Essay: PepsiCo overview and Industry Analysis

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Essay: PepsiCo overview and Industry Analysis

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In a hot and humid summer of 1989, a young pharmacist, Caleb Bradham came up with an astonishing formula of a beverage that revolutionized the face of beverage industry. That formula belongs to a drink which is today known to the whole world as Pepsi Cola. (PepsiCo, n.d)

PepsiCo started its business with a soft drink and now it has accumulated a major portion of snack food industry having products like Lays and Quaker Oats and juices section like Tropicana and Slice as well as a range of varied flavor beverages like Marinda, Team, and Mountain Dew etc. (Datamonitor, 2003) This paper is primarily focused on the marketing strategies of Pepsi-Cola.

Before moving to the marketing strategies of Pepsi, let’s have a look on the soft drink industry and its present scenario and future prospects. Soft drink industry analysis is characterized by four main factors; economic factors affecting the industry, porter’s five forces model, industrial norms, and the industry’s key factors. Economic factors constitute the size of the market in which company operates and industry attractiveness e.g. in case of Pepsi, industry attractiveness is governed by demand of soft drinks as against other non-alcoholic drinks. With the passage of time this percentage has been increasing rapidly. Other two economic factors, growth rate and profitability, show a stable trend in case of soft drinks due to saturation of market. Profitability is strong but the growth in profits is very minor (Deichert, Ellenbecker, Klehr, Pesarchick, & Ziegler, 2006).

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