SWOT Analysis
Strength
PepsiCo has sponsorship tie-ups with a lot of the professional North American sports leagues that enable it to reach millions and greatly expand its marketing opportunities, especially as it tries to reach younger consumers. In fact, it scored a coup last year when it inked a multiyear partnership agreement with the NBA, wresting that business away from its principal rival, The Coca-Cola Company. Salty snacks, importantly, are a growing consumer category, whereas demand for carbonated drinks has been on the decline for a while., the company has over 20 brands that each generate more than $1 billion in annual retail sales. Strong Multinational (Brand Equity) Strong & Vast Distribution Channels Lack Of Capital Constraints Record Market Share Strong Brand Portfolio
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Such activities really hamper the company’s name and its brand originality. Above all the fake beverages supplied are almost similar to the taste of the original PepsiCo. brand and not everyone can decipher the difference between the original and the fake product. This is in fact a great threat to PepsiCo. for unworthy people is taking advantage of its brand name and spoiling its good name in the market
The greatest affect is on the revenue from the rural areas where mango drinks take over. However this is one factor that PepsiCo cannot do anything about for it is not in their hands. If the mango season is to come then it will and nothing can be done about it.
The main competitor of the company is the Coca Cola. At the international level, PepsiCo., has a very strong competition with Coke. Coke has started its advertisements more effectively to increase their demand and it is a very strong threat for Pepsi. Cola drinks are not good for the health so the awareness level of the people is increasing which is a big threat to the company. Targeting Only Young Customers Political
Based on my research, PepsiCo is an extremely ethical and socially responsible. PepsiCo bases their premise off of their values and philosophies as a reflection of the socially and environmentally responsible company they aspire to be. Every business decision that is made is based off of these philosophies and values. PepsiCo acknowledges their power and influences that they can make on different society’s and markets and use that to their advantage to make good and powerful actions to reflect on others. The company spends the extra time and steps to make sure that they fully understand what customers that they are dealing with and to be able to accomplish their needs and their desires in the products that they produce. PepsiCo’s mission is to, “be the world’s premier consumer products company focused on convenient foods and beverages. They seek to produce financial rewards to investors as they provide opportunities for growth and enrichment to
Pepsi Co. and Coca Cola, both are very well known multinational companies. They are so famous that they perhaps don’t need any introduction since almost everyone knows basic info about these companies and their widely used products. Both of these companies have been dealing in the production of flavored waters, plain drinking water and soft drinks for decades now and have always been each other’s competitors in almost all the mainstream products they have been producing.
For more than a century, Coca Cola and PepsiCo have been the major competitors within the soft drink market. By employing various advertising tactics, strategies such as blind taste tests, and reward initiatives for the consumer, they have grown to become oligopolistic rivals. In the soft-drink business, “The Coca-Cola Company” and “PepsiCo, Incorporated” hold most of the market shares in virtually every region of the world. They have brands that the consumers want, whether it be soft-drink brands or in PepsioCo’s case, snacks. With only one soft-drink market, the two competitors have no choice but to increase sales by stealing the other competitor’s clients. This led to the term, the “cola wars” which was first used
Introducing a new product to the market is a very risky operation. Not only is it risky but it takes time, effort and money. In order for a product to be successful, it had to fully undergo the product life cycle. Kellogg’s has an advantage when it comes to the breakfast market as it holds the biggest market share. After providing the British public with breakfast for years, it most certainly has a larger customer loyalty base. The strong brand makes it easy for product launching as the public are already familiar with the brand. However, introducing a new product comes with its challenges and risks. Looking at the ratios, Kellogg’s has a current ratio to date of 1:1.1 . This in financial terms rings alarm bells as it shows that the company will struggle to pay its short term obligations. Kellogg’s however can operate on a low current test ratio as it has a good long term revenues coming into the business. This means that it is possible to borrow on this basis to meet its current obligation. After calculating the net present value, which gave a positive NPV of £38450million, I move that we go ahead with the introduction of a new product. In traducing a new product is a sign of innovation and growth on the part of the competitors. In order for a new product to be introduced to the market, Kellogg’s will have to spend money on the actual product, the marketing side of
The rivalry between coke and Pepsi is legendary and not just only product development and occasionally get personal collusions which sometimes resonate their marketing and promotional activates.
Lastly, the internal weakness of PepsiCo is that the company is facing a negative publicity. There are doubtful practices which accused PepsiCo is using and selling tap water. However, the company places view of mountains on its water bottle labels. The public claim that the company deceiving people to believe it
This paper focuses on global business strategy of The Coca-Cola Company, who is the leader in the beverage industry as well as, the world?s leading soft drink maker that operates in more than 200 countries and owns or licenses 400 brands of nonalcoholic beverages. The paper will concentrate on the PESTEL analysis of the organization focusing on the external factors of the business and the environment where it operates. All of the following environments will be discusses in the research; Political, Economic, Sociological, Technological, Legal, and Environmental as they the changes in the market segment. Within this paper it will discuss some of thr
PepsiCo’s corporate strategy had diversified, in 2008, the company into salty and sweet snacks, soft drinks, orange juice, bottled water, and ready-to-eat drink teas and coffees, purified and functional waters, isotonic beverages, hot and ready-to-eat breakfast cereals, grain-based products, and breakfast condiments. Strategies that kept their brands at the top were tied to new product innovation, close relationships with distribution allies, international expansion, and strategic acquisitions. A new element of PepsiCo’s corporate strategy was product reformulations to make snack
PepsiCo Inc.: The challenge of Pepsi (as an opponent to Coca-Cola) has never lost its fizz for
“Coca-Cola brands are available to consumers throughout the world. Today they account for 1.7 billion servings of all beverages consumed worldwide daily. Coca-Cola has the edge in the market and because they are first to capitalize on new consumer trends. They continue to focus on continuous operating improvements, and they are ever changing to meet market demands. Pepsi Co satisfies the needs of its customers with the wide variety of products offered. They also have the different type of beverage or snack and its brands can substitute for each other. Coco-Cola and Pepsi Co is known as the top 100 most valuable brands in the world.
In conducting a SWOT analysis I was able to see some of the company's strengths, weakness, opportunities, and threats. PepsiCo moved tremendous amounts of products a day and the best way to be successful is to install the method of direct to store delivery initiative, which has many benefits such as, eliminates warehouse space constraints and reduces inventory For PepsiCo, the supply chain management had great success when it improvised the direct-to-store model deliveries method. Transforming its entire process for building orders and delivering them to retailers, PepsiCo Vice president Timothy Thornton explains how this new process increases productivity and reduces cost.
Also, Coca-Cola has very strong rivalries. The main one is of course PepsiCo, which is very famous all over the world and has a great variety of products. Thus, Coca-cola can’t afford its image to be damaged because if that happens PepsiCo will become the leader of the industry very fast. Right now Coca-Cola needs a new Strategic Communication Plan to try to overcome the issues.
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
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
Pepsi Co 's assignment taken as a whole is to amplify the value of its shareholder 's investment through sales intensification, expenditure gearshift and prudent investment of resources (Bongiorno, 1996, p 71). In this pose, Pepsi believes that its moneymaking triumph depends on providing safe and quality drink to its consumers and customers while adhering to the highest standards of truthfulness. Pepsi Co 's product portfolio encompasses sixteen labels that produce enough cash for the company. The most popular of these brands include Pepsi Cola, and Mountain Dew.