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Sdvds 09TP1
Sdvds 09TP1
Sdvds 09TP1
Strategic Management
Submitted to:
Submitted by:
Establishment: PepsiCo
company has since grown to become one of the world's leading consumer
Cheetos), and other food products (Quaker Oats, Aunt Jemima, Sabra).
Mission:
Vision:
Objectives:
Product Portfolio: The company seeks to diversify and enhance its product
chain.
Talent and Diversity: PepsiCo values its employees and aims to attract,
develop, and retain top talent from diverse backgrounds. They focus on
Policies:
ensure that their marketing efforts align with ethical guidelines, comply with
relevant regulations, and promote balanced and accurate information about
their products.
Human Rights and Labor Standards: PepsiCo has policies that support
and respect human rights within their operations and supply chain. They
strive to uphold fair labor practices, promote worker safety and well-being,
How can PepsiCo cope up with the rising number of competitors both old
What are the ways PepsiCo can do to make their products tackle health
In what way can PepsiCo innovate their packaging to help solve the
environment concern?
market.
consumer preferences.
trends.
preferences.
sustainability.
IV. External Environment Threat of new Entrants:
Offers new products
More affordable products
RIVALRY AMONG New competitors already
EXISTING COMPETITORS: studied what’s on-demand
Number of competitors Threat of New Entrants Access to distribution channels
Industry growth Cumulative experiences
Brand loyalty
Quality differences
Suppliers Buyer
Power Competitive Power
Rivalry
Supplier’s Power:
Buyer Power:
Number of suppliers
Number of customers
Uniqueness of each
Price sensitivity
supplier’s products
Buyer’s ability to substitute
Their ability to substitute
Customers preferences
Relationship to the
company Threat of Substitute
Cost of products Products
Threat of substitute Products:
Perceived level of product differentiation
Relative price performance
Buyer propensity to substitute
Lower costs of products from competitors
largest food company is using its competitive edge to dominate the beverage
and snack products hold significant leadership positions in the food and
snack food industry in the United States and around the world. In 2017,
PepsiCo and the Coca Cola Company accounted for approximately 23% and
Helpful Harmful
STRENGTHS WEAKNESS
Beverages
Strong Distribution
Controversial Advertisements
Supply Chain
Brand Loyalty
OPPORTUNITIES
THREATS
Healthy Options
Competitors
Product Diversification
Health Factor
Economic Slowdown
R&D
Changes in Demographic
Expanding Operation in
Emerging Market
Strengths
Brand Equity - It is one of the most famous and well-known global brands
in the food and beverage industry. It is also known as the brand of youth.
Has a high brand and reputation. It is worth $ 19.4 billion and is ranked
been doing well. It has controlled to stay on the various functions in the
whole food and beverage region most effective in the back of Nestle in
that field.
Customer Loyalty - PepsiCo has a very dependable consumer base. In
its beverage category, all its soft drinks have an iconic flavor and that's
why their customers do not opt to shift brands. They have emerged as a
totally robust brand in terms of the juices and bottled water category. Frito-
Lay has been one of the top-promoting manufacturers around the globe
Uncle Chips, Cheetos, Tostitos, and Walkers. They had controlled to grab
6 slots in the top 10 international snack brands with topping the charts all
Supply Chain - It has one of the exceptional supply chain networks in the
world, making the goods available at some stage in the world. Apart from
this they also have very efficient reverse logistics associated with it.
Brand Loyalty - Due to Pepsi's long-term stability in the market, the brand
Weaknesses
category. They are constantly neck to neck with each other. This
competition thereby offers room for not so loyal client base to exchange
brands quickly. Products perceived as unhealthy: Most of the soft drinks of
Product Dependence - They are only present in the food and beverage
industry, which can ultimately be harmful. They need to diversify into other
Failed Products - Many failed products such as 'Crystal Pepsi' hurt the
brand image of PepsiCo and thereby giving room for the competitors to
grow.
again and again, targeted the fantastic values of life, something which
Opportunity
ingredients in their products and make the consumer aware of the same.
economic backing to do the same. This can also be carried out through
acquisitions CSR: They can do more CSR activities to tackle the negative
remarks that hurt the brand image of the organization and benefit the local
people.
R&D - Recently PepsiCo got here out with more healthy alternatives in
soft drinks. To make 7Up through the usage of the synthetic sugar known
to be done. Focus extra on the weight loss program drinks category. They
have lately launched a variation in their cola sweetened with Stevia and
Flavors - A brand that has risen strongly in the latest years is Paperboat.
Threats
negatively affect health-conscious customers and they can lose them. This
might see a drop in its sales due to a cash crunch in the economy. Other
factors such as recession and inflation may also impact the sales of the
a) Growth – The PepsiCo can use the Concentration Growth Strategy and
apply the Forward Integration to ensure to lessen the threat of new entrant
b) Stability – The suited Stability Strategy for the PepsiCo is the Profit
Strategy. This will make the company do nothing new but to remain gaining
profit.
Strategy and the Forward integration. This can broaden the PepsiCo more
Strategy, the Forward integration. This can ensure not only to lessen the
threat of new competitors in the industry but will also help the PepsiCo gain
more insights from the people from other companies they will buy since there
are more workers to ask for opinions. The innovation of the product
packaging can also change and be more sustainable for the environment to
fit the whole organization and have unique yet still uniform packaging. Lastly,
since they will be broadening their market range, this can also be an
opportunity to offer and innovate products that will be healthy for all the
target markets.
occurs, they can look for alternative solutions immediately. They should
also plan ahead what they can do to innovate and advertise their
upcoming products like how they do when they hired a popular Korean girl
group called Blackpink. This boost their sales because they keep up with
the latest trend which is engaging in K-pop industry. PepsiCo should also
strategy and develop new products for existing markets and new markets.
This can help them innovate more and bring out new products that can
c) Financial Plan – The suitable financial plan for this company is the equity
Customization. This will help them fit their products more on what the
customers want and like. This can also resolve the health concerns on
their products since they can add healthier ingredients while maintaining
of the PepsiCo will help because the employees can gain new learnings
This will help them adapt and be more respectful with each other while
having a healthy competition within the company and help them boost the
new trends and make sure to incorporate innovation so that people will still
be loyal to them and not easily be bored of what they offer. Companies
making the environment better. Since PepsiCo has a lot of capabilities, they
can grow more and thrive harder in the industry with few changes in their
products and organization to make sure that they remain on top of the
industry.
We have learned that the proposed marketing plan for PepsiCo includes
introducing new products for existing markets and exploring new markets.
the financial plan suggests utilizing equity financing, which involves selling
company stocks to raise capital for various initiatives. Thirdly, the operational
addressing health concerns. Finally, the human resource plan highlights the
X. Bibliography
https://www.pepsico.com/who-we-are/mission-and-vision#:~:text=By
%20creating%20joyful%20moments%20through,products%20and
%20unique%20brand%20experiences.&text=By%20being%20the
%20best%20possible,growth%20unmatched%20in%20our%20industry
https://www.lifeissues.org/pdf/PepsiCopolicy.html#:~:text=PepsiCo's
%20Human%20Rights%20Workplace%20Policy&text=We%20do%20not
%20use%20compulsory,wherever%20we%20operate%20or%20work.
https://bstrategyhub.com/pepsico-swot-analysis/
https://fortune.com/advanced-search/?query=Pepsi%20market%20
https://fortune.com/advanced-search/?query=finance%20
https://fortune.com/advanced-search/?query=Pepsi%20company
%20capabilities%20
https://fortune.com/advanced-search/?query=Pepsi%20operations
https://fortune.com/advanced-search/?query=Pepsi%20resources%20