...Virtual Tutorial Task 1 – Pepsi – Introduction. This document will analyse the external marketing environment for Pepsi. It will specifically consider the following factors; Socio-cultural, Technological, Economic, Political/Legal and Ecological, and how each of these may influence the firm now and in the near future. Once analysed, this document will then categorize them according to whether they represent an opportunity or threat to the firm and give recommendations on how the firm could convert threats to opportunities and also how to capitalise on current opportunity. The soft drinks market is a market with an estimated worth of £13,376million, a figure up 4.3% since 2006. The market volume is currently at 14,240million litres, up 0.5% since 2006 (sourced – Source: The BSDA Soft Drinks Report 2010, British Soft Drinks Association, compiled by Zenith International/Key Note - http://www.keynote.co.uk/market-intelligence/view/product/10396/soft-drinks--carbonated-%26-concentrated?medium=html), a figure that suggests demand for soft-drinks is ever increasing. However, following a flurry of negative publicity for sugary drinks, one major factor for the market and Pepsi themselves to consider is the health implications. With sugary drinks being linked as a “root cause” for obesity, importantly, recent legislation has been introduced, for example, limiting advertising to children, a huge lucrative market segment that Pepsi and other companies in the market have traditionally...
Words: 3387 - Pages: 14
...This report is based upon the information from the Harvard business case: “Cola Wars Continue: Coke and Pepsi in the Twenty-First Century”. Both Coca Cola Company and PepsiCo are the largest players in the Carbonated Soft Drinks (CSD) industry. The purpose of this report is to gain insight into the possible strategies that can be applied, in order to expand the overall throat share in the future. History revealed that a highly competitive strategy that was utilized in the past by both companies resulted in a ‘Nash Equilibrium’. Because of this, the report is described from the perspective of both Coca-Cola and Pepsi. The scope of this report covers not only on the increase of overall market share, but also finding new opportunities in unrevealed markets. The analysis is also based upon the eight key concept model. In addition the PEST-analysis and the five forces model of Porter is also utilized to gain insight into the ‘macro-environment’ and ‘meso-environment’ 1. Analysis The eight key concepts analysis is applied to identify the key issues with regard to both Coca-Cola and Pepsi. The outcome of the analysis is utilized to establish the new strategy for both companies. The key issues for each concept are described in this paragraph. Direction The mission and vision of the two companies, described in the case, differ on one major issue. The Coca-Cola Company direction limits its market to a product portfolio of beverage brands, whereas PepsiCo does not only focus...
Words: 3313 - Pages: 14
...everything, space aged snacks, gelatin, bacon, TV dinner, and low or no carbs (Ronca, 1998-2014). These are just a few of the different ones over the years. In the early 1990’s there was a marketing fad offering clarity with purity. Some of the companies involved just to name a few are Miller Brewing Company (March 1993), Coors Brewing Company (1992), Procter and Gamble and Colgate-Palmolive (Failed Product Report: Crystal Pepsi, 2014). Pepsi Company (PepsiCo) was part of the marketing fad when it released Crystal Pepsi. Crystal Pepsi was colorless cola with 100% natural flavor with no preservations and no caffeine (Failed Product Report: Crystal Pepsi, 2014). It had a lighter tasted than regular Pepsi. The cola came in regular and diet. Pepsi remove the cameral color out of the cola in doing so it made consumer think that it was healthier to drink. It started for the product begin in the early 1990’s. Before it released in 1992 Pepsi had test markets in Denver, Sacramento, Dallas and Providence with a positive response (Failed Product Report: Crystal Pepsi, 2014). Test markets were hold for nine months in these cities. It launch...
Words: 1228 - Pages: 5
...Pepsi is multinational brand with choices from juices, water, and several carbonated drinks. The carbonated industry is not only market that Pepsi has a stake in.. Pepsi offers beverages for children and adults. If you are looking for a refreshing and appealing drink with options, then Pepsi is the brand for you. Pepsi is ranked number two in the beverage industry only behind Coke. Pepsi is offering its products as light and refreshing alternative to Coke products. The product is mainly focused on the younger market in beverage industry, but also relaying the message of youth to the older generation. Pepsi offers itself to having users, who are forward thinking than those who choose the competition over Pepsi. Pepsi seeks out the market of those who are action oriented, looking to change the world. Pepsi has maintained from the start to capture the youth market. Pepsi campaign have always and continue to about making a mark and proving its real benefit among young people and cool people. The consumers are looking for products, that are not only quenching their thirst, but in some cases they are looking for healthy options, that Pepsi does provide. The main competition to Pepsi is Coke, but there are others on the hills of both companies. Nestle, RC Cola and organic choices are competition for Pepsi. The beverage market is not just for carbonated drinks, but water, juice and sports drinks. The need for more healthy options has also created new competitors to the beverage...
