Preview

Pepsi Global Marketing Strategy

Powerful Essays
Open Document
Open Document
6949 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Pepsi Global Marketing Strategy
Student author
May 29, 2011
Student author
May 29, 2011
Global Market Entry Strategy
Global Market Entry Strategy

PEPSICO, INC.
PEPSICO, INC.

Pepsi
Pepsi

Market Entry Strategy

PepsiCo, Inc. is currently operating in China. It has been in the country since 1982, when it started its first operation in Shenzhen and later established 30 joint ventures all over the country. Recently CEO Indra K. Nooyi said that China “represents our single biggest opportunity today outside the U.S.” (Einhorn & Balfour, 2009 September 28). Recently PepsiCo is stepping up its investments and interests in the emerging market of China. With 1.34 billion people and a Chinese soft drinks market forecasted to have a $40 billion value by 2014, it’s easy to see why PepsiCo is investing in this country now. With government plans to improve the infrastructure, distribution will further improve as well, making it easier to get Pepsi to the Chinese consumers. According to Datamonitor, the company announced in 2008 that it would invest $1 billion in China over the next four years to tap the potential of this growing market (2010 May 14a). This investment would help expand its business and broaden its product portfolio. And according to an article in Advertising Age in 2008, CEO Nooyi said that this was the company’s largest investment in China in the almost 30 years they have been conducting business there. The investment is consistent with their broader global strategy of investing in high-growth developing markets and they want to sell to China’s fast-growing middle class. The money will go towards bigger manufacturing capacity, R&D, and building Pepsi’s sales force in order to broaden product distribution (Madden, 2008 November 10). But that wasn’t the only recent investment. Benjamin Li notes that in May 2010 PepsiCo announced they would invest $2.5 billion in China over the next three years, which would be used to build food and beverage plants, especially in China’s


References: Blecken, D. Asia’s Media & Marketing Newspaper. (2008, May 1). Pepsi consumers set to ‘cheer for China.’ Retrieved from http://web.ebscohost.com.wsuproxy.mnpals.net/bsi/detail Chang, B. China Daily. (2011, January 13). PepsiCo aims to put fizz back in business. Retrieved from http://www.chinadaily.com.cn/bizchina/2011-01/13/content Datamonitor. (2010, May 14a). PepsiCo, Inc. Retrieved from http://web.ebscohost.com/bsi/pdf Datamonitor (2010, Julyb) Einhorn, B. & Byrnes, N. Business Week. (2009, July 13). Coke vs. Pepsi: The slugfest in China. Retrieved from http://web.ebscohost.com.wsuproxy.mnpals.net/bsi/detail Flannery, R. Forbes. (2003, December 22). Pepsi’s Chinese torture. Retrieved from http://web.ebscohost.com. wsuproxy.mnpals.net/bsi/detail Frangos, A., & Burkitt, L. Wall Street Journal. (2011, May 20). The incredible shrinking bottle. Retrieved from http://chinabevnews.wordpress.com/category/pepsi-china/ Keegan, W.J., & Green, M.C. (2011). Global Marketing. New Jersey: Pearson Education. Li, B PepsiCo. (2011). Video. Retrieved from http://www.pepsico.com/Index.html Sellers, P
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Xacc280 Financial Analysis
    • 1828 Words
    • 8 Pages

    Xacc280 Financial Analysis

    The Coca-Cola company has been in business since its inventor began selling it in drug stores in 1886 (The Coca-Cola Company, 2009). Pepsi-Cola was invented a short time later in 1898, but at the time it was called “Brad’s drink.” It was later renamed Pepsi-Cola in 1902 (Butler, 2006). Since those early days when the sodas were invented, Coca-Cola and Pepsi have been in competition with each other for the domination of the world’s soda market. Over the course of more than a century, sales have continued to rise for both companies, and they both consistently earn a profit. Both companies have expanded into new product markets in more recent years. They have chosen to invest their earnings in new ventures like bottled water, snack foods, and iced tea, and they each strive to continue increasing their profits in many ways. In order to maintain this continued growth in the coming years, these companies are both in need of investors who will fund their efforts.…

    • 1828 Words
    • 8 Pages
    Better Essays
    Read More
  • Best Essays

    Oligopolies in the United States Economy
    • 1779 Words
    • 8 Pages

    Oligopolies in the United States Economy

    Sorensen, Chris. "The Pepsi challenge: real sugar." Maclean 's 123.5 (2010): 29. Business Source Premier. EBSCO Web. Quinsigamond Community College, George I. Alden Library, Worcester, MA. 17 June 2010.…

