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PepsiCo management and marketing

Paper Type: Free Essay Subject: Business
Wordcount: 3179 words Published: 11th May 2017

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Just before the start of the twentieth century would allow pharmacists as a means of raising soda indigestion (Martin, 1962). Since then, the soda became a delight for young and old. An individual who has followed soda to survive for over a hundred years is Pepsi. Pepsi has become a global product that many people around the world eat. Pepsi has been based on the finding of new markets, especially in foreign countries. However, Coca-Cola has been more successful in foreign territory. For this reason, how could Pepsi rival Coca-Cola in sales? Using a SWOT analysis is a good way to analyze what Pepsi’s strengths, weaknesses, advantages, disadvantages, and all are potential threats. Another way to analyze the position of Pepsi against Coca-Cola is to evaluate how the management team is designed. How does the people of Pepsi in the company and others in other countries is the key to whether Pepsi has an advantage over Coca-Cola.

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A force that Pepsi is that they are a mark of strong base. Pepsi has been around for over a hundred years and are considered a trusted company. Over the years, Pepsi has continued to search, because it gave high priority to the implementation of value to consumers. They sent this via close attention to your marketing efforts. Thanks to television commercials alone Pepsi continues to show the world that have a high priority on customer preferences and tastes. This is particularly relevant to the current trend that Americans have on their health. As a result Pepsi has expanded its product range with products such as Pepsi and Diet Pepsi caffeine free. They have also developed a new range of water products for the health conscious (Pepsi Story, 2010). Includes Aquafina water, sparkling flavored to appeal to those who do not like the taste of water.

Recognizing weaknesses in possession of Pepsi is an important way to positively critique of the strengths. For example, because of the health craze is moving away from consumer products firm. There have been many claims that even diet sodas are bad for health and promotes obesity. team leader Pepsi brainstorming how to find a way to fight these ideas change with the creation of new and innovative ways to go with the changing times. As a result, they invented the idea of ​​Aquafina. And they continue to contribute their ideas they come up with to make choices, such as by offering Aquafina flavored water. E ‘approved and have the ability to accept failure, it is important to popular belief. For example, it became known that many of the bottled water sold in stores and got the tap. Pepsi made the recognition and stated that they had to change the references.

A recommendation for Pepsi that would invest in a kind of vitamin water that would be available through fountain drinks at fast food restaurants more important. The only option available now, either gas or water in a bottle. Many consumers are bored with water or soda. Vitamin Water is a new way for young people to generate profits while consumers’ needs. Therefore, it would be good to see healthier options. When people see that Pepsi is more involved with the epidemic of obesity, more people will be loyal to Pepsi. That’s because it would show that Pepsi is committed to the community, not only to take advantage of harming others. Therefore, it would put Pepsi in a positive light so that more people prefer Coca-Cola. In addition, Coca-Cola currently controls fast-food sales in the industry. Restaurants have recently received bad publicity for the service and food less healthy.

Another weakness I found is that Pepsi is mainly distributed in the United States, Canada and Mexico (Tollison, Kaplan, Higgins, 1992). Most of their profits come from there. This is a bad thing because the Coca-Cola is also important in these countries. However, Pepsi has sold more Coca-Cola sales of food (Tollison, Kaplan, Higgins, 1992). The recommendation that I have a Pepsi began to focus on distribution in other countries, Coca-Cola is not strong in, also, they should stop franchising in countries that lack of cooperation and greater focus on the distribution of countries that is working with Pepsi. Spend time in groups of research and development and marketing in these countries can be useful. Therefore, advertising in these countries had a higher consumption is a good start.

Pepsi management has done a good job that comes with many growth opportunities. Pepsi executives must be dynamic to cope with the changing trends of Pepsi. Pepsi One advantage is that they have always taken the lead in developing new products. They have not had any success in developing a unique product. Therefore, over the years have added to its product line. Some of the important changes that took place was begun in the 1950’s. But, over time, Pepsi has begun to add other products at a rapid pace. For example, in 1964, when Mountain Dew came to him, many more items added to the range of products. With this new product is launched a new drink Slice (Pepsi Story, 2010). Pepsi is constantly seeking new and innovative ways to attract a broader base of consumers. For example, Pepsi-Cola came out with the new version of the original Pepsi.

In addition to growth in product lines Pepsi began to merge with other reputable companies. In 1965, merged with Pepsi, Frito-Lay, Inc. merger with Frito-Lay, Inc. was one of their most profitable investments to date (Pepsi Story, 2010). By training, they decided to change its name to PepsiCo, Inc. To maintain the increasing volume of customers necessary to continue to sell Pepsi knew they had to keep the merger or acquisition of other companies in the food industry. In 1990, Pepsi partnerships with other companies. In 1991, the Company partnered with Lipton and Lipton came out with Lively. But growth does not stop there. After teaming up with Starbuck and products manufactured with them. These last two mergers was very important because Pepsi was expanding outside the soft drink industry in the snack food industry. Pepsi merged with Quaker Oats Company in 2001.

