Topics: Coca-Cola, Soft drink, PepsiCo Pages: 8 (2115 words) Published: May 10, 2013


The Pepsi Corporation has a strong focus on corporate growth and brand name domination. PepsiCo produces beverages, snacks, and foods. The company consists of PepsiCo Americas Beverages (PAB), PepsiCo Americas Foods (PAF), and PepsiCo International (PI).

PepsiCo was marketed first as a bargain brand. In the first part of the 20th century, PepsiCo changed chief four times and declared bankruptcy twice. PepsiCo modified its focus from bargain brand promotions to advertising toward young people, creating the “Pepsi Generation” marketing plan. After this change in marketing strategies, PepsiCo has become one of the leading food and beverage companies in the world, even though PepsiCo constantly strives with their leading competitor Coca-Cola.

PepsiCo depends on strong marketing tactics by maintaining its advantage in the market. They have recognized that marketing strategies differ between countries and have expanded and improved its brands to satisfy their customer needs. Segmentation is extremely vital to the success of PepsiCo. Finally, domination of the market and excellent reputation for being a strong, quality brand name has accredited PepsiCo’s long-term success.


PepsiCo Inc. is an American multinational company headquartered in Purchase, New York. Caleb Bradham invented Pepsi as a digestive aid in the late 1800’s; called “Brad’s Drink”. In 1898, Bradham changed the name to Pepsi-Cola. Herman W. Lay (Frito-Lay Company) and Donald Kendall (Pepsi-Cola) created PepsiCo in 1965. PepsiCo Worldwide Foods and PepsiCo Worldwide Beverages combined operations in 1986. PepsiCo has expanded from its product Pepsi to a wider range of food and beverage brands, the biggest of which include an addition of Tropicana in 1998 and a partnership with Quaker Oats to make a $25 billion business in 2001, adding the Gatorade line to its portfolio. PepsiCo restructured in 2007 dividing the company into three units’ food in the United States: Drinks concentrated in the United States and Food and Drinks marketed abroad. PepsiCo now manufactures and sells approximately 200 refreshment drinks in more than 200 countries around the world. As of January 2012, 22 of PepsiCo's product lines generated sales of more than $1 billion each, resulting in annual net revenues of $43.3 billion. PepsiCo is the second largest food and beverage company in the world and the largest Food and Beverage Company in North America. Mission:

PepsiCo mission is to “be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.”


“PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today.” “Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.”

Market Situation:

Pepsi has turn into the largest selling soft beverage in the world. A recent study shows about 90% of the world population when asked which soft drinks do they prefer replied Pepsi. When asked for the reason of this preference, people replied that Pepsi not only gives them higher quality, but also gives a wide variety of other flavors and new drinks.

PepsiCo advertises itself as the option of the “New Generation”. Pepsi gains this advantage by executing marketing plans like “Project Globe”, which Pepsi spent 637 million dollars over five years, this marketing plan was to present the new rich blue coloring of its packaging. The deep blue coloring symbolizes endless youthfulness as well as openness....
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