Words: 615 - Pages: 3
...« Previous Post - Next Post » Coke vs. Pepsi The Dilemma: You’re at a restaurant. You’ve specifically asked for a Coke when you get handed a Pepsi, or vice versa. You tell the waiter what you requested, and he gives you the “What’s the difference?” shrug. Perhaps it’s time you laid it on him. People You Can Impress: “Impressed” probably doesn’t accurately reflect the aforementioned waiter’s likely response. The Quick Trick: If you drink them side by side, Pepsi is the sweeter of the two (which is why people tend to prefer Pepsi in the Pepsi Challenge). The Explanation: Although the fantastic ad campaigns run by both companies would have you think otherwise, the soft drinks’ similarities are pretty striking. For starters, Pepsi and Coke were both the brainchildren of Southern pharmacists. Coca-Cola was invented by Atlantan Dr. John Pemberton in 1886. And yes, there was originally a concentration of cocaine in the soda, but it was reduced to a tiny amount (1/400th of a grain per ounce) by 1902 and removed altogether by 1930. Th e Coca-Cola Company changed hands a few times, and after Prohibition Coca-Cola was sold to the Woodruff family for $25 million. Pepsi, on the other hand, was born a few years after Coke. In 1893, pharmacist Caleb Bradham began experimenting withvarious drink mixtures in New Bern, N.C. His 1898 concoction, then known by the creative name “Brad’s Drink,” became an overnight success, and “Doc” Bradham began selling his “Exhilarating, Invigorating...
Words: 4500 - Pages: 18
...Global Business Organisations D4X9 35 Table of contents I Introduction…………………………………………………………4 II Basic information about PepsiCo…………………………………4 2.1 Background PepsiCo……………………………………………..4 2.2 First step for entering international market………………………5 III Development of PepsiCo…………………………………………5 3.1 Business structure of PepsiCo…………………………………..5 3.2 Organization’s expansion ……………………………………….6 IV Products of PepsiCo………………………………………………6 4.1 Process of bringing a new product to market……………………6 4.2 Production Unit and its global position………………………….7 4.3 Influence of local market criteria ……………………………….8 4.4 Pricing and distribution policies and logistics…………………..8 4.5 Marketing of products…………………………………………..10 V Personnel of PepsiCo…………………………………………..…10 5.1 Recruitment policy………………………………………………10 5.2 Global salaries…………………………………………………..11 5.3 Labor relations…………………………………………………..11 VI Finance of company……………………………………………..13 6.1 Financial structure ………………………………………………13 6.2 Exchange rate ……………………………………………………13 6.3 Annual accounts …………………………………………………13 6.4 Influences of Financial information……………………………..13 VII Conclusion……………………………………………………….15 VIII Reference ……………………………………………………….16 IX Appendix……………………………………………………………17 Appendix I…………………………………………………………….17 Appendix II………………………………………………………….18 I Introduction The aim of this report is for outcome two to outcome five of Global business organization. This...
Words: 3568 - Pages: 15
...COMPANY PROFILE CORPORATE OVERVIEW Pepsi co was incorporated in the year 1919 and was re-incorporated in North Carolina in 1986. Pepsi is engaged in beverage and snack food business. PepsiCo is a multinational company and it is most successful consumer product company in the world with annual revenue of $ 20 billion and about 1, 43,000 employees. Some of PepsiCo’s brand names are nearly 100 years old. PepsiCo has achieved a leadership position in each of the two major packaged good business i.e. beverage and snack chips. PepsiCo the conglomerate king of soft drink has its wide range of soft drinks products available in every book & corner of the world. THE INDIAN STORY Pepsi & Co came to India as food processing unit, Punjab during the year 1986-87 head office Pepsi food unit situated in Delhi, employees are more than 2500 people. Pepsi co today is the leader in the cola and orange segments of beverages in India and enjoys leadership in soft drinks in many parts of the country. It focuses on execution excellence, strengthen, bottle network, reach and penetration in rural and semi-urban areas and customer focused marketing areas. PEPSI INDIA FOODS BEVERAGES EMU WOMU NOMU SOMU 1. PEPSI FOODS Pepsi manufacture the food product like LAYS, KURE KURE etc. 2. PEPSI BEVERAGES Pepsi beverages manufacturing the soft drinks with concentrates flavor. PEPSI INDIA MARKETING: Distribute soft drink...
