PepsiCo is Profiting from Selling Snacks and Smart Marketing

Stacey Doyle's picture

At a time when many people are watching their weight PepsiCo is increasing sales by being the largest snack food maker in the world and using a few savvy marketing strategies.

Many people might not realize everything from the breakfast table to snacks-on-the-go are created by PepsiCo. The savvy company has a combination of products and marketing techniques that made PepsiCo first-quarter profits top analysts' estimates. From cola to oatmeal, PepsiCo has their fingers in many figurative pies.

PepsiCo Reports First-Quarter Profits

After PepsiCo reported first-quarter profits, many analysts are advising investors to hold the stock. The Purchase, New York-based company reported profit of 77 cents a share, which excluded some items. Snack sales volume soared 4 percent. Total PepsiCo sales rose 1.2 percent to $12.6 billion. Analysts had estimated sales of $12.5 billion. Shares gained 15 percent in 2013. Even if you decide not to buy the snacks foods, consumers might want to invest in a few shares of PepsiCo.

Indra Nooyi, Chief Executive Officer, is working to increase snack sales by spending more on marketing for brands such as Quaker oatmeal and Lays potato chips. Nooyi is also focusing on soft drinks in the United states to try to get some of the market share from Coca Cola Co. Most people remember seeing the competition between the three new flavors of Lays potato chips created by actual snack enthusiasts. Everyone is still voting for their favorite new Lays potato chip flavor on Facebook. The flavors include Cheesy Garlic Bread, Chicken and Waffles and Sriracha. The famous faces of the "Do Us a Flavor" campaign were Michael Symon of “The Chew” and Eva Longoria of “Desperate Housewives” fame. It's a savvy marketing campaign many people are noticing. Which one is your favorite Lays flavor? Also, having stars such as Beyonce promote Pepsi Cola in slick commercials is a sure way to get attention - and customers.

Is PepsiCo On Your Table?

Many consumers often hesitate about serving soft drinks such as Pepsi Cola because of empty calories. In New York, the proposed soda ban sought to shrink jumbo sized sodas to help people regain control of their diet habits. But PepsiCo could be lurking on your table in other ways. It is likely you could be using PepsiCo products on your breakfast table such as Tropicana orange juice or Aunt Jemima syrup for your pancakes. They also merged with Quaker oats so your oatmeal might also be a PepsiCo product.

In fact, PepsiCo could also be hanging around in your child's lunch. If you kids eat Lays potato chips and drinks Gatorade or Aquafina water, they are supporting PepsiCo products. Even when you pack those healthy Quaker granola snack bars, they are made by the famous beverage corporation. If you serve Rice-A-Roni with dinner at night, it is also part of this thriving company's products along with the cup of Lipton tea you have with an evening snack. Even if you are avoiding snacks like any other overweight Americans, PepsiCo seems to be serving up something you are likely to consume.

Clearly smart acquisitions were a key to success. PepsiCo products are distributed in over 200 countries. Nooyi has been the chief exec since 2006 and the company employs hundreds of thousands of people around the globe. PepsiCo was formed in 1965 when the Pepsi-Cola Company and Frito-Lay, Inc. merged. North Carolina pharmacist, Caleb Bradham, developed the recipe for the renowned Pepsi soft drink in the 1880s. By 1903, he patented it and Pepsi-Cola Company was first incorporated in 1919 in the state of Delaware. In the 1930's, the company faced bankruptcy. Few might have thought back then PepsiCo would become such a profitable empire. Are you serving a PepsiCo product today?

Image Source: Wikimedia Commons Antoine Amarilli

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