Primary Question for PepsiCo. Can PepsiCo continue their strong performance in the North America market, and also strengthen their presence in developing markets, while at the same time responding to changes in consumersâ€™ preferences?. Secondary Questions.
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Can PepsiCo continue their strong performance in the North America market, and also strengthen their presence in developing markets, while at the same time responding to changes in consumers’ preferences?
Pepsi trailing Coke in large but negative growth carbonated soft drinks. Also little presence in high growth energy drinks. Possibly look to acquire Red Bull.
Pepsi dominating in the rapidly growing non-carbonated beverage categories which position it well in North American market as consumers look for healthier drink options.
There is significant growth opportunity in international markets. PepsiCo will need focus on gaining more market share in the top 3 markets in 2010. They will also benefit from an increase in servings per month in both developed and developing international countries.
Cereals hold third largest market share in N.A. (14%) with projected growth
Strong international sales results in both product lines
58% market share in N.A.
Organic options and healthy alternative for breakfast – aligned with consumer preferences
Sales are declining
Business are not aligned with core business strategy
Products are not aligned with healthy social trends
Conclusion – Sell Aunt Jemima and PastaRoni/Rice-A-Roni product lines. Continue to customize Cereals, Oatmeal and Quaker Oats products to meet consumer preferences in each market.
Fruit Juices Bottled Water
SoBe Energy Drinks – hold negligible market share
Opp to acquire Red Bull
Isotonic Sports Drinks
Analysis: Red Bull holds 40% market share for energy drinks. PepsiCo lacks a real player in this growing market. – Acquisition target
Great opportunity for growth in both developed and developing international markets, especially Brazil and China. Strong market share in many today, with exception of China
2. Pepsi should be focused on growing market share in China Salty Snacks, predicted to be largest market by 2010.
3. Power of One strategy could play well in international markets.
With exception of Gatorade, Quaker brands have limited success internationally.
Opportunity for growth in US and developed countries as consumers shift to eating healthier.
Many Quaker Foods brands have strong market share, but not in the salty food or beverage markets. Majority of brands compete in Ready to Eat Cereal space, against well-established competitors Kellogg’s and General Mills.
Appears goal of realignment of divisions was to put more focus on growth outside North America.
Question we have is did PepsiCo go far enough? Does not appear to be much of a change.