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Perform a SWOT analysis for PepsiCo

Perform a SWOT analysis for PepsiCo: In the same EBSCO Database, Look at the SWOT Analysis in the Company Profile has a best in the class performance in helping to carry out a SWOT analysis of various business houses, like PepsiCo as well as to the students. While guiding people to perform a SWOT analysis for a giant branded company like PepsiCo, considers the following aspects that are key factors:

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Strengths of PepsiCo to be considered in SWOT Analysis:

Pepsi’s brand equity – The Brand quality of PepsiCo is considered a phenomenal brand of youth as well as aged. It has remarkable brand value, recognition and reputation. The estimated valuation of PepsiCo is about $19.4 billion, which ranked 29 in the brand valuation list of Forbes.

Product performance: The financial year 2015 has observed a demotion in the Marketing of soft drinks. The citizens of India as a nation are tending to become more health-conscious day by day. This can be observed from its sale analysis of the year 2015 related to top-selling brands all over India. Indian top 5 beverages are famous only in juices and sweet syrups category. The soft drink product had no rank in the top 5. The top 5 beverages presented here in decreasing order are:

Brand: Owned by Share:

Real   Dabur              8%

Tang   Mondelez        6%

Slice   PepsiCo          6%

Roohafza  Hamdard  6%

Tropicana  PepsiCo   6%

  • Strong Leadership of PepsiCo: Under the leadership of the personality like Indra Nooyi, PepsiCo has been performing well. It has ranked as number two position in the entire food and beverage sector only having Nestle above it.
  • Great Loyalty of the Customers: PepsiCo enjoys a great customer perception who are loyal to its brand name. In its soft drink category, all its drinks have an iconic and enchanting taste and due to that their customers do not prefer to shift to other brands soft drinks. They have proved themselves to emerge as a very strong brand when compared in the bottled water category.
  • Strong distribution network: Pepsi has a great global Marketing network comprising more than 200 nations contributing to its brand.
  • Strength in Supply Chain: Pepsi has remarkable supply chain networks globally, resulting in its products available throughout the world. Apart from that, they also have a great and efficient logistics associated with it.
  • Tie-Ups of PepsiCo: They have tied up with various sports events taking place which comprise music concerts as well becoming in the limelight and thereby increasing the brand name. They have sponsorships to major games and sports teams and thus becoming popular with what the brand is recognised.
  • Clear focus to its target consumers: Pepsi always maintains a clear target audience which Coco cola the other famous soft drinks do not. PepsiCo always targets youngsters using its ads in a social network, newspapers, TV, etc., and generally, the young generations are found to be smarter than the old ones and favour Pepsi.

Weaknesses of PepsiCo:

  • Strong Competition: PepsiCo face strong competition from the other soft drinks giant Coca-Cola. PepsiCo and Coca-cola are always in the neck to neck competition with each other. This competition offers the customers space for the loyal customer base to switch brands quickly.
  • Unhealthy product quality: Most of the soft drinks of the PepsiCo has a perception as an unhealthy drink this should be addressed.
  • Limitation of branded Product: PepsiCo is only present in the food and beverage sector that has a negative value in the long run. They need diversification.
  • Failed Product history: Many brands of products, namely ‘Crystal Pepsi’ which damaged somewhat the brand image of the PepsiCo.
  • The wrong choice of Brand Ambassadors: an ill performance by the famous personalities/celebrities, which are selected as a Brand Ambassador, may deteriorate the brand image of PepsiCo.

Opportunities of Pepsi:

  • Healthy Options: It should manufacture healthy food chains that have a positive perception of its consumers, improving the health implications of their products. Diet Pepsi is a positive move.
  • Diversification: Business diversification into different market segments is a huge opportunity.
  • R&D: PepsiCo, with its strong R&D activities, has come out with healthier options in a soft drink like 7Up by using the substitute of sugar called Stevia. This can be a game-changer.
  • Flavours: A brand which has risen strongly in recent years is Paper boat. Paper boat is known for its various flavours such as watermelon, raw mango etc.

Threats in the SWOT analysis of PepsiCo:

  • Competitors: PepsiCo should overcome competitions from Coca-Cola, Dr Peppers Snapple Group, Mondelez, Kraft Foods, Nestle diligently.
  • Economic Slowdown: As an impact of the recent slowdown in the countries, PepsiCo might see a drop in its sales due to a negative cash crunch impact economy.
  • Government Norms: Different norms of different countries of the world provide negative trends to handle and to act accordingly.

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