Strategic Analysis: PepsiCo, Inc. VS Coca-Cola Company

Introduction

The soft drinks are the most popular among the teenage and the middle age group peoples. The soft drinks contain the sodas, in taking of sodas cause the problems. People taking without this are healthier. But these drinks somehow are the leading and they are having lot of brand names.

This study is mainly concentrating towards the two major brands strengths, weakness and the competition analysis in the market area like domestic and international business. This also studies the difference between the two companies, background, opportunities, threats, challenges and the effectiveness of the brands for their success with the new strategies and its improvements as the results.

Analysis PepsiCo's background

The external factors influence the organization either in high or low level in the long term basis example competitiveness. Using this one can evaluate, prepare and anticipate it’s effectiveness in the mere future. Here we are going to analyze the consumer goods of two leading beverage companies

The external environment are based on two main factors are Threats and opportunities. Industrial factors influenced the similar services, customers, competitions. Both geographical and industry can be analyzed by various aspects such as primary, secondary, territory, global, national, regional and local.

PepsiCo's Strengths

Some of the points that are illustrating the strengths of the PepsiCo are the market

segmentation. Segmenting the market with the diversification of products, through which they were analyzed and motivates the customers. Identifying cost, objectives, distribution systems, new market trends and the key factors for success analyze the industrial competition. The last and the final is the expansion of market in the other countries through the proper investigation of environmental analysis.

PepsiCo's Weaknesses

Prediction of market, its recent trends and the cost control is an important factor. Every other company’s factor lies on its cost calculations. Any industry or organization fails to estimate the cost structure will resulted in the mis-achievement and resulted in loss. This may leads to the lost in business and may sometimes leads to the sudden fall in the Financial Level.

PepsiCo's Competitive Positioning

Analyzing and expanding the market with the full-fledged positioning by acquiring the strategies tend to invest in relevant areas, having the niche markets. Continuous evaluation and market analysis gives the best knowledge about the industry and the competitive edge. Joint ventures and collaborations with other countries made the niche market in food and beverage industry. Water bottle manufacturing with distribution and sales effects in competitive edge to won the number one place in the industry.

PepsiCo's opportunities and challenges for future growth and competitiveness and propose courses of action

Opportunities are wide spreader. Strong market and its reputations tend the company to launch the new product whenever they need. It also has the strong negotiation skills towards the market. Expanding the market towards the internationalization provides the industry to sustain in the market for the long- term basis. Developing the relationship with the employees and the customers gives you the in-depth understanding. Monitoring the performance and work ability of the suppliers, progress towards the tactics, objectives, effectiveness and achievements to recommends the improvement in business.

Challenges

The biggest challenges are their beverage, which contains of the carbonated water. So many companies are restricting towards this carbonated water as this may harm the health. This may affect the business in cause of supply chain will have the relative impact on suppliers. Diversification of products towards the snacks and functional drinks creates the positive feedback, rather than the carbonated waters. Instead of third party distribution channel, they can delivered the goods through direct will improvise the profit more and increased the business. Redefining the sales promotion will increase in sales and customers will be retained. Helping the local authorities to develop and innovates the new trends to tackle and enhance the projects to sustain the stakeholders

Competitiveness

Market competition are based on several factors such as segmentation, Targeting the market, Positioning the market and mixing up the market with their product, promotion, Place, price, customers problem and solution, customer reputation, convenience and communication. Manufacturing and selling the product in

the market, where there is an availability. Difference in price and quantity will make the difference from sector to sector. Diversification tends stepping towards the marketing source and strategies to build the customer relationship, by introducing more products to attract more customers.

Comparative analysis of Coca-Cola Company VS PepsiCo Inc. two companie’s strengths and weaknesses, opportunities, challenges and competitive positioning with little thesis.

 As per the carbonated drinks, coca cola is the leading industry strongly captures the niche market across the globe whereas, PepsiCo is diversifying the market and still looking for companies to merge to sustain in niche market. In the production PepsiCo is doing the drastic development in the inventory and converting it very fast in sales. The management process is simple and easy in mode of converting into immediate. In coca cola, the production is low, but generating the high income. Restructuring takes place often in the case of PepsiCo, but not in coca- cola.

Even though both are beverage manufacturing companies, both are adopting and following the different strategies. To obtain the cost and demand depends on the variable factors. The oligopolies behavior is taken to estimate the price, market power and examine the market structure how the change affects the variable strategies.

The coca colas share rate in the market is 44% and the PepsiCo share value in the market is 34.6%. The price differences in the two beverages are due to the more usage of coca- cola syrup rather than the PepsiCo. The recent study shows that by applying the cross – entropy and Kolmogorov Simonov test, the results are significance in results. The profit maximization and Nash restrictions are consistent with the data, which contains the useful information.

Coke has the single model strategy for distribution on a moderate price with high intense of advertising strategy. Pepsi had the bi-model distribution with the high price intensive distribution.

Percentage based on Categories

 

 

GME                     

 

GME-Nash

Company      

Price    

Advertising    

Price    

Advertising

 

 

 

 

 

Coke          

70          

68          

55

63

Pepsi

61          

33

54

32

The corporate bond rate does not directly affect the costs of Pepsi, but the coke cost increase with the interest rate. Both are having the parametric methods for the distribution and the business specification.

Analysis And Evaluation of Business

Keeping in touch with the franchisees agreement and retaining the customers.

Building the bottling plant is highly typical task, in order to find or entering in to distribute the products. Cola spends more amount on advertising to get the high result oriented.


Industry Analysis using Porter’s model

Carbonated Soft Drink Industry
 

Now

Future

Effect(for current companies)

Power of Suppliers

Low-Moderate

Increasing

Negative

Power of Buyers

Moderate

Increasing

Negative

Threat of Substitutes

Moderate-High

Increasing

Negative

Barriers to Entry

High

Increasing

Positive

Rivalry

High

Increasing

Neutral

The coke employs the differentiation strategy to promote the product’s coke offering the non carbonated beverages by positioning for its own strategy to attract more customers. Connections with the international bottlers to have the strong presence and to enhance the strong relationship between the buyers and the suppliers by the value of creation which maintain the high market value with the high market share. Coke stock in better perfuming the due growth is stronger in the emerging market. Product line includes the healthier choices, Declines as consumers choose less costly with the products still growing the volume and revenue.

Conclusion

Recent studies show that the empirical study based on the investigation the color effects the evaluation on beverages and food. This emphasizes the quality and perceived between the taste, color and sensory qualities. Resulting in maintaining and the retention the customers’ produces the high market share which tends to penetrate more share and the level of customers are increasing day by day. This never tends to decrease between the customers level throughout the world. Cognitive and expectancies are the main factors to the reflections are more than other drinks. The Level of discrepancies are high. The situational factors need to be evaluated by the integrated technology to predict the individual behavior with the selection behavior. The perception and met perceptions are mixed in today’s situations.

References

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