Preview

Pepsi Blue Case Analysis

Satisfactory Essays
Open Document
Open Document
899 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Pepsi Blue Case Analysis
Feb. 15, 2015

Pepsi Blue

Yanran YAN

Pepsi Blue Case Analysis I.

Strategic Situation In 1995, Pepsi-­‐Cola International (PCI) headquarter planned to carry out a $500

million global brand identity and logo plan, also known as Project Blue. The plan failed to get support from regional executives. The better way to carry out a global plan is to get support from leading markets (e.g U.S and U.K) and major bottling company, and then carry roll out the plan in key market Mirst.

II. Situation Analysis

Competition with Coca-­‐cola. In 1995, PepsiCo accounted for 27% of the retail value of

carbonated scout drink sales in U.S. while Coca-­‐Cola accounted for 35%. The gap was greater in global market. Some analysts believed Pepsi was losing edge over Coca-­‐Cola in the youth market, who wins it by continuous advertising and marketing expenditure.

Inconsistent Brand Image and Logo. Brand name is also the success in impulse driven

soft drink category. Pepsi expanded product portfolio by launched new products and new packaging design to earn market share. The brand presence was lack of integration and inconsistence within and across countries. Moreover, the expansion in emerging markets which targets young people calls for a new mage attracting the youth.

Relationship

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Pepsi America Case Study

    • 578 Words
    • 2 Pages

    1. The following listed factors made PepsiAmericas to adopt a more aggressive attitude towards the utilization of transaction data to run the business.…

    • 578 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The decision made by the analyst on the first week was to increase the advertising budget to $169 million. This increase in the advertising budget will allow Blues Inc. to have a stronger marketing plan and to advertise Blues Inc. across the country. According to the reports the correlation coefficient of…

    • 255 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Coke vs Pepsi

    • 688 Words
    • 3 Pages

    Coke and Pepsi have always been rival beverages for decades. I can remember my teens when most households would divide into two when it came to choosing their choice of drink, especially when going for grocery shopping. Even the advert aired by both brands shows a lot of rivalries between them. When one makes a new product, the other would do everything possible to make something similar or better than the former. Making people, both old and young believe their product is the best. When comparing the two beverages, there’s a major thing we normally notice from their commercials, while Coca-Cola Company uses families and animal in most of their commercial ads relating to peoples society, Pepsi Company uses different super stars and celebrities to sell their product worldwide. However, as coke uses their ethos in targeting both the old and young generation, Pepsi target mostly today’s youth in their adverts.…

    • 688 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Cola War

    • 9264 Words
    • 38 Pages

    For over a century, carbonated drink was introduced to mankind. Two major contenders in the industry stand Coca-Cola and PepsiCo. The two soar in the industry as they compete with each other. There were amazing monopolistic behaviors found in their doings. Have you ever wondered why such drink without any redeeming health benefits, but rather sublimely known as one of the causes to sugar and fat related diseases, can be so profitable? By setting the health benefits aside, have you ever wondered why such drinks are so popular yet a lot of competitors are unable to imitate and stand up to beat them? The secret lies…

    • 9264 Words
    • 38 Pages
    Powerful Essays
  • Powerful Essays

    Cola Wars Case

    • 1195 Words
    • 5 Pages

    Concentrate Producers and Bottlers were two of the four major participants that were involved in the production and distribution of Carbonated Soft Drinks (CSDs) in the United States.…

    • 1195 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    Pepsico Evaluation Paper

    • 1334 Words
    • 6 Pages

    Accounts receivable turnover is computed by AR/Total daily sales credits. The daily credit sales was not available on the income statements for Pepsi Co, only one line for revenue; therefore, we can assume that all sales are performed through credit, meaning no cash sales. The total Revenue for Pepsi Co is reflected below:…

    • 1334 Words
    • 6 Pages
    Better Essays
  • Better Essays

    Dr. Pepper Case Analysis

    • 2846 Words
    • 12 Pages

    Dr Pepper Snapple faced problems deciding whether the company should enter into the energy drink market. The energy drink market is a high growth and high-margin business. Recent rise in such functional drinks has Dr Pepper wanting to tap into this fast growing market. Dr. Pepper is one of the only major domestic carbonated soft drink companies that have not introduced a line of energy drinks. The challenge Dr Pepper Snapple faces is what would be the best way for it to market a new energy drink product. The company simply does not have the income to compete in advertising against Red Bull.…

