PEPSI'S ENTRY IN UK

PEPSI'S Entry in UK

Abstract

The beverage industry in UK has long been epitome for other industries across world because of its sheer size as well as its competitive nature. PepsiCo has always followed Coca-Cola for decades despite its cola production heritage and aggressive marketing strategies. In fact research reveals that PepsiCo has more diversity in its products and brands than Coke, and engage in more creative approach to marketing strategies yet it remains second to cola giant. The implication is that there is the differential point where both companies have managed to retain its individual position. But that is secondary to importance of aspects of PepsiCo's marketing strategies which makes is second in position, and what could be done to rectify this position. Although researcher do not claim to have solution to problem therein and guarantee successes in marketing strategies, but following research aims to enumerate on some of perspectives which may have influenced PepsiCo market entry and future marketing strategies in UK.

Table OF Content

TABLE OF CONTENT3

CHAPTER 1: INTRODUCTION4

Overview4

Aims and objectives5

CHAPTER 2: LITERATURE REVIEW7

Marketing Entry strategy in UK7

Consumer Value9

Consumer Value And Risks12

Conceptual framework14

CHAPTER 3: METHODOLOGY18

Research Methodology18

Questionnaire19

CHAPTER 4: RESULTS21

Results21

Analysis of findings22

CHAPTER 5: DISCUSSION OF FINDINGS AND EVALUATION23

CHAPTER 6: CONCLUSION AND RECOMMENDATIONS25

REFERENCES26

CHAPTER 1: INTRODUCTION

Overview

The UK beverage industry is one of largest and most competitive around world. Manufacturers are competing against each other based on various types of beverages ranging from coffee, milk, alcoholic drinks, and sports drinks to bottled water and vegetable juices apart from carbonated soft drinks. Together they all produce 10.2 billion cases and make up $65.9 billion beverage industry according to statistics for 2004 (Sicher 2005). Of this PepsiCo holds second position, second only to Coca-Cola, and the market share of 31.7%.

With the fairly stable consumption level industry expects increasing spending level in years to come and its consequent increasing revenue, and more opportunities for companies to grow. While carbonated soft drinks (CSD) have been dominant core products but in last two years consumers have changed direction to more health drinks and replaces CSD with bottled water, fruit juices, low calorie and diet drinks. Consequently, manufacturers are forced to adopt brand extensions and introduce new brands and products to withstand their positions within industry. PepsiCo is no different from others with the bevy of new product lines like Tropicana, Slice, Gatorade, Aquifina and SoBe etc. to cater to changing consumer trends (Wolburg 2003) while company is struggling to sustain its position in market.

Unlike other beverage manufacturers, PepsiCo has realized early on not to invest all its eggs in one basket. CSD remain one of its core products nevertheless over decades PepsiCo has managed to diversify in product lines such as snacks, fast food chains, breakfast and health drinks through the series of mergers and acquisitions of Frito-Lay, Tropicana, The Quaker Oats Company and Gatorade (Corporate overview 2005). With diversified company background along with company's strategy of Sustainable Advantage, PepsiCo has been able to create the competitive edge over its counterparts in global market ...