Case Study: PepsiCo

Instructions:

Your response should not exceed 2400 words (excluding appendix) to avoid losing marks. Do not use unexplained bullet points.  Use formal writing style, sentence – paragraph structure. If necessary, tables such as SWOT can be included in the appendix but should be discussed and/or referred to in the text.

Case Study: PepsiCo: The Launch of Organic Gatorade

While using the “case study method”, address the following set of questions in your analysis:

1. What is the nature of competition in the soft drink market? Identify competitors and their competitive advantage.  What is the first-mover advantage?  What are the risks involved in this strategy?

2. Why do consumers buy Gatorade and sports drink? What are the emerging trends in the market? What is a functional drink?

3. Is organic food healthier? Why does this matter in the context of this case?

4. Why do consumers fail to follow through on their good intentions with respect to diets and money?

5. Is it moral for Marketers to nudge consumers? If it is not moral, what is the preferred alternative?

6. Should PepsiCo launch organic Gatorade? Explain your strategy recommendations and alternatives.

Case study format to follow

Problem statement

What does Pepsico need to do to successfully launch it organic gatorade? Be specific in terms of 4Ps issues. How would you generally describe the market it is entering?

Situation analysis

Objectives, background, SWOT

1. What are the sales objectives?
2. Why did Pepsico develop the product? What are current sales?
3. List four or more strengths of Pepsico.
4. List three or more weaknesses.
5. List two or more opportunities.
6. List two or more threats.
7. Summarize the implications of your SWOT points.

Market and competitive analysis

1. What is the market size?
2. What is the organic beverage market potential in Canada?
3. What percentage of the local population does Pepsico currently serve?
4. What is the company’s local market share expected to be following the expansion?
5. What different segments can you identify in the market?
6.  Analyze the competition, its market share, and its strategy. Which is most threatening?

Financial analysis

1. What is the current revenue picture?
2.  What is the projected revenue following the expansion??
3.  What would be a typical promotion budget size? (hint Read this report to assist your estimation http://www.omafra.gov.on.ca/english/busdev/facts/16-027.htm#step4 )

Key questions

1. What is the main opportunity, question, or issue in the case?
2. List a maximum of three key success factors for Pepsico
3. List two key uncertainties. (Often included here are consumer acceptance and competitive reaction.)

Alternative analysis

1. What social media are potentially useful for Pepsico?
2. What are the pros and cons of each alternative distribution strategy you identify?
3. Which alternative do you select? What is the target segment and marketing mix suggested?

Recommendations

1. What recommendations, including a marketing budget and specific actions, do you have for Pepsico?
2. What is your contingency plan?