Pepsi

Pepsi is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in retail stores, restaurants cinemas and from vending machines. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. Pepsi arrived on the market in India in 1988. PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Volta’s India Limited.

This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others claim that firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. These controversies are a reminder of “India’s sometimes acrimonious relationship with huge multinational companies. ” Indeed, some argue that PepsiCo and The Coca-Cola Company have “been major targets in part because they are well-known foreign companies that draw plenty of attention.

Coca-Cola

Jon Styth Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia it was May 1861 when the pharmacist concocted caramel colored syrup in three– legged brass kettle in his backyard. He first distributed the new product by carrying Coca-Cola in a jug coin enjoys in a glass of Coca-Cola at the soda fountain. Whether by design or accident, carbonated water was teamed with the new syrup, producing a drink that was proclaimed “Delicious and Refreshing”. Dr. Pemberton’s Partner and bookkeeper, Mr. Frank Robinson, suggested the name and penned as “Coca-Cola” in the unique flowing script that is still famous worldwide today. Dr.

Pemberton’s sold 25 gallons of syrup, shipped in bright Red wooden kegs. Red has been a distinctive color associated with the No. 1 soft drink brand ever since. For his efforts, Dr. Pemberton grossed $ 50 and spent $ 73. 96 on advertising, by 1891,Atlanta chemist as a G. Canler had acquired complete ownership of the Coca-Cola business. He purchases it from the Dr. Pemberton family for $ 2300. With in 4 year his merchandising flair helped to expand the consumption of Coca-Cola to over $25 million . Robert W. woodruff become the president of the Coca-Cola company in 1923 and his more than six decades of leadership took the business of commercial success making16 Coca-Cola an institution the world over. Coca-Cola begins as a never tonic, but candy merchant Joseph A. Biedenharn of Mississippi was looking for awry to serve refreshing beverages. He responded to this demand began offering bottle Coca-Cola using syrup shipped from Atlanta, during a hot summer in 1894.

Research objektive

1. Consumer preference to buy Coca-Cola and Pepsi.
2. What are the factors would you consider to buy Coca-Cola and Pepsi.
3. What is the medium through which you came to know about Coca-Cola and Pepsi.
4. To offer some finding and suggestions to the company for the improvement of It’s performance.

Need for the study

In the present scenario the competitions between the soft drinks increased very high. The companies are struggling a lot to keep up their market share in the industry and to improve the sales of their products i. e. the turnover of the company. For this the company has to know their position in the market and the opinion and the loyalty of the customers and the retailers when compared to their competitor. Because of this reason the comparative analysis is very important and useful to the Company. By the use of comparative analysis the companies can understand the position of the company and the strength of the company in the market. Through the comparative analysis we can understand that what strategies the competitors are using for the increase their sales volume.

From the study we can gather the information regarding the opinion of the consumers on the companies comparatively and this will help to plans for the future to increase the performance of the company and to gain the loyalty of the consumers when compared to the competitors.

Research Mmethodology

We have done Descriptive research to find out our objectives. In descriptive research we use the Primary and secondary data. Research methodology is the way to systematically solve the research problem. The method used for the research is Descriptive Research to find out our objectives. In descriptive research we use the primary and secondary both data, Sample Design for primary data have been collected through probability sampling.

Data is Collected through Market survey in Delhi through Well prepared structured questionnaires were used in this study, which includes both closed-ended and few open-ended questions to get information based on the objective of the research process. People of different age group from different economic background were asked to fill the questionnaire containing 13 questions. Sample Size is taken 40 out of which 4 questionnaires had been rejected due to Mistakes, which was made by the respondents. SOURCE OF COLLECTION OF DATA:- All the useful data which were require for this research has been collected through Primary and secondary date. Primary data collected through Questionnaire Secondary data collected through Internet, Magazines and Newspaper.

Inerpretation

On the basis research the facts which have come out:- Coca-Cola has a market share of 28%.
The population between 12- 30 year prefer the cola products, while population above to 50 and below 12 prefer soft drinks, and population prefer in Delhi. Only 39% population only influenced by advertisement, rest 61% population believes that Advertisements are not much effective. 71% population are loyal to words there product. 25% population beliefs there cold drink have pesticide up to some extent. 65% of population is being influenced by taste only, while 9% population by Advertisements only.

