International Marketing Strategies of Pepsi and Apple Inc - Essay Example

International Marketing strategies of Pepsi and Apple Inc. Introduction In this section, the proponent presents the background on the topic and the objectives of the study. 1.1 Background on the topic PepsiCo and Apple Inc are two renowned international companies making a name while employing international marketing activity across the world. These companies have instituted what is vital about marketing in the international context. They employed the essential activities for them to be able to surpass a very tough competition in their industry around the world. Apple Inc has become popular with its capacity to innovate not just in marketing activities, but almost all components of its operation. PepsiCo on the other hand has become trendy with its ability to initiate high level of market performance with a purpose, allowing it to rank next to Coca Cola. These two companies are therefore mostly studied because of their innovative approach and contribution to modern marketing techniques, allowing them to employ marketing strategies that at some point are cut above the other, while adhering to the basics. They eventually do not just settle for less, but above all are market leaders willing to substantially innovate and create a difference in their respective industry. PepsiCo for instance has become the widely competitor of Coca Cola, and in this situation, it is necessary for the firm not only to contend, but create its brand as something worthy to be considered unique and one of a kind in its industry. On the other hand, Apple Inc is experiencing the same scenario, because of the linked many players in its industry. It is going to be hard for the company to compete in an industry where there are relevant key players mushrooming and aiming to get a substantial market share and a sustainable competitive advantage. However, Apple Inc has eventually proven its worth, allowing it to be as one of the top key players in its industry. In 2012, the firm was voted as the winner of the 2012 CMO Survey Award for Marketing Excellence (Moorman, 2012). 1.2 Objectives of the study The work at hand presents elemental ideas concerning the international marketing strategies of PepsiCo and Apple Inc, which paved them the way to their competitive advantage at present. In order to showcase such strategies, the work at hand provides the essential cases and scenarios that could help justify the prevailing international marketing strategies of PepsiCo and Apple Inc. In addition, it is also important to present the prevailing scenarios in the Middle East or in the UAE. Added to this, the challenges and problems facing PepsiCo and Apple Inc in the international setting require fundamental consideration, at some point. Finally, the proponent provides the elemental solution to the problems as supported by relevant information using the prevailing marketing concepts. 2. Discussion and Analysis 2.1 Current scenario in general Apple Inc still remains one of the most valuable companies at present. Its main points as to why it stays in this level in contemporary time include the following: empathy, focus and impute (Moorman, 2012). From the inception of its peak in the industry, Apple Inc was already determined to give a high level of understanding to its target customers, and better than any other company. In fact, this can be justifiable by its innovative strategies, that it is in fact willing to promote better understanding of the customers by addressing their prevailing unmet needs. For this reason, Apple Inc has become popular with its ability to create a need for its product and service offerings in the international market. Here where the innovation of its brand sets in. Apple Inc also eliminates unimportant opportunities (Moorman, 2012). By this principle, Apple Inc is clearly placing highly value for focus. Finally, Apple Inc is not only at the level of effectively promoting the “the best product, the highest quality and most useful software” but also presents them in a creative and professional manner (Moorman, 2012). They believe that ascribing the best quality is an essential part of their success. By adhering to the above strong marketing capability, Apple Inc has made it possible to employ the following marketing strategies: customer service, differentiation, cannibalization if necessary, high value for customers, and provision of high value offerings. Moorman argued these are some of the strategies that are making Apple a great marketer in the modern world of business and international marketing activity. Thus, with this in mind, Apple Inc has finally created a modern business model: “creating a brand, morphing it, and reincarnating it to thrive in a disruptive age” (Morris, 2008). This can have its essential root from the “survival model” as illustrated in the Appendix. On the other hand, PepsiCo is ranked number two behind Coca Cola. “Its marketing strategy is mainly to work within the company, ‘Performance with a Purpose’ Strategy” (Isenberg Marketing, 2012). Smart selling, focus on business portfolio analysis and customer relationships are the prevailing essential marketing strategies that PepsiCo is employing in order for it to adhere to its competitive edge (Isenberg Marketing, 2012). With Smart selling, PepsiCo is able to augment its bottling network by around 80 percent in 2012, by purchasing largest bottling groups such as New York based Somers Pepsi Bottling Group and Minneapolis based Pepsi-Americas. PepsiCo believes that smart selling is its opportunity to cater to a wide range of customers who are eventually drinking sodas while having their snacks at the same time. Effective diversification analysis is what PepsiCo is trying to establish in the international market, because this is a way for it to focus on business portfolio analysis. This is a way for them to continue to invest in developing and emerging markets for both opportunities and sustainable development and competitive advantage. In other words, PepsiCo does not eliminate the idea of economic consideration with regards to its capacity to formulate effective marketing strategies. Finally, PepsiCo, as already stated is banking on its ability to initiate customer