PepsiCo should pursue four key adjacency moves to grow its business:
1) Introduce healthy variety snack packs combining its brands to meet growing consumer demand.
2) Form a joint venture with Chinese vending machine company Ubox to expand into China.
3) Divest its underperforming soda brand Sierra Mist to focus on stronger brands like 7UP.
4) License its snack brands to foodservice businesses like Buffalo Wild Wings to increase share of wallet.
A complete presentation on the company Pepsi and analysis of it from marketing point of view including a brief about the company's history and its competitors, SWOT Analysis, Segmentation, Targeting and Positioning and 4P's followed by recommendations at the end.
Create an develop advertising plan for successful restaurant as part of team to include situational analysis, objectives, strengths & weaknesses, budgeting, strategy, execution, and evaluation. Direct responsibility for media plan covering strategy, media assessment, targeted execution, and budget allocation for best engagement with sought after market. (2006)
Integrated marketing commuinication plan an IMC plan Ahmed Hazzaa
An IMC plan presentation for an Egyptian company called Kaha faced a development crisis during the 90's in this presentation providing a new design for the packaging and new target segment among the youth in the Egyptian society and new form of distribution
Get our ideal Brand Plan template in a downloadable PowerPoint file.
Link: https://beloved-brands.com/product/brand-plan-template/
Includes ideal slides for vision, purpose, analysis, key issues, strategies, brand positioning statement, and execution plans.
Our brand plan template provides formatted blank slides with key marketing definitions where you can insert your own brand plan.
Gain access to our one-page brand plan and our one-page Brand Strategy Roadmap.
For more on Beloved Brands, here are a few of our most popular articles
1. Beloved Brands Marketing Training programs.
https://beloved-brands.com/brand-management-training/
2. Our Beloved Brands Mini MBA is an online marketing course to help your marketing career.
https://beloved-brands.com/mini-mba/ for online marketing course
3. Simple process to build your Brand Positioning Statement
https://beloved-brands.com/brand-positioning/ for brand positioning
4. How to write a Marketing Plan
https://beloved-brands.com/marketing-plans/
5. Our one-page strategic plan
https://beloved-brands.com/brand-strategy-roadmap/
6. The best and worst of a Creative Brief
https://beloved-brands.com/creative-brief-line-by-line/
7. Marketing Plan Template
https://beloved-brands.com/product/marketing-plan-template/
8. Our one-page Brand Plan
https://beloved-brands.com/brand-plans
9. How to understand Brand Architecture
https://beloved-brands.com/brand-architecture
10. How to use Marketing Funnels to analyze your brand
https://beloved-brands.com/marketing-funnels/
case study on coca-cola. introduction, segmentation targeting and positioning . selling strategy, marketing planing, objective, swot analysis of the company.
This will provide you with an ideal format for how to lay out a Long Range Strategic Plan with the vision, purpose, values, big idea, strategies, and tactics.
Prepared by:
Abdul Hadi Anwar Siddiqui
I am luck that I share this Presentation with you because this is My best Presentation I prepared till now,
thanks........
For more information please follow me at,
Gmail: abdulhadianwar9998@gmail.com
facebook: https://www.facebook.com/innocent.hadi.733
A new product development for the brand Pepsico is created in order to create a product which is more healthier than the current product range of snacks & other eateries of Pepsico.
A complete presentation on the company Pepsi and analysis of it from marketing point of view including a brief about the company's history and its competitors, SWOT Analysis, Segmentation, Targeting and Positioning and 4P's followed by recommendations at the end.
Create an develop advertising plan for successful restaurant as part of team to include situational analysis, objectives, strengths & weaknesses, budgeting, strategy, execution, and evaluation. Direct responsibility for media plan covering strategy, media assessment, targeted execution, and budget allocation for best engagement with sought after market. (2006)
Integrated marketing commuinication plan an IMC plan Ahmed Hazzaa
An IMC plan presentation for an Egyptian company called Kaha faced a development crisis during the 90's in this presentation providing a new design for the packaging and new target segment among the youth in the Egyptian society and new form of distribution
Get our ideal Brand Plan template in a downloadable PowerPoint file.
Link: https://beloved-brands.com/product/brand-plan-template/
Includes ideal slides for vision, purpose, analysis, key issues, strategies, brand positioning statement, and execution plans.
Our brand plan template provides formatted blank slides with key marketing definitions where you can insert your own brand plan.
Gain access to our one-page brand plan and our one-page Brand Strategy Roadmap.
For more on Beloved Brands, here are a few of our most popular articles
1. Beloved Brands Marketing Training programs.
https://beloved-brands.com/brand-management-training/
2. Our Beloved Brands Mini MBA is an online marketing course to help your marketing career.
https://beloved-brands.com/mini-mba/ for online marketing course
3. Simple process to build your Brand Positioning Statement
https://beloved-brands.com/brand-positioning/ for brand positioning
4. How to write a Marketing Plan
https://beloved-brands.com/marketing-plans/
5. Our one-page strategic plan
https://beloved-brands.com/brand-strategy-roadmap/
6. The best and worst of a Creative Brief
https://beloved-brands.com/creative-brief-line-by-line/
7. Marketing Plan Template
https://beloved-brands.com/product/marketing-plan-template/
8. Our one-page Brand Plan
https://beloved-brands.com/brand-plans
9. How to understand Brand Architecture
https://beloved-brands.com/brand-architecture
10. How to use Marketing Funnels to analyze your brand
https://beloved-brands.com/marketing-funnels/
case study on coca-cola. introduction, segmentation targeting and positioning . selling strategy, marketing planing, objective, swot analysis of the company.