Research findings

As it was 1st research Project of our life, so it gave us lot of experience which will be very helpful in our life. On the basis of that research we find that in case of beverages people are much influenced by taste rather than Advertisements and other things. e come to know that Young generation is the biggest consumer of cold drinks than any other. By this research we analyze that male prefer cola drinks, while female prefer soft drinks. Frequency of consume to cold drinks is higher of male than female. By combining all the beverage verities we come to know that Thumps up is the market leader with 14 % total market share while Pepsi is the second highest market leader with 13% market share. If the Buying decision of consumer is rated – 1st preference will go to Taste, 2nd will go to availability, 3rd preference will go to thirsty, 4Th preference will go to Price.

Conclusion

Care was taken to interview all types of consumers, i. e.:
a. Different age groups
b. Males and females In all about 40 consumers were interviewed.
The conclusions that one can draw from these answers provided by the consumers showed that marketing activities do form a major part of the decision. One thing that was common amongst all the consumers who were once a day or once a week. The number one factors the influences a customer while buying a soft-drink was taste. This was true for all the consumers who were interviewed. The rest of the conclusions as deducted from the questionnaires are as follows: The younger generation preferred soft drinks to the older generation. a.

Children up to 15 years of age liked to have soft drinks up to once a day. b. Young adults liked to have soft drinks up to 1-2 times a day. c. Adults liked to have soft drinks about once a week. Children preferred Coca-Cola. Young adults liked Pepsi. The older generation preferred Coca-Cola. The reason given for choice of favorite’s soft drink was taste and easy availability. 90% of the people said that they prefer taste. Most of the people said that television advertising had a more impact on choosing the brand. As everyone know there is a rumor of pesticides, but in our report we came to know that 75% of the people said they don’t believe in this rumors and only 9% of the people believe in those rumors.

About the brand loyalty most of the consumers 71% said they visit another store if they won’t find the preferred brand and 29% said that they not brand conscious rather they depend on availability. RECOMMENDATIONS Though the coke is enjoying larger market share and it is market leader in Indian beverage industry. While with the 46 % market share Pepsi is on the second step. If we are analyzing properly then we find Pepsi is small product portfolio than coke, which is responsible for its second position. Pepsi should increase its product portfolio to capture the Coke’s market share. Companies should focus on the taste of the product because 90% population is influenced by taste only. Young generation is the potential consumer so companies should more focus on them. As we find that 40 % population consumes 200ml cold drinks.

Which comes in glass bottles, these bottles are being retuned back for refilling to companies? Which is incurred again cost of re-transportation. If company start to supply 200 ml cold drinks in pet bottles (plastic bottles) it will be good for company because 40% of population is using only 200ml.

Bibliography

1. http://www. scribd. com/doc/48391213/A-PROJECT-REPORT-PEPSI-VS-COCA-COLA
2. http://www. scribd. com/doc/30242566/Coke-vs-Pepsi http://en. wikipedia. org/wiki/Pepsi http://en. wikipedia. org/wiki/Coca_cola
3. http://www.jyd.in/Summer%20Internship%20Projects/Marketing/COKE%20AND%20PEPSI%20LEARN%20TO%20COMPETE%20IN%20INDIA%20By%20Sahil%20Memon. df Business research methods (Zikmund)

