Understanding Business: Pepsico - Essay Example

PepsoCo is a mega brand with global leadership in the snack and beverage segment. It mainly creates value through satisfaction and therefore relies on target marketing with a focus on children and young adults within the age group 10-35 years. With recent acquisitions such as Tropicana and sports drink, Gatorade, it has diversified its market to include adults and a population that is focused on healthy eating. It has the largest market segment in noncarbonated drinks. The major snacks portfolio includes Lays, Doritos, Cheetos, etc.

while Pepsi, Mountain Dew, Sierra Mist, and Mirinda are carbonated drinks and noncarbonated beverages and nutrient brands including Tropicana fruit juices, Quaker Oats, Aquafina fresh water, and Gatorade are highly popular. It uses competitive pricing and offers snacks and beverages in various formats and sizes to meet the needs and affordability of its segmented market. It exploits market opportunities through innovative market strategies and distribution channels (Nickles, McHugh & McHugh, 2010).

It supplies low-calorie beverages and fruit juices to schools and has a huge network of distributors to sell its various products. The major supermarket chain, hotels and retailers, etc. are important distributors who are provided financial incentives based on volume sales or product placement fees (pepsicoAR, 2010).