business growth by capturing new markets or market segments. Corporations are adopting various strategies such as product standardization and differentiation, adapt… Carbonated soft drinks are on the decline. Its customers include the teenagers and youth with a modern and fast moving lifestyle. Nature of business 6. This video grew so popular that people watched it more than one billion times. It was formed after the merger of Pepsi and Frito lay in 1965. The company offers a diverse array of products. Development of products with better nutrition profiles that reduce added sugars, sodium or saturated fat using sweetener alternatives or flavour modifiers. On the other hand, PepsiCo’s intensive growth strategies are a response to the evolving global food and beverage market conditions. Pepsi’s soft drinks are popular because of their diverse flavors. This generic strategy focuses on cost minimization as a way to improve PepsiCo’s financial performance and overall competitiveness. There are 22 iconic  billion dollar brands in its portfolio.