Pepsi-Cola company review

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Pepsi-Cola Pepsi's beverage business was founded by a pharmacist named Caleb Bradham who created a special beverage, a soft drink, in the back room of his drug store in New Bern, North Carolina (Pepsi Co, 2004). It has become one of today’s leading soft drink with nearly $20 billion in worldwide retail sales (PepsiCo Inc., 2003), and like what coke has, Pepsi also has a variety of products in the world, such as Pepsi-Cola, diet Pepsi, Pepsi max, mountain dew and so forth.

In this report, we will specifically focus on Pepsi-Cola, and the aim of this report is to summarize and analyse Pepsi’s growth strategy as well as its marketing strategies.

Firstly, the background of Pepsi Company and their products will be summarized.

Secondly, four elements or components will be analysed in this report, which are based on:

  • Product
  • Price
  • Place
  • Promotion

Finally, some recommendations relative to Pepsi’s marketing strategy will be suggested.

In order to make the information of this report accurate and forceful, several valuable sources were used to analyse. Those sources including:

  • Marketing textbook
  • Academic paper
  • Internet
  • Online business magazines


Pepsi Co. is a Multinational corporation, which extends over many countries; Pepsi and Frito-Lay merged in 1960, which named the new company Pepsi Co. Besides, Pepsi Co. has merged with some other companies such as Gatorade, which became the world’s fifth-largest food and beverage company with 15 brands.

The company operates in a monopolistically competitive market, where its biggest competitor is Coca-Cola. Pepsi brand name and its strategic message ‘it’s the cola’ have already penetrated the world market. In this case the brand name ‘Pepsi’ is very effective in differentiating its product from the others. Within the soft drink industry Pepsi is considered to be a middle class drink and Pepsi offers quality product that provides assurance to the public.

Pepsi is undertaking both advertising and marketing campaigns around the world, its advertising campaign include TV, magazines, in-stores, outdoors and on the Internet. The marketing campaigns it undertook include lucky draw and promotions. For example in Singapore there is a promotion done by Pepsi that for every 6-pack of Pepsi you purchase you can have a turn on the fortune wheel to win prizes such as Pepsi t-shirt, more Pepsi drinks and cash prizes. This is done when the economy is in recession and Pepsi is trying to boost up its company and product image.

Pepsi’s target market has usually been the middle-income family, as Pepsi is not as expensive as Coke and not as cheap as the other brands. Pepsi around the world usually target toward young people early teens to late twenties, however this is still based on location and in China the target market are usually people from early teen to their late thirties.

Pepsi-Cola has been around for more than a hundred years. It is first produced in 1898 and in the earlier times, Pepsi is target against African Americans and it is not until later that Pepsi started to target the younger population for all races.


Pepsi, one of the most famous brands, can be identified easily as it is been on various finest soft drinks available almost all over the world for over 100 years. The Pepsi logo has become a remarkable feature in United Stated of America indicating an ‘ice blue background’ synonymous with Pepsi products. The Pepsi-Cola website points out that at Pepsi-Cola, quality taste and consumer satisfactions are the highest priorities (, 2004).

Kotler (Kotler, 2004, p110) identified the meaning of products is the branded ‘goods and service’ offers to the target market. For classic Pepsi cola, which is the widely sold Pepsi soft drink, price sensitive segment becomes one of the most important factors for target marketing. Moreover, for the target customers, Kotler (Kolter, 2004, p111) identified the product elements that attract them as shown below:

  • Variety
  • Quality
  • Features
  • Brand name
  • Packaging
  • Sizes
  • Add-ons
  • Warranties
  • Returns

Using the above methodology, Pepsi World shows how Pepsi is made to introduce the quality and features of classical cola (, 2004). At the same time, the website indicates that each ingredient of producing Pepsi-Cola must pass high standard, rigorous quality control tests and strict bottling procedures all over the world. It can be proved that both the high quality and famous global brand make Pepsi-cola so successful to compete with Coke-cola. Currently, Keiley mentioned that Pepsi-Cola sales are up in America compared with the Coke-cola, which was particularly disappointing because the careful balance of pricing and marketing (Kiley, Coke leaves a bad taste on the street, internet, 9/15/2004). Targeting a suitable marketing is essential for the success and Pepsi-Cola sets lower prices as the key at high quality. Pepsi-Cola can be a warranty as its famous brand.

It is known that consumers prefer lightweight, recyclable, plastic bottles. In order to meet customers’ needs and make them easy-to-use, the packagings of Pepsi-cola had tried many different industries but it always follows Environmental Support and Recycling of USA. Now, it is reported that the ‘cube’ as a new innovative 24-can Pepsi multipack is used by a small test market population to give the company feedback before the introduction (, 2004).

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There are also many sizes of bottle to satisfy different kinds of consumers. Smaller bottles are easy for consumers to carry and larger ones with lower price are suitable for families.

When buying Pepsi-Cola, consumers get chances to take add-ons back home. It is really a good idea to set add-ons because it is not only advertising the new product among the consumers, but also stimulating customers to get more.

For the package, the symbol of brand is quite clear and obvious. However, the design of bottles is very similar as other brands of cola. It is ...

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