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Pepsi Global Marketing Strategy

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Pepsi Global Marketing Strategy
Student author
May 29, 2011
Student author
May 29, 2011
Global Market Entry Strategy
Global Market Entry Strategy

PEPSICO, INC.
PEPSICO, INC.

Pepsi
Pepsi

Market Entry Strategy

PepsiCo, Inc. is currently operating in China. It has been in the country since 1982, when it started its first operation in Shenzhen and later established 30 joint ventures all over the country. Recently CEO Indra K. Nooyi said that China “represents our single biggest opportunity today outside the U.S.” (Einhorn & Balfour, 2009 September 28). Recently PepsiCo is stepping up its investments and interests in the emerging market of China. With 1.34 billion people and a Chinese soft drinks market forecasted to have a $40 billion value by 2014, it’s easy to see why PepsiCo is investing in this country now. With government plans to improve the infrastructure, distribution will further improve as well, making it easier to get Pepsi to the Chinese consumers. According to Datamonitor, the company announced in 2008 that it would invest $1 billion in China over the next four years to tap the potential of this growing market (2010 May 14a). This investment would help expand its business and broaden its product portfolio. And according to an article in Advertising Age in 2008, CEO Nooyi said that this was the company’s largest investment in China in the almost 30 years they have been conducting business there. The investment is consistent with their broader global strategy of investing in high-growth developing markets and they want to sell to China’s fast-growing middle class. The money will go towards bigger manufacturing capacity, R&D, and building Pepsi’s sales force in order to broaden product distribution (Madden, 2008 November 10). But that wasn’t the only recent investment. Benjamin Li notes that in May 2010 PepsiCo announced they would invest $2.5 billion in China over the next three years, which would be used to build food and beverage plants, especially in China’s


References: Blecken, D. Asia’s Media & Marketing Newspaper. (2008, May 1). Pepsi consumers set to ‘cheer for China.’ Retrieved from http://web.ebscohost.com.wsuproxy.mnpals.net/bsi/detail Chang, B. China Daily. (2011, January 13). PepsiCo aims to put fizz back in business. Retrieved from http://www.chinadaily.com.cn/bizchina/2011-01/13/content Datamonitor. (2010, May 14a). PepsiCo, Inc. Retrieved from http://web.ebscohost.com/bsi/pdf Datamonitor (2010, Julyb) Einhorn, B. & Byrnes, N. Business Week. (2009, July 13). Coke vs. Pepsi: The slugfest in China. Retrieved from http://web.ebscohost.com.wsuproxy.mnpals.net/bsi/detail Flannery, R. Forbes. (2003, December 22). Pepsi’s Chinese torture. Retrieved from http://web.ebscohost.com. wsuproxy.mnpals.net/bsi/detail Frangos, A., & Burkitt, L. Wall Street Journal. (2011, May 20). The incredible shrinking bottle. Retrieved from http://chinabevnews.wordpress.com/category/pepsi-china/ Keegan, W.J., & Green, M.C. (2011). Global Marketing. New Jersey: Pearson Education. Li, B PepsiCo. (2011). Video. Retrieved from http://www.pepsico.com/Index.html Sellers, P
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