Pepsi Company Case Analysis

Pepsi

The company was founded in 1965 by the merger of Pepsi- Cola and Frito-lay with the acquisition of Tropicana in 1998 and merging with Quaker Oats Company in 2001. In this consideration, Pepsi remains a global leading company in beverages, snacks and foods. Though it was started in United States the company has extended its production in Asia with Laos being one of the countries it has been stationed. Despite its dominance in Laos Coca-Cola another beverage company has been established in the country and thus high competition is expected as the company focus to maintain the market share and Coca-Cola aiming to increase sales in a new market. Competition of the market share by the two companies demands new strategies and mechanisms to ensure

Moreover, the improvement of the marketing strategies enables the company to retain the market share and continue to increase dominance in the country. The existence of the competition presented by Coca-Cola may lead to reduction of Pepsi products sales in the event it does not put the required measure to curb the high competition. Improvement of the marketing strategies wound enable the company to plan on developing financial goals. In this case, the financial goals remain related to sales target and expenses budget and thus well-developed financial goals would enable low-cost of adopted marketing strategies to ensure the cost of the products remain low as compared to that of Coca-Cola. Moreover, the continuous change in market condition leads to change of sales target due to decrease in consumer demand. In this case, monitoring expenses incurred on promotional and marketing strategies remain vital in ensuring positive results are acquired. Improving on this ensures the company retains long-term business viability as a mechanism to increase profit margin.

The contemporary orientation of Pepsi marketing focuses on customer-oriented marketing strategies and thus improvement is required for the company to focus on competitor-oriented marketing strategies. The adoption of the two marketing approach would enable the company to earn the loyalty of the customer and out-doing the competitor

In this case, Pepsi need to devise a mechanism such as segmentation of the market to enable the company understand the potentiality of different market regions. The segmentation mechanism would enable the company to differentiate prices, products and different marketing strategies according to the demands of the consumers.

Product diversity. PepsiCo has several hundreds of brands, which include: carbonated and noncarbonated drinks, water, savory and whole grain-based snacks. Product diversification strengthens PepsiCo because it doesn’t have to rely on few key products or seasonal sales and isn’t significantly affected by changes in customer tastes.

Extensive distribution channel. PepsiCo products are served to more than 10 million stores per week in more than 200 countries.

CSR. The firm recognizes its role in a society and engages in education, recycling, water usage reduction, obesity fighting and other projects through PepsiCo Foundation, thus increasing its brand awareness and customer loyalty.

Competency in mergers and acquisitions. The key to PepsiCo business growth is its successful mergers and acquisitions of beverage, bottling and snacks companies. PepsiCo acquired such brands as Gatorade, Tropicana, Doritos, Quaker Oats and many