PepsiCo Corporate Strategies



PepsiCo Corporate Strategies

[Name of the Writer]

[Name of the Institution]

PepsiCo Corporate Strategies

Introduction

PepsiCo is a very old and famous name in the field of beverages and food processing. Based in Harrison, New York, PepsiCo was formed in 1965 when the merger of Pepsi Cola and Frito-Lay happened. Since then, Pepsi has expanded its business and product line from only beverages to grain-based food products. PepsiCo did not stop here and went on for further mergers and acquisitions. It acquired Tropicana Products in 1998 and Quaker Oats Company in 2001, adding Gatorade brand for energy drinks in its product line as well.

PepsiCo has always followed intelligent strategies to handle its business. Be it marketing or operations or any other department, PepsiCo has always implied useful and workable strategies in its business plans that are perfectly according to the current situation and needs and demands of that particular market. PepsiCo has always played its cards very intelligently as it knows how to capture the food and beverage markets and how to attract the customers (Dye, & Sibony, 2007). Moreover, talking about its internal strategies, the internal strategies have also been devised in such a way that the employees remain motivated and focus on their work. How the food and beverage giant devises its strategies and how it ensures the successful implementation of these strategies, this essay will highlight all these points in detail.

Discussion

PepsiCo has always tried to remain on top despite the fierce competition prevailing in the market. Although there are many other companies that keep rolling out products top give tough time to the food and beverage manufacturer but thanks to the intelligent and timely implementation of its strategies, the tactics of competitors fail to decrease the reputation and goodwill of the company. It is due to the brilliant strategies of the sharp team members of PepsiCo that it is still capturing a significant market share not only in America but also in the international markets wherever it is dealing with its products.

Functional Strategy of PepsiCo

PepsiCo uses a unique strategy of low-cost differentiation. It takes advantage of economies of scale and uses the approach of mass production. PepsiCo produces its various products on a large scale and then markets and distributes them in the market using the low-cost differentiation strategy. PepsiCo also differentiates its products through taste and marketing.

Stability Strategies in PepsiCo

In addition to adding new products to its product line, PepsiCo understands the importance of keeping the current position stable in the market. That is why it uses multiple techniques of marketing and product improvement to maintain its market share strong and stable (Balmer, 2012).

Pros

Attractive to consumers

PepsiCo has made a unique place for itself through its different and up to date marketing strategies and has made a place in the hearts of its customers.

Diversified Portfolio

PepsiCo has made the place not only in the United States of America but also in other countries, and it has stepped into the production of multiple other products like Quaker Oats, Doritos, Frito-Lay, and Gatorade. These products are marketed and sold in more than 200 countries all over the world.

Emerging markets

Despite its rising prices, the sales figures of PepsiCo are increasing steadily over a period of time. In the past few days, PepsiCo saw a rise in its beverage volume growth by 17% in India, 13% in China and 15% in Russia.

ConsJunk Food

Despite all its good taste and marketing, the products of PepsiCo are still not considered a healthy option and doctors do not recommend it. Competitors Pressure

PepsiCo has been facing tough competition in the market, especially the US market by other beverage companies. The close of PepsiCo is Coca-Cola.

Macro Issues

The company has to bear various costs in the market that are becoming higher day by day, owing to the rising inflation.

Competitive and cooperative strategies of PepsiCo

The competitive and co-operative strategies of PepsiCo consist of a careful analysis of the market. It takes help of the market segmentation techniques and the 4Ps in order to devise its strategies according to the level of competition its competitors representing to it in the market.

Growth Strategies of PepsiCo

Pepsi takes help of the Porters Model to make a successful growth strategy so that it can keep capturing the current market as well as enter into the new markets (Tudor, Claudiu, & Francisca, 2008). It uses the strategies of market penetration, product development, and market development to tackle its biggest competitors, which holds Coca Cola at the top.

Trade-offs

These growth strategies help the food and beverage company in introducing new products to its product line and getting the attention of more and more customers. The disadvantage of these growth strategies may be that penetration into new markets proves to be a costly affair and the social, economic and political factors may prove to be a threat for the company in the new market.

Retrenchment

In addition to growing its business and jumping into new markets, PepsiCo also takes retrenchment steps from time to time in order to cut off its costs and manage its expenses. The recent example of this took place in 2008 when the company decided to cut off 30000 jobs in its home country so that it can reduce its costs in the employee section.

Conclusion

In a nutshell, it can be seen that PepsiCo uses every possible strategy for marketing and management to attract customer’s attention and keep its position stable in the market among all the competitors in the market.

References

Balmer, J. M. (2012). Corporate brand management imperatives: custodianship, credibility, and calibration. California Management Review, 54(3), 6-33.

Dye, R., & Sibony, O. (2007). How to improve strategic planning. McKinsey Quarterly, 3, 40.

Tudor, I. F., Claudiu, C. Ş., & Francisca, C. A. (2008). Business portfolio analysis–Hofer method. Analele universităţii din oradea, 915.