Hottie Hawg’s Smokin’ BBQ Case Study Team 16 Strengths: * NASCAR Partnership * Excellent food * Differentiated brand * Creativity of owners * Excellent marketing * Low infrastructure costs * Mobile restaurant * Little brand competition * Service flexibility * Proprietary recipes * Community support/interests * Professional marketing image Weaknesses: * Lack of cash flow * Leadership working for two companies * Loss of founder means all lies on Vaughn * High travel costs for events outside of Atlanta * Licensing decision reduces the opportunity of franchise income * Limited distribution capabilities Expansion is expensive * Non-centralized staff * Lack of business credit * Limited menu * Use of ACT funds to finance HHBBQ operations pierces the corporate veil. * Limited catering experience Opportunities: * Aramark/Pepsi Center opportunity * NASCAR as growth partner * Growth within Atlanta * Brand awareness through additional licensing and potential franchising * Merchandise sales * Brick-and-mortar Flagship locations * Popularity of Food Trucks Threats: * Hooters Restaurants * Other barbecue restaurants * Customer reluctance to patronize a polarizing brand * Loss of trade-secret information Legal costs * Economic downturn/slow economic growth * Rising fuel and transportation costs * Pitmasters BBQ uses similar logo and brand image: 1. If you were in Kyle Vaughn’s position, which strategic option would you take? Explain your reasoning. Hottie Hawg’s Smokin BBQ was presented with an opportunity for tremendous growth early on in the life of the company that would test the limits of HHBBQ’s ability to raise capital, produce the quantity of food required and maintain the quality of the product while protecting the brand name and mark they had worked to cultivate.

The Aramark/Pepsi Center contract would guarantee HHBBQ at least 100 events, projected at 16,000 people per event, and make HHBBQ the exclusive BBQ vendor for the arena. We believe of the two strategy alternatives HHBBQ had, the correct choice would be to pursue the Aramark contract. As a company that is looking to expand, passing up an opportunity of this magnitude might not occur again. Either of these two strategies are viable and possess pros and cons, but pursuing the Aramark contract would grant HHBBQ more potential rewards than passing.

HHBBQ has already worked with one professional sport in NASCAR and the opportunity to serve customers of the NBA and NHL are markets that are too valuable to pass on. Once the decision to accept the Pepsi Center deal is made, HHBBQ will face more decisions on how best to handle supplying the needed food for the events. HHBBQ would have to re-locate the “18 Squeeler”, an open-air smoker on wheels, to Denver to prepare the BBQ or rent a local kitchen until a permanent commissary was set up.

HHBBQ faced legitimate concerns regarding the ability of the Squeeler to meet the high food demand of the Pepsi Center and whether the legal costs, potential loss of food quality and possibility of compromising the brand image when dealing with a rented kitchen would make the deal not profitable. From the case study, the first 18 Squeeler was available one week after the initial conversation between Vaughn and Rybka. To meet the demand of the Pepsi Arena, HHBBQ should purchase an additional Squeeler so the food quantity and quality are not compromised.

Once cash flow has begun and enough capital is raised to open a Denver commissary, the two Squeelers would be freed up to once again to perform at local events within the community and allow one Squeeler to return to Atlanta to service the home market. These are challenges that service firms face when attempting to match their products to the needs of their target markets (Ferrell & Hartline, 197). HHBBQ will experience on the job training while learning how to best forecast the correct amount of food needed to serve the arena and the number of new employees to hire and train to accommodate the number of visitors to the arena.

Because most services are dependent upon people (employees, customers), HHBBQ must avoid past mistakes in variations in quality and inconsistency such as overstaffing, food waste, and less than ideal image promotion (Ferrell & Hartline, 198) to maintain high service quality and profitability. Although service quality is a subjective phenomenon (Ferrell & Hartline, 198),  this particular marketplace would not allow for service customization but allow HHBBQ to focus on food quality and speed of service to meet their customers’ needs. . Comment on the decision to license the Hottie Hawg’s brand rather than enter into a franchise agreement with Seymour. In the company’s situation, is it better to promote easier expansion through franchising or maintain tight control over brand image through licensing? Explain. At this early stage in Hottie Hawg’s Smokin’ BBQ’s history, it is important to cultivate the brand image carefully and with almost obsessive attention to detail.

The offering of tasty barbecue served by attractive women in a fun and laid-back environment is in its introductory stage (Ferrell & Hartline, 217), and will soon move into the growth stage if all goes well. Hottie’s must work to grow and build brand equity and establish a differential advantage in the market. This is done through careful management of the product and brand over this time. Public relations, advertising and incentives are critical at this stage in the brands life, as it sets the tone for the growth and maturity stage.

