Consumer tastes and preferences for Pepsi and PepsiCo products

There are several factors that impact the demand of Pepsi. Firstly, it is the consumers own preference
that has a major impact on it. If the consumer preference is for Pepsi, the brand enjoys high popularity
and demand. Pepsi has priced its products in most markets in a manner that suits most of its customers
so pricing is not a factor that would make its customers switch preferences especially considering Pepsi
and Coca Cola have a duopoly in the market so the prices of the competitors remain the same as there
is a stiff competition and the companies are highly interdependent on each other.

 Consumers prefer to drink Pepsi and other soft beverages more during festive occasions
due to the massive advertising campaigns taken by Pepsi to promote their product and
associate it with those festivals such as Holi and Diwali. Pepsi brings celebrities to
promote their soft drink.
 New scientific researches which talk about the negative impacts of Soft Drinks like Pepsi
impact their taste and preferences and some consumers switch to the sugar free
versions of Pepsi or switch completely to a healthier alternative. Environmentally
conscious consumers opt for the tin can version of Pepsi which offers less quantity at
the same price but in a 300ml can instead of a 600ml plastic bottle which is damaging to
the environment. Although in India Pepsi makes most of its sales from the 600ml plastic
bottle.
 Geographical Factors impact the sales of soft drinks as due to the advertisement
campaigns taken the company earns more revenue from countries that have a hot
climate, especially the countries that have a Temperate, Dry, or Tropical Climate their
citizens like to drink a cold beverage that satisfies their palette on a hot and humid
sunny day. Due to the caffeine content and sugar content in the beverages that are not
sugar free PepsiCo soft drinks are stimulating as they act as a quick source of energy,
joy, and refreshment. Different countries sell different flavours of Pepsi around the
globe and each country has their own specific flavor. Pepsi Vanilla and Pepsi Cherry
flavours are popular in North America and are sometimes preferred over the regular
Pepsi flavor by children. The Cherry and Vanilla flavours are also sold in Europe but are
not as popular among the European Consumers.
In a country like India 40% of the soft beverage sales happen during the summer season
and the peak summer season varies in different parts of the country and that is when
the sale of Pepsi increases the most in the specific region. Pepsi has been carrying out
massive advertising campaigns throughout the year but increases its advertisements
through various channels of advertising during the summer season as the company has
associated their product to be drunk by the consumer on a hot and tiring summer day,
the soft drink makes more sales if their product is sold extremely chilled in all the stores
 and kiosks as specially during the summer season the consumers prefer to drink it cold
and mostly open the bottle for consumption as soon as they make the purchase.
 If Pepsi provides discounts or wallet cashback on purchase of their bottles then the
consumers would prefer to buy their product over the competition. An example of this
offer would be the Paytm 20 rupees. Cashback offer provided to consumers on purchase
of the bottle. Festival packs are specially made for the various festivals in India by
offering a new packaging; product packaging is the first thing the consumer notices so
they ensure that the packaging grabs the customer’s attention and highlights their
product.