Pepsico-Strategy Diversificaion

Topics: Strategic management, Marketing, Pepsi Pages: 5 (1705 words) Published: May 26, 2013

In 2008, PepsiCo was the largest snack and beverage company in the world, with a broad portfolio of businesses and a focus on growth through acquisitions and innovation. However, even a strong company like PepsiCo deals with several challenges, to name few, low international profit margins, product innovation, supply chain decisions and fierce competition. A key advantage for PepsiCo is that customers across the globe have similar tastes and this has assisted the company in implementing global strategies and being able to execute marketing and distribution similarly in all regions. PepsiCo being a leading consumer product company it has always been looking for ways that will enable the company serve the people who buy their products. The company is doing this by corresponding to the health needs of the consumers and by helping the families understand the importance of good nutrition (Bachmeier K, 2008). PepsiCo by having a well built distribution channel has been of great advantage to the company because the customers can access products easily so as to turn to sales. The ability of PepsiCo to respond to the emerging trends and issues quickly like the issue of environment and health and the development of Pepsi generation has made the company to remain as the leading consumer product company and have a greater market share and also its ability to penetrate the international market buy focusing more on the emerging market (Gitman J.L and McDaniel C, 2009).

Pepsi Co is currently a strong worldwide leader in the food and beverage industry.Throughout its growth, it has stayed true to its mission and objectives, while becoming adominant force within the United States as well as abroad. Known throughout the worldfor quality products and customer care, Pepsi Co should make no major strategic changesto its plan. However, like in any business situation there are areas that Pepsi Co canimprove upon. Some of the recommendations are as follows: Continue to expand with their “Human Sustainability”. The healthy eatingmarket is a demographic that will continue to grow in the future, and will provide generous profits if Pepsi Co is able to obtain a large market share.-Expand more into social benefits, especially for those in developing nations.Pepsi’s main competitor Coca Cola has implemented a water purification program for African Villages, which provides a valuable need and at the sametime introducing their brand name where it was before unknown. If Pepsi

followed this same ideology with food products and water purification it toowould significantly increase brand recognition-Capture more of the aging population’s market share. Pepsi is a companyfocused on a younger market hoping to repeat the worldwide success of CocaCola in regards to brand loyalty with the generations born after 1980;however, there is still a large market with the Baby boomer demographic thatthey could break into.-A minor yet still important change that needs to be made is to their website.After comparing it to competitors we feel that it needs to be simplified. Implementation

Overall PepsiCo is a successful company with substantial revenue, and a largefootprint in the marketplace. PepsiCo should continue to expand their growth and takeadvantage of potential opportunities by continuing to improve on areas at the corporatetop level, in the markets that they currently are in, and in new markets and marketsegments that they wish to expand into. 

PepsiCo should expand into markets and market segments that they are currentlynot in, such as Asia, India, and South America, in order to expand their marketshare at the global level and to increase their overall revenue. 

PepsiCo should improve their employee relations in order to create employees allover the world that will promote the product...
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