Words: 4433 - Pages: 18
...Jacqueline Franklin- Distribution Recommendations. Pepsi-Cola had a number of successes and serious competition over the years. Despite the challenges in the past, Pepsi-Cola was able to find a market in the United Kingdom (UK). Now that the UK market is changing towards more health conscious consumers, diet products seems to be the next phase of the market and growing fast, Peter Kendall the regional vice president of northern Europe of Pepsi-Cola International, is faced with the possibility that Pepsi’s rival Coca-Cola would launched its new product, diet Coke in the UK market and gain upper market shares. It is quite possible that if Peter Kendall doesn’t have a strategic plan on how to get Pepsi out to the consumers, the company could lose grounds to Coca-Cola. With limited resources and in an unfamiliar territory, I would recommend as a long term solid plan that Peter Kendall find beverage companies in UK who are now successful in distribution of their product and form alliance with them to distribute Pepsi Challenge to the targeted market before Coca-Cola introduced Diet Coke in the UK. A positive for Pepsi would be to partner with the “multiples” since the chain accounts for 53% of grocery volume, and because of the large chain, they can dictate shelf pace which is forcing Cadbury-Schweppes out of the grocery competition. Mr. Kendall should adopt the US strategy Pepsi used and use franchise systems to expand distribution with minimal company investment. He should give...
Words: 413 - Pages: 2
...[pic] Managing Multinational Corp. Pepsi in UK Company History PepsiCo’s beverage business was founded at the turn of the century by Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola. Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products – including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist and Mug brands – account for nearly one-third of total soft drink sales in the United States, a consumer market totaling about $60 billion. Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina bottled water, Fruitworks, and All Sport. Pepsi-Cola’s mission statement is to be the world's premier consumer product’s company focused on convenient foods and beverages. They seek to produce healthy financial rewards to investors as they provide opportunities for growth and enrichment to their employees, their business partners, and the communities in which they operate. And in everything they do they strive for honesty, fairness, and integrity. Pepsi-Cola began selling its products internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. In addition to brands marketed in the United States, major products include Mirinda and Pepsi Max. Pepsi-Cola North America includes the United States and Canada. Key international markets include Argentina, Brazil, China, India, Mexico, Philippines, Saudi Arabia, Spain, Thailand...
Words: 2534 - Pages: 11
...The Coca-cola is a carbonated soft drink or beverage which was originally invented or intended as a patent tonic medicine in 1886. It has served not only as a beverage but also as a cure for many diseases, including morphine addition, dyspepsia, neurasthenia, headache and impotence.Coca-cola or previously known as Yum Yum and Koke, is today the biggest beverage maker to the world for the last couple of years.Coca Cola as a brand has been distinct to such an extent that it houses across 80 brands and a number of variants under the very brand name. Coke as it is called today has been named as the most valuable brand now for the last 12 years. It has developed to be successful with more than 1.4 billion beverage serving sold each day. Some key aspects to look on Coke are as follows. Key aspects to look upon:- The demand The supply The elasticity of the product The market for the product Demand: Being the 4th the most admired brand around the world, the demand for this beverage has been increasing day by day and year by year to the very extent. The demand being so much is because it is found in different variants (100ml, 375ml, 500ml, can, 1litre,2litre,etc…) satisfying the needs and the preferences of all types of consumers. One of the Surveys on Public presents that the strong taste of Coke makes 70% of youngsters,and adult males refresh and feel current though only 40% of ladies prefer the Coke.Coca-cola as a brand is also elastic priced attracting all forms...
Words: 864 - Pages: 4
...Case Two: Coke and Pepsi learn to compete in India 1) The political environment has played key role in the following ways: Indian government viewed as unfriendly to foreign investors. Outside investment have been allowed only in high-tech sectors and was almost entirely prohibited in consumer goods sectors. If an item could be obtained anywhere else within the country, imports of similar items were forbidden. This gave Indian consumers have little choice of products or brands and no guarantees of quality or reliability. Also, Indian Laws, the government mandated that Pepsi’s products be promoted under the “Lehar Pepsi” name. For Coca-Cola, they attempted to enter into Indian market by joining with Parle and became “Coca-Cola India”. Some of these things may have been anticipated, especially the corruption within Indian government. As far as the contamination issues goes, that might not have been so easy to anticipate. Both companies held their own when trying to prove their products were within safe limits compared to other food products. They could have developments in political arena; Coke could agree to start new bottling plants instead of buying out Parle, and, therefore, wouldn’t agree to sell 49% of their equity. 2) Coca-Cola entered the market again a few years after Pepsi entered. While Coke's application was being denied, Pepsi's was being approved which gave them a head start in the market. Although it would seem that Pepsi would benefit from getting a head...
