Company name: pepsi company logo

4.2 PRICING STRATEGY

PepsiCo’s prices are considerably varied because the company has a wide product mix, which means that it has a large number of product lines and brands. Approaches used to set prices are analyzed in this element of the marketing mix. PepsiCo’s main pricing strategies are as follows:

Market-oriented pricing strategy
Hybrid Everyday Value pricing strategy
Most of PepsiCo’s products are priced based on the market-oriented pricing strategy. The company’s objective in using this strategy is to ensure that its prices are competitive, based on other firms’ prices and prevailing market conditions. On the other hand, Hybrid Everyday Value is PepsiCo’s pricing strategy for some of its products, especially soft drinks. The company’s objective in using this pricing strategy is to close the gap between regular/everyday prices and discounted holiday prices. In this way, PepsiCo expects consumers to buy more of its soft drinks everyday and not just during the holidays.

4.3 PROMOTIONAL STRATEGY

PepsiCo promotes its products to attract target customers. This element of the marketing mix covers the marketing communications strategies and tactics that the company uses to reach its customers. The following are the tactics in PepsiCo’s promotional mix, arranged according to significance:

Advertising
Sales promotion
Direct marketing
Public relations
Advertising is PepsiCo’s primary tactic for marketing communications. For example, the company is popularly known for using celebrity endorsers to promote its products on TV, radio, print media, and online media. The firm also advertises through business signs it sponsors or gives to stores and other establishments. PepsiCo occasionally applies sales promotions, such as package deals or discounts. Also, the company’s local offices sometimes implement direct marketing through agreements to provide products to organizations at wholesale prices. Furthermore, PepsiCo uses public relations through financial assistance and sponsorships, such as in sports events. This element of the marketing mix indicates that advertisements are the main determinant of PepsiCo’s ability to communicate with target customers and promote its products.