Strategic Analysis of Pepsico

Topics: PepsiCo, Coca-Cola, Pepsi Pages: 15 (5914 words) Published: April 26, 2013
Executive Summary
PepsiCo Inc. is an American multinational food, snack, and beverage corporation that divided its products into five categories: Pepsi-Cola, Frito-Lay, Tropicana, Quaker, and Gatorade, and each category have plenty of brands. In fact, according to PepsiCo’s official website, PepsiCo leads food and beverage leader portfolio that includes 22 brands. The company reported sales of $510 million and has 19,000 employees ( Moreover, the company employed approximately 297,000 people worldwide as of 2011. (Wiki/PepsiCo) In fact, PepsiCo is now the second largest food & beverage business in the world. (Wiki/PepsiCo) Furthermore, Within North America, PepsiCo is ranked (by net revenue) as the largest food, snack, and beverage business. (Wiki/PepsiCo) To speak about PepsiCo’s mission and vision, according to PepsiCo official site, the mission of PepsiCo is “to be the world's premier consumer products company focused on convenient foods and beverages, we seeks 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.” To be more specific, PepsiCo focuses on both gaining high revenue and benefiting society. Analysis of target Market

The most famous slogan of Pepsi is “The choice of a new generation”. Because of this slogan, people can easily find out that PepsiCo definitely pay attention to young generation. In fact, since 1960s, PepsiCo has been eagerly attracting young customers. Pepsi’s American slogan from 1961-1964:”Now it's Pepsi for those who think young”. Also in 2006 – 2007, the slogan of Pepsi was “Taste the one that's forever young”. This slogan focuses on word “young” and “new generation” points out that teenagers and young adults are PepsiCo’s target consumers. How does PepsiCo attract young consumers? First, every year the company invites numerous celebrity endorsers who are really famous and popular in young generation. For example, Michael Jackson was one of the most popular star and young people were really crazy about him. According to Monica Herrera (2009), Moreover, in recent years, many popular stars such as Britney Spears, Shaquille O'Neal, and Mariah Carey also play roles as celebrity endorsers of PepsiCo to promote PepsiCo’s products. (Wiki/Pepsi/Sponsors) Second, PepsiCo connects its brand with music to attract young customers. On the website of Pepsi, there is a slogan” Where there’s Pepsi, there’s music! ”. In fact, every year PepsiCo holds some popular pop music concerts in the United States and other countries to attract young people. How does this strategy work? Because nowadays young people love music very much, if PepsiCo successfully building the connections between PepsiCo and music, young people will desire to buy products of PepsiCo because young people may think having food and drinks of PepsiCo is fashion and cool. Third, although PepsiCo is mainly sell food, snacks, and beverages to consumers to gain revenue, it also offer a Pepsi shop that sells some fashion and young products such as apparel, accessories, collectibles, cool stuff, and throwback to attract young consumers. That is, PepsiCo want to make people think that the brand “Pepsi” is fashion so that young consumers are willing to buy products of PepsiCo. In conclusion, people can easily find out that PepsiCo’s target market is young generation for three reasons, among them inviting popular stars as its celebrity endorsers, connecting its brand with music, and selling some fashion and young products other than food and beverages. Who are the competitors?

PepsiCo sells many kinds of food, snacks, and beverages, and Pepsi is the most popular beverage of PepsiCo. Besides, PepsiCo also sell many famous beverages such as Mug Root Beer, Mountain Dew, and G2. From Yahoo! Finance(2012), We can find out that the main competitors of PepsiCo are The Coca-Cola Company...
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