"PepsiCo" a discussion of M.Azim Ulfati

"PepsiCo has historically trailed the Coco-Cola Company in carbonated beverage sales. Suggest a strategy that may enable PepsiCo to close the gap in this market. Explain how this may allow PepsiCo to achieve the number-one market position."

I think that Pepsi Next is obviously designed to fill the gap between normal sugar cola drinks and diet colas, trying to appeal to consumers that may sometimes prefer lower-calorie drinks but are concerned with the taste or the social image of diet drinks and vice versa and and in order to close the gaps it also needs to improve their strategy, improve quality of the products, the other gap is the lost Pepsi drinkers, it needs to win the Pepsi drinkers back from the Coca Cola Co and with that Pepsi needs to announce more strategic investment to growth for its share holders, increase advertising and marketing support, building a social media program is an exciting opportunity to allow PepsiCo to achieve the number one market position. As U.S. Consumption of carbonated soft drinks has steadily declined in the past decade.

Part of that comes down to the array of alternative beverages the market now offers. Part of it comes down to health concerns in a nation with an obesity problem. Also I think Pepsi company has to refocus Pepsi and modify its products and focus on water, juices, teas and sport drinks besides its top brands like Aquafina and Gatorade and while it trails soft drinks sales, it should lead the world in ready to drink teas through Lipton and creating more and more healthy food through its Quaker Oats, Gatorade and Tropicana divisions and strengthen its global nutrition Group to deliver breakthrough products.

Further more, it’s an opportunity to dramatically change the way it connects with customers and other constituents - a chance to tap into conversations, learn more about how your brand is perceived, promote your product or service in new ways, and ultimately grow its business. Often the things that the PepsiCo learn in the social media program can inform them more traditional marketing efforts as well, as it engages directly with its audience and learn more about what makes them tick.

Social Media Marketing has helped and will help more and more Pepsi to localize social marketing efforts in different culture contexts to gain more customer insight than it would have otherwise and close the gap in the market, which it has historically trailed the Coco-Cola Company in, carbonated beverage sales. Consistency of brand image is necessary on a global scale, but it is equally important to leverage the local social media platforms and understand the local consumers in order to carry out successful and efficient campaigns.

Social Media Marketing would create platforms to target multiple consumer segments with all these varying platforms using habits. For example, somebody who registered both on Facebook and Twitter probably does not use them for the same purpose. The saying that “ Facebook is on the social graph and Twitter on the interest graph” still holds. It is generally believed that Facebook friends are interested in the person while Twitter followers are interested in the topic, not necessarily the person. Twitter is more open and dynamic than Facebook, but tweets also fade into the crowd faster. If one carefully checks Coca-Cola and Pepsi’s Facebook and Twitter pages, one would discover that they do not have the same style at all. The Facebook page of Coca Cola is a place for anybody to express any feeling, while Pepsi’s page is neatly managed by a team, aiming to elicit dynamic interactions with the consumers which correspond closely to Pepsi’s fun image.

Other social platforms such as YouTube have even looser connections, but can attract users with a different manner. Pepsi Company analyzes these platforms carefully and chooses the correct strategy, which corresponds to their brand image and company vision.

Social Media marketing help Pepsi Company to understand what the followers want.

Social Media Marketing helps Online and offline events for Pepsi to gain more customers. Pepsi Company chooses to launch both offline and online campaigns separately.

Building relationships, brand loyalty, and business in very important, but it’s also an amazing tool for search engine optimization, opening more doors for people to find you online than anyone could have dreamed of a decade ago via the following Social Media Marketing.

"Take a position on whether PepsiCo’s actions of spinning off its fast food establishments created value for the shareholders."

I think in my idea PepsiCo, the world largest snack maker and second biggest soda producer lost in the past few years and the shares jumped to Coca Cola Co, the largest soft drinks maker. Breakups are accelerating as Kraft prepares the spinoff of its North American grocery unit to focus on snack food. The combination of snack and beverage portfolios create significant value for the shareholder through synergies driven by a common customer base and distribution platform, supplier leverage and shared infrastructure. The value of combined portfolio can be greatest in international markets, which share many activities, and PepsiCo is well positioned to make profits in North America for the successful integration of its bottling business.

PepsiCo’t s market value had dropped so many billions of USD in the past two years, while Atlanta based Coca-Cola’s have gained many billions of profits in the past few years.

"Predict the next international market for PepsiCo and if the Power of One strategy is likely to be successful." "Explain."

My anticipation about the next international market for PepsiCo is that, it will launch and invest more money on ad campaigns. It will push more of their efforts on the quality of the products and making healthier and nutritious brands than Coca Cola Co, it will reduce Calorie and sugar in the beverages. Also it will try and win back cola drinkers lost to other beverages. Pepsi’s research suggests that sugar and carbohydrates is an issue for some consumers, but a reasonable proportion of these consumers have not warmed to the taste of diet colas. Therefore, these ‘sugar-avoiders’ have migrated to non-cola beverages as a better product solution for their needs and preferences.

There fore I would say that PepsiCo would be successful if it tries its best to improve their strategies and to satisfy the needs and wants of customers.