Will this be just another barbecue joint or will Hottie’s stand out among a sea of ribs and wings? Rybka initially envisioned a brand so “extreme and offensive (as) to purposely alienate a large portion of the population” (Ferrell & Hartline, 519)  Allowing a franchisee to potentially dilute this brand is a risk they should not be willing to take. The branding strategy employed by HHBBQ depends on the extreme offensiveness they are building, and a franchisee that doesn’t have the same “tough guts” that Vaughn and Rybka have may not be capable of sticking to their vision.

Vaughn has done an excellent job thus far in developing a different style of BBQ restaurant in the southeast, and should protect the emerging brand image fiercely in order to maintain and develop according to the company’s vision. A license agreement, where complete control can be exercised over the quality of the food, the brand image, logos and marketing materials allows Vaughn to control the direction of the company, while realizing income from licensed sales.

The brand is the most valuable asset to this emerging company; in fact, the brands image was “the cornerstone of the company’s success thus far” according to Lee, and therefore, should remain the top priority at this stage in the game (Ferrell & Hartlien, 526). It should also be noted that by licensing the product rather than franchising, HHBBQ has been able to avoid many unnecessary expenditures that go along with franchising. Had they sold Seymour a franchise, they may have had to invest more in him in terms of training, product knowledge, and other resources that HHBBQ cannot spare at the current time.

Licensing provided Seymour an avenue to invest without much overhead expense, and still provided HHBBQ with licensing revenue and fees. 3. Assume that Hottie Hawg’s is successful with the Aramark/Pepsi Center opportunity. What should Vaughn’s next move be to continue that growth and success? Vaughn’s efforts, with the success of the Aramark/Pepsi venture will have resulted in the beginning of the growth stage of HHBBQ BBQ. This continuing growth stage has happened because sales increases will have been occurring rapidly due to the appeal of the product (Ferrell & Hartline, 219).

Additionally, Hottie Hawg’s BBQ will want to 1. “Establish a strong and defensible market position” and 2. Earn profit to repay debts as well as enough profit to justify moving forward with the business (Ferrell & Hartline, 219). In order to do this, Vaughn’s next moves should be to pursue one flagship brick & mortar location, more  18 squeelers to expand the reach of the product line, look for more venue arrangements that could be profitable, potentially pursue venture capital, and pursue more licensing agreements. Pursuing a flagship brick & mortar restaurant should be an important next step for Vaughn.

Up to this point, Vaughn has not built a brick & mortar location because traditional storefronts require heavy upfront investment costs (Ferrell & Hartline, 521). However, with the cash flow that a successful Aramark/Pepsi Center opportunity will bring, it will be the right time to invest in a flagship location. A major benefit to creating a flagship store front in Atlanta, GA will be that HHBBQ will be able to finally focus some resources on the opportunities in Atlanta for local catering parties and events in this major metropolitan area (Ferrell & Hartline522).

This will create more cash flow for the company, and the increased presence in the Atlanta metropolitan area should help to strengthen the position of the company by fulfilling the event catering need that has not been met there as of yet (Ferrell & Hartline, 213). Purchasing more 18 squeelers to increase the reach of the product line should be a next step for Vaughn. The 18 squeeler was one of the first pieces of equipment bought by Rybka and has proven to be invaluable (Ferrell & Hartline, 519).

This smoker allows HHBBQ to reach out to people over a wide geographic area, resulting in increased brand awareness which helps build more brand equity (Ferrell & Hartline, 205). Investing in more 18 squeelers will allow HHBBQ to continue expanding the awareness of its high quality product, which will help set up future associations and increased cash flow. In fact, the food truck industry, of which HHBBQ’s squeeler would be considered part, is growing at a rate of 18. % in North Florida which shows that there are still incredible growth opportunities in this arena, although competition is increasing as well (Haughney, 2). Vaughn should also look for more venue arrangements. These arrangements are great opportunities because they offer tremendous upside potential through solid revenues, profits, and exposure (Ferrell & Hartline, 525). Partnering with major arenas such as the Pepsi Center is ideal because massive amounts of people will see and try the product and take that favorable opinion about the brand home with them.

