Week 2: A Closer Look at Pepsi’s Product Positioning Strategies

As consumers, we are exposed to thousands of products every time we walk into a store. Companies’ oftently stress on placing their products in a position that will increase the consumer’s awareness. This week, at Pepsi Beverages Company, I learned of their product positioning strategies in both large format and small format stores. 

The product positioning basics at PBC start with what is called core 6. Core 6 is part of a planogram Pepsi has created for their employees when positioning products at the store. This planogram requires products to be positioned in the following order: Pepsi, Pepsi Max, Diet Pepsi, Sierra Mist, Mountain Dew, and Dr. Pepper. Any other products such as Crush will follow and is included in what is known as the core 6 + 1. According to one of the Salesmen, Pepsi has developed this plan due to recent studies. Research shows consumers are more likely to look at products the way the read (left to right). Coca-Cola being Pepsi’s biggest competitor, they stress on placing Pepsi and its related products (Max and Diet) farther to the left.

Product Positioning is more than just inside the cold vaults. Pepsi Beverages Company has an array of strategies used while positioning their products: 

Point of Purchase/Sale: Advertising placed near the product location in a store. Can be either inside or outside, illuminated or non-illuminated.

Boom Sign: Sign, illuminated or non-illuminated, hung from a boom over the front of a beverage account, often with part of the sign giving the account’s name. 

Bubble Front Vendor: Design of the vendor sign front that is curved in appearance opposed to the traditional flat front machine. 

Cold Vault: Area in refrigerated equipment designed for soft drinks accessible to the consumer.

Take-Home Products: Product sold warm and generally purchased for at home or future consumption.

End Cap: Secondary display of product at the end of an aisle in a store.

FIFO- Products to expire first are placed on top of the display or closer to the left

Next time you walk into a store or retailer, take a look at how Pepsi is positioned and compare to other stores you have visited. You will notice, that unless the store has its own planogram, the position of these products will be the same.

My First Week at PBC!

Intern: Jose Nunez

Everyone dreams of receiving that email or phone call extending an offer to participate in an internship. My dream became a reality a couple months ago when Pepsi Beverages Company invited me to their Sales Development Program for this upcoming summer. It’s been already a week since the start of the internship. Read below and learn what you may experience the first week of your internship.

Day 1:

Nervous but excited at the same time, I woke up on Tuesday May 22, 2011 and suited up for one of the biggest days of my life. As I entered the office, I was taken to a room where I was asked to sign various documents and watch videos on company policies. Throughout the videos various employees walked in and welcomed us to the Pepsi family. Along with me was a new hire which was to start in Human Resources. Following the videos, we were taken around the facility where we were introduced to Pepsi executives and employees. I feared this moment as several of my friends mentioned that the first day of an internship, I would most likely get ignored. This was not the case as I was enthusiastically greeted by many of the employees. Many seemed to be interested in my career paths as they asked about my major, school, and interest. To end the tour, I had to the opportunity to meet with the sales manager (my boss), Mr. Jorge Rojas. He then explained to me some of my responsibilities and what I should expect this upcoming summer. To culminate the day, I went to the HR office where I took my picture and turned in all my paper work.

Day 2:

As I applied for the position, many informed me about the work schedule and it’s early working hours. I was able to experience this right off the bat in my second day of work as I was asked to arrive at 5:30 a.m. As early as it may sound, many of the Pepsi employees were already on site for a long day of work. My day of work was however, the longest one I would experience the whole summer. Following a short meeting I had with my boss, I was introduced to Mr. Hiep White, one of the sales representatives for the company. Sarcastically he said, “You have picked the perfect day to start working, we are getting audited tomorrow”. Additionally he explained to me about the “Best of the Best” competitions they had yearly amongst the sales representative. The Best of the Best is an annual event where the accounts of different sales representative get ranked. The winner receives an all-expense paid vacation for two. Motivated by this competition, the sales representative and I headed out to his accounts to make sure everything was all set for the big day. At the end of the day (9:00 p.m.) we visited and polished over 15 accounts.

Day 3:

Following a long day of work, I was back at the plant at 5:30 a.m. to be part of the biggest day of the year for Pepsi or what they consider their Super Bowl, “The Best of the Best” competition. At this event, I was able to meet some of the higher ranked employees such as the Vice President of Regional Sales, Mrs. Paula Hopkins. Not to mention, I was able to network with Pepsi executives from the different plants in Florida. Following the competition, I was once again assigned to a sales representative and taken on the trade to see the different accounts. Throughout the day, I was able to learn different strategies on product positioning and selling techniques used when dealing with store managers. 

Day 4:

After spending two days with salesman, I was placed with a Pepsi driver so I could get a feel of the different departments of the organization. Throughout the day we visited over 15 stores and distributed merchandise to the different accounts.  I also was able to learn the computerized system used by salesman when checking inventory. Through this handheld, I learned Pepsi uses FIFO as they stack the oldest merchandise on top.