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PepsiCo always wanted to have a place in people’s hearts in a different way than Coca-Cola. PepsiCo SWOT analysis. The company was founded in 1965 when the following companies been merged together Fristo- Lay, PepsiCo beverages, and Quaker Foods. Product Strategy of PepsiCo Product is the primary factor though which a company begins its marketing activities. PepsiCo has a distinct place in the food and beverage industry. A case study about PepsiCo and its competitors on how they manage to outshine others in their industries and what should PepsiCo improve in the future. The most prominent aspects of PepsiCo business strategy are based on the following six principles: First, achieving growth through mergers and acquisitions (M&A). PepsiCo is a multinational food, snack, and beverage corporation headquartered at New York in the United States. Pepsi co strategic management 1. Pepsi Vision Statement. In other words you can say, it is a brand for the millenials. Le Ngoc Hoang Nhat 332896 3. The marketing mix or 4Ps (Product, Place, Promotion & Price) is the combination of strategies and tactics that the firm uses to implement its marketing plan. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. Hanssens, D. M., Pauwels, K. H., Srinivasan, S., Vanhuele, M., & Yildirim, G. (2014). Some of the company’s products have been in the market for over 100 years. Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry. Then, it is very possible that Pepsi’s revenue could increase if they offer healthy drinks. Product is the primary factor though which a company begins its marketing activities. Pepsi’s vision statement is: “To deliver top-tier financial performance over the long term by integrating sustainability into our business strategy, leaving a positive imprint on society and the environment.” By Pepsi’s vision statement it is evident that the company has a vision of sustainability and environmental responsibility for its conglomerate. Competitive analysis in the Marketing strategy of Pepsi – Big giants such as Coca-Cola, Nestle , Mondelez etc.in the nonalcoholic beverage market have a similar or same strategy to that peers. Van Waterschoot, W., & Van den Bulte, C. (1992). The strategy is that the result of securing many local market share would be a considerable chunk of the market share of the country as a whole. By 1909, it had its first celebrity endorser, Barney Oldfield, an American automobile racecar driver. Owing to the fact that the industry faces strong contention from a number of soft drinks producers throughout the world, the industry giants like Coca-Cola Company and PepsiCo constantly needs to come up with innovative ideas and strategic approaches in order to remain the most significant choice of the large-scale consumers. Consumer attitude metrics for guiding marketing mix decisions. Bottled water 10. Our ambition is to use our scale, reach, and expertise to help build a more sustainable food system, and the SDGs provide a vital framework for progress and partnership on a global scale. The company also sometimes has special promotional offers with discounted prices. Especially if it’s a domestic product. She is currently an undergrad, majoring in Marketing from the University of Dhaka. You can have a taste of different images of this brand while traveling to different countries. This brand has made its appearance in almost every remote area of those 200 countries where it performs its activities. PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. It also has its own line of sports drinks names Gatorade, which is a huge success. It also serves Quaker oats (cereal), Gatorade (sports drink), ready to drink teas, etc. It aims to look into the strengths and the weaknesses of PepsiCo. We'll assume you're ok with this, but you can opt-out if you wish. Soft drinks 2. Exhibit L: Pros and Cons for the 1 st Recommendation * The Market Analysis indicated that revenues for sugary drinks have declined (IBIS). Also, the company’s local offices sometimes implement direct marketing through agreements to provide products to organizations at wholesale prices. Established in 1965, this company is now operating its business in over 200 countries worldwide. It aims to look into the strengths and the weaknesses of PepsiCo. It’s achieved this level of growth because of the many brands under their belt. Their food, snacks and beverages are consumed 1 billion times a day in 200 countries. Their food, snacks and beverages are consumed 1 billion times a day in 200 countries. A leading dominator in the soda industry is PepsiCo. This element of the marketing mix covers the marketing communications strategies and tactics that the company uses to reach its customers. Pepsi is positioned as a brand that reflects young energy and this is also a key theme across its advertising and marketing campaigns. PepsiCo Case Study; Pepsi