China Food

What can we learn from Pepsi from the second largest food group in the world?

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Pepsi, a humble family, how to turn the tables against the wind?
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When it comes to old consumption, Coca Cola is an old brand that we can not avoid. When it comes to Coca Cola, you will think of Pepsi Cola. If your impression of Pepsi is only the “second in ten thousand years” in the beverage industry, and you think Pepsi is too far fetched as a good brand for old consumption, then I would like to list several data here:
(1) From the global market, PepsiCo’s annual revenue in 2021 was US $79.474 billion (about 504.977 billion yuan). Coca Cola’s annual net revenue was US $38.655 billion (about 245.613 billion yuan). In 2021, the revenue gap between Coca Cola and Pepsi exceeded US $40 billion. From the perspective of the carbonated beverage segment, in 2021, the revenue difference between Coca Cola of US $31.9 billion and Pepsi Cola of US $16.4 billion was US $15.5 billion.
(2) According to the data of the world’s top 500 in 2021, Pepsi ranked 131 and Coca Cola ranked 370.
(3) Coca Cola currently has more than 500 brands in the world, but only 21 brands with annual income of more than 1 billion US dollars; In contrast, Pepsi Cola has less than 300 brands worldwide, but 22 brands with annual income of more than US $1 billion.
From the above data, why is PepsiCo a strong player in terms of brand efficiency, world ranking, global revenue, etc? Pepsi, which was born 12 years later than Coca Cola, was vagrant at the beginning of its birth, but it can still stand firm after 100 years, even surpassing Coca Cola in other fields. How did PepsiCo turn around against the wind? Perhaps here I will take you into a familiar common scene, and you will understand.
At 8:00 in the morning, you put on your pajamas while brushing the latest microblog hot search of the day and pouring milk into Quaker Oats as breakfast;
At nine o’clock in the morning, after opening the work attendance, you make a cup of Lipton tea in the thermos cup to refresh yourself;
Half an hour before dinner at 12:00, you can turn on a bag of herbal green root fruit beside the computer to satisfy your hunger;
At 12:30 noon, you go to the shopping mall under the office building to find food. You find pizza hut, KFC and Taco Bell have all launched the latest packages. You wonder which one to choose today;
During the lunch break, you open the newly bought crispy corner and happy potato chips, turn around and chat with colleagues over snacks;
After work at 6:00 pm, you go to the supermarket to buy a bottle of Pepsi Cola and prepare to go home to make the newly learned Cola Chicken wings;
At 8:00 pm, you come to the gym to sweat and buy a bottle of Gatorade sports drink in front of the vending machine.
In the above-mentioned living scenes, these brands, large and small, are either the sub brands of Pepsi or have countless relationships with him. As a company that started with coke, it can extend the industry to such a vast space, and enter the global market to become bigger and stronger, becoming a global classic old brand. Among them
In 1902, Colby founded Pepsi Cola. In the following years, he has been living in the shadow of Coca Cola as a “fake brand” in the carbonated beverage industry. Later, he changed hands several times. In the economic crisis of 1931, facing bankruptcy, Charles Gus, a New York businessman, finally took over. However, under the impact of the economic downturn, even Gus, the boss of the largest confectionery company in the United States at that time, was unable to protect himself. Under the circumstances, Gus proposed to Coca Cola to sell his assets at a low price, but Coca Cola refused to do so. At this time, Gus had no choice but to break the jar and launch a “sales promotion sale”
At that time, Coca Cola sold for 5 cents and 6 ounces (about 170 ml), and competitors and imitators in the market also sold at this price. Gus found that the cost of bottled Cola is actually very low, that is, raw water and water. Even if we add more weight to each bottle, the profit will not be reduced. So Pepsi launched a 12 ounce bottle of coke, still selling for five cents.
The advertising slogan at that time was as follows: “the same price, double happiness.” “Increase the quantity without increasing the price. Hurry up and buy it.”. Pepsi also provided a special magic music “nickel, nickel, nickel” (five cents) “to brainwash the people in the north and south of the country. It has even been translated into 55 languages and spread around the world.
You see, is this kind of line very similar to the saying of going to department stores for big sales? Is this magic advertisement very similar to the way you hear it in the elevator at ordinary times, which is more brainwashing than snow ice city? Pepsi has been used up more than 100 years ago. Pepsi is like a “newborn calf” against Coca Cola. It seems to be “strangled in the cradle”, but the result is reversed. Pepsi’s gamble successfully turned him around.
