In: Operations Management
This is my second attempt at this question Without copying and pasting an article and report please explain to me Pepsico's promotion plan for 2019. What products will be promoted most and in what countries
Market executon and heavy investment on newer trade channels including e-commerce would be the mantra for Pepsico to sustain it profitability in the year 2019. Apart from the market execution, the challenge would be to reach the ‘next league of customers’ as the growth there is palpably complex. The focus would be to arrive at the right balance across all its channels – ecommerce, modern trade, offline and online.
Consumer preferences have been rapidly changing towards healthier drinks and the juices category is surely expected to take a lead despite the heavy competition in the space. The plan is primarily to arrive at a mix of volume and value in different segments instead to trying to grow everywhere. Quaker Oats, though currently on a low base, is expected to grow exponentially with carefully planned promotions and placements. Lay’s, Kurkure and Doritos would be its key growth drivers with dedicated focus on its promotions and activities.
When it comes to the core beverages, its main competitor Coca Cola has made substantial increase in its marketing spend. While this has benefitted Pepsi to some extent, it has struggled considerably too. Hence, for 2019, the company has earmarked and increased spend on its trademark Pepsi brand with the launch of “Pepsi Generations” campaign. Focus would also go up on ‘Healthy snacks’ with a portfolio shift “Everyday Nutrition Products.” Frito-Lay would look towards premiumization in packaging and promotion.