    • 1779 Words
    • 8 Pages
    Best Essays
    Read More
  • Better Essays

    Pepsi vs. Coca Cola
    • 1877 Words
    • 8 Pages

    Pepsi vs. Coca Cola

    * The NWC to total assets has increased by 70.680% because the current assets increased and the current liabilities decreased.…

    • 1877 Words
    • 8 Pages
    Better Essays
    Read More
  • Good Essays

    Pepsi Lipton BriskCase Brief
    • 1037 Words
    • 5 Pages

    Pepsi Lipton BriskCase Brief

    of distribution centers along with many bottling plants thus creating a firm global foothold (Exhibit 1).…

    • 1037 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Capstone on Pepsi
    • 2232 Words
    • 9 Pages

    Capstone on Pepsi

    References: PepsiCo. (2011). Company: Our mission and vision. Retrieved Dec 8, 2011from http://www.pepsico.com/Company/Our-Mission-and-Vision.html PepsiCo. (2011). Company: PepsiCo Values & Philosophy. Retrieved Dec 9, 2011 from http://www.pepsico.com/Company/PepsiCo-Values-and-Philosophy.html PepsiCo. (2011). Investors: Annual Reports. Retrieved Dec 8, 2011 from http://www.pepsico.com/Investors/Annual-Reports.html Thompson, A.A., Strickland, A.J., & Gamble, J.E. (2010). Crafting & Executing Strategy The quest for competitive advantage: concepts and cases (2009 custom ed.). Boston, MA: McGraw_Hill Learning Solutions. Wikinvest. (2011). PepsiCo (PEP). Retrieved Dec 9, 2011 from http://www.wikinvest.com/stock/Pepsico_(PEP) Wimm-Bill-Dann. (2010). PepsiCo to Acquire 66% of Russia’s Wimm-Bill-Dann Dairy and Juice Company for $3.8 Billion. Retrieved Dec 9, 2011 from http://www.wbd.com/profile/news/item.aspx?id=5846 Yahoo Finance. (2011). Pepsico, Inc: Competitors. Retrieved Dec 9, 2011 from http://finance.yahoo.com/q/co?s=PEP+Competitors…

    • 2232 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Cola Wars
    • 421 Words
    • 2 Pages

    Cola Wars

    3. Can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-CSDs?…

    • 421 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Product Development Failure: New Coke
    • 3607 Words
    • 15 Pages

    Product Development Failure: New Coke

    Initially introduced in Atlanta Georgia in 1886.Coca Cola is one of the most predominate soft drinks of all time. The successes of Coca Cola were not without failures. The reformulation of Coke’s flagship may have been one of the worst product failures of all time. However, this disaster may have begun stemming way before the introduction of New Coke. Coca Cola had been battling with Pepsi Cola since Pepsi’s introduction in 1903. Until just after World War II, Coca Cola had a commanding 60% market share1. Pepsi’s superior management decisions and marketing mix with the aging of the baby boomers enabled them to close the gap in the soft drink market segment. As the baby boomers got older and more health conscious coca cola began to lose market share. Pepsi, which was already the favorable product for the younger less health conscious soft drink users, began to target more niche markets such as the African American market. However, one of the big contributors to closing the market share gap was selling at a lower, market penetrating, price during The Great Depression by selling 12 oz bottles for a nickel while Coca Cola continued selling 6 oz bottles for the same price. Pepsi, adjusted better to their external environment by delivering value to their customers and Coca Cola suffered because of this2. Coca Cola felt that their time was running out with much of their brand loyal customer base aging and Pepsi controlling the younger more favorable segment. Pepsi’s youth focused positioning was getting better and better especially with their “Pepsi Challenge” marketing campaign in 1975. This campaign aimed to develop the belief that this is now the ‘Pepsi Generation’. This campaign was extremely successful because it called Coca Cola the reigning market leader out on it’s taste. Pepsi heavily marketed the results of this challenge to the public in exclamation that the Pepsi Generation has finally arrived3. Coca Cola tried firing back with an ad campaign…

    • 3607 Words
    • 15 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Why Crystal Pepsi and Others Failed
    • 1403 Words
    • 6 Pages

