• Subject Name : Global Marketing

Global Marketing Strategy

Executive Summary of Global Marketing Strategy

Marketing and marketing management is important for selling of any product or service of any business and organization. A firm markets its goods and services domestically or internationally. The scope of marketing is vast when the company sells across international boundaries. This is due to the differences in the various factors and dimensions across different regions that impact the operations of that business. Thus, these businesses design plans and strategies in conjunction of the conditions and demands of that market. The term used for such marketing techniques implemented on international scales is called global marketing. With the rapid industrialisation and modernization, the spread of doing business has increased from home country to other regions across the globe. Global marketing plays an important role in this. PepsiCo is one such country having its reach and operations across the world, and its global marketing concept and strategies are explained below.

Table of Contents


Global marketing concept

Global marketing strategy of PepsiCo.



Introduction to Global Marketing Strategy

The rapid pace of globalization today has well-connected the business market to the world. All organizations now have a common objective to increase their market performance and increase their market capitalization. Nowadays, businesses are constantly competing to emerge as a market leader in that particular business. They try to gain a competitive advantage by optimizing its processes and strategies. It is essential for organizations to continuously adapt new strategies and plans and also keep alter their existing ones in accordance to the constantly changing consumer and new market preferences and demands. To achieve this the organizations, design and develop global marketing strategies. The following report gives an overview this concept of this global marketing strategy adopted and used by the company PepsiCo.

Global Marketing Concept

The rapid increase in modernization, industrialisation and globalisation has bought the business world close to each other. Companies are moving forward from domestic business transactions, to cross-border business transactions. Thus, it is essential for such organizations involved in businesses across different regions except home country to design strategies in accordance with the market preferences and demands of that region. Such cross-border transactions have given rise to a concept called global or international marketing strategies. This global marketing concept is an integral element of the marketing management of specially the organizations having their operations in other regions and countries of the globe (Keegan & Dutta, 2017).

Global marketing is the process of adjusting and altering the marketing strategies of a company in order to adapt the market conditions of other regions. Global marketing is more than just selling the company’s product or service globally. It is a complete process of planning and positioning, creation and promotion of the company’s products in the international market (Keegan & Dutta, 2017). Large organizations and companies usually have operations abroad. With the rapid advancement of the internet, even small companies can reach to the consumers anywhere in the world. If a business does not expand internationally, it faces domestic competition from international companies that are expanding their global presence. This competition is required for many businesses to have their global presence.

Global marketing has many benefits for the companies. Global marketing helps to enhance the efficiency of a firm. The more the firm will expand in the global market the more it is able acquire new knowledge and skills, and the quicker the company is able to learn, it becomes more efficient at producing new product or service offerings (Kotabe & Kristiaan, 2020). Also, global marketing also helps the organizations to attain a strongcompetitive advantage. Companies can compete in the local market easily, but some of them are unable to do so on an international level. Hence, if a company is able to compete in the international market in comparison of its competitors, the company is able to emerge as a strong company in the industry. Global marketing strategies play a key role in increasing the awareness of the company’s brand and product or service amongst the consumers (Kotabe & Kristiaan, 2020). This global marketing concepts and strategies are an integral element for the success of has PepsiCo company.

Global Marketing Strategy of PepsiCo

The PepsiCo is a merger company formed as the result of the merger between Pepsi and Cola. Today, PepsiCo is the world’s leading company in the food and beverage market (Venkataraman & Summers, 2017). It has successfully been able to create a brand for itself among the consumers all over the world of providing the best salted snacks along with the best cola in the world. As an innovation and addition to its product line it introduced its revolutionary new sugar free cola in 1998. PepsiCo has been able to create a new brand in no time (Venkataraman & Summers, 2017).

PepsiCo is just not a company of America but has become a global organization. Pepsi has been able to achieve its global presence by developing a new product to satisfy an overseas market segment (Venkataraman & Summers, 2017). PepsiCo global marketing strategy concentrates on the development of major global brands. Some of them are Lay’s, Doritos, Ruffles, Cheetos, Pepsi, Diet Pepsi, Mountain Dew, 7-Up, and Mirinda. Such well-established brands have helped the company to achieve large global sales volumes (Venkataraman & Summers, 2017). The global marketing strategy of the company includes positioning itself according to the changing demands and preferences of the changing market and consumer. The consumers nowadays are more conscious about their health. The company has communicated its value proposition as a snacks and beverages brand that has nutritious and low-calorie choices in contrast to the normal soda products (Williams & Nestle, 2017). Through its effective advertising and marketing campaigns it has been able to target the young generation as brand that reflects young energy and a brand for the millennials. The loyal customers of this company are mainly in the age group of 18-40 years.