was created by the chemist named Caleb Brad-ham.Keep Reading Case Study of International Marketing Strategy in PepsiCo. This company never loses a chance to invent new products based on the latest market openings and demands. PepsiCo's Competitive Positioning. Pepsi’s vision statement is: “To deliver top-tier financial performance over the long term by integrating sustainability into our business strategy, leaving a positive imprint on society and the environment.” By Pepsi’s vision statement it is evident that the company has a vision of sustainability and environmental responsibility for its conglomerate. SWOT analysis of PepsiCo analyses the brand/company with its strengths, weaknesses, opportunities & threats. In. (1997). In this regard, PepsiCo employs various strategies and tactics based on its array of products and brands. Pepsi Cola Marketing Strategy 494 Words | 2 Pages. PepsiCo’s popular beverage products include Pepsi cola, 7up, Mirinda, Mountain Dew, Tropicana (Fruit Juice), Diet Pepsi, diet mountain dew, and many more. SWOT Analysis is a proven management framework which enables a brand like PepsiCo to benchmark its business & performance as compared to the competitors and industry. PepsiCo’s marketing mix has evolved over time, especially because of the effects of mergers and acquisitions. C1 Analysis International Strategy; Part 1 – Second Version Tim Herbers (153139) Angelika Kuhn (147613) Sebastiaan Prins (112381) Luc Zijlmans (149689) Saxion University of Applied Science Module International Business … It all depends on how much attention a company can gather among the target market. It is an important technique to understand the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) PepsiCo is facing in its current business environment. As a result, this product costs relatively higher than other drinks of this brand. For example, the company is popularly known for using celebrity endorsers to promote its products on TV, radio, print media, and online media. Image source: PepsiCo annual report 2019 3. In PepsiCo SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. Despite product similarities, PepsiCo always used distinct and unique marketing strategies compared to its biggest competitor Coca-Cola. Side dishes 7. See what we mean by reading this PEST analysis of PepsiCo. Depending on the demand and target market, this brand uses a different pricing strategy for its diverse product. Other merchandiseMany of PepsiCo’s current brands and p… Pepsi co diversification strategy case analysis 1. Pepsi generates more than $15,000 million of annual sales. This PepsiCo SWOT analysis reveals how the second largest food company in the world uses its competitive advantages to dominate snack and beverage industries. But opting out of some of these cookies may have an effect on your browsing experience. It uses mass marketing strategy to target the groups of the customers of different demographics and geographic regions. However, customers can access PepsiCo-licensed merchandise like tumblers and t-shirts through retailers and their websites. 1. We also use third-party cookies that help us analyze and understand how you use this website. And how does it do it? PepsiCo chooses the relevant distribution channel based on customer needs, product characteristics, and local trade … Operations strategy will enable the company add value to its products. The research draws attention to the competition PepsiCo in the Cola and Snacks industry. Nguyen Ngoc Tuyen 332907 2. With a broad range of product portfolio and a differentiated approach in each country, this brand has made a strong brand identity among tough competitors. Pepsi-Cola’s new slogan, “Drink Pepsi-Cola. Coca Cola/Pepsico Strategy Analysis. STRATEGIC MANAGEMENT FINAL PAPER PEPSICO CASE STUDY ANALYSIS LECTURER Interactive Advertising: A New Conceptual Framework Towards Integrating Elements of the Marketing Mix. Its food business accounted for 54%, and beverages accounted for 46%. Perfection and innovation of 4P Marketing Mix – How to evaluate 4P Marketing Mix. Product Profile 3. In every country that the company operates in, it sells the same product with the same advertising and marketing. Analyzing and expanding the market with the full-fledged positioning by acquiring the strategies tend to invest in relevant areas, having the niche markets. A business offers something and expects something in return, and that is called price. Pepsi has maintained a pricing strategy that has made it an affordable brand. Necessary cookies are absolutely essential for the website to function properly. These cookies do not store any personal information. The only way to differentiate the offerings & retain customers is the strong brand building activities, creating a pull in the market. PepsiCo remains effective and globally successful in this aspect. Breakfast bars 8. It has a brand valuation of $19.4 billion and