    • 2846 Words
    • 12 Pages
    Better Essays
  • Powerful Essays

    The competition within the $74 billion carbonated soft drink (CSD) industry has been remarkable ever since Coca-Cola was formulated in 1886, and further intensified when Pepsi was introduced in 1893. Ever since then, the CSD industry has been dominated by these two companies, with Coke taking the lead in the early stage, followed by Pepsi doubled its market share between 1950 and 1970 by offering its concentrate at a lower price than its competitor. The CSD industry has been profitable historically due to numerous reasons. Firstly, in the world’s largest market for CSD products, consumption had been growing at a steady rate of 3% annually from 1970 to 2000 in the U.S., marking a high growth stage in the industry life cycle (Appendix B). This allowed both Coke and Pepsi (C&P) to achieve annual sales growth of around 10%, while competing head-to-head against each other and other smaller CSD producers. Competition between C&P reinforced their brand image, as the increase in marketing efforts could be transferred into profit and sales growth when the overall demand was increasing in a growing industry. However, the increasing industry volume was largely obtained by C&P, leaving other smaller firms vulnerable with stagnated growth opportunity. Secondly, according to Porter’s Five Forces analysis in Appendix A, high barrier for new entrants, low bargaining power of suppliers of both concentrate producers and bottlers, moderate buyer’s bargaining power and low degree of threats of substitutes prior to 2000, have been favorable to the high profitability and growth of the CSD industry. In terms of concentrate producers, the manufacture process involves little fixed costs and capital investments. This ensures high level of gross margin for them and frees up funds for marketing related expenditures. As the industry became more consolidated, large firms such as C&P gained pricing power over bottlers through master price contracts. For bottlers, even though heavy capital…

    • 1227 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Red Bull Case Analysis

    • 3024 Words
    • 13 Pages

    I have been asked to evaluate the marketing strategy for Red Bull. More specifically, I have been asked to identify new ways that Red Bull could maintain its leadership position in a maturing category. Although Red Bull did create this market and is a top seller for energy drinks, it is now vulnerable to other competitors who have the resources and brand recognition to aggressively compete, such as Coca-Cola, PepsiCo, and Hansen, to name a few.…

    • 3024 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    Coke AM and PepsiAM case

    • 383 Words
    • 2 Pages

    1. What is the target audience for Coca-Cola’s “Coke in the Morning” campaign? What is the target for Pepsi A.M? Are these audiences the same?…

    • 383 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Pepsico Case Study

    • 3026 Words
    • 13 Pages

    1. What is PepsiCo’s corporate strategy? Briefly identify the business strategies that PepsiCo is using in each of its consumer business segments in 2008.…

    • 3026 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    Pepsico Evaluation

    • 4707 Words
    • 19 Pages

    PepsiCo Inc. (NYSE: PEP), with revenues of more than $39 billion and over 185,000 employees, is a large conglomerate with interests in manufacturing, marketing and selling a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain-based snacks, and other foods. Besides the Pepsi-Cola brands (including Mountain Dew), the company owns the brands Quaker Oats, Gatorade, Frito-Lay, SoBe, Naked, and Tropicana1.…

    • 4707 Words
    • 19 Pages
    Good Essays
  • Powerful Essays

    Adolescence, a time characterized by euphoria, independence, and a desire for instant gratification, can often be fueled by poor-decision making and a lack of proper judgement. In these habit-forming years, the simplest of choices, such as selecting a beverage, can have a life-long impact. Constantly driven by their appetite for instant pleasure, along with the widespread accessibility to sodas and sugary beverages, teenagers are using faulty judgement and selecting the unhealthy drinks, contributing to their own deteriorating health. Due to the immense magnitude of the most seemingly innocuous choices on their future, teenagers need and deserve guidance in choosing the healthy options for their own benefit. As a consequence,…

    • 2234 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Black Fly Beverage Company is a small beverage company based in London Ontario. The company has achieved recent success in the selling and promoting of their first alcoholic beverage, the cranberry/blueberry vodka cooler. The immediate success of this product presents two critical issues that the company must address. These critical issues are:…

    • 944 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    This report provides an analysis and evaluation of the Marketing Strategy of PepsiCo. Methodsof analysis include Market Segmentation, Market Targeting, Market Positioning, as well as theMarketing Mix of PepsiCo.The research draws attention to the Market Segmentation of PepsiCo. While the soft drink industry has probably the widest and deepest customer base in the world, Pepsi did not use themajority fallacy to market their product. Instead, Pepsi prefers to segment itself as the beveragechoice of the ³New Generation´, Generation Next, or just as the ³Pepsi Generation´. These…

    • 444 Words
    • 2 Pages
    Satisfactory Essays

Related Topics