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Note:  100% plagiarism in the above paragraph please remove the plagiarism less than 15 % . CHALLENGES...

Note:  100% plagiarism in the above paragraph please remove the plagiarism less than 15 %

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CHALLENGES / OPPORTUNITIES

One of the major challenges is to change the people’s perspective of PepsiCo as an unhealthy soft drink producer. Due to the link of soft drinks to obesity and diabetes, the new CEO wants to reinvent Pepsi as a healthy food producer rather than a snacks producer. Although this is a good plan for the PepsiCo to consider, people who are used to Pepsi as it is now might not be easily convinced. Any lawsuit against Pepsi is a challenge that needs attention. Recently in October 2009 Pepsi was alleged to have stolen a water packaging model from two men and is ruled to pay 1.26$ billion for missing the courts calling. Pepsi assumed that they didn’t receive the courts letter on time, and therefore the verdict must be overruled. This is a big challenge for Pepsi to overcome since this lawsuit can effect Pepsi’s reputation and it can cause decline in its sales, reduce trust with its suppliers and loose customers. Another challenge for Pepsi is to maintain a good dirtubtion channel. Pepsi is aware about choosing the ditribution channels based on the requirments and prefrences of the global customer. Due to its golbalexperince, Pepsi have adopted many dirutbution channels, however they need to properly adjust each in order to reduce costs and be more effective. COMPETITORS Pepsi’s competitors like Coca-Cola presents competitive pricing and this is a factor, which the firm should keep in mind all the time. The political scenario is very important because there can be certain civil disturbance in some markets. Another reason could be fall in sales due to inflation. The most important element of all is that cross-border situations are extremely different. As a result, Pepsi has to stay in line with all changes and policies in order to adapt to them accordingly. The Coca-Cola Company is PepsiCo’s primary competitors. But others include Nestlé, Groupe Danone and Kraft Foods. Intense competition may influence pricing, advertising, sales promotion initiatives undertaken by PepsiCo. Resently Coca-Cola passed PepsiCo in Juice sales.

PROMOTIONAL STRATEGY

A promotional strategy can include:

  • Sales Shootouts
  • New product reception
  • Brand Equity Emergence
  • Positioning
  • Competitive retaliations
  • Creation of a corporate image

Pepsi and Coke have a special status regarding their promotional activities.The rivalry was initiated when Pepsi started its blind taste challenges. It took the method of a taste test at public places like shopping malls, community centric hubs etc. By letting people taste both the colas, they asked the people to select the preferred one so that people would buy Pepsi.

COMPETITITOR COMPANY COCA COLA

Coca Cola is the leading manufacturer and retailer of non-alcoholic beverage in the world. The company is best known for its flagship product, Coca-Cola, a non-alcoholic carbonated drink, loved throughout the world by kids and adults alike. Coca-cola or Coke as it is known by people around the world can be found in more than 200 countries with 1.8 billion drinks being served each day.

SWOT Analysis

Strength

  • It is the best global brand in the world in terms of revenue, profits, stock market performance and brand image.
  • The company holds the largest market share (almost 40 percent) of the cola industry.
  • It has the most extensive marketing and distribution network in the world with presence in more than 200 countries with 1.8 billion drinks being sold every day.

Weakness

  • The principle focus of the company is aerated beverages like Coke, Sprite and Fanta. However, this limited focus might prove detrimental for the company if the world is moving towards healthier drinks.
  • The product portfolio of Coke unlike that of Pepsi is highly undiversified. While Pepsi has diversified in both food and beverages, Coke has concentrated only on drinks. This singular focus on carbonated drinks may cost the company if markets for such drinks shrink in future.
  • The company has 8 billion dollars of debt in the market which is another negative point.

Opportunities

  • Consumption of packaged drinking water and aerated beverages is expected to grow every year in Third World countries.
  • With the new trend of fitness and health gaining grounds, the company will benefit a lot from the promotion of low calorie and low sugar drinks like Diet Coke and Coke Zero.
  • Another significant way the company can expand its market is to acquire companies already existing in the Third World and BRICS nations.

Threats

  • One of the serious threats comes from the popular perception that sugar based drinks lead to various health problems. The company will not prosper if this perception battle is not won.
  • More than 60 percent of the revenue comes from foreign markets. Weak currency performance of other countries will hamper the sales of the company.
  • Water resources continue to be a problem.

PESTLE Analysis

  • Political

The boycott of Coke, the most potent symbol of American capitalism, by the Arab League in wake of the Iraq war declined the company’s sales in Middle Eastern countries.

