Marketing Strategies - Pepsico's Action Plan for Three Years - Example

Action plan for years 2010, 2011 and 2012 Pepsico is a transnational organization which has consumers base all over the world. As a result of its future growth population trends it is therefore important for the organizations to address challenges related to diversity. The company needs to address issues such as water scarcity, health consciousness and accessibility of consumers to the product. To produce more bottled and canned drinks for the growing demand, PepsiCo needs constant water supply (Datamonitor, 2009). Given the fact that the world is experiencing large climatic conditions in water levels reduction, PepsiCo can tap areas where it can actually get enough water to produce both aerated soft drinks and mineral water. This therefore requires that Pepsico actually associate itself with the World Bank which actually will enable it to have enough water for its production as well as get enough support from the investment partners hence minimizing financial implications. This will act as the best solution for Pepsico Company to enjoy the growing demand of its aerated drinks and mineral water. Additional Pepsico Inc plans to cut out the Sodium that will be used in the manufacturing of this drink for the next three years with the main aim of increasing the health conscious of shoppers. Moreover, the in order to attract more customers for the Pepsi X drinks then the company is planning to cut down the average added sugar per serving person by approximately 25% by adding more grains, fruits, vegetables and low fat dairy into the drink to make it more nutritious hence attracting more customers. A part from the company reducing the levels of sodium in the drink, the company intends to fully remove all the calories and sugar levels as form of curbing sugar related diseases. As way of attracting more customers and improving expected growth the company has outlined several goals to support long-term financial performance and wider market growth. To ensure a wider market for Pepsi X in the current market for the years 2010, 2011 and 2012 the company has laid down some particular strategies which consists of achieving a sustainable long-term growth across the for the product through the holding investor meeting and offering products which are very affordable. The company intends to acquire a large market of exciting growth opportunities available around the world by sharing with the investors the established strategies and opportunities by diversifying the product through a broad distribution to reach avariety of operational advantages that are believed to be very important in acquiring high level of leverage through building a stronger and more successful company in the next coming years. The company has intentions of refreshing as well as developing the company to adjust to the changing environment through the evolving consumer needs. Therefore the company projects to set up a science –based technology which encourages innovation of new kinds of drinks as well as technology that actually meets the health conscious of the consumers. To gain a wider market growth for the Pepsi X the company intends to develop products which are tailored to the key consumers such as small children, women and boomers. The company intends to retain high level of historical performance of approximately 11 -13% core constant currency and a double digit growth in EPS for the years 2010, 2011 and 2012.To achieve this standards the company intends to high level of growth opportunities in both the developing and developing markets through the established organizational culture, brand building and developing of markets. Furthermore, for PepsiCo to achieve several performance targets and goals in relation to the selling and advertising the product it has developed several strategies as major part of the action plan for 2010-2012. Strategies for achieving the action plan for 201-2012 Increase the international revenue for the product more than double by 2012 Develop the market for Pepsi X drink in the market share by achieving high level of standards The company intends to expand divisions of the operating margins Increase cash flow in proportion to the net income growth over the three year windows Deliver total shareholders returns in the top quartile of its industry group Control/Measurements In order to ensure proper control as well as measurement of the Action plan intended to acquire high market growth for Pepsi X the organization intends to use various control measurements such as the use of Beverages Italia equipment which is actually intended to increase the total operational efficiency as it will assist the organization to measure key performance. Additionally, PepsiCo Company will use various indicators actually to trace the individual performance of the product on the market by managing the financial performance of the product in the competitive market. To ensure that the product meets the expectations of the market the company will utilize high level of information technology which actually will assist in providing constant information on market demand and the acceptability of the product by the users in the market. To evaluate if the company has actually achieved its financial growth target then the company will carry out performance measures when calculating the residue income. The residual income will be a representation of the actual income which will be calculated as a variant of ROI. The results will be used to measure the overall growth of the product in the global market.Additionallly; the calculation of return on investment will be used to determine the future financial performance of Pepsi X. Performance measurements and financial measurement will be used to track as well as trace technology to improve the Pepsi’s control and the transportation operations. Performance measurement will be used as way of establishing parameter within the organizations that ensures that particular programs and investments acquisitions reach the desired results. The main reason to why the company will use performance measurement to determine the financial growth and stability is to enable the company measure the overall performance of Pepsi X in the market. Additionally, the company will use performance measures to formulate a clear, coherent mission, strategy and objectives which will assist in evaluating the overall process of developing a marketing plan. The evaluation process will consists of tow variables thus the organizational performance and market analysis. This way will assist the organization to focus on how to improve the market demand for the product through proper market analysis. For the organization to gauge the actually performance of Peps X then a proper analysis will be done where the required standards, goals and objectives will be measured by comparing the actual performance against the set targets. In case the set targets have not been achieved as outlined in the action plan then it implies that the company will then put in place measures to achieve the desired targets by reflecting on the weakness and building on the strengths Budget (Income Expenditure Statement) Balance sheet Total Forecast Sales 1,000, 0000 Price per unit (2.50) Total Revenue AUD $2,500, 000 Total expenses Cost of production $100,000 Distribution expenses $40,000 Promotional expenses $200,000 Total costs $340, 000 Total expected revenue AUD $2,499,660 Read More