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Redhawks Consulting

Redhawks Consulting. Pepsi’s Vietnam Challenge. “It’s important to remember that results count. If you can’t get the results over the goal line, are you really a leader?” -Steven Reinemund, Chairman & CEO of Pe psi. Overview. Key Concern SWOT Analysis Identification of Alternatives

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Redhawks Consulting

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  1. Redhawks Consulting Pepsi’s Vietnam Challenge “It’s important to remember that results count. If you can’t get the results over the goal line, are you really a leader?” -Steven Reinemund, Chairman & CEO of Pepsi

  2. Overview • Key Concern • SWOT Analysis • Identification of Alternatives • Key Success Factors • Recommendation • Phases of Implementation • Timeline • Summary

  3. Key Concern • To advise the executives of Pepsi in Vietnam on the future strategic direction of the company.

  4. SWOT Analysis

  5. Identification of Alternatives • Refrigeration System and Sanitation • Snack Food Industry • Youth Market Segmentation • Exportation to Cambodia • Maintain Current Position

  6. Alternative 1:Refrigeration System and Sanitation • Advantages • Health and well-being of consumer • Provide additional service • Easier to serve items • Disadvantages • Installation costs • Maintenance costs

  7. Alternative 2:Snack Food Industry • Advantages • Early in product life cycle • Build upon Pepsi Brand • Disadvantages • Research cost • Higher than average risk of failure

  8. Alternative 3:Youth Market Segmentation • Advantages • Half of population under age of 25 • Technological advancements increase • Nostalgia and brand recognition • Disadvantages • Vast market: 46 million people • Diversity • Rural regions

  9. Alternative 4:Exportation to Cambodia • Advantages • 14 million people (Median age of 22) • Annual Growth: 6.4% • Build upon current distribution channel • Disadvantages • Very costly • Promotional • Infrastructure • Language Barrier

  10. Alternative 5:Maintain Current Position • Advantages • Low cost • Customer loyalty • Maintain short-term market share • Disadvantages • No expected growth • May lead to relative depletion of long-term market share

  11. Key Success Factors

  12. Recommendation • Alternative 2:Snack Food Industry

  13. Phases of Implementation • Establish Implementation Team • Market Research • Product Development • Infrastructure and Organizational Development • Integrated Marketing and Communications • Milestone Review • Expansion • Long-term Planning

  14. Phase I:Establish Implementation Team • Time frame: Immediately upon approval • Parties involved: • Vietnam Pepsi • Soft drinks • Snack food • Cultural specialist (anthropologist) • Pepsi Co. of North America • Research professionals

  15. Phase II:Market Research • Time Frame: 0-3 Months • Analyze the following: • Market • Distribution Networks • Trends • Demographics • Psychographics • Utilize focus groups

  16. Phase III:Product Development • Time Frame: 3-9 months • Select which products to introduce • Product differentiation • Ex: Aloe Vera specialty drinks in Asia

  17. Phase IV:Infrastructure & Organizational Development • Time Frame: 3-9 months • Distribution networks • Export and Import processes • Hire executives and management • North, Central, and Southern regions

  18. Phase V:Integrated Marketing & Communications • Time frame: 9 months – Ongoing • Utilize current Pepsi marketing avenues: • Television advertising • Point of sale displays • Promotional campaigns • Market as “fast, on-the-go food” • School incentive program

  19. Phase VI:Milestone Review • Time frame: 12 months • Establish review criteria • Market share • Sales (net profit) • Re-evaluate every 3-6 months

  20. Phase VII:Expansion • Time Frame: Upon 1st successful review • Offer other products • As directed by research

  21. Phase VIII:Long-Term Planning • Time Frame: 10 years + • Cambodia • Horizontal integration • Sector and distribution network

  22. Timeline Months + 0 3 6 9 12 15

  23. Redhawks Consulting Pepsi’s Vietnam Challenge “It’s important to remember that results count. If you can’t get the results over the goal line, are you really a leader?” -Steven Reinemund, Chairman & CEO of Pepsi

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