“Barefoot is not afraid to wear shoes”, the words are not rough. Pepsi Cola won the stage victory through the price war. A large part of the reason is that “the Jedi survive”. Either they die or they are resurrected with blood. At the time of dying struggle, every opportunity is a chance. On the other hand, Coca Cola has a large volume and industrial standardized operation. The brand of Coca Cola is completely customized production and a large amount of coke is stored. If Pepsi Cola’s strategy of “increasing the quantity without increasing the price” is followed, hundreds of millions of bottles in the warehouse will be scrapped. This cost is too high. Secondly, and most importantly, the volume of Coca Cola is much larger than Pepsi Cola, and it disdains to follow Pepsi Cola.
Two years after the “obscene development”, Pepsi Cola rose rapidly in 1933, opening 313 branches in 84 countries around the world. By 1936, the annual net profit exceeded US $2 million. Compared with the per capita GDP, the then US $2 million exceeded the current US $200 million.
In 1941, Pepsi Cola’s market share rose to 14%, and it successfully won the second place in the United States.
·See the demographic dividend and make friends with young people
During World War II, Pepsi Cola was affected by the wartime “sugar restriction order”, and its development fell into a quagmire. However, this does not affect PepsiCo
This generation of young people themselves have the characteristics of rebellious thinking and pursuing freedom. However, Pepsi did not find this point. Coca Cola’s market share is five times larger than Pepsi’s, which makes Pepsi focus on “following strategy”. It was not until 1960 that Pepsi handed over the advertising business to BBDO, which analyzed the changes in consumer structure and psychological characteristics. It was Pepsi’s marketing firepower, aimed at the “traditional” image of Coca Cola, and successfully occupied the “young people’s drink” with the help of advertising marketing combination, laying a solid foundation for Pepsi’s long-term marketing strategy in the future.
For example, in 1975, Pepsi Cola carried out a taste experiment, that is, the trademarks of Pepsi Cola and Coca Cola were torn off, and passers-by were asked to blindly test the two types of cola and select the better one. As a result, Pepsi Cola won, and BBDO also publicized it, so that consumers could re-examine the consumption decision of “old Coke” and compare it with “new coke”.
 
In 1984, BBDO Pepsi spent $5 million to cooperate with Michael Jackson to shoot “the most successful advertisement in history”. A group of young people and children wearing leather clothes, leather pants and cowboy T-shirts are dancing in the street, swaggering and uninhibited. Mike Jackson’s songs about Pepsi are also pleasant and brainwashing. Even now, they are very infectious. According to Pepsi’s internal statistics, about 97% of Americans watched this advertisement in the year it was broadcast, 12 times per person, far exceeding the “seven times rule”.
Young people like to resist rebellion. PepsiCo has recruited such stars as Michael Jackson, the king of rock and roll, Madonna, the queen of pop music and so on to speak for them. The star endorsement strategy has also been copied by PepsiCo to various countries, just like the “Pepsi stars” when they entered the Chinese market, which invited the mainstream stars at that time. In terms of packaging, Pepsi Cola specially designed and adopted spiral bottle, and the brand owner’s visual design was blue, showing the youthful appearance of young people, and the taste was gradually sweet, which was in line with young people’s preferences.
 
Pepsi Cola bet on the young people’s game of chess. After the marketing combination, the sales volume continued to soar. According to the third-party data, as of 1970, Coca Cola’s market share in the soft drink market accounted for 29.7%, while Pepsi Cola succeeded in catching up with 19.8%.
If Pepsi Cola’s “war of creation” is based on following Coca Cola’s strategy, the “Pepsi Generation” that anchors the new generation of consumers is Pepsi Cola’s “war of standing”.
“Duopoly” pattern of carbonated beverage market
“In the long run, any market will eventually become a competition between two horses.”
When talking about market competition, trout and Reese replied in the 22 business rules that “from an economic perspective, multiple competition will lead to a huge waste of resources, which is very unfortunate.”
In the period when new categories emerge, many brands keep abreast of each other. Everyone wants to rush to a new size quickly in the window period of “strong category cognition and weak brand cognition”, and then occupy the only two positions when the category is mature
In the business history, it is not uncommon for people of the same category to fall in love and kill each other. Pepsi and Coca Cola are only quite famous ones. For example, in the smart phone industry, Samsung and apple are closely related to each other in the global market share, and occupy the first and second place all the year round. A few years ago, the hot take out platform has reached the era of meituan first and hungry second. There are also Mercedes Benz and BMW of German luxury cars. In almost all similar cases, the first and the second will always occupy an absolute advantage in market share, which has almost become a law in the business world, that is, the “duopoly pattern” we often call – the tacit rules of competition between the first and the second in mature categories, reducing the threat of potential competitors and entrants.