Another important element of the international marketing strategy of this company is the affordable pricing strategy. Pepsi has maintained a low pricing strategy and has made it an affordable brand. This company wishes to target and tap the consumers from all income segments including lower middle class to upper class. It also targets the teenage and youth generation with a fast-moving lifestyle. Though this company is a leading brand and its products are always in demand, it has maintained its low and affordable pricing of its products and has not increased the price of its product taking advantage of this demand. Thus, the products of this company are affordable for all types of consumers. PepsiCo also spends heavily on marketing and promotion plans for its products. With the rise of the digital technology the marketing world also has changed a lot. Understanding these changing dynamics of the world the company dedicates big part of its budget to digital marketing and online advertising campaigns. The company uses social media platforms like Facebook, Instagram, YouTube, twitter, etc. for its promotions. These platforms are the favourite media of the leading brands. As the consumers of the today world spends most of their active time on these social media platforms, the company has been able to maintain an impressive presence on social media (Mooij, 2018).

Since, the company caters to all the consumer segments, apart from digital marketing the company also spends on television advertising and other traditional methods of advertising for the people who do not have access to online platforms always. Using social media as a means of promotion in the global marketing strategy, has helped the company to connect with millions of consumers globally instantly and without any major investment, and thus create a global presence (Kasemsap, 2018). However, this method also makes the brands and companies more conscious regarding product quality and customer service because any comment or news shared on social media reaches millions in a few seconds. The company also continually invests to maintain the product quality and packaging to remain as any consumers first preference.

Having its presence globally, the company however needs to alter these in accordance to the consumer needs, demands and preferences of that region. Thus, the company diversifies its product portfolio from time to time bring in healthier and more nutritious product choices for its consumers of its different region (Williams & Nestle, 2017). The product portfolio is a rich portfolio which includes a variety of flavours and nutritious and tasty choices as per consumer preference. The company also tries to innovate its packaging quality. It changes, develops and creates its style and size of package based on consumer demand and expectations. Its product packaging includes pocket size packets to large packs. The company also develops small size options for its several products to make its products more affordable and accessible.

Conclusion on Global Marketing Strategy

Today’s era is of intense competition and the organizations are penetrating into new markets to increase market capitalization and thus maximizing their profits. PepsiCo is a company already having its global presence and is constantly trying to tap the untap markets. It is essential for the companies in this era to continuously work to make its value proposition more attractive. Thus, the companies are constantly experimenting and innovating it products, services and marketing strategies as per the changing and different demands of the varying market and consumer. PepsiCo Company also focuses its global marketing efforts and strategies to achieve this. With the changing time, taste and choice of flavours of consumers has changed a lot. Consumers are now opting for healthier products. The product innovation enables to fulfil this demand. Thus, this company has developed sugar-free beverages and also snacks with lesser fat content to cater to such demands. It has also innovated the packaging and portion sizes of its products for its customers to suit both their pockets and choices. It is important for the take into consideration the culture, beliefs, views, traditions, and opinions of different culture in different regions and thus formulate its marketing campaigns accordingly. For example, the marketing strategy USA will be different from that of another region.

References for Global Marketing Strategy

Keegan, W. & Dutta, G. (2017). Global marketing management. New Delhi: Pearson.

Kasemsap, K. (2018). The roles of social media marketing and brand management in global marketing. Retrieved from: https://www.igi-global.com/chapter/the-roles-of-social-media-marketing-and-brand-management-in-global-marketing/203311

Kotabe, M. & Kristiaan, H. (2020). Global marketing management. New Jersey: Wiley

Mooij, M. (2018). Global marketing and advertising, understanding the cultural paradoxes London: Sage Publications

Nazari, F., Najafi, S., Shashvari, F. & Zeynalzedah, A. (2020). Drawing a structural model by the most effective components on optimal global marketing. Brazilian Journal of Operation and Product Management, 17(1), 1-8.

Onurlubas, E., Demikiran, S. & Ozkul, S. (2016). New techniques in marketing caused by globalization. The Journal of Academic Social Science, 4(23), 201-215.

Venkataraman, S. & Summers, M. (2017). PepsiCo: The challenge of growth through innovation. https://doi.org/10.1108/case.darden.2016.000230

Williams, S. & Nestle, M. (2017). Big food: critical perspectives on the global growth of the food and beverage industry. London: Routledge.

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