Competitors Analysis - Soft Drink Industry

PepsiCo is a company has history, big market share and abundant assets which are other small companies do not have, so PepsiCo can use this power to do something other companies cannot do, such as continue merge and acquire organisations to expand the range of products. PepsiCo has asset to acquire and as a multinational company, it can sell the product in different countries, use the resource more efficiency.

PepsiCo is one of the largest U.S based food and beverage companies. With a strong heritage. What is now, PepsiCo was first established in the late 1800’s. What started as a small one-man operation has grown into a food and beverage megabrand, with strong competition from both sectors of the food and beverage industry. With fierce competition from companies such as Coca-Cola, Kraft foods and ConAgra, PepsiCo must continue to innovate while providing customers with quality products that are priced competitively to remain relevant.

Branding is another factor which is key to success in this industry. This is one area where Pepsi has an advantage over many of its lesser known competitors. Pepsi has developed numerous successful brands and has the skills to properly develop a brand.

The tour at the Pepsi distribution and bottling plant took place on March 31st, 2016. The tour started off with presentations by the Plant Director Alirio Birico and Supply Chain Planner Brian Tam. The presentation covered many interesting facts about Pepsico like the fact that it operates in 200 countries and produces 3,000 different products. 35% of Pepsico’s revenue comes from their new markets. Within Canada, Pepsico has 9,000 employees and distributes to 20,000 stores with their beverage and food sides of the company. Western Canada alone has 1350 associates. As Plant Director, Alirio is responsible for developing and communicating the vision for the future of the plant, which is comprised of many aspects like the direction of where the plant will go in the future and the goals of the plant overall. Alirio must convey strong leadership qualities over his plant and he must ensure the plant is ensuring the highest level of safety. When Alirio was asked what success looks like for him, he replied that having better cost per units is key as well as balancing environmental impacts with proper output.

Today’s global soft drink industry that is worth approximately 511.6 billion dollars can trace its history back to the days when the first mineral water was found in natural springs (Reuters, 2014). According to Bellis (2014) people who started bathing in natural springs instantly realised that it is a healthy thing to do and due to that it was said that mineral water has healing powers. The carbon dioxide or in other words the magic that was behind the bubbles in natural spring water was soon discovered by the first scientists (Bellis, 2014). Later this wonder was the basis of invention of carbonated soft drinks, like coke. The first soft drink which was simple lemonade made out of mineral water, lemon juice and honey was

PepsiCo is driven by the competitive spirit of the market which they use it to provide solutions that would help their company as well as others.

Pepsi –cola was started in the summer of 1898 in New Bern, North Carolina by Pharmacist Caleb Bradnham. PepsiCo Inc. started in 1965 with the merger of Pepsi-Cola and Frito-Lay. Since then, PepsiCo has continued to grow, adding new brands and product lines meeting the demands of the market. Throughout the years, they have strived and worked toward environmental sustainability. The ability to be financial stable gives PepsiCo the ability to give back and donate to those communities they are located in. PepsiCo’s mission to provide performance with purpose means delivering sustainable growth by investing in a healthier future for people and our planet. PepsiCo is continually increasing their triple bottom line.

In an industry dominated by two heavyweight contenders, Coke and Pepsi, in fact, between 1996 and 2004 per capita consumption of carbonated soft drinks (CSD) remained between 52 to 54 gallons per year. Consumption grew by an average of 3% per year over the next three decades. Fueling this growth were the increasing availability of CSD, the introduction of diet and flavored varieties, and brand extensions. There is couple of reasons why the industry is so profitable such as market share, availability and diversity and brand name and world class marketing.

Situation Analysis: Soft drinks are a multibillion dollar global commodity in the 21st century Coke alone produces over 400 brands in 250 countries, serving an average of 1.5 billion servings of some type of beverage per day (Warner, 2005). However, in the last decade or so, soft drink sales

The Coca-Cola is doing a great job in planning and control activities and they are the best soft drink providers in the whole world. The Coca-Cola is distributing their products all around the world and even small regions of countries. They are facing the market demand in a right manner of planning and controlling their operational objectives, product process, layouts and etc…

The case explains the economics of the soft drink industry. There activities that add value to consumer at nearly every stage of the value chain of the soft drink industry. The war is primarily fought between Coca-Cola and PepsiCo as market leaders in this industry; who combined have roughly a ninety percent market share in their industry. The impact of globalization on competition has allowed both of these major players to find new markets to tap which has allowed each continued growth potential.

The Coca Cola Company is a multinational company with more than 140,000 employees, the company is in beverage business and its flagship product Coca Cola is considered one of the best soft drink. Coca Cola soft drink is the real revenue generator of the Coca Cola Company. The company was found in 1892 and by 2010 it was reported that the company has the serving of 1.7 billion per day so the company has only grown since its inception. The company is serving its product in more than 200 countries, and the Coca Cola Company owns more than 500 brands, this shows that the graphs of the company is moving upwards and the Coca Cola Company is growing at an immense rate.

Indra Nooyi is the CEO of Pepsico and Pepsico employs 263 thousand people every year. Pepsico is a global leader in international operations. Pepsico has their products being sold in over 200 countries like the US, Canada, Argentina, Mexico, China, Japan, Australia, France, Italy, Germany, Russia Etc. All of these are important companions to Pepsico. Pepsico sells it's products by vending machine, gas station, grocery store or little shops in all of these countries. They sell online also, where you can buy bulk of their products. The current stock price for Pepsico is 102.38$ with the closing date of 11/29/16. Pepsico has a main competitor with who they have been clashing head to head with for decades now. Coca-Cola and Pepsi is like King Kong Vs. Godzilla, Red vs. Blue or “The Macho-Man” Randy Savage Vs. Jimmy “SuperFly” Snuka at Wrestlemania

PepsiCo’s mission is to be the world's leading consumer products company focused on convenient foods and beverages. It seeks to produce financial rewards to investors as it provides opportunities for growth and enrichment to its employees, business partners and the communities

According to PepsiCo SWOT, “it is better equipped to satisfy the needs of customers with a wide variety of successful products” (2008). PepsiCo managed to present almost every type of drink and food brands. The merchandise that is earned is the majority of their revenue. This makes them extremely at risk to change any of their marketing products. However