How Pepsi Company Can Expand International Market and Chinese Market - Business Plan Example

Company Analysis: Pepsi Company April 2, How Pepsi Company can expand international market, especially for Chinese market Introduction Marketing entails several strategies. The strategies focus on implementing the best product and price strategies. Further, the strategies include setting the viable promotion and place strategies. Pepsi Company must implement more effective marketing and management strategies to keep abreast of Coca Cola Company’s international marketing outputs. Pepsi Company should occupy more international markets Pepsi Company needs more international Markets (Czinkota, 2012). With the growing global population, especially in China, the market for the Pepsi Company food and beverage products continues to increase. Consequently, Pepsi Company must fill the needs of the growing global food and beverage market. To ensure higher global revenues increase, Pepsi Company must prioritize selling the Pepsi Company products in the China market. Entering the China market significantly increases Pepsi Company’s global revenues and profits. Further, Pepsi Company must innovative create products that fill the needs of niche market (Martin, 2010). Pepsi Company must continue to produce new sports drinks that cater to each sports enthusiast’s unique vitamin, mineral, protein, and energy drink needs. Pepsi Company must create a new tea- based product for the huge China tea customer market. Pepsi Company should sell Halal (food allowed in Muslim countries) food and beverage alternatives to Muslim countries. In terms of global revenues, Pepsi Company aims to keep abreast of its better performing rival (Hennessey, 2010). To achieve this global aim, Pepsi must continue to sell more products to its current and future customers. More products include selling new products that cater to the changing food and beverage needs of the global market customers. Next, Pepsi must allocate the optimum funds to promote the company’s Pepsi Company food and beverage products. Promotion includes hiring movie stars to rally the current and future customers to buy the Pepsi Company products. Third, Pepsi Company must sell its Pepsi Company food and beverage alternatives at reasonable prices. Fourth, Pepsi Company must ensure the Pepsi Company products are within the arms length reach of current and future global customers. Analysis of PepsiCos international expansion The PepsiCo’s international expansion started from its humble United States beginnings. The company merged with other companies in order to increase its total revenues. During the 1880s, PepsiCo was created by Caleb Bradham, a business person and a pharmacist. Bradham Southeastern Conference football games up the company in North Carolina. Initially established in Delaware during the 1919 period, the company filed for bankruptcy during 1931. Consequently, Charles Guth acquired the Company by using the funds of Loft Corporation. The lawsuit resulted to Loft acquiring PepsiCo. The company is currently headquartered in New York. To ensure a more profitable United States and international presence, PepsiCo acquired or merged with other popular brands. The acquired the popular Frito –Lay brand. Next, PepsiCo acquired Tropicana Products brand, which focused on filling the orange juice needs of current and future customers. PepsiCo invested in Quaker Oats, the oatmeal company. Quaker Oats owned the popular Gatorade sports drink brand. Quaker Oats also owned the Chewy Granola Bars, a breakfast and snack popular alternative. PepsiCo acquired Pepsi Bottling Company as well as Pepsi Americas for an estimated $ 6,990 billion figure. Further, PepsiCo acquired the entire outstanding shares of Wimm-Bill0Dann Foods. The acquired company is a Russian Company that focuses on the milk, fruit juice, yogurt, and other milk-related products. The acquisition allowed PepsiCo to enter the Russian food and beverage business. Furthermore, PepsiCo’s international marketing presence included withdrawing investment from certain markets to focus on the food and beverage line of business. PepsiCo withdrew its funds from the Pizza Hut hamburger-based restaurant brand. Likewise, PepsiCo withdrew its ownership of the Taco Bell shares. The company decided to likewise withdraw its investments in North American Van Lines, Subway KFC, and D’ Angelo Sandwich Shops. Other information In 1991, Pepsi Company and Unilever entered a joint venture (Czinkota, 2012). The venture was meant to increase the marketing presence of the combined companies’ international targets of the Lipton tea beverage product. The merger between the two companies generated a successful entry into 40 new countries during 1991. The same international marketing efforts resulted to the two companies’ 200 percent increase in net global revenues. Similarly, the favorable merger between Unilever and Pepsi Company strengthened the international demand for the other Pepsi Company products in the forty new country