Pepsi Company Strategic Management

Pepsi Company products

Pepsi Company sells a wide portfolio of products ranging from beverages to snacks in their markets across the globe. These products fall under the main categories, namely fun-for-you, good-for-you, better-for-you, and 22 mega brands (Good-for-you products, n.d.). Fun-for-you products are at the centre of the company’s food and beverage product sales with great taste being important. The products are Pepsi, Pake-taxo, Doritos and Simba.

Better-for-you products have ingredients added based on the globally recommended quantities to ensure healthy eating and drinking. Products in this category include low sugar and fat content products such as Twists, and baked lays that are not only delicious but also nutritious. Good-for-you products offer customers good nutrition with. This category includes functional benefit products, for example, those designed to enhance athletic performance. They include Quaker, Tropicana, Izze and Stila. In fact, many people participating in physical activities, such as athletics, have remained committed consumers. It is documented that each brand enables the organisation to achieve more than $1 billion (2012 PepsiCo Annual Report, n.d.).

Haven’t Found The Relevant Content? Hire a Subject Expert to Help You With
Pepsi Company Strategic Management
Post Your Own Question And Get A Custom Answer
Hire Writer

Business model

The firm uses a business model that is based on social and environmental responsibility. This approach focuses on a commitment to sustainable growth and empowering people to achieve organisational trust (Kapferer, 2012). The sustainability model results in an innovative and result-oriented culture through effectiveness and efficiency in all operations. People empowerment enables them to be creative and take personal initiatives for the best interests of the company. The company focuses on improving the aspects of trust and responsibility to ensure continued market growth through customer trust and improved process efficiency.

The business model is driven by six operating principles. First, the company cares for its customers, which implies striving to achieve customer satisfaction. Second, products are designed based on organisational belief and trust. Third, honesty is adopted in all operations. Fourth, the balance between short and long-term goals is maintained for sustainability in operations of the organisation. Fifth, enhancing workplace diversity and inclusion of sources of new ideas, innovativeness, and market growth. Finally, the model is based on mutual trust and respect for all stakeholders to enhance collaboration and communication for common objectives. In the business model, advertising is a major aspect of operations because it contributes to brand recognition across the world (Kapferer, 2012).

Increasing revenue

The business establishment increases revenue through six main ways. First, the company reinforces its current value drivers, which are the major global brands retailed in the best markets. Second, the organisation ventures into various markets through advertising its products in the good-for-you category. Third, the company concentrates on the benefits achieved on the premises of the firm’s diverse products that complement each other to achieve cost advantage, capability sharing, and commercial benefits. Fourth, the company continually develops new capabilities through an organisational structure that fosters entrepreneurship at the country and regional levels. Fifth, Pepsi Company increases revenue through teamwork and organisational culture of innovativeness with customer satisfaction at the centre of operations. Finally, the company focuses on sustainability and performance with long-term goals as key drivers.

PepsiCo marketing

In its marketing strategy, the firm realises the importance of ensuring responsible and honest communication (Kapferer, 2012). Marketing of the company’s products is based on different localities. Local or regional bottlers determine what to market to consumers based on their tastes and demand, among other aspects of the markets. The organisation enhances promotion and communication mainly through celebrity endorsement.

Furthermore, event sponsorship, newspapers, the internet and other media channels are important platforms utilised in marketing. Promotion in outlets is achieved through great pricing and discounts, which attract customers. In the face of technological advancements, e-marketing through short messages and email marketing are important (Fripp, 2013). In addition, the marketing department of the firm has adopted social media platforms. Examples of these include Facebook and Twitter, among others.

Challenges facing PepsiCo

PepsiCo faces the challenge of economic downturns, which affect the buying power of consumers because they tend to prefer value brands to loyalty brands (2012 PepsiCo Annual Report, n.d.). This is a big challenge because the company has to continue with its marketing and customer retention strategies. Environmental issues pose a challenge to PepsiCo because the firm company has to comply with strict environmental regulations in the waste disposal and reuse. The market is continuously being health-conscious, which implies that the company must continue to produce and increase low sugar and fat products. There is the challenge of intense competition from Coca Cola and Gourmet Cola (Fripp, 2013).

Recommendations

From the report, it is apparent that PepsiCo remains a strong global brand that is committed to achieving its mission and strategic objectives. Popular for the company’s customer focus and quality of products, there are no major strategic transformations needed. However, the company could improve in three major areas. First, considering the growth in healthy eating, the company should continue growing the human sustainability approach in product design. Second, enhanced participation in social development projects, especially in the developing world. Finally, the company can grow its market share by targeting the ageing population.

References

2012 PepsiCo Annual Report. (n.d.). Web.

Fripp, G, 2013, PepsiCo’s Strategic Focus. Web.

Good for-you products. (n.d.). Web.

Kapferer, J. (2012). The new strategic brand management advanced insights and strategic thinking (5th ed.). London, United Kingdom: Kogan Page. Web.

MyhomeworkGeeks

Why Hire a Professional Essay Writer from MyHomeworkGeeks

Quality Urgent Essays

Domyhomeworkk online platform provides the best essay writing service ever received elsewhere, thanks to our professional essay writers. Experience gained in the 10+ years of being in the assignment writing industry is also an added advantage.

Professional and Experienced Academic Writers

A lot is done to maintain us as the best essay writing service provider. Besides owning a degree from a recognized university, a writer must pass the rigorous tests we take them through before they are considered eligible to offer urgent essay help on our website.

Affordable Urgent Assignment Help

Who said a reliable website should not be cheap also? While it is human nature to associate prices with quality, that does not always work. At domyhomeworkk.com, we guarantee you cheap and urgent essay help without compromising the quality.

24/7 Available Urgent Essay Writing Service

Whether it is a ‘write my essay for me cheap’ or ‘edit my essay’ order you want to request, always feel free to reach us at any time of the day. Our experts work in shifts to ensure that you access urgent essay writing services at any time of the day.

Plagiarism Free Essays Online

The punitive measures that come with plagiarized content are so harsh, and we understand that. We consequently ensure to write each client’s papers from scratch no matter how urgent the essay is. To acknowledge borrowed content, our quick writer references and cites the work.

Wow Customer Support 24/7

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

So much stress and so little time? Take care of yourself: let us help you with your tasks. We offer all kinds of writing services.

Essays

Custom Essay Writing Services

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission and Business Papers

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Editing

Editing and Proofreading

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Coursework

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

Have a homework question? Get help from verified tutors now!