PepsiCo presently has operations in more than 200 countries worldwide, which makes it the third largest food manufacturing company of the world. PepsiCo believes that, being innovative helped them to expand globally, as they develop their businesses and grow their position country by country. For competitive success in the alternative beverage industry, PepsiCo’s key success factors are product innovation and differentiation.
The ability to meet he changing needs and preferences of consumers through product innovation and differentiation from traditional drinks is imperative in the maintenance of volume and growth in mature markets where PepsiCo’s has experienced a decline in sales and a reduction in the consumption of soft drinks. Continuous product innovation is also essential for acquiring larger market share in international markets with low saturation rate.
Another key factor for PepsiCo’s success in this industry is Volume and market share. Large scale distributors such as PepsiCo and Coca-Cola are able to benefit from economies of scale and from a substantial reduction in their business risks. This results in distribution being another key factor for companfs future success. With the absence of effective distribution channels, PepsiCo would not be able to reach a wide range of wholesale stores, making it more difficult to achieve the high volume sales and large market share.
Nevertheless, PepsiCo is already known for having highly-effective and multi- istribution system which assists in the maintenance of the companys current market share position in both national and global markets. In addition, strong brand image and recognition is another important aspect Of the alternative beverages industry. Strong brand mage also means loyal consumers. Usually, alternative beverage consumers are very dedicated to a specific brand and seldomly purchase another kind.