This not so tongue-in-check question in a recent Wall Street Journal blog post covers an important aspect of a company’s product positioning message.

As the WSJ reported: “With 60% of EBIT [earnings before interest and taxes] from snacks and less than 25% from brand Pepsi, isn’t it time to change the name? That line from analysts at CLSA [a leading Asian brokerage and investment group] may not be as poetic as Shakespeare, but you get the deal. The big money may well be in Doritos, but the soda is what the company is named after. A note on PepsiCo PEP from CLSA today says just 11% of the company’s earnings before interest and tax (EBIT) come from its North American soft drinks business. Is it time for the company to re-brand as CheetosCo?”

Click the Doritos image to read more.

Post suggested KCJ


20 Replies to “Should PepsiCo Change Its Company Name?”

  1. I think PepsiCo should change its name. I think that soft drinks will one day leave the market completely as people become more aware of the adverse health effects. We can see that already in the United States. As other countries where soft drink sales are high still become more aware I think sales will drop significantly. PepsiCo should put more emphasis and give more backing to their stronger products in order to adapt to the changing global market.

  2. I don’t think that PepsiCo should change it’s name. It may have branched off into several different markets and it’s money is mainly with Doritos but I think the company should keep it to where it originated from and first started its business in the soft drink industry. They still have a strong market in countries abroad.

  3. I really do not think Pepsi should change its name. Even though most of the sales are not coming from the sodas, the name Pepsi is well known all around the world. It could be said to be part of the company’s identity. They should expand and back the products that are giving revenue, but not change the name, as it is already well positioned.

  4. PepsiCo should not change its name and it would in fact be foolish to do so. It has built up its name as one of the most profitable and large companies in the world and may loose some brand recognition if it were to change. Instead, PepsiCo should keep its name regardless of which of its products generate the company’s highest sales.

  5. I don’t think that PepsiCo should change their name because if they did so they would have to rebuild their brand name all over again. Although, if they were to change their name I think that it would bring attention to them in the media and people would be more inclined to buy their products.

  6. I disagree with those who think Pepsi should rename their brand. This company is known globally and there is no reason to rebrand it. To start fresh with a new name will not increase sales or business because the products are the same. Pepsi products are known to be found at any convenience store. Changing their name to CheetosCo will just cause confusion and discomfort for most.

  7. Interesting… I definitely would have to disagree with this. If PepsiCo were to rename themselves, their customers who do not follow them religiously (most of them!) would be very confused. I think on a marketing basis this an absolutely bad idea. Consumers have brand recognition and changing their name would just permanently leave behind the history of the company.

  8. I find the idea of changing PepsiCo to be kind of risky. It seems kind of bittersweet to imagine CheetosCo to be the new face on their soft drinks/snacks. No one knows how long Pepsi will be around, but we all want to remember PepsiCos origins, although the name is self-explanatory. Each line of drinks/snacks has its own distinct vibe and name for itself by now and I think only if Pepsi becomes outdated in the near future will consumers actually accept a new company name.

  9. I don’t think that PepsiCo should change their name. In business I feel that if something’s not broken then don’t fix it. This company is a well known and established brand and to change it would be pointless.

  10. I don’t think that PepsiCo should change their name. Although they are making more money with Doritos, but that doesn’t mean they should change their name. They are know all around the world, and they will lose customers.

  11. I do not think that Pepsi Co should change their name. The brand known as “Pepsi” is known throughout the world and has a good reputation. Even though the majority of their revenue is from Doritos, the brand is still named after the soda which got them started. It’s important to remember where you came from, and to not just throw it off to the side.

  12. I think it would be useless, even harmful for PepsiCo to change their name. Their name is already well known with all of their products, and to change the name could cause confusion. Just because their snacks sales are higher than their soft drink sales, does not mean that they have to rename or reinvent themselves. They have built a highly successful PepsiCo brand, and there is no reason to erase that name while they are still profitable.

  13. I don’t think it is entirely necessary for Pepsico to change their company name to CheetosCo just because their Doritos brand outsells Pepsi. Pepsi is well known throughout the world for Pepsi rather than Doritos. Changing the name just because one brand outsells another seems to be a reactive option rather than thinking of all things rationally on Pepsi’s part.This selling numbers may not be true for the company in years to come making the name change useless if they go through with it.

  14. I feel that PepsiCo should not change their name. For one, the company name has strong history constantly battling the Coca-Cola Company, and to change that, i feel, would leave some of the brands of PepsiCo in the dust.

  15. I think that changing the PepsiCo name can be a great innovation for them. They should focus more on what really creates the most profit for them. But in the end it doesn’t really matter that much for the consumer the name they choose because if it’s a name different from the actual products most people won’t pay attention to the label. It’s true that PepsiCo has a established brand name very competitive with Coca Cola Company. It will be interesting to see what they decide on.

  16. I do not think PepsiCo should change its name. The company has been extremely successful and is known worldwide. Just because they have branched off and created more products does not mean they need to change their title. PepsiCo is a widely known and respected name, and changing that could cause confusion and result in lower brand recognition.

  17. Although PepsiCo does not make most of its money from Pepsi, I think that they should keep their name just the way it is. I think that PepsiCo is almost a staple in the beverage and snack food industry. Most people know what it is when they hear the name PepsiCo. Changing this may change the view too much of what PepsiCo is. In doing so people may become more skeptical of what the brand is about and what they have to offer. I believe that if its not broken, don’t fix it.

  18. It really doesn’t matter if PepsiCo changes its name or not. The soda will still be called Pepsi and consumers will still buy it. The name change idea may bring PepsiCo a little more attention which may be good for business. On one hand I think that PepsiCo should change their name. They could be recognized more for the other products they sell. On the other hand, I believe that PepsiCo has been successful with the name they have so why change it. No matter what the decision will be Pepsi will continue to be a household name in this country.

  19. If PepsiCo is really as lucrative as this blog post says and they are making money, even though most of it comes from snacks, I would vote against changing its name. Pepsi and PepsiCo are well known throughout the world. They are popular and well liked so why toy with them? Sure, there’s a chance more earning will come in under the beverage but maybe not; it’s hard to say. Personally, I think brand recognition is important and in this case it is well established. Consumers recognize the brand, the logo and of course, the product. I say, “Let’s leave well enough alone.”

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