Pepsi is one of the favorite companies of American Citizens because it has merged with other products, it is one of the most profitable organizations in America, and their products are popular amongst the American population. Even though PepsiCo started as a company that sold only its signature item: Pepsi, it has developed and acquired other companies in order to
This analysis takes a look at the carbonated soft drink industry and competitive strategy of Coca-cola and Pepsi. This was a very attractive market at the time as Americans were consuming carbonated soft drinks more than any other beverage. Both companies needed to find ways to boost flagging domestic cola sales and generate diverse sources of revenue. Both firms modified their production strategies including their bottling, pricing, and brand strategies. They looked to emerging international markets to stimulate growth and broaden their brand portfolios to include noncarbonated beverages like tea, juice, sports drinks, and bottled water.
Walk down the snack or beverage aisles of any grocery store and one would discover many of the products on the shelves are produced by PepsiCo. In 1965 Herman W. Lay and Donald Kendell of the Frito-Lay Company and Pepsi-Cola teamed up to form PepsiCo. The operations combined in 1986 under PepsiCo Worldwide Foods and PepsiCo Worldwide Beverages. Merging with Quaker Oats in 2001, PepsiCo became a $25 billion company (Friesner, 2012). What are some things PepsiCo does to consistently and stay towards the top of the food and beverage industry?
The company operates in a monopolistically competitive market, where its biggest competitor is Coca-Cola. Pepsi brand name and its strategic message ‘it’s the cola’ have already penetrated the world market. In this case the brand name ‘Pepsi’ is very effective in differentiating its product from the others. Within the soft drink industry Pepsi is considered to be a middle class drink and Pepsi offers quality product that provides assurance to the public. Pepsi is undertaking both advertising and marketing campaigns around the world, its advertising campaign include TV, magazines, in-stores, outdoors and on the Internet.
is organized into four different business markets: Frito-Lay (North America), PepsiCo Beverages (North America), PepsiCo Beverages (International), and Quaker Foods (North America). The business strategy of Frito-Lay, the salty and sweet snack division, was to improve the core brands of the company by making them healthier and trying to maintain a superior taste. They also wanted to create new and tasty snacks. The wanted the goods to be convenient for the consumer, but healthy as well so that they can eat these salty snacks on-the- go. The business strategy of the North American PepsiCo.
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.
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.
Cola Wars: For Coca-Cola's Perspective Overview There is little doubt that the most spirited and intense competition in the beverage world is between Coca-Cola and Pepsi Co., the two main players in the carbonated soft drink (CSD) production market. The competition between the two giants has benefited not only the consumers but also the companies. By checking and challenging each other in the market, the competition has lead to improvement and diversification of products and has forced each company to be creative and innovative. Throughout time, both companies have employed a number of diverse strategies to differentiate their products and to gain market share. Each successful tactic by one company would be copied by the opponent almost in the same manner or countered in a different fashion.
If a soda reaches a higher level of uniqueness it can receive more popularity from its consumers as they will need to return to that specific soda to experience that unique flavor as it cannot be found anywhere else. This makes it important that a good soda becomes unique, so the soda can keep the consumer coming back wanting more. Coca-Cola strives in that aspect with its one of a kind taste that inspired a huge following. Coca-Cola has a dark, and rich sugary taste with hints of spices that dance around in the back of the mouth of the consumer. These flavors all come together in Coke to create an experience that every consumer recognizes as unique as it overwhelms the senses in a manner that is blissful for anyone who takes a sip from it.
This corporation merged with Quaker Oats Company in 2001 to form Quaker Foods and Beverages. 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.