Situation Analysis - Pepsi

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10/Oct/2012 Author: Bin Liu | ID #: U1037223 |

Assignment # 2 | A Completed Analysis of Marketing Plan for Pepsi New Zealand |

Executive Summary
This paper presents a completed marketing plan/analysis for Pepsi in order to assist it regain its “second leader” position in the soft drink market in New Zealand. The first half of this paper shows the situation analysis of Pepsi. In particular, the internal analysis focuses on the power of suppliers, buyers, new entrants, and product substitutes. The results show that the bargaining power of suppliers and buyers are not great, threat from new entrants are negligible but significant from the substitutes. The external analysis focuses on the economic, regulatory and industrial
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In the 8th section, the market implementation, evaluation and control will be addressed. And the final section is used to discuss the ethics, social responsibility and sustainability issues of PepsiCo Inc.

I. Situation Analysis
PepsiCo Inc. is an American multinational corporation that manufactures, markets, and distributes grain-based snack foods, beverages, and other products. Of all the products sold by PepsiCo Inc., Pepsi is one of the most representative and well-known brands and therefore is selected for the analysis, (Bryson York Emily, 2012).

Internal Analysis - Power of Supplier
The primary objective for every enterprise is to maximise profit. According to the accounting equation, profit is obtained by subtracting expenses from the revenue. Thus, the analysis of power of supplier is essential as it directly influences the level of expense that a corporation faces. To understand the power of supplier, it is a good approach to first learning the components that manufacture the product sold, and then studying the market structure of each component as the prices are largely influenced by market structure.

The materials used in Pepsi production are (1) cola and (2) can/bottle. Material suppliers for the soft drink industry do not hold much power as the markets of these materials are competitive. The ingredient of cola consists primarily of carbonated water, sugar, and flavourings, (Mitchell, Alan J., ed, 1995). The price of these
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