This will provide you with an ideal format for how to lay out a Long Range Strategic Plan with the vision, purpose, values, big idea, strategies, and tactics.
Prepared by:
Abdul Hadi Anwar Siddiqui
I am luck that I share this Presentation with you because this is My best Presentation I prepared till now,
thanks........
For more information please follow me at,
Gmail: abdulhadianwar9998@gmail.com
facebook: https://www.facebook.com/innocent.hadi.733
A new product development for the brand Pepsico is created in order to create a product which is more healthier than the current product range of snacks & other eateries of Pepsico.
Strategy Proposal: 365 by Whole Foods MarketSabina Leybold
This project consisted of creating a marketing campaign proposal to help 365 by Whole Foods Market to launch effectively. I contributed to this strategy by establishing target audience, brand persona, overall campaign strategy, and timeline.
Mid-Term Exam Marketing 435535Summer Term 2017 Exam Instructi.docxARIV4
Mid-Term Exam Marketing 435/535
Summer Term 2017
Exam Instructions: This exam is designed to measure your understanding of concepts that were discussed in class lecture, course readings, and using Wikipedia and the embedded web links. You are free to consult these materials and your colleagues when preparing your answers to questions below, but please the words you choose for your answers should be your own. Each question is equally weighted and I expect about 1/2 to a page in length, per answer (average 2/3 page), for a total of about 5-6 pages in length. Answer any 5 questions. Please put your name on exam and file name. Exam is due on D2L.
Answer any 5 of the 6 following questions:
1. If you had unilateral power, what is the one food-related regulation that you would impose - or abolish? Why would you take this action? What would be the impact on both consumers and business? And…if you happen to be a citizen/resident of a country other than the US, please feel free to put your answer in the context of that nation’s regulatory framework.
2. Do you think that the US government should allow the Amazon acquisition of Whole Foods to go through? Why or why not? And please explain what you think the impact of this deal, assuming it is completed, will be on both consumers and business.
3. Tell us three things that you did not know about retail and CPG marketing that you did not know before you took this class, but have learned from our assortment of guest speakers.
4. What has changed about the consumer’s decision journey as described in the readings from the way consumers used to shop and what are some marketing implications for reimagining the American supermarket for the future? (Refer to the readings/speakers in your answers)
5. In the class lecture it was stated that market penetration is a key to success for CPG products.
What are the two requirements described in the lecture to achieve high market penetration rates and how is the “Law of double jeopardy” related? (Use your notes and if you want Wikipedia).
6. What are the top business career opportunities according to US News and World Report for 2015 in Marketing? Of the skills reported as most important for interviewers for marketing hires which are your top 3 strengths? Which are the 3 you need to work on the most? Why is it important to develop a marketing plan for yourself for life after school?
• Guest Speaker Jason Strobbe- Going to Market in Wine
What “was” in the News 2016 this week
Mintel’s top 12 key trends for 2016
* Alternatives Everywhere: Novel protein sources and potential replacements means that what was formerly ‘alternative’ could take over the mainstream.
* Artificial: Public Enemy No. 1: Companies are removing artificial ingredients to meet consumer demand for natural food .
* Eco is the New Reality: Sustainability continues to evolve and has become a necessary part of new product development.
* From the Inside-Out: A market has been cr ...
Soupman, Inc.
Business Plan
Marketing Plan
Team 2: Brandi Seich, Mark Seich, Jonathan Downes, Jessica Gonzalez, Yiren Jiang, Jiachen Li
2-27-2017
Market Analysis Summary
Soupman, Inc. focuses on reaching three primary segments under the name “Original Soupman”:
1.1. The Convenience, Quality Shopper. Someone interested in purchasing a consistently tasteful quality, fresh product for themselves and/or their family, which can be prepared with ease and convenience.
1.2. The Business Folk. Local business workers within the tri-state area of NY, NJ and CT in search of a local dining experience for lunch or a quick dinner.
1.3. The Educational Consumer. Buyers within the educational market of high schools and colleges looking to provide vegetarian, quality products to students and faculty.
Market Segmentation
Soupman, Inc. under the name Original Soupman will continue to focus on three key market segments: convenience, quality shoppers; business folk; and educational consumers. There are multiple delivery systems to service these three markets including: grocery locations, food services – brick-and-mortar and mobile; and educational.
The convenience, quality shopper would be those individuals shopping at a grocery or soon to come convenience store location looking for a quality, convenient product they feel confident in for their own consumption or their families. Their needs are met through the Original Soupman soups which are available in 17 ounce Tetra Pak cartons delivered through the grocery segment in 6,500 grocery stores. The soups have prime positioning beside market leaders such as Campbell’s and Progresso. Some of the prestigious retailers within the grocery segment include Kroger, Costco, Safeway, Albertson’s, Publix, Wegman’s, HEB, Shoprite, Acme, Shaw’s and Winn Dixie among other regional chains as well.
