Marketing Plan of PepsiCo - Essay Example

Marketing Plan Introduction PepsiCo is a global leading snacks marketer, and it is focusing on increasing market share inthe market via careful targeting and creative marketing. The company sales arise from the North and South America, where it has customarily been a strong competitor in the market. The company trades a large range of brand including Pepsi cola, diet Pepsi, Doritos and Lipton teas among others. However, the company faces a stiff completion from the Coca-Cola and draft foods both of which are making marketing path in America, Europe and Asia. According to William and Robert (2011, P. 89), the company must deal with a number of local brands and guarantee the loyalty of customer’s demands. Thus, PepsiCo’s marketer must persistently research on customer’s preferences and study the impact of environmental forces to develop the precise marketing mix for the right market. The new product in the market The company has released that most of the populace suffer from health predicaments; thus, it has developed a new product that will meet the healthier eating habit of customers. The walkers’ snacks are the new product in the market, characterized by their low sodium content. The product was discovered to meet the United Kingdom’s campaign to warn customers on the risks involved in the intake of high contents of salt. The company took the incentive of introducing this product that would capture the rising demand of customers to change their diets to something healthier in the market. The marketing strategies In order to market the walker’s snacks in the market, PepsiCo Company has commenced reducing the level of salt in several other snacks worldwide. By so doing, the customers will opt for the company’s product, and consequently they purchase the new product among others. Meanwhile, it is discoursing usage of fats and sugar by making labeling more prominent so that customers can make educated choices. According to Justin and Longenecker (2011, 69), this strategy is extremely advantageous to the company in marketing the new product because it captures the customer’s confidence of the products offered in the market. When customers are convinced of the quality of the other products of PepsiCo, it will be easy for them to appreciate and accept the new product easily. Cheverton (2005, P. 57) indicate that the company via intensive research noticed that there was a higher use of digital media among young adults and youth that would be a large and productive target market for the new product. Thus, the company will use the internet, Facebook, twitter to communicate with customers and influence these customers on the significant of the product. It will allow customers to vote online for the new product will promote the product among the marketing mix in the market. The company will run contents asking customers to form and submit homemade television commercials for the new product in the market. The company has combined the digital marketing with social responsibility in that it will invite the customers to apply online for grants that would change their society. Roberts (2011, P.57) indicate that the strategy will make the customers notice and respond to its social responsibility and promote the buying decision of the new product in the market due to the earned positive image of the company. The marketing research done on the customer’s preference and demands in various countries will maintain a steady stream of new product introduced in the market. Financial management The impressive marketing strategies of the PepsiCo Company would make the introduction of the walkers snack in the market success. The company aimed to realize revenue of one million just 25 days after the product is introduced in the market. However, the new product is rarely an immediate success due to the challenges encountered during marketing. Thus, the Pepco marketers would be extremely keen in the purchasing pattern of the customers. The company should constantly modify product prices. In order to, attract the teenagers those form vital market Segment because they portray greatest desire and ability to purchase the product. According to Charles and Joseph (2008, P. 209), the initial price of the product should be adjusted and strategies for distribution promotion changed gradually in order to keep sales growth during the inception stage of the product. As the product becomes known in the market, the company should lower the unit cost so that it can handle the competition in the market that will result in lower price of the product. Pricing strategy and marketing mix The lowering of the product price would affect the profit per unit. However, the company will be able to offer a modified version of the product and expands distribution in order to maximize the profit. According to Chan and Renee (2005, P. 215), the management goal of the PepsiCo Company is to stabilize and strengthen the product’s position by encouraging brand royalty. To encounter the competition, the company should introduce wise entry strategies that would discourage the competitors and allow the product to penetrate into the market. Thus, the company would expand the product line to appeal extra market segment. The price of the walker’s snacks is flexible depending on the circumstance in the market. This will enable customers to purchase the product according to their budget. For instance, the company will opt to introduce various variations of its walkers snack in a range of favors in order to make the entry easier. Management of the company will compete by lowering prices if there will be raise of production efficiency that would save the company situation (Jason, 2009, p.67). As the product becomes more appreciable, it is vital the PepsiCo marketers to expand the network of distributors in order to maximize profits. After the product is accepted in the market, the pricing strategies of the product will be flexible. Stone (2001, P. 157) indicates that the marketers will offer incentives