Pepsi Cola marketing 3

Pepsi Cola marketing 3 - Pepsi-Cola NA: Marketing...

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Pepsi-Cola NA: Marketing Management
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Pepsi-Cola NA: Marketing Management Pepsi-Cola North America represents a market of beverages and drinks. Pepsi-Cola, the world leader in beverages and foods industry, builds a strong competitive policy worldwide aimed to create a core of loyal supporters and compete on the national scale. As other companies on the same market, Pepsi-Cola North America is dynamically evolving entity operating within a dynamically evolving economic and social environment. Its opportunities are closely connected with product image and product range. To sustain strong market position in North America, Pepsi-Cola takes into consideration needs and wants of buyersm their life style and preferences; it analyzes perspectives, opportunities and possible threats connected with stereotypes and brand perception in this geographical region. The current market is diverse in terms of supply and demand. In the industry, there are few large competitors including Odwalla, Perrier, Coca Cola, and Cadbury-Schweppes, and smaller competitors such brands like Heineken, Budweiser, Fresh Samantha and Evian. Using unique marketing strategy and brand name, Pepsi-Cola wins the mind share of consumers. During the last five years, the US beverage market shows low rates of economic growth. Composition of demand determines how industry perceives, interprets, and responds to buyer needs. According to recent data analysis, “the beverage giants have a problem – growth in the sales of their flagship carbonated products are at a near standstill in the key U.S. market, with 1% growth or less” (Industry brief: Beverages, 2003). Recent years, the remarkable feature of beverage industry in the USA is imbalance between supply and demand. Economists explain that “after years of rapid growth, it seems that the average American can’t drink any more flavored, fizzy soda water” (Industry brief: Beverages, 2003). On the other hand, the growth of Pepsi-Cola sales was 7.5% in 2004 and reached $8,313.0 million (Pepsi-Cola North America. Hoovers. 2006). Another determinant of this situation is low incomes of many families which prevent them to buy high quality products proposed by Pepsi-Cola. “The big three carbonated beverage makers [Pepsi, Coca Cola, and Cadbury-Schweppes] now exist in 2
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Pepsi-Cola NA: Marketing Management a stable oligopoly that changes only by small increments and which controls over 90% of the market” (Industry brief: Beverages, 2003). Product The product range of Pepsi-Cola involves carbonated soft drinks such as Pepsi, Pepsi Twist, Diet Pepsi, Mountain Dew Sierra Mist, and Mug Root Beer, etc. These drinks represent 1/3 of total soft drink sales in Northern America. Some years ago, Pepsi- Cola launched a new product, non-carbonated beverage Aquafina which has become one of the most popular bottled water brands in this region. Customers and product innovations are the primary driving factors of this industry (Pepsi World, 2006). Strong market position of the company in the North America is based on brand
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Pepsi Cola marketing 3 - Pepsi-Cola NA: Marketing...

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