How PepsiCo Stays on Top Essay

How PepsiCo Stays on Top Essay

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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...


... middle of paper ...


...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/

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