PepsiCo's strong brand and innovation programs drive growth despite inflation
PepsiCo seems to be rising above in its industry according to its CEO Ramon laguarta in an article recently posted on Marketingweek.com. He goes on to share with us what he believes to be the main reason the company has been able to deliver continued growth within such record-breaking times of inflation. The company's number one responsibility as a large player in snacks and beverages, has been making sure the category continues to grow, and the article explains just how PepsiCo has been able to successfully manage to maintain that balance. Everything they have been doing in their commercial plans has been to make sure they have strong brand, channel, execution, and innovation programmes with a goal aimed at making their brand the preferred in their category, over all others. The company has also seen market share gains in both macro and savory snack categories as well as beverages around the world, claiming this is the result of the investments PepsiCo has made on their brand.over “several years”. The CEO then States how great their innovation has been by strengthening their ability of delivering precisely what is needed for target customers, strengthening digital capabilities, and by making their brands look more modern and engaging.
Despite the company being seemingly unaffected this far, the CEO expressed concerns that toll inflation and cost of living could have on the business, depending on the effect it has on lower income consumers, and will be an area of focus moving forward. The company also noted they have had improvements on productivity cost which has allowed them to stay more competitive in price as far as dealing with inflation. Laguarto confirms plans to continue putting money behind its brand as inflation continues to rise PepsiCo CFO Hugh Johnston, ends the interview call by stating how overall, the “way they are trying to run the company is to build sustainable results over time. Balancing that and the present term, while still building capabilities for the years to come. This is a journey they see as continuous and are looking into optimizing return on investment on all costs within the company.
PepsiCo's value proposition according to this website; https://bookrevise.com/what-is--pepsico-core-competencies/; is To Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose and reflects their ambition to win sustainably in the marketplace and accelerate their top line growth, while keeping their commitment to do good for the planet and communities.
The marking relevance here is that PepsiCo has demonstrated a market strategy that has had positive outcomes and overall growth, despite external factors that have posed as barriers to all businesses worldwide, and for many, meant complete closure. PepsiCo really took a focus on its brand in this marketing strategy with the goal of really ensuring their brand is the preferred and chosen brand in its category. Other points to their strategy have been to strengthen their channel, execution, and innovation programs. Dedication to staying connected with communities, being aware of its importance and ability to make more precise decisions, and improving their products to look more modern and engaging, are other things the company has been doing and how they are implementing their marketing strategies.
I think the challenge the company is facing is ultimately, one that all businesses have unfortunately been forced to face over the last few years, where not only was it a requirement that everything everywhere had to be shut down[ in a worldwide attempt to contain a pandemic], but by millions of scared Americans then making personal decisions not to go out shopping as well. Most resorted to grocery and food delivery services, which has become extremely popular throughout the course of the pandemic. Covid has caused numerous challenges for individuals and has been the number one game changer as far as what and how they have been choosing to spend money. I think consumer spending and the completely new trends emerging from the pandemic and the pandemic as a whole has been the challenge for PepsiCo. Alongside this is increasing inflation, which leads me to think the marketing team will have to closely monitor and continuously analyze consumer data, trends, and market research data overall to stay more closely connected with the ever-changing target markets.
What makes their approach unique is that they heavily invested in marketing their brand in a time where most companies are probably playing it more on the safe side, either for fear of failure or to be able to just kind of take a step back to see where everything is headed post-pandemic.
I like how they seem to sort of go all in on their brands because when I think about Pepsi products, I don't recall noticing much change in appearance or even seeing much of anything on TV in a long time. It definitely seems like a good time to really get out there and stand out in the crowd again. When a company is noticed(and/ or reminded of) ,people remember why we love that brand and why we still want to buy their products. Also, it sounds like they are very aware of more challenging and rough times yet to come, possibly in the near future, and I think they are on the right track by being ready and willing to take on anything. Strengthening their execution programs and the ability to acknowledge and incorporate that into their strategy shows the company is prepared and confident with what they are doing. A confident company that knows what they're doing and where they are going reflects positively towards its customers.
If I were the marketing manager, I think I would try to include more marketing campaigns that incorporate the community and create more opportunities to engage directly with people at more events such as state fairs, conventions, and other venues. I say this because I remember every single time I have encountered Pepsi within my vicinity in my life! Why? Because they are fun, exciting, and memorable and always made me genuinely want to go buy Pepsi immediately!
I learned how even as a top brand in an industry, it is still critical to continuously invest in marketing your brand to continue growth in the company. It is possible for consumers to forget your brand, your image, or your purpose.
Comments
Post a Comment