Strategic Initiative

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Pepsico has been very successful with the strategic initiative planning they

have taken with their healthy beverage and snack product lines. The company has

initiated an expansion into a continuously growing healthy consumer market. Paying

attention and acting fast on this 'healthy' market has taken it ahead of its

competitors, especially Coca-cola. Pepsico's attention to the consumer health trend

and its strategic move out of soft drinks to target these trends put the organization

ahead in market value.

Pepsico has won over its competitors on the main soft drinks by satisfying the

consumer demand for a healthier product line of juices and wateras opposed to drinks.

Also through the Quaker and Frito-Lay brands, Pepsico has been spending time changing

from the sugary, fizzy soft drinks and foods into the healthy range snacks. Pepsico

believes this transition makes it more enjoyable for the consumers to lead healthier

lives. They believe doing what is good for consumers is also good for their business.

The company continues to make tremendous strides in transforming their portfolio to

meet consumer needs by "introducing new, nutritious food and beverage products; re-

formulating existing products to reduce fat, sodium, and added sugars; and also adding

whole grains, fruits, fiber and key vitamins and nutrients." (Pepsico.com, 2009) Pepsico

is a good investment because the company is a well-managed company with strong sales

in a large market that is both diverse and worldwide. Pepsico continues to innovate

and penetrate new markets like the healthy consumer market. It is a safe investment

because there will always be a demand for Pepsico products even during this recession.
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