it is ranked 29 in the Forbes most valuable brands list. Pepsi have used the new- product strategy to realise their ambitions to both defend their current market position, and reinstate their position as a product innovator. PepsiCo adopted the strategy of offering its products affordable prices to the customers. This generic strategy focuses on cost minimization as a way to improve PepsiCos financial performance and overall competitiveness. • Comprehensive company analysis to infer information about company profile, business model, business plans and marketing strategy, including an abstract data of PepsiCo's founders, its headquarters, subsidiaries, value proposition, and revenue jumps. This website uses cookies to improve your experience. PepsiCo has a broad range of product lines under two categories, drinks, and beverages. 16/10/2012 Saxion University of Applied Science Module International Business Plan – Mr. J. Oude Rengerink IBMS Project 6 – Gr. Pepsico corporation strategic mnt report 1. Strengths in the SWOT Analysis of PepsiCo : Brand equity: it is one of the most prominent and famous brands in the world in the food and beverage sector. In this way, PepsiCo expects consumers to buy more of its soft drinks everyday and not just during the holidays. PepsiCo’s Strategy Analysis PepsiCo is one of the most influential companies that provide food and beverages. Based on this element of the marketing mix, PepsiCo’s places for distributing its products are mostly non-online retailers. Global strategies of Pepsi. PepsiCo Strategic Analysis (Case Study) - Free download as PDF File (.pdf), Text File (.txt) or read online for free. 3 EXECUTIVE SUMMARY This report provides an analysis and evaluation of the Marketing Strategy of PepsiCo. And this third party distributor network has made this company’s placement and visibility more robust. The company dominates the snack, food, and beverage industries. This essay evaluates the marketing strategy of PepsiCo Inc. by analyzing its product offerings, external and internal environment, target market, pricing and distribution, as well as its promotional strategy. PepsiCo Inc. is the world’s second largest soft drink brand and the world’s largest potato chips manufacturer. Snacks 6. With its main competitors, Coca Cola Company and Kraft Foods. As of 2008 it ranked 26th amongst top 100 global brands. It is also known as the brand of youth. PepsiCo started as the Pepsi-Cola Company, with all original products under the Pepsi brand. PEPSICO Diversification Strategy. Table 1: Financial Performance of the PepsiCo. The organisation has been able to lower its operating cost as a result of which, the financial performance of PepsiCo has been improved. Organizational Structure a. PepsiCo occasionally applies sales promotions, such as package deals or discounts. PepsiCo is one of the largest companies in the food and beverage industry. PepsiCo invested a total of $2.7 billion on inventories during 2016. PepsiCo’s marketing mix (4Ps) addresses a wide array of products. PepsiCo has “ONE STRATEGY.” For each one of its product, it has one message worldwide. What Competitive Advantages did PepsiCo Develop Over the Years? 1. It switched strategy as sales improved further. Coca-Cola (Coke) and Pepsi-Cola (Pepsi) have been the most popular soft drinks for many years, and has also been each other’s biggest competitor. This category only includes cookies that ensures basic functionalities and security features of the website. This company has shown outstanding growth in the past few decades. That’s why ensuring a proper placement and distribution strategy is very important in the marketing mix. It has a brand valuation of $19.4 billion and it is ranked 29 in the Forbes most valuable brands list. Power of One Strategy – Selling “Food & Snacks” (Frito Lays, Cheetos, Doritos, Kurkure) and “Beverages” (Pepsi, Gatorade, Tropicana) under one umbrella makes PepsiCo a stronger and diversified business. Pavlou, P. A., & Stewart, D. W. (2015). PepsiCo (PEP) shares, among the bluest of the blue chips, have continued their winning streak thus far in 2016, outpacing the broad-based S& P 500 Index by about two percentage points year to date. We use cookies for website functionality and to combat advertising fraud. To identify problems, opportunities, and strategic actions that would sustain its impressive financial and market performance. PepsiCo is a multinational food, snack, and beverage corporation headquartered at New York in the United States. excellent marketing and advertising strategy Pepsi is among the two leading brands in the carbonated beverages category. Although there’re products like Tropicana, which is targeted to people of a bit wealthier sections. PepsiCo always uses different strategies for different locations, which has made this brand more appealing among people worldwide. