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Analysis of PepsiCo's SWOT

One of the most well-known and popular FMCG brands in the world is Pepsi.

It is Coca-fiercest Cola's opponent.

Although it is based in New York, Pepsi has operations all over the world and is best known f

or its carbonated beverage, Pepsi.

However, Pepsi does have a sizable product line and primarily appeals to children.

The following table lists the internal and external variables influencing PepsiCo's market

opportunities. This SWOT analysis also highlights PepsiCo's internal advantages, including

its skilled management team, competitive product range, extensive worldwide marketing

network, and ongoing efforts by its research and development division to identify market

trends and be innovative in utilizing them.

The expanding markets for specialty ethnic foods and healthier food products are a few

potential prospects identified in the SWOT analysis. Another possibility is that consumers

have large incomes, which makes it possible for them to be less price sensitive. Additionally,

customer experience is becoming increasingly essential, not only to the United States but to

many other nations across the world.

The fact that PepsiCo is so big and could potentially lose focus or experience internal conflict

issues is one of the company's disadvantages, despite the fact that it has many strengths.Amo

ng the dangers PepsiCo must be mindful of are the ease of product line reliability, the almost
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complete price competition for its products, and the speed with which technical advancement

s render existing products obsolete.

Strengths in the SWOT Analysis of PepsiCo :

Brand equity: As in food and beverage industry, it has one of the most recognizable and wel

l-known brands in the world.It is sometimes referred to as the youth brand.

It enjoys a solid reputation and great brand recognition.

It is rated 29 on Forbes' list of the most valuable brands and has a brand value of $1

9.4 billion.

Product portfolio performance: In 2015, the sale of soft drinks declined.

The world is changing and moving toward a healthier lifestyle.

So, even if Pepsi is second to Coca cola in terms of distribution of its Cola, there are other

footprints which Pepsi has because of its product portfolio.

Strong Leadership: PepsiCo has been thriving under Indra Nooyi's direction. It has been able

to maintain its second-place ranking in the entire food and beverage industry, only behind

Nestle.

Customer Loyalty:

PepsiCo's clientele is incredibly devoted. All of its soft drinks in the beverage category have

a recognizable flavor, which keeps customers from switching brands.

When it comes to the category of juices and bottled water, they have developed into a very po

werful brand.With brands including Doritos, Lay's, Funyuns, Uncle Chips, Cheetos, Tostitos,

and Walkers under its umbrella, FritoLay has long been one of the world's best-

selling companies.

In addition to dominating the charts (all three spots), they had also managed to snag six spots

in the top 10 global snack brands.

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Strong distribution: Pepsi has a global presence in more than 200 countries providing them

with a very good distribution network.

Supply Chain: It has one of the best supply chain networks in the world, making the products

available throughout the world. Apart from this they also have a very efficient reverse

logistics associated with it.

Tie-Ups: They have tie-ups with sports events and music concerts which keeps them in the

lime light and thereby increasing the brand recall. They have sponsorships to major sports

teams thereby standing with what the brand is known for, youth and energy.

Clear target audience: Pepsi, unline Coca Cola has always had a clear target audience – the

young crowd. It always targets youngsters through its ads and generally the youngsters are

shown to be smarter then the old ones. The message is clear – Pepsi is the in thing

Weaknesses in the SWOT analysis of Pepsi

Competition: In the soft drink market, Coca-Cola is a fierce competitor.

They are always competing against one another.

As a result of the rivalry, less devoted customers have more opportunity to switch brands fast.

Products perceived as unhealthy: Most of the soft drinks of the PepsiCo is perceived as

unhealthy.

Product Dependence: Only the food and beverage business has them, which might be

detrimental in the long term. To establish themselves as a worldwide leader, they must

expand their firm into other product categories.

Failed Products: Many failed products such as ‘Crystal Pepsi’ which hurts the brand

image of the PepsiCo and thereby giving room to the competitors to grow.
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Brand Ambassadors: As the public face of the company, celebrities and renowned people

may harm the brand image of PepsiCo with inappropriate comments or poor performances.

There is a great risk in relying too much on celebrities for endorsements.

Value addition: It is well known that Pepsi runs commercials geared toward children. But it

is not known to have Value advertising, which is a Coca-Cola trademark. Coca-Cola has

always emphasized the good things in life, and Pepsi may take a cue from them.

Opportunities in the SWOT analysis of Pepsi :

Healthy Options: It should put more effort into enhancing the potential health effects of its

products and informing consumers of these effects. Diet Pepsi is a step in the right way in

that regard.

Diversification: A tremendous possibility exists for business diversification into several

market categories. They have the skills, materials, and funding necessary to carry out the

same actions. Acquisitions are another way to do this.

CSR: They can engage in additional CSR efforts to combat the disparaging statements that

harm the organization's reputation and assist the community.

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R&D: PepsiCo just released a soft drink with healthier choices. employing Stevia, a sugar

replacement, to create 7Up. This may completely alter the situation. More of this kind of

study is required. Concentrate more on the segment of diet drinks. Pepsi Next is a modern

variation of their cola that uses sugar and Stevia as sweeteners.

Flavors: Paperboat is a company that has experienced significant growth in recent years.

Watermelon, fresh mango, and other tastes are among those for which Paperboat is renowned.

Even adding these tastes to carbonated Pepsi can help the company reach a wider clientele.

Threats in the SWOT analysis of PepsiCo :

Competitors: Coca-Cola, Pran, Nestle, Fresh Drink, and Mondelez are the primary rivals of

PepsiCo.

Health Factor: Customers that are health concerned may stop buying the company's

products as a result of the harmful element linked with them. The decline in sales of soft

drinks is a glaring indication of this.

Economic Slowdown: Due to a cash shortage in the economy brought on by the nation's

recent changes, PepsiCo might experience a decline in sales. The company's revenues may

also be impacted by additional variables like the recession and inflation.

Government Norms: Different norms of different countries might prove difficult to handle

and compliance with it as well.