Company Analysis : Pepsico Formed Essay

The soft-drink industry capitalizing on creating the best product. Each product has a different taste, formula, and color to entice the consumer. It is important for the product to remain innovative in order to keep the consumers interested. The suppliers can easily differ, because they do not hold much value or put

This is because it does not contain technical features that are difficult to understand and use. The product is a soft drink and therefore it does not require training on how to consume. Products that have high involvement are in most cases electrical and electronic products. These require user guides and manuals in order for consumers to understand how to use them. In some instances, physical demonstrations are required. In the case of our product the most important bit is to aware ensure customers are aware of the locations the product is available. Our strategy will involve giving customers samples of their preferred brand of our soft drink. For those willing to purchase the product in bulk there will be free delivery to their premises. We will also give discounts to all our buyers in a bid to attract more

and Pepsi Co dominate the industry with their strong brand name and great distribution channels. In addition, the soft-drink industry is fully saturated and growth is small. This makes it very difficult for new, unknown entrants to start competing against the existing firms. Another barrier to entry is the high fixed costs for warehouses, trucks, and labor, and economies of scale. New entrants cannot compete in price without economies of scale. These high capital requirements and market saturation make it extremely difficult for companies to enter the soft drink industry; therefore new entrants are not a strong competitive force.

The soft drink industry in the United States is a highly profitably, but competitive market. In 2000, carbonated soft drink retail sales were estimated $60.3 billion, however, soft drink consumption growth has slowed in recent years. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the U.S. They are the Coca Cola Company with 44.1% market share, The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/ Seven Up, Inc. with 14.7% market share. These three companies market the top ten brands account for 73% of soft drink sales in the U.S. Dr. Pepper/ Seven Up, Inc. owns two of the top ten brands: Dr.

Soda pops can be further isolated into carbonated and non-carbonated beverage. Cola lemon and orange are carbonated beverages while business sector can likewise be portioned into cola items non-cola item. Cola item represent around 160 percent of the aggregate soda market. The brands that fall in this classification are Pepsi, Coca-cola, pounds up, eating routine coke and eating regimen Pepsi. Non-cola portion in view of flavor shady lime clear lime and mange. Orange flavor based soda pop constituted around 17% of the business sector. The fragment is to a great extent ruled by common brands like Fanta of Coca-cola and Marinda Orange of Pepsi organization which aggregately frame 15% of the business and rest of the business sector is in the hand of littler brands like Crush, Gold Spot and so on overcast lime flavor is generally overwhelmed by Limca of Coca-cola and Marinda lemon of Pepsi organization. Clear lime fragment of the business sector saw great development at first. The brands accessible in this section are 7 up and sprite of Coca-cola. This portion constituted 3% of the aggregate soda business sector and straightforwardly contends with Mango based organic product; beverage are Maaza of Coca-cola and cut of Pepsi soda pop are accessible in glass bottles, aluminum can; and pet jugs for home

The industry is predominantly led by three companies; Coca Cola, Pepsi, and Dr. Pepper Snapple Group (also commonly referred to as RC or 7 UP by consumers). Each of these companies has strong players in multiple beverage categories. Furthermore, there is numerous other store, local, and regional owned brands depending on where you are. This creates a high number of substitute products throughout the beverage industry in all its categories. For example, in a typical carbonated soft drink aisle at Walmart you might find up to nine different brands of each beverage flavor. Interestingly, at Walmart each brand will tend to have a different price point. However, if you go to Target you may only find three brands per flavor and typically they are priced in line with one another. The high number of available substitutes often leads to a pricing war. When companies compete on price, often the consumer wins. The result of interpreting that competition is a learned behavior by consumers to be sensitive to temporary promotional pricing. Ultimately, the high number of available substitutes makes the beverage industry elastic in short bursts throughout the

The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten

As we all go about our day, we rush to place to place. Around us there are things for sale, people everywhere trying to make money. As we are rushing around, we all tend to get thirsty as we have a thousand things going on. In America we have dozens of choices when it comes to soft drinks, although the two most widely known are Coca-Cola and Pepsi. Many are often stuck between choosing Coke or Pepsi; even though they are slightly different in appearance, taste, and price it makes a world of difference to the customer.

Also soft drink companies diversify business by offering substitutes themselves to shield themselves from competition. Rivalry:

big market share, such as Pepsi Cola, Mt.Dew, and so on. I like to drink Coke

In an industry dominated by two heavyweight contenders, Coke and Pepsi, in fact, between 1996 and 2004 per capita consumption of carbonated soft drinks (CSD) remained between 52 to 54 gallons per year. Consumption grew by an average of 3% per year over the next three decades. Fueling this growth were the increasing availability of CSD, the introduction of diet and flavored varieties, and brand extensions. There is couple of reasons why the industry is so profitable such as market share, availability and diversity and brand name and world class marketing.

1. What is PepsiCo’s corporate strategy? Briefly identify the business strategies that PepsiCo is using in each of its consumer business segments in 2008.

PepsiCo Inc. is an American multinational foods and beverage manufacturer. It is headquartered in Purchase, New York and operates in more than 200 countries around the Globe. It is one of the world's leading brands in the beverages and grain-based snack foods industry. It was incorporated in 1965 in North Carolina by Donald Kendall and Herman Lay. The main product offerings by PepsiCo Inc. include soft drinks, energy drinks, coffee drinks, breakfast bars, cereal, rice snacks, side dishes, sports nutrition, and bottled water. The most recognized brands of the company are Pepsi, Starbucks, Quaker, Lay's, Mountain Dew, Mirinda, Gatorade, Aquafina, Lipton, Frito-Lay, Brisk, Tropicana,

Pepsi-Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in stores, restaurants and from vending machines. 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 1903, including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, and Pepsi Ice Cucumber in Japan .Pepsi cola is situated is an Industry that is dominator by two Competitors Coca

Coca-Cola spends huge amounts of fund on marketing every year to remain its competitiveness. However, recently, Coca-Cola had a weak global growth. The sales volume of soda is not so satisfactory. Coke is claimed to have too many calories and sugar, thus being bad to health, as a result of which, consumers turn their attention to other drinks (Kell n. pag.).