segments. Specifically, the merger resulted to Unilever gaining eleven new countries into its 2007 list of controlled country segments. In 2008, Pepsi Company’s merger with Unilever led to the acquisition of Tazo Company. The merger included marketing of Starbuck’s Tazo coffee beverages within the American market segment. In 1994, Pepsi Company created a bigger merger. The merger included Unilever and Starbucks (Czinkota, 2012). The merger initially targeted the coffee market segments within the United States. The merger focused on marketing some coffee alternatives. One of the alternatives is Frappucino coffee. Another alternative is Doubleshot Espresso. A third alternative is Doubleshot Energy Coffee. Starbucks acquired Tazo Company. The Tazo Company supplies the tea leaves to the various Starbucks coffee outlets. In 1997, Pepsi Company acquired certain businesses in order to increase the present of its food and beverage alternatives. Pepsi Company acquired a certain percentage of Pizza Hut. Next, Pepsi Company invested in Taco Bell. Third, Pepsi Company invested in Kentucky Fried Chicken. ‘By entering in the restaurant and other food businesses, Pepsi Company was able to promote the Pepsi Company products to customers patronizing the Taco Bell, Kentucky Fried Chicken, and Pizza Hut establishments (Gaughan, 2005). As of December 32, 2013, PepsiCo’s global operations met the profitable level goals. Table 1 (Appendix) shows the company’s 2013 net revenues amounted to $66,415 million. The figure is higher than the prior year’s $65,492 million net revenues. During 2013, the company’s international marketing gross revenues amounted to $35,173 million. The 2013 figure is higher than the prior year’s $34,201 million gross profit performance. Further, the company’s 2013 international marketing efforts’ net income output reached $6,740 million. Definitely, the figure is higher than the prior year’s $6,178 million output. The table 1 shows the effect or result of PepsiCo’s international marketing efforts. In terms of revenue, the company generated $ 55.4 billion revenue during 2013. The amount is higher than Coca Cola’s $46.8 billion revenue generated during the same year. The average food and beverage industry generated an average of $66.4 billion revenue. Further, Coca Cola performed financially better than PepsiCo in terms of Net Income data. PepsiCo had generated $6.7 billion financial performance net income during 2013. The table shows PepsiCo per share amount is lower than competitor Coca Cola’s 8.6 billion net profit output. Analysis of Coca Colas international expansion Coca Cola Company manufacturers the popular Coke beverage. Its headquarters is in Atlanta, Georgia. The coke formula was originally concocted by one pharmacist, John Pemberton. To increase the company’s total international revenues, the company acquired other popular brands. One of the brands is Minute Maid orange drink. Likewise, Coca Cola acquired Thums Up, another cola from India during 1993. Another favorable Coca Cola acquisition is the Barq’s brand during 1993. Coca Cola’s popular brands include Tab, Fanta, and Sprite (Hennessey, 2010). Further, Coca Cola ballooned from selling only one product, Coke soft drink, to selling an estimated 3,450 different food beverage market segment alternatives. In 1985, Coca Cola had to resolve its high sugar content in order to appease the weight watchers and other health conscious groups. Nutritionists warned that Coke’s high sugar (fructose) content leads to obesity or diabetes. Consequently, the demand for soft drinks declined. To cater to the health conscious public, coca cola focused on selling healthy beverage alternatives (Spalton, 2010). One of the alternatives is bottled mineral water. During February of 2008, Coke acquired a 40 percent share in the Honest Tea Company to serve the needs of the health-conscious customers. (Murphy, 2013). Further, Coca cola’s international expansion contributed to the company’s outperforming Pepsi Company in several market segments (Rosenbloom, 2013). Coca Cola’s use of guerilla marketing strategy is one of the keys to its generating higher market penetration and revenue generation over Pepsi. Guerilla marketing entails being the first to enter into new or uncharted market segments. In China alone, Coca cola generated 25 percent China market demand as of 2010 (Hartline, 2007). Next, Coca Cola hires the services of popular stars to promote the Coca Cola Products (Adamson, 2007). A good example is Coke’s hiring of the promotional services of the Indian teenage superstar Hrithik Roshan to promote the Coca Cola products (White, 2009). By hiring the stars to promote the Coca Cola products, the people are persuaded to implement their star or idol’s promotional messages. Consequently, the demand for the Coke products significantly increases (Lamb, Essentials of Marketing, 2010). In 2007, Coke’s international marketing strategy includes selling products that fill the unique needs of different market segments (DuBrin, 2009). One of the market