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’...
Pepsi by all means, will not hesitate to when promoting their products and in fact, Pepsi has been spending over one billion dollars on advertisements, gaining thirty-four millions Facebook likes and two million Twitter followers (O’Brien. "Coca Cola vs. Pepsi: Comparing Sales, Earnings & More"). They also sponsor some of the famous American sports for instance, NFL (national football league), the NHL (national hockey league), and just recently, they have also replaced Coke, as a NBA sponsor (national basketball league) who was a major sponsor for two years in a row (Alesci, Rooney). Pepsi has a huge impact of today's generation and will not balk at anything to come to the
Brand Image / Loyalty: Coke and Pepsi have a long history of heavy advertising and this has earned them huge amount of...
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 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.
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.
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 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
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.
Place: PepsiCo uses a global network for distributing its products to consumers. Most PepsiCo products are available at retailers, such as supermarkets, grocery stores, and convenience stores. However, customers can access PepsiCo-licensed merchandise like tumblers and t-shirts through retailers and their websites. Based on this element of the marketing mix, PepsiCo’s places for distributing its products are mostly non-online
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.
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
Coke and Pepsi have been raging war for over a century now, turning their sodas into a multi-billion-dollar industry. Coke has been able to drive more earnings for its bottom line, and while Coke’s net income has been trending downward in recent years, it manages to stay ahead thanks to superior margins. Pepsi, on the other hand, has produced consistent net profit margins of around 10%, while Coke margins have been in the 15-18% range for the past several years (O’Brien). Every company has a Market Cap, which is basically a fancy way of saying how much the company is worth, and Coca-Cola’s market cap is a whopping $180 billion. Pepsi’s Market Cap is $150 billion, which may not seem like a big difference, but $30 billion is a lot of cheddar. Therefore, Coca-Cola owns 51% of the soft drink market, whereas Pepsi only owns 22% of it. Coke claims to own a total of 35 different brands, including Fanta, Sprite, Powerade, Vitaminwater, and many others. Pepsi owns 22 different brands, including 7up, Gatorade, and Mountain Dew “Coke (Coca-Cola) vs Pepsi - Soda
Price and advertising strategy: PepsiCo Overhauls Statergy. PepsiCo plans on saving 1.5 billion dollars in...