...Alternative Beverage Industry Analysis PepsiCo Justin Baumgartner Cover Letter: To: Mr. Morgan From: Justin Baumgartner Re: Environmental and Industry Analysis – Alternative Beverage Market Recommendations for PepsiCo’s strategy in Alternative Beverages Date: September 19, 2012 Attached you will find my analysis of the alternative beverage markets in 2009. The analysis includes an assessment of the competition in the alternative beverage market using Michael Porter’s Five Competitive Forces framework. I have also identified key drivers for change and key success factors for competing successfully in this market. Using information, I have then provided a set of recommendations for PepsiCo’s future strategy in alternative beverages. Briefly, my analysis of competition in alternative beverages shows the market to be very competitive. The drivers for change that will influence competition in this industry in the future are technology/globalization and changing in societal concerns, attitudes, and lifestyles. The key success factors that all firms competing in this market must be addressed are product differentiation, size of their organizations, and brand loyalty. This analysis suggests my recommendation to you regarding PepsiCo’s strategy to be brand loyalty, globalization, and product innovation. I hope you will find this information to be valuable to your firm and I thank you for the opportunity to provide this service. Alternative Beverage Industry...
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...Date of Submission 1. Evaluate the fundamental driving forces that shape the organizational environment of the selected company. Be sure to address the following: competing in a global marketplace, workforce diversity, ethics and morality, and technological innovation. PepsiCo has been one of the leading beverage company around the globe. The company has been ranked as one of the best companies about the work environment for one to work. The PepsiCo company has positioned itself well to compete in the global market by making sure that they have come up with marketing strategies that are unique. The company has been using a lot of funds in strategizing on the best policies to use so as to continue upholding that given global position in the production of beverages. In fact, the major competitor for decades of the PepsiCo has been the Coca-Cola Company. However, over the years, the performance gap between the two firms is reducing with the PepsiCo emerging to be the world’s best company in the different area. The company has on many occasions been awarded as one of the firms that embrace diversity. Being a company with the global status, it is currently employing talented individuals from different regions. The company is also undertaking diversity programs that ensure that the employees feel appreciated regardless of their place of origin, race, sexual orientation, and gender among other things (Braedel-Kühner, 2016). PepsiCo has been holding high levels of ethics and morality...
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... 1. Evaluate the fundamental driving forces that shape the organizational environment of the selected company. Be sure to address the following: competing in a global marketplace, workforce diversity, ethics and morality, and technological innovation. PepsiCo has been one of the leading beverage company around the globe. The company has been ranked as one of the best companies about the work environment for one to work. The PepsiCo company has positioned itself well to compete in the global market by making sure that they have come up with marketing strategies that are unique. The company has been using a lot of funds in strategizing on the best policies to use so as to continue upholding that given global position in the production of beverages. In fact, the major competitor for decades of the PepsiCo has been the Coca-Cola Company. However, over the years, the performance gap between the two firms is reducing with the PepsiCo emerging to be the world’s best company in the different area. The company has on many occasions been awarded as one of the firms that embrace diversity. Being a company with the global status, it is currently employing talented individuals from different regions. The company is also undertaking diversity programs that ensure that the employees feel appreciated regardless of their place of origin, race, sexual orientation, and gender among other things (Braedel-Kühner, 2016). PepsiCo has been holding high levels of ethics and morality...
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...PepsiCo: External Considerations Overview PepsiCo is popularly associated with its flagship product Pepsi Cola. While Pepsi Cola is a sizable portion of PepsiCo’s revenue stream, PepsiCo actually has significant revenue generated from a slew of other products and divisions such as PepsiCo Beverages North America, PepsiCo International, Frito-Lay and Quaker Foods North America (Overview, 2005). PepsiCo’s Pepsi Cola has long been second in market share to Coca-Cola and the competition between Pepsi and Coke has been the stuff of business school legend for many years. However, thanks to a series of strategic acquisitions and market entry moves internationally, PepsiCo as a company has finally overtaken Coke in overall market share and performance: “PEPSICO...has raced ahead of...Coke in overall growth rates. PepsiCo earnings last year surged 18% to $4.2 billion on revenues of $29.3 billion, up 8.5%...Coke's 11.5% earnings growth to...4.4% revenue growth to $22 billion for 2004” (Steiner, 2005, para.2). It could be said that PepsiCo has lost the cola battle but won the overall war with its archrival Coca-Cola Company. PepsiCo has done this by becoming a snack food and beverage Company with operations in more than 200 countries worldwide, over 143,000 employees both national and international and over $4 billion in revenues (PepsiCo, 2004, p.4). Increasingly, PepsiCo, as most other large MNCs have done, is relying on overseas expansion to fuel its future growth and earnings...
