Pepsico Student Case Study
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PepsiCo has developed a strategy the last few years that involves a motto they go by, “Good for all, is good for business”. They are developing a nutritious snack line and adding a low sugar beverage called Pepsi Max, which have been sold oversees for several years before introduced to the U.S. Pepsi Max is really just diet Pepsi with more caffeine and is geared towards the males since diet Pepsi is drank by mostly women. They are also creating a healthier internal environment by encouraging and inspiring their employees to live healthier lives with workplace wellness programs.
While they are creating a fun-for-you and better-for-you portfolio, they are also becoming socially and environmentally conscious and this is what their “Performance with a Purpose” is all about. For example, they are investing in plants that will conserve water, increase recycling materials and reduce the carbon foot print.
Their competitive advantage and one of their strategic sweet spots is called the “Power of One” (Wheelen & Hunger, 2012, p.180). Their marketing research has shown that most people grab a beverage when they are snacking. With this discovery, they have marketed their snacks together with their beverages; Doritos and Pepsi, the Power of One.
I also can see they are the first movers when it comes to their timing tactics (Wheelen & Hunger, 2012, p.193). They have internationally gained competitive speed with the purchase of a plant in Russia and plan to invest $1 billion of renovations; they know how important it is to globally compete. They are also reaching out to new diverse markets, which 45% of their business comes from. For example, their investment in India has grown 2.5 times in the last couple years and Brazil has grown 3.5 times!
This is all definitely a blue ocean strategy.
I dont really have a specific store that is my favorite; however, my favorite place to shop is Jordan Creek Mall. Why? I guess it because I can shop, eat and have a martini all in one place and its just 10 miles away from home. Since Jordan Creek is a broad category of shopping I decided to look at the City of West Des Moiness strategy and what they are doing to bring in more revenue and be competitive against other citys around Iowa and/or the Midwest. We already know that Jordan Creek Mall was a strategic move to not only accommodate the current residents, but also attract more people and businesses to the area. However, West Des Moines is also trying to build a broader spectrum of businesss that will help secure a safe portfolio rather than gathering all their eggs in the retail and service industry. Their top five industries that fall into the product differentiation category (Wheeler & Hunger 2012, p.185:
Financial Services/Insurance (Wells