The business folk are those within the NY, NJ, and CT area who are looking for a quick, convenient, but consistently tasteful dining experience for lunch, dinner or anything in between. In addition to soups, sandwiches and salads are also available. These consumers are served in one of our eight franchised and licensed brick-and-mortar locations. They can also be served by our mobile location, which provides a daily calendar for consumer convenience. This mobile market is served through using heat ‘n service pouches to ensure consistent flavoring no matter the location of choice.
The educational consumer is served in a number of schools and colleges in the NY area. This segment is serviced through the use of bulk flash-frozen soups and other products (e.g., Mexicali Beans, Stewed Pinto Beans and Curried Chick Peas with Tomatillos).
Soupman has identified substantial distribution opportunities in national restaurant chains, college campuses, stadiums as well as other food service venues. Early testing has begun within a national restaurant chain and has been quite successful.
Significant opportunities reside within the grocery se.
Material in slides 2-14 of this overview adapted from PrinAbramMartino96
Material in slides 2-14 of this overview adapted from Principles
of Marketing. (2015). University of Minnesota Libraries Press.
https://open.lib.umn.edu/principlesmarketing/
Using Marketing Channels & Price to Create
Value for Customers
Where the offering is and how it is priced communicates value to the
customer
6.1 Marketing channels and channel partners
6.2 Typical marketing channels
6.3 Functions performed by channel partners
6.4 Marketing channel strategies
6.5 Channel dynamics
6.6 Demand planning and inventory control
6.7 Warehousing and transportation
6.8 The pricing framework and a firm’s pricing objectives
6.9 Factors that affect pricing decisions
Marketing channels and channel partners
Goal = get a product to the customer when, where and
how the customer wants it.
Requires cooperating channel partners (or intermediaries)
that actively promote and sell the product as it travels
through the channels to the end customer.
Typical marketing channels
• Two major types of channel systems
• Direct channel— from producer
to consumer with no
intermediaries (farmer’s market,
internet if direct from the
manufacturer)
• Indirect channel — Any number
of intermediaries between
producer and consumer
• Many products have multiple
channels
Question: Wouldn’t fewer intermediaries be more
efficient and effective to get products to consumer when,
where and how they want them?
Answer: Some large retailers have been able to own more
of the channels themselves (disintermediation).
But, the channel member functions have to be performed
by some firm, but one firm can perform more than one
channel functions.
Only include channel members that add value for the
customer.
Functions performed by channel partners
• Disseminating marketing communications and promote brands
• Push versus pull strategy
• Sorting and regrouping products
• Storing and managing inventory
• Distributing products
• Assume ownership risk and extend credit
• Share marketing and other information
Marketing channel strategies
Factors affecting the marketing channel strategy
decisions
• Type of customer
• Type of product
• Channel partner capabilities
• Business environment and technology
Channel integration
• Vertical marketing system — formal agreements to cooperate
• Conventional marketing system — no formal relationships, all
independent operators
• Horizontal marketing system — Two companies at same channel level
agree to cooperate (usually for compatible but non competing products)
Channels versus supply chains — supply chains are channels that includes
the firms involved in distributing the raw materials for manufacturing.
Value chain — another term for supply chain BUT acknowledges the value
adding role of the intermediary.
Factors that affect a product’s intensity of distribution
• intensive distribution = want to sell product in as
many outlets as possible
• selective distribution = s ...
Material in slides 2-14 of this overview adapted from PrinAbramMartino96
Material in slides 2-14 of this overview adapted from Principles
of Marketing. (2015). University of Minnesota Libraries Press.
https://open.lib.umn.edu/principlesmarketing/
Using Marketing Channels & Price to Create
Value for Customers
Where the offering is and how it is priced communicates value to the
customer
6.1 Marketing channels and channel partners
6.2 Typical marketing channels
6.3 Functions performed by channel partners
6.4 Marketing channel strategies
6.5 Channel dynamics
6.6 Demand planning and inventory control
6.7 Warehousing and transportation
6.8 The pricing framework and a firm’s pricing objectives
6.9 Factors that affect pricing decisions
Marketing channels and channel partners
Goal = get a product to the customer when, where and
how the customer wants it.
Requires cooperating channel partners (or intermediaries)
that actively promote and sell the product as it travels
through the channels to the end customer.
Typical marketing channels
• Two major types of channel systems
• Direct channel— from producer
to consumer with no
intermediaries (farmer’s market,
internet if direct from the
manufacturer)
• Indirect channel — Any number
of intermediaries between
producer and consumer
• Many products have multiple
channels
Question: Wouldn’t fewer intermediaries be more
efficient and effective to get products to consumer when,
where and how they want them?
Answer: Some large retailers have been able to own more
of the channels themselves (disintermediation).
But, the channel member functions have to be performed
by some firm, but one firm can perform more than one
channel functions.
Only include channel members that add value for the
customer.
