Abstract

The caselet “PepsiCo’s Foray into the DTC Channel: Is Digital Commerce Becoming Mainstream for Brands?” discusses the various factors that led to multinational Food and Beverage Corporation, PepsiCo, Inc. (PepsiCo) making a foray into the Direct-to-Customers (DTC) space in the US, during the COVID-19 pandemic, which saw wide-scale lockdowns. The two DTC websites – PantryShop.com and Snacks.com – focused sharply on meeting consumers’ needs, rather than selling specific products or brands. The case documents how PepsiCo, which had been heavily dependent on brick-and-mortar retail sales, had shifted its focus over the past few years to the e-commerce space following changing retail trends. So, are well-established brands all set to leverage the digital commerce space to derive business benefits, or is it just a temporary jaunt to beat the unprecedented circumstances caused by the pandemic?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Scrutinize the massive consumer shift to digital channels triggered by the pandemic.
• Analyze the requirements of starting an e-commerce venture for a Consumer-Packaged Goods (CPG) brand.
• Design a new distribution channel.
• Understand the various business models in e-commerce.
• Appreciate the customer-centric capabilities needed for success in the DTC channel.

Keywords

E-business; Retail Technology; Consumer Behavior; Economics and Business Environment; Sales and Distribution Management; Strategic Management; Direct to Customer (DTC); Digital Commerce; Consumer Packaged Goods Industry; Pandemic Management; Customer-centric; Distribution Channel Design; Consumers’ needs; End-to-end IT capabilities; Specialized Product Packs