Pepsi Essay

787 Words Jan 19th, 2012 4 Pages
Research Proposal

Pepsi

Determine the current brand loyalty of Generation Y to the Pepsi-Cola brand.

Situational Analysis

SWOT Analysis PepsiCo
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 2008 it ranked 26th amongst top 100 global brands. Pepsi generates more than $15,000 million of annual sales. The strength of the Pepsi brand is evident in Pepsi’s presence in over 200 countries. The company has the largest market share in the US beverage at 39. Such brand dominance insures loyalty and repetitive sales which contributes to over $15 million in annual sales for the company * Distribution - The company
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These recent initiatives will enable PepsiCo to adjust to the changing lifestyles of its consumers. * International Expansion - PepsiCo is in the midst of making a $1, 000 million investment in China, and a $500 million investment in India. Both initiatives are part of its expansion into international markets and a lessening of its dependence on US sales. In addition the company plans on major capital initiatives in Brazil and Mexico. * Growing Savory Snack and Bottled Water market in US - PepsiCo is positioned well to capitalize on the growing bottle water market which is projected to be worth over $24 million by 2012. Products such as Aquafina, and Propel are well established products and in a position to ride the upward crest.PepsiCo products such as, Doritos tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips, Fritos corn chips, Ruffles potato chips, Sun Chips multigrain snacks, Rold Gold pretzels, Santitas are also benefiting from a growing savory snack market which is projected to grow as much as 27% by 2013, representing an increase of $28 million.
Threats
* Decline in Carbonated Drink Sales - Soft drink sales are projected to decline by as much as 2.7% by 2012, down $ 63,459 million in value. PepsiCo is in the process of diversification, but is likely to feel the impact of the projected decline. * Potential Negative Impact of Government Regulations - It is

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