Beruflich Dokumente
Kultur Dokumente
Situation Audit
50
40
Coffee
Beer
Gallons/capita
30
CSD
Milk
20
Bottled Water
10
0
1970
1975
1981
1985
1990
1995
2000
2005
2007
2008
2009
1886-John S.
Pemberton
develops original
recipe
18861899
1898-Caleb
Brodham creates
Pepsi
Big name
endorsements
Iconic contour
bottle
Bottling plants in
Europe and the
Philippines
Robert Woodruff
named CEO
19001929
Franchises in 24
states
Files for
bankruptcy
Diversifies offerings
(Sprite, Tab)
Remains #1 in national
cola sales
19601973
Diversifies offerings
(Mountain Dew)
Merges with Frito-Lay
(PepsiCo) & expands
into the snack food
business
4Ps Analysis
PRODUCT
PRICE
Carbonated
soft drinks
Noncarbonated
soft drinks
Pepsi value
proposition
Coke the
premium brand
PLACE
PROMOTION
Retail channels
Fountain
Outlets
Vending
Machines
Mass
merchandise
Investment in
Trademarks
Retail Shelf Space
Ad Campaigns
Problem Statement
Changes in U.S. consumer preferences lead to a decline in CSD
sales and the emergence of non-CSDs.
1. How should Coke and Pepsi respond to these changes in
consumer preferences?
2. In what ways can Coke and Pepsi boost CSD sales while
competing in the growing non-CSD category, thereby ensuring
sustainable growth and profitability?
Critical Issues
60
40
20
0
2000
2009
strength
s
opportunities
10
weakness
threats
S.W.O.T - Strengths
Leader in non-CSD
Forward integration: 80 %
S.W.O.T - Weaknesses
Negative publicity
Negative publicity
12
S.W.O.T - Opportunities
S.W.O.T - Threats
14
Identification of Alternatives
Investment Strategy
Action
1. Status Quo
2. Market Development
Focus abroad
Bottler control/ownership
Streamline
Milk CSD
3. Product Development
Diversify lines
Modify CSD, re-position
Develop complements
Milk CSD and discontinue dogs
15
Analysis of Alternatives
(2)
Weight
(1)
Status Quo
Market
Development
(3)
Product
Development
(4)
Market
Penetration
+2+3
Profitability
0.15
0.25
Customer needs
0.25
Brand Image/
Corporate Image
0.20
0.15
2.4
3.5
4.1
4.85
Criteria
Total:
16
17
18
Implementation
CSD
Market
NonCSD
Market
19
Budget
Total Sales
Net profit/sales
25
20
Pepsi
Coca-Cola
Coca-Cola
Pepsi
15
10
5
0
2000
$30mm
2005
2007
2008
$43mm
2009
%
20
4
3
2
1
0
Non CSD
shares
22
23
Pepsi Co
Overview
It is a diversified company: beverages, snacks and breakfast
#43 in Fortune 500
52% of their net revenue comes from food
US is still responsible for 51% net revenue
38% more revenue than Coca in 2011, but only 12bi came from Soda
24
Pepsi Co
Portfolio
Product mix: 63% food 37% beverage
22 brands that generates 1bi in retail sales each
25
1.6
billion
case
927
million
892
million
26
Can
friends?
27
and
ever be
28
Thank you
Q&A
29
Media Credits
30