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...Sustainability - Pepsi-Cola Company Sustainability - Pepsi-Cola Company Sustainability can impact all the areas of operation within a company; including manufacturing, distribution, development, and support functions. All entities including; employees, supply chain partners, customers, investors and stakeholders involved in a company’s operations should understand the importance of achieving and establishing sustainability. Because of the numerous entities involved along with government regulations, establishing sustainability may come with red tape and barriers. According to The Boston Consulting Group (2009), companies often lack the right information upon which to base decisions and companies struggle to define the business case for value creation. The Consulting Group, also states that flawed execution is often a cause of failure. Creating a successful sustainability and implementation strategy is an important factor to a company’s financial success. Pepsi is an example of a company who has successfully worked through the challenges to execute and maintain sustainability. Sustainability The meaning of sustainability in business is defined more clearly by example of bad practices in sustainability and also success stories throughout history. This way a person who isn’t familiar with the meaning or sustainability practices and strategies can get a solid grasp on what it is truly about. Sustainability is crucial for financial success...
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...YUM! BRANDS, PIZZA HUT, AND KFC Teaching Note Overview This case describes the evolution of the global fast-food industry and Yum! Brands, Inc.’s development of the Pizza Hut and KFC franchises worldwide. It focuses on international business risk assessment and develops a model of country evaluation that students can use to analyze international business and market entry decisions in a variety of industries, regions, and countries. Teaching Objectives 1. Develop skills in industry analysis 2. Develop skills in global industry analysis. 3. Develop knowledge of franchising and the costs and benefits of expanding globally using franchises versus company-owned stores. 4. Develop skills in international business risk analysis. 5. Develop skills in country portfolio evaluation and assessment. Suggestions for Using the Case This case has been used successfully in undergraduate, MBA, and Executive MBA classes in strategic management, marketing management, and international business. It can be used in undergraduate courses to develop student skills in industry structure analysis, strategy analysis, and international business risk assessment. The teaching note is designed to give students practice in each of these three areas. Instructors may choose to use the case to discuss only one of these three areas during a single class period or to cover all three areas over two class periods. The case can be also...
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...PEPSICO CORPORATION STOCK ANALYSIS Presented by: St. John’s University Undergraduate Student Managed Investment Fund April 29, 2003 Recommendation: Purchase 400 shares of PepsiCo stock at market order Industry: Food and Beverage Kristopher Cartagena – kcart26@yahoo.com Dion Demetropoulos – Ddeme829@aol.com Tenisha Martin – tenishax@hotmail.com Share Data: Price - $42.65 Date – April 25, 2003 Target Price - $50.65 52 Week Price Range - $53.23 - $34.00 Market Capitalization – 74.5 billion Shares Outstanding – 1.72 billion Revenue 2002 – $25.112 billion Stock Chart: Fundamentals: P/E 2002 – 22x P/E 2003 – 19x Earnings Per Share Estimate: EPS 2003E = $2.28 EPS 2003 Consensus = $2.20 EPS 2004E = $2.45 EPS 2004 Consensus = $2.44 MEMORANDUM TO: Student Managed Investment Fund St. John’s University FROM: Kristopher Cartagena Dion Demetropoulos Tenisha Martin DATE: April 29, 2003 SUBJECT: ANALYSIS OF PEPSICO STOCK AS AN UNDERVALUED SECURITY This is the research report that was requested on January 23, 2003 about PepsiCo stock and whether it should be incorporated in to the Student Managed Investment Fund. The analysis was done primarily through secondary research. The analysis revealed that PepsiCo’s stock is currently undervalued at $42.65, as of April 25, 2003. We used a relative valuation model, and determined PepsiCo’s target price to be $50.65. In addition, we used a multi-stage dividend discount model, and determined...