In a fast-growing industry, it will gradually evolve from a number of competitive enterprises to several leading enterprises that hold the majority of the market share, and the leading enterprises are often the role that can determine the ceiling of an industry. At the same time, several leading enterprises are in an interdependent relationship, and the behavior of any one company will have a large or small impact on the profits of other companies, which causes leading enterprises to form a certain tacit understanding with their competitors. Before taking actions, they must first consider how the other party will react.
In the business world of the jungle, the winners and losers and rankings among enterprises are watched by passers-by. For enterprises, what is really important is to be responsible for the company’s revenue, shareholders’ wealth, consumer experience and product quality. As the brand director of Pepsi said in an interview with the media: nothing can attract consumers’ attention more than putting these two brands together.
Create a new Kingdom
With the increasingly fierce competition in the soft drink market, Coca Cola and Pepsi occupy the main market shares. According to the statistics of 2021, they jointly occupy 70% of the carbonated beverage market in the United States. As early as the 1960s, PepsiCo had already realized that the incremental space of the coke market was getting smaller and smaller, and constantly sought other business opportunities. Since Pepsi is destined to be the number two player in the cola industry, it will find another way to seize another blue ocean.
In 1965, Pepsi Cola merged with the snack food giant frito lay and officially changed its name to Pepsi. Since 1977, PepsiCo has entered the fast food industry, successively taking over pizza hut, Taco Bell and KFC, and then entered the peak of diversified operation for more than 30 years.
However, in the 1990s, with the increasingly fierce market competition and the gradual refinement of the market, PepsiCo, as an extensive diversified enterprise, faced with the pressure from various branches of the capital chain and multi category competitors, and the gradual weakening of the control ability of PepsiCo group, which led to the sharp reduction of the influence of the core brand. Relying on his keen sense of the market, Lu Yingde, PepsiCo’s Chief Strategic Officer, began to gradually change the company’s strategy from extensive diversification, Transition to relevance diversification contraction.
Lu Yingde laid out PepsiCo’s future with a long-term strategic vision, and found that the annual fixed assets investment in the catering business was huge, which brought great pressure on the headquarters’ capital. After entering the 21st century, with the improvement of living standards, people have a great demand for food
Hive can provide a shelter for these products and brands. It can take over those products that have made certain achievements but have not reached the DSD system standard, cultivate these brands, and promote them to the market through appropriate channels. For example, bubble water has successfully survived in Pepsi Cola.
From Coke’s second son to the world’s second largest food group
From the “war of creation” following Coca Cola to the “war of standing” represented by “Pepsi Generation”, and from the rapid expansion to the contraction of related diversification, Pepsi Cola has seized the future increment ahead of time.
Pepsi’s diversified attempts have also gradually formed a scale effect. In the recently released Forbes Global 2000, Nestle won the title of the world’s largest food company with sales of more than US $95 billion (revenue in 2021), followed by Pepsi with annual revenue of US $79.4 billion and Coca Cola with annual revenue of US $38.6 billion. In terms of revenue, Pepsi Cola is twice as large as Coca Cola.
However, on the net profit level, Coca Cola’s profit of US $10.3 billion exceeded Pepsi’s profit of US $7.6 billion. Coca Cola’s profit margin is about ten times that of Pepsi. Behind the difference in scale and profit margin is the different expansion strategies of the two.
The diversification of Coca Cola’s category focuses on “intake of liquids”, which is derived from the expansion strategy of legendary CEO Guo Sida – “everyone consumes 64 ounces of water per day, of which Coca Cola only accounts for 2 ounces. Although our market share has reached 35.9%, our share in consumers’ stomachs is only 3.12%. Expanding from consumers’ stomachs, there are unlimited opportunities in the future”.
Based on this, the diversification of Coca Cola is “liquid”, from pure water, coffee, tea drinks to sports drinks. Pepsi Cola spans beverages and snacks, and aims to contract all kinds of food in convenience stores. Its product line includes hundreds of brands. As of 2015, there are more than 20 product brands with annual sales of more than US $1 billion, such as Pepsi Cola, surf, happy, Gatorade, Tropicana, 7up, dolidoz, brisk, Quaker food, Chido and Melinda.
In the future, the “first opponent” of Pepsi Cola will no longer be Coca Cola, but Nestle.
