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Tag: Business model of PepsiCo

  • List of All the Brands Owned by PepsiCo | Pepsico Subsidiaries

    People all around the world know about Pepsi, and its products are enjoyed over one billion times just in every day by its consumers. PepsiCo Inc. is an American multinational company that manufactures, markets, and distributes various snacks, food, and beverages.

    PepsiCo is also known to be one of the largest companies in the world because its products are available throughout 200 countries. The company was first formed in 1965 with the merging of the Pepsi-Cola and the Frito-Lay companies. The company is currently headquartered in Harrison, New York.

    It is also the largest food and beverage business in North America according to its net revenue and the second-largest in the world, only behind Nestle. For the year 2024, PepsiCo’s revenue was $91.85 billion.

    The company offers a wide variety of products such as soft drinks, fruit juices, ready-to-drink tea and coffee, energy/sports drinks, chips, packaged foods, bottled water, etc. The company is now also expanding its categories of products like probiotics, functional beverages, and even cold-pressed juices. Since its inception, Pepsico has acquired many brands. So, here’s a look at all the brands under PepsiCo.

    PepsiCo Beverages North America
    Frito-Lay North America
    Quaker Foods North America
    Pepsico Latin America
    Pepsico Europe
    Pepsico Africa, Middle East, South Asia (AMESA)
    Pepsico Asia Pacific, Australia/New Zealand, China (APAC)

    A Brief History of PepsiCo

    The company had its humble beginnings with a carbonated drink that was made by a pharmacist, Caleb D Bradham, in North Carolina in the 1890s. The company was trademarked in the 1900s and became popular under Pepsi–Cola. However, after 20 years of success, Mr Bradham sold the company after it went bankrupt.

    It wasn’t until the 1930s that it became profitable again because of Loft Inc.’s efforts. At this point, the Pepsi-Cola company expanded with Diet Pepsi and also went on to purchase Mountain Dew in the 1960s.

    PepsiCo Inc. was founded in 1965 when the two big companies which are Pepsi-Cola and Frito-Lay, were merged. The company then went on to acquire Tropicana in 1998 and then Quaker Oats and Gatorade in 2001. Pepsi now has products like Pepsi, Diet Cola, Fritos corn chips, Lays potato chips, Cheetos cheese-flavoured snacks, Ruffles potato chips, and Rold Gold pretzels. But with the addition of Quaker Oats, Gatorade sports drinks were also added to the list, making it a billion-dollar company.

    In 2018, the company acquired SodaStream, a company that makes machines for homemade sparkling water. Its recent acquisitions include Organic and raw trading Co, which is an Australian company, Chi Limited from Nigeria, and Tropic from France. It also acquired Costa, a British Coffee company.

    Now, 70-plus years later, PepsiCo is a conglomerate and a multinational manufacturer and supplier of soft drinks, food items, snacks, and different types of juices. The company distributes its variety of products to more than 200 countries.

    Pepsico Subsidiaries
    Pepsico Products List

    PepsiCo Subsidiaries

    PepsiCo Inc. is best known for its manufacturing, marketing, distribution, and sales of popular beverages, food items, snacks, etc. The company has 23 brands that generate more than $1 billion each according to their retail sales, including popular brands like Frito-Lays, Gatorade, Pepsi-Cola, Quaker, and Tropicana, which provide a wide range of products.

    Three of its beverage companies, Pepsi-Cola, Mountain Dew, and Diet Pepsi, are among the top ten most beloved soft drinks in the American market. The Frito-Lays Company is a global leader as it holds 40% of the market share worldwide and 56% in the US for its snacks.

    Frito-Lay manufactures and sells nine out of ten potato chips, which include Lay’s, Doritos, Tostitos, Ruffles, and Cheetos. Another subsidiary that is a leader in its sector is Tropicana, as it holds 41% of the US orange juice market.

    PepsiCo subsidiaries are divided into seven divisions, which are PepsiCo Beverages North America, Frito-Lay North America, Quaker Foods North America, Latin America, Europe, Africa, the Middle East, and lastly being Asia, Australia/New Zealand, and China.

