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
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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
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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
Coca-cola: the reason that consumers prefer having coca-cola is that it gives its consumers alot of information about it. For example, a phoenatic word of coca-cola in chinese means "hapiness in
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.
The 2 companies already strong brand equity, increasing marketing budget for their flagship brands and constant innovation (e.g. freestyle soda machine) should retain customers’ loyalty. By diversifying their product portfolio through new acquisitions and introduction of a variety of new CSDs such as diet products that already proved their profitability and non CSDs, the two companies should be able to respond and adapt to the customers changing demand and preferences such as increasing health concerns, rising interest in sports and nutritional drinks. The international market remains a key opportunity for Coca cola and Pepsi to sustain and increase their profitability. Even though Coca Cola is already a leader on the international level with 80% of sales in contrast with roughly 50% of sales for Pepsi, many foreign untapped markets are still far from being saturated and constitute a good profitable business, especially within the rising economies in Asia, Africa and the Middle East as growth means higher purchasing power. Finally, the two companies’ consolidation of their bottling system again in 2009 should cut down operating costs and increase
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.
Coca-Cola and PepsiCo compete at length with each other among an extensive list of other brands. A key concern for both of these companies in 2011 was their capability to market, produce, and distribute across national boundaries of a single nation. This concern has decreased as both companies were able to push though their limitations and were able to establish manufacturing plants in countries across the globe. (Coca Cola Company, 2011)
PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes twenty-two brands that generate more than $1 billion each in annual retail sales. PepsiCo’s main businesses - Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola - make hundreds of foods and beverages that are consumed throughout the world. It currently holds 36 percent of the total snack-food market share in the U.S. and 25 percent of the market share of the refreshment beverage industry. The products are classified under three main categories are “Good for You”, “Better for You” and “Fun for You”. “Good for You” category includes brands like Aquafina, Trop 50, Quaker Oats, Naked Juice, etc. “Good For You”
In the battle of soda wars, there have always been two, Coke and Pepsi. This report takes the two and separates them apart to determine several factors between the two. First of all we had to define PepsiCo and Coca-Cola Companies as they are both global companies and with PepsiCo, they are bigger than just beverages. This report just looks at beverages and North American business side of each company. Next, how important is Coke important to Coca-Cola’s business and Pepsi to PepsiCo’s business. With Coke being an exclusive beverage company, it is more important to Coca-Cola’s success. However, Pepsi is still important to PepsiCo. Lastly, does demographics play a factor on what beverage is preferred? As in the article that is mentioned later, the locals play a big part in the success of the drink. If it isn’t successful locally, it will never be successful. Also, let’s not forget cost. As with anything that is purchased there is always a cost. Beverages do play a huge part in what people buy.
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).
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.
From minuscule mom-and-pop shop advertisements in the local newspapers to the developing multi-billion dollar industry, advertisements have infiltrated every aspect of the current world. Whether it be in the grocery store or on social media, there is no escaping the constant bombardment of advertisements. It becomes a difficult task to ignore. Because there are little to no restrictions on the content used in advertisements, advertising companies have the ability to release controversial material whenever they please. The popularity of these types of advertisements depend solely on the reaction from the general public. The disputable material released in advertisements are detrimental to consumers personal beliefs and emotions.
PepsiCo, one of the leading beverage and snack companies in the United States and abroad, is affected by both global and domestic environmental factors. These factors, along with changes in technology, all impact and shape the organization and affect marketing decisions. The article “PepsiCo Pops for China,” written by Ruthie Ackerman and published by Forbes.com, reviews Pepsi’s decision to invest billions into the Chinese market audience. This paper will review the article, identify environmental factors that shape the organization and impact marketing decisions, and discuss how technology plays a role in those decisions. Alternatives
Another factor that PepsiCo feels may affect their business is additional labeling or warning requirements or limitations on their product packaging (PepsiCo, 2016). New regulations may require companies to provide a label that highlights perceived concerns about a product or warns consumers to avoid consumption of certain ingredients present in their products on each product (PepsiCo, 2016). For example, in California, Proposition 65 requires a specific warning on any product that contains a substance listed by the State of California as having been found to cause cancer or birth defects if the levels of the substance are above a safe harbor level (PepsiCo, 2016). These new regulations could reduce the overall consumption of their products, lead to negative publicity or leave consumers with the perception that their products do not meet their health and wellness needs (PepsiCo, 2016). These regulations could ultimately negatively affect PepsiCo’s business, financial condition or results of operations (PepsiCo, 2016).
In this memo, we will examine comprehensive research on some of the ethical issues that occurred as Pepsi published a commercial that harmed many people. Further, we will discuss how it had a substantial impact on a variety of stakeholders. The issue that occurred was regarding the “black lives matter” and how Pepsi did not take the issues that it still going on in our society into account.
1.) Why do companies like Pepsi need to globalize? What are the various ways in which foreign companies can enter a foreign market? What hurdles and problems did Pepsi Face when it tried to enter India during the 1980s?
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