Pepsi Soft Drink in Thai Monopolistically Competitive Market
Presented to
Grega Libor, Prof., Ph.D.
Department of Business Economics
Mendel University of Agriculture and Forestry Brno, Czech Republic
Presented by
Ms.Mananya Santikongka
ID. 5415350098, Batch 15, No.3
Kasetsart International MBA program, Kasetsart University
Managerial Economics and Business Strategy
2011
Contents
Introduction Page 3 Company Information Page 3 Figure 1: The Market Share of Soft Drink in 2010 Table 1: The Percentage of Each Segment of Soft Drink in 2010 Table 2: The Distribution of Soft Drink in the Market in 2010 Demand and Supply of Pepsi Page 4 Table 3: Population and Demand in Cola Soft Drink Market
Figure 3: Changes in Demand of Pepsi
Figure 4: Changes in Supply of Pepsi Quantitative Demand Analysis of Pepsi Page 7 Figure 5: Demand, Elasticity, and Total Revenue The Nature of Industry in Monopolistic Competition Page 7 Managing Monopolistically Competitive Markets Page 8 Figure 6: Short-Run Profit Maximizing under Monopolistic Competition Figure 7: Long-Run Equilibrium under Monopolistic Competition Pricing Strategies of Pepsi Page 10 Table 4: Pepsi’s Pricing Information Figure 8: Pepsi’s Block Pricing Conclusion Page11 Bibliography Page 12
Introduction Pepsi is sold in numerous countries around the world that can be associated as Americas, Europe, Asia, Middle East and Africa. Quite a lot of those countries, Pepsi are not a leader in the cola soft drink markets; however, Pepsi is a soft drink leader in several countries including Thailand.
The Pepsi soft drink or the soft drink in this report means specifically only a carbonated cola soft drink that is categorized in a monopolistically competitive market due to a condition of the industry. A monopolistic competition is between monopoly and perfect competition. There are many buyers and sellers in which firms produce products that are
Bibliography: Bangkok Focus News Online, http://marketingbangkokfocus.blogspot.com/2011_02_01_archive.html Baye, M. R. (2010). Managerial Economics and Business Strategy (7th ed.). McGraw-Hill. New York, America. Bell Ja Marketing, http://www.bellja.com National Food Institute, Thailand, http://fic.nfi.or.th/th/thaifood/product52-beverage.asp PepsiCo Incorporation, http://www.pepsico.com/index.html Pepsi Thailand, http://www.pepsithai.com/pepsi2010/index.php Positioning Magazine Online, http://www.positioningmag.com Sermsuk Public Company Limited, http://www.sermsukplc.com/index-en.php Sermsuk Public Company Limited (2010). Annual Report 2010. Thailand. The Bureau of Registration Administration (BORA), http://bora.dopa.go.th/list.htm