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As high fat and sugar drinks fall out of favour, PepsiCo UK is banking on premium and health-conscious consumers to drive demand for healthier options on the market.

With investors increasingly reluctant to commit to soft drink and energy stocks, The Drum spoke with PepsiCo UK’s top marketer to learn why it is scaling its sugar-free options in order to diversify their portfolios (or protect their market share).

“The big growth that we’ve observed across our beverage brands has been around no sugar” explained Natalie Redford, marketing director of PepsiCo UK. “We’re really unlocking what that means.” This shift is being seen around the globe.

“I think it’s the new norm,” Redford said. “Guilt-free, but not compromising. It’s proven really successful for us in the UK.”

And while the Advertising Standards Authority (ASA) ups its focus on cutting down high fat, salt, and sugar (HFSS) advertising, Redford said PepsiCo UK has responded to Government consultation relating to further advertising restrictions for products high in fat, salt and sugar.

“The great thing about the beverages and brands that I look after in my portfolio, and the ones that we advertise are no-sugar beverages that fall outside of the HFSS category,” Redford said.

Of all carbonated brands included in her UK portfolio, Pepsi Max tops the sugar-free market for cola, and 7up Free leads the lemon and lime.

PepsiCo UK is channelling this healthier alternative approach through its advertising.

In a first of its kind event for the 7up Free brand, this weekend, PepsiCo UK has launched a pop-up shop to commemorate the return of its chilled-out 90s mascot, Fido Dido.

“We wanted to use the ‘free’ in 7up Free to mean more than just no sugar,” Redford said. “We wanted to use the free to make a more ’emotional connection’ with our customers.”

With this thought in mind, Fido Dido House is an ‘anti-pop-up.’ While people normally ‘do do do,’ PepsiCo UK created an experience that allowed people to opt-out of the frenzy of hectic life, to feel free to just ‘be.’

Premiumisation

It claimed consumers are demanding more premium products; PepsiCo UK is increasing investment in this space.

In 2017, PepsiCo first launched Lifewtr ​- a premium water bottle brand – in North America in a bid to rival Coca-Cola’s Jennifer Aniston-endorsed Smartwater.

Serving as a canvas to showcase emerging artists’ work, the brand caters to the need for healthier alternatives to carbonated, sugary drinks, while supporting arts and culture. Now, Lifewtr has launched in the UK market as Arto Lifewtr.

Redford spoke how “premiumisation is definitely a trend that [PepsiCo] is going exercise more of in the next five years and it’s happening at every level.”

She puts it down to the breadth and depth as a company that means PepsiCo can play across those segments and foresees this will be a general direction for the brand as it steps out from the more mainstream drinks industry.

“We’re thinking how our brand can be served in a more premium way,” Redford detailed. “Whether that be a premium experience or a premium product.”

While moving towards healthier options is undoubtedly a strategic move for PepsiCo, it isn’t always an easy one. It’s main competitor Coca-Cola has to axe its Life brand, after-sales slumped in the UK, whereby the product accounted for less than 1% of its trademark sales.

Feature Image Credit: PepsiCo

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Sourced from The Drum

By Dave Kerpen

Teachers are the latest demographic marketers want to reach. Use these 5 strategies to successfully connect with this influential audience.

PepsiCo has had its share of marketing mishaps in recent years–perhaps most notably the widely vilified ad featuring Kendall Jenner handing a Pepsi to a cop during a protest. The 2017 commercial spawned such an internet backlash that it was pulled from programming one day later.

But Pepsi has also had some major successes, namely with the PepsiCo Recycling Rally campaign launched in 2010. This project has been so successful that it earned the company a Gold Honor in the MarCom Awards in December 2017.

For this award, PepsiCo created a campaign to teach K-12 students about recycling in their schools. They focused on marketing to educators and reached a new demographic via a program that is still going strong more than eight years later.

Educators are increasingly being recognized as a valuable audience to target. They make up a significant portion of the general population, have high participation rates in a number of sectors, and are sophisticated shoppers who respond to marketing that includes independent research and facts.

There are several marketing strategies brands can employ to effectively connect with educators.

1. Join forces for an important cause.

Many companies already include corporate social responsibility as a major part of their marketing strategies, and teachers are more willing to support brands that will add value to their students’ lives. PepsiCo used recycling and sustainability efforts to teach children about how to protect the environment. To follow PepsiCo’s lead, find a cause that represents a common interest between your company and educators.

2. Make it a competition.

Stir up educators’ competitive spirit with a contest in which classes or schools go head to head for a good cause. Everyone loves a little competition to make things interesting. A contest builds unity and teamwork within a class or school and gives teachers something concrete to work with as they attempt to get their students excited about school projects.

A great example of this is the Box Tops for Education program, which lets students collect box tops from food and other products and turn them into money and prizes for their schools.

3. Give them some extra incentive.

To encourage students to participate in these competitions, it’s important to provide teachers with incentives they can use to entice students to get involved. These could include tickets to an amusement park, a class pizza party, or a movie day in class. A great example is Pizza Hut’s Book It! program, in which kids earn free pizza for hitting a reading goal each month.

Motivation plays a huge role in how a student engages (or not) with a subject. These extrinsic motivators are especially powerful in changing student behavior and engagement, emphasizing skills, or encouraging certain behaviors. When used properly, they can be powerful tools for winning a child over to a school subject like reading or a civic activity like recycling.

4. Ease the lesson-planning burden.

Teachers are always looking for new materials to incorporate into their classrooms, so providing an educational component to your program or partnership will increase the chances of teachers wanting to take advantage of it. This aspect can also teach students how business and community service go together.

A major element of CSR is looking beyond the company’s bottom line and engaging in causes that further the social good. In the end, these efforts serve as good PR for a brand and encourage sales, but that’s not the main point. Companies tend to have resources that individuals lack, giving them the capacity to fund charities, sponsor community athletics or arts programs, and support local cultural or educational initiatives. Educators are eager for this support, especially when it comes with additional classroom tools and strategies.

5. Be selective with your audience.

First-grade teachers need different lessons and incentives than high school English teachers. Research what your demographic wants, as it will be challenging to find an overarching theme for different age ranges. Determine what type of teacher your company can most effectively connect with, and focus your efforts there.

Educators are a powerful force in society, and their influence is far-reaching. (I’m proud to say I’m a former public school math teacher myself!) Joining forces with teachers can elevate your marketing strategy, but you need the right methods to connect in a meaningful way. The tactics above will help you effectively partner with people who play an important role in shaping the minds of future generations.

Feature Image Credit: Getty

By Dave Kerpen

Founder and CEO, Likeable Local@davekerpen

Sourced from Inc.