Strategic Management Pepsi

Topics: Strategic management, PepsiCo, Pepsi Pages: 13 (4067 words) Published: May 13, 2011
Business School
Introduction to strategic management
UGB 202

On of the leading organizations in the drinking industry is PepsiCo UK & Ireland. As it stated in the company’s website, “Every day, across the UK, millions of people enjoy PepsiCo products”. The company’s sites include the largest crisp manufacturing plant in the world located in Leicester; the Quaker oats factory located in Cupar, Scotland, Copella apple juice bottled at Boxford, Suffolk and finally, a large number of other manufacturing, distribution and administration sites. The company’s core products are:

1. Pepsi Cola
A pharmacist named Caleb Bradham was the inventor of Pepsi cola in 1898 in New Berth, N. Carolina. The world famous drink was initially known as “Brad’s drink” but the name was changed in 1903. Pepsi cola went on sale in the UK in 1953 and as it is stated in the company’s website “The UK has grown to become a significant and influential market for Pepsi”. In addition, Pepsi Max, which is the most popular product of PepsiCo all around the world, was launched in 1993 for the first time in the UK. By the end of 1994 it was being sold in more than 20 countries globally. The newest product of the company is Pepsi RAW, which was launched in 2008 and is actually made from natural sources. As the years passed, the company introduced a few special limited edition Pepsi flavours including Pepsi Max Twist and Pepsi Cino, which was actually cola combined with the flavour of cappuccino.

2. Walkers
During 1948, a butcher named Henry Walker started making crisps in Leicester in order to keep his employees busy, due to the fact that meat was rare at that time in England. As a result, these days walkers is Britain’s leading crisp manufacturer, with many thousands of employees in seven different locations. 3. Quaker Oats

Quaker is basically the UK’s favourite oat company; it’s based in Cupar, Scotland and has been making oats for at least 100 years. The fifth largest consumer goods company in the world was created when Quaker joined the PepsiCo family in 2001. 4. Tropicana

Anthony rossi, born in Sicily in 1900, was the one that founded Tropicana in 1947. Rossi moved to the United States at the age of 21. His first job was selling gift boxes of Florida citrus juice to different department stores in New York, but in 1947 he moved from New York to Florida where he started the well known company. These days, Tropicana is listed as UK’s number 1 juice brand. PepsiCo is placed in the soft drink market which is actually dominated by coca cola who had already made a name in the public, so it was very difficult for PepsiCo to compete. Their first effective marketing strategy was to change their soda cans to beer bottles so they sold more drink in a lower price. As a result though of this marketing strategy, Pepsi became known as the “poor man’s” drink, fact that was not good at all if the company wanted to increase its sales and have a wider range of customers. In order for the company to “clear its name” they had to develop a new marketing strategy, which actually was to employ different celebrities to advertise the products. One of the first celebrities that cooperated with PepsiCo was Barney Oldfield one of the first automobile racers. Company’s Mission and Values

• Mission
The company’s mission is to become the leading company in food and beverages but in the same time to fulfil all the customer’s needs. In addition, the company is trying to produce financial rewards to its investors due to the fact that they provide opportunities to their business partners and also the communities they operate in. • Values

The company’s CEO and chairman, Indra Nooyi has a global vision to deliver “performance with purpose”. In order for the company to achieve its goals and its vision there are certain tactics they need to follow,...
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