segments is the Coke Zero market. The market caters to weight conscious current and future customers. The Coke Zero was an instant success in the Australia market segment (Lamb, Marketing, 2012). Moreover, Coke also fills the beverage needs of different markets. One such market is the diet conscious pubic. To fill the market need, the Diet Coke contains small amounts of fat-inducing ingredients. Some current and future customers prefer the Full Throttle Blue Demon beverage over the regular Coca Cola beverage choices (Lamb, Marketing, 2012). In 1989, Coke’s marketing strategy including reformulating its drinks. The reformulation included making the coke product taste very popular among the current and future customers. For example, Coke reformulated its Fresco beverage product to Power Ade to cater to the sports drink needs of the current and future active sports enthusiasts and athletes (Michman, 2003). One Coke strategy is to enter into an exclusive contract with stores, restaurants, and groceries (Buttle, 2009). 3) Why competitors’ global performances are better than Pepsi Company 3a. Product To ensure PepsiCo’s international marketing success, Pepsi Company must replicate Coca Cola’s more effective marketing strategy. Pepsi Company must focus on marketing different food and beverage brands. The company must continue to sell new food and beverage products. The new products must fill the needs of the current and future global customers’ food and beverage needs. The company must produce new healthy product alternatives for health conscious target markets. The company must sell new sports drinks to fill the drinking needs of the athletes. 3b. Promotion To replicate Coca Cola’s better marketing strategy, Pepsi Company must replicate Coca Cola’s more effective promotion activities (White, 2009). The advertisements must focus on targeting the teenage customers in India to patronize the Pepsi Company products (Martin, 2010). In India, Coca Cola paid the Indian teenage superstar Hrithik Roshan to promote the Coca Cola products (White, 2009). In response, Pepsi Cola hired an unknown person who looked and talked like the Indian teenage Superstar Hrithik Roshan to promote the Pepsi Company products. The Pepsi Marketing plan backfired. Angry Roshan fans protested Pepsi Company’s unfavorable marketing strategy. In fact, Hrithik Roshan sent a complaint letter to Pepsi Company to protest the unethical advertising strategy. Pepsi representatives automatically denied their advertisements had any semblance or reference to Hrithik Roshan. Consequently, a huge percentage of Hrithik Roshan fans rallied to boycott the Pepsi Company products in India. Unethical marketing should be banned (Thompson, 2010). Just four years prior, Pepsi spent advertising to humiliate Coca Cola (White, 2009). Pepsi Company’s advertisements criticized Coca Cola’s being an official sponsor of the 1996 Cricket World Cup. This is wrong advertising (Witcher, 2010). The Pepsi attacked Coca Cola for using the word official to indicate Coca Cola is the unethical sponsor of the regularly schedule Cricket championship. The Pepsi advertisement backfired. Instead, Pepsi promotion must focus on selling the benefits of consuming each Pepsi Company food and beverage product. The advertising war that attacks Coke should be reduced to allowable levels. 3c. Price Pepsi Company must implement better pricing strategies in order to outsell Coca Cola products (Samson, 2012). Pepsi Company must implement market-based pricing of its food and beverage products. For example, Coca Cola started the India market segment 2003 price war against Pepsi Company. Coca Cola priced its 200 ml coke products at only 200 Rs 5 in the India market. Coca Cola advertised the company’s products as significantly priced lower than its major competitor, Pepsi Company. In response the price drop of Coca cola, Pepsi marketed its 300 ml Pepsi products at only Rs 6. This clearly shows that the Pepsi products were priced lower than the Coca Cola products. Pepsi Company was forced to reduce its prevailing Rs 8 per 300 ml Pepsi product price to the lower Rs 6 per 300 ml Pepsi product. Pepsi Company decided not to compete with Coca Cola in the 200 ml food and beverage market segment (Prasch, 2008). Pepsi Company’s logic in above marketing scene is correct (Prasch, 2008). Since Coca Cola was the first to enter the 200 ml market segment at Rs 5 per can, Pepsi management felt that entering the same 200 ml market could be marketing blunder. Pepsi Company management admitted that the company does not have the technology to enter the manufacture and sale of the 200 ml food and beverage market. Forcing itself to enter the 200 ml market is projected to generate huge marketing losses for Pepsi Company (Saxena, 2010). People include the reference value when determining whether the price pegged on each Pepsi or Coke brand is priced just right, priced unfavorably high or priced at low prices (Rao, 2009). 