Pepsi's Aquafina Water Nears Full US Distribution
Pepsi's Aquafina "mainstream" bottled water nears completion of national rollout. Brand is now in "about 75%" of Pepsi US system, according to Pepsi senior marketing manager Katie Lacey. Purified, non-spring-sourced Aquafina produced at 11 sites in US: 8 COBO plus 3 co-ops. Sold in 20-oz Pepsi swirl plus 1-liter and 1.5-liter proprietary PET bottles similar to swirl; also 20-oz 6-packs. Market share. In IRI convenience/gas channel data for bottled water in under 64-oz packages, Aquafina ranks #2 with 7.7 share year-to-date through 5/18/97; brand's share up +3.7 vs same period last year (see table).
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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.
Every day , Puerto Rico is slowly adapting into the American way of life and is gradually losing what is left of their culture. Perhaps this is because Puerto Rico is a commonwealth of the United States. The poem “ Coca Cola and Coco Frio” by Martin Espada is a great example of someone who encounters the Americanized culture of Puerto Rico. Puerto Rico is struggling to preserve their own identity.
Yoffie, D. B., 2002. Cola Wars Continue: Coke and Pepsi in the Twenty-First Century. HBS No 9-702-442. Boston, MA: Harvard Business School Publishing.
WO strategies aim at improving internal weaknesses by taking advantage of external opportunities. Laws and governmental regulations require companies such as L’Oreal to maintain certain standard in quality and responsibility for their product. Rules may vary depending on the country. L’Oreal also have it own set of regulations that are very strict on quality. Whatever product is put on the market, one can be sure that it has gone through a very thorough and scienti...
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.
In short, the industry extremely focused on preventing and testing the presence of bacteria. Therefore, bottled water often represented “somewhat of a novelty or prestige product” in the United States, and it gave a perception to their consumers that they need to purchase bottled water in order to stay young and healthy. Because the bottled water industry seemed very attractive and profitable, as mentioned above, there were many competitors, too. Total nine bottled water producers were mentioned in the case study, but four key major rivals were Coca-Cola, PepsiCo, Nestle, and Groupe Danone. However, there was no one buyer that accounts for a significant fraction of overall market demand. Distribution varied depending on the producer, but most distribution channels included food stores, supercenters, supermarkets, discount stores, and wholesale clubs. Because bottled water had an easy availability, consumers in the United States were able to find it anywhere the food was also
The case to consider is L'Oreal Nederland B.V. The birth of the L'Oreal began back in 1907 when, a young French chemist, Eugène Schueller, developed a new hair-color formula that was considered to be safe for hair. The new hair dye was named Auréole. "Eugène Schueller formulated and manufactured his own products, which he then sold to Parisian hairdressers. In 1909, Schueller registered his company, the Société Française de Teintures Inoffensives pour Cheveux ("Safe Hair Dye Company of France"), the future L'Oréal. The guiding principles of the company that would become L'Oréal were put into place from the start: research and innovation in the interest of beauty."(Wikipedia, L'Oreal) By 1920, this developing company employed 3 chemists and by 1950, the research team had grown to a 100 and has continued to grow to nearly 2,000 today. "L'Oréal got its start in the hair-color business, but the company soon branched out into other cleansing/beauty products. L'Oréal now markets over 50 brands and many thousands of individual products in all sectors of the beauty business: hair color, permanents, styling aids, body and skin care, cleansers and fragrances. They are found in all distribution channels, from hair salons and perfumeries to hyper- and supermarkets, health/beauty outlets, pharmacies and direct mail." (Wikipedia, L'Oreal) From the very beginning L'Oreal was founded on strong research and development techniques and today it has five worldwide research and development centers. "Two in France: Aulnay and Chevilly. One in U.S.: Clark, New Jersey. One in Japan: Kawasaki, Kanagawa. In 2005, one established in China: Shanghai." (Wikipedia, L'Oreal)
During the 1990s, PepsiCo launched new products and engineered a global re-branding campaign in an effort to grow sales volume; reinvigorate their stagnant brand; and to close the increasingly large sales and market share gap between itself and its primary competitor, Coca-Cola. In 1993, Pepsi jump-started its marketing efforts by adding two brands to its portfolio: Crystal Pepsi and Pepsi Max. Crystal Pepsi, which was initially offered in the United States, failed to earn the company more than 2 percent volume share. Pepsi Max, which was launched in the United Kingdom, proved more successful, but because one of its primary ingredients was an artificial sweetener not yet approved by the Food and Drug Administration, it wasn't brought to market in the United States.
Pepsi’s 2003 Advertising Campaign Nowadays PepsiCo Inc. is among the most successful consumer product companies in the world. It divides into two major domestic and international businesses, beverages and snack foods. In order to attract the broadest number of customers, advertising plays a significant role. In this essay, the advertising campaign of Pepsi in 2003, which was unveiled not only on TV, but outdoor advertising as well, will be analyzed. The aim for this campaign is about combine consumption of food and Pepsi.
With the times changing PepsiCo and other soft drink companies realized that when people go to have a snack they look for a drink as well, and with consumers looking for the healthy option soda company’s like PepsiCo were losing customers” (p.1). This is a creative and effective marketing strategies by the Pepsi Company since, they could realize the wants and thought of providing the need. In this case, the want was a drink with a snack, and their plan was to provide the most suitable drink with the snack, so that more people will buy their product, and their brand will promote. Since the consumers were looking for healthy soda drink instead of any kind of soda, this strategy didn’t work so well because they were losing customers like some other companies. However, it didn’t stop Pepsi Company to use this strategy, rather the company came up with a new strategy provide the healthy soda drink with the snack and be profitable at the same time. According to Ryder (2013), “PepsiCo introduced the “Power of One” in which PepsiCo purchased the two largest bottling groups, New York based Somers Pepsi Bottling Group (PBG) and Minneapolis based Pepsi-Americas. This merge gave PepsiCo direct control over 80% of its bottling network” (p.1), their new strategy
The Coca-Cola Company is the largest non-alcoholic beverage company in the world who owns, sells and distributes more than 600 different non-alcoholic beverages in 200 countries and more. “The amount of product Coca-Cola sells equates to 1.9 billion or 3.2% of the total amount of non-alcoholic beverages served worldwide” (Jurevicius, 2017). Additionally, they have a large/dominant market share, enormous brand recognition and a huge advantage in the number of consumers they can reach. Not to mention the Coca-Cola Company also owns other reputable brands such as Sprite, Fanta, Minute Maid and even Powerade to name a few that combine to earn the company, approximately, an additional $1 billion dollars annually. Because Coca-Cola are a huge presence in this industry, the company has the ability to beat out its competitors by underpricing some of its items and can exercise market power over its suppliers. Like Coca-Cola, Snapple has a strong foothold in their diverse brands they offer as well.
PepsiCo has a food and beverage portfolio that includes 22 brands that each generates more than $1 billion in estimated annual sales. The primary product brand categories include Pepsi-Cola, Frito-Lay snacks, Gatorade sports beverages, Quaker Oats products, and Tropicana fruit juices. As of 2012 PepsiCo’s product mix consisted of 63 percent foods and 37 percent beverages. The worldwide product lines include several hundred brands that have been estimated to produce nearly $108 billion in cumulative annual retail sales. To be designated as a food and beverage industry main brand PepsiCo had to reach annual sales of over $1 billion which it achieved in 2009.
Strom, Stephanie. "Bottled Water Sales Rising as Soda Ebbs." New York Times 25 Oct. 2013. Web. 8 Mar. 2014. .