PepsiCo, Inc. Hispanic Marketing

By:Erika Balderas 10310790Nancy Valdez 20026459 Alex Valencia 10249971

MARK 3385.01Dr. Arturo Z. Vasquez-ParragaNovember 22, 2010

IntroductionWe examined the existing marketing strategies and growing opportunities that PepsiCo, Inc. is practicing towards the Hispanic community.

*To evaluate their performance and give recommendations, we used information provided by our survey outcomes and

Hispanic Marketing course.

Significant AchievementsAs one of the first major companies to engage in multicultural marketing, Pepsi is highly popular with Hispanic consumers.

• The Hispanic/Latino Advisory Board was created in the year 2000.

• Tropicana Products, Inc. joined the PepsiCo portfolio in 1998 and gives PepsiCo the strongest brand name in juice.

SWOT Analysis• Strength: Has various Hispanic celebrities in their

campaigns and advertisements.• Weaknesses: Pepsi brand image amongst Hispanic is

not as competitive as Coca-Cola.• Opportunity: A growing Hispanic market• Threat: People are more health conscious so they

prefer healthy drinks and juices.

Products Most popular amongst Hispanics• Gatorade Xtremo• Sierra Mist• Tropicana Juice• Manzanita Sol• Ruffle Queso

“El Reventon del Sabor” (Mega Party of Fun and Savor) campaign, with singers Chayanne of Puerto Rico and Lucero

of Mexico, was dedicated to increase Doritos and Pepsi drinks sales amongst Hispanic consumers.

Existing Competition

Pepsi introduced in the year 1903 and Coca-Cola in 1886 have always been rivals over trying to dominate the carbonated soft drink market.

Pepsi Cola places itself in the cost leadership

Target Market

• no preference to income level• Hispanic youth 18-34 (using fashions, music

and brand usage)• second target is Hispanic mothers because they

are involved in grocery shopping 79% of the time

Marketing Strategies

• El Reventon Del Sabor• Yo Sumo• Pepsi Refresh Project

Survey Results

Survey Results

Survey Results

Recommendations• PepsiCo should focus more on making their products

healthier because they will become more attractive towards Hispanic consumers.

• PepsiCo should try to push scholarship donations to show that they have social responsibility over the Hispanic youth.