STR 581 wk3 Internal and External Environmental Scan

STR 581 wk3 Internal and External Environmental Scan -...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: External Environment Assessment 1 Pepsi North America External Environment Assessment Carl R. Foster May 16, 2011 Michael Geerinck External Environment Assessment 2 External Environmental Assessment In todays beverage business environment alternatives to the standard soda beverage are increasing their share of the marketplace. PepsiCo and other beverage companies such as Coca- Cola must understand the changing societal concerns, lifestyles, and other factors that can help them with their success. The importance of a more healthy diet and environment has a significant impact on the soft drink industry. Society has determined that soft drinks are comprised of unhealthy ingredients such as high fructose corn syrup, caffeine, and sugars along with salt. Research has shown that in the last five years the industry has experience zero growth. As zero growth presents constraints for new opportunities in the market, constriction does not apply to increasing current revenue streams. The company expects retention within the demographic chosen the new or next generation, even as they grow older. The company holds a distinct advantage with this demographic over Coke. The company must continue the younger generation as a competitive advantage. Over time, this strategy will allow the company gain market share against Coke, and offset slowing in the overall market. The company has targeted the pull strategy for distribution channels, and has focused on the consumer. The industry itself does not directly sell to the consumer, rather they have distinct distribution channels to restaurant chains and licensed bottlers. Business-to-business is the preferred transactional distribution. Of all soft drinks sold 22.6% are in the form of syrup sold for fountain use. The remainder is primarily business-to-business transactions, (retail and distributorships). While the companys sales are not direct to consumer sales, this strategic plan should help stimulate demand at the consumer level, which results in greater business-to-business demand from the increased consumer volume of sales. External Environment Assessment 3 Pepsi and Coke are the overwhelming dominates players in the beverage market in North America. The beverage market has been this way since their first market entry. Experts suggest the soft drink industry is a duopoly or oligopoly. In 2006, Pepsi had 26% of the domestic market and Coke has 23%, Cadbury Schweppes (10%) has become a player within in the industry by acquiring interests in Seven-up, Canada Dry, and Dr. Pepper. PepsiCo SWOT Analysis Strengths Maintain global leadership in beverages that are not carbonated. Pepsis advertising budget spends significant amounts of money on mass media advertising when introducing new product new competition acquisition to increase Pepsis competitive advantage....
View Full Document

Page1 / 17

STR 581 wk3 Internal and External Environmental Scan -...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online