Pepsico homegrown brand for every household. It is a world-renowned beverage company the headquarters in Harisson New York. The company has a total strength of 267,000 employees and follows the mission to reach out to every part of the world and every stratum of society. The company is listed on New York Stock Exchange. Pepsico has a brand value in 200 countries. Pepsico has now launched a new program known as PEP+ which stands for PEPSICO POSITIVE PLANET + PEOPLE. It is a program that initiates sustainability in the environment. Let us know about the ‘Pepsico Swot Analysis’.
Swot analysis is an important factor in every organization. pepsico Swot Analysis enables the organization to determine its Strengths, weakness, opportunities, and threats. Strengths and weaknesses symbolize internal factors and opportunities and threats can be termed external factors. These factors play a key role in organizational growth. The organization should do swot analysis on regular intervals so that they should know what factors are contributing to the growth and what is affecting the growth.
Strengths of Pepsi Co
- Pepsi is a world-recognized brand. Its strength is its brand recognition and is most popular among the younger generation. The brand has a market value of 19.4 million Dollars.
- Pepsi has the vision to diversify its products so that every age group can enjoy the drink. For eg., In 2005 Pepsi launched its coffee variation in India for all coffee lovers.
- By diversifying its product line Pepsi has made its place in the market. And in different segments of society.
- Pepsico has a very vast supply chain that helps in worldwide supply which gives the brand leverage over other beverages.
- Hiring a celebrity to be the face of the brand, makes it more popular among the younger generation.
- For the betterment of society, Pepsico has launched programs under PepsiCo Foundation, to contribute to education and environmental activities.
- Pepsi has undying customer loyalty. Pepsi Co ensures that it is every product has a certain unique taste which binds the customer to it. Till now Pepsi Co has made its customer base quite strong.
Weakness of Pepsi Co
- According to the food testing corporations, the main weakness of Pepsi is it is too much sugary. Which if consumed regularly can trigger diabetes in the customers.
- Recently the brand came under scrutiny when it aired an advertisement starring Kendall Jenner. The advertisement is said that promote racism and hurt the sentiments of black people. Due to this controversy, the sale of Pepsi quite declined.
- Pepsi follows the safe strategy which sometimes can have an adverse effect on the product sale. It has a dominant market position in the food industry but does not have any firm footing in any other sector, compared to other brands.
- Like every other successful beverage, Pepsi has its fair share of failed beverages, which has made the company face a large number of losses. This proves that the customer is selectable regarding Pepsi.
- Being the most lovable brand among the younger generation it is expected that advertisements should be presenting a valuable message, but Pepsi failed to do so.
- Brand faces strong competition with Coca-Cola. Both companies have equal footing in the beverage industry, making it easier for shoppers to switch brands.
- The brand does not take customer feedback, which is a major weakness for the marketing strategy of the brand.
- Increasing technology such as Artificial Intelligence has weakened the dealer network of many brands.
Opportunities For Pepsi co
- Since Pepsi has the largest quantity of sugar, the company should replace it with any other sugar substitute. Many recognized brands have altered their sugar content by substituting sugar.
- The brand has only one market, which makes them less stable, to enhance its stability it should diversify into other product lines.
- The company should take valuable feedback from the customers so that they get genuine feedback for the new inventions.
- The brand should partner with other brands so that their product can be sold at their stores.
- With changing trends, customers are willing to try new things whether it’s a drink or any food product, Pepsi Co should focus on trying out new inventions.
- The brand should partner with local brands so that their product could reach to every market.
- With the increasing Industrial efficiency, Pepsi Co also has the vast opportunity to produce large quantities of products and can reach to the maximum number of people.
- Pepsi Co Should try to penetrate the markets where the economy is growing very fast. to get the maximum outreach.
- With changing laws in the food industry small brands are facing difficulty to penetrate into the market, here Bigger brands such as Pepsi Co can penetrate very easily.
Threats For Pepsi co
- With growing technical knowledge, local brands are fast emerging in the market posing to the bigger brands such as Pepsi Co and Coca-cola.
- Change in political reforms causes the economy of the particular market to fluctuate, which highly affects the brands.
- The brand should follow all trade regulations to evade any possible problems regarding export and import.
Elaborate on PepsiCo Swot Analysis product portfolio
The brand covers a vast variety of drinks and food items. Which five brands have a revenue of more than 1 billion dollars.
Swot analysis enables the organization to change weakness into strengths and threats into opportunities.
It will help the organization to check the feasibility of the new project. Checking the possibility of the new projects and marketing strategies.
Through the analysis, an organization can set its aims for a better future, and this analysis can be done from time to time to know the micro and macro factors.
Frequently Asked Questions
1. What is the USP of the brand?
Pepsi Co has a unique taste in the drinks which binds the customer to it. Hence like this, customer loyalty is achieved.
2. List of brands that are under Pepsi Co?
Pepsi co-brand has a wide array of products such as:-
- Frito lay
- Tropicana Juices
- Walker Crisps
- Quaker foods