...Grade Received - "A" PART 1: Research Background Research the selected brand using both its Web site and articles in the library’s full-text databases, and address the following: What does the brand mean in today’s market? How has it evolved over time? What is the target market(s) for the brand? Has that changed from the past? How is the competition positioned? This section of the assignment requires the use of articles from the library’s full-text databases. Articles are found in periodicals. These are not to be confused with eBooks or reference books. PART 2: Application Marketing is not all serious research involving scholarly, statistical, and practitioner resources; it is also about trends, buzz, and pop culture of the day. Actors, models, musicians, athletes, and reality stars of the moment are hounded by the press. Their lives unfold in the media, and many are seen wearing, carrying, eating, or driving a particular brand. For this section, you may research the following in any media outlet: What celebrities endorse your brand? Why are they a good fit? To what target market do they connect? What other famous characters could be connected to your brand? Explain why. What about the competition? What kind of endorsers do they use? Branding Introduction The brand-name of products has become an important factor over time. It can be the deciding factor on whether or not an individual will purchase their product or services based off of the brand-name...
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...Arnie Greenberg, Leonard Marsh, and Hyman Golden had been friends since high school. In 1972, they went into business selling all-natural apple juice to health food stores in Greenwich Village under the brand name Snapple. By the late 1980s, their brand had achieved near-cult status on both coasts of the United States, with its iced teas particularly in demand. It had taken 15 years, they said, to become an overnight success. In 1994 Quaker bought Snapple for $1.7 billion. The vision had been to combine Snapple with Gatorade, an earlier and very successful acquisition, to form a powerful beverage business unit. Snapple, however, did not thrive: sales fell in each of the next four years, and in 1997 Quaker despaired and sold the brand to Triarc Beverages for $300 million. In the fallout that followed, both Quaker’s chairman of 16 years and its president resigned. Mike Weinstein, CEO of Triarc Beverage Group, reflected on the acquisition. “At $300 million, Snapple is not a steal by any means. It’s in decline, and when that happens to a brand it’s seldom that it comes back. We’re in a fashion business here, and when your imagery isn’t fashionable, often that’s the end. But we’ve talked to a lot of consumers and we did a lot of qualitative research, and we’ve decided that in this case the brand still has inherent strength. People feel good about it. It will respond to the right marketing stuff.” 1972–1986: The Origins of the Brand Arnie Greenberg’s family ran a sardine and...
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...Valuation and Assessment for the PepsiCo Part1. Macro economic factors and Industry Analysis In recent year, PepsiCo was in the extraordinary complicated economic environment. Economic environment can have a significant impact on PepsiCo. The economic factors such as Gross Domestic Product (GDP), interest rates, high inflation rate and commodity price may affect the PepsiCo current and future performance in large extend. First, the increase of GDP affects the sales of PepsiCo. Pepsi is the world second largest food and beverage business, which sold products in more than 200 countries. In America, the GDP presents a slowly but stable increasing trend, the GDP growth rates were affected, and also influenced the sales of Pepsi America. According to the table 1, it can be seen that the core net revenue has increased 14 percent between 2010 and 2011. In addition, it was estimated that approximately 47 percent net revenue comes from outside the United States. Although most developing countries were suffered from global financial crisis, the GDP growth rates still keep a robust trend. For example, in China, the GDP growth was around 9.5 percent during 2010 to 2012. Therefore, PepsiCo in 2010, the revenue outside the America increased approximately 30 percent, which considerable above the global real GDP growth rate. Secondly, the increase of inflation will affect the profits of PepsiCo. The whole world’s inflation rates have increased in recent year and will continually rise...
