Started in 1916, PepsiCo, Inc. has grown substantially over the past 98 years. PepsiCo started with a formula for a carbonated beverage and has expanded its product line to include snacks products, other non-carbonated beverages, and food products. Pepsi is one of the most globally recognized brands and its other products lines are just as popular as the beverage. PepsiCo has been able to maximize their strengths and minimize their weaknesses from within the company in their research and development and marketing divisions. Using financial ratios, an in-depth look into the financial accounting of PepsiCo will determine if the company is as successful as it seems.
Research and development can be viewed from different angles, from developing new products or improvements to make processes more efficient. PepsiCo tries to forecast their future threats in the industry from competitors then strategizes on how to be the leader of any trend. Utilization of this type of research and development creates a major strength for the company.
One of the strengths that research and development at PepsiCo has is their ability to keep improving their product lines. Whether it is slight changes to a recipe or developing a new flavor profile, PepsiCo has the ability to keep up with flavor trends and are still able to appeal the ever changing taste of the public. With PepsiCo being a global company, their research and development centers are located throughout the world, including China, Germany, and India (to name a few), in order to appeal to that particular demographic (“PepsiCo.” 7).
A slight change in the recipe also includes reducing sodium levels in some products. This segment of the research and development department coincides w...
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...tting to a joint venture, PepsiCo could test products in smaller markets to see if they are successful. PepsiCo would need to find a niche product that can appeal to general public and can withstand being on the shelves for longer than fresh produce but shorter than dry goods. Also, with consumers paying more and more attention to additives, fillers, and other enhancers in their foods, PepsiCo would need to find a product that did not require those items.
Through constant innovation within their research and development department, positive financial analysis, and strength within their marketing department, PepsiCo is worldwide known brand that has established itself as a leader in the beverage and snack foods market over the past 98 years. The company’s successes will continue to grow as they introduce new products that appeal to health conscious consumers.
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’...
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.
Control of market share is the key issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share.
Global soft drink giant, PepsiCo, is a brand that needs no introduction. Headed by Chief Executive Officer Indra Nooyi, PepsiCo is a food and beverage company with total profits in 2017 of $10,789 million (PepsiCo, 2017a) and an ever-present ranking on the esteemed Fortune 100 list (Fortune, 2017). In April 2017, PepsiCo collaborated with model and social media mogul Kendell Jenner, which resulted in the release of controversial advertisement. The commercial went viral upon being released and was deemed so insensitive, it was axed the following day due to the severe backlash it received (The Sydney Morning Herald [TSMH], 2017).
The main company’s brand (Pepsi-Cola, Tropicana, Gatorade, Frito-Lay, and Quaker) contribute to $1 billion in gross sales globally (PepsiCo, 2017). PepsiCo understands to retain and recruit top level employees, the company must stay competitive by virtue of providing an alluring total rewards package along with competitive wages and salaries. PepsiCo commitment to both current and future employees states, “At PepsiCo, we provide more than salary.” (PepsiCo, 2017).
In order for PepsiCo to be successful in selling Pepsi Platinum, the company must research the marketing community. The best way to create a strategic marketing plan is to understand the target market in the beverage and sports drink business. PepsiCo must ask, “What is the demographic of this market, what are psychographics and behaviors of the specific market that PepsiCo, in regards of selling this brand, desires to reach?” Understanding our customer needs, and competitors offerings will help PepsiCo create a strategically integrated marketing plan. The principal to any successful marketing strategy is to understand the customers and their needs. The ability to satisfy customers' needs better than the competitors, will first be, that PepsiCo build customer loyalty and increase sales (Business Link, 2007). Marketing research uses many methods to obtain its results. PepsiCo will use external census data and marketing survey data collected by outside marketing research firms, as a method of understanding customer wants and needs. Computer-aided methodologies will also be used to collect data on the competitors of PepsiCo such as Coca Cola, Jones Soda, and Mo...
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
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.
This is a great model for the company because they can keep their logistic costs down by helping other companies expand their distribution networks. Experimentation with the new market for carbonated beverages on the decline, Coke has done experiments in new flavors and healthier alternatives to try to stay competitive. As well as investing in “Keurig Green Mountain is a K-Cup maker but has a new Keurig Cold that can deliver Coca-Cola through the new system.” (Cooper, 2014) Learning from experience, Coca-Cola has had some fierce competition over the years but nothing in the form of an entire health market shift like now.
PepsiCo's mission listed on their website said as follows: "Our mission is to be the world's premier consumer products company focused on convient foods and beverages. We seek to produce finanical rewards to investors, business partners, and communities in which we operate. And in everything we do, we strive for honesty, fairness, and intergrity." Their mission is done through programs with environmental care, activities that aid the society, and a commitment to build shareholder value. PepsiCo puts significant emphasis on shareholders throughout all aspects of the company.
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...
Coca-Cola is a company with sustainable competitive advantage. The company is innovative and has an extensive business model with boasts of a sustainable distribution network. The company was incorporated in the late 1800s to commence the production of a sweet fizzy beverage that has become the world's most known brand. Presently, the company is still on an upward trajectory as it remains one of the world's most sought-after stocks. The company's competitive advantage has shown resilience and sustainability over the years.
PepsiCo is one of the most recognized names in the snack and beverage industry, with brands like Frito-lay, Gatorade, Tropicana, and Quaker, however, it is best known for its flagship soft drink brand - Pepsi and its rivalry with Coca-Cola. To begin, PepsiCo first caught my Interest in the way it manages its business and markets its products. PepsiCo being a relatively young company compared to its rival Coke, has proven to be a formidable opponent going “head to head” with one of the biggest companies in the world (Coca-Cola). Now, when I notice PepsiCo’s growth, the first thing that came to my mind was that it is thanks to its great marketing campaigns, that Pepsi has grown to become the globally recognized brand that it is today. I also admire PepsiCo because I think the there is a high level of entrepreneurship in the way they acquired smaller brands like Gatorade thereby eliminating their competition before they become competition.
...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.