International Marketing Report: PepsiCo's Global Strategy Analysis

This report delves into the realm of international marketing, focusing on the strategies and challenges faced by companies like PepsiCo in expanding their global presence. It begins by defining international marketing and outlining its key concepts, including the scope of global markets and the various routes available for market entry, such as direct exporting, licensing, and joint ventures. The report then explores the criteria for selecting international markets, emphasizing factors like GDP growth and competition analysis. It further examines different market entry strategies, including joint ventures, franchising, and mergers, evaluating their advantages and disadvantages. A significant portion of the report is dedicated to the global and local debate, contrasting the approaches required for global and local market operations. Additionally, it analyzes the marketing mix in an international context, considering how product, pricing, promotion, and distribution strategies differ across international markets. Finally, the report assesses various approaches to international marketing and compares home and international orientations, providing insights into competitor analysis and the implications of each approach. The report concludes by summarizing the key findings and offering recommendations for effective international marketing strategies.

INTERNATIONAL MARKETING

Contents
INTRODUCTION...............................................................................................................................3
LO 1......................................................................................................................................................3
P 1 Scope and key concepts of international marketing....................................................................3
P 2 Routes for entering market.........................................................................................................4
LO 2......................................................................................................................................................4
P3 Selection criteria for entering international market.....................................................................4
P4 Market entry strategies................................................................................................................5
LO 3......................................................................................................................................................6
P5- Overview of key arguments in the global and local debate.........................................................6
P6 – how product, pricing, promotional and distribution approaches are different on international
market...............................................................................................................................................6
LO 4......................................................................................................................................................7
P7 Analyze the various and different approaches of international marketing...................................7
P 8 Compare home and international orientation so that the ways to assess the competitors
outlines the implication of each approach........................................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES..................................................................................................................................10

INTRODUCTION
International Marketing is defined as the performance of business activities designed
to plan, price, promote, and direct the flow of a company's goods and services to consumers
or users in more than one nation for a profit. Pepsi is a carbonated soft drink manufactured by
PepsiCo. Originally created and developed in 1893 by Caleb Bradham and introduced as
Brad's Drink, it was renamed as Pepsi-Cola in 1898, and then shortened to Pepsi in 1961.
This report contains issues such as Scope and key concepts of international marketing. Routes
to enter in market, criteria of selection for dealing internationally. Strategies to enter in
market. Key arguments on local and international level. Marketing mix in international
market. Different approaches of international market and comparison between home and
international orientation.
LO 1
P 1 Scope and key concepts of international marketing
International Marketing leads to peace among nations-
All the activities which is linked and sourced to bring development in the sector of
production and marketing. Key working of marketing on an international level states that
people from all over the world participate in working together as venture. Pepsi indulge in
interacting with their employees so that they can get face to face interaction with them and
judge them as per their skills and behaviour as that will help them to make their path to
commerce and trade. Apart from that with this concept management of company is able to
develop their relationship and mutual understanding with others.
Global Markets reduce risk and open opportunities-
Scope of marketing on an international level increases when market observes that
more companies are entering into it in order to maintain and operate their business. With the
help of dealing on global level companies such as Pepsi can claim the benefit of
manufacturing their products in other different countries so that they can turn out to be cost
effective. On the basis of that company sets up their base of export and import. For instance,
current manufacturing produce of most companies are in China. It is difficult but many of
them has been able to manage their business from another country (Pedada, Arunachalam and
Dass, 2019).
Imports-

It is one of the concepts of dealing in the aspect of international marketing and it is
considered to be one of the easiest. As they believe that they have to enter from one country
and sell it in their home market. This has been successful for Pepsi because with the help of
their marketing activities their demand in other markets are high. As per the nationality they
are dealing in they made changes in the activities of marketing and products.
Exports-
This concept is totally opposite to importing. As this will help them to form their base
of operations in other markets. For that Pepsi has hired celebrities to endorse their brand so
that they spread awareness for their product and export it to that country through which they
will be able to capture more share (Jiménez-Asenjo and Filipescu, 2019).
P 2 Routes for entering market
The main rationale behind entering and dealing in international market is that they
will be able to capture more share which will help them to generate more profit. There are
different and various options available to Pepsi whenever they want to expand their
operations by entering in other markets.
Licensing-
Pepsi can consider this option for their future expansion plans and operations as they
it is considered to be one of the most fundamental options while entering into other markets.
With the help of this option Pepsi will allow another entity to use and sell their products and
services. It will be beneficial for them when the licenser chosen by company has captured
high amount of share in market (Ibeh, Crick and Etemad, 2019).
Direct Exporting-
This is another option which Pepsi can consider while making the decision for
entering into market. With the help of this option company will have to use their own
financial resources and personnel in order to select the viable international market and export
their products there. They can also take the help of agents as they will help them to represent
in other international markets.
Piggybacking-
This method is considered to be some sort of unique as using that option they will
have to comply with strategy to sell products that are complementary with each other. This is

