PepsiCo: A systematic approach to marketing and product development

Over the last decade the focus has been on protecting children: from exposure to food and beverage marketing as well as considering the impact of foods and drinks on children’s development and overall health.

The result? Companies aiming to be in the forefront of the food and beverage market tend to take a two-pronged approach: on the one hand, working to ensure responsible marketing practices that do not target young children; on the other hand, focusing on product development for healthier options (reducing added sugars in beverage brands and increasing availability of nutritious snacks, for example) and providing more choice for families and their children.

PepsiCo’s products are consumed more than one billion times a day across the globe, and children are among these consumers. Thus, the company is committed to responsible marketing and has a clear policy on responsible marketing to children. At the same time, recognising that their products are being consumed by children and that consumers of all ages are key to the success of the business.

Global aspirations – local implementations

To make certain that policies on responsible sales and marketing are being implemented throughout PepsiCo’s multitude of markets, the public policy, marketing, and legal teams work closely together to help ensure the company is on the leading edge and constantly developing products and messaging that are up to date.

Because PepsiCo is a global company, the markets differ across regions and cultures. To ensure a common standard, global policies are based on WHO and industry standards, for example, The International Food & Beverage Alliance’s Global Responsible Marketing Policy. The public policy team also works with local teams as well as industry associations to ensure that these policies are implemented in all markets where the company does business, recognising the importance of both national legislation and broader industry standards to establish uniform practice and drive development in the area.

Getting the consumer on board

The company has set aggressive targets for the growth of their more nutritious product segment and, while they are making progress toward the goals, recognises that there are challenges: “Reformulations can be made, but you also need to get the consumer on board,” says company Public Policy Director, Janis Herzig. “A significant challenge is how best to match consumer demand for nutrition, convenient and great taste with research and development as well as marketing,” she continues.

To support its targets of increasing the consumption of more nutritious products, the company has been increasing marketing of its more nutritious options and works closely with consumer education programs through, for example, industry associations to help consumers choose the right products for their families.