Pepsi Business Model | Business Model Navigator

Overview:

PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Purchase, New York. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which included an acquisition of Tropicana Products in 1998 and the Quaker Oats Company in 2001, which added the Gatorade brand to its portfolio.

Industries:

Consumer Goods

Business Model Patterns:

Barter

How they do it: The first foreign product to be sold in the USSR in 1972 was Pepsi. Under a Barter agreement, PepsiCo offered its Pepsi-Cola drink to the Soviet Union in return for exportation rights of Stolichnaya vodka to America, for which they were granted exclusive sales rights on the American market. This strategy also increased exposure of the Pepsi-Cola brand and availability of the product, especially in the USSR.

User Designed

How they do it: Pepsi MAX, the low-calorie, sugar-free cola brand, leveraged user generated content to craft a new brand image. The company created a campaign urging customers to share reasons they prefer Pepsi MAX to Coke Zero, asking customers to share pictures on Instagram and other social networks, as well as a mini-site that was specific to the promotion. The best entries were eligible for numerous prizes, including a year’s supply of free Pepsi MAX. Unsurprisingly, the campaign turned out to be very popular.

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