PepsiCo has been producing a wide variety of beverages and snack foods since its founding in the late 1890’s as a soft-drink company named Pepsi-Cola. PepsiCo is not just soda pop. Since Pepsi-Cola’s merger with Frito Lay in 1965, PepsiCo has strived to offer quality snack and beverage products worldwide. The snack and beverage market is more diversified and plentiful than ever. There are a plethora of choices one can make, from the tried and true to new, exotic and adventurous tastes for anyone to try. At PepsiCo, we strive to meet the demands of our customers. We are constantly improving our brand, by investing in research and products that not only offer new and unique choices to the consumer, but also care for our precious natural resources and environment. We offer our customer new and exciting choices, but we have time-tested staples that our customers rely on, not only for their quality but sentimental value as well. Superior quality and trust in us as a company will move us ahead in reaching our goals. PepsiCo states in its Business Objective that it wants to lead the world in beverage and snack sales. We strive to continue to develop our brand recognition worldwide, as well as become an industry leader in environmentally sound practices.
While PepsiCo desires to be a global sales leader, our current focus will be on our U.S. Target Market. As we move forward, our target market will be young people and their educational institutions. PepsiCo sees great potential in marketing to people ages 13 to 26. This population has money in their pockets, and utilizes retail stores, vending machines, school cafeterias, and athletic venues. The youth of the U.S. have a great sensitivity to environmental concerns and overall health an...
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...ind areas for product improvement, as well as create solutions for potential problems and pitfalls facing the brand. Among PepsiCo’s strengths are brand recognition and loyalty, as well as product diversification. The company can build on these strengths to confidently introduce into the market that are innovative and health-conscious. PepsiCo will also continue to grow our in commitment in environmentally responsible manufacturing. Challenges facing the company are varied, not insurmountable. PepsiCo has had problems with employee/management relations, and discrimination. There have also been some marketing issues, including controversial ads and poor logo redesign. PepsiCo will need to make sure it gains control over the image it wants to portray to its target market, stay on top of PR issues, and ensure that there is no over-reliance on any single retail outlet.
Pepsi needed a strong regional partner. Pepsi had been falling behind to Coke in Mexican market. However, changes in the regulatory environment had cut Coke’...
focus more on the fun-for-you, major brands: ignore the other two segments, and focus on PepsiCo’s core products. The issue is that it may seem as though PepsiCo is going back on their word and Nooyi’s strategy. As well, PepsiCo might be seen as unethical for pushing their high-sugar, high-calorie drinks and junk food, while Americans and those of other nationalities are facing higher and higher levels of obesity.
Coke continuously out-stands Pepsi, even though they share a very similar taste and colour, however Coke should not be the drink that receives all the love and attention for what it offers. Despite their similar soda colour, the drinks actually contain some different ingredients, which produce a different taste, and affect the body differently. Furthermore, the way the companies markets their drinks makes a huge contribution to how successful their products will become. The major element for success however stems from their impact on society and how the companies utilize their social power to evolve. The two major soda companies are constantly head to head with one another, yet it is what they do that sets them apart.
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold. Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years. The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks. The possible impact of this factor will be addressed later in the case.
The Coca-Cola Company - American multinational corporation operates in a nonalcoholic segment of Beverage Industry. The history of the industry goes back to the 17th century, when the first marketed soft drink came to the Western Market.
The Coca-Cola company has long been known as one of the leading international soft-drink corporations. Due to the rising frenzy concerning global climate change and the need to be ‘green’, Coca-Cola began monitoring and evaluating the company’s production and distribution methods in order to determine whether it was an ecologically responsible company. In an effort to present itself in a greener light, Coca-cola has acquired more natural brands, with Odwal...
Pepsi Cola Marketing Strategy PEPSI COLA For Pepsi Cola Ltd, marketing opportunity analysis is a continual and ongoing process. 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. Pepsi wishes to create a clear cola that is 100% natural, low in sodium, caffeine-free, and still maintains the flavour of its original cola. They will call it Pepsi Au Naturel.