    Each of these subdivisions has many subsidiaries under it:

    • The Frito Lay North America – This division manufactures, markets, and distributes Lays, Doritos, Cheetos, Tostitos, Fritos, Ruffles, and the Santitas Brands.
    • Quaker Foods North America – It manufactures, markets, and distributes various Cereals, Rice, Pasta, Aunt Jemima, Quaker Chewy, Cap’n Crunch, Life, and Rice and Roni brands.
    • The North American Beverages – North American Beverages manufactures, markets, and distributes syrups, fruit juices, and soft drinks like Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Tropicana juices, and bottled water like Aquafina, Sierra Mist, etc.
    • Latin America – This division manufactures, markets, and distributes beverages, food products, and snacks specific to the South American countries.
    • Europe – The Europe division of PepsiCo manufactures, markets and distributes beverages, food products and snacks specific to Europe and African regions.
    • South Asia and the Middle East, and Africa – This division manufactures, markets, and distributes food products and snacks like Lays, Kurkure, Chipsy, etc.
    • The Asia Pacific, Australia/New Zealand, and China – This of PepsiCo division manufactures, markets, and distributes also offers a variety of snacks and beverages like 7UP, Mirinda, Pepsi, Mountain Dew, Cheetos, Doritos, Lay’s, etc.

    PepsiCo Beverages North America

    PepsiCo Beverages North America is a sector that manufactures, markets, and sells beverages in North America. This division has made many notable innovations, partnerships, and strategic acquisitions. These beverages are not only enjoyed in America but all over the world.

    PepsiCo Beverages North America sells soft drinks, bottled water, ready-to-drink coffees and teas, sports drinks, and juices, through which it tries to satisfy a wide range of customers’ tastes, occasions, and lifestyles, especially in North America.

    PepsiCo subsidiaries include the most popular beverages consumed in America. Some of the most well-known beverage manufacturers under this division are Pepsi, Mountain Dew, Gatorade, 7UP (outside the U.S.), Tropicana Pure Premium orange juice, Sierra Mist, SoBe Lifewater, Tropicana juice drinks, AMP Energy, Naked Juice, Izze, and Aquafina.

    PepsiCo Beverages North America also helps out third-party companies like Starbucks and Unilever in manufacturing, marketing, and selling their ready-to-drink coffees and teas.

    Some of the well-known PepsiCo subsidiaries under PepsiCo Beverages North America are:

    Pepsi

    Pepsi
    Pepsico Subsidiaries – Pepsi

    Pepsi is one of the first drinks the company started selling, which started out as a refreshing and energizing drink. Now it is known to be one of the world’s most popular and consumed soft drinks around the world.

    Gatorade

    Gatorade
    Pepsico Subsidiaries – Gatorade 

    Gatorade is one of the most popular brands under Pepsi, which is known for its signature line of sports drinks and is popular in America. The company is currently the fourth largest brand of PepsiCo and is distributed to over 80 countries. The company was acquired by PepsiCo in 2001 and is now the official drink for the NBA, AVP, PGA, Major League Basketball, and other sports teams and events.

    Mountain Dew

    Mountain Dew
    Pepsico Subsidiaries – Mountain Dew

    Mountain Dew is another soft drink brand that is owned by PepsiCo, the company became its subsidiary in 1964. Today, Mountain Dew is the number one flavoured carbonated soft drink in America. Mountain Dew comes in many flavours and varieties. Mountain Dew is also one of the top soft drinks in the US.

    Naked Juice

    Naked Juice
    Pepsico Subsidiaries – Naked Juice

    Naked Juice is a juice and smoothie producing company that was purchased by PepsiCo in 2007. This acquisition helped in building PepsiCo’s portfolio as it can offer healthy drinks for health-conscious customers by selling nutritional juices and smoothies through Naked Juice.

    Tropicana

    Tropicana
    Pepsico Brands – Tropicana 

    This brand is loved by everyone as it excels in producing orange juice. Tropicana is popular because it provides fresh fruit juices and is not concentrated. PepsiCo acquired the company in 1998 and was one of the main acquisitions for PepsiCo. With Tropicana, PepsiCo could compete with Coca-Cola’s Minute Maid.

    Frito-Lay North America

    Frito-Lay is a main subsidiary of PepsiCo, as it manufactures, markets, and sells a wide variety of snacks, including Corn and potato chips. The company merged with Pepsi-Cola in 1961. Today, the company has 29 snack brands under it with more than 55,000 employees.