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...Opportunities for Action in Consumer Markets Trading Up: The New Luxury and Why We Need It Trading Up: The New Luxury and Why We Need It In the history of man, there have always been goods reserved for the upper classes. In ancient Rome, the elite built lavish marble baths for entertaining friends and allies, while the masses waited in line at public baths. In late-eighteenth-century France, the aristocracy turned to saddle maker Hermès for the perfect seat, while commoners had to walk through wet and muddy streets. But today we are witnessing a different phenomenon: the democratization of luxury. We define it as middlemarket consumers selectively trading up to higher levels of quality, taste, and aspiration. The democratization of luxury is occurring across a surprisingly broad set of categories, and it is destabilizing competition, creating new winners and losers, and offering new rules for brand strategy. Already, this force has transformed a score of markets. (See Exhibit 1.) Many more categories are ripe for the taking. The question for established marketers is, Who will be first to bring the new luxury to my category? To understand this movement, you must first appreciate the differences between the new luxury and the old, as well as the powerful emotional and economic forces behind consumers’ propensity to trade up and seek quality. It’s Not Your Father’s Luxury Old luxury is expensive. Only the really rich—a small segment, typically over 50 and conservative—can...
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... According to a 1996 fiscal report in the Wall Street Journal, venerable Chicago-based Quaker Oats Company was in the midst of a financial downturn caused by serious planning snafus. In particular, Quaker had lost $47.8 million in the second quarter of 1995, largely because of restructuring charges necessitated by its Snapple division’s poor performance and the company’s unsuccessful efforts to improve overseas sales. Quaker did not expect 1996 to be any better. Throughout the 1900’s Quaker Oats was in many businesses including Aunt Jemima pancake flour, Cap’n Crunch cereals, Fisher-Price toys, restaurants and candies. Until 1990 Quaker was still adding new products – everything from clothiers and opticians to Stokely-Van Camp, Gatorade, and Gaines dog food. A prime acquisition was Anderson Clayton & Company, a Houston food-products company that boasted such popular brands as Seven Seas salad dressings, Chiffon margarine, and Igloo ice chests. Then a downturn in 1990 convinced management to refocus the company on food. Quaker implemented this new strategy by increasing its advertising budget, reformulating its dog foods, and launching new products. Determined to emphasize its core food...
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...Abstract Gatorade is an international sports energy drink brand owned by PepsiCo that was founded in Florida. The company has researched new innovative ways to promote hydration and nutrition among athletes across the globe. Gatorade was founded by Dr. Robert Cade and Dr. Dana Shires in 1965 and has been a leader in the sports energy drink industry with a significant amount of market share. Currently, Gatorade is the official sports drink of the NFL, NBA, PGA, and many other athletic organizations. As the first mover in the sports energy drink market, Gatorade has set itself apart from rivals like PowerAde and Vitamin Water by creating value for customers by establishing business relationships, conducting scientific research, and product innovation. The Gatorade Company is part of QTG (Quaker, Tropicana, Gatorade) and has been a subdivision of PepsiCo since 1998. When Quaker Oats acquired the company in 1983, it was the largest energy drink company in the world with market share of 97% (Rovell, 2006). The company’s product line focuses on rehydration, recovery, energy, and sports performance. Gatorade is considered an innovative product as it was the first mover in the sports energy drink market. Prior to Gatorade entering this market, water was the only other source for hydration among athletes. This paper will analyze how Gatorade aims to achieve the five elements of strategy by focusing on product, place, and promotion. Gatorade was founded by Dr. Robert Cade and Dr...
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...Creative and Touch Point Brief: GATORADE Client: _________________ Product/ Service: ____________ Agency Group: __________ Date: _____________ 1. Brief Background that leads to the key issue (market size, market growth, share position, share movement, brand health) Gatorade is an energy drink that was developed in 1965 at university of Florida for students- athletics. It was manufactured by Pepsi co and was especially known for the line of sport drinks and hydrated. Gatorade is distributed around the world but we will look over the market in United States. During the 1965 to 2008, Gatorade positioned itself as the Gatorade thirst quencher, which was then rebranded in 2010 to be Gatorade G series. Gatorade sale is US $2.6 billion with the market share of 49 percent. Total sport drink market size is $5.3 billion. So currently, Gatorade has higher share than its competitors, which are Powerade and Red bull | 2. Why do we want new IMC* campaign? What is the key issue to be solved? Gatorade wants the new IMC right now because Gatorade wants to maintain its market share as well as increasing the revenue. Due to the price of Gatorade, people might wonder if it’s worth paying for and is it really effective and generate benefit to consumers. Even though IMC campaign can communicate their message to the consumers, but if the company want to dominate niche market of an active lifestyle, Gatorade need to come up with the new IMC campaign to capture that...