Words: 756 - Pages: 4
...Pepsi Marketing Volume 1 About Current Volume Archives Submission Editorial Board e-Vision Spring 2013 Cultural Imperialism and Globalization in Pepsi Marketing by Justin Grandinetti The increased speed and flow of information brought about by technology has influenced a massive global culture shift. Two consequences of this increased information exchange are cultural imperialism and globalization. Cultural imperialism is a heavily debated concept that “refers to how an ideology, a politics, or a way of life is exported into other territories through the export of cultural products” (Struken and Cartwright 397). The related concept of globalization “describes the progression of forces that have accelerated the interdependence of peoples to the point at which we can speak of a true world community” (Struken and Cartwright 405). A driving force of both cultural imperialism and globalization are major corporations, many of which are based in the United States. Brands like Pepsi are now known worldwide and not simply confined to one particular country or the western sphere. These global brands can be viewed “as homogenizing forces, selling the same tastes and styles throughout diverse cultures” (Stuken and Cartwright 402). Conversely, viewers in other countries are free to “appropriate what they see to make new meanings, meanings that may be not just different from but even oppositional to the ideologies” of these global advertising campaigns. By analyzing three recent aspects...
Words: 2538 - Pages: 11
...Demand of Pepsi Julliet Indiana Wesleyan University February 21, 2012 Abstract Pepsi is a popular cola brand that is available for purchase at many convenient stores, grocery stores, department store, vending machines and restaurants. It is in an Oligopoly industry. One market place can have a stronger market share than another market place. There are several determinants of demand which can influence the shift in the demand curve left or right or decrease or increase in the demand. Demand of Pepsi Pepsi cola is a cola/soda-pop beverage brand from PepsiCo. PepisCo is known as an Oligopolistic industry. There aren’t that many firms the market that Pepsi cola is in. Pepsi cola first made a public appearance in the 1890s as “Brad’s Drink”. It later became known as Pepsi. It was trademarked on June 16, 1903 and its first logo in 1905. Pepsi made a world appearance in 1909 with the first celebrity endorser, Barney Oldfield. Due to the high price of sugar, which was in high demand, during WW1, Pepsi Cola Company went into bankruptcy. It bounced back in 1936 and started to sell a 12-ounce bottle for 10 cents. Because price is a main determinant of demand, the price was then drop to 5 cents. This price boosted the sales for the company. The company started to market to African Americans. The strategy was done to help market to others who can enjoy and contribute to the brand and the new popularity of Pepsi. In 1975, Pepsi was voted most favorite beating out its rival Coca-Cola...
Words: 1218 - Pages: 5
...------------------------------------------------- Pepsi in Egypt Date: 3/14/15 Over the past three decades a fundamental change has been occurring in the global economy. Barriers to the free flow of coming down, indicating that national goods and services have been economics are becoming more integrated into single global market. In the global market companies are able to produce their products and introduce them to other cultures or countries. As a result of this change in the economy, material culture is starting to look similar over the world. One example of material culture is food or drinks. Pepsi would be one of the famous drinks that the world shares. Pepsi is a soft drink that was first introduced as "Brad's Drink" in New Bern, North Carolina, in 1883 by Caleb Bradham, who made it at his pharmacy where the drink was sold.*2 Pepsi nowadays, is produce by PepsiCo, Inc. PepsiCo, Inc. is one of the world's top consumer product companies with many of the world's most important and valuable trademarks. Its Pepsi-Cola Company division is the second largest soft drink business in the world, with a 21 percent share of the carbonated soft drink market worldwide and 29 percent in the United States. Three of its brands, Pepsi-Cola, Mountain Dew and Diet Pepsi&mdashe among the top ten soft drinks in the US market.*1The company’s headquarters are in Purchase, New York. ...
Words: 767 - Pages: 4
...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 best marketing strategies and business practices. PepsiCo has faced many challenges in its history. It has had its toughest competition from its rival Coca-Cola. It also faced other challenges...
Words: 792 - Pages: 4