  • Economic

Economic recession can have the greatest negative impact on the company. People tend to cut back on non-essential items like carbonated drinks. As such recession of 2008-2010 had a deep impact on the sales of Coco Cola.

  • Social

As mentioned before, the perception battle is the hardest which Coke has to fight. More and more people are turning to healthier food and drinks and Coke being a high sugar and high calorie drink is fast losing the support of health conscious people.

  • Technological

Technological advancement in television and the internet means that the company can reach more people than before by using these innovative channels of communication. On the other hand, recycling plastic bottles and tin cans can lower the cost of production.

  • Legal

Coca Cola was sued for racial discrimination in the late 1990s when it was found out that the black employees were discriminated against in the company. This led to a massive face loss.

COMPARITIVE ANALYSIS BY MARKETING MIX

a) PRODUCT

                      Coke was launched in India in Agra, October 24, in '93', soon after its traditional all Indian launch of its Cola. At the sparking new bottling plants at Hathra near Agra. Coke was back with a bang after its exit in 1977. Coke was planning to launch in next summer the orange drink, Fanta-with the clear lemon drink, sprite, following later in the year.

Coke's product line includes, Coca-Cola, Thumps Up, Fanta, Maaza, Sprite, Club Soda, 7-up,Limca,Fanta apple, Diet Coke.

PACKAGING

            Coca-Cola India Limited (CCIL) has bottled its Cola drink in different sizes and different packaging i.e., 200 ml bottle, 300 ml. Bottle, 330 ml.Cans, 500 ml.And bottles of 1 and 2 litre.

PRODUCT POSITIONING

            One important thing must be noticed that Thumps Up is a strong brand in western and southern India, while Coca Cola is strong in Northern and Eastern India. With volumes of Thumps up being low in the capital, there are likely chances of Coca Cola slashing the prices of Thumps Up to Rs. 5 and continue to sell Coca Cola at the same rate. Analysts feel that this strategy may help Coke since it has 2 Cola brands in comparison to Pepsi which has just one.

           

Thumps Up accounts for 40% of Coca Cola Company’s turn over, followed by Coca Cola which has a 23% share and Limca which accounts for 17% of the turn over of the company. We will sell whatever consumers want us to". Coca Cola India has positioned Thumps up as a beverage associated with adventure because of its strong taste and also making it compete with Pepsi as even Pepsi is associated with adventure youth.

b) PRICE

            The price being fixed by industry, leaving very little role for the players to play in the setting of the price, in turn making it difficult for competitors to compete on the basis of price.  

The fixed cost structure in Carbonated Soft Drinks Industry, and the intense competition make it very difficult to change or alter the prices. The various costs incurred by the individual companies are almost unavoidable. These being the costs of concentrates, standard bottling operations, distributor and bottlers commissions, distribution expenses and the promotional and advertising expenditure (As far as Coke is concerned, it had to incur a little more than Pepsi as Pepsi paved its way to India in 1989 while Coke made a comeback in 1993.)

            Currently a 300 ml. Coke bottle is available for Rs10 the 330 can was initially available for Rs. 15 and now Rs.20. The prices of 500ml, 1 litre.And 2ltr being Rs20 Rs.35 and Rs.50 respectively (according to the current survey).

c) PLACE

                        Coke may have gained an early advantage over Pepsi since it took over Parle in 1994. Hence, it had ready access to over 2, 00,000 retailer outlets and 60 bottlers. Coke was had a better distribution network, owing to the wide network of Parley drinks all over India. Coke has further expanded its distribution network.

                        Coke and its product were available in over 3, 00,000 outlets (in contrast with Pepsi's 2, 75,000). Coke has a greater advantage in terms of geographical coverage.

            Coke and Pepsi have devised strategies to get rid of middlemen in the distribution network. However, 50% of the industry unfortunately depends on these middlemen. As of now, around 100 agents are present in Delhi. Bottlers of the 2 multinationals have strongly felt the need to remove these middlemen from the distribution system, but very little success has been achieved in doing so.

d) PROMOTION

            It must be remembered that soft drinks purchases are an "impulse buy low involvement products" which makes promotion and advertising an important marketing tool. The 2 arch rivals have spent a lot on advertising and on promotional activities.

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Required:

Question: Rewrite the above paragraphs in your own words it has 100% plagiarism remove the plagiarism and rewrite it in your own words?