Therefore, there is no secret book for successful cultivation. Pepsi will never define where to go now and in the future because of its past success. In Pepsi, who is over 100 years old, we don’t see a stubborn old man who is stubborn and complacent. Instead, we see a young man who is full of vitality and has set off waves in the tide of the times.
Times are changing, the mainstream is changing, consumer demand is changing, and Pepsi is changing.
Original title: what can I learn from “old consumption” Pepsi from Coke’s “second son” to the world’s second largest food group Author: Zhao Tiantian; Source: marketing beauty (ID: yingxiaozhimei), reprinted with authorization. Reprint authorization and media business cooperation: Amy (wechat: 1
What can we learn from Pepsi from the second largest food group in the world?
广告播出后,可乐可乐也拍了一个广告,回敬百事可乐,同样也是小男孩买饮料,他拿了两罐百事可乐放在地上,然后踩在百事可乐上,拿冰箱最上面的可口可乐,最后小男孩还很有礼貌地,把地上的两罐百事可乐放回冰箱。可口可乐的潜台词是:我的消费者更体面。
在一次万圣节的活动中,百事又一次先发制人,推出一张百事可乐披上可口可乐的包装,配文“祝你有一个恐怖的万圣节“,讽刺可口可乐面目狰狞,不受欢迎。之后可口可乐就着同一张图,配文”每一个平凡人都想当英雄“,两家公司的文字游戏玩得不亦乐乎。
百事在网络上被疯狂调侃为“万年老二碰瓷”操作,像是海报里表现“连吸管都在抗拒可口可乐”,又或是发出图片:两家公司售货机放在一起,嘲讽可口可乐无人问津。或许会有人觉得百事的叛逆期有点长,百年老牌却喜欢充当“刺头”。而百事的每一次“碰瓷”行为,都得到可口可乐的认真回应。这更像是两家公司深谋远虑的“双簧戏”,百事和可口可乐的每次互黑营销,都恰如其分地扩大了人们对自身品牌的关注度,提升了双方广告转化变现率,实现了共赢。
在商业史上,同品类相爱相杀的故事并不少见,百事和可口可乐只是颇为有名那个。例如智能手机界,三星和苹果全球市场份额紧贴着,常年占据第一和第二。前几年,火热的外卖平台,在如今到了美团第一,饿了么第二的时代。还有德系豪华车的奔驰和宝马,在几乎所有的类似案例中,老大和老二在市场份额上会一直占据绝对优势,这几乎成了商业世界里的定律,也就是我们常说的“双寡头格局”——成熟品类中老大和老二竞争的默契规则,降低潜在竞争者和进入者的威胁。
在一个高速成长的行业里,会逐渐从众多竞争企业,演变成几个龙头企业掌握市场绝大部分的份额,而龙头企业往往是最能决定一个行业天花板的角色。与此同时,几个龙头企业是处于相互依存的关系,任何一家公司的行为都会对另外几家的利润产生或大或小的影响,这就致使龙头企业面对竞争对手,必须形成一定的默契,在做出行动之前,必须先考虑到对方会做出怎样的反应。
在弱肉强食的商业世界中,企业之间的胜负和排名,路人看热闹,对于企业来说,真正重要的是对公司营收、股东财富负责,对消费者体验和产品品质负责。就像百事的品牌总监在接受媒体采访时说的:没有什么能比把这两个品牌放在一起更吸引消费者眼球的了。
另辟蹊径,独造王国
随着软饮市场竞争逐渐激烈,可口可乐和百事占据主要市场份额,截止2021年统计数据,两者共占据美国碳酸饮料市场70%的份额。早在六十年代,百事就已经洞察到可乐市场的增量空间,越来越小,并不断寻求别的商机。既然在可乐界,百事命中注定坐稳了老二,那么就另辟蹊径,抢占另一片蓝海。