Functions performed by channel partners
• Disseminating marketing communications and promote brands
• Push versus pull strategy
• Sorting and regrouping products
• Storing and managing inventory
• Distributing products
• Assume ownership risk and extend credit
• Share marketing and other information
Marketing channel strategies
Factors affecting the marketing channel strategy
decisions
• Type of customer
• Type of product
• Channel partner capabilities
• Business environment and technology
Channel integration
• Vertical marketing system — formal agreements to cooperate
• Conventional marketing system — no formal relationships, all
independent operators
• Horizontal marketing system — Two companies at same channel level
agree to cooperate (usually for compatible but non competing products)
Channels versus supply chains — supply chains are channels that includes
the firms involved in distributing the raw materials for manufacturing.
Value chain — another term for supply chain BUT acknowledges the value
adding role of the intermediary.
Factors that affect a product’s intensity of distribution
• intensive distribution = want to sell product in as
many outlets as possible
• selective distribution = s ...
Marketing PlanVita-Go, Inc., a division of PepsiCo1. Com.docxinfantsuk
Marketing Plan
Vita-Go, Inc., a division of PepsiCo
1. Company Description
Vita-Go, Inc. is a division of PepsiCo which was formed by Jennifer Stieffenhofer, Christine Stear, Sally Swartz, Ryan Tate, Jonathan Vick, Jaclyn Wisecarver, and Teel Witt to develop, market, and promote a product that is inexpensive and convenient for the consumer to utilize on a daily basis in order to promote wellness. Initially, the line was introduced in the Lynchburg, Virginia market, spread to Maryland within the next 2 years, and to North and South Carolina within the next few years.
To the best of Vita-Go’s knowledge, Vita-Go is the only product/beverage on the market today that, with just one simple twist of a cap and a shake of a bottle, releases a daily dose of vitamins and nutrients equal to a person’s recommended daily intake of vitamins. What also sets the bar high on this product in relation to others is the availability of the product. While most manufacturers feel that their product can only be available in health stores, Vita-Go is not only available in health stores, but also grocery, convenience, and superstores.
2. Strategic Focus and Plan
“This section covers three aspects of corporate strategy that influence the marketing plan: (1) the mission, (2) goals, and (3) core competency/sustainability competitive advantage” (Kerin, Hartley & Rudelius, p.47) of PepsiCo.
Mission
Vita-Go’s mission is in line with PepsiCo’s mission which is "to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity" (PepsiCo, 2015).
Vision
"Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company” (PepsiCo, 2015).
Performance with Purpose
Just like PepsiCo, “we're committed to achieving business and financial success while leaving a positive imprint on society - delivering what we call Performance with Purpose. Our approach to superior financial performance is straightforward - drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability" (PepsiCo, 2015).
Goals
For the next five years, Vita-Go seeks to accomplish the following goals:
· Nonfinancial goals - “As a leading food and beverage company, we believe we can play an important role in helping people lead healthier lives”, (PepsiCo). Vita-Go’s bottle will be manufactured by PepsiCo. PepsiCo, as well as Vita-Go, seeks to achieve a healthier lifestyle by presenting vitamins on the market that allow customers to enjoy their vitamin in-take.
1. To provide a heal ...
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
2. Unit Volumes
Prod . Geog .Cust .
Identify
Customer
Adjacency
Better
Penetrate
Target
Market
Grow Share
of Wallet
New Step
in Value
Chain
(“Vertical
Scope”)
New
Product in
Existing
Industry
New
Country
New
Region
New
Product
Category
Our recommendations for PepsiCo will
be focused on four key adjacency moves
21
3
4
Divestiture
4
3. Due to strong performance in variety packs and health related snacks, there
is an opportunity for PepsiCo to offer healthy variety packs
Type of Adjacency: New product in existing industry with same customer group, through bundled sale.
Current market: There is a rise in portable snacks and consumers want more alternative chips:
• Rise in portable snacks:
• According to NPD’s reports, many consumers are eating smaller main meals and more meals a day than the traditional three-
meal-a-day plan. This allowed for more planning of snacks into one’s daily nutrition requirements (NPD).
• The average American today has 4.1 food and beverage items at dinner compared to the 5.3 in 1985 (NPD)
• 11% of meal occasions and 20% of eating occasions in US are snacks (Neutraceutical World)
• 94% of Americans snack daily (Mintel)
• As a result, there is an increase in demand in portable foods market
• Rise in demand for Alternative Chips:
• 33% of US consumers say they are snacking on healthier foods this year compared to last (Mintel).
• However, many consumers still crave for the salty crunch, but they also don’t want to feel guilty consuming it (Cargill Salt)
• This is shown as 62% of them say that they still go for a snack to satisfy the craving even though they are eating
healthier(Mintel)
• 88% of consumers say they will pay more for healthier chips (Forbes)
• This is also backed by Utz Quality Foods, who also saw a double digit growth in better-for-you chips (Snack&Bakery)
Sources:
Pepsi 10k 2014, 2016
Nutraceuticalworld, healthy snack trends to chew on
Snack&Bakery, Chip market strong state of the industry 2015
Cargill salt, the rise of alternative chips
NPD, Press release PR 120815
Mintel, a snacking nation 94 of americans snack daily
Forbes, Consumers want healthy foods and will pay more for them
4. Frito-Lay has received strong performance in variety pack sales (Pepsi 10k):
● 2013: High single digit growth
● 2014: Double digit growth
● 2015: Mid single digit growth
● 2016: High single digit growth
Consumers love them too:
Sam’s Club Buyer Rating:
Amazon Buyer Rating:
Walmart Buyer Rating:
Financially, Pepsi has enjoyed success in its variety packs sales.