Another way to expand was to continue to flow into other well-known companies to cut costs. Working with Yahoo helped develop technologically. As a result, Pepsi now has its own website called PepsiStuff.com. Working with Apple Computer, is a great success, because they use iTunes as a means to promote their products, give away sweepstakes. They also collaborated with the world of sports giants like Major League Baseball, Major League Soccer and the National Football League (Pepsi Story, 2010).

Coca-Cola was a threat to Pepsi from the beginning. Both are attached. However, Coca-Cola was able to get a firm grip on the market since the beginning of soda (Martin, 1962). One issue that will face most likely to Pepsi in the future is the way to enter the market in countries where Coca-Cola already has a strong market. Currently, most prescriptions for Pepsi is concentrated in North America. Even in North America Coca-Cola has had better sales of Pepsi (Allen, 1994). One solution is to let a little Coca-Cola dominated the market and start selling on the countries in which Coca-Cola was not yet a strong market like India and China. This could be beneficial for Pepsi, and that will allow consumers increasingly discover the opportunity to Pepsi products, without the intervention of the Coca-Cola. Therefore, allowing Pepsi to acquire a positive growth of foreign markets.

A recommendation to the growing threat from Coca-Cola is to carefully analyze consumer demand by focusing on market research. For example, when Pepsi used market research in 1970 revealed that consumers prefer large bottles. In response to information found Pepsi have increased their bottle sizes. They went to work immediately to increase the size of bottle for 32 oz bottles and 64 packs oz (Pepsi Story, 2010). Pepsi has been good about responding to customer needs and wants. Therefore continue to analyze the evolution of consumer wants and needs are important. Young people seem more interested in sports drinks as their favorite athletes. While the older generation is more sodas plans health conscious and prefer water and products. Such information is important because it helps managers make informed decisions at the top of what their next move should be.

Pepsi and Coca-Cola have similar interests and customer base. Therefore, it is imperative to do something different to get an advantage in the war of soda. Pepsi had to develop a brilliant team of young professionals around the world to find new and creative ways to provide greater consumer base. A creative idea to check if people actually prefer Coke to Pepsi was a taste test. According to Allen, Pepsi officials have been desperate enough to try a comprehensive approach to the wall. We collected dozens of professionals from the Coca-Cola drinkers and did a taste test, asking them to choose between soda labeled “Q” and “M”. As a hidden camera rolled, slightly more than half of the participants chose “M” and were surprised to discover that what they drank was Pepsi (Allen, 1994). Another way in which consumers have led to the development of your site Pepsi.com.

To truly compete with Coca-Cola, Pepsi management has an idea of ​​the marketing strategy of Coca-Cola. Historically, Coca-Cola did better in sales in the U.S., mainly because the service in restaurants. But Pepsi has outsold Coca-Cola than ten percent of turnover when it comes to selling in grocery stores (Allen, 1994). That’s because Pepsi gives more options when it comes to the beverage industry. Strategies have been used in the past is no longer an option in today’s market. It is important for leaders to have the Pepsi conceptual standpoint because it allows them to see the whole picture. In my recommendation, when Pepsi have all seen their opportunities and resources available to them would be a good idea to come up with an effective economic strategy against Coca-Cola. Pepsi seems to already be ahead of the game in a multinational company.

Pepsi executives play a key role in the success of Pepsi. Executives have the conceptual skills to consider when planning for the future. Pepsi’s growth will come from all sectors of society to the level of employees below the CEO Indra Nooyi. Nooyi, Pepsi has to look at large to see any new and innovative ways to compete with Coca-Cola. But in the business world Nooyi is known for its dynamic management style. Nooyi is known for showing the strength of good leadership. Pepsi was sure would not do well in the restaurant industry (the most influential women of 2010). In addition, it implements a number of strategies to improve the stability of Pepsi. A new form of transportation through the elimination of health conscious items. Consequently Pepsi began to see increased profits. “Although 2008 revenues grew 10% over the previous year and sales are snacks, Nooyi is struggling to rearrange the lower returns on the business of PepsiCo beverage base.

Pepsi leaders are discovering that they can no longer use the classical perspective of management. This is because, in order to ensure that the company will expand the future treatment of workers must be fair. “The company is consistently recognized as corporate citizenship, charitable work and the diversity of programs” (Pepsi Story, p.22). Companies in the right people in the same beliefs, Pepsi is very important. “The focus on the fire Pepsi determination, and the goal is part of the staff in cooperation with enlightened leadership, can improve the bottom line and the provision of social benefits beyond the walls Corporation (Capparelli, 2007, p .16). Leader Pepsi seeks to diversify its staff. Recently there have been a major concern when some of its leaders left. But, in response to concerns about the Pepsi noted that these are personal decisions and not those of society.

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The question of how to compete with Coca-Cola is one that management continues to work permanently. In my recommendation, I propose to move from a multinational to a global society. In doing so, it would cut costs but they would be able to spend just a producer or concentrated syrup in the other three elements in this case. There are four main functions in soft drinks, and they are concentrated or syrup producers, bottlers, distributors and retailers (Tollison, Kaplan, Higgins, 1992). Pepsi concentrated product that sells to independent bottlers franchised. Pepsi is currently voting to bottlers around the world. These bottlers then manufacture, distribute and market finished products under the brand PepsiCo (Tollison, Kaplan, Higgins, 1992). The advantage of Pepsi over Coca-Cola is to Pepsi franchise their products to various bottlers throughout the world.

