PepsiCo makes up 7% of the portfolio holdings of the Vanguard Consumer Staples ETF and 0.7% of the iShares S&P 500 Value Index . PepsiCo’s Formation of Strategic Alliances Globally. Its nearest competitor is Coca Cola and both brands are engaged in an intense battle. Continuous product and process innovation helps at reducing costs as well as improving product quality and catering to customer demand better. Apart from developing new ingredients, flavors and products, the brand has continued to invest in reformulation to improve the quality of existing products. Pepsi spent 2.4 billion dollars solely on advertising [1]. Value chain automation as well as internet enabled services, big data and social media are all affecting how Pepsi connects with its consumers and finds business growth. Increasing effects of globalization and the rising international business competition have prompted businessmen, organizations and corporations to rethink their global business strategy. One of PepsiCo’s growth strategies is to proactively adapt to emerging market trends for natural, healthy, and nutritious beverages. It also presents new challenges and risks. Its customers include the teenagers and youth with a modern and fast moving lifestyle. Its income from food products has kept growing and in 2017 the brand earned 53% of its revenue from food products and only 47% from the beverages products. Developing or making improvements to dispensing equipment and packaging technology. In 2015, it announced a new marketing partnership with National Basketball Association. ... it's likely effective in distilling a more elaborate strategy into generalities the entire PepsiCo employee base can rally around. The brand added several health friendly and nutritious products to its customers. These activities include: Pepsi invests in R&D for continuous product innovation and for finding faster growth. Behind its excellent marketing strategy, there is a diverse and rich product portfolio filled with a large variety of flavours and nutritious and tasty choices. However, Pepsi shares both videos and pictures on Instagram since the social media channel has both the features. Agriculture is the foundation of PepsiCo’s business—we use more than 25 crops sourced from across 60 countries to make our foods and beverages. Firstly, the background of Pepsi Company and their products will be summarized. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. 21st century is marked by intense competition and in this era you cannot do without continuously experimenting and innovating. Product innovation becomes essential because of continuously evolving tastes of the consumers and there are other factors too that necessitate continuous changes across the product spectrum. Varadarajan, P., & Dillon, W. R. (1982). Growing e-commerce in US and China was one of the primary factors driving business growth in 2017 in these markets. PepsiCo’s secondary intensive growth strategy is product development. Digitalization has helped Pepsi respond faster and better to the customer demand. It has organised its business in six reportable segments. Strong brand image 2. Pepsi is using IoT capabilities to know when plant equipment will need maintenance as well as how to reduce energy consumption [1]. For GDPR compliance, we do not use personally identifiable information to serve ads in the EU and the EEA. The company here try to find more market segments and new markets to introduce its current products. It has set ambitious plans for the future which it has named Agenda 2025 [1]. Apart from Facebook and Twitter, Pepsi also uses its YouTube account to promote its brand and products through attractive videos. Unfortunately, these plans were eventually scuttled by the resolution of a Federal Trade Commission antitrust suit brought against Frito-Lay in 1963. As such, PepsiCo’s generic competitive strategy of cost leadership supports this intensive strategy for growth. PepsiCo has “ONE STRATEGY.” For each one of its product, it has one message worldwide. However, its commitment to health and excellence has served the brand well in 2017, when it again delivered strong operating performance. In order to respond to the changing preference of the consumers, the brand has released a large range of health friendly products that contain less sugar or have high nutritional value. Pepsico Business Model and Growth Strategy. The soda giant invests billions in advertising and promotion. Its growth strategy is based on attractive pricing, attractive packaging and an attractive product strategy that includes healthy and nutritious products. Provided 11 million people with safe water access since 2006. The results from investment in Digital innovation were obvious in 2017, when it delivered organic revenue growth of 2.3%. Competency in mergers and acquisitions. Key players Pepsi Cola in Pakistan Pepsi-Cola is one of the best soft drink in the world. Read full article. Drive water security to assure business continuity while positively contributing to communities. The intensive growth strategies adopted by Pepsi to achieve growth targets include- market penetration, product development, market development and diversification. Corporations are adopting various strategies such as product standardization and differentiation, adapt… The strategy is that the result of securing many local market share would be a considerable chunk of the market share of the country as a whole.
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