Pepsi Global Marketing Strategy

Coca Cola and Pepsi are the brands with the highest brand equities. Both, Coca Cola and Pepsi have gone through the highs and lows of their business to reach that position. Coca Cola’s marketing has been changing over time with more and more products being added every day, while Pepsi has implemented several smart marketing strategies to improve its turnover and profits. So, let’s see what were the marketing strategies implemented by Coca Cola and Pepsi.

Coca Cola was born in the laboratory of Dr. John Pemberton in May 1886 in Atlanta, Georgia. Coca-Cola's own name was made by Frank Robinson. And marketed for the first time with an ad of banners with the inscription of oil paints labeled "drink Coca Cola". Although it was the title of "brand of the century", Frank Robison had experienced a loss in sales. Coca Cola formula then bought by Asa Chandler in 1892 that heavily promoting senhingga experiencing huge profits. Coca cola increasingly global sales thanks to independent bottling firms with licenses to other countries and this is maintained until now.

In the global capabilities of companies, the process of penetrating and developing an international market is seen as the most difficult. This happens because companies usually have little information about the new market as well as marketing infrastructure to penetrate it. However, companies treat entry into foreign markets as an extension of their business, which adds incremental revenue for their products and services. Additionally, firms pursue foreign business opportunities to minimize risk and investment thereby increasing their total sales and profits. For Tyson Foods to enter the Portuguese market, it would attain growth and expansion through diversification.

To identify the target consumers, companies must divide the market into groups with distinct needs and preferences before identifying which segment to target (Kotler & Keller, 2017). The target market for PepsiCo products is the population aged between 13 and 45 years. Since this population mostly comprises of young people, Pepsi sells its products in restaurants, schools, colleges, fast food stores, and other places that this target market frequents.

This case presents a scenario where PepsiCo, a company known for its successful acquisitions of food chains to expand its business, has to weigh its options whether or not to acquire Carts of Colorado, a merchandiser of mobile food carts and kiosks and California Pizza Kitchen, a big name in the casual dining segment.

Foreign direct investment (FDI) represents an investment from a company into another country either through acquisition or expansion of operations (Peng, 2014). Some countries require this as a term for conducting business within said country. The primary advantage of such a strategy is it can reduce cost of distributing products within a country, provide risk mitigation opportunities in the form of dual sources and/or familiarize a company with cultural customs necessary to penetrate a target market. Understanding a target market’s culture is critical to tailoring offerings to meet expectations. A one size fits all approach to global strategy can result in a lack of acceptance in certain markets. An example of tailoring an offering to account for different markets is Coca Cola’s classic coke. Although the Coke brand is constant the product itself has an altered sugar content and differing water purity depending where you are in the world ("Is the formula," 2014). This allows them to cater the flavor to local markets.

Coca Cola is an international organization which is operating in more than 400 countries. It deals in the beverage industry and is leading the industry for years. Coca Cola is a competing brand, which has made its place in the market competing against several brands. Coca Cola is considered as the leading brand and is ranked as number 1 international brand, according to the ranking of 2011. Coca Cola deal in the beverage industry and provides people with several products. It is a well-known name and people all around the world knows about it. Headquarters of Coca Cola is in Atlanta, and the company has been operating for more than 126 years (Wise and Baumgartner, 1999). In 1886, the company was formed and since then it has been serving millions of people around the globe. Coca Cola is the lead brand of Coca Cola Company, which is the greatest reason of its recognition. Despite many competitors like Pepsi Co, the company has been able to maintain its position in the

Marketing is “an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationship in ways that benefit the organization and its stakeholders” (Kotler & Keller, 2009, p. 5). The main scope of marketing is to identify and to meet social and human needs. PepsiCo understands that as an international food and beverage organization that reaches millions of consumers daily, the agenda of its marketing campaigns can determine the success or failure of the company.

ENTRY BARRIERS Economies of scale Proprietary product differences Brand identity Switching costs Capital requirements Access to distribution Absolute cost advantages Proprietary learning curve Access to necessary inputs Proprietary low-cost product design Government policy and international treaties Expected retaliation RIVALRY DETERMINANTS Industry Growth Fixed (or storage) costs/value-added Intermittent overcapacity Product differences Brand identity Switching costs Concentration and balance Informational complexity Diversity of competitors Corporate stakes Exit barriers Strategic alliances (domestic & international)

Sociocultural difference can impact the operation of the corporation. Cultural issues, local government policies, and distant location come into play. Dunkin Donuts selects global expansion partnerships. There needs to be a big consideration on local competitors when entering a new market. Due to distant location, local government policies, cultural issues, Dunkin Donuts prefers partnership on the global expansion. Dunkin Donuts believe this can help them to understand better of local people and their cultural. Multinational corporations possess superior resources and have a competitive advantage compared to their local competitors.

ENTRY BARRIERS Economies of scale Proprietary product differences Brand identity Switching costs Capital requirements Access to distribution Absolute cost advantages Proprietary learning curve Access to necessary inputs Proprietary low-cost product design Government policy and international treaties Expected retaliation RIVALRY DETERMINANTS Industry Growth Fixed (or storage) costs/value-added Intermittent overcapacity Product differences Brand identity Switching costs Concentration and balance Informational complexity Diversity of competitors Corporate stakes Exit barriers Strategic alliances (domestic & international)

Developments in political environment also affect company's strategies. Higher percentage of sales tax and excise duty has been imposed on the company’s product, which affects the selling price, and ultimately the buying. It affects packaging. Due to current sales structure, manufacturing bigger packs become unviable. Current duty structure has affected Pepsi’s take home packages, i.e. 1.5 liter bottle, 2.25 liter pet and non-returnable packages. 250 ml is the most viable package under current condition.

Where PepsiCo. entered into India as a Joint Venture with PAIC and Voltas, there are other numerous ways a company can enter a foreign market. They include, Exporting & Importing, Licensing & Franchising, Contract Manufacturing, Foreign Direct Investment, Equity Purchases, and Strategic Alliances.

Pepsi-Cola brand is a brand that has been established within the refreshment industry since the 19th century. Pepsi pride the business of consumer products in beverages and snacks, on being one of the best in the world. They seek

I’m an undergraduate student majoring in economy prepared the marketing plan for the purpose of learning and experience.