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PepsiCo has not only done well with entering the food market, but it reaches a
wide range of customers in this market through the wide array of products it offers. As
consumers have recently shifted to focus on healthier eating, PepsiCo has responded
by expanding two categories of its products, which are Good for You and Better for
You (Explore PepsiCo Brands, n.d.). Good for You brands, including Tropicana
Farm Stand and Trop50, Aquafina, Naked, Sabra, Quaker and Gatorade, are PepsiCos
line of nutritious products that have healthier ingredients and limited sodium, sugar, and
saturated fat. Better for You brands include SoBe Life Water, Stacys, Baked!Lays,
PepsiNext and Propel and typically have snacks with lower fat content and more whole
grains, and beverages with zero calories or less added sugar.
In addition to expanding its product lines, a recent focus of PepsiCo has been
penetrating new markets. In 2008, PepsiCo announced plans to invest $1B into China
as part of its strategy to expand its presence in emerging markets as well as broaden its
portfolio of locally relevant products (Our History, n.d.). In 2011 PepsiCo and Tingyi
Holding, which is one of the major food and beverage companies in China, announced
an agreement to form a strategic alliance in China (Our History, n.d.). Also in 2011,
PepsiCo acquired Mabel, a leading snack producer in Brazil (Our History, n.d.).
Moves like these have helped the company substantially build and maintain its global
presence.
In 2012, PepsiCo created a design function to deliver new, uplifting, dynamic,
and emotional experiences for consumers that would elevate PepsiCo both inside and
outside the company (Our Mission, n.d.). Products of the design function include the
Pepsi Spire Family, which is a customizable soda-dispensing machine, which allows up
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lowering sugar contents and printing dietary information on the sides of their products
(Sierra Services, Inc., 2012).
Apart from SSB taxes, there is no more regulation faced by soft drink
manufacturers than any other food and beverage company. PepsiCo and its
competitors must follow bottling and packaging guidelines to prevent contamination or
spread of food-borne illnesses. Because PepsiCo and Coca-Cola have been in the
industry for such a long time, they have continued to remain dominant while adapting to
new regulations. This dominance protects them from new entrants to the market, who
cannot compete with Pepsi or Cokes level of recognition or distribution chain.
References
Bailey, S. (2014, December 12). Must-know: An investors guide to PepsiCo. Retrieved
from http://marketrealist.com/2014/12/pepsico-company-overview/
Deichert, M., Ellenbecker, M., Klehr, E., Pesarchick, L., & Ziegler, K. (2006, February
22). Industry Analysis: Soft Drinks. Retrieved from
https://www.csbsju.edu/Documents/libraries/zeigler_paper.pdf
Dominguez, R. (2015, March 26). Pepsi overtakes Diet Coke as second-most popular
soda. Retrieved from http://www.nydailynews.com/news/national/pepsi-overtakesdiet-coke-second-most-popular-soda-article-1.2163963
Explore PepsiCo Brands. (n.d.). Retrieved from
http://www.pepsico.com/Brands/BrandExplorer#top-global-brands
Hartlaub, P. (2011, March 25). Sweet! America's top 10 brands of soda. Retrieved from
http://www.nbcnews.com/id/42255151/ns/business-us_business/t/sweet-americastop-brands-soda/#.VyTNqvkrLIU
Our History PepsiCo. (n.d.). Retrieved from http://www.pepsico.com/Company/OurHistory
Our Mission. (n.d.). Retrieved from http://design.pepsico.com/our-mission.php?
v=20#section5
Sierra Services, Inc. (2012). Breaking Down the Chain: A Guide to the soft drink
Industry. Retrieved from http://www.changelabsolutions.org/sites/default/files/
ChangeLab-Beverage_Industry_Report-FINAL_(CLS-20120530)_201109.pdf
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