3d. Distribution channels Pepsi must increase the number of mergers and joint ventures in order to outsell Coca Cola’s global presence (Ghani, 2009). Global product presence contributes to increased global demand for the Pepsi Company products. Pepsi Company must increase the use of effective distribution channels to increase global revenues. For example, Starbucks entered into a merger agreement with Pepsi to market Starbuck’s coffee-based products. The initially, Starbucks sold its coffee products within its coffee shops. To increase revenues, Starbucks sold its coffee alternatives on grocery shelves and other store shelves. Consequently, more people were able to savor the popularity of the unique Starbucks coffee blends. With the approved marketing agreement, Pepsi would market the Starbucks coffee products (Shah, 2009). Pepsi agreed to market (distribute) Starbucks’ Frappucino coffee blend and Doubleshot coffee blend. Pepsi sold the two Starbucks coffee blends in all outlets where Pepsi products are similarly sold. As a result, the global sales of the two Starbucks products increase. Pepsi generates the corresponding revenues from the sale of the Starbucks coffee blend products (Lamb, 2008). 3f. Company culture To sell more products than Coca Cola Company, Pepsi Company culture must incorporate the country’s culture in the marketing strategies (Menipaz, 2011). The company culture includes experimenting with new market segments. The entry into uncharted new market segments contributes to the increase in Pepsi Company’s total international revenues. The company must hire a popular Malaysian movie Star to promote the Pepsi Company products in Malaysia. Similarly, Pepsi Company must hire a popular Brazil basketball player to promote Pepsi’s sports drinks in Brazil. 2. Recommendations There are viable recommendations to improve Pepsi Company’s international performance. First, Pepsi Company must continue its plans to expand its marketing presence in the Chinese market. The company will sell all its globally popular brands in the China market. Initially, Pepsi Company entered China during 1981. The company invested $1 billion in the China Market during this time period. The aim was to increase the demand for the Pepsi products. (Rarick, 2009) 1) Product strategies for Chinese market The most saleable internationally sold product is Pepsi soft drink. PepsiCo’s second highest internationally selling product is green colored Mountain Dew soft drink. PepsiCo’s third highest internationally selling product is Frito-Lay Company’s Lay’s potato chips brand. PepsiCo’s 4th highest internationally selling food and product is the Gatorade sports drink. PepsiCo’s 5th internationally marketed product is Diet Pepsi brand. PepsiCo’s 6th highest internationally selling product is the Tropicana beverage. PepsiCo sells the popular 7-up soft drink brand to customers outside the United States. PepsiCo’s other internationally marketed products include Doritos Tortilla Chips brand, Lipton Teas brand, Cheetos brand, Quaker Oats breakfast food alternatives, and Mirinda soft drinks brand. By selling more products in the international market, the company is able to serve the food and beverage needs of different international target markets (Schermerhorn, 2010). Further, another research conducted on the Pepsi Company’s entry into the China market reveals several important business facts (Czinkota, 2012). First, the Chinese demand for soft drinks is significantly lower than the current and future customers demand within the United States communities. One reason is the Chinese people’s traditional preference for the health benefits of tea. Second, Coke had already entered the China market. Being the first to arrive in the China scene, Coke had learned the different marketing strategies needed to increase the Chinese people’s demand for the Coke products (Hartline, 2007). By Implementing trial and error marketing strategies, feasibility studies, and other related culture-based researches, Pepsi can replicate Coke’s prior China entry success. Pepsi Company can use the same Coke marketing strategy to easily penetrate the once impenetrable tea-based China Market. Pepsi Company can use the Coke marketing research, composed of many years of proven marketing strategies that successfully persuaded many China residents to patronize the Coke products, to create a similar demand for the new Pepsi products. After many years of implementing effective marketing strategies, Coke was able to capture one fourth of the China market during 2010 (Hartline, 2007). Next, Pepsi can implement product research strategies on China’s own local version of the Cola, Wahaha Future Cola. The local cola enjoys a very high current and future China customer base. The local cola, Wahaha Future Cola, is the most popular cola drink China during 2010. Wahaha Future Cola is more popular than the imported Coke Cola alternative product (Hartline, 2007). As proof, the manufacturers of Wahaha Future Cola generated more than U.S. $ one billion sales during 2010 alone. The research will help Pepsi Company formulate a competing cola that has a closely similar taste as the local Wahaha Future Cola. This strategy will easily generate sales from current Wahaha Future Cola loyal drinkers. 