    Why Crystal Pepsi and Others Failed

    April 13th 1992, PepsiCo introduced an exciting change to its popular Pepsi product in the test cities of Providence, Denver, and Dallas and called it Crystal Pepsi. This is believed by many to have been one of the best ideas that PepsiCo had ever came out with, as they simply removed any and all coloring from Pepsi, creating a healthier and visually stimulating product. During the 1980's, Madison Avenue advertisers created one of our society's most aberrant spectacles yet, the pinnacle of decades of pop culture and advertising prowess, The Cola Wars. In our technological, media-driven, consumer-happy, and product-driven culture, selling and consuming soda has certainly become one of our biggest American pastimes. Coca-Cola and PepsiCo squared off for decades in various advertising coups trying to sell more soda to the already overly indulgent American public. A seemingly easy goal, but these companies have tried everything from using pop-stars, bold and daring challenges and most recently the chance to win a billion dollars on national television just for drinking their products. Throughout the…

    • 1403 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Pepsico Analysis
    • 7522 Words
    • 31 Pages

    Pepsico Analysis

    Initiatives With the Earth Institute and H2O Africa To Drive Sustainable Water Practices Efforts To Improve Rural Water in Africa, China, India and Brazil…

    • 7522 Words
    • 31 Pages
    Powerful Essays
    Read More
  • Good Essays

    Walkers Crips
    • 749 Words
    • 3 Pages

    Walkers Crips

    PepsiCo is the second largest food and beverage company worldwide. Its portfolio contains 22 brands ranging from Walkers to Tropicana and Pepsi. Their websites (PepsiCo) boasts that each brand they own generates more than $1 billion in yearly sales. They have an annual net revenue of $65 billion. This company certainly highlights how important the food and drink industry are in the global market. PepsiCo’s current worldwide flavours headquarters and also a manufacturing facility are situated in Cork employing around 500 employees.…

    • 749 Words
    • 3 Pages
    Good Essays
    Read More
  • Best Essays

    Wahaha Case Study
    • 2502 Words
    • 11 Pages

    Wahaha Case Study

    When Chinese markets opened up in 1980’s, Coke/Pepsi focussed on defining several strategies to Differentiate, Market and distribute their Cola products to Chinese consumers.…

    • 2502 Words
    • 11 Pages
    Best Essays
    Read More
  • Good Essays

    Map the supply chain
    • 922 Words
    • 3 Pages

    Map the supply chain

    A critical component of any company is the supply chain to create your product and get it out to the consumer. According to Schneider, supply chains can reveal “issues that affect the total landed cost of a product, although it may not be immediately apparent without thorough questioning” (Schneider, 2014). Goods can reach retailers and consumers alike all around the globe. Globally distributed products can have a raise tin he pricing all along the path to get to consumers, such has import taxes from wherever it originated or even the value of the materials used to make it in another country. Pepsi is one of the leading manufacturers of soft drinks for many decades. Here is a simplified outline for the key links in Pepsi’s chain: manufacturer, distributor and retailer (Perreault, Cannon, & McCarthy, 2011).…

    • 922 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Pepsi Co Distribution
    • 935 Words
    • 4 Pages

    Pepsi Co Distribution

    PepsiCo is a multinational food and beverage company. Operating in over 200 countries, it is the second largest company of its kind in the world. It can be systemized into four divisions, PepsiCo Americas Foods, PepsiCo Americas Beverages, PepsiCo Europe and PepsiCo Asia, Middle East and Africa. Furthermore PepsiCo is organized into six reportable segments, which are, Frito-Lay North America, Quaker Foods North America, Latin America Foods, PepsiCo Americas Beverages, Europe, and PepsiCo Asia, Middle East and Africa.…

    • 935 Words
    • 4 Pages
    Better Essays
    Read More
  • Good Essays

    Pepsi Grows potatoes in China
    • 5899 Words
    • 24 Pages

    Pepsi Grows potatoes in China

    After entering China in 1982, Pepsi continued to do well in the country, offering a wider…

    • 5899 Words
    • 24 Pages
    Good Essays
    Read More
  • Powerful Essays

    Kfc Globalization
    • 2047 Words
    • 9 Pages

    Kfc Globalization

    References: David. E. B. and Mary. L. S., “KFC 's Radical Approach to China,” Harvard Business Review, November, 2011…

    • 2047 Words
    • 9 Pages
    Powerful Essays
    Read More

Related Topics