Macro and Micro Environment Assignment 1
Pepsi-Cola Soft Drink Company
Choose a soft drink manufacturer that you are familiar with.
-Describe the Micro and Macro of the company
-Evaluate the existing challenges faced by the Entrepreneur
-Recommend appropriate innovation and ideas
In order for the entrepreneur to complete in the soft drink industry.
Pepsi-Cola is a carbonated beverage from PepsiCo Company and is a major competitor to the US Coca-Cola Company. The basic ingredients are carbonated water (water, carbon dioxide), white sugar, caramel, phosphoric acid, caffeine, and flavoring. Originally made in the 1890s by a pharmacist named Caleb Bradham in North Carolina. It was made from carbonated water, sugar, vanilla, raw oil, pepsin and cola nuts. The drug was originally used to treat stomach diseases and was later named Pepsi and was registered as a trademark on June 16, 1903. Pepsi-Cola is one of the largest soft drinks industries in Australia. Pepsi-Cola’s company also have comprises different soft drinks brand which are Pepsi, Pepsi Light, Pepsi Max, 7UP, Diet 7UP, Caffeine Free Pepsi Light, Mountain Dew.
2.Micro Environment of Pepsi-Cola
Pepsi-Cola was incorporated in Delaware in 1919 and re-registered in North Carolina in 1986. It is in a leading position a global food and beverage company with a delightful portfolio of brands, including FritoLay, Gatorade, Pepsi, Quaker and Tropicana. Authorized bottled, contract through our business manufacturers and other third parties, we manufacture, market, distribute and sell all kinds of conveniences and delightful drinks, food and snacks to serve customers and consumers in more than 200 countries territory.
Pepsico holds their suppliers to the same standards of integrity to which we hold ourselves. An unethical or illegal act by a supplier may hurt PepsiCo’s reputation as a world-class company and cause a loss of goodwill in the communities we serve. Therefore, all suppliers are expected to follow our Supplier Code of Conduct, and relevant policies and commitments as a condition of doing business with us. These include:
Pepsico allows their suppliers to comply with their own standards of integrity. Unethical or illegal behavior of suppliers may undermine the reputation of PepsiCo as a world-class company and lead to a loss to their communities. Therefore, all suppliers should abide by Pepsico Supplier Code of Conduct and related policies and commitments as a condition for doing business with Pepsico. These policies are PepsiCo Global Supplier Code of Conduct, PepsiCo Environmental, Health and Safety Policy, PepsiCo Sustainable Agriculture Policy, PepsiCo Land Use Policy, PepsiCo Forestry Stewardship Policy, PepsiCo Sustainable Packaging Policy, PepsiCo Human Rights Workplace Policy, PepsiCo Palm Oil Commitment, PepsiCo Sugar Cane Commitment and PepsiCo Cage-Free Egg Policy.
These criterion are based on international conventions including the Universal Declaration of Human Rights; the International Covenant on Civil and Political Rights; the International Covenant on Economic, Social and Cultural Rights; and the ILO Declaration on Fundamental Principles and Rights at Work.
Pepsico’s suppliers, contractors, consultants, agents and other goods and services that do business with th global PepsiCo entity are subject to the guidelines applicable to this standard.
Pepsico approach to enhancing supply chain compliance with their policies and commitments is based on Pepsico’s Sustainable Sourcing Program which is to a formal risk assessment, third party audit and mitigation process for first tier suppliers experiencing in Business Continuity Planning Second, Pepsico’s Sustainable Farming Initiative which is a continuous improvement program based on environmental, social and economic indicators that ultimately provides Pepsi-Cola with products for specific commodities.Third, Pepsico Provide awareness and training to all suppliers by ensuring that our Global Supplier Code of Conduct is included in all new contracts and providing ongoing training to suppliers through webinars and face-to-face meetings. Pepsico also Add specific plans for knowledge, awareness and outcomes for new priority supply chain issues. For example, we are committed to third-party audits focusing on the social and environmental aspects of land rights in Brazil, Thailand, Mexico and the Philippines.
2.3 Marketing intermediary
According to the DSD framework, Pepsi can provide items directly to retail stores. Among these three channels, DSD provides the greatest recognition for Pepsi. It is more reasonable for items that are often replenished and sensitive to progress and display. The customer warehouse framework is a lower cost distribution channel. It is the best choice for items that are not fragile, perishable, have low turnover and are not easily available. PepsiCo provides nutrition and beverages to restaurants, organizations, schools and stadiums through external staff management and distribution of merchants and administrators.