    It makes many of the most popular snacks, such as Lay’s potato chips, Doritos tortilla chips, Cheetos cheese-flavoured snacks, Tostitos Chips with their dips, Ruffles Potato chips, Fritos Corn chips, Rose Gold Pretzels, Walkers potato chips, and Santitas tortilla chips, etc. The annual Revenue of Frito-Lay in North America is up to $17.1 billion in 2019.

    Some of the well-known PepsiCo subsidiaries under Frito-Lay North America are:

    Lays

    Lay's
    PepsiCo Brands – Lay’s

    Lay’s is one of the world’s most popular and iconic potato chip brands, and Pepsi products, owned by PepsiCo through Frito-Lay since 1965. Today, there are over 200 different varieties of Lays flavours all over the world. Lay’s potato chips bring in more than $1 billion yearly in retail sales.

    Sabritas

    Sabritas
    PepsiCo Brands – Sabritas 

    Sabritas is the main brand under which PepsiCo manufactures different Frito Lay products and popular snacks for Mexico, such as Crujitos, Poffets, Rancheritos, and Sabritones etc. The company is also known to control about 80% of the Mexican snack market.

    Cheetos

    PepsiCo Brands - Cheetos
    PepsiCo Brands – Cheetos

    Cheetos is a very popular snack not only in America but all over the world. The cheese puff snack was given the rank of the top-selling cheese puff in the primary markets of the United States in 2010. It is also one of the most profitable brands of PepsiCo, as it is sold in more than 36 countries. Its worldwide annual sales record is more than $4 billion. The company has now expanded its product line to more than 21 different flavours in America alone.

    Doritos

    PepsiCo Brands - Doritos
    PepsiCo Brands – Doritos

    Doritos is one of the most recognized tortilla-type chip brands in the world. It became a PepsiCo subsidiary in 1964 and originated from a restaurant at Disneyland. The company has gained a lot of popularity mainly because of its unique marketing campaigns and many ad commercials aired during the Super Bowl.

    Tostitos

    Tostitos
    Tostitos 

    Tostitos is another brand similar to Doritos, as it also produces Tortilla chips that are meant to be eaten with dips, which are also sold by the company. This brand is extremely popular in all North American countries.

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    Quaker Foods North America

    Quaker Oats has always been known for its quality, great taste, and nutrition. The company was merged with PepsiCo in 2001, and since then has been manufacturing, selling, and distributing a variety of healthy products such as cereals, Rice, Pasta, Dairy products, etc.

    One of its most well-known brands is Quaker Oatmeal, Quaker’s granola bars, Cap’n Crunch cereals, Pasta Roni, Quaker grits, etc. The annual revenue of Quaker Oats was $3.7 billion in 2021.

    Some of the well-known subsidiaries under Quaker Foods North America are:

    Cap’n Crunch

    Cap'n Crunch
    Cap’n Crunch

    Cap’n Crunch is an extremely popular Corn and Oat cereal consumed in America, manufactured by the Quaker Oats company. The company became a PepsiCo subsidiary in 2001. Since then, the company has expanded its products by introducing new flavours.

    Life Cereal

    Life Cereal
    Life Cereal

    Another popular oat and soy protein cereal brand is manufactured by Quaker Oats Company, and one of the most profitable subsidiaries of PepsiCo.

    Rice A Roni

    Rice A Roni
    Rice A Roni

    This is a company that makes boxed food in a variety of rice, vermicelli pasta, and seasonings. This company is owned by Quaker Oats and is a popular subsidiary of PepsiCo.

    Quaker’s products

    Quaker
    Quaker

    Quaker’s own product line is very profitable for the Pepsico brand. The company makes a variety of popular American snacks such as Quaker’s natural granola, Quaker’s Oatmeal and instant Oatmeal, Quaker Oat Bran, Quaker grits, Quaker puffed rice, Quaker chewy granola bars, Quaker oatmeal cookies, snack bars, etc.

    Pepsico Latin America

    PepsiCo Latin America Foods is another important division as it manufactures, sells, and distributes many well-known brands whose products are especially famous in Latin American countries. Some of these brands are Doritos, Marias Gamesa, Cheetos, Ruffles, Bacconzitos, ManiMoto, Emperador, Saladitas, Sabritas, Lucky, Elma Chips, Tostitos, and Rosquinhas, and many other products. This division mostly works independently, but also works with other third-party companies.