Sources:
Pepsi 10k 2014, 2016
Walmart, variety pack chips
Sam’s Club, Variety pack chips
Amazon, Frito-Lay variety pack chips
5. Pepsi should seize the opportunity in combining both trends of increasing
variety pack sales and increasing rise of demand in healthier snacks
Pepsi has a competitive advantage over its competitors in the sense that they already owns multiple “healthy”
snack brands (Pepsico):
● Pure Deliciousness Simply: 9 products, 4 of which are organic!
● Stacy’s: 16 products
● Smartfood: 7 products
● Sunchips: 7 products
Better Off Test:
• Willingness to pay boosting
• 88% of Consumers are willing to pay more for healthier foods (Forbes)!
• Variety pack includes different flavors so that consumers won’t get bored, especially those who includes snacks
into their daily diet, which is 94% of Americans (Mintel)
• Cross selling – it allows Pepsi to promote some of its lesser known brands in the variety pack
• Cost benefits
• Frito Lays already has the brands and products, they will not need to invest in R&D to create new products
• Same distribution network can be shared
• Volume discount, Pepsi will be producing the same products
Sources:
Pepsico, Brands
Mintel, a snacking nation 94 of americans snack daily
Forbes, Consumers want healthy foods and will pay more for them
Pepsi should make a push to introduce more combination offerings of healthy snack variety packs. They already own
multiple “healthy” snack brands and can fill a customer need in an existing industry
Recommendation #1
6. Recommendation: Form joint venture with Ubox to strategically fit
with their analytical capabilities and achieve economies of scope
As of 2015, Beijing Ubox Online Technology runs 60,000 units across the country in 58 cities. (Hiroyuki)
Ubox analytics system and advertisement platform align with PepsiCo's expertise at category
management in determining which products complement others
Information to be shown on the vending machines' display, such as price, can be controlled from the headquarters in
real time, allowing for swift promotional efforts like discounts. (Hiroyuki)
• Ubox system shows sales and inventories of every single vending machine on the network in real time. The system
analyzes data to determine the relationship between specific weather conditions, days of the week and each product's
sales. (Ibid)
• It then automatically decides what items each vending machine needs to be replenished with and how to deliver them.
• In 2016, ad revenue from these machines is expected to reach $36.2 million. (Ibid)
Confident of the company's high-tech vending machines, Wang, Ubox’s CEO said that he plans to increase the
number of units in operation to 500,000 by 2020. (Ibid)
Assuming 530 million RMB valuation from Carlyle Group in obtaining stake in Ubox. Payback period can be
estimated to be around 1.5 years!
Proposed solution:
• Share design of Hello Goodness vending machines to achieve economies of scope in R&D and manufacturing
• Integrate PepsiCo’s healthy product offerings in current Ubox vending machines
• Monitor performance of product offerings with Ubox’s vending machine analytics to maintain or change products
Yasukowa, Hiroyuki. "Vending machines spreading fast in China." Nikkei Asian Review. December 07, 2016.
7. Scott Meskin, President of Black Tie Services Inc. piloted the first four dozen
Hello Goodness machines in Baltimore in April 2016 by testing them in blue-
and white-collar job areas.
Black Tie also has seen a 2% to 4% lift in sales in its existing snack and
beverage machines in venues in which it added Hello Goodness machines
to the equipment bank.
Meskin attributes Hello Goodness's success to PepsiCo's expertise at
category management. "They are experts in determining which products
complement others, and why it all goes well together. We saw incredible
results when we replaced our machines with theirs," he remarked. "We
were selling Lay's baked chips and Naked drinks, but now they are doing
so much better in the Hello Goodness package. Hello Goodness is a
perfect combination of aesthetics and a diversity of nationally branded
products offered in every category."
Black Tie also noted that typically credit cards account for 20% to 30% of
machine sales, compared with the 50% to 60% of sales on Hello Goodness
machines. This suggests that consumers patronizing the Hello Goodness
vendors are willing to pay more for items like Naked Juice that costs $3.50
with the swipe or tap of a card, remarked Meskin.
PepsiCo’s Hello Goodness pilot run was successful in sales and
raising willingness-to-pay shows opportunity of expansion
Jed , Emily. Maryland's Black Tie Services Sees Strong Results In Hello Goodness Test Run. Vending Times Inc. September 9, 2016.
Product portfolio for Hello Goodness vending machines
Hello Goodness vending machines
8. PepsiCo should also expand its healthy vending machines to
China to exploit fast growing market of vending machines
■ In 2015, China had approximately 150,000 vending
machines, 15 times more than it had in 2011. (Xu)
■ In the United States, the ratio of vending machines
to convenience stores is on average 30 to 1. By the
end of 2020, it is predicted there will be 46,000
convenience stores in China. By applying the US
ratio, the number of vending machines in China
could reach 1.38 million by 2020 (Figure 1).
