STR 581 Wk 6 final paper draft (2)

STR 581 Wk 6 final paper draft (2) - S trategic Plan 1...

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Strategic Plan 1 PepsiCo Beverages North America Strategic Plan Carl R. Foster STR 581 May 25, 2011 David Geerinck
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Strategic Plan 2 PepsiCo Beverages North America Strategic Plan Executive Summary The following strategic plan is proposed for PepsiCo North America. It is proposed that for North America that promotion of the products be geared to the under 18 age group. Pull strategies through distribution channels can stimulate demand for Pepsi’s beverages for a new generation of soda drinkers for the next decades and into the future. Strategic alliances should be developed beyond the current affiliations’ where promotional star endorsements (say Justin Beeber or other well known celebrities) can broaden Pepsi appeal and bring with them the targeted market segment. Coke, the primary competitor has entrenched itself at least in the North American market with much older generations. Pepsi’s continued marketing to the new or next generation should give it the competitive advantage in decades to come. Pepsi’s focus on snack products that are healthier by design should continue considering the health consciousness of the consumers in North America. Improvements with healthier products will bolster Pepsi’s profitability while improving sustainability. Company Background and History PepsiCo came into existence in 1965 after Frito Lay and Pepsi-Cola, two very large corporations merged. Tropicana (1998) was added to the family line of products at PepsiCo. In 2001, brought about the merging of Quaker Oats, which also added a company called Gatorade. Pepsi has been around (and assorted other carbonated beverages) for over 100 years. PepsiCo’s brand acquisitions have made it a conglomerate controlling a significant share and brand equity
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Strategic Plan 3 with convenience beverages and foods. The volume of sales expressions are measured at the retail level showing success in manufacturing in part by PepsiCo. PepsiCo’s family of products consists of PepsiCo International, Quaker Oats, PepsiCo Beverages North America, and Frito- Lay. These divisions contribute significant revenue to the parent company. PepsiCo North America as well as other divisions faces the necessity to change with the demand for healthier product development because of a more health conscious consumer market environment. The Company’s products have been found in schools, vending machines, small and large grocery stores, and other distribution channels. The focus for this paper is PepsiCo Beverages North America. PepsiCo (the company) markets their products in the United States and Canada. Product lines include carbonated soft drinks (soda pops), ready to drink teas, Gatorade (isotonic sports drinks), Propel, enhanced water, bottled water (Aquafina), and juices (Dole, Sobe’, Tropicana). Besides producing and selling the finished products, the company produces for
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STR 581 Wk 6 final paper draft (2) - S trategic Plan 1...

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