Pepsi Competitive Strategy
Pepsi beverage was facing a struggle because of stiffer competition from market leader Coca-Cola. Pepsi's focus on the snack segment of its Chinese business began in the mid 1990s, after realizing that
that Coke was simply too formidable a competitor on the beverage
front.
Pepsi decided to build its global presence by dominating snacks and other packaged foods as a countermeasure against a faltering soda business.
Pepsi's snack food business is conducted through Frito Lay Inc. and its well known products are Doritos corn chips and Lay's potato
chips. The production of Lay's potato chips requires high quality potatoes.
In the US, Pepsi lets Black Gold company supplies potatoes to its US plant. In China, Pepsi tried hard to persuade Chinese
…show more content…
The Chinese belief in the Great Unity, or balance of yin and yang, has marketing and product development implications. The Chinese seek balance, including balance in their foods. Fried food is seen as hot and not appropriate in the summer months so Frito-Lay developed a new product, cool lemon potato chips. This product consists of chips dotted with lime specks and mint and packaged with cool climate images to connote winter.
Recommendations
Secure supply chains
It is recommended for PepsiCo to further invest in agricultural and rural development to become one of the largest growers of potatoes in China. Opening new plants and farms and introducing advanced irrigation technologies to transform arid zone into fertile potato farmland.
To further build expertise and infrastructure throughout China so that they can have a strong, sustainable manufacturing and agricultural base to serve the growing needs across China.
Localization
To achieve long tern success, PepsiCo needs to constantly understand the difference in local markets and changing
…show more content…
Localization can be more than just taste. It also includes packaging, branding
and product form.
Team up with Pepsi Cola
To jointly promote Pepsi Cola beverages and Frito Lay snacks in China with the marriage of two brands in a single product
like Pepsi Cola chicken flavor Lay's potato chips as cola chicken is a common recipe in China.
Govemment support
To partner with China's Ministry of Agriculture to promote best practices across China's farming system to improve yields, increase income levels and raise living standards for farmers throughout the country to promote sustainable agriculture projects and accelerate the development of the Chinese countryside
Cost
Ap World History Dbq Essay
765 Words | 4 PagesCoca Cola became such a well known American Icon because it was a suitable drink for everyday consumption by people of all ages unlike alcoholic drinks and wasn’t bitter like coffee and tea. Also, Coca Cola was always there during hard times in American like the Depression and the Prohibition period. It became well establish by people that journalist William Allen White declared “it was a sublimed essence of all America stands for…” 31. During World War II and the Vietnam War, wherever the American soldiers landed the Coca Cola Company followed, remained the soldiers of home and boosting their morale. The Coca Cola also made factories wherever they landed establishing themselves in every continent on Earth to every known countries and territories.
Microeconomic Project: Case Study Of Pepsico
819 Words | 4 PagesPepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which included an acquisition of Tropicana Products in 1998 and the Quaker Oats Company in 2001, which added the Gatorade brand to its portfolio. • As of January 26, 2012, 22 of PepsiCo 's brands generated retail sales of more than $1 billion apiece, and the company 's products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion Based on net revenue, PepsiCo is the second largest food and beverage business in the world. Within North America, PepsiCo is the largest food and beverage business by net revenue. Indra
Macro Environmental Analysis Of Nike
2130 Words | 9 PagesHowever, in China, there are a lot of people whose income are low, they absolutely will not buy those products. It reduced the market share. Promotion strategy and
Strategic Analysis Of Pepsi (Pakistan
6570 Words | 27 Pages¨ Entertainment – Games with free T-shirts, Pepsi points under the cap etc. SWOT Analysis • Strength: Company Image/brand equity: Pepsi has a reputable image all over the world, IT has a brand name that holds its prestige in the all over market .This image and brand equity give Pepsi an edge over its competitors Strong and vast distribution network: The vast distribution network of Pepsi is another strength .the improvement in packaging and the commencement of plastic shells has given Pepsi a favorable response from distributors and dealers, company makes sure its availability to make its product available to the distributors and its regular supply Strong brand portfolio: Pepsi owns 80% of the top snack brand.
Pepsico Political Factors
724 Words | 3 PagesBeing one of the largest non-alcoholic beverage and food industry, PepsiCo needs to be strictly regulated by Food Standards Agencies such as the European Food Safety Authority and Health, the American Medical Association, the World Health Organization and the US Food and Drug Administration (FDA). This agencies are body responsible for protecting and promoting public health through
Coca Cola Market Structure Analysis
1093 Words | 5 PagesCoca-Cola strives to utilize every strategy available to become successful whenever it launches its business in overseas markets. Pepsi seemed to have discovered Coca-Cola’s disadvantages and it was using them to check Coke’s dominance. The new market structure brought about cut throat competition between the two cola giants. However, the competition ate into a large chunk of the two companies’
Coca Cola Product Differentiation Strategy
785 Words | 4 Pages1.2. Product Differentiation This refers to differentiation that aspires to make a product more attractive by contrasting its unique qualities with other competing products (Investopedia, 2015:1), as in the case of Coca-Cola, other soft drink brands. Successfully adopting this strategy would have a company gaining a competitive advantage, as the customer would then view the product as unique or superior. This is what coca cola has managed to do, and has managed to do it on a scale that is globally unique, and globally recognized.