■ Vending machine sales tend to be higher in regions
with higher living standards. In regions with higher
living standards, the annual sales volume of one
vending machine will be around 6,000 yuan,
meaning the entire channel could generate 100
billion yuan in annual sales by 2020. (Xu)
Figure 1. Vending Machine Count in China, 2011-2020
Xu, Jane. "Kantar - China vending machine channel poised to take off." Kantar China Insights. August 17, 2016.
9. 82% of Chinese respondents said they were willing to pay more for foods without
undesirable ingredients, also much higher than the global average of 68% (Nielsen).
79% of Chinese respondents are paying closer attention to the ingredients in the food and
drinks they consume.
67% of consumers wish there were more natural product, 55% wish there were more organic
and 52% wish there were more genetically modified organisms free foods.
“A big driving force of this is the emerging middle class. These consumers are working
white collar jobs, putting in long hours for rising incomes, but they’re also hoping to
maintain a healthy and fit lifestyle. We expect that products appealing to these demands will
grow, as we can see in the 2016 forecasted data.” said Kiki Fan, managing director of Nielsen
China.
There is opportunity for PepsiCo’s Hello Goodness vending
machines to expand with China’s growing health trends
New Eating Trends in China: the Healthier the Better." Nielsen. September 22, 2016.
There is opportunity for PepsiCo to pursue a value chain adjacency in China by expanding its vending machines
business through a Joint Venture with Ubox.
Recommendation #2
10. Decline of Soda Market
● Overall sales of carbonated soft drinks dropped for the 11th year in a row in the US
● PepsiCo currently holds the international rights to the 7UP Brand while Dr. Pepper/ Snapple own the US and Canada rights
● PepsiCo Sparkling beverages had a 2% decline in volume growth in 2015
○ Sierra Mist volume fell 3.7% in 2014, following a 11.6% drop in 2013
● Sierra Mist ranks 13th among all soda brands, falling from 12th in 2013
○ Sprite grew volume by 1% last year and ranks #6 among sodas
Sierra Mist is a Weak Follower
● MANTIS Simulation (of 1000 simulations) showed only 7% of companies doubled share over 5 years time and 72% lost ground
● Brands that are weak followers (with low overall market share and no significant segments of strength) have difficulty making
substantial market-share gains
○ 7UP holds a 2% market share and Sprite holds 8%
○ Sierra Mist has dropped off all of the Top 10 Soda Brand Lists
● Declining Volume sales growth of soft drink brands of PepsiCo in the United States from 2012 to 2013
○ Sierra Mist down 11.6%
● The number of consumers of Sierra Mist (within the last seven days) in the US fell from 16.71% in Spring of 2008 to 7.5% in Spring
of 2016
Source: Schultz., E.J. "Sierra Mist Is Changing Its Name and Look -- Again." Ad Age. N.p., 18 Dec. 2015. Web. 19 Apr. 2017.
"U.S. Volume Sales Growth of PepsiCo's Brands 2013 | Statistic." Statista. N.p., n.d. Web. 19 Apr. 2017.
Kell, John. "Soda Consumption Falls to 30-Year Low In The U.S." Fortune.com. N.p., 29 Mar. 2016. Web. 19 Apr. 2017.
Zook, Chris. “Beyond the Core”. 2004. Print.
Evidence suggests PepsiCo should divest its weak follower in the
carbonated soft drink market: Sierra Mist
PepsiCo should shed its weak follower and non-core item, Sierra Mist, in order to focus on better
performing 7UP, Pepsi brands, and Mountain Dew
Recommendation #3
11. Customer data suggests Sierra Mist is underperforming in the top
three most important purchase decision attributes
Qualtrics Survey
N=25
● Sierra Mist is
underperforming in the
top three most important
purchase decision
attributes.
○ Taste
○ Accessibility
○ Price
● 7 Up is outperforming
Sierra Mist in top three
attributes.
● Key Implications: Due to
Sierra Mist’s poor
performance, there is an
opportunity for PepsiCo to
shrink to its core soft
drink items and divest
Sierra Mist.
12. ■ Type of adjacency: Share of wallet- finer customer segmentation
• According to Zook, share of wallet adjacencies are the most successful- tap into a market that already loves the branded product
• Finer customer segmentation
NFL and MLB fans- PepsiCo has a partnership with the NFL
Mountain Dew, Tropicana juices and Lipton teas are especially popular with Buffalo Wild Wings customers
(Rudarakanchana)
“Buffalo Wild Wings' typical customer is a young male sports fan who tends to drink Mountain Dew, so it makes sense that
the beer-and-wings chain would partner with PepsiCo -- maker of Mountain Dew and a major NFL sponsor” (Cooper).
■ Snacking trend in the foodservice industry
• Trend towards blending fast food with well-known snack brands
Increased WTP→ 52% of consumers agree that snacks made with branded ingredients are higher quality than other snacks
(Mintel, “Snacking in Foodservice,”).
Burger King offers Oscar Myer hot dogs (Patton).
• Trend towards snacking in food service
15% of consumers reported visiting a QSR for a snack on their last visit (Mintel, “Snacking in Foodservice,” ).
According to a MIntel Report 44% of respondents “like to order snacks with many small pieces to share with others” at
restaurants (Mintel, “Trends in Snacking”).
