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Pepsi Strategies in 2008 - Case Study Example

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Under this strategy, the company intents to introduce fresh designs of bottle and can targeting to make sales of over twenty different cans and bottles per year in all markets. With the objective of recognizing cultural movements, it has began the process of selling the fresh packages in different countries such as Brazil, china, Mexico United States and lately Europe…
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Pepsi Strategies in 2008
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Running Head: PEPSI STRATEGIES IN 2008 Pepsi Strategies in 2008 College: 307107 Pepsi Strategies in 2008
New branding strategy
PepsiCo is a US based company dealing with bottling and restaurant business. Its major products include Pepsi-cola and Frito-Lay as its snack food product.
Under this strategy, the company intents to introduce fresh designs of bottle and can targeting to make sales of over twenty different cans and bottles per year in all markets. With the objective of recognizing cultural movements, it has began the process of selling the fresh packages in different countries such as Brazil, china, Mexico United States and lately Europe. Pepsi is using the celebrity status of some successful people and well designed packages to advertise these new brands. The packages indicates some themes such as digital technology, music and international travel that has light blue images on its normal dark blue packages. There is also emphasis on the use of television advertising that features mainly celebrities.
The focus strategy
PepsiCo is intending to conduct some major restructuring operation in 2009 by getting its business segments to achieve efficient concentration in the firm's main operations: Pepsi-cola and Frito-Lay. This would support the company in improving its position in the world of consumer packaged products globally and improve its competitiveness in the market of beverages.
Marketing Strategy
Pepsi has been in trial to promote it self by attaching its products to some causes of charitable works. In the World water day 2008, for instance, the company was in the front line in trying to help solve the universal crisis of water shortage. This was done mainly to promote the company's products. It achieved more sales through marketing which was intensively ethical and responsible as well as including the products in charitable activities. It has denoted some amount from its sales to support children all over the world to get access to clean and pure drinking water. The firm's slogan states that if the customer decides to take bottled water, then he or she would be making a major difference. The firm intents to move its water brand to out to over 40,000 merchandisers in other parts. Other major marketing strategy was through making endorsements with music, football and movie celebrities. This is expected to increase the sales of the company products.
The new marketing strategies would be successful if they get the support of the bigger community. Using such agencies like UNICEF in promoting the goods would gain long lasting support through have the feeling of being served by the advertising operation. This is a strategy for marketing that steals the hearts of the consumers through guilt and conscience capitalization. The consumers are tending to make use of the products which they feel would give positive things to the community. They are more aligned to highlighted sustainable and environmental initiatives. The company tends to prove to the world that it is taking major part in matters pertaining climatic changes and water sustainability. Pepsi as a major water company has assumed the responsibility of addressing the water challenge in a guise of environmental stewardship in order to gain roadmap in raising the firms control over the management and governance of water (Report linker, 2008).
GE/Mckinsey matrix
Market attractiveness
Attractiveness of Attractive
Weight
Rating
Weighted Score
Growth rate
0.14
4
0.56
Market Size
0.10
3
0.30
Rivalry
0.14
2
0.28
Risks
0.13
4
0.52
Pricing Trends
0.12
3
0.36
Technological advancement
0.12
4
0.48
Consumer strength
0.12
3
0.36
Competitiveness
0.13
3
0.39
Total 1.00 3.25
Business Unit Strength
Key Success Factors
Weight
Rating
Weighted Score
Market share
0.14
4
0.56
Brand Strength
0.15
4
0.60
Customer Loyalty
0.13
3
0.39
Relative cost position
0.08
3
0.24
Profit margin
0.15
3
0.45
Distribution Strength
0.13
4
0.52
Quality
0.13
4
0.48
Financial access
0.12
3
0.36
Total 1.00 3.60


Business Unit Strength
High
Medium
Low
High
Medium
Low

According to the above GE/Mckinsey matrix the company is in its mature stage of development coupled with promising prospects. The bottling segment has been highly attractive in the market as it gives the company good chance for above average market returns. It is in a position to provide good cash flow in all major segments for acquisitions, share purchases and international expansion as future strategies.
Reference
Report linker. 2008. Pepsi Bottling: Competitive Intelligence retrieved on 23 May 2009 from http://www.reportlinker.com/p053487/PepsiCo-Company-Profile.html Read More
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