First, Pepsi cash back to save the market.
According to Caijing. On September 12, PepsiCo launched a new customer, loyalty programs. Cash back 10% every time you buy a combination of Pepsi drinks and snacks, and every $2 returned will be directly credited to the customer's electronic account. The data shows that Coca-Cola's sales have only increased by 8% in the past six years, while Pepsi's sales have actually decreased by 9%.
Behind Pepsi's plan is the irresistible downward trend of carbonated soft drinks market. In the United States, the earliest decline of the whole carbonated soft drinks appeared in 1998, and it showed a continuous downward trend of 12 years from 2005. For the China market, the continuous decline of carbonated drinks began in 2000.
The data show that the share of carbonated drinks in the domestic market was 36% in 2000, decreased to 30.96% in 2006, decreased to 22.34% in 20 10, decreased to about 20% in 20 12, and decreased to15. At the same time, in 20 13, carbonated drinks fell from the largest category to the second, and the first place was occupied by bottled water.
According to Accenture China Consumer Insight 20 18, fitness consumption has become one of the five new trends under the new consumption wave. Exercise and fitness is obviously one of the lifestyles advocated by young people at present; Moreover, many Consumer Reports also mentioned that the post-90s generation in China has a high awareness of health preservation, and people pay attention to health by carrying thermos cups, eating coarse grains for bread and drinking freshly squeezed drinks.
Influenced by the global tide of healthy living, Coca-Cola announced its annual sales slowdown forecast at the beginning of 20 19, followed by Pepsi. According to its financial report in February this year, the net revenue in the fourth quarter was195.2 billion US dollars, which was in line with expectations and basically the same as last year. The profit in the fourth quarter was $6.85 billion, compared with a loss of $765.438+0 billion in the same period last year; The adjusted earnings per share was $65,438+$0.49, which was the same as expected. PepsiCo lowered its adjusted earnings per share to $5.5 in 20 19 and to $5.66 in 20 18, which was lower than the analyst's forecast of $5.86. PepsiCo also announced that it will extend its cost-saving plan to 2023.
It can be said that as a traditional beverage and food giant, Pepsi-Cola is trying its best to increase sales, and if it doesn't make a comeback, it will become its new game. So can this game of drinking coke for money really save the sales of Pepsi?
Second, how should we treat the problem of Pepsi?
To tell the truth, from the perspective of the whole world, the reason why cola, a sugary soda, can be popular all over the world is, in a sense, the product of cultural economy. For a long time after the invention of cola, cola was actually popular in the United States. The rise of cola actually started from two world wars. Because of American foreign aid and American troops fighting everywhere, it has been brought to all parts of the world. However, at this time, everyone is not particularly cold about coke. But with the popularity of American pop culture in the world, especially the popularity of punk culture, eating fried chicken and drinking coke has become a trend. It is precisely because of this that cola is popular all over the world. It can be said that the US military has promoted the globalization of cola, and American pop culture has promoted the global popularity of cola.
However, since 1990s, the fitness craze has become a popular trend. This trend first formed in the United States and then spread to all parts of the world. Fitness tropics have a healthy diet. At this time, the consumption lifestyle represented by high-sugar carbonated drinks has undergone great changes, and more and more people are beginning to pay attention to their health. Medical organizations such as the World Health Organization have also begun to put forward suggestions on "reducing blood sugar".
Driven by this fitness craze, Coca-Cola, Pepsi-Cola and snapp, the three beverage giants that have been locked in the past, rarely held hands and launched a * * * statement: they said that they would reduce the total sugar content of their American products by 25% in 2025. In fact, the current problem faced by Pepsi is that under the influence of the global fitness and health boom, its diversified products have not been fully supported, and the traditional high-sugar cola products have inevitably declined. So in the face of such a problem, where is the way out for Pepsi? Is the cashback plan really useful?
We can't deny that for most consumers, everyone is a sensitive person, and reducing prices does have the effect of turning decay into magic to some extent. But for coke, the effect of price reduction can be said to be very low, because the biggest feature of coke in recent years is that it does not raise prices. Judging from drinks, coke may be the commodity with the least price increase. In fact, consumers have been expecting low prices for coke, so you are lower than the low price 10%. It may be useful for those consumers who are extremely poor or extremely price-conscious, but because Coke is facing the health upgrade brought by the fitness boom, the effect of price reduction or cash back may not be too great.
So, does Pepsi have any other good ideas? Yes, and there may be many directions.
First of all, fitness drinks and healthy drinks are good ideas. In fact, for coke people, it is not because people stop drinking drinks, but because people have switched from sugary drinks to healthier drinks. If Pepsi can introduce more fitness drinks and healthy drinks at this time, it is entirely possible to lead consumers from the original high-sugar drinks to other drinks. By its own admission, 8.5% of Pepsi's revenue comes from new products released in the past three years. The CEO of PepsiCo has also said that carbonated drinks account for less than a quarter of PepsiCo's total global sales, while health products including bottled water and sugar-free drinks have accounted for a quarter of the total sales. In this case, we can actually consider upgrading the healthy beverage products in an all-round way and building Pepsi's own healthy beverage family, so as to enhance the competitiveness of the beverage market.
Secondly, create a diversified beverage and snack product system. Consumers pay more attention to health, which is the pursuit of diversification brought about by the global consumption upgrade. One of the core reasons for the poor sales of Pepsi is that the products have aged to a certain extent, and there is an increasing demand for diversification and personalization. Therefore, at this time, PepsiCo can completely build a closed loop on the basis of the original food and beverage varieties, including various needs, and form its own system to meet the individual needs of different consumer groups.
Third, the further promotion of marketing is king. In a sense, cashback activity is actually a marketing activity, and Pepsi has always been an expert in marketing. For example, its retro marketing launched on 20 18 has achieved good results. If Pepsi can promote this marketing method, it may achieve better results. For example, the Arctic Ocean soda, which has risen strongly in China in recent years, is actually the representative of the old soda. According to Qixinbao's data, this old soda company has not only been reborn, but also done a good job. It is precisely because of its good marketing that this sentimental brand has become the key to the success of Arctic Ocean soda, and Pepsi can do more in this respect.
In fact, since the trend has been formed, Pepsi should rise to the challenge, but as such a large group, it is not a simple matter to want to transform, and it needs more diversified and comprehensive top-level design.