Pepsi-Cola’s customers include wholesale and other distributors, food service customers, grocery stores, pharmacies, convenience store, discount/dollar store, large store, member store, hard drive discount store, e-commerce retailers and authorized independent bottlers. It usually give its independence to the exclusive contract between the bottler and our trademark to sell and produce certain beverage products a specific geographic area. These arrangements give the right to charge independent bottlers.
Used for concentrates, finished products and Aquafina royalties, and specifies the required manufacturing process product quality. We also grant distribution rights to separate fillers for certain beverage products. Pepsi Cola bring their trademark to a designated geographic area.They rely on and provide financial incentives to their clients to assist with distribution and promotion. Pepsico’s products are for consumers. For their independent distributors and retailers, these incentives include discounts, product placement fees, promotions and displays. Pepsico provide these incentives funds known as bottlers, negotiate with each bottler every year to support various transactions for our independent bottlers.
Pepsi-Cola has its competitors such as Coca-Cola, Dr.Pepper Snapple, Red Bull, Dabur Real Juice and etc. Coca-Cola is the major competitor of Pepsi-Cola.
Coca-Cola also called as Coke. It is also carbonated soft drink. It is the one of the non-alcoholic beverage company and popular brand in the world. The company’s top five soft drinks brands are Diet Coke, Coca-Cola, Sprite, and Fanta.Other than soft drinks, the company also markets juice drinks, waters, sports and energy drinks. For example, Minute Maid, Dasani, Powerade, and Vitaminwater are some of the other brands.
The company is valued at about $79.2 billion and it is one of the most valuable company in the world. It has a wide presence across the globe and peoplewho visit any country will find its presence there. The marketing strategy of Coca-Cola is good and it targets people of all ages.
3.Macro Environment of Pepsi-Cola
Although the soft drink industry has a large customer base, Pepsi is more inclined to subdivide itself into “New Generation”. These terms used in Pepsi advertising campaigns are what the marketer calls the X-generation concept, which is outlined between the ages of 18 and 29. In addition, PepsiCo has focused on the growing American youth market in the 1990s by signing exclusive contracts with Americans. Britney Spears plays schools and advertising campaigns such as “The Next Generation” and “The Joy of Pepsi”. Pepsi believes that if they can make this market adopt their products, they can build a loyal customer for a long time.
SodaStream has achieved strong growth in parts of Europe and Asia, but has been trying to penetrate the market in the US. PepsiCo has indicated that it will continue to expand its new CEO’s health food and beverages and announced the acquisition of SodaStream, a manufacturer of household water fountains, for $3.2 billion. A few weeks before the acquisition of the Israeli company, PepsiCo announced that Indra Nooyi, the long-time leader in bringing its cola and snack groups to natural and organic foods, will resign later this year. Rama Laguarta, the incoming CEO, made it clear that he believes the deal is to keep Ms. Noy’s direction, and that Ms. Noy has expanded her healthy Quaker Oats division, even though it relies on Pepsi and Frito-Lays to get most of their income.A few days after Coca-Cola, its main rival, agreed to acquire a minority stake in BodyArmor, PepsiCo reached an agreement that BodyArmor is a sports drink maker backed by American basketball star Kobe Bryant. For many years, Coca-Cola has been working hard to relax Pepsi’s sports drink business Gatorade.
According to Pepsi’s 2009 Annual Report on Environmental Sustainability, the company is committed to protecting the planet’s natural resources through innovation and more efficient use of land, energy, water and packaging.
In terms of water conservation, Pepsi is committed to increasing water efficiency per unit of production by 20% in 2015, and the company is working hard to achieve this goal. In 2009, Pepsi saved more than 11 billion liters of water by improving eco-efficiency and began to adopt innovative environmental measures such as cleaning the Gatorade bottles with clean air instead of washing them with water. In fact, the air purification process is very effective, and Pepsi is promoting this technology to bottling plants around the world, saving billions of liters of water.
Pepsi also saves water and protects the environment by providing some of its facilities with state-of-the-art water filtration and purification systems. This technology enables its plant in Casa Grande, Arizona to reuse 80% of its process water. In 2009, PepsiCo collected 640,000 liters of water at the Gatorade plant in Mexico City.
