PepsiCo is stepping up its social media campaigning with a location-based app and a mobile loyalty program. The app, Loot, lets customers know when they are near a restaurant or fast food chain that sells its soft-drink.

When users stop in to purchase a Pepsi, the company then rewards him or her with points that can be redeemed for a free music download, the New York Times reports.

Each purchase earns a point; after three points a user can access free downloads within a library of over 250,000 songs. It is going to be the first geo-based iPhone application that has a loyalty program associated with it, according to Margery Schelling, chief marketing officer of PepsiCo Foodservice (via MobileCommerceDaily).

"Consumers on-the-go always have mobile devices with them, and when they are hungry, they can open Pepsi Loot on their iPhone and it shows them every Pepsi location in a certain area. Pepsi has also forged a marketing relationship with Foursquare," says Bonin Bough, director of social and emerging media for PepsiCo (via Forbes).

The two campaigns are very complementary, he says. "Both Foursquare and Loot are simple downloads that ask consumers if they will allow location-based services to operate on their phones. Users log in, say where they are and the apps shows where there are Pepsi-pour locations. They can find where they are, check in to those locations with their phones and get points for buying Pepsi products."

Other parts of the strategy include a website, growmyrestaurant.com, for franchise owners. Email marketing and social media campaigns are also part of the mix, as well as digital advertising and mobile marketing programs. It all launches on May 18, says Bough.