2). Promotion strategies for Chinese market Pepsi Company’s promotion strategy must include allocating more funds for the promotion (advertising) of the benefits of consuming the Pepsi Company food and beverage alternatives. The company must pay popular artists or stars to promote the Pepsi alternative products. Next, the company must sell products that cater to the health-conscious current and future customers (Martin, 2010). The company must implement more market- responsive company promotion strategies. The Pepsi Company must incorporate the China culture in the marketing strategy. The company should cater to the tea beverage needs of the China residents. This can be done by selling tea beverages to the local residents. One such culture is the China people’s preference for tea beverages, selling tea products to China’s Tea beverage customers. The company hires local China stars to promote the Pepsi Company products in order to create a China culture demand for the Pepsi Company food and beverage products (Hennessey, 2010). Pepsi Company cannot ignore the temptation to promote its globally popular production in the China nation’s huge market segment (Shah, 2009). With the huge geographic size of the nation, the Pepsi Promotion strategies will significantly increase Pepsi Company’s global food and beverage revenues. The increase in revenues will translate to higher global net profits. As of 2010, China’s current and future customers reached the one and one half billion current and future customer level. China is the world’s second nation, in terms of the most number of residents. Consequently, the entire China target food and beverage market is equal to one fifth of the world’s total current and future customers. In fact, the total current and future customer population of China is bigger than the total population of the United States. The United States’ current and future customer base represents only four and one half percent of the world’s total current and future customer base. Further, the growing number of middle class citizens in China is a very enticing marketing target. The middle class can afford to buy the Pepsi Company food and beverage products. This is the reason why many United States companies continue to set up stores in highly population cites in China. During 2010, China’s middle class will equate to a demand for $500 billion goods, including the Pepsi Company food and beverage alternatives (Czinkota, 2012). To generate a high demand for the Pepsi Company’s food and beverage products, Pepsi Company marketing strategies must incorporate the Chinese culture into the company’s marketing plans. The company must learn the different Chinese languages in order to communicate the many benefits of consuming the Pepsi Company products. Further, the Pepsi Advertisement must not prioritize attacking Coca Cola. Attacking Coca Cola through an advertising war only propped up Coca Cola as the more sophisticated beverage, compared to Pepsi Company’s alternative drink, creating an impression on the people that Pepsi is jealous of Coca Cola’s bigger customer demand. The same Pepsi Company ads created a favorable impression on the Indian teenagers. The same Pepsi Company ads were liked by the Indian free thinking as well as independent groups (Yaverbaum, 2011). Some marketing professionals saw the advertising attacks between Coca Cola and Pepsi Cola as barrels of fun entertainment that amused and created a higher demand for both the Pepsi Company food and beverage products and the Coca Cola food and beverage products. 3). Price strategies for Chinese market Pepsi Company must implement more effective price strategies. The company must sell the Pepsi Company products at reasonable prices. The reasonable price does not equate to the lowest price. The Pepsi Company products must be sold at prices that take into consideration the prevailing prices of the competitors. The prices may either be slightly higher than the competitor’s prices. If the quality of the Pepsi product is better than the competitor’s price, then the Pepsi product can be priced significantly higher the Coca Cola Company’s competing products. The competitors include the Coca Cola Company (Hennessey, 2010). Pepsi must implement the better market based pricing. Market- based takes into consideration the market factors in pricing its products. Pepsi Company takes into consideration the competitors’ food and beverage prices. Pricing the Pepsi Company products are unreasonably higher prices than the competitor Coca Cola products, the current and future customers’ demand for the Pepsi Company products will decline. On the other hand, setting the prices of the Pepsi Company products are significantly lower prices than the competitors’ products will increase the current and future customers’ demand for the Pepsi Company products. 