    Some of the well-known PepsiCo subsidiaries under Pepsico Latin America are:

    Sabritas

    Sabritas is another popular subsidiary of Pepsico from Mexico, which is known for the quality, variety, and authentic flavours of its products. The company was acquired by PepsiCo in 1966. This company works under Frito-Lay and PepsiCo and has its own line of potato chips named Sabritas. It also makes several local brands that are well appreciated, such as Crujitos, Poffets, and Rancheritos. The company is also known to control about 80% of the Mexican snack market.

    Gamesa

    Gamesa is a leader when it comes to the cookie market, as it exports its products to more than 16 countries. This company was acquired by PepsiCo in 1990. And ever since then manufactured a wide variety of products that range from Pastries to Oats and cookies, and cereals. Some of its well-known brands are Emperados, Arcoiris, Mamut, Chokis, and Maizoro.

    Other Regional Brands

    The other lesser-known subsidiaries under PepsiCo’s Latin America Foods division are brands like Natuchips in Venezuela, Colombia, and Ecuador, Tortix in Guatemala, Toddy Cookie from Argentina, and lastly, Toddynho from Brazil, which are local snack brands from different Latin American countries.

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    Pepsico Europe

    The Europe branch of PepsiCo manufactures, markets, sells, and distributes snacks and other food brands or subsidiaries throughout all countries in Europe and South Africa. It also operates independently and third-party companies such as Lay’s, Walkers, Doritos, Cheetos, and Ruffles, including Quaker’s products and popular beverages like Pepsi, 7UP, Diet Pepsi, and Tropicana juices. PepsiCo Europe also manufactures many ready-to-drink teas and coffees because of its joint ventures with Starbucks and Unilever.

    Some of the local specific subsidiaries are Marbo, Smiths, Paw Ridge, Duyvis, Snack a Jacks, Twistos, Lebedyansky, Solinki, and dairy products like Domik v Derevne, Chudo, and Agusha. It operates the subsidiary Matutano in Spain and Portugal and has manufacturing plants in England. The Chief Executive Officer of PepsiCo Europe is Silviu Popovici, and headquartered in Geneva, Switzerland.

    Some of the well-known PepsiCo subsidiaries under Pepsico Europe are:

    Duyvis

    Duyvis
    Duyvis

    This is a Dutch snack-based company that became PepsiCo’s subsidiary in 2006 and is known for its salty snacks, a variety of peanuts with flavours, and nuts, along with its dips.

    Wimm Bill Dann

    Wimm Bill Dann
    Wimm Bill Dann

    This company is known to be one of the largest dairy-producing companies, as it manufactures yoghurt, milk, flavoured milk, fruit juices, and other soft drinks. The company is headquartered in Moscow, Russia, and was acquired by PepsiCo in 2011. It is a leader in the food and beverage market of Russia as it holds a 34% market share in all dairy products in Russia.

    Lebedyansky

    Another Russian company was acquired by PepsiCo in 2008. The company is known for its fruit juice, baby food, vegetable juice, and soft drinks. Lebedyansky is the largest juice manufacturer in Eastern Europe and the sixth-largest in the world.

    Marbo

    Marbo
    Marbo

    This potato chip company is from Serbia and was acquired by PepsiCo in 2008. This company managed to help the locals of Backi Maglic, Serbia, by providing 100 jobs.

    Pepsico Africa, Middle East, South Asia (AMESA)

    PepsiCo’s Asia, Middle East, and Africa manufactures, markets, and sells beverages and snacks to all the countries of Asia, the Middle East, and Africa. It also likes the other make products independently and for third-party companies.

    Some of the popular PepsiCo subsidiaries under Pepsico Africa, Middle East, South Asia (AMESA) are Lay’s, Kurkure, Chipsy, Red Rock Deli, Doritos, Cheetos, Simba, other Quaker’s products, and beverages like Pepsi, Mirinda, Sting, 7UP, Mountain Dew, Aquafina, and Tropicana. The business in these regions accounted for 10% of PepsiCo’s net revenue worldwide. PepsiCo AMESA’s chief executive officer is Eugene Willemen, and is headquartered in Dubai, UAE.