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...become BASIC and the foundation for Microsoft, which was created as a partnership in 1975. After five years in New Mexico, Microsoft relocated to Bellevue, Washington, in 1990 with BASIC and two other computer languages (COBOL and FORTRAN) in its arsenal. Later that year, IBM began developing its first PC and was in need of an operating system. Microsoft developed the Microsoft disk operating system (MS-DOS) for IBM while two other companies created competing systems. Gate’s determination and persuasion of other software firms to develop programs for MS-DOS made it the default IBM platform. As Microsoft became more successful, Gates realized that he needed help managing the company. His enthusiasm, vision, and hard work were the driving force behind the company's growth, but he recognized the need for professional management. Gates brought in one of his friends from Harvard,...
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...The role of marketing Philosophy behind the marketing efforts of modern businesses is that the company should satisfy the needs of their customers and produce products and services to satisfy those needs. This way, the customers is at the centre of the business. Production concept – The production concept is where a business focuses on creating economies of scale in production and distribution of a product or service. This assumes that customers will purchase lower-priced items, so demand is driven by availability. Examples of this practice can be found in construction suppliers, where construction firms will purchase cheaper building materials to increase their profit margins. Sales concept – this is commonly known as ‘the hard sell’, where a product or service is produced and personal selling and other high-pressure selling techniques are used to convince customers to part with their money. Marketing concept - unlike the alternatives above, the customer at the centre of all decisions before the product or service is developed. This can make business more efficient, by focusing investment on products that customers will need and use rather than investing in products that customers may not buy. SMART objectives * Specific – the objective must be clearly stated and focused * Measureable – in order for the business to see how it is performing against its objectives, it needs to be able to quantify its performance * Achievable – for an objective to be useful...
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...Advertising positioning strategy in the competition between Coca-Cola and Pepsi Cola during 1960s in the USA. To what extent is this important to current marketing strategy? Given Name: LANGQIONG Family Name: ZHANG Tutor: Matthew Group 22 Index Page ntroduction Introduction ntroduction............................................................................................. 3 Section 1: Advertising positioning strategy in competition between Coca-Cola and Pepsi Cola in 1960s in the USA................................ 3 Section 2: Functions of advertising positioning strategy in current market........................................................................................................ 5 2.1 Importance of advertising positioning strategy.......................5 2.2 Evaluation..................................................................................... 6 Conclusion Conclusion...............................................................................................6 List of References.................................................................................... 7 Introduction: On account of dramastic development in economy, only the advertisements which exactly meet the demands of consumers can stimulate their interests, in other words, advertisements may contribute to increase in sales. Furthermore, by building up an unique association with a brand in consumers’ mind via analyzing tis own product as well as competitors’ product and...
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...Pepsi nuts over new nut snack Chaitali Chakravarty, ET TEAM Nov 21, 2001, 10.02pm IST enthused by the profits that fritolay has generated, parent pepsi, is adding more to its snackfood subsidiary. the company is set to roll out a new nut-based snack, nutyumz, nationally. also, plans are afoot to eventually drop lehar from the lehar kurkure brand. sources said that lehar kurkure has been earning a substantial amount for fritolay (it accounts for more than one-third of its total turnover) and it is about time to market it under the kurkure brand alone. sources said that nutyumz will be launched in different flavours. the brand has been innovated for the indian market alone. besides india, mexico is the only other market where pepsi is selling nut-based snacks under a different brand name. in india, nutyumz will be manufactured in the company-owned plant in pune. the fritolay spokesperson confirmed the launch of new brand. sources said pepsi is gung-ho about fritolay as the subsidiary has been making some money, it ended the year 2000 with a rs 4 crore profit, up from rs 3.04 crore earned in the year ending 1999. pepsi's idea is to create new categories to suit indian tastes and pump up the profit figures by at least rs 2 crore by the end of 2002. sources said that after pepsi acquired uncle chipps, it got within its fold an entire constituency. lays and uncle chipps together earn the maximum (around 50 per cent) for fritolay, while cheetos and lehar namkeen are still on the...
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...RED BULL GMBH IN SOFT DRINKS (WORLD) April 2013 SCOPE OF THE REPORT Scope This global profile focuses on the industry trends in soft drinks. Disclaimer All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). 2012 figures are based on part-year estimates. Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres Carbonates 169.5 billion litres Fruit/Vegetable Juice 62.0 billion litres Concentrates 43.7 billion litres © Euromonitor International Bottled Water 192 billion litres Sports and Bottled and Energy Drinks Sports Energy Water 15 billion litres Drinks 205.1 billion 16.2 billion litres Concentrates litres 43 billion litres RTD Tea 30.1 billion litres RTD Coffee 4.5 billion litres SOFT DRINKS: RED BULL GMBH While Red Bull remains...