4).Distribution channels strategies for Chinese market Pepsi Company must implement more effective distribution channel strategies. Pepsi Company must enter into joint venture agreements with local Chinese companies. The local China –based venture companies will focus on increasing the demand for the Pepsi Company products. The local China joint venture partners must help Pepsi set up the most effective distribution channel s within China. Pepsi Company will enter into joint venture agreements to ensure a viable supply chain is firmly in place. Pepsi Company must conduct a feasibility study to determine current and future customers’ food and beverage demands (Witcher, 2010). By selling the Pepsi Company products in more grocery stores, malls, restaurants, and other places where people need a beverage increases the demand for the Pepsi Company products. The people trust the Pepsi Company brand. Decades of marketing the company products contributed to the current popular demand for the Pepsi Company products. Selling the company’s products in attractive containers contributed to the increasing demand for the company’s products. Pepsi Company’s selling its Aquafina bottled mineral water product using wide mouth containers in its grocery stores and other beverage stores contributed to the higher demand for the another trusted and easier to consume Pepsi product, Aquafina bottle water (Adamson, 2007). 5). Company culture strategies for Chinese market The company must implement more market- responsive company culture strategies. The Pepsi Company must incorporate the China culture in the company’s marketing strategy. The company should cater to the tea beverage needs of the China residents. This can be done by selling tea beverages to the local residents. One such culture is the China people’s preference for tea beverages, selling tea products to China’s Tea beverage customers. The company hires local China stars to promote the Pepsi Company products in order to create a China culture demand for the Pepsi Company food and beverage products (Hennessey, 2010). For example, Pepsi Company can introduce a new product in the China market. The product introduced the new product that is similar to Pepsi Fire in China in in order to determine the profitability of marketing the new product. If the product is successful in China, the company will sell the product in other countries around the world. However, the company will be discouraged from selling the Pepsi Fire product in other countries if the China marketing efforts show there is a dismal or unpopular demand for the new product (Menipaz, 2011). The company can hire the services of one of China’s popular stars to promote the new Pepsi product. Just like in Pepsi Company’s hiring the Thailand group is the Thailand pop diva, Tata Young to promote the Pepsi Fire product, Pepsi can hire another popular Chinese movie actor to promote the new product. Pepsi’s prior hiring of one of Thailand’s popular star, Vanness Wu of the famous F4 group, to successfully and profitably promote another new Pepsi product, Pepsi Ice, in Thailand proves hiring a Chinese movie star will increase the local China demand for the new Pepsi products. Further, the Pepsi Company must increase its penchant for marketing other new products in China. The new products will be based on Pepsi’ Company’s conducting a feasibility study. The feasibility study includes conducting a survey on the target China market on their beverage preferences. The preferences may determine the best the size, color, sugar ingredient content, alcohol content, taste, and design of the new Pepsi products to be launched in the China market (Burkard, 2011). One of the benefits of conducting feasibility studies is cost savings. If the feasibility study shows the product has low or unpopular demand, the company is able to stop the marketing of the product on an international scale. Consequently, the company will generate lesser production and marketing costs within China compared to generating several times higher production and marketing costs to sell the same unprofitable product in more than 40 countries around the world. Furthermore, another culture benefit is focusing on the expertise. Learning which marketing strategy fits to the unique pilot or country market segment, the Pepsi Company is able to create mastery of the marketing process. The company learns which advertising theme will persuade one market segment to buy the advertised products. For example, the company must develop a marketing plan that fills the food and beverage needs of teenagers. The company must develop another marketing plan that fills the food and beverage needs of adult residents. Lastly, Pepsi Company must produce advertising that sells products needed by sports enthusiasts and athletes. Since the television commercials are shown to audiences within one country, Pepsi Company culture is correct in making its new products available to all current and future customers within the country. It would be less favorable to advertise the company’s new products to a