Sources: Cooper, Ted, “How PepsiCo, Buffalo Wild Wings, and Doritos Locos Demonstrate the Power of 1,” The Motley Fool.
Mintel, “Snacking in Foodservice,” Jun. 2016, accessed Apr. 19, 2017.
Mintel, “Trends in Snacking and Value Menus in Restaurants,” Jun. 2013, accessed Apr. 19.
Patton, Leslie, “Burger King Jumps Into Snack-Brand Hybrids With Mac ’n Cheetos,” Bloomberg.
Rudarakanchana, Nat, “Pepsi (PEP) Teams Up With Buffalo Wild Wings, Ousting Coke (KO),” International Business Times.
PepsiCo should continue to pursue share of wallet adjacencies by
licensing its snack products to foodservice businesses
PepsiCo should pursue a share of wallet adjacency by licensing its snack products to Buffalo Wild
Wings i.e. Doritos Nachos, Doritos/Fritos wings
Recommendation #4
13. Better Off Test
■ Costs ( ):
• Economies of scope- distribution: common supply chain and shared infrastructure; PepsiCo and spread
distribution fixed costs over both beverage and food product lines (PepsiCo 2012 Annual Report).
■ WTP ( ):
• Cross selling beverages and snacks
–For PepsiCo, snacks and beverages are bought together approximately 50% of the time, (Reingold).
–In U.S. convenience channel, Doritos was the number one snack, Mountain Dew was the number
one drink- Mountain Dew Baja Blast Freeze, therefore, offering Mountain Dew and Doritos nachos,
for example, would boost sales of both products (PepsiCo 2012 Annual Report).
–Capitalize on The Power of One- “a council that brings together the company's top food and
beverage executives to leverage the scale and brand equity of its complementary snack and
beverage businesses” (Cooper).
There is a strong argument for PepsiCo to license its snack products to
food-service businesses according to the Better-Off Test
Sources: Cooper, Ted, “How PepsiCo, Buffalo Wild Wings, and Doritos Locos
Demonstrate the Power of 1,” The Motley Fool.
Reingold, Jennifer, “PepsiCo’s CEO was right. Now what?” Fortune Magazine.
PepsiCo, “PepsiCo 2012 Annual Report.”
Overall: Passes BOT
14. PepsiCo has a proven track record of success licensing its snack
products to food-service businesses
■ Opportunity for PepsiCo to deploy a repeatable formula
• 2012: Doritos Tacos Locos
• Dec. 2013: PepsiCo alliance with Buffalo Wild WIngs
• Summer 2016- PepsiCo partnered with Burger King to create “Mac’n Cheetos”
■ Case Study: Proven track record of success with Taco Bell and Burger King
• Doritos Locos Tacos labeled “one of the most successful fast food innovations of all time” (Lutz)
• Taco Bell sold 1 billion Doritos Locos Tacos in the first year (Williams).
• The taco was the most popular menu item in the fast food chain’s 50-year history (Lutz)
• The taco is now a permanent food item on Taco Bell’s menu and comes in 3 varieties (Mintel “Burger King”)
• Generates significant social media buzz: Burger King’s Mac’n Cheetos generated 3.2 billion impressions on social media (Williams).
■ Taco Bell and PepsiCo’s success with Doritos Locos Tacos translates to ~$50 million annual sales for PepsiCo
• Average royalty fee in food industry is 4% and in consumer industry it is 6% (KPMG)
Assumption: About 5% royalty fees for PepsiCo
• Approximate annual payoff for PepsiCo licensing Doritos to Taco Bell
($1 billion in sales)* 5% royalty fee= $50 million (“Nacho Cheese”)
■ Implementation Issues: Despite PepsiCo’s shift towards healthy products, this adjacency move would not jeopardize the
brand image
• 36% of Frito Lay North America revenue still comes from junk food (Reingold).
• Most PepsiCo customers are not aware of linkages between brands and it is a different customer! For example, Doritos and Naked Juice.
• Customers want to indulge
• Elizabeth Friend, a consumer foodservice strategy analyst at Euromonitor, claims “When we are so focused on trying to make healthy
decisions all the time and eating food that we can feel good about, when we do want to indulge, we want to make sure that that
indulgence is worth it” (Premack).
Trend towards “experience driven foods” (Premack).
Sources: Lutz, Ashley, “How Taco Bell's Lead Innovator Created The Most Successful Menu Item Of All Time.” Business Insider.
KPMG, “Profitability and royalty rates across industries: Some preliminary evidence,” KPMG International.
Mintel, “Burger King Launches “Mac ‘n Cheetos.”
“Nacho Cheese Doritos Tacos Locos Tacos Supreme,” Taco Bell.
Premack, Rachel, “Burger King’s latest fast food monstrosity is sadly genius,” Washington Post.
Reingold, Jennifer, “PepsiCo’s CEO was right. Now what?” Fortune Magazine.
15. Executive Summary
■ There is opportunity for PepsiCo to expand its vending machines business in China through a Joint Venture with Ubox.
• Pilot program in Baltimore substituted traditional vending machines with healthy oriented vending machines resulting in an increase in sales by 2-4%.
• Credit card usage with these type of vending machines increased up to 50%, higher than the industry average of 30% signalling an increase in willingness to pay for more healthy
options of drinks and snacks.