    Kurkure

    Pepsi Brands - Kurkure
    Pepsi Products – Kurkure

    Kurkure is one of the popular products of Pepsi company sold in India. It is a corn puff snack made up of rice, lentils, and corn. Kurkure is an Indian brand from PepsiCo India and is known for its snacks, especially in India and Pakistan.

    Sabra Dipping Company

    Pepsi Brands - Sabra
    Pepsi Products – Sabra 

    Sabra is actually an American company that is known for producing food products that are made in a Middle Eastern style. It makes dips like Hummus and guacamole. All Sabra products are vegetarian.

    Simba

    Pepsi Brands - Simba
    Pepsi Products – Simba

    Simba is a South African snack manufacturer that was acquired by PepsiCo in 1999. It is known for its snacks that are made up of potatoes and maize. This company also holds over 63% of the South African chips market.

    Pioneer Food

    Pepsi Products - Pioneer Food
    Pepsi Products – Pioneer Food 

    Pioneer Food was recently acquired by PepsiCo in 2020. The company is known for its popular snacks like Bokomo Cereals, Spekko, Ceres fruit juice, and Sasko bread. This acquisition helped PepsiCo grow across the entire African continent.

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    Pepsico Asia Pacific, Australia/New Zealand, China (APAC)

    This sector manufactures, markets, and sells beverages and snacks to all the countries of Asia Pacific, Australia/New Zealand, and China. It also likes the other to make products independently, and for third-party companies like Starbucks and Unilever.

    The Smith’s Snack Food Company

    Smith's Snackfood Company
    Smith’s Snackfood Company

    Smith’s Snackfood Company is fully owned by PepsiCo. It makes many popular snacks like Doritos, Burger Rings, Twisties, and Cheetos. The company started in 1920 in Australia, founded by Frack Smith, Jim Viney, and George Ensor. PepsiCo bought the company in 1998 by investing $300 million. Today, Smith’s holds a big share of the snack and drink market in the United Kingdom.

    It also makes similar products such as Cheetos, Doritos, Lays, Smiths, and beverages like Pepsi, 7UP, Aquafina, Mirinda, Mountain Dew, etc. The Chief Executive Officer of the division is Wern-Yuen Tan and is headquartered in Shanghai, China.

    Conclusion

    This completes the list of all the brands owned by PepsiCo. PepsiCo is a conglomerate that manufactures, markets, and distributes snacks, beverages, and other food products that are loved by everyone. Every country definitely has some subsidiaries that belong to the company. There are a lot of PepsiCo products that we probably use in our daily lives. This article will surely help you find out what those are.

    FAQs

    Pepsi company belongs to which country?

    Pepsi is an American food and beverage company founded in 1893.

    How many brands does PepsiCo own?

    PepsiCo owns 23 brands that generate revenue of $1 billion for the company.

    Does Pepsi own Gatorade?

    Gatorade is a popular sport drink brand based in America. Pepsico acquired Gatorade in 2001.

    Who owns Doritos?

    Doritos is an American brand that sells flavoured tortilla chips. Pepsi bought Doritos when it merged with Frito-Lay in 1965.

    Is Dr Pepper a Pepsi product?

    No, Dr Pepper is not a Pepsi product. It is owned by Keurig Dr Pepper in the U.S. However, in some regions, PepsiCo has agreements to distribute Dr Pepper.

    What drinks are Pepsi products?

    Pepsi products include popular drinks like:

    • Pepsi
    • Mountain Dew
    • 7UP (in some countries)
    • Mirinda
    • Slice
    • Tropicana
    • Gatorade
    • Lipton Iced Tea (with Unilever)
    • Aquafina (bottled water)
    • Sting (energy drink)

    These vary by country, but all are PepsiCo beverages.

    Does Pepsi own Lays?

    Yes, PepsiCo owns Lay’s. Lay’s is one of the flagship snack brands under Frito-Lay, a subsidiary of PepsiCo.

    Who owns Pepsi?

    Pepsi is owned by PepsiCo, a multinational food and beverage company based in the United States. PepsiCo is a publicly traded company, so it is owned by shareholders who hold its stock.

