Saturday, July 15, 2017

Is PepsiCo still unbeatable?

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. 

Click the link below to read the original article:

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