to customers in order to encourage customers to support the product, especially to face the competition. New promotional efforts and aggressive personal selling will be used by the PepsiCo Company to promote the sales. Ansoff Matrix This is the method that will assist the PepsiCo Company to decide on the walker’s snacks and market strategy. The company should simply the product line and segment the market more carefully in order to increase price competition (Kristina, 2009, P. 2). The company should use the redesigned packing adjustment in order to strengthen the market share in the market. The markers will opt to avoid the incentive and assistance of various forms to dealers to encourage encouraging the growth of the product. Continuous product innovation and product expansion have assisted to expand the walker’s snacks of PepsiCo Company in the market development in the competitive snacks market. In order to promote market penetration, the company will introduce loyalty schemes that will provide reliable information on competitors and customers preferences (Kristina, 2009, P. 2). The company will be required to invest wisely in the market development strategy in order to secure dominance of growth markets. The pricing strategy of have flexible prices for the new product and the aggressive promotional campaign will make unattractive for new entrants. Meanwhile, the market development strategy will enable the company to open new market in Asia and Europe like the competitor Coca-Cola. Dyson (2000) indicate that the diversification strategy will enable the company to establish in the new market of introducing healthier product. The strategy will be risky due to the higher cost involved to prevent new entrant in the market because every company wants to capture the opportunity. SWOT Analysis A SWOT analysis is an instrument that helps in evaluation of the Strengths, Weaknesses, Opportunities, and Threats that occur in any company enterprise. (De Wit and Meyer 2003).Therefore, we will analyze the SWOT involved in the introduction of the new product in the market by summarizing its opportunities, threats, strengths, and weaknesses. The PepsiCo significant strengths include the company will provide high quality, necessary services to the community. Workers are committed, and services and programs offered are qualified, and when the company face economic changes it will handle due to the marketing strategies used. The weakness that the company will face in introducing the new product into the market is the diversification risk involved in the development of the product. According to Dyson and Brien (2004, P. 252), the diversity of the pricing policies to attract different customers in order to form new market segment will be extremely costly. Meanwhile, the company will face severe threat from potential entrants in the market because every come will strive to capture the growing demand of the customers. The United Kingdom campaign to warn customers of the risks involved in intake of high contents of salt is an opportunity that has introduced itself in the market. As a result, the PepsiCo Company will benefit from the opportunity because it will capitalize in developing the new product to meet the opportunity in the market. PEST Analysis PEST analysis is an extremely significant that PepsiCo company should consider its environment before it commences marketing of the new product process. It is a useful tool that can scan the conditions in the market because it comprises economic, political, social and technological factors. According to Henry (2008, P.52), the environmental situations affect the entire strategic management process and PepsiCo should make decisions that will enable actions of marketing the walkers snack to correspond positively with the surrounding environmental conditions. Babette and Fleisher (2008, P 143) indicate that the company is a worldwide operator, so it should manage the political influences wisely to prevent their impact on the introduction of the product. The use of the digital media will help the company to notice trends in the outside environment that will enable them have an entry advantage in the market. A social trend of healthier eating and customer increasing need to change their diet has helped the PepsiCo Company to introduce a new product due to the change of consumer behavior and spending patterns. Oswald (2011, P. 45) indicate that the company’s taxation policy and government stability are controlled well that will allow the new product to withstand the pressures of the competitive market. Conclusion To offer quality and useful product, it is essential to look across the organization, and analyze the resources required to meet these choices and the procedure of marketing. I recommend the company to adhere to its objectives strategies that will include considering the areas of the product development. The PepsiCo Company needs to access the demand for its product and improves marketing mix choices. It should be prepared to search for other opportunities in generating revenue for the growth of the company. Bibliography Babette, E and Fleisher, S.2008, Analysis without Paralysis: 10 Tools to Make Better Strategic Decisions, FT Press, United Kingdom. Chan, K and Renee, M. 2005, Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition irrelevant, Harvard Business Press, United Kingdom. Charles W and Joseph, F. 2008, Marketing, CengageBrain Inc, New York. Cheverton, P.2005, Key Marketing Skills: Strategies, Tools, and Techniques For Marketing Success, Kogan Page Press, United Kingdom. De Wit, B and Meyer, R. 2003, Strategy: Process, Content, Context, Thomson Business Press, London. Dyson, RG.2000, Strategy: Performance and Operational Research. Journal of the Operational Research Society 51, 5–11. Dyson, G and Brien, F. 2004, Strategic Development: Methods and Models, John Wiley and Sons, New York. Henry, A. 2008, Understanding Strategic Management, Oxford University Press, New York. 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