1965年百事可乐公司与休闲食品巨头菲多利合并,正式更名为百事公司。从1977年开始,百事公司进军快餐业,先后将必胜客塔可钟肯德基收归麾下,随后进入了三十多年的多元化经营的高峰。
但是在20世纪90年代,随着市场竞争日渐激烈,市场逐步细化,百事作为粗放的多元化企业面临各个分支的资金链、多品类竞争对手的压力,以及百事集团掌控能力逐步削弱,致使核心品牌影响力锐减等困境,百事首席战略官卢英德凭借对市场的敏锐嗅觉,开始逐渐将公司战略由粗放型多元化,过渡到关联性多元化收缩。
卢英德用长远的战略眼光布局百事的未来,发现餐饮业务每年固定资产投入巨大,给总部资金带来了巨大的压力。在进入21世纪之后,随着生活水平的提高,人们对食品饮料等需求显著提高,对于食品健康的关注的加强。所以卢英德快速做出新的规划——产品健康化和结构均衡化,让百事实现可持续发展。
首先是市场经营重点重新回归饮料和休闲食品。
1997年10月,百事做出重大战略调整,即使那时餐饮行业依然为股东带来丰厚利润,但是百事还是坚定地将拥有必胜客、塔可钟和肯德基的餐厅业务从公司分离出去,使之成为一家独立的上市公司,即百胜全球公司。
随后,百事开始逐步收购相关契合其发展理念的公司。自2000年起,百事先后纳入桂格燕麦、佳得乐运动饮料、立顿茶、全球最大苏打水制造商Soda Stream等品牌,在保证良好财务绩效的同时,不断发扬创新精神以满足市场的需求。
早在2000年,百事打败其他竞争企业,以134亿美元的价格成功收购了桂格燕麦公司之后,百事公司占据全球非碳酸饮料行业的市场份额,上升至25%,这个数值是百事主要竞争对手可口可乐的1.5倍。
2020年,零食品类在百事的总营收里占55%。22个年销售超10亿美元的品牌,市值超过1600亿美元,每天能卖出10亿以上的产品。到现在,百事已经成功搭建起属于自己的零食饮料王国。
百事公司可以长久以来在老牌形象搭建方面屹立不倒,一方面是深谙营销传播的门道,另一方面也是在产品研发创新和对未来消费者需求的预测上,费尽心思。创新使百事公司能够发现全球市场中的新空间,并在诸多细分市场取得领先地位。
2018年,百事新成立了一个独立于核心总部的机构Hive,旨在培育公司内部已经形成的小品牌,同时研究新的流行趋势、承担起孵化新品牌的责任。
Hive能给这些产品和品牌提供一个庇护所。它能接手那些已经取得了一定成绩、但并没有达到DSD系统标准的产品,并培育这些品牌,用合适的渠道将它们推向市场,例如bubly气泡水就在百事可乐内部成功活了下来。
从可乐老二,到全球第二大食品集团
从跟随可口可乐的“开创之战”,到“Pepsi Generation”为代表的“立身之战”,再从快速扩张回归到关联性多元化收缩,百事可乐提前抢占了未来增量。
百事的多元化尝试也逐步形成规模效应。在近期公布的福布斯全球2000强中,雀巢以超过950亿美元(2021年营收)的销售额,蝉联全球最大食品公司的头衔,紧随其后的是年营收794亿美元的百事,年营收386亿美元的可口可乐位列第四。在营收规模上,百事可乐已然是可口可乐的两倍。
但在净利润水平上,可口可乐103亿美元利润,超过了百事的76亿。可口可乐的利润率是百事的十倍左右。规模和利润率差距的背后,是两者不同的扩张策略。
可口可乐的品类多元化围绕的是“摄入液体”,这源于传奇CEO郭思达的扩张策略——“每个人平均一天要消耗64盎司水,这里面可口可乐仅仅占2盎司。虽然我们的市场份额达到了35.9%,但是我们占消费者胃里的份额仅仅为3.12%,从消费者的胃去扩张,未来机会无限”。
基于此,可口可乐的多元化是“液态”的,从纯净水、咖啡、茶饮料到运动饮料等。而百事可乐横跨饮料和零食速食,旨在承包便利店的各类食品,产品线囊括数百个品牌。截止2015年数据,有百事可乐、激浪、乐事、佳得乐、纯果乐、7Up、多力多滋、Brisk、桂格食品、奇多、美琳达等20余个年销售额超过了10亿美元的产品品牌。
未来,百事可乐的“第一对手”,不再是可口可乐,而是雀巢。
因此,成功的修炼没有秘籍,百事永远不会因过去的成功,而定义现在和未来该何去何从。在年过百岁的百事身上,我们没有看到一个固步自封的倔老头,而是一个活力四射的青年人,在时代潮流中掀起一轮轮的浪花。
时代在变,主流在变,消费需求也在变,百事可变。

原标题:能和“老消费”学什么?|百事从可乐“老二”,到全球第二大食品集团
者:赵甜甜;来源:营销之美(ID:yingxiaozhimei),转载已获得授权。
转载授权及媒体商务合作:Amy(微信号:13701559246);
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