The distribution system used depends on customer needs, product characteristics and local trade practices. Direct-Store-Delivery We, our bottlers and our distributors operate DSD systems that deliver snacks and beverages directly to retail stores where the products are merchandised by our employees or our bottlers. DSD enables us to merchandise with maximum visibility and appeal. DSD is especially well-suited to products that are restocked often and respond to in-store promotion and merchandising.
In this way, while the soda industry has achieved impressive growth during the recent years in US, it is the bottled waters and soft drinks including energy drinks that were leading the growth of the industry.
The brand is famous all over the globe and its products sell in more than countries. Currently, Pepsi has just one major rival — Coca Cola. The soda giant also invests a lot in marketing and reputation management. Strong financial performance — Strong financial performance is also among the key strengths of Pepsi.
This performance was based on the efforts the brand made in last five years. In this period it made major investments into marketing, digitization and Distribution analysis of pepsi areas.
This represented a growth of around million dollars over the previous year. High level of net revenue and income allows Pepsico to spend more on things like marketing and Research and Development. InPepsico further extended its foodservice partnerships thus increasing its distribution and expanding market share.
The brand brings its products to the market mainly through direct store delivery, customer warehouses and distributor networks. Depending upon the customer needs as well as local trade practices and product characteristics, it selects the distribution network to use. A very large number of suppliers located throughout the world in several countries supply Pepsico with raw materials at low prices.
Strong marketing capabilities — Pepsico is also known for great marketing and its strong marketing capabilities. It invests a very large sum in marketing.
InPepsi spent more than 4 billion dollars on marketing out of which 2. It has also improved its digital capabilities over the last 4 years by making a very large investment in this area.
The result has been its digital campaigns being highly successful in the recent years. Similarly, more marketing campaigns run by the brand, several of which were run solely though digital channels were highly successful and popular among its customers. Large and varied product portfolio — Pepsi also has a very large and varied product portfolio.
There are 22 billion dollar brands in its product portfolio, each of which earns it more than a billion dollar every year in revenue.
During the recent years, the brand has innovated its product portfolio further and added more nutritious and healthy products in snacks as well as beverages categories.
Pepsi is continuously investing in making its production and supply chain agiler. It is also spending heavily on research and development so that its supply chain can be made more sustainable and it can bring healthier products to the market.
Weaknesses — Over-dependence on the US market: Pepsi is present globally. However, it still depends on the US market for a very large part of its revenue.
In order to reduce its dependence on the US market, it must release more of its healthier products into the global markets and particularly Asia. However, the brand has also felt the pinch of a stronger dollar. Reduced Net revenue in Middle East: This decline was due to weakening Egyptian currency.
Fluctuations in the international currency exchange rates have had a detrimental effect on the revenue of Pepsi from time to time. Technological innovation down the distribution network: There are several opportunities available to Pepsi which can help it grow its brand and businesses.
Technological innovation and digitization can also provide it with growth opportunities in a number of areas from supply chain management to manufacturing apart from marketing and distribution.
CSR and water recycling: Investing in CSR and water recycling is also an opportunity that Pepsi can easily exploit for a better reputation and to grow its popularity.PepsiCo SWOT Analysis & Recommendations. Updated on Updated on February 6, and Pepsi products.
PepsiCo’s extensive global production and distribution networks are strengths that support the company’s international growth and expansion strategies. In this aspect of the SWOT analysis, PepsiCo’s strengths are sufficient to support its.
Pepsi SWOT. SWOT Analysis PepsiCo. Would you like a lesson on SWOT analysis? Strengths. Branding – One of PepsiCo’s top brands is of course Pepsi, one of the most recognized brands of the world, ranked according to Interbrand.
As of it ranked 26th amongst top global brands. This disrupted both manufacturing and distribution.
This PepsiCo SWOT analysis reveals how the second largest food company in the world uses its competitive advantages to dominate snack and beverage industries. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. This PepsiCo SWOT analysis reveals how the second largest food company in the world uses its competitive advantages to dominate snack and beverage industries.
Beverage (Pepsi, Mountain Dew, Gatorade, Sierra Mist) Food (Quaker Oats, WBD, Rold Gold) Snack (Lay’s, Doritos, Cheetos). Ryan Ricker 12 PEPSI CO Product and Distribution Strategy PepsiCo is a multinational food and beverage company.
Operating in over countries, it is the . PepsiCo’s extensive global production and distribution networks are strengths that support the company’s international growth and expansion strategies. In this aspect of the SWOT analysis, PepsiCo’s strengths are sufficient to support its global growth strategy.
|Primary Sidebar||The company grows despite an increasing level of market saturation.|
|VRIO Analysis - Soft Drink Industry SAR Analysis||The recipe is the biggest secret Coca-Cola has to their success. It is important for Pepsi to set it self apart from Coca-Cola and generic colas in a market where the end product is essentially the same type of beverage.|
|Header Right||Anirudh Shetty Group No. B8 2 Dhaval Vasani — Roll no.|
|PepsiCo SWOT Analysis (5 Key Strengths in ) - SM Insight||Through our operations, authorized bottlers, contract manufacturers and other third parties, we make, market, distribute and sell a wide variety of convenient and enjoyable beverages, foods and snacks, serving customers and consumers in more than countries and territories.|
|Read Lessons||As of it ranked 26th amongst top global brands. These recent initiatives will enable PepsiCo to adjust to the changing lifestyles of its consumers.|