1- PepsiCo International can’t use the same strategy to market its products in other

countries because each country has a different culture. Middle Eastern countries,
including countries in high context cultures, the context in which a conversation
occurs is just important as the words that are actually spoken, and cultural clues are
important in understanding what is being communicated. In high context, additional
information are required to understand the meaning of the content or message
communication. In high context nature sometimes not to the point or implied.
Characteristics of high context are:
- The message conveyed implicitly or implied, indirectly. The message hidden in
nonverbal behavior: tone of voice, gestures, body language, expressions, eye contact
or even physical contact.
- Strong boundaries insider, high context communication may be understood if it is
used within its own group (insider), not to outside groups.
- Long-tern Relationship
- Face-to-Face relationship is the basis of decision making.
2- It is important for PepsiCo to adapt to the prevailing culture in the Middle East.
Each region has a growing culture different from other regions. PepsiCo in the vision
and mission would like to establish a relationship with the Middle-Eastern cultures
throughout the big campaign of “Bahr Al Nujoom” which is directed to all groups of
consumers.
PepsiCo should be Middle-Eastern more than American, because PepsiCo has a more
preferable flavor than coke in the Middle East while other competitors like Coke are
more associated with America.
3- The purpose of promotion of Pepsi Max in May 2008 was to guide the Middle
Eastern consumers into buying this new product. Basically, the purpose of promoting
is so that customers around the world are aware that there is a product being sold.
The idea of PepsiCo was to sell the most they can to generate a vast amount of
profit. So to do so, promoting their new product (Pepsi Max) is a perfect way to start.
It is also a key in which they utilize to increase their reputation and expand the name
of their brand.
4- Gatorade might be directly associated with professional athletes because of its
electrolyte content, helps to restore the lost electrolytes and keeps a person
hydrated, during intense activity. Gatorade was designed to help serious athletes
perform better on the field.
With so many competitors in the market nowadays, Gatorade has the competitive
advantage of being one of its kind in the industry, which is the reason why it got so
much attention when it was first introduced. Many competitors then followed the
same formula to enter the market and compete with Gatorade. Their competitive
advantage is their brand name which they have developed over the years by
expanding into so many markets and gaining their fair share of profits. They hold
most of the market shares of the sports drinks industry in all the countries.