PepsiCO market strategy

PepsiCo’s products are recognized and are most respected all around the globe. Currently, PepsiCo has division which operates in three major US and International business: Beverages, Snakes, Food and restaurants. But in Nepal the leading position is only on soft drink bottling. The cooperation’s increasing success has been on high standards of performance, Marketing strategy, Competitiveness, commitment and the personal and professional integrity of their people, products and business practices.
The overall mission of this company is to increase the value of their shareholders’ investments through sales growth, investment and financial activities. PepsiCo believes their success depends upon the quality and the value of their products by providing safe, whole some, economically efficient and a healthy environment for their costumers.
Market segmentation:-
As we know that PepsiCo provides verities of soft drinks .These products are marketed under brand as Pepsi, Mountain Dew, and Lipton and so on. With these products PepsiCo aims to attract different groups of Costumers.
There are two levels in which Pepsi segments its market
• Demographic
• Niche Marketing

Demographic:-
In focusing on the Pepsi-Cola beverage product, PepsiCo has retained a long history of concentration on youth as its main target market-“Generation Next!” which is youth marketing. The reason behind fiercely targeted this market is because it is the largest amongst its users in Nepal. Market segment profiles shows that the majority of carbonated beverage drinks are youth and middle age people. Pepsi continually targets the college market in which they spend lots amounts of money to compete with the Coca Cola. Pepsi’s use this behaviorist segmentation has been a key to the company’s success.
Niche Marketing:-
Pepsi focuses on varietal differentiation sine 1990 by introducing a string of niche products. To increase volume in order to counter flat Coca Cola sales. Pepsi introduced different products like 7-up, Sprite etc. Pepsi has also tried to boost volume by introducing products that appeal to specific target markets that is currently is not reaching. The success of Pepsi’s Mountain Dew Code Red launched in 2001 was the most successful soft drink in 20 years and has spurred even nicer product introductions for PepsiCo as well as other competitors.
Market Targeting:-
Pepsi customers are mostly Teenagers and Yong Adults between the ages of 14 to 30. It also targets at School, College, Universities, Home, Restaurants, Hotels and stores.

Marketing Positioning:-
PespiCo plans to future create positions that will give the greatest advantage in their target markets. Pepsi has been positioned based on the process of positioning by direct comparison and have positioned their products to benefit their target market.
4-P’s with PepsiCo:-
Products: - They introduce many products with their won ideal function and lunched as Product Mix.

Pepsi: - This is a cola for the Drink.
AMP energy: - More Power to You.
Gatorade: - Is it in you?
Mountain Dew: - Do the Dew
Diet Mountain Dew: - How Dew Dees diet.


Promotion:-PepsiCo has advertised its products through many different ways and media. They advertise their products by targeting those favorable TV shows like TV sports, Series etc. Through the social programs like sprit band competition with the collaboration with Kantipur TV and Pepsi GO with UNDP food program for the karnali Zoon etc.
Place:-Decision with respect to distribution channel focuses on market the product available in adequate quantities at place where customers are normally expected to shop for them to satisfy their need. Pepsi is sold off-site consumption include grocery and convenience stores in Nepal. However effective one is grocery stores.
Price:-Pepsi being a company that emphasized on product quality tends to sell its products with price range from moderately to high price depending upon the target customers. Like:-

Regular Pepsi (250 ml):- NRs 20
Fuche (200 ml):- NRs 13
Load Your Pocket (100ml):-NRs 9
Disposable Pepsi (500 ml):- NRs 35
Pepsi (1lit):- NRs 65
Pepsi (2 lit):- NRs 105

Pepsi decides its price on the basic of competition. Fortunately, Pepsi is very flexible and is able to reduce its price very quickly.
Customer Cost:-
Despite the fact the PepsiCo frequently lower its price and eventually raises its price again, buyers have not been affected by the pricing strategy. On top of that, Pepsi has always been very flexible and reasonable with its pricing strategy. Depending on the product, prices are ranged for low to high.
Conclusion:-
Pepsi has been successful in generating profits in this extremely rivalrous industry. What is the company should do now is employ a strategy in this winter and then that one only addresses its own deficiencies in an effort to grow market share, but one that will increase the overall size of the pie .This strategy ,in the end , will allow Pepsi to grow and sustain above average return.