HHBBQ is poised to increase cash flow considerably if they can establish similar arrangements with some of the NASCAR events that they are already affiliated with, other popular arenas such as the Amway Center in Orlando, FL, Turner Field in Atlanta, GA, or busy venues such as major zoos, amusement parks, or even in airports. Venture Capital is another way for HHBBQ may be able to help fund growth after the successful Pepsi Center opportunity. Selling a minority stake of the company for cash may be a very smart move in order to fund future growth.

HHBBQ will have enough viability now that there will certainly be interested parties. Venture Capital firms, such as Seed Capital, which provides investment in new start-ups, exist to make a return on their investment (Haughney, 3). HHBBQ could fund major expansion with a large influx of cash, as well as hire more support staff to handle the increased demand for product. Increasing the amount of licensing agreements for HHBBQ is also a smart move. Licensing agreements allow HHBBQ to receive substantial cash flow while allowing the company to maintain quality control over both brand and product (Ferrell & Hartline, 524).

These controls are still very important, because HHBBQ’s brand image and great tasting food help set the company apart from competitors. Additionally, HHBBQ currently only has a licensing agreement in the Denver, CO area which means that an incredible growth opportunity exists here. Adding a few other major markets would be a wise move to ensure viable cash flows for HHBBQ. 4. If the Aramark/Pepsi Center opportunity turns out to be unsuccessful, what should Vaughn do to ensure the ongoing viability of Hottie Hawgs?

If the Aramark/Pepsi decision proves unsuccessful, then Hottie Hawgs would have the opportunity to focus on other investment opportunities. As they do not have an excess of cash flow, it is our belief that Hottie Hawgs would initially benefit from raising capital. This time would also allow the fledgling company to build experience, maturity, and further develop within the growth stage, while having the additional financial flexibility that would come with more capital. Once Hottie Hawgs has raised ample capital, they would then be able to focus on licensing/franchising, and more “Squeelers”.

This capital would also allow Hottie Hawgs to consider the possibility of a brick and mortar restaurant. Hottie Hawgs has already established that they can attain profitability with the “Squeelers” once they verify the proper amount of food necessary. So the investment or licensing in additional “Squeelers” units would allow them to effectively manage the company’s growth. If the decision were to prove unsuccessful, Hottie Hawgs could also take that opportunity to move their operations back to closer to their home base. Atlanta, which has a population of over four million, would be a prime location for Hottie Hawgs to grow.

Atlanta, which is a major metropolitan market, hosts NASCAR, MLB, NFL, and NBA, all of which could be potential events or venues where Hottie Hawgs could find success. This would also allow Hottie Hawgs to continue to attend successfully proven events, in their proximity, like the Billfish Tournament in Panama City. As noted in the case, Eric Rybka’s initial approach for Hottie Hawg’s branding was to, “create enough negative publicity to make the brand infamous, and then slowly morph the brand enough to be mainstream”. To ensure viability, Hottie Hawgs can take this unsuccessful decision and turn it an opportunity.

They would now have the ability to change their brand to a more mainstream and socially acceptable brand. As we know from our text, a brand is a combination of the company’s name, symbol, and design. Taking an opportunity to refine these would fit well into Eric Rybka’s initial intent and direction of the company. This unsuccessful decision can also be turned into an opportunity for Hottie Hawgs to consider improvements or revisions of existing products. As noted in our text, these improvements or revisions can create a “greater perceived value” for the customer.

In these challenging economic times, Hottie Hawgs could also consider cost reduction strategies. As noted in our text, cost reduction strategies would allow Hottie Hawgs to maintain a level of performance, but do so, “at a lower price”. This would allow Hottie Hawgs to appeal to the most cost conscious customers, but maintain the level of performance that has brought them initial success. This strategy could be achieved by considering lower cost meat providers, lower priced ingredients, or reducing costs in other facets of the restaurant, such as plates, utensils, cups, or napkins.

Hottie Hawgs could also consider a co-branding strategy. Hottie Hawgs could contract and have Coke and Hottie Hawgs brand marks on their cups. They could also co-brand with locally prevalent companies to put their advertising on Hottie Hawgs to-go bags or boxes, along with Hottie Hawgs brand marks. Overall, it is our determination that if the Aramark/Pepsi decision proves to be unsuccessful, Hottie Hawgs still has a multitude of opportunities to maintain viability. Hottie Hawgs can consider licensing/franchising opportunities.

