Economic the financial crisis caused the mexican peso

This preview shows page 8 - 12 out of 15 pages.

Economic: The financial crisis caused the Mexican peso, British pound, the Euro and the Russian ruble to depreciate. As such, PepsiCo’s net revenue growth was reduced by 5%. In the US, interest rates have been abysmally low between zero and 0.25% since December 2008 thereby allowing companies such as PepsiCo to make use of low borrowing rates to invest in operations and new product development (Murchie 2010). Likewise, in the 8
BSBMKG502B - Establish and Adjust the Marketing Mix UK, The Bank of England has maintained an all-time low interest rate of 0.5% (BBC 2010). 9
BSBMKG502B - Establish and Adjust the Marketing Mix Social: There is a new demand for healthy foods and beverages. As a result, PepsiCo is increasingly investing in developing healthier options to its beverages as well as promoting Heath Foods. PepsiCo has developed a Blue Ribbon Advisory Board, made up of leading health and wellness experts and third-party advisors from across the globe in order to help the corporation face these newly strengthened consumer demands. Furthermore, PepsiCo has recently worked alongside the Clinton Foundation, American Heart Association, and the North American beverage industry in order to set policies regarding placement of the correct products in the correct areas. Technological: PepsiCo Inc. relies heavily on technology to carry on its different operations and perform efficiently. Their technologically advanced distribution system, Direct Store Delivery (DSD), allows them to supply distributors and retailers with fresh stock efficiently. PepsiCo also has an extremely sound information technology infrastructure. To build and maintain an efficient IT infrastructure is a key asset to the corporation’s operations and helps improve the communication flow within their massive corporate framework. It also helps them improve the effectiveness of their operations and maintain financial accuracy. 7. Identify customer/consumer priorities, needs and preferences and the way they impact the marketing mix. Consumers' preferences to choose one drink over another are influenced, not only by genetic, psychological and environmental factors, but also by the beverage's specific attributes. Customers want thrill and adventure and soft drinks that energize them. To satisfy these needs of the customer Pepsi have to launch energy drinks to its product line and promotional and advertising activities should also be adapted accordingly. Element of marketing mix should be aligned with needs of customers; otherwise company will lose its market share. 10
BSBMKG502B - Establish and Adjust the Marketing Mix 8. Consider product, pricing, promotional activities, distribution channels and service variations. If additional products or services or new products will be offered, evaluate these against marketing objectives, target market characteristics and desired positioning.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture