Despite being a leader in soft drinks industry, the PepsiCo Company has been faced by stiff competition from other firms such as the Coca Cola Company. This has made it necessary for PepsiCo to adopt innovative strategies to ensure that their products continue to reach the desired market. This stems from the realization that it is important for the company to come up with innovative ways to reach the target market in a highly competitive market.
The success of PepsiCo can be attributed to their ability to target new markets. PepsiCo has been known for its niche marketing. Market niche innovation refers to the ability of the company to open up new markets using the existing technology (Von Stamm, 2003). In earlier years the company targeted the black community as a market for their products. The company also targeted different communities and came up with strategies to reach this target markets. As a result of their innovative marketing, PepsiCo was able to raise sales in the targeted communities. At present the company continues to come up with more innovative ways to reach the desired market. These include a redesigning of the Pepsi cans to have a design that included more than 30 different backgrounds for each can. This is an example of the innovation that is carried out by PepsiCo to help in achieving growth and success.
The PepsiCo Company is driven by the market share in reaching it niche market. This has made it easier for the Company to identify the proper channels of distributions for their products. To enable the Company to attain a larger market share, the company has developed distribution channels that allow it to reach its entire target market. The company has also expanded the distribution channels through globalization. In addition, the PepsiCo Company has reached to a wider market through the use of proper and targeted promotions.