was found in 1965 through the merger of Pepsi Co and Frito-Lay, the world’s largest manufacturer and distributor of snack chips. In 1998, it acquired Tropicana, the world’s largest marketer and producer of branded juices. In addition to the main body of 3 companies, the Pepsi-Cola Incorporation also owns four well-known fast food restaurants in the world; they are Pizza Hut, Taco Bell, KFC, and Burger King. Furthermore, with its 4 fast food restaurants, PepsiCo Inc. owns 24,000 restaurants, more than McDonald’s 14,000. Based on PepsiCo Inc.’s annual report in year 2000, PepsiCo Inc. has total net sales of 20.438 billion US dollars and they are worth 44 billion dollars in stock value right now.
There are several reasons why the world’s second largest soft-drink company, the PepsiCo Inc., is very successful in the world and almost exceed the current market leader in soft drink industry, Coca-Cola. These reasons are taste, investment, management policy, and marketing strategy. In this report, we will put our main focus on marketing strategies and more details analysis, such as 4Ps (product, price, place, promotion), SWOT analysis (strength, weakness, opportunity, threaten), Marketing Environment (economic, technological, cultural, social, and competitor), advertising, and target market, etc.
First element of 4Ps is product. With more and more customers’ unique needs, besides its regular Pepsi, it adds regular caffeine-free Pepsi, Diet Pepsi, Diet Caffeine-free Pepsi, Wild Cherry Pepsi, and Diet Wild Cherry Pepsi into its product lines. Its Diet Pepsi is even the first of its kind in Cola market.
For the price, based on the laws of demand and supply, price plays a very important role in customers’ initial purchase. In addition, psychologically speaking, customers’ have such mentality to judge a product’s quality by its price. Therefore, Pepsi has to determine its price very carefully. If the products are wrongly price...
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Pepsi Co. Incorporation Annual Report 1997-1999