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Note:  100% plagiarism in the above paragraph please remove the plagiarism less than 15 %

Homework Answers

Answer #1

One of the significant difficulties is to change the individuals' point of view of PepsiCo as an undesirable soda pop maker. Because of the connection of soda pops to stoutness and diabetes, the new CEO needs to reevaluate Pepsi as a solid food maker as opposed to a snacks maker. Despite the fact that this is a decent arrangement for the PepsiCo to consider, individuals who are utilized to Pepsi as it is currently probably won't be effectively persuaded. Any claim against Pepsi is a test that needs consideration. As of late in October 2009 Pepsi was claimed to have taken a water bundling model from two men and is administered to pay 1.26$ billion for missing the courts calling. Pepsi accepted that they didn't get the courts letter on schedule, and thusly the decision must be overruled. This is a major test for Pepsi to defeat since this claim can impact Pepsi's notoriety and it can cause decrease in its deals, lessen trust with its providers and free clients. Another test for Pepsi is to keep up a decent dirtubtion channel. Pepsi knows about picking the ditribution channels dependent on the requirments and prefrences of the worldwide client. Because of its golbalexperince, Pepsi have embraced numerous dirutbution channels, anyway they have to appropriately alter each so as to lessen costs and be progressively compelling. Contenders Pepsi's rivals like Coca-Cola presents serious evaluating and this is a factor, which the firm should remember constantly. The political situation is significant in light of the fact that there can be sure respectful unsettling influence in certain business sectors. Another explanation could be fall in deals because of expansion. The most significant component of everything is that cross-outskirt circumstances are very unique. Subsequently, Pepsi needs to remain in accordance with all progressions and strategies so as to adjust to them likewise. The Coca-Cola Company is PepsiCo's essential rivals. In any case, others incorporate Nestlé, Groupe Danone and Kraft Foods. Serious rivalry may impact evaluating, publicizing, deals advancement activities attempted by PepsiCo. Resently Coca-Cola passed PepsiCo in Juice deals.

promotional STRATEGY

A limited time system can include:

Deals Shootouts

New item gathering

Brand Equity Emergence

Situating

Serious reprisals

Formation of a corporate picture

Pepsi and Coke have an extraordinary status with respect to their limited time activities.The contention was started when Pepsi began its visually impaired taste difficulties. It took the technique for a trial at open spots like shopping centers, network driven center points and so on. By letting individuals taste both the colas, they requested that the individuals select the favored one with the goal that individuals would purchase Pepsi.

COMPETITITOR COMPANY COCA COLA

Coca Cola is the main producer and retailer of non-mixed drink on the planet. The organization is most popular for its lead item, Coca-Cola, a non-alcoholic carbonated beverage, cherished all through the world by children and grown-ups the same. Coca-cola or Coke as it is known by individuals around the globe can be found in excess of 200 nations with 1.8 billion beverages being served every day.

SWOT Analysis

strength

It is the best worldwide brand on the planet as far as income, benefits, financial exchange execution and brand picture.

The organization holds the biggest piece of the overall industry (just about 40 percent) of the cola business.

It has the most broad showcasing and conveyance organize on the planet with nearness in excess of 200 nations with 1.8 billion beverages being sold each day.

weakness

The standard focal point of the organization is circulated air through drinks like Coke, Sprite and Fanta. Be that as it may, this constrained center may demonstrate inconvenient for the organization if the world is moving towards more advantageous beverages.

The item arrangement of Coke not at all like that of Pepsi is profoundly undiversified. While Pepsi has differentiated in both food and refreshments, Coke has focused distinctly on drinks. This solitary spotlight on carbonated beverages may cost the organization if markets for such savors recoil future.

The organization has 8 billion dollars of obligation in the market which is another negative point.

Opportunity

Utilization of bundled drinking water and circulated air through refreshments is relied upon to develop each year in Third World nations.

With the new pattern of wellness and wellbeing picking up grounds, the organization will profit a great deal from the advancement of low calorie and low sugar drinks like Diet Coke and Coke Zero.

Another huge way the organization can extend its market is to secure organizations previously existing in the Third World and BRICS countries.

threats

One of the genuine dangers originates from the well known observation that sugar based beverages lead to different medical issues. The organization won't succeed if this discernment fight isn't won.

In excess of 60 percent of the income originates from outside business sectors. Frail cash execution of different nations will hamper the deals of the organization.

Water assets keep on being an issue.

