Custom Student Mr. Teacher ENG 1001-04 2 June 2016

The second largest drink in the world, Pepsi has implemented several smart strategies in the last decade to improve its turnover and profits. Pepsi-Cola’s expansions in snacks like Lays, Quaker oats, Cheetos and Kurkure have given them an edge over Coca-Cola. Although, Coca-Cola is still the number one selling brand, Pepsi has reduced their dependency on soft drinks by expanding their product mix. We all know that the marketing mix is a dynamic process and is always changing with prices and promotions. However, Kudos to Pepsi, who has always kept changing their marketing mix with the changing environment. Here is the Pepsi marketing mix of the 4P’s of Pepsi-Cola.

Product – there are two main product types that Pepsi is present in India. Beverages soft drinks – 7up, Mountain Dew, Pepsi, Slice, Tropicana, Gatorade and more. As for food product snacks – Cheetos, Lays, Quaker oats, and more. Therefore, unlike Coca-Cola, Pepsi has expanded in breakfast as well as snack segment. On the other hand, Coca-Cola is present only in beverages section. The advantage of Pepsi’s snacks is the brands like Lays and Cheetos are in great demand. Quaker oat, which is a recent addition, is also increasing in demand. However, the turnover result from the food product is helping the bottom line of the company.

Price – Pepsi is in an industry, which is dominated by the two biggies – Coca-Cola and Pepsi-Cola. However, the pricing of Pepsi is competitive. In the war between Coca-Cola and Pepsi-Cola, neither of brands can win if they enter a price war. This is because the cost of manufacturing and transportation is huge. These companies are likely to enter a brand war rather than enter a price war. Pepsi is known to give promotional discounts. For customers, as the container size rises, the discounts also rise. For distributors, the discount is based on the quantity as well as the payment terms. The better the payment terms or the higher the quantity, the more is the discount given thereby keeping the distributor motivated.

Place – Pepsi has a huge distribution network in India. It has to be huge because the brand needs to be present in every nook and corner of the country to increase its sales.

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