Figure 1: Pepsi
Pepsi-Cola is a carbonated beverage from PepsiCo Company and is a major competitor to the US Coca-Cola Company. The basic ingredients are carbonated water (water, carbon dioxide), white sugar, caramel, phosphoric acid, caffeine, and selected flavoring. Originally made in the 1890s by a pharmacist named Caleb Bradham in North Carolina. It was made from carbonated water, sugar, vanilla, raw oil, pepsin and cola nuts. The drug was originally used to treat stomach diseases and was later named Pepsi and was registered as a trademark on June 16, 1903. Pepsi-Cola is one of the largest soft drinks industries in Australia. Pepsi-Cola’s company also have comprises different soft drinks brand which are Pepsi, Pepsi Light, Pepsi Max, 7UP, Diet 7UP, Caffeine Free Pepsi Light, Mountain Dew.
1.1 Micro Environment of Pepsi-Cola
Pepsi-Cola was incorporated in Delaware in 1919 and re-registered in North Carolina in 1986. It is in a leading position a global food and beverage company with a delightful portfolio of brands, including FritoLay, Gatorade, Pepsi, Quaker and Tropicana. Authorized bottled, contract through our business manufacturers and other third parties, we manufacture, market, distribute and sell all kinds of conveniences and delightful drinks, food and snacks to serve customers and consumers in more than 200 countries territory.
Pepsico holds their suppliers to the same standards of integrity to which Pepsico hold themselves. Pepsico allows their suppliers to comply with their own standards of integrity. Unethical or illegal behavior of suppliers may undermine the reputation of PepsiCo as a world-class company and lead to a loss to their communities.
Pepsi’s suppliers, contractors, consultants, agents and other goods and services that do business with the global PepsiCo entity are subject to the guidelines applicable to this standard.
For example, we are committed to third-party audits focusing on the social and environmental aspects of land rights in Brazil, Thailand, Mexico and the Philippines.
1.1.3 Marketing intermediary
Pepsi can provide items directly to retail stores, such as Seven-Eleven. Pepsi also collaborating with Mc Donald and Pizza Hut. It is more reasonable for items that are often replenished and sensitive to progress and display. The customer warehouse framework is a lower cost distribution channel. It is the best choice for items that are not fragile, perishable, have low turnover and are not easily available. PepsiCo provides nutrition and beverages to restaurants, organizations, schools and stadiums through external staff management and distribution of merchants and administrators.
Pepsi-Cola’s customers include wholesale and other distributors, food service customers, grocery stores, pharmacies, convenience store, discount/dollar store, large store, member store, hard drive discount store, e-commerce retailers and authorized independent bottlers. It usually give its independence to the exclusive contract between the bottler and our trademark to sell and produce certain beverage products a specific geographic area. These arrangements give the right to charge independent bottlers.
Used for concentrates, finished products and Aquafina royalties, and specifies the required manufacturing process product quality. We also grant distribution rights to separate fillers for certain beverage products. Pepsi Cola bring their trademark to a designated geographic area.They rely on and provide financial incentives to their clients to assist with distribution and promotion. For their independent distributors and retailers, these incentives include discounts, product placement fees, promotions and displays. Pepsico provide these incentives funds known as bottlers, negotiate with each bottler every year to support various transactions for our independent bottlers.
Pepsi-Cola has its competitors such as Coca-Cola, Dr.Pepper Snapple, Red Bull, Dabur Real Juice and etc. Coca-Cola is the major competitor of Pepsi-Cola.
Coca-Cola also called as Coke. It is also carbonated soft drink. It is the one of the non-alcoholic beverage company and popular brand in the world. The company’s top five soft drinks brands are HYPERLINK "https://www.marketing91.com/marketing-mix-diet-coke/" Diet Coke, Coca-Cola, HYPERLINK "https://www.marketing91.com/marketing-mix-sprite/" Sprite, and HYPERLINK "https://www.marketing91.com/marketing-mix-fanta/" Fanta.Other than soft drinks, the company also HYPERLINK "https://www.marketing91.com/types-of-market/" markets juice drinks, waters, sports and energy drinks. For example, Minute Maid, Dasani, Powerade, and Vitaminwater are some of the other brands.
The company is valued at about $79.2 billion and it is one of the most valuable company in the world. It has a wide presence across the globe and HYPERLINK "https://www.marketing91.com/people-marketing-mix/" peoplewho visit any country will find its presence there.
1.2 Macro Environment of Pepsi-Cola
Although the soft drink industry has a large customer base, Pepsi is more inclined to subdivide itself into “New Generation”. These terms used in Pepsi advertising campaigns are what the marketer calls the X-generation concept, which is outlined between the ages of 18 and 29. In addition, PepsiCo has focused on the growing American youth market in the 1990s by signing exclusive contracts with Americans.
Pepsi had announced the launch of its portable vending machine in about 200 countries such as Malaysia, Singapore, China, Brazil and so on. Pepsi is also using the high technology equipment in producing their soft drink to ensure that the products of them are healthy and clean for people.
The health of a democratic society depends on the responsible participation of citizens in politics deal with. PepsiCo Concerned Citizens Fund (CCF) receives volunteer contributions from volunteers. The contribution of political movements to US federal and state parties, committees and governments CCF and corporate corporate donations provide important opportunities. It Participate in the democratic process for PepsiCo and its employees. Pepsi believe that providing financial support to responsible business candidates is an important task. It help improve the business environment, our quality of life and the means of society.
Pepsico is one of the sponsored company during football season in few country that organize the world cup tournament. For example, Brazil and Africa. During festival season such as Chinese New Year, Hari Raya Aidilfitri, Merry Christmas, people will serve their family and friends with Pepsi during open house. This is an action leading to Pepsi’s slogan ‘Joy of Pepsi’ and let people feel more happy while celebrating reunion festival with Pepsi.
Here are two challenges about Pepsi-Cola. The first challenge is turn Pepsi into a more healthier beverage. As we know, nowadays people are getting more focus on health ,less sugary, and create more quality products. In my opinion Pepsi can try to change the ingredients to lead a bigger market in this world. Besides that, Pepsi also faced a major competitor which is Coca-Cola. Coca-Cola had earned a greater market compare to Pepsi.
Recommendation of innovation
As my opinion, Pepsi can turn into a new face in this market. For example, Pepsi can change a more attractive packaging. Pepsi can also change it’s ingredients to more healthier ingredient such as non- sugar and minimize the chemical ingredient in their drink. Pepsi could held more event such as charity marathon. They can offer a can of their drink to the people who taking part in those event. Pepsi can promote it’s brand and promotions by using media social to increase peoples’ attention. For example, Instagram, Twitter, Youtube and so on.
Pepsi is a highly respected company that has maintained a good position in this beverage world. Pepsi understands the customer’s psychology and always ensures the quality of the beverage.They introduce originality in the product to expand the product base and maintain strong economic factors.The marketing keyword for Pepsi is "Leave in the spotlight."
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