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PepsiCo Marketing

To create more smiles with every sip and bite by becoming the global leader in convenient foods and beverages that win with purpose

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Align the strategy

PepsiCo Marketing SWOT Analysis

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To create more smiles with every sip and bite by becoming the global leader in convenient foods and beverages that win with purpose

Strengths

  • PORTFOLIO: Diverse product portfolio spanning snacks and beverages
  • DISTRIBUTION: Unmatched global distribution network reaching 200+ markets
  • BRAND: Strong brand equity with 23 billion-dollar brands globally
  • INNOVATION: R&D capabilities delivering 8% revenue from new products
  • SCALE: Economies of scale with $86B+ annual revenue operations

Weaknesses

  • HEALTH: Perceived unhealthy portfolio despite better-for-you efforts
  • PACKAGING: Plastic dependency creates sustainability perception gap
  • DIGITAL: Underdeveloped direct-to-consumer channels vs competition
  • COMPETITION: Market share pressure in key beverage categories
  • PRICING: Premium positioning vulnerable during economic downturns

Opportunities

  • HEALTHIER: Growing global demand for better-for-you snack/beverage
  • EMERGING: Untapped growth potential in developing markets
  • ECOMMERCE: Accelerating direct-to-consumer and digital platforms
  • SUSTAINABILITY: Leadership in eco-friendly packaging initiatives
  • PERSONALIZATION: Data-driven marketing for segment-specific efforts

Threats

  • REGULATIONS: Increasing sugar taxes and packaging regulations
  • COMPETITION: Rising popularity of private labels and local brands
  • COMMODITIES: Volatile agricultural input costs affecting margins
  • HEALTH-TRENDS: Changing consumer preferences away from sodas
  • WATER: Resource scarcity impacting production capabilities

Key Priorities

  • HEALTH-FORWARD: Accelerate portfolio transformation to healthier options
  • DIGITAL-FIRST: Expand direct-to-consumer capabilities and personalization
  • SUSTAINABILITY: Lead industry in eco-packaging and carbon reduction
  • EMERGING-MARKETS: Increase investment in high-growth developing regions
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Align the plan

PepsiCo Marketing OKR Plan

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To create more smiles with every sip and bite by becoming the global leader in convenient foods and beverages that win with purpose

HEALTH FORWARD

Lead the industry in better-for-you food and beverages

  • INNOVATION: Launch 5 new better-for-you products achieving $25M+ first-year sales each by Q4
  • MARKETING: Increase health-forward messaging from 25% to 45% of total brand communications by EOQ
  • PERCEPTION: Improve consumer health perception score from 62 to 75 across key global markets
  • PORTFOLIO: Grow better-for-you products revenue contribution from 30% to 35% of total revenue
DIGITAL FIRST

Transform consumer engagement through digital excellence

  • ECOMMERCE: Increase direct-to-consumer sales from 8% to 12% of total revenue by Q4 2025
  • PERSONALIZATION: Implement AI-driven personalization for 75% of digital touchpoints across brands
  • DATA: Unify 95% of consumer data into single integrated platform to enable advanced analytics
  • ATTRIBUTION: Deploy machine learning-based attribution model across all digital spend by EOQ
SUSTAINABILITY LEADER

Pioneer eco-friendly innovations across our value chain

  • PACKAGING: Convert 40% of plastic packaging to recycled or bio-based materials by Q4 2025
  • CAMPAIGN: Launch comprehensive sustainability platform reaching 500M consumers with 75% recall
  • CARBON: Reduce marketing operations carbon footprint by 20% through operational efficiencies
  • MEASUREMENT: Implement sustainability metrics dashboard for 100% of marketing initiatives
GLOBAL GROWTH

