Outline-Pepsi/PepsiCo
I.) Introduction
a.) Pepsi is a brand far more complicated than just a simple cola product. The company, PepsiCo, has a wide spectrum of marketing perspectives that are vital to the consumers and the company.
b.) PepsiCo is a global food and beverage corporation based in New York. The company was formed in1965 with the merger of Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo grew bigger with the 1998 acquisition of Tropicana and the 2001 merger with Quaker Oats. The company has several different products that are known globally. PepsiCo offers twenty-two iconic brands to over more than two hundred countries and territories. The iconic brands generate more than one billion dollars in annual retail sales.
c.) Some iconic
The promotion mix is to help attract target customers to specific products. PepsiCo promotional mix is advertisement, sales promotion, direct marketing, and public relations. PepsiCo’s advertisement usually consist a celebrity drinking the Pepsi product in a commercial. The sales promotion, which is discussed in chapter fifteen, includes sweepstakes, coupons, and rebates. Direct marketing is to sell directly to companies at wholesale price. Public relations include: sponsorship or financial assistance.
d. Because of the wide array of products PepsiCo offers, the pricing is varied. PepsiCo’s pricing strategy are market oriented pricing strategy (value base pricing) and hybrid everyday value pricing strategy. Value Base pricing is defined, as setting a price that seems to be good compared to other prices. Market oriented pricing strategy is competitive prices. Hybrid everyday value pricing strategy is to ensure that there is a different between seasonal and everyday product. The reason why is to ensure consumers will buy the product everyday, not just
Ecological factors might affect Pepsi, but it will not have much toll on trade and profit generation. Ecological factors affect agriculture businesses more.
v. Pepsi is a non-alcoholic beverage, so the FDA regulates it. Pepsi is expected to maintain a firm standard of the laws. Different markets across the world follow different set of regulations, which are either relaxed or severe
d. Competitive pricing is a factor, which the firm should keep in mind all the time. The scenario is very important because there can be civil disturbance, fall in sales due to inflation, or cross-border situations. As a result, Pepsi has to stay updated with all changes and policies in order to adapt.
e. SWOT Analysis:
i. Strength’s: PepsiCo strength is branding. One of PepsiCo’s top brands is of course Pepsi, one of the most recognized brands of the world. In 2016, it ranked 24th amongst top 100 global brands. Pepsi generates more than $15,000 million of annual sales. Recognized brand include, Pepsi, Diet Pepsi, Gatorade Mountain Dew, Thirst Quencher, Lay’s Potato Chips, Lipton Teas (PepsiCo/Unilever Partnership), Tropicana Beverages, Fritos Corn, Tostitos Tortilla Chips, Doritos Tortilla Chips, Aquafina Bottled Water, Cheetos Cheese Flavored Snacks, Quaker Foods and Snacks, Ruffles Potato Chips, Mirinda, Tostitos Tortilla Chips, and Sierra
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.
Therefore, the long-term brand of Coca cola and better pricing strategies would help in competing with Pepsi. Unlike, Pepsi, Coca cola had targeted entering into partnership and alliances with local distributors and firms. This helps to develop strong relationship within the domestic firms to reduce the domestic barriers and thus, enhance the company’s competitiveness (Thabet, 2015). Lastly, the Asian markets consist of related and supporting industries to the soft drink industry that helps the companies in gaining a strong competitive position in the markets. Based on the competitive advantage of nation’s model, Coca cola has more home based advantages to develop a competitive advantage in relation to other countries on a global
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.
Pepsi Cola Marketing Strategy PEPSI COLA For Pepsi Cola Ltd, marketing opportunity analysis is a continual and ongoing process. Pepsi have used the new product strategy to realise their ambitions to both defend their current market position, and reinstate their position as a product innovator. Pepsi wishes to create a clear cola that is 100% natural, low in sodium, caffeine-free, and still maintains the flavour of its original cola. They will call it Pepsi Au Naturel.
Customers: Internationally retailers and fountain sales are going to be weaker as they are not consolidated, like in the US Market. This will provide Coke and Pepsi more clout and pricing power with the buyers
Pepsi is a carbonated soft drink company. It is made by Pepsi Co. the drink was created and made in 1893 and produced as Brad’s drink. Later it changed to Pepsi-Cola in 1898. Then Pepsi in 1961. The color of the drink is caramel e-150d. the variaints of the drink are diet pepsi. The word Pepsi was born out of dyspepsia and kola nuts that are used in the recipe. The first recipe had sugar and vanilla. This drink was used for helping in digestion and boosting energy. After moving the bottle from his drugstore to the warehouse he sold 7000 gallons of the syrup. The next year Pepsi sold 19 thousand gallons. The first celebrity to promote and endorse Pespi was Barney. The first logo was changed after 20 years. Pepsi changed the design of the logo again. After the great depression the company went bankrupt. This was due to the financial losses incurred from the price of sugar. The Pepsi trademark was bought by Megargel. Then the Pepsi asset changed hand and landed with Charles Guth. Since coca cola refused to discount him syrup he replaced it with Pepsi. Thrice between 1922 and 1933 Coca Cola was given
Pepsi and Coca-Cola are both sodas, but they differ in terms of the satisfying flavors, the color and the graphic design that represents their two products, and then how Coke makes more money than Pepsi. With that said, you should have gotten the ideology of what we will go further in discussing about. Everybody loves these two very well-known sodas which can inject caffeine into you, which makes you all jittery in filling you up with an energetic energy. Alright, enough of this, let's go straight in-depth in talking about the two rivals throughout this paper of how Pepsi beats Coke in sales, but Coke is usually ahead when it comes to annual net income (Feigin) or how Pepsi is a sweeter brand compared to Coke, though Coke brand is more valuable
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.
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.
PepsiCo was created in 1989 by pharmacist Caleb Bradham. It was originally named “Brads Drink” but because of the pepsin and kola nut ingredients Bradham decided it would be better to call it Pepsi-Cola. In 1910 Pepsi franchised to 24 states and sold over 100,000 gallons of their syrup annually. In 1923 Bradham sold the trademark to Craven’s Holding Corporation, who shortly after sold it to a New York stockbroker named Roy C. Megargel. Within a few years the company was earning over a millions dollars and was on its way to making history. Pepsi generates over $98 billion in retail sales, and holds 36% of the total snack food market in the United States. Pepsi-Cola’s headquarters are located in New York with nearly 300,000 employees
The main threat of the company is not from the local producers but from the global producer Pepsi Co that has similar product line and methods of manufacturing and distribution.
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.
As the world 's largest manufacturer and distributor of non-alcoholic beverages, Coca-Cola is certainly no stranger to global marketing. Established in the US, Coca-Cola initiated its global expansion in 1919 and now markets to more than 200 countries worldwide. It is one of the most recognizable brands on the planet and also owns a large portfolio of other soft drink brands including Schweppes, Oasis, 5 alive, Kea Oar, Fanta, Lilt, Dr Pepper, Sprite and PowerAde. Despite this, Coca-Cola often struggles to maintain its market share over its main rival PepsiCo in some overseas markets, particularly Asian countries.