Pepsi’s environmentally friendly packaging improvements further demonstrate the company’s commitment to the environment. In fact, Pepsi continues to lead the industry by adding at least 10% recycled polyethylene terephthalate to beverage containers in the United States. For many years, Pepsi has been working to create lightweight, lightweight containers that are compatible with recycling systems in the United States.
PepsiCo announced the launch of its Social Vending System, an advanced network unit with full touch screen interactive vending technology that enables consumers to better connect with the Pepsi brand at the time of purchase.
Using digital technology, PepsiCo’s social vending system allows any user to give a friend a choice by selecting a drink and entering the recipient’s name, mobile number and personalized text message*. You can also choose to further personalize your gift with a short video you recorded. The gift comes with a system code and instructions that can be redeemed in any Pepsi social vending system. When the recipient redeems his or her gift, they can choose to thank the original sender with their own gift or pay forward and give the drink to others.
PepsiCo’s innovative use of telemetry through Social Vending Systems also delivers significant operational benefits, enabling customers to remotely manage inventory levels and delivery schedules, and easily update digital content online, enabling them to change messages and needs as media content.
The health of a democratic society depends on the responsible participation of citizens in politics deal with. PepsiCo Concerned Citizens Fund (CCF) receives volunteer contributions from volunteers. The contribution of political movements to US federal and state parties, committees and governments CCF and corporate corporate donations provide important opportunities. It Participate in the democratic process for PepsiCo and its employees. Pepsi believe that providing financial support to responsible business candidates is an important task. It help improve the business environment, our quality of life and the means of society
PepsiCo’s organizational culture demonstrates the company’s commitment to maximizing its human resources. The organizational culture of a company defines the traditions, values and methods of workers. In the case of PepsiCo, employees are encouraged to focus on excellence in a collaborative manner. As the world’s second largest food and beverage company, PepsiCo is constantly striving to improve its workforce. Maintaining a high performance culture to maintain this market position is critical. PepsiCo uses its organizational culture as a strategic approach to optimize its performance by leveraging the strengths of its employees.
PepsiCo’s organizational culture emphasizes caring for employees and leveraging their abilities to achieve high business performance.
Laying the foundation for a serious confrontation. When you see the ideas and strategies for creating legendary marketing, you get a lot of insights. Today, we are breaking the Pepsi Challenge. The Pepsi Challenge marks a major shift in the cola landscape. In 1975, Coca-Cola was the 800-pound gorilla on the cola market, which has remained at the top for decades. Excellent distribution systems, effective marketing and incredible brand loyalty create a large number of happy customers.
Pepsi is a newborn in this neighborhood and hopes to prove it. They are very hungry and willing to mix it together. A savvy executive at Pepsi presented a bold revolutionary strategy to do this.
The idea is the Pepsi Challenge. Pepsi entered the malls across the country, inviting people to try blindly between Coca-Cola and Pepsi. The results are very good; people choose Pepsi more than Coca-Cola.
5.Recommendation of innovation
In Brand Keys’ 21st Annual Customer Loyalty Participation Index, Pepsi seized Coca-Cola and became the most loyal conventional soda brand. Coca-Cola has retained this position for the past four years, while Pepsi is the second violin. Its aggressive marketing and innovation, designed to create excitement for its brand, seems to have paid off, and the company won first place in 2016. The company spent most of its marketing budget in the 2015 Super Bowl sponsorship, including sponsoring PepsiCo to pilot the Pepsi Performance in Canada and other markets last year and will implement the idea globally in the summer of 2016. . The company appointed its first chief design officer in 2012 and has been using innovation to discover new opportunities through design to promote its product platforms and brands in its so-called “future society”, influenced by social media. PepsiCo has classified its diversified product portfolio as:
I)”Having fun for you”, including carbonated soft drinks and snacks;
II)”More for you”, with low calorie content;
III) “For you The benefits” and it uses its innovative marketing techniques to maintain its new leadership in brand loyalty.
Pepsi has succeeded in generating profits in this highly competitive industry. The company should now adopt a strategy that is now only to increase its market share and solve its own shortcomings, but it will increase the overall size. Ultimately, this strategy will allow Pepsi to grow and maintain above-average returns.