The Role of Strategic Pricing and Financial Sustainability in Iraq’s Fast-Moving Consumer Goods (FMCG) Market: A Case Study of PepsiCo Iraq’s Market Strategies

This study investigates the impact of strategic pricing on financial sustainability within Iraq’s fast-moving consumer goods (FMCG) sector, using PepsiCo Iraq as a case study. In the context of economic instability and heightened consumer price sensitivity, the research aims to explore how different pricing strategies contribute to key financial performance metrics. An explanatory case study design was employed, supported by quantitative modeling using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4.0. A structured questionnaire was administered to 104 senior marketing, finance, and distribution professionals affiliated with PepsiCo Iraq. Constructs measured included value-based pricing, competitive pricing, psychological pricing, and financial sustainability indicators such as return on investment (ROI), cost efficiency, and cash flow stability. Reliability and validity were confirmed through composite reliability, AVE, and discriminant validity assessments. Value-based pricing showed a strong positive effect on cash-flow stability (β = 0.359, t = 4.659, p < 0.001). Competitive pricing boosted return on investment (β = 0.312, t = 4.215, p < 0.001), while psychological pricing improved cost efficiency (β = 0.287, t = 3.798, p < 0.001). The structural model explained a substantial share of variance in each financial outcome, with R² values of 0.702, 0.681, and 0.645, respectively. Moderation analysis further revealed that intense market competition amplifies the positive association between pricing strategy and overall financial sustainability (β = 0.168, p = 0.036). Strategic pricing is a critical enabler of financial sustainability in volatile markets. PepsiCo Iraq’s approach demonstrates the effectiveness of dynamic, locally responsive pricing in achieving long-term financial resilience and market leadership.