You are on page 1of 2

Opportunities analysis of PEPSI

1. Growing beverages and snacks consumption in emerging

markets. PepsiCo has made large investments in BRIC countries to expand


its market share as these countries represent the fastest growing food and beverages markets in the world. If PepsiCo is successful it will increase its revenues and global market share significantly. In addition, it will be able to rely less on US market.

2. Increasing demand for healthy food and beverages. Due to many programs to fight obesity, demand for healthy food and beverages has increased drastically. PepsiCo has an opportunity to further expand its product range with beverages and snacks that have low amount of sugar and calories.

3. Further expansion through acquisitions. So far, PepsiCo has been successful in acquiring other companies and adding new growing brands to its portfolio.

4. Bottled water consumption growth. Consumption of bottled water is expected to grow both in US (PepsiCos largest bottled water market) and the rest of the world.

5.

Savory snacks consumption growth. The same opportunity PepsiCo


has in growing its revenue selling snacks as this market is also expected to grow.

6. International Expansion. PepsiCo is in the midst of making a $1, 000 million investment in China, and a $500 million investment in India. Both initiatives are part of its expansion into international markets and a lessening of its dependence on US sales. In addition the company plans on major capital initiatives in Brazil and Mexico. 7. Growing Savory Snack and Bottled market in US. PepsiCo is positioned well to capitalize on the growing bottle water market which is projected to be worth over $24 million. Products such as Aquafina and Propel are well established products and in a position to ride the upward crest. PepsiCo products such as, Doritos tortilla chips, Cheetos cheese, Tostitos tortilla chips, Fritos corn chips, Ruffles potato chips, Sun Chips multigrain snacks, Role Gold pretzels, Santitas are also benefiting from a growing savory snack market which is grown as much as 27% by 2013, representing an increase of $28 million.

You might also like