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May 11, 2020

PepsiCo launches D2C services in Covid-19 move

US food and beverage giant PepsiCo has launched an e-commerce initiative to meet consumer demand during the coronavirus pandemic.

By Leonie Barrie

US food and beverage giant PepsiCo has launched two direct-to-consumer websites to meet consumer demand during the coronavirus pandemic.

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Unilever- A Deep-dive into Product Launches and Advertising Strategy

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The Frito Lay crisp brand owner has launched PantryShop.com and Snacks.com, on which US-based shoppers can order an assortment of PepsiCo’s food and beverage products.

On PantryShop.com, consumers can order bundles containing PepsiCo’s brands such as Quaker, Gatorade, SunChips and Tropicana.

The multi-product pantry kits are priced at US$29.95 and $49.95.

On Snacks.com, consumers can choose from more than 100 Frito-Lay products including Lay’s, Tostitos, Cheetos, Doritos and Ruffles, as well as dips, crackers, nuts and other products.

Gibu Thomas, senior vice president and head of e-commerce at PepsiCo, said: “In these uncertain times, as more and more consumers are using e-commerce channels to purchase food and beverage products, PantryShop.com and Snacks.com offer shoppers another alternative for easy and fast access to products they love.”

The company said the two D2C platforms were developed from concept to execution in less than 30 days by “leveraging a combination of PepsiCo’s technology, insights, resources and inventory to quickly meet consumers’ evolving needs”.

It suggested the the majority of orders on the sites will arrive within two business days.

A number of food manufacturers have, in recent weeks, reflected on how consumers have used e-commerce more during the lockdowns imposed to try to curb the spread of Covid-19.

“This is a key area where we saw true significant increases,” Nestlé CEO Mark Schneider said last month. “I think some of that will be here to stay. One of the side effects of this crisis will be it will be a breakthrough event when it comes to e-commerce for food and beverage.

“Food and beverage categories [have] tended to be somewhat slower when it comes to e-commerce, compared to, for example, books or consumer electronics. I think some of that is changing now because people see the convenience of e-commerce in food and beverage as well.”

Read just-food’s analysis – How will Covid-19 shape direct-to-consumer platforms?

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Unilever- A Deep-dive into Product Launches and Advertising Strategy

Unilever product advertising is mainly through mainstream TV channels. Out of the products advertised so far at least 50% (over 850) of ads have been run on TV, while print media comes second with 496 ads. Unilever also utilizes social media platforms for advertisement. Unilever products are categorized by innovation ratings and tags in our product launch database. The North American region consists of almost 74 products with innovations related to the formulation of the product. Europe and other regions also have more products categorized under formulation-related innovation, followed by the packaging and positioning of the products. Most Unilever products are tagged with “High Vitamins”, “Recyclable”, and “Natural” tags to understand what the product differentiator is from other products available in the market. The majority of products belong to the personal care industry with a total of 5,788 products to date. This report, through the Unilever Example, illustrates how GlobalData Explorer enables you to:  
  • Track product launches by FMCG companies to get an understanding of the product-level strategies including geographic concentrations, innovation types, product claim, category focus and more
  • Monitoring the advertising strategies of various brands and gain insights into channel focus, regional focus, and more
  • Perform company-level analysis to understand business model, size, and geographic focus
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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