It manufactures manufacture or use contract manufacturers, market and sell a variety of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages, and foods. It is organized in three business units: • PepsiCo Americas Foods, • PepsiCo Americas Beverages, and • PepsiCo International. The Americas’ divisions operate in the United States and Canada. The international divisions operate in approximately 200 countries, with the largest operations in Mexico and
P2: Distribution of retail goods Distribution channels covers three sectors of industry, Primary (Raw Materials) Secondary (Manufacturing) and Tertiary (Services). Distribution centre is part of a logistics chain which include trucks delivering and picking items from the workhouse, movement of goods via: * air * road * train * ship Size of distribution centre is deepens of the business is serves. Businesses would have to plan how they are going to distribute their products or services to their existing customers in order for them to sell. Distribution channels would have to make sure that they give the product or service to the correct people and at the right time, it is very important that they are able to make their profits and efficiency when a customer purchase a product or a service. The customer may have bought it straight from the business or the producer of the product per through the retailer or the wholesaler.
Out of the total revenue, $10 billion comes from the healthy food section. To maintain the balance between the demands of shareholders and other interest groups, the company is hiring more health officials, so that they can do more research and improve their products. 2- How effective do you think Pepsi Co. has been in responding to stakeholders concerns about nutrition and sustainability? As I said before, you can't expect Pepsi Co. proving a purely healthy food items. It has faced many criticism, for it's unhealthy ingredients.
The energy beverage companies are targeting same group of people as Red Bull and it is hard to make significant increase in profit. To make more profit companies should target diverse types of consumers to differentiate your company from the other companies in the same branch. The heavy consumers of energy beverages are consist of males between 12 and 34 ages. In this market is high brand loyalty which means that average consumer is limiting his/her choice to only 1.4 different brands. The convenience stores and supermarkets are the dominant off-premise retail channels for energy beverages.
The company started as a small wholesale distributor of sugar, coffee, and tea, then it acquire a food processing, packaging, and distribution, and then retail food business. For over 40 years the company had acquired a series of related and unrelated business. Over this course of time, management struggled to manage the company’s broadly diversified and geographically scattered operations. With the retrenchment strategy, Sara Lee Corporation is able to transform it into a more tightly focused food, beverage, and household products company. Management believed concentrating its financial and managerial resources on a smaller number of business segments in which market prospects were promising and Sara Lee’s brands were well positioned would help the company save cost and more profitable.
Coca-Cola is probably doing better now and will probably do even better financially in the future because of all their new products. Since they have started to decrease the sugar and calories in many of their products, it is helping the society to decrease obesity with their drinks and also is helping their company to do better since their consumers want to buy their products. In the book, we talk about sustainability. I believe that Coca-Cola’s new products, new commercial, and new perspective is sustainable. As stated in MKTG, sustainability ‘refers to the idea that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities to build profits and help the world at the same time(p.38)’.
According to an article that dismisses the fear of HFCS, “Out with Gout.” Our increase in our waistline is not necessarily tide to HFCS, rather to the consumption of soda. The soda we drink today is sweetened with HFCS, but if it were not sweetened with HFCS, it would be sucrose-sweetened which in turn would have the same effects as HFCS. The article continues to point to the fact that, “we are getting bigger at the waistline because of what we are consuming, but nothing concrete says that we would be thinner if we had been consuming regular sugar.” (1) HFCS or not, the obesity issue would be happening regardless. It seems to be that we are taking in a larger amount of foods and drinks that are high in sugars, real or not. The article suggests that we cut back on products that are highly sweetened with HFCS or any other sugar.
HFCS became an attractive substitute and is preferred over cane sugar by the vast majority of American food and beverage manufacturers. Soft drink makers such as Coca-Cola and Pepsi use sugar in other nations but switched to HFCS in the U.S. in 1984. Large corporations, such as Archer Daniels Midland, lobby for the continuation of government corn subsidies. Nothing is ever absolute, and everything has chance to be good or bad. HFCS could help soda companies rich so the employees may have better salary, or HFCS could make us sick, cause physical disorders if we have too much of it.
So grocery stores in poorer neighborhoods stock less milk and more soda, and the relentless advertising from the beverage industry and fast food joints makes sweet drinks an expected part of daily living. (633) This would be especially true for the poor because they have less money to waste, and they would think twice before using money to buy foods or drinks. The lower-price drinks would be more affordable. Increasing the cost of sugary drinks will change people’s opinion and behavior because healthy choices and bad choices will become equal. People always consider the price before the product’s quality so if the prices are the same, they will certainly prefer the quality and healthy choices.
Kids consume one to two cups or more which double the content of sugar consumption. What’s interesting is that General Mills makes more than just sugary cereals, they also make some “healthy” more adult cereals. Cheerios for instance, claimed to reduce Cholesterol and had studies to back it up; the Food and Drug Administration told General Mills they could not market Cheerios showing clinical trials they may or may not have been accurate causing speculation on the validity of their