• Trend is confirmed by 82% of Chinese respondents who said they were willing to pay more for foods without undesirable ingredients, also higher than the global average of 68%
(Nielsen).
• From 2015 to 2020, China’s vending machines are expected to grow from 150,000 vending machines to 1.38 million by 2020 (Kantar).
■ Next steps: Form joint venture with Ubox to achieve economies of scope and optimize product offerings through Ubox’s analytics and advertising capabilities
■ PepsiCo should pursue a share of wallet adjacency, specifically, “finer customer segmentation,” by licensing its snack products to Buffalo Wild Wings i.e. Doritos Nachos, Doritos/Fritos
wings.
• There is a strong argument for PepsiCo to license its snack products to food-service businesses according to the Better-Off Test.
- PepsiCo can achieve economies of scope in distribution by spreading fixed costs over beverage and snack business units.
- Due to WTP boosting elements, PepsiCo can leverage the “Power of One” to cross-sell beverages and snacks at Buffalo Wild Wings since PepsiCo snacks and beverages are
purchased together approximately 50% of the time (Reingold).
• PepsiCo’s proven track record of success licensing its snack products to food-service businesses such as Taco Bell, sheds light on an opportunity to deploy a repeatable formula.
- As one of Taco Bell’s most successful products of all time, Doritos Locos Tacos became a permanent menu item in 3 flavors (Lutz).
- Taco Bell and PepsiCo’s success with Doritos Locos Tacos translated into $1 billion in revenue for Taco Bell and ~$50 million annual sales for PepsiCo (Williams).
• Implementation concerns: Despite PepsiCo’s shift towards healthy products, this adjacency move would not jeopardize the brand image. The food service customer is a separate
customer than the one who purchases health products, most consumers are not aware of brand linkages, and customers still enjoy indulging in experience driven snack products
regardless of health content.
■ PepsiCo should shed its weak follower and non-core item, Sierra Mist, in order to focus on better performing 7UP, Pepsi brands, and Mountain Dew
• There has been a decline in the popularity and volume of carbonated drinks
- PepsiCo Sparkling beverages had a 2% decline in volume growth in 2015
• Weak follower brands historically cannot make up market share losses
• The percentage of consistent Sierra Mist consumers was cut approx. in half from 2008 until 2016 (16.71% to 7.5%)
■ Pepsico should also offer more healthy variety chips packs to its consumers
• There has been a rise in demand for healthy chips and 88% of consumers say they will pay more for healthy food! (Forbes)
• There is a rise in demand for portable snacks as Americans are eating less per meal and more meals per day (NPD).
• The variety pack chips has seen strong financial performance in the past years for PepsiCo.
Sources: Lutz, Ashley, “How Taco Bell's Lead Innovator Created The Most Successful Menu Item Of All Time.” Business Insider.
Reingold, Jennifer, “PepsiCo’s CEO was right. Now what?” Fortune Magazine.
Williams, Geoff, “Do Wacky Foods Like Burger King's Whopperrito Help The Bottom Line, Or Is It A Cry For Help?”
Forbes, Consumers want healthy foods and will pay more for them
NPD, Press release PR 120815
16. Cooper, Ted, “How PepsiCo, Buffalo Wild Wings, and Doritos Locos Demonstrate the Power of 1,” The Motley Fool, Mar. 8, 2014,
accessed Apr. 19, 2017, https://www.fool.com/investing/general/2014/03/08/how-pepsico-buffalo-wild-wings-and-doritos-locos-d.aspx
Gagliardi, Nancy. "Consumers Want Healthy Foods--And Will Pay More For Them." Forbes. February 20, 2015. Accessed April 20, 2017.
https://www.forbes.com/sites/nancygagliardi/2015/02/18/consumers-want-healthy-foods-and-will-pay-more-for-them/#49cdf19a75c5.
Group, The NPD. "U.S. Consumers Adhere to Three Meal Times Daily But Define Meals Differently and Snack Often, Reports NPD." NPD
Group. August 15, 2012. Accessed April 20, 2017. https://www.npd.com/wps/portal/npd/us/news/press-releases/pr_120815/
"Healthy Snack Trends to Chew On." Nutraceuticals World. January 03, 2017. Accessed April 20, 2017.
<http://www.nutraceuticalsworld.com/issues/2017-01/view_features/healthy-snack-trends-to-chew-on/>
Jed , Emily. Maryland's Black Tie Services Sees Strong Results In Hello Goodness Test Run. Vending Times Inc. September 9, 2016.
Kell, John. "Soda Consumption Falls to 30-Year Low In The U.S." Fortune.com. 29 Mar. 2016.
KPMG, “Profitability and royalty rates across industries: Some preliminary evidence,” KPMG International, 2012, accessed Apr. 20, 2017.
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Lutz, Ashley, “How Taco Bell's Lead Innovator Created The Most Successful Menu Item Of All Time.” Business Insider, Feb. 26, 2014,
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Mintel, “Burger King Launches “Mac ‘n Cheetos,” Jun. 27, 2016, accessed Apr. 19, 2017,
<http://academic.mintel.com.ezproxy.bu.edu/display/775709/?highlight>
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