They can make a decision to raise capital to obtain more Squeelers. They can consider other venues, like Atlanta, with the reasons that we noted above. Lastly, they can consider reconfiguring some of their strategies, utilizing concepts from the text, that would allow them to refine some of their strategies in an effort to maximize the fulfillment of the customer’s needs, while attracting a greater customer base. Even if the Aramark/Pepsi decision is unsuccessful, that does not mean that Hottie Hawgs is void of alternatives that can allow them to maintain viability and rofitability. O. C. Ferrell & Michael D. Hartline: “Marketing Strategy, Fifth Edition”   2011 Haughney, Kathleen. “Keep On (Food) Trucking. ”  850businessmagazine. com. 850 Business Magazine. Web. 02 March  2013. http://www. 850businessmagazine. com/index. php? option=com_content&view=article&id=601%3Akeep-on-food-trucking&catid=64%3Aq-and-a&Itemid=1 Couret, Jacques. ‘ARC: Metro Atlanta Population Hits 4. 17 Million” bizjournals. com. Web. August 09, 2012 http://www. bizjournals. com/atlanta/news/2012/08/09/arc-metro-atlanta-population-hits. html? page=all

Organizations need strategic planning to have better possibilities in achieving success. Part of creating a strategic plan that fit an organization is aligning its values with what the organization wants to accomplish and how is achieve. In this paper, Learning Team B uses the Pepsi Company as the organization of topic. Team B will discuss the evolution of personal values as well as the values at the workplace. Also the paper includes how the values of each individual affects actions and behaviors, the alignment of the Pepsi Company values with its plans and actions, and how our values as a team can be reflective in the Pepsi Company.

https://phdessay.com/coke-and-pepsi-learn-to-compete-in-india/

In a family setting, parents teach their children to value certain things whether it is physical or mental. You are taught the difference between what is right and what is wrong. To value something is to determine its worth or regard, such as a life or money and in business, the products and services rendered to the customers. Value expresses what is important to a person. Throughout life people use what they have learned in an effort to shape their communities, schools as well as social organizations creating an environment that has high hopes for a better way of living.

Because of the amount of time people spend in the workplace, they should be responsible for setting the tone for the type of behavior displayed throughout the organization. Oftentimes, organizations are held responsible for setting the legal, moral, and ethical codes for the workplace when the employees determine how they will behave. Developing codes of business values and ethics are increasing in businesses and professional associations to ensure ethical standards are consistent throughout the business industry (Pearce & Robinson, 2009).

Personal and workplace values should in many ways be the same. A person should value and display the same type of behavior in his personal and business lifestyles. The positive reputation a person demonstrates personally should be displayed as well in the professional arena. Businesses should value their customers, investors, and workers because these are the individuals who help grow organization and keep it competitive in its product market. Everyone has personal values. Those values can be very influential in their actions and behaviors.

Some personal values can be excellence, improvement, credibility, individuality, responsibility, respect, loyalty, empathy, courage, wisdom, security, teamwork, and empowerment. There are many other personal values that can drive a person’s actions. Values can have an impact on how an individual make decisions, how he works, how someone reacts to problems, and what products he buys or uses. The Pepsi Company states, “Our Values & Philosophy are a reflection of the socially and environmentally responsible company we aspire to be. They are the foundation for every business decision we make” (PepsiCo, 2012).

Pepsi makes it clear that their values reflectt their decision making. This is how individuals are as well. When a person has the values of loyalty, and respect he will be the type that will buy or use products from whom he knows are fair. This is what many companies strive to find within its customers. Knowing the customers values can be very helpful to a company. Pepsi Company alignment balances it values and its plans and actions. The Pepsi mission statement states “Our mission is to be the world’s premier consumer Products Company focused on convenient foods and beverages.

