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Strengths And Weaknesses Of Pepsi

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PepsiCo
Strengths
- Strong Brand Presence Globally
PepsiCo is sold in more than 200 countries, where in some of those countries Pepsi is the number one food and beverage company, such as the United States, Canada, and Saudi Arabia. The growing middle class people globally makes the demand of high quality products such as PepsiCo increases. The American food and beverage company has been established in China for more than thirty years and the products are even one of the most popular product of its kind, such as Lay’s (Nooyi, 2012). In addition, PepsiCo’s market share in the US outweighs the competitors as shown on Figure 1 below. This proves that PepsiCo’s presence globally is really strong. Figure 1 US Savory Snacks and Beverage Market …show more content…

This enables the company to target wide range of consumers, such as Pepsi-Cola for people who like soda, Gatorade for athletes, Lay’s for people who like potato chips.

- Localization
One of its strengths is its localization strategy. At PepsiCo China, about 99.8% staffs and 88% senior management are Chinese (Ho, 2013). By being local, the company can better serve the market in a country. Its Quaker brand is a huge success in China because it combines rice and oats to create a popular Chinese breakfast porridge, congee (Nooyi, 2013). Figure 2 below shows another localization of its signature brand in China. It is packaged differently than in the United States and called百事可乐 (Pronounced: Bǎishìkělè) which is translated through phonetic translation and literally means “be happy with everything.” Figure 2 Pepsi in China …show more content…

Controversies can eventually affect the company’s sales. Especially with the more advanced technology, controversies can be easily spread through media. Recently, PepsiCo was under fire because of one the products, Diet Pepsi, used an artificial sweetener, aspartame, which can lead to cancer (Huddleston, 2015). PepsiCo immediately responded and has changed the ingredient to a safer alternative to avoid further losses. Despite the recovery action, consumers will be extra cautious to buy products from PepsiCo or even any artificial sugar-added drinks again. It would be difficult for any company to regain customer trust for problems that are caused by the company itself. PepsiCo should put extra care on its research and development team to avoid such problems to

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