PepsiCo Direct To Consumer

Pepsico decided to expand its business and reach more customers by launching new direct-to-consumer sites in May 2020. One is Snacks.com and the other is PantryShop.com. They offer the company’s products that comprise beverages and snacks. The intention behind the same was to reach more consumers. However, it must stand against other e-commerce giants and physical stores. Let us know about that the PepsiCo Direct To Consumer.

PepsiCo Direct To Consumer

Pepsico launched Snacks.com and Pantryshop.com in the name of Direct To Consumer in 2020. The aim was to reach more customers according to the increasing demand for e-commerce. However, its major revenue still comes from the physical stores.

Rise Of Pepsico Direct-To-Consumer

The company decided to launch the two sites within thirty days of the rise of the idea. In case the consumers expect something new, the company said that the platforms will offer iconic and other Starbucks drinks. The motive is to provide a wide range of products and allow consumers to purchase anything they want.

These sites focus on consumer requirements instead of specific brands or products. Thus, Pepsico created two sites instead of keeping everything in the same place. Consumers need not visit individual websites to purchase individual products.

Besides DTC (Direct To Consumer), Pepsico provides essential relief and food to people who hit food scarcity due to COVID-19. Families that are at risk and the students that do not go to school got $45 million and other resources.

Idea Behind Pepsico Direct-To-Consumer

It acts as a shelf in a physical store because the consumers will come across other products while purchasing the required one. Pepsico analyzed consumer behavior during the pandemic. Accordingly, it decided to go online and keep the websites simple. Gibu Thomas, the head of e-commerce and VP of Pepsico, said that it represents how efficient the company’s e-commerce platform and digital capabilities are.

Most consumer orders get fulfilled within two or three days. The company understands consumer insights and iterates according to the direct feedback given by them. It helps Pepsico in fulfilling consumer expectations. The company will improve its retail, merchandising, and e-commerce strategy accordingly and keep iterating until it reaches the appropriate consumer proposition.

Snacks.com

The consumers will come across a variety of chips, nuts, Tostitos, crackers, and dips. They can choose from more than 100 items or purchase Frito-Lay products in bundles. The company will provide free shipping if the total amount of the order goes above $15. On this site, consumers can shop according to the category (occasion, snack type, flavor, and brand) or see all brands together.

According to the shipping policy, the consumers will get their orders within 5 to 7 business days. Multiple items will get delivered in minimum boxes to ensure safe delivery. No changes will be made in a placed order. Similarly, an order will get sent only to one delivery address. Errors or damages in the orders must get reported within 14 days with no replacement.

Pantryshop.com

This drink provides food and drinks for all occasions. So, the consumers will get snacks, rise, and shine, everyday pantries, family snacks, food full of protein, beverages, and bundles. The bundles contain the standard size and refill for Snacking Staples. The former costs $29.95 and the latter, $22.00. The Family Favorites Bundle costs $26.00.

It does not offer returns and refunds. However, the consumers will get free standard shipping for over $20. The orders will get delivered within two to four business days. The ones living in Canada, Alaska, and Hawaii may get disappointed because Pantryshop does not ship there.

Pantryshop account holders can track their orders by using the associated map.

However, the order cannot get canceled. Similarly, multiple packages may get delivered on different days for a faster delivery process. Clicking on the image carousel of each image will help the consumers know the nutritional facts of the food item. But, they cannot change the flavors.

Advantages Of Pepsico DTC

  • Pepsico knows that people move to comfortable food items during the crisis, and DTC helps do it. Thus, it can maintain a healthy relationship with the consumers.
  • The consumers get a personal demonstration of products and home delivery. The company can control the brand story.
  • Pepsico’s e-commerce sales reached $2 million in 2020 which was more than the physical commerce.
  • The company must keep the prices, products, and packaging updated. Similarly, it must not rely on the retailers for the same.
  • The DTC model helps the company to reach more consumers and improve consumer engagement by understanding their behavior in the case of e-commerce.

Challenges To Pepsico DTC

  • Pepsico falls under the non-essential category, So, Pepsico and other brands must move to essential products from luxurious ones.
  • The supply chain may get disrupted and shipping may get delayed.
  • Long-distance delivery is difficult. Pepsico has several competitors like Amazon, Walmart, etc in this case.
  • The company must also think of funding and how much money it can outsource. It sells products at lower costs than the physical stores. However, the latter remains the primary source of purchasing for some consumers.
  • The brands sold by Pepsico DTC cannot stand in front of giant retailers like Flipkart, Amazon, Walmart, etc.

Conclusion

Snacks.com and Pantryshop.com work as alternative sources for people inclined toward online shopping. Pepsico understands the growing use of DTC. However, it earns more through physical stores than e-commerce. The company will reiterate according to the consumer demands because it aims at keeping them happy.

Frequently Asked Questions
  1. What Are The Competitors Of Pepsico?

The competitors of Pepsico are Red Bull, Coca-Cola, P&G, Dr. Pepper Snapple, and more.

  1. What Filters Are Available At Snacks.Com?

Consumers can purchase the food items according to the brand, occasion, flavor, and snack type. They, too, have sub-categories. For instance, Baked, Quaker, and Ruffles are the brands. Dips, corn chips, and cereal are the snack types. Tangy, spicy, and plain are the flavors. Work and gaming are the occasions.

  1. Can Someone Send A Bundle To The Loved One On Pantryshop.Com?

The person must only mention the receiver’s address during checkout on the website

PepsiCo Direct To Consumer

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