We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity” (PepsiCo Inc. , 2012). As for the Pepsi vision statement states “PepsiCo responsibility is to continually improve all aspects of the world in which we operate environment, social, economic – creating a better tomorrow than today. ” Because Pepsi has designed this statement for their company they stand behind it by offering tasting food nd beverage to its customers all over the world. Pepsi offers a great product but also its offer great opportunities for it employees, business owners, and the rest of the community.

In order for Pepsi to meet these values and plans they put in place the guiding principles for their company as well. These six guiding principles are • Care for our customers, our consumers, and the world we live in. • Sell only products we can be proud of. • Speak with truth and candor. • Balance short term and long term. • Win with diversity and inclusion. Respect others and succeed together. ( PepsiCo, 2012) Each of these principles is what makes Pepsi what it is today. Logistics and operations are core to PepsiCo’s success (PepsiCo. , 2012). Employees who share backgrounds, such as a military fit well at PepsiCo, a merit and performance based company with a focus on leadership and teams (PepsiCo Inc. 2012). Chad, one of our teammates can relate with that statement. Because of his prior service it speaks to him because he was a leader in the Army, and he has a level of respect for a company like PepsiCo.

At the same time PepsiCo realizes that people are its greatest asset (Durkin, 2012). It is important to us that our personal and workplace values be closely connected to those of the company we work for. The values that PepsiCo strives for are the same values that were ingrained for Chad as a member of the United States Army. It is satisfying to work for a company whose values are aligned with those of an individual. Though our values are aligned, it is most imperative that those values are upheld in PepsiCo’s plans and actions and not just in their words or statements.

PepsiCo must ensure to have leaders who hold individuals accountable to the values of the company. Individuals values can determine how actions will be perform. Values show how an individual personality is through his behavior. The Pepsi Company is one of the best in the beverage industry. Its products are popular but also the company values are exceptional. The Pepsi Company provides a great balance between its values, and the impact that causes to its employees and the community. All those are factors that support the creation of a strategic plan effective for the organization.

References

Durkin, Tom (2012). Profiles of PepsiCo JMO. Retrieved from: http://www.pepsico.com/Careers/Junior-Military-Officers/Profiles.html

Pearce, J. A. II, & Robinson, R. B.,(2009). Strategic management: Formulation, implementation, and control. (11thed.). New York, NY. McGraw-Hill.

PepsiCo Inc. (2012). Our Mission and Vision. Retrieved from: http://www.pepsico.com/Company/Our-Mission-and-Vision.html

PepsiCo Inc. (2012). PepsiCo Values & Philosophy. Retrieved from http://www.pepsico.com/Company/PepsiCo-Values-and-Philosophy.html

Non-CSD beverage: Non-CSD beverage

Coke and Pepsi are attacking these categories themselves, each trying to become a “total beverage company. ” Will this approach lead to brand dilution? Do CPs risk becoming a less profitable business if they do not extend the brand?

No good answers yet to these questions: Pepsi, so far, has had more success and has been more aggressive with non-CSDs. The basic principles of the business remain the same: Coke and Pepsi own the brand and control product development; Dedicated bottlers leverage economies of scope in distribution (selling to the same outlet, same trucks). There are exceptions-e. g. , Gatorade is delivered through food wholesalers. As niche products, non-CSDs carried prices and margins that are higher for everyone in the value chain.

Water: Bottled Water Repeat of CSD New (less attractive) Industry Structure Economies of scale in advertising Hard to create brand loyalty Barriers to entry in distribution Highly fragmented, competitive structure Similar economics of concentrate firm High price sensitivity Little differentiation

Bottled Water: Bottled Water Unless Coke and Pepsi can generate brand loyalty and establish their brands, water is more likely to become a commodity-like product, where despite the scale and barriers in distribution, most of the profits will be extracted by the distribution channel (retailers) rather than by the concentrate companies or (especially) the bottlers.

Summary of the Case:

1. One of the clearest examples on how firms can create and exercise market power.
2. To really understand the opportunities for strategy, we have to look at the underlying economics of the firm and the industry, and it’s related (upstream and downstream) parts. Without understanding the economics of the CP and bottler, we cannot understand the motivations and the likely success of moves like vertical integration.