Competitive Review of PepsiCo Term Paper Example | Topics and Well Written Essays - 2000 words

hawkish Review of PepsiCo - Term Paper ExamplePepsiCo is one of the biggest soft drink, beverage, and convenient snacks companies. Pepsi has been bringing refreshments to its customers for over coulomb years. It has almost 18 brands in its portfolio. The soft drink and beverage securities industry is highly competitive with ever-changing customer tastes and preferences and therefore to maintain sustainable growth the management constantly has to introduce new market strategies, conduct market research and thereby position and reposition their brands or introduce new brands. understructure of new brands has always been a favorite marketing strategy with PepsiCo management. Pepsi has 18 mega brands available in nearly 200 countries and generates sales at the retail level of more than $1 billion. (See appendix 2 for PepsiCo mega brands and yearly retail sales of each) Demand for non-alcoholic beverages is driven by consumer tastes and demographics. The profitability of individual companies depends on effective marketing. Brobdingnagian manufacturers bind economies of scale in production and distribution, with average annual revenue per production worker neighboring to $1 million. Small companies can compete by producing new products, catering to local tastes, or sell at lower prices. Coca Cola is the worlds number 1 producer of carbonate soft drinks is Pepsis biggest rival. In the soft drinks industry, Coca Cola and Pepsi together have a market parcel of 95%. Where Coca Cola has a market share of 43.1% and Pepsi has a market share of 39.2%. The target customers for Pepsi customers are mostly teens and young adults between the ages of 12 to 35 who are fast and lively. They have high expectations in life and are very mobile and active. Pepsi promotes itself as the choice of the New propagation. One of its recent advertisement slogans is Taste the one thats forever young .According to the Competitive proceeds model of Porter, a competitive strategy takes offensive or defensive action to create a defendable position in an industry, in order to cope successfully with competitive forces and generate a superior Return on Investment(competitive advantage Porter).