Unlike its big competitors that use traditional sales and distribution model focused on transforming concentrate into a bottle of soda and delivering it to a customer, SodaStream produces soda system that allows customers make their own soda at home. The company uses “razor and razor blade” business model that impels customers to keep buying the higher margin carbon dioxide refills and syrups after they purchase the soda makers at a small markup. Such approach allows the company to generate a constant source of income and to overcome economic, social and environmental challenges. It also helped SodaSteam avoid high entry barriers in the carbonated soft drink industry. 2.
1. Should the Pepsi brand team continue to fund the Pepsi Refresh Project? Why or why not? More analysis need to be done from a ROI perspective. In the case, it was mentioned that the $20 million project generated $66 million worth of media value, despite a drop in sales linked to the increasing health consciousness of consumers which also affects Coca-Cola.
Brand positioning was seen as its best leverage as Coke Zero competes in a category where factors such as price, costs, competition and distribution are relatively unchanging. A Needscope assessment revealed that the Needstate ‘Vibrancy’ was indicated the largest segment of ‘Needs’ opportunity for beverages. However, diet colas are sold in the ‘Control’, ‘Composure’ and ‘Tranquillity’ space, which are less brand desirable and represent less ‘Needs’ opportunity in the beverages sphere. Furthermore, Coke Zero’s target audience was young adults 16-29, for whom the notion ‘living life’ wielded a greater influence than ‘exercising self-control’, a notion synonymous with ‘diet’. Thus, it was necessary to reposition Coke Zero to recapture the attention of their target audience and successfully compete with Pepsi Max.
Support your position. • Given a company that is already diversified, suggest how senior management may determine the most effective strategy and how it should be evaluated. DQ 2 : "PepsiCo" Please respond to the following: PepsiCo has historically trailed the Coco-Cola company in carbonated beverage sales. Suggest a strategy that may enable PepsiCo to close the gap in this market. Explain how this may allow PepsiCo to achieve the number-one market position.
Problem Pepsi has been targeting Quaker as a potential acquisition target because of its ownership of Gatorade (a brand Pepsi actively wants to include in its portfolio) and several synergy opportunities in distribution expertise. Pepsi needs to determine a fair price to offer for a stock-for-stock exchange that accounts for Quaker and Pepsi’s current values, synergy opportunities, and other offers on the table. Facts and Assumptions * Quaker’s portfolio and especially Gatorade is attractive to multiple large food/beverage conglomerates. Due to scale, many of these potential acquirers have synergy opportunities with Quaker. * Quaker portfolio can be seen as two distinct product groupings with differing growth rates – foods (including Oatmeal, Golden Grain, Granola Bars, and Aunt Jemima) and beverages (including Gatorade).
Pepsi entered the Chinese market in 1981 to sell soft drinks, and Frito-Lay followed in 1994. So far, the operation has been a success for the company and revenues show it. The approach that Frito-Lay used to enter the Chinese market was mainly polycentric, in other words, with a number of centers of growth and development and with more than one reproductive organ. This was the case because they knew that it would be necessary to adapt Frito-Lay products to the Chinese culture. For example, Cheeto’s sold in China don’t contain cheese due to the fact that Chinese people have the trait of being lactose intolerant, so in order to avoid health problems the flavor of the cheetos was changed to a barbecue and seafood flavoring.
If Pepsi were to offer a new product it wouldn't be surprising to see Coca-Cola follow suit. But in the financial evaluation comparison of Coca-Cola, and Pepsi-Co it is easy to see Coca-Cola's in the lead. This is largely due to the international market. Coca-Cola entered foreign markets a lot differently than Pepsi-Co, providing it an edge over Pepsi-Co While Pepsi-Co invested heavily in foreign markets, Coca-Cola's appointed bottlers with significant experience easily neutralized any threat Pepsi-Co could pose. (Harkonnen) Another reason Coca-Cola holds such a dominant position in world market is due to World War II.
Impulse locations: The market changed as Foodservice operators added soft-serve yogurt to business in the early 90’s. By the late 90’s, impulse locations occupied 2/3 of the soft-serve market, which made impulse locations a very important sales segment for GMI. Since the soft-serve trade is only performance topspin for impulse locations, they are unwilling to take any risks on new product innovation. As a result, potential sales from impulse locations are limited; although, they are the main distribution segment for GMI. GMI’s marketing strategy * The Foodservice sales force serviced both Shops and Impulse locations.
Table of Contents Introduction 3 Pepsi’s Marketing Idea 3 Why Use Celebrities? 4 Product Placement in Relation to Target Market 5 The Pepsi Marketing Idea In Relation To the Boston Consulting Group Matrix 6 Media Saturation 7 Conclusion 8 References 9 Introduction In the article “Why fashion keeps bottling celebrity pop,” Seckler (2005) Alan Siegel, chairman and chief executive officer of Siegel & Gale states that “Marketing leverages what's going on in society — and we live in a society that is celebrity obsessed"(p.1). The Pepsi Corporation, a multi-billion dollar soft drink conglomerate, has upon discerning this societal trait, devised a marketing campaign designed to tap in to this celebrity fascination to increase exposure and profit. The purpose of this assignment was to identify a great marketing idea and comprehensively describe its marketing and this report will investigate this particular campaign and its influence on the market, in relation to the assignment topic. Pepsi’s Marketing Idea In 1961 Pepsi had redefined its target audience, recognising the importance of securing the younger post-war generation as consumers, with the slogan “Now It’s Pepsi, for those who think young” defining youth as a state of mind rather than actual age (Pepsi.com, 2006).
Volume in the South American foods business climbed 2 percent. 3. Campaign Goal: To increase Pepsi’s marketing share in U.S. In order to reduce the soft drink market distance between Pepsi and Coca Cola of the marketing share. 4.