Topic > Pepsi Case Analysis - 1035

The authors informed that the CEO of Pepsi Company came up with this plan just after two days when Coke Company announced its plan to open a 14-pack bottling plant million dollars, it can be understood that the CEO of The Pepsi Company came up with this plan simply to compete against the Coke Company and promote his brand in China more than the Coke Company. Turning to the facts provided by the analysts, the authors informed that: “None of the companies release sales or profit data for the country, but analysts say that Coca-Cola holds 52% of the carbonated soft drinks market, versus 32% of Pepsi. Coca-Cola also has the main brand of soda, Sprite. But Pepsi-Cola is in second place, while Coca-Cola's flagship, Coca-Cola, is in third” (Einhorn and Byrnes, 2009, p.70). According to the facts provided by analysts, its marketing strategy is mainly to work within the company, “Performance with a Purpose” strategy (p.1), clearly shows that the author started his article with some general information about the Pepsi company, informs the position as well as informs the position of the rival company, Coca-Cola. Furthermore, it is clear that his main argument, which is about marketing strategy, begins right in the opening paragraph. Talking about the marketing strategy, the first and most effective strategy that the author has informed about is “Performance with a Purpose”. With changing times, PepsiCo and other soft drink companies realized that when people go to snack they are looking for a drink as well, and with consumers looking for the healthy option, soda companies like PepsiCo were losing customers” (p.1). This is a creative and effective marketing strategy of Pepsi company as it could fulfill the want and think to fulfill the need. In this case, the desire was a drink with a snack and their plan was to provide the most suitable drink with the snack, so that more people buy their product and their brand is promoted. Since consumers were looking for healthy carbonated drinks instead of any type of soda, this strategy didn't work so well because they were losing customers like some other companies. However, this did not stop the Pepsi Company from using this strategy, rather the company came up with a new strategy to provide a healthy carbonated drink along with the snack and be profitable at the same time. According to Ryder (2013), “PepsiCo introduced the “Power of One” in which PepsiCo purchased the two largest bottling groups, New York-based Somers Pepsi Bottling Group (PBG) and Minneapolis-based Pepsi-Americas. This merger gave PepsiCo direct control over more than 80% of its bottling network” (p.1), their new strategy