Stretegic Analysis of Pepsi
Strategic Analysis of PepsiCo
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Introduction
Pepsi co is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in stores restaurants and from vending machines. The drink was first made in the 1890s by a pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16 1903.The has been many Pepsi variants over the years since 1903 to name a few they have Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi blue, Pepsi raw, Pepsi one etc.
PepsiCo is situated in a soft drink industry that is dominated by Coca Cola. By the time it got into the market Coca cola had already made its mark among the public and the newcomer Pepsi found it hard to find a consumer base.
Their first effective marketing strategy, they put their sodas in beer bottles and sold them cheaper than Coke. There was more drink for less money. They started selling, and Pepsi was seen as the poor man’s cola. Although this strategy worked, Pepsi recognized that if their image remained as that of the Poor Man’s Soda, their customer base would never widen. In order to improve its image, Pepsi devised a new marketing strategy by employing celebrities for its advertisements. One of their first celebrity endorser was Barney Oldfield, the pioneer for automobile racing.
Afterwards, PepsiCo dipped its marketing hands into acquiring even more business. They bought Taco Bell and Pizza Hut and exerted effort into developing overseas restaurant ventures. One of the most successful advertising and promotion campaigns in history.
SWOT Analysis
Strength
• Pepsi has a broader product line and outstanding reputation. • Merger of Quaker Oats produced synergy across the board. • Record revenues and increasing market share. • Lack of capital constraints (availability of large free cash flow). •
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Introduction
Pepsi co is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in stores restaurants and from vending machines. The drink was first made in the 1890s by a pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16 1903.The has been many Pepsi variants over the years since 1903 to name a few they have Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi blue, Pepsi raw, Pepsi one etc.
PepsiCo is situated in a soft drink industry that is dominated by Coca Cola. By the time it got into the market Coca cola had already made its mark among the public and the newcomer Pepsi found it hard to find a consumer base.
Their first effective marketing strategy, they put their sodas in beer bottles and sold them cheaper than Coke. There was more drink for less money. They started selling, and Pepsi was seen as the poor man’s cola. Although this strategy worked, Pepsi recognized that if their image remained as that of the Poor Man’s Soda, their customer base would never widen. In order to improve its image, Pepsi devised a new marketing strategy by employing celebrities for its advertisements. One of their first celebrity endorser was Barney Oldfield, the pioneer for automobile racing.
Afterwards, PepsiCo dipped its marketing hands into acquiring even more business. They bought Taco Bell and Pizza Hut and exerted effort into developing overseas restaurant ventures. One of the most successful advertising and promotion campaigns in history.
SWOT Analysis
Strength
• Pepsi has a broader product line and outstanding reputation. • Merger of Quaker Oats produced synergy across the board. • Record revenues and increasing market share. • Lack of capital constraints (availability of large free cash flow). •