(Solved) Product Proposal of Pepsi

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Product Proposal --- Pepsi
The product market is huge with a lot of commodities currently making waves and being sold
to consumers within the country and across the globe. Having reviewed the length of
alternatives available, the choice was made to select Pepsi as the core product. Pepsi over the
year has developed into one of the leading soft drinking brands in the world. The company
has translated from being a mini firm to one of the largest and most patronized soft drink
company in the world. Based on the requirement of this study Pepsi soft drink will be sold
along with my brand of healthy and balance diet meal known as the Big Bite.
PepsiCo Inc is the company behind the manufacture of the leading soft drinking popularly
known as Pepsi across a host of several nations in the world. PepsiCo is an American
multinational corporation well known for specialization in the sales of food snacks and
beverage across the globe. The company has its operational headquarters located in Harrison
New York (Eades & Thornhill 2017). Over the years in a quest to remain relevant in the
market and to effectively compete with other similar brands, the company has focused on the
development of several strategic decisions as regarding the function of marketing,
manufacturing, and also the distribution of its grain-based food, snack, and beverages (Eades
& Thornhill 2017). The company came into inception in 1965 when three major company
form a merger which led to the actualization of the brand is known PepsiCo today, the
company has expounded its product offerings over the years to cater the requirements of a
vast segment of the society (Eades & Thornhill 2017). Regardless of the diversity efforts put
in place by the firm, it most celebrated and the most popular drink is the Pepsi soft drink. It is
severed cold to a host of buyers across the nations of the world. Based on the level of

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performance and success it has made, the company is one of the biggest and most valuable
firms in the world (Eades & Thornhill 2017). In 2012 the company generated an excess of 1
billion US dollar in revenues and the company is currently sells its Pepsi drink in more 200
countries in the world (Eades & Thornhill 2017). The company’s popular soft drink brand
simple know as Pepsi is a carbonated soft drink, it is best served cold and it is taken with a
host of snacks and meals by people all over the world.
Additional Component- Big Bite
The Big Bite will be sold along with a cold of bottle of Pepsi soft drink. The product will be
made in a snack like a manner but will put in mind all the basic considerations required of the
creation and accomplishment of a balanced diet. The Big Bite will be created in the form of a
sausage roll and would be sold along with Pepsi soft drink. Although other firms out there are
currently making similar products, I believe that the Big Bite sausage roll will effectively
capture the market by some of the factors put into consideration during the creation of the
snack. The snack will be made with the knowledge needed for the development of a balanced
diet. It will contain a component of all the six classes of food contain very minimal sugar
quantity. It will meet the daily nutrient need of the society and also minimize adverse factors
such as obesity.
The strength of the Big Bite will include the goal behind the creation of the sack which is a
deep consideration of the health needs of the society. Its unique component and ingredients is
also an advantage and the fact that it takes into consideration the balance diet requirement of
society is also merit (Gürel & Tat 2017). However, it also has some weaknesses.The

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weakness of the project is based on the fact we are have currently unable to generate recipes
that will cater to the need of a special set of consumers and the variety of the offering is still
limited at this time (Gürel & Tat 2017). There exist massive opportunities for the sale of the
Big Bite in the market. There are large fractions of today’s society who are concerned with
the nature of food intake. They look for quality and a balanced diet which is offered by the
Big Bite (Gürel & Tat 2017). The leading threat to the survival of the product in the market is
the presence of already established companies who are also already into the sale of snacks
and other fast food. Their presence and market share could be considered as a threat to the
survival of Big Bite in the market (Gürel & Tat 2017).
The adoption of an effective market segmentation strategy will help define the target in which
the Big Bite snack product will be sold. The segmentation for the sale of this product will be
based on demography and geography. By the geographical component, the product will be
sold currently to residents of the country and people not to the nation for now. The adoption
of the option will effectively help to channel the marketing efforts, determine the success of
the product in the country before a choice will be made as so if there is a need to reach out to
other nations (Yin & Ritter2019). The demographic feature will be used as a means of
targeting members of a particular age bracket and gender. The Big Bite snack will target
members of both genders, male and female. However, for the purpose of sale and efficiency,
the target age group will be people between the ages of 15 and 30 (Yin & Ritter2019). The
above-noted target market is worth pursuing based these are the set of individuals that would
be naturally interested in the purchase of the Big Bite product and a focus on the will
generate the much need income for the company (Dolnicar Grün & Leisch,2018). Focus on
the sales of the Big Bite to the residence of the country will increase the efficiency and
transaction of the product since its start-up. It has not attained the full competitive stage

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needed to operation internationally. The decision to target males and females between the
ages of 15 and 30 is also vital to the success and profiting of the Big Bite in the market.
These individuals are the biggest buyers of snacks in the country. Recently, these individuals
are now focused on eating healthy and balanced diet. The Big Bite has taken this recent need
of the market into consideration. Hence, the product is expected to be well received and
purchased by the market.
Each of the Big Bite sausage rolls will be sold at the price of 17 AUD. The price is
considered a fair and an accurate feature of the component of our target market based on
several reasons. First, the Big Bite is a new business that is introduced. To survive the initial
phase of the product arrival, it has to be priced slightly lower than leading firms which goes
for about 20 -25 AUD (Warner Bittner& Ashman 2017). The price of 17 AUD would also
very attractive to members of the target market who are between the ages of 15 and 30. These
are young people with a lot of prevailing needs. Therefore if the price is set at 17 AUD each,
purchasing the Big Bite sausage would not place a huge strain on these daily financial
requirements. The price theory notes that the determination of the amount charged for goods
or services is based on the relationship between demand and supply. The demand is seen as a
means of classifying the individuals who want to buy the product while the supply stands of
the seller of the product (Frahm 2018). If the price is deemed too high beyond the capacity of
the buyers, there would be no demand and when there is no demand there would be no
supply. No supply equals no sales a state of no profitability (Gallego & Topaloglu 2019). The
price charged for the sale of Big Bite is based on the financial capacity of the target market.
This action will generate the required demand which will also be matched with the
corresponding level of supply.

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The creation and launch of new products in the market require several detailed steps. First,
there is a need to effectively identify the target market, and then determine the needs of the
constituent of this market. Once this is done, the selling company has to also determine the
right price for which then product would be sold to the members of this market. A
determination of the most accurate price will consist of an analysis of the financial capacity
of the target, the price accepted by competitors for similar products, and also of overall sales
goal and strategy of the firm A combination of these efforts would lead to the attainment of a
successful launch for a product in a new market.
References
Dolnicar, S., Grün, B., & Leisch, F. (2018). Market segmentation analysis. In Market
Segmentation Analysis (pp. 11-22). Springer, Singapore.
Eades, K. M., & Thornhill, D. (2017). PepsiCo, Inc.: Cost Of Capital. Darden Business
Publishing Cases.
Frahm, G. (2018). Arbitrage Pricing Theory in Ergodic Markets. International Journal
of Theoretical and Applied Finance, 21(05), 1850036.
Gallego, G., & Topaloglu, H. (2019). Basic pricing theory. In Revenue Management
and Pricing Analytics (pp. 207-244). Springer, New York, NY.
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Warner, R. D., Bittner, E. P., & Ashman, H. (2017). What is meat in Australia?. Animal
Frontiers, 7(4),
48-52.
Yin, Q. E., & Ritter, J. R. (2019). The speed of adjustment to the target market value leverage
is slower than you think. Journal of Financial and Quantitative Analysis, 1-66.