“Product Mix and New Development Strategies”
In my case assignment I will be talking about the product that I chose to research on which is Pepsi. Also, why I think Pepsi should use Products, Target Markets, Segmentation, Target Markets, Product (PTSTP) in conjunction with the first four P’s in the marketing equation product, promotion place and price.
Going through the research I believe that both equations are similar in today’s business world. As I foresee the production Pepsi has done in the products advertised to the consumer versus Coca Cola has had a great impact on the soft drinks and snacks they have introduced over the years. Pepsi has done a tremendous job through their research, analysis and development ensuring the customer gets what they pay for. As Pepsi lists their products in the market makes it harder for other manufacturers to compete against them. They target the markets on what consumers want to buy for their money targeting individuals of different age giving them what they want. This is why segmentation falls into the equation where gender and age are applied into this category defining what they are consuming the most. By taking getting feedback from the consumer, Pepsi targets the market on what they will produce to ensure customers are satisfied with the product they are offering. By doing this I believe the product developed is them categorized a high value in the market for Pepsi to be one of the high demanding organizations in the production business.
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As Pepsi Co Inc was founded by Donald M. Kendall both the president and CIO in the late 1980’s merged with Frito-lay giving Pepsi an advantage over other competitors such as Coca Cola and brand drinks from local stores harder to keep up with the competition. With an organization such as Pepsi well recognized all over the world has a record of over $510 million in sales of the products they sell in the market. Even with analysis done through a taste competition where they randomly select individuals to taste the products being introduced with current coca-cola products, has made Pepsi come ahead with a better taste in the drink. As the organization grew bigger, through televised commercials and other means to let the people know the choice random people preferred on a drink put them on top from other vendors in competition. With Pepsi adding more than 200 product variations into the global portfolio ranging from Quaker Soy Crisps to Gatorade Xtremo Thirst Quencher. AS with Steven S. Reinemund chairman and CIO stated that he believes that a constant quest for a change needs more than even quality and value is the solution that has driven the purchase of NY Company consisting of double digit growth earnings. With the statement that was made by Reinemund, “Innovation is what consumers are looking for, particularly in the small, routine things of their life.” Looking at the research has opened my eyes that Pepsi CO Inc/ Frito-lay enterprise dominated 60% of the US chip market making $9.1 billion in revenues last year reflecting in the changes the organization to be on top of their game. Introducing new products with lo card drinks increased by 4% volume growth with new flavors and healthier ingredients. The problem that it would faced was Frito-lay counterpart trying to introduce low fat products in the market which did not have a problem in doing as they cut out all fat from their products. By introducing new products in the market made Pepsi Co/Frito lay stay on top of others without any competition out in the market. Even as other competitors tried to introduce new products into the market, Pepsi Co/Frito lay went after another product under their wing bringing in additional products into their organization from its $1 billion Mexican subsidiary called Sabritas. Brining in exported products to the 46 million Hipics living in the US bringing in authentic flavors over the brands Hipics liked the most. They were cautious on doing this as they did not want to break the barrier Frito-lay had in the US, instead they limited the products to be imported into the US from the operation in Mexico. This big organization made sound decisions into what they were selling making huge amounts of profits. As we have seen over the years, when a major organization is going to introduce a product such as Pepsi, they wait for the right moment to make it public and price it right to keep in with the competition Coca-Cola has. They use technology to campaign their products around the world. This is why they are able to meet the consumer’s needs wherever Pepsi Products are sold.
In conclusion, Pepsi Co Inc/Frito lay will always continue to provide consumers with the needs and demands they want. They have enabled the four P’s and PTSTP to the way the organization functions.
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Product Mix and New Development Strategies. (2018, Jul 23). Retrieved from https://phdessay.com/product-mix-and-new-development-strategies/