Preview

consumer behaviour study case

Powerful Essays
Open Document
Open Document
2068 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
consumer behaviour study case
Name: Septiawan Vergian Fachrozie 125020207121023 Rizky Akbar 125020207121005

Pepsi Next Case Study

In February 2012 the Pepsi Next product was launched into the US market. This case study provides students with an interesting insight into PepsiCo’s new product process and some of the challenging decisions that they faced along the way.

Introduction
Pepsi Next was launched by PepsiCo into the US market in February 2012, and has since been rolled out to various international markets (for instance, it was launched in Australia in September 2012).
The new product is described as a mid-calorie cola beverage, having a mix of sugar and artificial sweeteners, designed to deliver a full cola taste with reduced calories. While filling the market gap between full sugar and diet soft drinks, PepsiCo has indicated that its prime target market is lapsed cola drinkers (giving them a reason to return to the product category).
PepsiCo, which owns range of high profile beverage brands in addition to its flagship brand Pepsi, appear to be highly committed to Pepsi Next providing it with strong launch and management support. In fact, according to PepsiCo themselves, this is their most significant product launch for several years.
About PepsiCo
PepsiCo is the second largest food and beverage company in the world, with revenues now in excess of $60 billion. The corporation has 22 brands that achieve retail sales in excess of $1 billion each. As a result of their brand diversification, around half of PepsiCo’s revenue is generated from their food lines, such as Frito-Lay (snack food) and Quaker Oats.
In addition, they have progressively expanded internationally and now access over 80% of the world’s population. Their international (non-US) markets account for almost 50% of their total revenues and they still see significant growth potential from these markets, on the basis that per capita consumption of snacks and beverages in other countries is well below US market levels.
As a

You May Also Find These Documents Helpful

  • Better Essays

    Fin/370 Pepsico Essay

    • 1555 Words
    • 7 Pages

    Pepsi like many companies needs to grow to continue to make money. This is a broad statement and works the same for every business operating in any market. Pepsi has recognized this need and has come up with a few initiatives to make this happen. Pepsi decided that the best way to make their company stronger was to build up their current brands and make their distribution practices more streamline and economic. Pepsi has dedicated more than $500 million dollars for this purpose and plans to continue to report positive growth because of this initiative. The plan is to increase the marketing in North America and make the already iconic beverages more of a household name. The thinking behind this is that if the products are in the consumers face, they will be more likely to purchase the products Pepsi offers ensuring positive growth for the shareholders. Although Pepsi has decided to back the most known brands, Pepsi will still continue to bring new snacks and beverages to the market because different factors affect the consumption of the already strong branded products. Because upper level management knows that consumer wants and tastes play a large role in how the public buys snacks, Pepsi has committed to make changes to respond to customer wants and changing tastes in different areas.…

    • 1555 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    mkt421

    • 1730 Words
    • 7 Pages

    Pepsi was founded in 1898 by a druggist from North Carolina named Caleb Bradham. Through a series of acquisitions and other business dealings, Pepsi became PepsiCo. PepsiCo currently produces a variety of beverages, many in partnership with other companies. PepsiCo sell soft drinks, juice drinks, sport drinks, bottled and enhanced waters. Recently, the company has acquired Tropicana Juices. This move, combined with a merger with Quaker Oats, increased the number of beverages in the PepsiCo portfolio. The most notable brands from Pepsi American Beverages (PAB) include: Pepsi, Diet Pepsi, Gatorade, Tropicana Pure Premium Juices, Dole Juices, and Propel Fitness Water. A partnership with Starbucks produces ready-to-drink Frappuccino drinks (The PepsiCo Family, 2011).…

    • 1730 Words
    • 7 Pages
    Powerful Essays
  • Best Essays

    Marketing Plan for Kickstart

    • 3527 Words
    • 15 Pages

    PepsiCo has world renown brand name, a reputation for solid brands and a deep and wide product line in the international and domestic markets. (Simon & Sullivan, 1993). With revenue of more than $66.5 billion, PepsiCo is a world-wide leader in the beverage industry (Bryson York, 2012; Watling, 1992). According to its annual report, the international brand, innovative capabilities, and strong distribution network define PepsiCo as a market leader and are its strengths (www.pepsico.com; Valentin, 2001). One of the strength identified for PepsiCo is its franchise system (www.pepsico.com). A consistent brand and advertising campaign coupled with a consistent marketing strategy for promoting its brands is also a strength. PepsiCo further has a strong global presence as it sponsors major sporting events (www.pepsico.com). It also has a focus on one of the most important customer trends, i.e., customer satisfaction (Finch, 2012; Valentin, 2001). PepsiCo is ahead of some of its main competitors, for instance Coca-Cola, on both the…

    • 3527 Words
    • 15 Pages
    Best Essays
  • Powerful Essays

    ACC 205

    • 1344 Words
    • 12 Pages

    PepsiCo Inc. is an American multinational food and beverage corporation headquartered in Purchase, New York. PepsiCo is a world leader in convenient snacks, foods, and beverages, with revenues of $60 billion and over 285,000 employees. PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Coca-Cola Company has historically been considered PepsiCo's primary competitor in the beverage market, and in December 2005, PepsiCo surpassed The Coca-Cola Company in market value for the first time in 112 years since both companies began to compete. In 2009, the Coca-Cola Company held a higher market share in carbonated soft drink sales within the U.S. In the same year, PepsiCo maintained a higher share of the U.S. refreshment beverage market, however, reflecting the differences in product lines between the two companies.…

