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.