  • Coca-Cola vs. PepsiCo: Difference in Their Business Model & Marketing Strategies

    There are hundreds of beverage brands offering a variety of drinks to consumers. But PepsiCo, Inc. and Coca-Cola Co. are leaders in the global beverage industry. They are the world’s largest beverage manufacturers. Their business models are similar in terms of flagship products and ideal consumers and industry.

    The Coca-Cola company was founded in 1892 with its headquarters situated in Atlanta, USA. The PepsiCo Company was founded in 1898. At that time, its name was Pepsi-Cola. The company merged with Frito-Lay, Inc. in 1965. After that, its name changed to PepsiCo. The headquarters of the company is situated in New York, USA.

    PepsiCo operates several brands including Tropicana, Frito-Lay, Gatorade, Quaker, etc. The world’s top soft drink brands, such as Coke Sprite, and Fanta are brands owned by Coca-Cola company. We can find so many key similarities and differences between these two business models. The comparisons between these two business models are given below. Also, we’ve listed the pricing strategies of Coca-Cola and PepsiCo and the Marketing Strategies of Coca-Cola and PepsiCo.

    Coca-Cola vs. PepsiCo: Strengths
    Coca-Cola vs. PepsiCo: Weaknesses
    Coca-Cola vs. PepsiCo: Business Model
    Coca-Cola vs. PepsiCo: Pricing Strategy
    Coca-Cola vs. PepsiCo: Marketing Strategies

    Coca-Cola vs. PepsiCo: Strengths

    PepsiCo has a brand value of over $18.2 billion and has ranked 36th in the most valuable brands in the 2020 list prepared by Forbes. Sales of beverages and snack foods of the company are coming under one umbrella. It made PepsiCo a diversified and stronger business. It had 60% of its revenue from the food business and the remaining 40% from the beverage industry in 2022.

    Marketing Strategies of PepsiCo
    Products of PepsiCo

    The company has 23 brands, including Pepsi, Fritos, Doritos, Pepsi Max, Diet Pepsi, etc. Each one makes more than $ 1 billion annually from sales. PepsiCo has a strong global presence in more than 200 countries around the world. It utilizes Direct Store Delivery (DSD) for its distribution network and supply chain. So the distributors deliver snacks and beverages directly to small stores.

    The target audience of PepsiCo is the younger generation. They stand as a brand for the youth. To face the challenges and increase resource sustainability, the PepsiCo Company works with many community-based organizations.

    In the case of Coca-Cola, it has strong a and unique brand identity. In 2011, it got the “highest brand equity award” from Interbrand. The company has a larger global presence. They are selling products in more than 200 countries. They also sell 1.9 billion bottles per day.

    Customer loyalty is another strength of Coca-Cola. They are one of the most emotionally connected brands in the US. It is difficult to find substitutes for them. Coca-Cola has the 3rd rank in the Best Global Brand list annually prepared by Interbrand. According to the Forbes List of Most Valuable Brands, it ranked 6th with a brand value of $64.6 Billion in 2020. Also, it has more market share than PepsiCo in the beverage industry.

    Marketing Strategies of Coca Cola
    Products of Coca-Cola

    Diet Coke, Sprite, Limca, Maaza, and Fanta are the top-growing brands of Coca-Cola. The distribution network of the company is more extensive and efficient in the world. They have almost 250 bottling partners. In 2016, Coca-Cola acquired the largest soy-based beverage brand in Latin America named “Ades” and expanded its beverage portfolio through this.

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    Coca-Cola vs. PepsiCo: Weaknesses

    PepsiCo is over-dependent on soft drinks and packaged foods. It decreases the agility and flexibility of the company. Most soft drinks of PepsiCo have high sugar concentrations and its snacks contain chemical additives. It is not good for your health. Unsuccessful PepsiCo products, such as Pepsi Blue, Crystal Pepsi, etc. have made employees frustrated, and it allowed the growth of competition.

    Companies must use their highest position to achieve the common good of society. But in 2017, PepsiCo’s advert featured by Kendall Jenner received criticism. That advert trivialized the Black Lives Matter movement.

    Coca-Cola’s biggest competitor is Pepsi and it is preventing them from becoming a leader in the beverage market. In the case of Coca-Cola, the product diversification of the company is very low. They are lacking in the snack food category. At the same time, PepsiCo presented snack items like Kurkure and Lays. This puts Pepsi ahead of Coca-Cola.

