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Introduction Current position Pepsi & its segments STP Marketing mix & 4p s SWOT analysis Problems Alternate solutions
INTRODUCTION
Pepsi is a carbonated soft drink produced and manufactured by PepsiCo. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1898. In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1926, Pepsi received its first logo redesign since the original design of 1905.
Current Position
PepsiCo is the second largest food and beverage company in the world. It manufactures markets and sells a variety of salty, sweet and grainbased snacks, carbonated and non-carbonated beverages PepsiCo seeks to achieve growth and long-term value in its operational activities by creating competitive advantages through new product innovation
In 2006, PepsiCo acquired Izze Beverage Company Naked Juice and Stacys Pita Chip Company in the US, Star Foods in Poland, and Bluebird Foods in New Zealand. It has expanded its presence in the non carbonated drinks as well as snacks
The companys volume grew by 5.5% in 2006 compared with 2005 In 2007, the company plans to expand its market share through further acquisition and joint ventures.
In 2009, company has its revenue upto 43.2 Billion US$ and its net income was 8.04 Billion US$.
BEVERAGE SEGMENT
1.PEPSI 2.SLICE
5.7UP
Targeting the market of the urban & rural India Positioning & trying to create an image or identity
in the minds of their target market for its product or brand or organization.
4P s IN DETAIL
Product
x All the soft drinks & the food products in the industry
Price
x The price of the products with respect to the Indian scenario
Place
x The urban & rural markets where the products have to be marketed
Promotion
x The effective use of ads for boosting up the sales
Weaknesses
Decline in taste litical Franchises Short term Approach Weak Distribution Low Consumer Knowledge Financial Downfall
15,000
in Million US$
13,591
13,796
13,219
Years
Opportunities
Increase Population Changing Social Trend Diversification Distribution of Snack Foods
Threats
Imitators Government Regulation Non-Carbonated and other Competitors Substitutes
PROBLEMS
Lack of efficiency in distribution network in some
product lines. For e.g. My can and Aliva. Lack of emphasis on the brand value in advertisements. For e.g. Aliva and Kurkure. Lack of efficiency in product market survey before the launch of products. For e.g. Pepsi blue and Kurkure desi beats. The target market is youth and the taste is not in relation with the taste of target market(Pepsi is too sweet)
RECOMMENDATIONS
Promotion of their products through Effecting Marketing and Advertising strategies. Improving production efficiencies through optimal outsourcing of production and integration. Produce a range of Healthy, i.e. Sugar free or diet Alternatives of different products. The products should bear the brand name in the advertisements A better & an efficient survey network is to be established in order to penetrate the market