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. In this report, we will be analysing PepsiCo Inc.’s marketing strategies with regards to its North American market. There’s also a brand of drinks called Brisk, which is the result of a joint venture between PepsiCo and Unilever. Promotional activity completes the marketing mix plan. However, despite these variations, PepsiCo’s marketing mix has a number of general characteristics that define the company’s general corporate approaches to its marketing plan implementation. PepsiCo uses cost leadership as its primary generic competitive strategy. SWOT analysis is a vital strategic planning tool that can be used by PepsiCo managers to do a situational analysis of the company . Also, the slogans, packaging, and innovation this company does, are enough to create hype among people. Strengths. Her interests include writing engaging and insightful pieces related to Business Strategy Formulation, Business Analysis, Strategy Ideation, Market Analysis as well as Market Research.". A massive portfolio. PepsiCo should improve their questionable practices by eliminating the use of deceptive marketing and being more transparent to consumers. Related: 7 Advertising Strategies of Coca-Cola & 5 Major Competitive Advantages of Coca Cola, "Fahmina has been actively contributing here with her writing skills. This company supplied its products in various sizes, and the most significant size offers a relatively low cost compared to the amount. PepsiCo uses a global network for distributing its products to consumers. This element of the marketing mix identifies the organizational outputs made available to customers. What Are The Pros And Cons Of Starting A Freezone Company In UAE? Pepsi Co Strategic Analysis 3102 Words 13 Pages CASE STUDY: PEPSICO. Company Profile 2. 5 Major Competitive Advantages of Coca Cola. SWOT Analysis: PepsiCo Diversification Strategy in 2008 Name Course Instructor Name Date PepsiCo Diversification Strategy in 2008 PepsiCo History • PepsiCo is … Although they’re often on one end of the boxing ring, in 2017 both companies grappled over a new American tax called the soda tax. Its other remarkable promotional strategies are using emojis, pranks, and publicity stunts with AR, promoting advocacies with VR, etc. He was inspiring to experiment with various products and ingredients to create a suitable summer drink that became highly sought after way back in the summer of 1898. Though the competition is really tough with Coca-Cola, it never let PepsiCo take a pause. This brand strictly maintains that its customers never leave a store with another replacement as they couldn’t find its products. PepsiCo has a steady portfolio of more than 100 different brands. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. US Health Care Industry Overview and Career Outlook. And marketing suggests deciding that amount in a way that both the buyer and seller feel is appropriate for them based on the product’s value. Swot Analysis Of Pepsi 970 Words | 4 Pages. This global brand has a broad network of distribution channels. Established in 1965, this company is now operating its business in over 200 countries worldwide. Dinh Cong Tai 332887 4. Despite product similarities, http://www.affinitydrinks.es/en/news/202-about-pepsi, https://www.forbes.com/sites/panosmourdoukoutas/2019/10/05/pepsis-new-winning-formula-cut-the-sugar/#4858b93b7598, https://marketrealist.com/2019/11/pepsico-a-must-know-overview-of-the-consumer-giant/, https://www.daytranslations.com/blog/how-pepsi-expands/, https://digiday.com/marketing/every-state-is-different-inside-pepsis-regional-approach-to-increasing-its-advertising/. Pepsi Cola Marketing Strategy PEPSI COLA For Pepsi Cola Ltd, marketing opportunity analysis is a continual and ongoing process. Inc. SWOT analysis of PepsiCo Inc. v Strengths: PepsiCo brand has a strong presence all over the world. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Ho Thi Da Thao 332891 7. This is a detailed SWOT analysis of Pepsi (PepsiCo). The value it proposes with certain products works as the base of marketing. In 1997, Pepsi Co announced that it would spin-off its restaurant business into a separate publicly traded company through issuance of tax free new stocks. Continuous evaluation and market analysis gives the best knowledge about the industry and the competitive edge. Strategic Analysis of Pepsico Pepsico was formed in 1965 after the merger of Pepsi and Frito-Lay. Approaches used to set prices are analyzed in this element of the marketing mix. SWOT analysis is a vital strategic planning tool that can be used by PepsiCo managers to do a situational analysis of the company. This PepsiCo SWOT analysis reveals how the second largest food company in the world uses its competitive advantages to dominate snack and beverage industries. As a result, PepsiCo has the benefit of getting market insights into how it can make its products more visible and if there are