Pepsi Cola is one of the
largest soft drinks industries which operate worldwide. The main products of
the company comprises of different soft drinks brand including Pepsi, Pepsi
Light, Pepsi Max, 7UP, Diet 7UP, Caffeine Free Pepsi Light, and Mountain Dew.
In order to promote their Pepsi brand, the marketing division of the company
has been able to utilise different marketing strategy in order to be
competitive in the market place. In addition, different approaches of
promotional campaigns such as public relations programs, press releases, etc.
have been imposed so as to make the product more appealing to the target market
and to make these products marketable.
Pepsi-Cola is among the
companies in worldwide operations that has a firm and established history in
committing with the environment and its welfare. It could be said that the
company is successful with this endeavor. However, with the emergence of
several companies operating in the same industry, Pepsi-Cola needs to reinforce
its global commitment in protecting Mother Nature and its component.
Brand Portfolio
PepsiCo have a complementary food and beverage portfolio that
enables them to provide more choices for its customers, and drives lower costs,
productivity enhancements and new capabilities. Their products are available
around the world and Their portfolio includes 22 brands that each generates
more than $1 billion in estimated annual retail sales.
Over 100 Years of Fun and Refreshment.
Pepsi is
one of the world's most iconic and recognized consumer brands globally. Today,
the Pepsi portfolio includes three products - Pepsi, Diet Pepsi and Pepsi MAX
that each generates more than $1 billion in annual retail sales.
Good Fun
Frito-Lay
snack brands balance their product portfolio, blending 'good fun' with
high-quality, great tasting snacks. Its portfolio includes flagship brands -
LAY'S potato chips, the No. 1 snack food brand in America, and FRITOS corn
chips, a snack fans have enjoyed for more than eight decades - among many other
favorites.
The Fruit Juice Leader
Tropicana
is one of the leading producers and marketers of branded fruit juices. With
innovations like Tropicana Farmstand, juice that has one serving of fruit and
one serving of vegetables in every glass, and Trop 50, with 50 percent less
sugar and calories, Tropicana has a diverse good-for-you portfolio of delicious
and nutritious drinks that are enjoyed all day long.
Performance
Gatorade's
line of sports fuels adds over 45 years of sports nutrition research to the
PepsiCo portfolio in more than 80 countries. Gatorade has a rich history of
studying the best athletes in the world, in the lab and on the field, and no
one knows their fueling needs better.
Nourishment You Can Trust
Quaker,
one of the most trusted food brands for more than 135 years, includes a
portfolio with a wide range of nourishing and delicious meal and snack choices
that help fuel healthy families. Holding leadership positions in their
respective categories, Quaker Oats, Quaker Rice Cakes and Quaker Chewy
Granola Bars are consumer favorites. Quaker also produces popular cold cereals
like Quaker Life Cereal and Cap'n Crunch, iconic Rice-A-Roni side dishes and
beloved Aunt Jemima pancake syrups and mixes, and premium yogurt products
through a joint venture between PepsiCo and the The Müller Group.
Growth of Market share
by Case Volume
1990
1995
1998
2000E
|
Coca Cola Company
41.1%
42.3%
44.5%
44.1%
PepsiCo,
Inc
32.4%
30.9%
31.4%
31.4%
Cadbury Schweppes
(*)
3.2%
15.1%
14.3%
14.7%
Others
23.3%
11.7%
9.8%
9.8%
|
This shows that PepsiCo have a high market concentration and has a strong
market share. In this manner, the strategies used PepsiCo in its brands is a
good expansion strategy so as to maintain its position in the global market.
PepsiCo is a global company and one of its strategies is the use of
diversification approach. Aside from this approach, the BCG matrix results for
PepsiCo is also considered to be inspired by the branding strategy of the
company for enhancing the market share and growth of their brands like
Frito-lay, Pepsi, Quaker, Tropicana and Gatorade.
Companies like PepsiCo perceived that their brand and products
have some personalities and characteristics in which clients and customers use
as a channel for expressing themselves or to experience the predicted emotional
benefits that differentiate a specific brand from another. The considered
product characteristics evolved through the different approaches used by the
company and it is the one used for identifying which products should be put in
the stars, dogs,cash cows or question marks categories in the BCG matrix.
Nevertheless, studies on brand personality or characteristics and the
representational utilization of brands has been confined to how target markets
and audiences express themselves by purchasing the brands and has not
given consideration on how the company perceived their brand
characteristics.
Reference:
http://www.pepsico.com/
http://www.scribd.com/doc/102658960/PepsiCo-Case-Analysis#scribd
http://ivythesis.typepad.com/term_paper_topics/2009/03/boston-consulting-group-matrix-bcg-on-pepsi-co.html#axzz3XMG55opv