Managerial Ecomomics

Managerial economics (sometimes referred to as business economics), is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units. As such, it bridges economic theory and economics in practice. It draws heavily from quantitative techniques such as regression analysis and correlation, Lagrangian calculus (linear). If there is a unifying theme that runs through most of managerial economics it is the attempt to optimize business decisions given the firm's objectives and given constraints imposed by scarcity, for example through the use of operations research and programming.

Almost any business decision can be analyzed with managerial economics techniques, but it is most commonly applied to:

Risk analysis - various models are used to quantify risk and asymmetric information and to employ them in decision rules to manage risk.
Production analysis - microeconomic techniques are used to analyze production efficiency, optimum factor allocation, costs, economies of scale and to estimate the firm's cost function.
Pricing analysis - microeconomic techniques are used to analyze various pricing decisions including transfer pricing, joint product pricing, price discrimination, price elasticity estimations, and choosing the optimum pricing method.
Capital budgeting - Investment theory is used to examine a firm's capital purchasing decisions.
At universities, the subject is taught primarily to advanced undergraduates and graduate business schools. It is approached as an integration subject. That is, it integrates many concepts from a wide variety of prerequisite courses. In many countries it is possible to read for a degree in Business Economics which often covers managerial economics, financial economics, game theory, business forecasting and industrial economics.

Maghe Sankranti observed

Devotees across the country observed Maghe Sankranti, one of the most popular Nepali festivals, by thronging to various Hindu temples and taking holy dip into rivers and ponds on Friday.


People buying special sweets at Ason chowk for Maghe Sangranti festival.
Hindus worship Lord Shiva on the day and celebrate the festival by offering delicacies such as sweet potato, sesame seed candy, Chaku, yam and ghee. It is believed that one becomes healthier by consuming such items on this day after taking a holy bath in the river.

Also, the largely Hindu Newar, Tharu and Magar ethnic communities celebrated Maghe Sankranti, also called Makar Sankranti, with great enthusiasm by organizing various programmes across the country, as the festival bears a great significance to them.

The government had declared public holiday on Maghe Sankranti last year by recognizing it as a national festival of the Magar community.

Meanwhile, President Dr Ram Baran Yadav visited the Panauti Mela, which occurs once every 12 years on the occasion of Maghe Sankranti, today morning.

Reports said the President took a holy bath in Panauti River on the occasion.

He is scheduled to return to Kathmandu later today

5 Ways Facebook Can Build Your Local Business

Facebook is a social networking platform that is more than the latest fad. It is boosting marketing and sales for local businesses. Here are the five main ways that Facebook can help your local business:

1. Build Awareness
Facebook offers very affordable, targeted cost-per-click advertising options that can be laser-targeted to the city you do business in. You only pay per click, so costs are minimal. Also, a Facebook page or group can be created to help get the word out about your organization.

2. Distribute Information
Local businesses need to affordably communicate events, news, products and services. Facebook allows you to leverage your personal and professional contacts to share information -- for free.

One of my favorite restaurants in Santa Barbara closed last year. I learned that it re-opened because one of my Facebook friends messaged all his personal contacts to share the news that he took over as the General Manager. He earned lots of business and boosted awareness by one easy (and free) message.

3. Create Community
Social networking serves to bring people together. Your local business can brand, build, and boost business by creating a Facebook page or group so your local contacts can converse with each other. Let your community become your best sales people and free focus group. Listen to the conversations and allow raving fans to share and get in on the conversation.

4. Offer Additional Customer Service
Through Facebook, you can answer questions, receive free feedback, promote events, and provide news to be of additional service to your locally-based audience. Facebook gives your prospective and current customers an additional web option to find and connect with you.

5. Boost Sales
Local businesses have to fight harder than ever to survive in this tough economy, but your business can have a competitive edge with Facebook. Tapping free social networking tools like Facebook to build awareness, share information, educate, build community, increase connection, and enhance customer service will all work in unison to make sales.

When used with the right intention and managed regularly, Facebook can be a no-cost marketing tool to help your local businesses gain a competitive edge. Converse directly with locals, create a community of conversation -- learn, share, and connect -- all in a fun way.

Facebook has over 350 million users; I am willing to bet that your local audience is waiting.



Lorrie Thomas, MA is a The Marketing TherapistTM. She helps small businesses get BIG with web marketing. Her team of "wild web women" at Web Marketing Therapy support clients as a web marketing agency and web marketing training company. Lorrie speaks nationally and teaches Web Marketing, Social Media Marketing and Search Engine Marketing courses at UCSB and Berkeley Extension.
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