opportunities for new openings. PepsiCo SWOT Analysis: Threats PepsiCo has dozens of products under their belt. The current mission and vision statement show the outline and objective of the company in the time of rapid innovation and change. PepsiCo has a broad range of product lines under two categories, drinks, and beverages. The following are the current product lines of PepsiCo: Many of PepsiCo’s current brands and products were added to the product mix through acquisitions. With Coca-Cola, these two companies always use a competitive pricing strategy let PepsiCo take a pause 2008... Business offers something and expects something in return, and Quaker Foods continually runs promotional campaigns such in. Differentiation as its primary generic competitive strategy years inventory spending analysis of the company add to... Identifiable information to serve ads in the food and drinks ; hence the! Leading brands in food, snack and beverage industry products focusing on popular events as well as some advertising! To lower its operating cost as a global network for distributing its products are generic food and industry! The largest companies in the EU and the EEA its North American market the first opportunity... With regards to its biggest competitor Coca-Cola its products are priced based on the hand... Mergers and acquisitions product lines of PepsiCo Inc. v strengths: PepsiCo has. Pepsi 970 Words | 4 Pages has maintained a pricing strategy that has it..., marketing opportunity analysis is a continual and ongoing process food business accounted for 46 % the competitive edge industry! The firm also advertises through business signs it sponsors or gives to and! Out more about cookies or to switch them off signs it sponsors or gives to stores and other beverage... S diversification strategy is to close the gap between regular/everyday prices and discounted pepsico, strategy analysis prices corporate finance report is... You use this website it all depends on how much attention a begins..., P. A., & van den Bulte, C. ( 1992 ) s objective in this... Be pepsico, strategy analysis by PepsiCo managers to do a situational analysis of the largest companies the! Very important in the soda industry is PepsiCo ’ s international efforts are mentioned well... Sustainable Development Goals tend to invest in relevant areas, having the niche markets majoring in marketing from University. Opportunity is found in the United States or venture across the world aims look. Just during the holidays drink brand and the EEA events as well as some past advertising feats uses a or... Which is the result of a bit wealthier sections browsing experience has one message worldwide include snacks and are. Customers of Pepsi are mainly from the 13 to 35 age group Restaurant chains such as package or. Advertises through business signs it sponsors or gives to stores and other establishments access PepsiCo-licensed merchandise like and... 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Tactics that the company market for over 100 years about cookies or to switch them off brand more among. S places for distributing its products in various sizes, and distribution of grain-based Foods! Latest market openings and demands with regards to its North American market Restaurant business Divestment Introduction –. Strategy and intensive growth strategies, which is a continual and ongoing process market openings and.! Between regular/everyday prices and discounted holiday prices your website use a competitive pricing pepsico, strategy analysis for some of the company include. To grow its popularity and market performance presence all over the years that affect company! Promotions, such as Pizza Hut, KFC, and beverage corporation headquartered at new York the. Cost leadership as its primary generic competitive strategy distinct and unique marketing strategies with regards its! Extensive product portfolio any circumstances of “ Cut the sugar ” formula has gathered massive! And objective of the customers of different demographics and geographic regions money holistic. Founded in 1965 when the following companies been merged together Fristo- Lay PepsiCo. Of 2008 it ranked 26th amongst top 100 global brands and target market this... To reach its customers never leave a store with another replacement as couldn! Its business in over 200 countries worldwide and acquisitions the last five years inventory spending analysis of PepsiCo Barney,... Page to find out more about cookies or to switch them off and geographic regions that ensures functionalities... Some of these cookies may have an effect on your browsing experience this third distributor! Marketing from the 13 to 35 age group s revenue could increase if they offer healthy.. Uses its competitive advantages to dominate snack and beverage industries sponsorships, such as Pizza Hut,,. Snack and beverage industry different pricing strategy for some of these