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...Business Model and Strategic Plan III, Balance Scorecard and Communication Plan Abstract This paper discussed issues and strategies of implementing a Balanced Scorecard in order to facilitate strategic planning in PepsiCo’s Mountain Dew Energy drink company KickStart. PepsiCo has been using the Balanced Scorecard in order to manage its performance measures for the implementing of the Balanced Scorecard to try and select the appropriate performance measures for the area’s listed below; • Growth in developing in the Energy drink new product and emerging markets • Financial perspective---how do we look to stakeholders • Customer perspective---how do our customers se us? • Internal business processes—what must we excel at? • Innovation and learning----how can we continue to improve and create value? Other challenges include collecting the desired information and systematizing its production analysis. Understanding what the customer wants and getting feed back on the flavors, the taste, and the coconut waters affect on the healthier side of the choice. Background and Context PepsiCo’s sister brand Mountain dew has created an off brand for young coffee drinkers of America called Millennia’s. The Challenges of implementing performance for the new product taste is going to be difficult without getting the target audience approval. PepsiCo’s motto is to make sure when it introduces a new product it is consistent with “The performance with Purpose”. The performance...
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...believe that “water is not enough”. In 1985 Gatorade Sports Science Institute were able to convince the public that thirst is an unreliable indicator of dehydration to help and try to promote their products. And the experts who made this information were most likely supported or sponsored by the sports drinks companies. But they have also proven themselves correct by supporting with evidence about hyponatremia. Hyponatremia is a drop in a person’s serum sodium levels and has had a bad effect on marathon runners causing death and life threatening illnesses, and for a fact the excess consumption of water can be a cause to hyponatremia. Using this evidence an experiment was conducted to compare if sports drinks also caused hyponatremia in athletes and concluded that it does not making it a better alternative than water for these marathon runners. We also have to distinguish between professional athletes and other people. It has been claimed by the European Food Safety Authority that sports drinks hydrate better than water and can help maintain performance in endurance workouts and exercises like marathons, but this does not apply to the people that only exercise for a few times a week. So people are not going to study or conduct an experiment about this topic on a person that does not exercise a lot daily because you wouldn’t be able to obtain accurate data about if the sports drinks affected the person or not. Companies like Gatorade have been able...
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...Diversification Strategies Diversification strategies are used to expand firms' operations by adding markets, products, services, or stages of production to the existing business. The purpose of diversification is to allow the company to enter lines of business that are different from current operations. When the new venture is strategically related to the existing lines of business, it is called concentric diversification. Conglomerate diversification occurs when there is no common thread of strategic fit or relationship between the new and old lines of business; the new and old businesses are unrelated. Diversification is a market strategy, which is about expanding the business of the company in some way. It stretches from adding new products or services, which in some way are related to the corporation’s previous products or services on the market, too establish oneself with new, on a from the corporation’s point of view, completely unknown market (Grant). Although the idea of diversification as a strategy for growth and risk reduction is rather old, it was only after 1950 it became popular to let the corporation expand over different markets and product lines. This growth strategy continued to attract more and more companies, until it culminated in the 1970s when it became popular to build conglomerates, that is, companies expanding by adding more and more unrelated business to the corporation, often via acquisitions. In the following decades, the...
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...Tropicana Products, the largest marketer of branded juices. Throughout 1999, PepsiCo was closely tracking several potential strategic acquisitions. In the fall of 2000, it appeared that the right moment for an equity-financed acquisition had arrived. At this time, PepsiCo management decided to initiate a confidential discussion with The Quaker Oats Company about a potential business combination. Quaker Foods North America manufactures, markets, and sells ready-to-eat cereals, hot cereals, flavored rice and pasta products, mixes and syrups, hominy grits and cornmeal in North America. Products manufactured and sold include Quaker oatmeal, Cap'n Crunch, and Life cereals, Rice-A-Roni products, Aunt Jemima mixes and syrups, and Quaker grits. Gatorade, a key brand in Quaker’s portfolio, had long been on PepsiCo’s wish list. On October 5, 2000, an investment-banking team from Merrill Lynch met with the top executives of PepsiCo to discuss a possible business combination between PepsiCo and Quaker Oats. The goals of the meeting were: • To assess the value of Quaker Oats’ businesses; • To estimate potential synergies associated with a Pepsi-Quaker merger; and • To come up with an effective negotiation strategy. PepsiCo executives were confident that Quaker’s beverage and snack food business could contribute to Pepsi’s...
