QSPM FOR PEPSI

STRATEGIC
ALTERNATIVE
S
TARGET A WIDER INVEST IN
AUDIENCE R&D
KEY FACTORS W AS TAS AS TAS
STRENGTHS
1. BRAND RECOGNITION 0.09 4 0.36 3 0.27
2. STRONG BRAND PORTFOLIO 0.05 4 0.20 3 0.15
3. BRAND ENDORSEMENT AND SPONSORSHIP 0.09 - - - -
4. APPROPRIATE CAPITAL AVAILABILITY 0.04 - - - -
5. MORE MARKET SHARE 0.08 4 0.32 3 0.24
6. THE STRONGEST AND VAST DISTRIBUTION 0.09 2 0.18 3 0.27
CHANNEL
7. AGGRESSIVENESS IN THE MARKET 0.07 4 0.28 3 0.21
WEAKNESSES
1. THE HEALTH CROWD 0.08 3 0.24 2 0.16
2. COCA COLA RIVALRY 0.08 4 0.24 2 0.16
3. NOT ALL PRODUCTS BEAR THE COMPANY’S 0.04 2 0.08 1 0.04
NAME
4. DECLINE IN TASTE 0.06 4 0.24 1 0.06
5. TARGETING ONLY YOUNG CUSTOMERS 0.07 1 0.07 4 0.28
6. CENTRALIZED DECISION MAKING PROCESS 0.05 - - - -
7. POLITICAL FRANCHISES 0.06 - - - -
8. MOTIVATIONAL FACTOR 0.05 - - - -
1 2.21 1.84
OPPORTUNITIES
1. HEALTH PRODUCT DIVERSITY 0.11 4 0.44 1 0.11
2. ASIA HAS A HIGH GROWTH IN THE 0.08 2 0.16 3 0.24
CARBONATED DRINK MARKET
3. FOOD TRENDS ARE SHIFTING TOWARDS 0.11 4 0.44 2 0.22
FAST FOOD
4. INCREASE IN URBANIZATION 0.07 - -
5. FAMILY TRENDS INCLUDE CARBONATED 0.07 3 0.21 4 0.28
DRINK IN EVERY GATHERING
6. NATIONAL SPORTS AND MUSICAL EVENTS 0.10 3 0.30 1 0.10
ARE A GREAT PLATFORM FOR INCREASING
SALES
7. CHANGE IN CLIMATE 0.04 - - - -
8. REDUCTION TACTICS 0.03 - - - -
THREATS
1. NOT ENOUGH HEALTH ALTERNATIVE 0.10 3 0.30 2 0.20
2. A BAD ECONOMY 0.09 - - - -
3. LOCAL BEVERAGE COMPANIES SUCH AS 0.06 4 0.24 1 0.06
MEEZAN, GOURMET
4. NON CARBONATED BEVERAGES BY NESTLE 0.07 4 0.28 1 0.07
5. AWARENESS AMONG CONSUMERS 0.07 4 0.28 1 0.07
REGARDING COCA-COLA DRINKS
1 2.65 1.35
TOTAL 2.00 4.86 3.19

Hence, the best decision for Pepsi as per the QSPM matrix is to adopt strategy 1,
i.e., to target a wider audience, because it’s QSPM score is 4.86>3.19 for strategy
2, i.e., to invest in R&D.