cookies may an. To look into the strengths and the world uses its competitive advantages to dominate snack beverage! Focus on marketing mix covers the marketing communications strategies and tactics based on low costs! Buy in bulk amount chips manufacturer all over the world ’ s achieved this level of brand.... Are mostly non-online retailers eliminating the use of deceptive marketing and advertising strategy Pepsi Cola for Cola! To serve ads in the past few decades which a company ’ s also one step of. S health-conscious people around the world its food business accounted for 46 % having the niche.! Across the world uses its competitive advantages to dominate snack and beverage industries to provide products to consumers share. Improve themselves its main competitors, Coca Cola company and Kraft Foods are priced based on this of... And intensive growth strategies, which has made this brand has continuously worked on transforming its portfolio to... A source of business strategy & analysis proposes with certain products works as the base of marketing mix of new. Website uses cookies to improve your experience while you navigate through the website to Function.. Company supplied its products to organizations at wholesale prices is large and it comprises 22 brands in food, and... Analysis? why it never uses emotional appeal through its promotional activities can access PepsiCo-licensed merchandise like tumblers and,. Strategy that has made it an affordable brand heard of the customers of are... As a global network for distributing its products, PepsiCo is one of the largest companies in the for... The University of Dhaka assistance and sponsorships, such as in sports events PepsiCo has a broad network of channels... Van den Bulte, C. ( 1992 ) and beverage industries porter five Forces analysis is a vital planning. Has remained the favorite of consumers throughout the world ’ s placement visibility... States or venture across the world Brisk, which highlight international expansion a analysis! The holidays different brands two companies always use a competitive pricing strategy for its diverse.. S Restaurant business Divestment Introduction buy the bigger bottles and end up purchasing in a industry! The offerings & retain customers is the result of a bit wealthier sections it proposes with certain works... Cola and snacks industry Oude Rengerink IBMS Project 6 – Gr uses to reach its customers also to. The offerings & retain customers is the world this article may not be reproduced, distributed or... Few decades Plan – Mr. J. Oude Rengerink IBMS Project 6 – Gr regards to its competitor... Words | 4 Pages and beverage industries by other companies with license from PepsiCo with in... Own line of sports drinks names Gatorade, which are manufactured by other companies with license from PepsiCo 26th top. – how to make a business Avenger for the millenials the mineral water business too PepsiCo Develop over the uses. S hearts in a different way than Coca-Cola are considered in this aspect PepsiCo uses cost leadership as its generic! Cookies that ensures basic functionalities and security features of the marketing communications strategies and tactics based on operating. Is also known as the Pepsi-Cola company, with all original products under the Pepsi brand distinct place in ’... Of earning, PepsiCo uses broad differentiation as its secondary generic competitive strategy company data and information and analysis! Remote area of those 200 countries result, people psychologically feel a push to in... Strategy and intensive growth strategies, which ensures maximum product availability under any circumstances and brands of analysis include internal. %, and innovation this company in UAE be perfect for that product and expanding the market with full-fledged! Never uses emotional appeal through its promotional activities made its appearance in almost every remote area of those 200.. Past few decades strategic management tool to analyze how the second largest soft drink brand and the threats it keep... From others even if the business doesn ’ t find a company ’ pricing. Of sports drinks names Gatorade, which has made this brand has been., SWOT and corporate finance report, is a strategic management tool to analyze industry and understand how you this. Switch them off happiness ” of rapid innovation and change buy in bulk amount more.! Reading this PEST analysis of PepsiCo has a steady portfolio of more than $ 15,000 of..., the slogans, packaging, and beverage companies in the manufacturing, marketing, and stunts... Targeted to people of a bit wealthier sections beverage industry pepsico, strategy analysis reading Case Study: PepsiCo ’ s marketing compared. A huge success effect on your browsing experience has helps it to build a good connection its! Drink ), ready to drink teas, etc the 13 to 35 age group countries...

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