Accelerate emerging markets expansion with local relevance

  • PENETRATION: Increase household penetration in 5 key emerging markets by 350 basis points
  • LOCALIZATION: Deploy culturally-relevant marketing in 15 high-growth regions, with 90% local teams
  • INNOVATION: Launch 3 emerging market-specific products with $15M+ first-year revenue potential
  • DIGITAL: Achieve 35% digital engagement rate in emerging markets through targeted campaigns
METRICS
  • Organic Revenue Growth: 5% current year, 7% next year
  • Better-For-You Portfolio Revenue Share: 35% by Q4 2025
  • Brand Purpose Score: Increase from 72 to 85 across key markets
VALUES
  • Performance with Purpose
  • Consumer Centricity
  • Innovation
  • Integrity
  • Respect
  • Diversity & Inclusion
  • Sustainability
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Align the learnings

PepsiCo Marketing Retrospective

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To create more smiles with every sip and bite by becoming the global leader in convenient foods and beverages that win with purpose

What Went Well

  • BEVERAGES: Pepsi Zero Sugar delivered double-digit growth globally
  • PORTFOLIO: Healthier snacks portfolio exceeded revenue targets by 12%
  • INTERNATIONAL: AMESA region delivered 18% organic revenue growth
  • OPTIMIZATION: Supply chain efficiency initiatives reduced costs by $235M
  • DIGITAL: E-commerce sales grew 28% YoY across all major markets

Not So Well

  • CARBONATED: North America carbonated beverage volume declined 3.5%
  • MARGINS: Commodity inflation impacted operating margins by 110 basis pts
  • COMPETITION: Lost 2.1 points of market share in European beverage market
  • MARKETING: ROI on conventional media spend underperformed by 15%
  • INNOVATION: New product launch success rate below internal benchmarks

Learnings

  • SEGMENTATION: Health-conscious consumers respond best to science claims
  • ATTRIBUTION: Digital marketing requires improved cross-channel tracking
  • LOCALIZATION: Regional marketing autonomy drives better market results
  • PRICING: Value perception more important than absolute price point
  • SUSTAINABILITY: Eco-messaging resonates most with Gen Z consumers

Action Items

  • ACCELERATE: Increase healthier product portfolio to 50% by 2027
  • INTEGRATE: Implement cross-channel attribution model by Q3 2025
  • ACTIVATE: Launch sustainability campaign targeting Gen Z by Q4 2025
  • OPTIMIZE: Reduce traditional media spend by 20% and shift to digital
  • PERSONALIZE: Deploy AI-driven marketing personalization in top 10 markets
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Drive AI transformation

PepsiCo Marketing AI Strategy SWOT Analysis

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To create more smiles with every sip and bite by becoming the global leader in convenient foods and beverages that win with purpose

Strengths

  • DATA: Vast consumer data across global markets for AI analysis
  • RESOURCES: Financial capability to invest in advanced AI technologies
  • ECOSYSTEM: Established tech partnerships with Microsoft and others
  • TESTING: Ability to rapidly test AI innovations across global markets
  • TALENT: Growing AI and data science teams across key markets

Weaknesses

  • INTEGRATION: Siloed data systems limiting AI implementation
  • LEGACY: Outdated technology infrastructure in some regions
  • ADOPTION: Inconsistent AI literacy across marketing organization
  • GOVERNANCE: Underdeveloped AI ethics and governance frameworks
  • MEASUREMENT: Limited AI ROI metrics and performance tracking

Opportunities

  • PERSONALIZATION: AI-driven hyper-personalized marketing at scale
  • FORECASTING: Predictive analytics for demand and trend forecasting
  • CONTENT: Generative AI for creative content optimization
  • MEASUREMENT: Enhanced attribution models using machine learning
  • AUTOMATION: Marketing process efficiency through AI workflows

Threats

  • COMPETITION: Disruptive AI-native beverage and snack startups
  • PRIVACY: Increasing global data regulations limiting AI applications
  • TALENT: Fierce competition for AI expertise in marketing technology
  • BIAS: Reputational risks from biased AI models or applications
  • INVESTMENT: Potential ROI uncertainty from rapid AI evolution

Key Priorities

  • PERSONALIZATION: Implement AI-driven marketing personalization at scale
  • CAPABILITY: Develop comprehensive AI literacy across marketing teams
  • INFRASTRUCTURE: Unify data systems for advanced AI applications
  • MEASUREMENT: Create robust AI-powered marketing attribution models