14 December, 2018 BeOn

PepsiCo: omnichannel strategy and portfolio expansion

Since consumers are switching to healthier food and to online shopping, Pepsico announced its intention to innovate and expand its portfolio in Latin America. José María Bagnardi, Pepsico’s Market Unit Leader in Chile, gave some details about the next steps the company will take in order to meet new customers’ needs and how they plan to make eCommerce one of the key channels for a sustained growth in sales.

PepsiCo, the american multinational with more than 50 years of experience, owns the widest range of food and beverages portfolio around the globe. Some of the most well known of their almost 30 different brands are Lays, Quaker, Pepsi-Cola, Tropicana and Gatorade. The company’s retail sales generate more than 1000 millions dollars per year, and their products reach more than 200 countries.

Considering that almost 27,5% of the company’s global profit comes from nutritious and low calories goods, it is crucial to Pepsico to focus on expanding their portfolio to the increasing demand of healthier products. The marketing and sale strategy pursued by the company will be omnichannel and they will also invest in research programs for Latin America in order to enrich their innovation projects not only within the region but all over the world.

In a recent interview, José María Bagnardi, went into further detail about the commercial strategy reorientation and highlighted the company’s intention to increase their online presence, declaring that PepsiCo is constantly innovating, investing and learning from all their different consumers and markets where they operate. Bagnardi also added that despite traditional channels remain crucial, eCommerce became another key aspect for sales.

In addition to this shift in their strategy, sustainability also became one of the fundamental principles for growth.  As a result, PepsiCo will not only transform their portfolio with healthier and more nutritious items, but they will also significantly reduce environmental impacts by 2025. Even though the company did not give more details about this topic, what is certain is that their commercial strategy will not be limited to traditional channels and the focus will be also on eCommerce.

The company is now at the middle of a strategic decision making process that aims to improve the efficiency  of commercial and marketing investments throughout all channels.