Coca Cola's Strategies To Maintain Competitive Advantage
1388 Words | 6 Pages3.1 Explain how products are developed to sustain competitive advantage There are three levels of coca cola’s products. They are core product, actual product and augmented product. Core product Coca cola’s products are high quality standards for the customer.
Coke And Pepsi Case Study
1101 Words | 5 PagesIn the carbonated soft drinks industry, Coke Cola and Pepsi Co are the biggest players in the market for aerated beverages. Both the companies have been competing strongly against each other for decades. The market is dominated by these two industry leaders with a total market share of 72%; Coke’s market share is 42% and Pepsi’s 30%. This is known as an oligopoly market; where there are few large firms competing with each other in the industry. Since both the company’s market share so large, the market is very close to a duopoly (other players having a very small impact on the market).
Essay On Sustainable Agriculture
3989 Words | 16 PagesIntroduction: “Sustainable agriculture is the efficient production of safe high quality agricultural products, in a way that protects and improves the natural environment the social and economic conditions of farmers their employees and local communities and safe guard the health and welfare of all farmed species“ There are three main principles of sustainable agriculture, the three principles are: 1. Economic sustainability 2. Environmental sustainability 3. Social sustainability With the human population continuing to rise, it is vital that the agricultural industry becomes more sustainable to meet the needs of the growing population. One of the impacts of this growing population is an increase in land usage for settlement purposes.
Pepsico Case Study Model
962 Words | 4 PagesFounded in 1965, the company is standing strong till now and it too consist of brands that are over 100 years old. With merger and acquisition of other companies, the company brands under it such as Frito-Lay, Tropicana, Gatorade and Quaker Oats. Ever since, the company has a staggering average retail sales amount of about $92 billion (USD). Being a premier producer and to supply convenient foods to the customers has always been the core focus of the company and because so, PepsiCo International always strive to thrive in its very own
Porter's Five Forces Model Of Biscuits
1832 Words | 8 Pages• In China, government regulation and policies regarding food products are very strict due to various food safety scandals in recent years. All biscuit manufacturers have to reach the state standard requirements for quality, packaging etc. (IBISWorld, 2010). In order to meet the tightened regulatory requirements on food quality and environment protection, this would require huge investment in stringent quality and hygiene control measures for new entrants (Euromonitor, 2014). • Existing competitors that have achieved economies of scale in production has an advantage over new entrants in terms of the burdening of overall expenditures
Willdy's Waffles Marketing Strategy
935 Words | 4 PagesFood establishment is a booming industry especially in cities like Dagupan City. They favor something new and one-of-a kind delicacies and demand great service. Pangasinan with its liberal and outgoing populace and “dessert lovers” as they say fosters a welcome market and venue for Willdy’s Waffles which serves delicious waffles. The introduction of waffles just fits their demands and just right for the desert lovers. Willdy’s
Competitive Disadvantages Of Coca-Cola
929 Words | 4 PagesFor the Coca-Cola, recognized its brand to be the best global brand around the world. Nevertheless, PepsiCo still working hard and catching up right behind the Coca-Cola, become the biggest rival for Coca-Cola in non-alcoholic drink industry. So what are the competitive advantages these both companies do have, let us discuss. 4.1 Distribution Method Coca-Cola conquer the market by having a very extensive distribution through partnership with bottling partner. Hindustan Coca-Cola Beverages Pvt. Ltd, is the largest bottling partner of the Coca-Cola Company in India, by owning 24 bottling plants at strategic location in various states widely covered across India, has an extensive distribution system spanning more than a million outlets.
Strategic Plan Of Pepsi
4003 Words | 17 PagesOverview The Pepsi Cola Company owns several brands. Currently, they own 22, to include Pepsi, Lays and Gatorade. Those three brands collectively generate more than $1
More about Pepsi Competitive Strategy
Ap World History Dbq Essay
765 Words | 4 PagesMicroeconomic Project: Case Study Of Pepsico
819 Words | 4 PagesMacro Environmental Analysis Of Nike
2130 Words | 9 PagesStrategic Analysis Of Pepsi (Pakistan
6570 Words | 27 PagesPepsico Political Factors
724 Words | 3 PagesCoca Cola Market Structure Analysis
1093 Words | 5 PagesCoca Cola Product Differentiation Strategy
785 Words | 4 PagesCoca Cola's Strategies To Maintain Competitive Advantage
1388 Words | 6 PagesCoke And Pepsi Case Study
1101 Words | 5 PagesEssay On Sustainable Agriculture
3989 Words | 16 PagesPepsico Case Study Model
962 Words | 4 PagesPorter's Five Forces Model Of Biscuits
1832 Words | 8 PagesWilldy's Waffles Marketing Strategy
935 Words | 4 PagesCompetitive Disadvantages Of Coca-Cola
929 Words | 4 PagesStrategic Plan Of Pepsi
4003 Words | 17 Pages