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...1. Profile the U.S. Market in terms of “Consumer Trends” and the effects of “Competitive Rivalry in the retail sectors”. Identify the specific and general driving forces behind these trends. Due to the credit-crunch many commentators point out that the global consumer mindset is tuned to recession-spending.The main point is that US consumers who used to be very materialistic,now tend to spend less money on their purchases.And there are some consumer trends that support this issue. “The Lipstick Effect” is the phenomenon of the rise of small self-treating on make-up and gadgets when people forego extravagant purchases such as cars and holidays in times of recession. This tendency is all about consumers' sustained need to enjoy consumption and express their identity despite their pressured lives. Overall, consumers may scale down on purchases and live with delayed gratification by saving and investing more in retraining and putting more energy into getting better value. But the definition of value will be different for different products. For instance, consumers will seek the lowest price for products that serve basic needs such as food, whereas in self-treating and small luxuries, the value of feeling indulged is given precedence. The Lipstick Effect endures. Consumers still appear willing to splurge on prestige items. This has led to a huge wave of websites on how to be frugal but also keep up appearances. . Commentators, journalists and bloggers are certainly signalling...
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...Global Marketing, 6e (Keegan/Green) Chapter 1 Introduction to Global Marketing 1) A management team that fails to understand the importance of global marketing risks losing its domestic business to competitors with lower costs, more experience, and better products. Answer: TRUE Diff: 1 Page Ref: 4 AACSB: Reflective Thinking 2) As Wal-Mart expands into Guatemala and Central American countries, it is implementing a market development strategy. Answer: TRUE Diff: 1 Page Ref: 4 AACSB: Reflective Thinking 3) Global marketing may take the form of diversification strategy in which a company creates new products or services for the domestic market. Answer: FALSE Diff: 2 Page Ref: 4 AACSB: Reflective Thinking 4) The perceived value equation can be represented as Value = Price/Benefits. Answer: FALSE Diff: 2 Page Ref: 5 AACSB: Analytic Skills 5) Recently the auto industry is shifting its attention to emerging markets such as India and Africa. Answer: TRUE Diff: 1 Page Ref: 5 AACSB: Reflective Thinking 6) Globalization is presenting significant marketing opportunities for professional sports organizations such as the National Football League and Major League Soccer. Answer: TRUE Diff: 1 Page Ref: 6 AACSB: Reflective Thinking 7) If Nestlé decides not to market biscuits (cookies) in the United States due to competitive reasons, it is considered as a lack of strategic focus and missed opportunity. Answer: FALSE Diff: 2 Page Ref: 7 AACSB:...
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...Global Marketing, 6e (Keegan/Green) Chapter 1 Introduction to Global Marketing 1) A management team that fails to understand the importance of global marketing risks losing its domestic business to competitors with lower costs, more experience, and better products. Answer: TRUE Diff: 1 Page Ref: 4 AACSB: Reflective Thinking 2) As Wal-Mart expands into Guatemala and Central American countries, it is implementing a market development strategy. Answer: TRUE Diff: 1 Page Ref: 4 AACSB: Reflective Thinking 3) Global marketing may take the form of diversification strategy in which a company creates new products or services for the domestic market. Answer: FALSE Diff: 2 Page Ref: 4 AACSB: Reflective Thinking 4) The perceived value equation can be represented as Value = Price/Benefits. Answer: FALSE Diff: 2 Page Ref: 5 AACSB: Analytic Skills 5) Recently the auto industry is shifting its attention to emerging markets such as India and Africa. Answer: TRUE Diff: 1 Page Ref: 5 AACSB: Reflective Thinking 6) Globalization is presenting significant marketing opportunities for professional sports organizations such as the National Football League and Major League Soccer. Answer: TRUE Diff: 1 Page Ref: 6 AACSB: Reflective Thinking 7) If Nestlé decides not to market biscuits (cookies) in the United States due to competitive reasons, it is considered as a lack of strategic focus and missed opportunity. Answer: FALSE Diff: 2 Page Ref: 7 AACSB:...
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