nationwide broadcasting television and only sell to targeted clients within one city, one country, or one province. Business analysis of the one country’s pilot marketing experiment will serve as basis for determining whether the company, especially Pepsi Company, to expand the marketing efforts to the bigger international market stage. Further, Pepsi Company culture must include several marketing strategies (Daft, 2011). The company should continue selling new products. The new products will increase the company’s global revenues. The increase in international revenues will lead to higher international profits. The company focuses on selling products that are beneficial to the society or target markets. The pilot tests are done to determine if the pilot marketing efforts will result to the new product surpassing exhaustive product testing stages (Shah, 2009). 6) Joint-Venture Expansion for Chinese market Fifth, the company can enter joint venture with grocery stores, malls, restaurants, and other establishments. The joint venture will focus on selling the Pepsi Company products on the stores’ shelves, the mall’s store shelves. The joint venture with local China restaurants will ensure the distribution and sale of the Pepsi Company products in the China restaurants. The joint venture will include other local China supply chain partners. These partners will prioritize the prompt delivery of the Pepsi Company products to stores, malls, restaurants and other places where the current and future customers can easily purchase the Pepsi Company products (Spalton, 2010). Further, Pepsi Company’s entry into the uncharted China market requires the cooperation and coordination of local Chinese companies. The cooperation and coordination will go a long way to increasing the local residents’ demand for the unfamiliar new Pepsi food and beverage choices. When Pepsi recently entered the unfamiliar China market, Pepsi Company entered into partnership agreements with several China entities. As of 2010, Pepsi Company entered into an estimated 30 joint ventures with local companies. In exchange, the local China companies agreed to do their share to promote the new Pepsi Company food and beverage products (Hartline, 2007). As expected of new companies are entering into unfamiliar marketing segments, creating demand is the first priority. However, the first priority is not a smooth marketing ride. Pepsi Company was barely able to generate profits during its initial entering into the China market, despite the size of the targeted market. However, Pepsi Company is positively waiting for the current demand for the company’s products to slowly but surely expand. The local Chinese joint venture companies are instrumental in ensuring that the creation of bigger China population demand is hastened (Hartline, 2007). In 2010, Pepsi Company earmarked an estimated U.S. $849 million investment to set up plants, set into place effective distribution channels, and responsive supply chain partnerships. The investment will be done in installments. The installments were envisioned to be completed within three years. Previously, China had already entered the China market during 1985. The 2010 investment is expected to increase demand for the Pepsi Company products at 25 percent per year for the next 25 years (Hartline, 2007). Conclusion Based on the above discussion, marketing includes setting into motion several strategies. The strategies include choosing the best product and price alternative. Further, the strategies incorporate the most responsive promotion and place strategies. Evidently, Pepsi Company must implement more effective marketing and management strategies in order to replicate Coca Cola Company’s better international marketing performances. References: Adamson, A. (2007). Brand Simple: How the Best Brands Keep its Simple and Succeed. New York: Palgrave MacMillan Press. Burkard, N. (2011). Market Segmentation and Branding. New York: Grin Press. Buttle, F. (2009). Customer Relations Management. New York: Elsevier Press. Czinkota, M. (2012). International Marketing. New York: Cengage Learning. Daft, R. (2011). Management. New York: Cengage Learning. DuBrin, A. (2009). Essentials of Management. New York: South-Western Press. Gaughan, P. (2005). Mergers. New York: J. Wiley & Sons . Ghani, K. (2009). Integration of Supply Chain Management. GBMR Journal , 1 (3), 97-104. Hartline, M. (2007). Marketing Strategy. NewYork: Cengage Learning. Hennessey, D. (2010). Global Marketing. New York: Cengage Learning. Lamb, C. (2010). Essentials of Marketing. New York: Cengage Learning. Lamb, C. (2008). Marketing. NewYork: Cengage Learning . Lamb, C. (2012). Marketing. New York: Cengage Learning. Martin, F. (2010). Strategic Management. New York: Cengage Learning. Menipaz, E. (2011). International Business. New York: Sage Press. Michman, R. (2003). Lifestyle Marketing. New York: Greenwood Press. Murphy, P. (2013). Ethics in Marketing. New York: Routledge Press. PepsiCo Financial Report, retrieved April 2, 2014 from Read More