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    Carbonated beverages are one of the main sources of sugar consumption. It causes health problems such as diabetes and obesity. Coca-Cola is the largest producer of carbonated beverages. Most health experts advise decreasing the use of soft drinks. The company hasn’t found any solution to this problem yet.

    Coca-Cola vs. PepsiCo: Business Model

    Both Coca-Cola and PepsiCo are towering brands well-renowned in the beverage industry for years and a significant part of their popularity surely comes from their robust business models. Though Coca-Cola and PepsiCo seem quite similar in their product lines and business models, there are slight differences that make each of them unique and speak for themselves.

    Diversified Product Portfolio

    PepsiCo and Coca-Cola are undoubtedly famous for their beverages under a range of brands but along with that they also bring out many different ancillary products.

    When it comes to PepsiCo, it exhibits a truly diversified product portfolio and manages to put equal emphasis on each of its products. The consumer packaged goods industry is the other industry where PepsiCo has its footprints. The products of PepsiCo in the snack food category account for nearly 50% of the company’s total revenues. This diversified business model of the company has made it create and acquire several complementary products in both the food and beverage industries.

    On the other hand, when it comes to Coca-Cola, the company purely relies on its beverages and beverage brands for the revenues it collects. The company possesses around 100-plus beverage products of its own.

    Coca-Cola’s policy of dominion

    Coca-Cola believes in a more focused form of business thereby dominating the beverage industry almost exclusively. Therefore, it minimizes the cross-promotion of multiple products across a wide range of industries.

    Pepsi’s unique way of branding

    PepsiCo has been successful in branding all of its beverage brands along with its consumer packaged goods interestingly. Unlike the Coca-Cola company, Pepsi manages to equally focus on each of its products with the help of its unique branding, which leads the customers to purchase a second product of Pepsi as soon as they buy the first one owned by the brand.

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    The Emergence of Energy Drinks

    After a successful run of Coca-Cola and Pepsi in the beverage industry with their soft drinks/fizzy drinks, the growing concern of the masses for maintaining their health and fitness led them to opt for newer and healthier options. This resulted in the emergence of energy drinks.

    Some new beverage companies hit the markets with their new products but the beverage giants didn’t take a step back and yield to it, but take their steps valiantly forward to make their mark even in this new segment. To diversify its offerings further, Coca-Cola bought a large stake in Monster Drink back in 2014 while Pepsi started producing its energy drink labeled as Mountain Dew Kickstart.

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    Coca-Cola vs. PepsiCo: Pricing Strategy

    Pricing Strategy of Coca-Cola

    Coca-Cola’s pricing is based on the value that its products create for customers in different situations. The pricing strategy of Coca-Cola is what they refer to as “meet-the-competition pricing“: Coca-Cola product prices are set around the same level as their competitors because Coca-Cola has to be perceived as different but still affordable.

    Pricing Strategy of PepsiCo

    Pepsi is taking this value-based pricing strategy a bit further with its “Hybrid Everyday Value” model. This pricing strategy is an effort to make customers buy Pepsi not only when it is on sale. They have various sizes of bottles offered at various rates. This is priced according to the quantity of the drinks supplied. The promotion is also done keeping in mind the targeted customers.

    PepsiCo's Net Revenue Worldwide from 2012 to 2022
    PepsiCo’s Net Revenue Worldwide from 2012 to 2022
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    Coca-Cola vs. PepsiCo: Marketing Strategies

    Coca-Cola and PepsiCo, being two of the most loved beverage brands dominating the industry for decades surely sport foolproof marketing strategies. When it comes to big flashy advertisements and marketing campaigns, both of them play their parts incredibly well to drive their sales effortlessly.

    Both of the brands keep on introducing popular flavors into their drinks. Furthermore, they are also claiming a good foothold even in the relatively new segment of diet drinks and energy drinks. Besides, it is important to note that as the millennials form the core of the customer base that the soft drinks and beverage industry boasts of, both Coke and Pepsi aim to target them first.

    Memorable Campaigns of Coca-Cola

    Coca-Cola has had its share of brilliantly made ad campaigns that not only went on to drive a considerable amount of sales but also have the brand etched in the minds of the customers. One such advertisement campaign is “Share a Coke with.” This campaign introduced the Coke bottles listed with people’s names on them. It went well with the customers, who not only wanted to see their name printed on Coca-Cola bottles on TV ad commercials but possess the actual bottle with them as a souvenir. The campaign resulted in around 7% growth in the consumption of Coke by young adults.

