Current Situation of Pepsi Light
Pepsi Light is a product that has received great regard in the market globally mostly due to the fact that it mostly associated with sports and that it contains less calories compared to the normal average drink. PepsiCo is a well recognized company worldwide that a lot of people want to be associated with and this has made it easier for the company to introduce new products in the market and maintain the existing ones since the brand name is well established. Pepsi Light was well received in the market and currently it has reached the maturity stage. The product has enabled PepsiCo to gain more profits though it faces a stiff competition from its competitor Coca-Cola. However, it is evident that PepsiCo is gaining much fame which acts as a threat towards the competitor thus an advantage to the PepsiCo.
Internal Factors/External Factors
In order for a business or organization to run efficiently and acquire great success that meets its objectives, significant consideration of both the internal and external factors should be persisted. Most organizations tend to forget the need to consider the internal factors of the company without the realization that the internal environment of a company has a direct impact on the business. The major internal factors of the Pepsi Light include the mission and vision of the product, human resource, internal power relationships, financial factors, management structure and nature, company image and brand equity and also the research and development. These internal factors are controllable since the PepsiCo which owns Pepsi Light product can has control over them. The company can easily modify or even alter these factors as its organizational and functional means such as the environment, its physical facilities and personnel.
External factors are said to have an indirect influence on the business and it’s hard for the organization to alter or modify these factors. PepsiCo had a great consideration of these factors before launching Pepsi Light and this is one of the major reasons why the company has always been successful in the launch of all its products thus becoming among the best beverage companies globally. The company considered both the macro and micro environment. On micro environment the major considered factors included the customers, suppliers, financiers, marketing intermediaries and public. When it comes to macro environment crucial considerations had to be put on the economic environment, social, political, legal and technical environment. These factors need to be well considered since they can have a serious effect on a business leading to its fall.
SWOT Analysis
Pepsi Light proved to be quite successful in the market and this was realized after carrying out a SWOT analysis. The major strength that led to the success of this product was the fact that Pepsi Co has become a complex part of culture for decades since it started producing non alcoholic drinks. Another major strength is that it is a well recognized brand globally. Pepsi Light also has a unique bottling and packaging that cannot easily be imitated. Also it is known that Pepsi Co has the greatest distribution network worldwide following coca-cola. The Company has also taken effective strides to enter new market.
Pepsi Light also contains some weaknesses which might lead to its failure in the market if strategic precautions are not applied. One of the major weaknesses is that the drink is said to enough sweetness compared to other competitor beverages and this can pause as a great problem. Secondly, addiction of Pepsi drink can easily be a problem and also saturation of carbonated soft drink segment is also a weakness associated with Pepsi light.
PepsiCo has a great opportunity to increase the sales of Pepsi Light and expand on its market share. The fact that 94% of the world population has a high recognition of the product is a very great opportunity. Secondly, the product has a high potential in developing untapped market mostly in developing countries. This clearly indicates that Pepsi Light can gain more market in developing countries thus increasing its market share which in return increase the company’s profits and revenue. This is so with the realization also that the Pepsi Co brand is attractive to partners worldwide which acts as another opportunity too.
When it comes to threat, there are various major threats that Pepsi Light faces throughout the world mostly from its competitors. First, the product faces a threat from the substitute products such as juice, coffee, tea, milk and hot chocolate. Consumer buying power also is another threat facing the product since the consumer tends to change their tastes and preferences with time. This is normally triggered by the availability of the substitute products and the prices offered quality and others. Strong competition is another threat that Pepsi Co has to look at if the product has to survive in the market. The company’s major competitor Coca-Cola has produced competitor products and this call for strategic marketing measures for PepsiCo in order to sell Pepsi Light and combat the competition.
Target Market Analysis
Pepsi Light is a product that has mostly targeted the younger generation from ages 14yrs-30years. The product also targets various institutions such as the universities, colleges, hotels, stores, restaurants, high school students and also homes. The product major target market strategy is to introduce a product that is mostly associated with sports and social activities thus identifying a niche market. This is a major idea that has worked well with the company thus attracting a large number of youths who have had interest in being associated with the product due to its involvement in the sports world. Everyone wants to be associated with fame and thus the reason why Pepsi Light has been regarded as an attraction point for most youths who love sports. The product is used in various occasions mostly especially where youths are involved and also due to the affordable price.
Market Research
Market Research is a very important aspect to carry out when introducing a product or service in the market and also when a product already exists. This is in order to clearly understand the major competitors and be able to know the market condition so as to introduce the product or service in a well thought out strategic approach that will lead to success of the product. PepsiCo carried out proper and effective marketing research before the introduction of Pepsi Light and this is one of the major reasons for the success of the product. This has been the routine for the company on its entire product and it has proved to be a successful strategy since most of the company’s products have been very successful on introduction. Marketing research has enabled PepsiCo to be well aware of their competitors thus enabling the company to create the best strategies to enter the market and thus acquire a large market share. Marketing research is an aspect of marketing that should never be ignored since it is a clear indication of what’s happening in the market, who are the key competitors, the major substitutes and so much important information that regarded of significant use.
Consumer Behavior and Purchasing Habits
Consumers tend to change their tastes and preferences with changes in products prices, quality and also according to the availability of the substitutes product. The consumer purchasing habit is highly influenced also by the packaging which most of them link with the amount of money available. Pepsi Light is a product that is packaged in a style that is convenient to buy through use of different sizes of bottles to cater for the various consumer efforts. The prices that the PepsiCo offered for the beverage was also very attractive compared to the competitor products and this attracted quite a large number of potential customers in the long run. The consumer behaviors and habits is influenced by other factors such as the income of the consumer, the price, the consumer tastes and preferences, the competitors products and also the availability of the product in the market.
In conclusion, PepsiCo has a stable market situation that has seen to its high growth recently mostly in developing countries. The company has introduced a lot of products in the market which have gained a large market share easily and highly. Pepsi Light is a product that has easily penetrated the market and become a threat to the competitor product. The product has been associated with a health drink thus attracting more people and has gained more fame due to its association with sports. It is clear that consideration of certain factors such as marketing research and carrying out of SWOT analysis has enabled PepsiCo to create and develop a better market for Pepsi Light before its entry to the market. Currently the product is in the maturity stage in the market. The major reasons why the product was received well in the market was due to its favorable price and unique packaging.
References
PEPSICO. (2012, n.d.). Responsible Marketing & Advertising. Retrieved 29 January, 2013, from PEPSICO: http://www.pepsico.com/Purpose/Human-Sustainability/Responsible-Marketing.html