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...COMPANY PROFILE PepsiCo is an American company founded in 1898. It was founded by a pharmacist Caleb D. Bradham. It was named PepsiCo in 1903. PepsiCo is one of the top consumer product companies in the world and it is also one of the most famous soft drink companies. Currently PepsiCo owns more than 21% share of soft drink market world wide and has over 30% share in United states alone. Pepsi has many brands in soft drinks alone namely mountain dew, diet pepsi, mirinda etc. Also pepsi has expanded its reach to other products like quaker oats, Tropicana fruit juice, lays potato chips, cheetos, Gatorade etc. One of the Pepsi’s popular product was its ‘ Diet Pepsi’. It was introduced in 1964. Its main highlight was that it was a sugar free drink making it available to all larger section people. It had zero calories and also very less sugar content it and was an instant hit among the youth. PepsiCo is a leading company in soft drinks, snacks and foods and beverages. It has a revenue of more than 39 billion dollars and has employee strength of more than 1,85,000 people. PepsiCo company consist of mainly 3 companies. PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), and PepsiCo International (PI). PepsiCo’s products are one of the most recognized products in today’s world. PepsiCo’s increase in success is mainly due to high standard of performance, commitment, determination and hard work of each and every member of the PepsiCo family. Pepsi also follows one of the...
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...company to another comes from financial statements and then those numbers are broken down into analysis and ratios. Once the ratios are calculated then the investor can decipher is the company is worth investing in. The information gathered is from the attached financial statements of both companies for the year 2005. Below is a small description of the two companies before comparing them. PepsiCo manufactures or use contract manufacturers for their products. This company markets and sells a variety of salty, sweet and grain-based snacks, carbonated and non-carbonated beverages, and foods through North American and international business divisions (Navigator). Within PepsiCo one can find them merged with Frito-Lay, Tropicana, Quaker, and Gatorade. Coca-Cola manufactures carbonated and non-carbonated beverages. New beverages joined Coca-Cola’s line up, including Minute Maid, Powerade, and Dasani bottled water. Coca-Cola is throughout Northern American and international business divisions. Ratio analysis expresses the relationship among selected items of financial statement data. A ratio expresses the mathematical relationship between one quantity and another. The relationship is expressed in terms of a percentage, a rate, or a simple proportion. To analyze the primary financial statements, an individual or group can use ratios to evaluate liquidity, profitability, and solvency (Navigator). Liquidity ratios measure short-term ability of the company to pay its maturing obligations...
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...United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo is a world leader in convenient foods and beverages, with revenues of about $25 billion and over 142,000 employees. The company consists of the snack business of Frito-Lay North America and the beverage and food businesses of PepsiCo Beverages and Foods, which includes PepsiCo Beverages North America (Pepsi-Cola North America and Gatorade/Tropicana North America) and Quaker Foods North America. PepsiCo International includes the snack businesses of Frito-Lay International and beverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCo’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people. Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And...
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...| 130 | - | Total fat(g) | 0 | 0 | 0 | 0 | Sodium(mg) | 110 | 5 | 270 | 11 | Total carbs(g) | 14 | 5 | 34 | 11 | Sugars(g) | 14 | - | 34 | - | Protein(g) | 0 | - | 0 | - | Not a significant source of other nutrients. *Percent Daily Values (DV) are based on a 2,000 calorie diet. Calorie and nutrient values are rounded as required by the Food & Drug Administration. This can produce irregularities among sizes. More info: Per Container Per Serving | 250ml | 500ml | % Juice | 0 | 0 | Caffeine (mg) | 0 | 0 | Potassium (mg) | 30 | 75 | Product View: Idea Generation We primarily got this idea from the energy or sports drink GATORADE which is available in different fruit flavors and many other flavors. Basically we combined the idea of manufacturing an energy drink and the idea of GATORADE then came up with this new idea. Feasibility Test Product feasibility: Before producing any product we need to...
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