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? By examining PepsiCo's marketing mix, organizational structure, social responsibility, use of technology and financials that question can be answered.
Every major corporation has a marketing mix; product, price, place and promotion. PepsiCo produces a wide variety of beverages and snacks. Beverages include Pepsi, Mountain Dew, Gatorade, Tropicana, Aquafina Bottled Water and Sierra Mist. A few of PepsiCo's savory snacks are Fritos Corn chips, Ruffles Potato Chips, Lays Potato Chips, Tostitos and Doritos. Breakfast cereals, cakes and cake mixes are also products of PepsiCo (Friesner, 2012).
As with all companies, PepsiCo must provide its customers with products at a reasonable price while at the same time trying to operate at a profit. Some of the ways PepsiCo attempts to do this is by cutting their overhead, re-engineering their manufacturing process and using inexpensive recyclable plastic bottles. Pricing could possibly be influenced by PepsiCo's relationship with Wal-Mart whose pricing strategy forces PepsiCo to keep prices low. Although PepsiCo does its best to keep low prices, over the last few years some prices have been increased by the company. The beverage industry in general has b...
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...iring new brands and ideas for new product development. These are just a handful of things PepsiCo does to consistently compete and stay towards the top of the food and beverage industry.
References:
(2013). Retrieved from PepsiCo.com: http://www.pepsico.com/
Aguirre-Mar, M. (2013). Global Structural Design and Results: PepsiCo Case. Journal of Strategic Leadership, 6-13.
Friedman, H. (2011). Product Policy; New Product Development. Retrieved from http://academic.brooklyn.cuny.edu/economic/friedman/mmproductpolicy.htm
Friesner, T. (2012). Retrieved from Marketing Teacher.com: http://www.marketingteacher.com/case-study/pepsico-case-study.html
Larson, A. (2012). Retrieved from Lard Bucket: http://2012books.lardbucket.org/books/entrepreneurship-and-sustainability/s01-about-the-author.html
Plant, R. (2011). Retrieved from Reliable Plant.com: http://reliableplant.com/
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’...
This case describes the complexity of PepsiCo's competitive position in the Mexican soft-drink market during the late 1990's. Between 1993 and 1996 PepsiCo and Coca-Cola waged a classic cola war in Latin America. The goal for both companies was to gain market share and by the end of 1996, Coca-Cola had clearly won the Latin America cola war. In 1993 PepsiCo enjoyed a 42% market share in Venezuela thanks to the success of its bottling partner, the Cisneros Group but by the end of 1996, PepsiCo held less than 1% of the Venezuelan cola market. Following PepsiCo's anchor bottler in Mexico, Gemex, the case details the strategies employed by PepsiCo's senior management beginning in 1993 to expand its market share versus Coca-Cola. The various dimensions of PepsiCo's strategy -- marketing, management, financial, strategic - seemed to have deteriorated in the aftermath of the unexpected fall in the Mexican peso in December 1994. Focusing on the financial implications of the peso devaluation, the case then describes PepsiCo's response, which only seemed to increase the financial burdens imposed on the faltering Pepsi market share.
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.
In recent years, PepsiCo has become more dedicated to environmental sustainability by continuously looking for new ways to cut costs and increase efficiency but at the same time not reducing product quality. They are also committed to minimizing their impact on the environment through energy and water conservation and by reducing the amount of packaging materials. (Environmental Sustainability) PepsiCo uses water in almost every aspect of their manufacturing p...
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.
Cola Wars To begin with, the carbonated soft drink industry is a profitable industry as its products such as Pepsi or Cola sell extensively across the globe. The industry relies heavily on its concentrate producers and bottlers to reach out to its market. This is further analyzed through Porter’s five competitive forces: Threat to New Entrant: When an entrant wants to enter this industry, it would need a distribution channel. However, most of the bottlers in the industry are linked to a contract or agreement with the dominant companies such as Pepsi or Coke that does not allow them to “carry any other competing brands” (p.3). So, it would be hard for new companies to obtain a distribution channel.
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...
PepsiCo is the world 's #2 carbonated soft drink maker behind the Coca-Cola company. Its soft drink brands include Pepsi, Mountain Dew, their diet alternatives, as well as Mug Root Beer and Sierra Mist. Soda pop is not the company 's only beverage either: Pepsi also sells Tropicana orange juice, SoBe Tea. Aquafina water as well as Gatorade sports drink. The company owns Frito-Lay, the world 's #1 snack maker aswell with it’s brands including those such as Lay 's, Ruffles, Doritos, and Cheetos. PepsiCo’s Quaker Foods unit makes breakfast cereals such as Life, and Quaker oatmeal. Rice-A-Roni rice, and Near East side dishes are also made by the company aswell. Pepsi products are available in 200-plus countries; with the US accounting for over 50% of it’s total sales. The company owns its own bottling plants and distribution facilities unlike Coca-Cola who to maximize profits makes the syrup which is distributed by bottlers from outside the company. For their most recent quarter ending
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.
Price and advertising strategy: PepsiCo Overhauls Statergy. PepsiCo plans on saving 1.5 billion dollars in...
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...
The purpose of this report is to compare financial reports from the two largest soft drink manufacturers in the world. The Pepsi Co. and Coca Cola have been the industry's leaders in their market since the early 1900's. I will use relevant figures to determine profitability, and break down key ratios in profitability, liquidity, and solvency. By breaking down financial statements, and converting them to percentages and ratios, comparisons can be made between competitors regardless of size.
PepsiCo is a world leader in convenient snacks, foods, and beverages with revenues of $60 billion. (PepsiCo.com). PepsiCo manufactures, markets, and sells various foods, snacks, and carbonated and non-carbonated beverages worldwide. The company operates in four divisions: PepsiCo Americas Foods, PepsiCo Americas Beverages, PepsiCo Europe, PepsiCo Asia, Middle East and Africa. PepsiCo has many different brands. PepsiCo strive for honesty, fairness, and integrity in everything they do. “PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate-environment, social, economic - creating a better tomorrow than today. Some of the problems in the company are local beverage tax increase. Really the company took a loss because of the decline in sales. PepsiCo believes that by working together, they will succeed in creating a healthier and more sustainable future for
... it’s a buyer’s market, therefore instead on focus on push advertising and trying to compile prospective customers to buy their product, Pepsi is trying to make Pepsi a part of the consumers life so, whether consciously or unconsciously, if a customer goes out to buy soda the first thing that comes to his/her mind, is Pepsi. I find this especially intriguing, because as an aspiring entrepreneur I hope to one day market my products with the same if not better technics as Pepsi.
...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.