Aneffective marketing strategy should be effective to reduce thecompany`s production costs and encourage the target consumers toconsider purchasing the barns. Digital marketing is one of the mostcost effective distribution channels that Pepsi Company isconsidering to employ while delivering its products. According toBailey (2014), digital marketing entails promoting brands by use ofthe electronic media and uses channels that allow firms to analyzetheir marketing campaigns to improve productivity critically.
Someof the channels that associate with digital marketing includeblogging, video streams, electronic billboards, podcasts, directemails, the web and mobile phone messaging. By securing an internetconnection, the potential customers can access information regardingPepsi Company anytime and anyhow they want it. The internet hasbecome the most powerful digital marketing medium (Bailey, 2014). Itis very cheap to access the internet for instance in cyber cafes andby use of personalized computer and mobile phones, and thus dataaccess regarding Pepsi Company is made easy and convenient for alltype of customers.
Useof third parties involves employing intermediaries such as theretailers and the wholesalers to advertise your brand to thepotential buyers. Use of third parties is a form of indirectmarketing channels, and their aim is to make more profits in the formof commissions. The third parties, therefore, end up setting highmarket prices which make it hard for the buyers to afford the brandand thus makes the channel cost prohibitive (Bailey, 2014).
Bailey(2014) argues that it is the customer’s tastes and preferences thatdetermine the distribution channel that Pepsi Company will adopt. Forinstance, if the customer requires goods for industrial use, then theuse of third parties to advertise the products is the most suitabledistribution channel. In case the customer prefers getting theinformation online then Pepsi Company should employ digital marketingas its distribution channel.
Bailey,S. (2014). PepsiCo’s three-channel distribution network – MarketRealist. Marketrealist.com. Retrieved 17 October 2016, fromhttp://marketrealist.com/2014/12/pepsicos-three-channel-distribution-network/