Pepsi Company (PepsiCo) owns many brands of beverages, snacks and other foods. Its major product, Pepsi Cola, is one of the most popular carbonated beverages. Besides that, PepsiCo owns the brands Quaker Oats, Gatorade, Frito-Lay, Tropicana, Mountain Dew, Naked, Mirinda and SoBe. In order to maintain, or preferable expand, its market share, PepsiCo constantly introduced new products under its brands. This is a marketing strategy known as Product Development. By modifying the formulas and ingredients, PepsiCo had invented and marketed more than 50 types of carbonated beverages under the brand of Pepsi. To name a few, Pepsi Free introduced in 1982, Pepsi AM introduced in 1989, Pepsi Tropical introduced in 1994, Pepsi Blue introduced in 2003, Pepsi Edge introduce in 2004, Pepsi Lime introduced in 2005, and Pepsi Ice introduced in 2007. Some of the products survive and being accepted by consumers, however large number of the new formula Pepsi had failed and been removed from the market shelves in as short as 6 months.
Place: PepsiCo uses a global network for distributing its products to consumers. Most PepsiCo products are available at retailers, such as supermarkets, grocery stores, and convenience stores. However, customers can access PepsiCo-licensed merchandise like tumblers and t-shirts through retailers and their websites. Based on this element of the marketing mix, PepsiCo’s places for distributing its products are mostly non-online
c.) Some iconic brands include; Beverage: Pepsi, Mountain Dew, Gatorade, Sierra Mist, Tropicana, Brisk, Lipton; Food: Quaker Oats, WBD, Rold Gold pretzels; Snack: Lay’s, Doritos, Cheetos, Tostitos. The mission statement is “to provide consumers around the world with delicious, affordable, convenient and complementary foods and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to evening treats”. We are committed to investing in our people, our company and the communities where we operate to help position the company for long-term, sustainable growth.” II.
Since neither of the products created the measurable sales and market share increase Pepsi needed, PepsiCo International (PCI) executives conceived of a plan to create a new tagline and re-brand all existing Pepsi products, signage, advertising materials and in-store display units. The executives envisioned a simultaneous, global campaign that would create stronger brand equity and resonance in the consumer consciousness.
There are a variety of beverages available to us today with a wide range of differences, some are flavored, carbonated, low calorie, energy boosters, and just plain water. When it comes down to carbonated drinks there are two major rivalry soda companies dominating the market. Coca Cola and Pepsi are two well know cola distributors with very credible history, but the question still remains one is America’s favorite? With the ongoing competition between Coca-Cola and Pepsi, each company is incorporating new strategies for marketing and advertising there brands. When comparing an advertisement from each of the companies, we will review how they appeal to consumers.
Cola Wars Environmental Analysis 1. Introduction External environmental analysis of US carbonated soft drink (CSD) industry allows concluding that declining CSD sales call for changes in industry operations whereby market players can benefit from the fundamental shift in the industry development and maintain its leadership positions in beverage market. Analyses of macrolevel, industry, and competitive environments suggest that expansion, strong brand recognition, and changes in value chain will be key success factors in the future industry development. 2. What is the difference between a.. External environmental analysis a. Macrolevel environment (PESTEL analysis) i. Political New federal nutrition guidelines identified CSD as the largest source of obesity-causing sugars in the American diet.
Frito-Lay controlled 40% of the USA-market assuring high volume production by increasing internal coordination with PepsiCo developing the Power of One strategy consisting in mixing snacks with beverages and sauces produced by Peps...
...e and Pepsi’s already established image as producers of premium product is key to discouraging other companies from entering the soft drink industry. However, as the market in the U.S has leveled off, they should continue to invest globally in marketing and advertising for further profit growth, which will in turn positively influence their well established brands to further increase soft drink sales and profits.