" Marketing Consultancy 1MARKETING CONSULTANCY – PEPSINameCourseTutorUniversityCity/StateDateMarketing Consultancy 2CONTENTSProblem ............................................................................................................................................... 4SITUATION ANALYSIS OF THE MARKET ...................................................................................... 6Macro Environment Analysis - PESTLE Analysis ............................................................................. 6Political ........................................................................................................................................... 6Economic ........................................................................................................................................ 6Social............................................................................................................................................... 6Technological .................................................................................................................................. 6Legal ............................................................................................................................................... 6Environmental ................................................................................................................................. 7Micro environment Analysis ............................................................................................................... 7Porters Five Forces Model .................................................................................................................. 7Internal Environment Analysis ............................................................................................................ 8BCG Matrix Analysis ............................................................................................................................ 8Marketing Mix Analysis ....................................................................................................................... 9Product ............................................................................................................................................ 9Price ................................................................................................................................................ 9Promotion ....................................................................................................................................... 9Place (Distribution) ......................................................................................................................... 9SUMMARY ............................................................................................................................................. 10Marketing Consultancy 3SWOT Analysis....................................................................................................................................... 10BIBLIOGRAPHY ................................................................................................................................. 11 Marketing Consultancy 4Marketing Consultancy – PepsiINTRODUCTIONPepsi Co. Inc is an American multinational company which was established about 50years ago in 1965. It was founded by Delaware. Its headquarters are situated in New York. Itsproduct range can be divided into different categories like; beverages, snacks, and food. Mainbusiness of Pepsi is beverages. Its teenagers and the young adults are the customers of thePepsi who purchase beverages, snacks, and food. (Wikipedia 2015) According to marketstanding, currently Pepsi holds around a 15% market share in global market against 26%share of Coca Cola, 15% share of Diet Coke, and 10% market share of Mountain Dew.(cocacolacapstone.wordpress.com 2013) Problem Pepsi Company is unable to meet its 15% growth target for last 10 years. PepsiCompany faced this issue in the past also. (predicate.wordpress.com 2009). Following are theannual growth figures which have been extracted from (MorningStar 2016):Year Growth Rate (%)2015 -5.442014 0.402013 1.412012 -1.522011 14.982010 33.792009 -0.042008 9.57Marketing Consultancy 52007 12.342006 7.91Source: (MorningStar 2016)From the above table is clearly evident that Pepsi has failed to achieve a sustainablegrowth rate during last 10 years. The growth rate of Pepsi is too much fluctuating and it hasfailed to maintain a sustainable growth rate of 15%. Achievement of sustainable growth ratefor Pepsi is very important to achieve long term sustainability. If Pepsi fails to achievesustainable growth rate then it will lose its market share to its competitors and ultimately canbe kicked out of the market. Marketing Consultancy 6SITUATION ANALYSIS OF THE MARKETMacro Environment AnalysisPESTLE Analysis Civilian organizations are pressurizing different governments to:Political ? People are demanding from government to ban or decrease theexistence of media and producers in schools. ? Government of different countries may impose restrictions onamount of advertisements (Baska et al. 2015)? Fluctuation in rates of USD and other UE currencies Economic ? Fluctuation in prices of raw material ? Increased VAT in countries of European Union (Baska et al.2015)Opportunities for Pepsi are increasing as: Social ? People are becoming more health conscious so Pepsi need tooffer health products more. ? Now more and more people use and offer snacks with drinkswhich are great opportunity for snacks of Pepsi. (Baska et al.2015)? India is a big market for Pepsi, due to technology; Pepsi canTechnological utilize manufacturing facility with the help of Wind-Power. ? Due to technology, Pepsi can customize its products accordingto the tastes of local people. (Baska et al. 2015)? The products which are not according to recommendations ofLegal Marketing Consultancy 7European Union are now ban in different countries. ? Environmental Tax has been impose in most of the countrieswhere Pepsi has major business operations like; USA. (Baska etal. 2015)? Wind Power and Solar Power can be utilized on larger scale.Environmental ? Now, Pepsi will have to do packing in bottles containing plastic20% less, and have to reduce other extra materials. (Baska et al.2015)Micro environment AnalysisPorters Five Forces Model Competitive Rivalry (Strong + Medium) Bargaining Power of Buyers (Strong)? There is strong force of ? Cost of switching is very low. aggressiveness from competitors.? Access to information is very easy for? There are relatively higher numbers buyers.(PanmoreInstitute 2015)of firms operating in the industry. (PanmoreInstitute 2015) Bargaining Power of Suppliers (Low) Threat of Substitutes (Strong)? Sources of supply are very large. ? Performance of substitute is very high? There is low threat of forward ? Low switching costs integration from suppliers.(PanmoreInstitute 2015)(PanmoreInstitute 2015)Threat of New Entrants (Moderate)Marketing Consultancy 8? Customers are relatively loyal with Pepsi. ? To develop a new brand, huge amount of resources record.(PanmoreInstitute 2015) Internal Environment AnalysisBCG Matrix AnalysisSource: (Ahirwar 2015)Marketing Consultancy 9Marketing Mix Analysis Product The products of the Pepsi can be categorized as; energy drinks, bottled water, snacks, cereal,sports nutrition, soft drinks, rice snacks, breakfast bars, side dishes… (PanmoreInstitute2015)Price The product line of Pepsi is very large. Pepsi uses different prices strategies for its products.Basically, Pepsi follows Market Oriented Pricing Strategy and Hybrid Everyday ValuePricing Strategy by keeping in view the pricing strategy of its competitors. (PanmoreInstitute2015) Promotion For promotion, Pepsi uses mix of different tools and techniques to promote its brands andproducts. Pepsi uses mix of mass advertisements (television, radio, print media, sponsoringan event…), sales promotion, public relations, and direct marketing. (PanmoreInstitute 2015) Place (Distribution) Pepsi uses different tools and techniques to increase its presence and increase the distributionof its products. Basically, Pepsi distributes its products through wholesalers and by selling tobulk purchasers. Pepsi also uses its sales forces to reach to the end consumers by providingits products to retailers. (PanmoreInstitute 2015)Marketing Consultancy 10SUMMARYSWOT Analysis Strengths Weaknesses? Pepsi holds a very strong brand image? Penetration of Pepsi outside Americais relatively weak. ? Product mix of Pepsi is very broad ? Business portfolio of Pepsi is? Pepsi globally holds an extensiverelatively limited network of production? Marketing coverage of Pepsi for? Pepsi globally holds an extensivehealth conscious customers isnetwork of distribution relatively weak.Opportunities Threats? Pepsi can resolve its issue of not ? Pepsi can face more furiousachieving sustainable growth by competition from its competitorslaunching new products and especially from Coca Cola. diversifying its business ? As described that Pepsi is not? Pepsi also can enter into developing focusing lot on development of healthcountries to increase its business and products, a serious change in healthachieve sustainable growth rate of consciousness trend will be a serious15%.threat for Pepsi. ? Pepsi also can do alliances withinternational operators Marketing Consultancy 11BIBLIOGRAPHYAhirwar, SK 2015, Comparative Analysis Coca Cola vs Pepsi, viewed 07 April 2016,<http://www.slideshare.net/sunilahirwar1143/coca-cola-vs-pepsi-53509962>.Baska, J, Csaba, G, Fellers, B, Ion, L & Orban, T 2015, PepsiCo A PESTLE Analysis , viewed 15 March2016,<https://00523369840175994935.googlegroups.com/attach/e5c7a87a27002004/pepsi.pdf?part=0.1 &vt=ANaJVrE6QHM7OmDgPU9CFC0lEqAk2fVJuXpeBxMTEsxVsT6aiGOJQbzs9na34jnM7BNpyqVrGcO uPK9OjDa2reR8s8VourvzGRMCUY9fRi88fams-2FF5Wk>.cocacolacapstone.wordpress.com 2013, Internal Analysis in Application, viewed 15 March 2016,<https://cocacolacapstone.wordpress.com/page/2/>.MorningStar 2016, PepsiCo Inc PEP, viewed 29 March 2015,<http://financials.morningstar.com/ratios/r.html?t=PEP&region=usa&culture=en-US>.PanmoreInstitute 2015, PepsiCo Five Forces Analysis (Porter’s Model), viewed 07 April 2016,<http://panmore.com/pepsico-five-forces-analysis-porters-model>.PanmoreInstitute 2015, PepsiCo’s Marketing Mix (4Ps) Analysis, viewed 07 April 2016,<http://panmore.com/pepsico-marketing-mix-4ps-analysis>.predicate.wordpress.com 2009, PepsiCo 2005 Case Analysis, viewed 15 March 2016,<https://predicate.wordpress.com/2009/06/17/pepsico-2005-case-analysis/>.Wikipedia 2015, PepsiCo, viewed 15 March 2016, <https://en.wikipedia.org/wiki/PepsiCo>. 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