relationship. The firm is aggressive enough in reacting to consumer trends. In fact, knowing that people are becoming health conscious, PepsiCo is trying to develop a strategy that at the bottom line will give the target customers what they are looking for. 2.2 Current scenario in the Middle East/UAE The market scenario of Apple Inc in the Middle East is one of the mostly viewed ideas, considering the substantial market share that the firm has in this marketplace. Knowing the point that Apple has extremely become successful in making its brand popular in the international setting, the same circumstance takes place in the Middle East, where having an Apple brand is an essence of possessing high quality mobile technology. As stated, Apple Inc continues to offer its product and service offerings with a touch of creativity and professionalism. This is the main reason as to why having a product from Apple in the Middle East is synonymous to quality, dominance and excellence. On the other hand, the ability of PepsiCo to look for the prevailing customer trends is what is making it compete with the market share of the existing both local and international brands in its industry. It goes beyond the concept of basic customer relationship, but with the integration of diversification strategy and smart selling. In other words, what PepsiCo has started prior to its full implementation of a global strategy is consistent all throughout in the international and local markets. The above scenarios simply illustrate as to how the two firms are trying to achieve their sustainable competitive advantage. This form of advantage cannot be easily emulated because of the degree or level of advantage that firm should hold above the other competitors. 2.3 Challenges/problems Every market in the world varies in terms of attitude, values and language (Shaikh, 2014). These are the major challenges of Apple Inc and PepsiCo. Having language as a probable challenge, communication might be a significant problem of Apple Inc and PepsiCo in the Middle East in this regard. When it comes to understanding the attitude of the target customers, it does not help a lot to just have an educated guess on what to do. This is a major challenge on the part of Apple Inc and PepsiCo because customers around the world have varying attitude towards a certain product offering. Considering also the point that the boarders would mean varying culture across the world, having different values is another crucial consideration of Apple Inc and PepsiCo. These values could result to the ultimate preference of customers for a certain product or service offering. These challenges are all present in the Middle East knowing the point that people here are having varying attitude, values and language with respect to the existing attitudes, values and languages in other parts of the world. Thus, it is necessary to look into meaningful considerations as to what solutions to the problems are necessary or important. 2.4 Solution to the problems Market research is such a fundamental tool that could help both PepsiCo and Apple Inc in the challenges they face in the Middle East. Market research is one of the sophisticated tools that will help the decision maker employ the right course of action that is founded by the existing truth or fact in the socio-economic environment. In this regard, market research is able to understand customer behavior, market segments and other essential opportunities for successful marketing activity in a certain industry. It is evident that Apple Inc and PepsiCo are not just facing challenges due to tough competition, but more likely due to the prevailing customers’ trends of needs and wants in the market. In this case, it is important to understand how they should innovate, but in the case of Apple, such dilemma can be addressed by morphing or abandoning a business model. In the case of PepsiCo, acquiring existing firms in order to augment potential market share and power is necessary while taking into account the high value for customer relationship. In this regard, it is necessary to consider a new business model that will guarantee business survival in the future. A business model that is aimed to promote business survival is important because of the prevailing tough competition. Apple Inc should continue to be more innovative and creative in its approach, while PepsiCo should further look for more opportunity in order to address prevailing market trends. 3. Conclusion In a nutshell, Apple Inc and PepsiCo are two important companies in the world today having remarkable market share and sustainable competitive advantage due to their existing unique and innovative marketing strategies, especially in the international setting. These companies are not only unique in their approach, but are also continuously doing their part to become more innovative and unique in their approach. However, this cannot guarantee them not to face certain challenges at some point. In fact, Apple Inc and PepsiCo are faced with various challenges. In order to address these challenges, it is important that Apple Inc and PepsiCo should continue invest in a sustainable business model that will guarantee their competitive advantage. It is therefore important to understand that the prevailing international marketing strategies may have to evolve, which means that the business model may be continuous in its adaptation of the constantly changing international market. References Isenberg Marketing (2012). PepsiCo Marketing Strategy. Retrieved from http://isenbergmarketing.wordpress.com/2013/10/29/pepsico-marketing-strategy-by-paige-ryder/ Khatua, S (2014). Surviving Disruptive Technologies. Retrieved from http://www.ca.com/us/lpg/ca-technology-exchange/surviving-disruptive-technologies.aspx Moorman, C. (2012). Why Apple is a Great Marketer. Retrieved from http://www.forbes.com/sites/christinemoorman/2012/07/10/why-apple-is-a-great-marketer/ Morris, B. (2008). What makes Apple golden. Retrieved from http://archive.fortune.com/2008/02/29/news/companies/amac_apple.fortune/index.htm Shaikh, S. (2014). Global Market Scenario – Apple Inc. Retrieved from http://www.slideshare.net/shanu2eye/global-market-scenerio-apple-inc Appendix Figure 1. Survival Model (Khatua, 2014) Read More