My next recommendation for Pepsi is that they must focus on suppliers and work worldwide. Pepsi has already done by the outsourcing of their products through the franchise. The first presidents of Pepsi already had the intuition to get Pepsi to as many people as possible. An article in the late 1880s had recognized. “In 1883 was the American Journal of Human Genetics in January said the kola: The nuts used to create a refreshing and invigorating through much of tropical Africa … Moreover, if a deadline was presented as a beverage in the civilized countries of the request. after it quickly would be enormous “(Martin, 1962, p. 14-17). The idea that if Pepsi was introduced in other countries, there will a request for it. I think the same concept can be used today especially in the developing world’s cities and landscapes of China and India.

Pepsi always seems to be a pioneer in the new phenomena of expansion abroad. In the decade of 1950, management estimates that Africa was a good place to start opening new factories. In the 1950’s, Harvey Russell had led the efforts of Pepsi in the direction of Africa. “After Pepsi has won government approval for franchises in western Nigeria in 1959, sent three managers of the plant to open four plants there and stay as temporary plant managers (Carappell, 2007, p. 263 .)

Pepsi was the first American consumer product to be manufactured in the Soviet Union. It was not long before they expanded into China. In the 1980s, Pepsi began distributing in China. After that continued to expand abroad. Shortly after the merger with PepsiCo’s Frito-Lay Inc. changed its name to PepsiCo, Inc. Soon after they opened the first soft drink operations in eastern Europe and Japan. In the mid 1980’s, Pepsi-Cola had more than 600 factories operating in more than one hundred forty countries. And the decade of 1990, Pepsi was invested in South Asia, Eastern Europe, and Argentina (Pepsi Story, 2010).

In recent years, many companies have moved to send products overseas to China and India. E ‘became a way to cut costs so that these businesses can compete with the largest profit margins. Pepsi has used in recent years the same thing. They have invested a lot of money in China in particular. In May 2010, Pepsi has announced plans to invest another $ 2.5 billion in China with the addition of new facilities and research institutes (Pepsi Cola Square, 2010). Currently, they operate in 27 food and beverage plants there. In addition, they have five companies in China for more than twenty thousand people. But they have made a remarkable growth of India. PepsiCo gained entry to India in 1988 through the creation of a joint venture owned by the State of Punjab, Punjab Argo Industrial Corporation (Paic) and Voltas India Limited.

To beat Pepsi Coca-Cola to Pepsi World War cons should familiarize themselves with the new countries have planned to invest in adapting to the culture, people, economy and government regulation is crucial for residents of these countries to recognize the potential of Pepsi. In recent Pepsi Bottling used market efforts in other countries. Now, it is imperative to go to other countries with more humanistic approach. There have been complaints of villages in India by Coca-Cola has not considered the people there. In 1970, Coca-Cola was forced by the Indian government. While Pepsi has 38 plants c. Coca-Cola fifty-two, it is clear that Coca-Cola is there to make money. “Coca-Cola illegally installed high-power electric pumps to extract millions of liters of clean water and polluted what little water he had stolen from the community in India” (Mindfully.org, 2005).

Pepsi has done a lot of work to help the less fortunate. Pepsi has made a declaration that the Community’s participation is important to them, because their products are touching so many lives. For example, when Walter Mack as president, was known for his teaching fellowships open to all. Pepsi has developed grants. He wanted to present the leaders are not only intelligent people (Capparelli, 2007). At that time, Fortune magazine wrote that, “Mack wanted the overall impression that Pepsi-Cola is a company in a much wider audience than just the interest of the dollar.” Pepsi over the years has donated millions and perhaps billions to charity. Pepsi is currently with the YMCA. Are also involved with Save the Children Foundation for Pediatric AIDS treatment centers and programs in national disaster relief and food distribution nationally.

“When Coca-Cola asked what the plans said they had no intention of changing labels on bottles of Dasani, despite the water from a public water supply” (Byron, 2007).

“PepsiCo is a company $ 29 billion employing over 150,000 people speak over 40 languages ​​around the world” (Pepsi Story, p.22). Today, Pepsi for about two hundred countries around the world and fourth largest company in the world. According to the story PepsiCo, Pepsi is his claim as a world leader in prepared foods and beverages. historic rivalry between Pepsi and Coca-Cola showed some reduction in costs in the past. “The sharp drop in the price of soda is not entirely attributable to the reduction of costs in the industry. The source of this decline, among others, are the fierce competition in the industry “(Tollison, Kaplan, Higgins, 1992). The war between Pepsi and Coca-Cola has done positive things for the consumer.

Finally, I believe there is great potential to sell more Pepsi in developing countries, who are exposed to globalization. If they continue to expand their products to these countries, and to be aware of the cultures and customs of these people, these people are not only more Pepsi products. Therefore, through the continued commitment of the management teams are working together to brainstorm Pepsi will be known as a company that wins the cola wars, Coca-Cola and competing against two of them.


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