    Coca-Cola Advertisement – Share a Coke with

    Coke then launched the famous campaign “Taste the Feeling.” This initiative revolved around the good old feelings and emotions of the people associated with the legendary brand, Coca-Cola. The advertisement picturized groups of friends drooling over ice-cold bottles of Coke and having them together, toasting to their friendship and reliving the memories of their past, evoking a sense of friendship and togetherness.

    The advertisement “Holidays are Coming” is yet another one of the famous Coke campaigns that went on to be a huge success. With the idea of holidays, most people associate the feelings of positivity, joy, homecoming, and summer or Christmas holidays. Therefore, this is another campaign that hits on the people’s emotions about Coca-Cola, as a drink, which is associated with fun, relaxation, vacation, and togetherness, and feelings of warmth, friendship, and brotherhood.

    Coca-Cola Christmas Commercial

    Coke has also scored big with its effective reactive marketing campaigns after the implementation of the sugar tax. This campaign had the advertisements of the company saying “They don’t make them like they used to – we do.” With this campaign, Coca-Cola tried to hint at the authenticity of the taste of Coke, which has not changed in the 132 years that the brand has seen, thereby encouraging people to taste the authentic flavor of Coke.

    Here’s a detailed analysis of Coca-Cola’s Marketing Strategy and Campaigns.

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    Major Campaigns of Pepsi

    Pepsi’s advertising campaigns are a lot different than Coke’s. This brand likes to experiment with the latest developments and work with current celebrities. Pepsi’s advertisements are either purely witty or catapulted by its rivals, with a tint of humor.

    Pepsi is also big in terms of the celebrity collaborations they make for their advertisements. Over the years the brand has been associated with a whole range of big names from the singing and acting industries. People like Britney Spears, Cindy Crawford, Cardi B, and more have already been roped in by the brand so far, which resulted in multiplying the overall sales of the brand.

    A popular campaign brought out by Pepsi featured a young boy standing on 2 Coke cans to reach a can of Pepsi. These kinds of adverts have proven quite successful for the brand that believes in coloring their campaigns with a tinge of humor. However, on some occasions such humor also resulted in backfiring against the brand, even harming their reputation at times.

    Pepsi Commercial

    The Prominent Difference in the Marketing Campaigns of Pepsico and Coca-Cola

    While Coca-Cola wants to empower friends, college-goers, students, and other professionals to come together and relive their days as young adults and toasting to their brotherhood, PepsiCo has marketed the products in such a way that the present generation can connect with them. PepsiCo on the other hand has been successful in creating advertising campaigns that bring in the newer elements of the age, a bit of wit, and ooze “coolness” or inject the perception of being “cool” and thus different and superior to other tastes.

    No doubt both of them have been equally successful with the help of their innovative ideation and the implementation of unique marketing campaigns.

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    FAQs

    What is the structure of Coca-Cola?

    The organizational structure for Coca-Cola is designed in such a way as to suit the changing needs of the customers. It uses a decentralized system of management, which is divided into two operating groups; the Bottling Corporate and Bottling Investment.

    What is the production cost of Coca-Cola?

    It should be around 15–16 Rs, including the cost of sugar which is over 100 Mg in one liter of the bottle.

    What is the pricing strategy of Coca-Cola in India?

    The pricing strategy of Coca-Cola is what they refer to as “meet-the-competition pricing”: Coca-Cola product prices are set around the same level as their competitors because Coca-Cola has to be perceived as different but still affordable.

    What is the difference between Coca-Cola and Pepsi’s marketing strategies?

    A large part of Pepsi’s marketing budget goes to digital marketing and advertising. Apart from that, a large sum is also spent on television advertising and other traditional methods of advertising. Any leading brand is investing heavily in digital technology for marketing and a better customer experience.

    Coca-Cola works on building Customer relationships and making their production and distribution more efficient and cost-effective.

    What is Coca-Cola’s business strategy?

    Coca-Cola is evolving its business strategy to become a total beverage company by giving people more of the drinks they want – including low and no-sugar options across a wide array of categories – in more packages sold in more locations.