Case analysis on PepsiCo's Diversification Strategy in 2008 Essay

Case analysis on PepsiCo's Diversification Strategy in 2008 - Essay Example Nevertheless, the challenge for PepsiCo is on how to improve its share of the international market, and how it would improve its sales in beverages and food commodities through appropriate market strategies. Recommendations Recommendation 1: Create an online retail market. This retail market can make their markets more accessible to the consumers, regardless of the consumers’ location. Tie-ups with local stores in the major cities and local stores can help direct the consumers towards areas where they can access the products they want. Recommendation 2: Increase accessibility of goods by increasing the number of products in the local stores and shops. More local stores must have their supply of PepsiCo products, from the beverages to their food items. Such goods must reach as many stores in both the cities and the rural areas in as many countries as possible. The company can provide online link-ups to these stores – to give local consumers the opportunity to access thes e goods through the internet and have them delivered to their homes or be picked up in the stores. Recommendation 3 Take out advertisements and commercials to run in the TV, newspapers, and similar media using the local talents or familiar celebrities in these countries. These advertisements can also run in magazines and in shopping areas, using these familiar and local celebrities. Promotional tours for these celebrities can also be used to assist in establishing the popularity and patronage of the products. Tie-ups with local activities in these countries can also be carried out. Significant factor list: 1. Its rival company Coca-Cola has created a formidable international market with a firm footing on many developing nations. 2. Its Quaker Oats products are not popular brands and products outside the United States. 3. Its recent acquisitions like Quaker Oats and Frito Lay Brands have not been popular brands outside the United States. Product lines like Fritos Corn Chips, Captain Crunch Cereal, and Cracker Jack popcorn, among others are not popular and strong products outside the United States. For the most part, these products are expensive purchases for other states, especially the developing nations. 4. The international crisis has affected sales for most major corporations operating in the local and in the international market. 5. Some of the local stores in countries outside the United States do not carry the PepsiCo and Quaker Oats products. 6. PepsiCo has not reached the local and cultural level of consumer appeal. It lacks a connection with the local people and such disconnect makes it more difficult for the company to be more appealable to the local consumers. 7. Environmental concerns on water consumption have been raised and have called for the company’s participation in conservation efforts. This implies higher production costs for the corporation. Justification of each recommendation Justification for Recommendation 1 Almost everything an d everyone these days is online. PepsiCo must take advantage of this new medium in order to ensure that its products would reach the most number of people in the international market. The internet is one of the most convenient, innovative, and time-saving technologies available today. It is a medium which allows users