For decades PepsiCo and Coca-Cola have dominated soft drink
industry and influenced people’s drinking behavior and mindsets across the
world. But now they are facing a big challenge too, just like how other retail
stores endeavor to fight back with online delivery companies. Apparently,
PepsiCo and Coca-Cola need to tackle with new purchase habits from consumers
who have the strongest purchase power, namely millennials.
According to this article, Indra Nooyi, CEO of
PepsiCo points out that many spending is happening online for experience,
health, wellness instead of possessions. Another interesting statistic from the
article is that an index of hotel, restaurants and leisure stocks gained 25%
since the beginning of 2016, which corroborates consumers’ mind shift in purchase:
it’s all about how the product or service make them feel.
It’s true that PepsiCo took decades to build distribution
system that serves vending machines or brick-and-mortar stores in over 200
countries, however, it does not guarantee PepsiCo’s continuous development if no
changes take place to satisfy growing younger consumers - the fact that PepsiCo
or Coca-Cola are mostly associated with fast food such as McDonald or
entertainment in movie theater will be detrimental to their brand image in the
long run. Therefore, it’s not only about how to compete with other growing e-commerce
but also about making products’ marketing aligned with what consumers want.
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