SWOT Analysis: Pepsi Cola

Gatorade is a flagship brand of PepsiCo and has a commanding 75% market share of the sports nutrition beverage marketplace globally, being sold into 80 different countries according to the latest PepsiCo annual report published in late 2011. Gatorade's success in branding and product marketing has actually expanded the global market for sports nutrition beverages during the late 1990s and into the 21rst century. Recently however the company has faced many channels including product line extensions of the last decade which failed to deliver strong results (Pollack, 1997) and a more critical analysis of their ingredients as many of their beverages are sold in public schools (Tallon, 2009). Despite these challenges however, Gatorade continues to experience strong market share and growth. The intent of this analysis is to evaluate and provide recommendations for each of the four areas of the marketing mix including product, price, promotion and place or distribution.

Increasing customer health consciousness: Most of PepsiCo’s soft drink lines are perceived as unhealthy by consumers (Bhasin, 2017). In an attempt to combat this image PepsiCo under Nooyi’s guidance decided to turn their focus to more health conscious product options (Cooper, 2014). PepsiCo’s move to focus on more healthy products led to startling declines in their U.S. soft drink market share (Cooper, 2014).

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.

According to PepsiCo “Organic revenue grew 5 percent in the fourth quarter and in the full year, reported net revenue declined 1 percent for the quarter and 1.5 percent for the full year, reflecting the impact of previously announced structural changes” (PepsiCo, 2013). The cost of running the business paid off from a revenue standpoint but overall net revenue fell by one percent. Additionally, Pepsi remained exceedingly concentrated on generating appealing returns for shareholders, and returned $6.5 billion to shareholders in 2012 “through a combination of share repurchases and dividends,” (Pepsi, 2013) This increased costs for the company but the cost spending implemented paid off for shareholders who would be more willing to invest more in the company in the future.

The Coca-Cola company has been in business since its inventor began selling it in drug stores in 1886 (The Coca-Cola Company, 2009). Pepsi-Cola was invented a short time later in 1898, but at the time it was called “Brad’s drink.” It was later renamed Pepsi-Cola in 1902 (Butler, 2006). Since those early days when the sodas were invented, Coca-Cola and Pepsi have been in competition with each other for the domination of the world’s soda market. Over the course of more than a century, sales have continued to rise for both companies, and they both consistently earn a profit. Both companies

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.

The market for carbonated soft drinks is saturated with many brands. The top five are, Coca-Cola, Diet Coke, Pepsi-Cola, Mountain Dew, and Dr. Pepper (Hartlaub, n.d.). Over 90% of the market is dominated by three companies, Coca-Cola, Pepsi, and Dr. Pepper/Snapple (Statista, 2015) Because the soft drink industry manufactures its products in mass amounts, they can produce economies of scale and create a competitive advantage over smaller or new companies trying to

By consulting the above graphs and charts it can be concluded that Pepsi has been a strong competitor to Coke and that throughout history they have been performing at comparable rates. Each has a similar background and customer base, but there are some differences between the two companies and their individual performance overall. It is clear that Pepsi holds a major stake in the market and is somewhat ahead of Coca-Cola in market share and productivity. Although both companies appear to be competing neck-to-neck Pepsi appears to be performing at a slightly higher rate than Coke, despite the popularity of both. Coke is wildly popular and is considered an American institution, but many seek different tastes and this is where Pepsi has been taking some of the market share as some consumers opt for Pepsi as their choice of beverage.

In 1886, the Coca Cola Company was developed but it wasn't until 1898 that the fierce competitor Pepsi-Cola entered into the market. These 2 companies are the two major players that dominate the consumer beverage (soft-drink) industry. Coke and Pepsi have since been competing to rein the global market in consumer beverages. The market of drinks in the United States alone is valued at more than thirty million dollars annually. With the growth of these two companies, PepsiCo has developed and acquired additional products outside the scope of just the consumer beverage industry, these products have helped the company to increase their exposure and position in the global market. This has not been the case for the Coca Cola Company; they

Gatorade is accepted as the market leader of US sports drink market with nearly 75% market share as at 2008 (Sports Business Daily, 23 July 2009). The study analyses the marketing mix of Gatorade in US market with special concentration on its Marketing Communications. It was introduced in 1965 as a thirst quencher by four medical researchers at University of Florida. The name for the drink came from

The objective of this report is to investigate past and present operations of Mountain Dew within the New Zealand market and the relationship between brand performance and market trends; this will be compared to the performance of notable competitors such as Sprite, and Lift+; brands of Coca-Cola Amatil LTD. This report emphasises, particularly, how Mountain Dew distinguishes itself from these competitors, and how it can further do so. Identification of Frucor’s strengths, weaknesses, threats and opportunities will

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

Starbucks is a major reason why things have changed for Coca-Cola and Pepsi Co, they have emerged in the market with balancing their menu with gourmet, coffee beverages that offer sweet and sugary options for their customers. In 2016, the soft drink industry is in the middle of the growing policy debate in the United States regarding taxation of sugar-sweetened beverages. Therefore, it hasn’t been a great year for Coca-Cola, Pepsi Co, and Dr. Pepper Snapple due to the public’s concern on the health issues of sugary sodas. The health problems with the sugar content in soft drinks have increased political pressures, as well as slowed the growth of these giant beverage companies.

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 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.