    • 1344 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Competition has always been a part of human nature. We compete to show dominance upon one another. Times were tough for African American slaves, whom were freed from slavery. In Ralph Ellison’s Short story, Battle Royal, the author uses the main character to demonstrate how difficult it is to break a never-ending cycle. The story of Battle Royal is a depiction of what many black men faced in that time. The narrator is living a 1930’s Alabama and has recently graduated from high school at the top of his class. At around 17 years old he thinks of himself as a young Booker T. Washington.…

    • 474 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Schloarly Activity I

    • 1275 Words
    • 6 Pages

    PepsiCo is global leader in convenient snacks, foods, and beverages, with revenues over $60 billion dollars and 285,000 employees across its organization. PepsiCo operates and conducts business around the globe, from Europe, Asia, Africa, and the Middle East but is headquartered in Purchase, New York. PepsiCo, for 2011 on the Fortune 500’s global 500 ranked 137 having made significant gains from one year prior where they ranked 171. PepsiCo owns some of the most recognized and popular brands on the planet including Pepsi-Cola, Mountain Dew, Lay’s, Tropicana, Gatorade and Quaker products. These brands are made available worldwide through a variety of go-to-market systems such as direct store delivery, broker warehousing, and food service vending companies ("PepsiCo," n.d.).…

    • 1275 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    PepsiCo Inc. is an American multinational food and beverage corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001—which added the Gatorade brand to its portfolio.…

    • 1150 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Pepsi Next

    • 1345 Words
    • 6 Pages

    The article considers the product launch of the Pepsi Next brand soft drink by beverage industry firm PepsiCo scheduled for the summer of 2011. The soft drink is a so-called mid-calorie soft drink sweetened with a blend of high-fructose corn syrup and artificial sweetener. The launch is considered in terms of PepsiCo's attempts to reverse a decline in the market share of its cola soft drinks.…

    • 1345 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Pepsi has many teams that work together in the beverage and snack departments to research and make sure that the proper choices are made and they can continue to grow in every aspect of the company whether it is in the United States or in one of the many other countries that they have companies in.…

    • 252 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Walkers Crips

    • 749 Words
    • 3 Pages

    PepsiCo is the second largest food and beverage company worldwide. Its portfolio contains 22 brands ranging from Walkers to Tropicana and Pepsi. Their websites (PepsiCo) boasts that each brand they own generates more than $1 billion in yearly sales. They have an annual net revenue of $65 billion. This company certainly highlights how important the food and drink industry are in the global market. PepsiCo’s current worldwide flavours headquarters and also a manufacturing facility are situated in Cork employing around 500 employees.…

    • 749 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Wahaha Case Study

    • 2502 Words
    • 11 Pages

    5: Cola Wars – UTS 21715 – Strategic Management Lecture 3 University of Technology Sydney…

    • 2502 Words
    • 11 Pages
    Best Essays
  • Better Essays

    MGT330 Final Paper

    • 2291 Words
    • 10 Pages

    The new age brings a challenge to Coca-Cola to find a way to reinvent and rebrand itself. With Mary Minnick as the new head of marketing, Coca-Cola is creating a new and fresh image through marketing and product development efforts. In this paper, I will describe and evaluate Coca-Cola’s marketing and innovation strategy transformation designed to position the company on the cutting edge of consumer trends, and developing healthy beverages, examine the underlying logic of Minnick’s emphasis on understanding why people consume beverages, discuss the underlying local of the non-carb drinks strategy, and compare and contrast the performance of Coca-Cola and Pepsi.…

    • 2291 Words
    • 10 Pages
    Better Essays
  • Satisfactory Essays

    This report provides an analysis and evaluation of the Marketing Strategy of PepsiCo. Methodsof analysis include Market Segmentation, Market Targeting, Market Positioning, as well as theMarketing Mix of PepsiCo.The research draws attention to the Market Segmentation of PepsiCo. While the soft drink industry has probably the widest and deepest customer base in the world, Pepsi did not use themajority fallacy to market their product. Instead, Pepsi prefers to segment itself as the beveragechoice of the ³New Generation´, Generation Next, or just as the ³Pepsi Generation´. These…

    • 444 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The ability to meet the changing needs and preferences of consumers through product innovation and differentiation from traditional drinks is imperative in the maintenance of volume and growth in mature markets where PepsiCo’s has experienced a decline in sales and a reduction in the consumption of soft drinks. Continuous product innovation is also essential for acquiring larger market share in international markets with low saturation rate.…

    • 286 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Criticisms against quantitative analyses have accentuated the lack of agency given to migrants by reducing women as numerical values. To remedy this, studies have incorporated stories from migrant women. The results portray a paradox; on the one hand, participation in the labor market has become liberalizing for female workers. Increased employment prospects (from unpaid work) became a source of personal development and empowerment (Asis, Hoang, and Yeoh 2004; Gamburd 2000; Hoang and Yeoh 2011; Kifleyesus 2012; Oishi 2005; Parrado and Flippen 2005; Pessar and Mahler 2003; Pingol 2001; Piper 2008). Parrado and Flippen (2005) note that migrant women have higher self-esteem, increased decision-making…

    • 925 Words
    • 4 Pages
    Good Essays