Pepsi Product Life Cycle Case Study

Product Life Cycle – Pepsi

1) Choose any successful product

The product I have chosen is Pepsi, which is a carbonated soft drink produced and manufactured by PepsiCo. It is one of the world's leading food and beverage companies with over billions of dollars in profit.

2) Provide a brief history of the product (discussing its product life cycle) Pre-Launch the 1890s

 In 1893, pharmacist Caleb Bradham developed ‘Brads Drink’, a formula designed to aid in digestion. After strong interest from consumers in his pharmacy, Brad renamed the drink Pepsi-Cola in 1898 and purchased the trademark ‘Pep Cola’ for $100. The origins of Pepsi are very similar to that of Lucozade, which was also first produced for medicinal purposes. Although $100 does not appear much, that amount of money

Most of PepsiCo’s products are priced based on the market-oriented pricing strategy. The company’s objective in using this strategy is to ensure that its prices are competitive, based on other firms’ prices and prevailing market conditions. On the other hand, Hybrid Everyday Value is PepsiCo’s pricing strategy for some of its products, especially soft drinks. The company’s objective in using this pricing strategy is to close the gap between regular/everyday prices and discounted holiday prices. In this way, PepsiCo expects consumers to buy more of its soft drinks every day and not just during the holidays.

Place: PepsiCo uses a global network for distributing its products to consumers. Most PepsiCo products are available at retailers, such as supermarkets, grocery stores, and convenience stores. However, customers can access PepsiCo-licensed merchandise like tumblers and t-shirts through retailers and their websites. Based on this element of the marketing mix, PepsiCo’s places for distributing its products are mostly non-online