PESTLE Analysis

Political

The blacklist of Coke, the most powerful image of American private enterprise, by the Arab League in wake of the Iraq war declined the organization's deals in Middle Eastern nations.

economic

Monetary downturn can have the best negative effect on the organization. Individuals will in general cut back on insignificant things like carbonated beverages. As such downturn of 2008-2010 deeply affected the deals of Coco Cola.

Social

As referenced previously, the discernment fight is the hardest which Coke needs to battle. An ever increasing number of individuals are going to more beneficial food and beverages and Coke being a high sugar and fatty beverage is quick losing the help of wellbeing cognizant individuals.

technological

Mechanical headway in TV and the web implies that the organization can contact a greater number of individuals than before by utilizing these inventive channels of correspondence. Then again, reusing plastic containers and metal jars can bring down the expense of creation.

Legal

Coca Cola was sued for racial separation in the late 1990s when it was discovered that the dark representatives were victimized in the organization. This prompted an enormous face misfortune.

COMPARITIVE ANALYSIS BY MARKETING MIX

a) PRODUCT

Coke was propelled in India in Agra, October 24, in '93', not long after its customary all Indian dispatch of its Cola. At the starting new packaging plants at Hathra close to Agra. Coke was back with a blast after its exit in 1977. Coke was intending to dispatch in the following summer the orange beverage, Fanta-with the unmistakable lemon drink, sprite, following later in the year.

Coke's product offering incorporates, Coca-Cola, Thumps Up, Fanta, Maaza, Sprite, Club Soda, 7-up,Limca,Fanta apple, Diet Coke.

packaging

Coca-Cola India Limited (CCIL) has packaged its Cola drink in various sizes and distinctive bundling i.e., 200 ml bottle, 300 ml. Container, 330 ml.Cans, 500 ml.And jugs of 1 and 2 liter.

product POSITIONING

One significant thing must be seen that Thumps Up is a solid brand in western and southern India, while Coca Cola is solid in Northern and Eastern India. With volumes of Thumps up being low in the capital, there are likely odds of Coca Cola cutting the costs of Thumps Up to Rs. 5 and keep on selling Coca Cola at a similar rate. Experts feel that this procedure may help Coke since it has 2 Cola brands in contrast with Pepsi which has only one.

Bangs Up represents 40% of Coca Cola Company's chance over, trailed by Coca Cola which has a 23% offer and Limca which represents 17% of the turn over of the organization. We will sell anything buyers desire us to". Coca Cola India has situated Thumps up as a drink related with experience due to its solid taste and furthermore causing it to rival Pepsi as even Pepsi is related with experience youth.

b) PRICE

The cost being fixed by industry, leaving almost no job for the players to play in the setting of the cost, thusly making it hard for contenders to contend based on cost.

The fixed cost structure in Carbonated Soft Drinks Industry, and the extraordinary rivalry make it exceptionally hard to change or adjust the costs. The different expenses brought about by the individual organizations are practically unavoidable. These being the expenses of concentrates, standard packaging tasks, wholesaler and bottlers commissions, dissemination costs and the special and publicizing consumption (As far as Coke is concerned, it needed to bring about somewhat more than Pepsi as Pepsi cleared its approach to India in 1989 while Coke made a rebound in 1993.)

As of now a 300 ml. Coke bottle is accessible for Rs10 the 330 can was at first accessible for Rs. 15 and now Rs.20. The costs of 500ml, 1 litre.And 2ltr being Rs20 Rs.35 and Rs.50 separately (as per the current review).

c) PLACE

Coke may have increased an early bit of leeway over Pepsi since it took over Parle in 1994. Henceforth, it had prepared access to more than 2, 00,000 retailer outlets and 60 bottlers. Coke was had a superior circulation arrange, attributable to the wide system of Parley drinks all over India. Coke has additionally extended its circulation organize.

Coke and its item were accessible in more than 3, 00,000 outlets (conversely with Pepsi's 2, 75,000). Coke has a more prominent favorable position as far as topographical inclusion.

Coke and Pepsi have conceived systems to dispose of mediators in the circulation arrange. Be that as it may, half of the business lamentably relies upon these mediators. Starting at now, around 100 specialists are available in Delhi. Bottlers of the 2 multinationals have firmly wanted to expel these mediators from the dissemination framework, yet almost no achievement has been accomplished in doing as such.

d) PROMOTION

It must be recalled that sodas buys are a "spur of the moment purchase low association items" which makes advancement and promoting a significant advertising apparatus. The 2 most outstanding adversaries have spent a great deal on publicizing and on limited time exercises.

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