done to gain interest and attract more customers and will help to increase awareness of brand
in other markets.
Among all the options considered above it will be beneficial for Pepsi to choose only
that one which is beneficial for them and that is the option of direct exporting their products.
The reason behind that is Pepsi spend high amount on their marketing and advertising and
being operating on large scale they will be able to easily export directly by putting up their
own resources. Apart from that with this they will be able to have full control of their
operations. They have established their market in many countries and that will help them to
earn their goodwill on the basis of which they can sell their products (Agwu and
Onwuegbuzie, 2018).
LO 2
P3 Selection criteria for entering international market
There are large numbers of market on international level in which companies such as
Pepsi tries to make their place but they have to analyze the opportunity that is viable for
growth which is why they follow a criteria and series of methods. They believe that this way
they will be able to enter market by making an change and get a positive response. They
evaluate different factors such as
GDP growth-
This is considered as one of the most important step to consider by the management
of Pepsi. On the basis of it company will be able to determine the ratio of profit or chances of
failure in dealing in that particular country. This is why it is important for management of
Pepsi to assess the GDP of country before finalizing the decision. For instance the pandemic
of covid-19 has created a problem for companies to expand their operations which is why it is
important that they consider those countries that have a good rate of recovery (Pegan,
Vianelli and Luca, 2020).
Competition-
This is another criteria which companies needs to consider when they are looking to
deal in new markets. Analyzing the competition in the market that is chosen will be important
as that will determine the position they will be able to achieve in that concerned market. For
instance there are countries such as USA in which competition is high for Pepsi as Coke is

established there which will make their market unstable and riskier (Asseraf, Lages and
Shoham, 2019).
P4 Market entry strategies
Strategy to enter in market is planning done by organization to promote and market
their offerings so that they can settle in the newly target market. There are various strategies
to enter which are applicable to Pepsi so that they can choose them and lead the market with
success.
Joint Venture-
This is one of the most important and considered to be a beneficial strategy to make a
place in market as it offers different sorts of benefits to brands such as Pepsi. This is mainly
an alliance or joined partnership after a mutual agreement to share the resources such as
technology, investment, skilled employees etc. so that with the help of that they both can
capture more share in market. Pepsi will have to look for that company which is ready to
come in this form of agreement and have a great reach on market. Sharing their resources in
any manner is considered to be one of their biggest advantage. On the other hand, demerit of
this point is to settle on the issue that both will follow different culture and practices and that
can create conflicts in many cases (Moon and Oh, 2017).
Franchising-
This is another strategy to enter into market and expand their operations. This will be
done by allowing the franchisee to use their name, products and services and give a return on
its which is decided by both the parties. For instance, Pepsi can make a agreement or come
into a contract with different agents or investors who would like to work with this sort of
model. Major advantage of this option is that Pepsi has been successful in establishing their
name in many countries which will help them to enter and operate in market with less risk.
Disadvantage of this method is believed to be that in order to carry the name of company and
maintain its goodwill they need to find the right franchisor. Also this will only be possible
when someone will put high amount of money which is not in condition to all. As there are
many costs which are part of business such as management fees, overhead fees etc.
Merger-
This option is a work of two companies joining together and working as a new entity
with shared resources. For instance Pepsi can find a viable organization to merge their

operations and conduct business with them if they have a good share in market. This is
because it is necessary that getting into a merger gives the company a better perspective and
more power to remove their obstacles so that they can gain better efficiency for it. They can
also claim the benefit of economies of scale and increase the production so that they can earn
more on it. Disadvantage of this option is that the variation offered by both brands that will
be merged will get over which can affect their share in business (Gomes, Sousa and Vendrell-
Herrero, 2020).
LO 3
P5- Overview of key arguments in the global and local debate
Dealing in local and global markets are totally different things on a vast level. This was same
in the case of Pepsi as they used to deal in local markets then slowly they started to expand in
other countries and in order to make it global they had to increase their network of area and
coverage as per the standards maintained in the concerned and respective country.
Global-
Global market allows companies such as Pepsi to perform well and take their
strategies so that they can make a place and conduct their business on a global level. In order
to deal in market on a global level it is important that company makes sure to look for
improving the quality as per the standard maintained there and promote their products with
strategies that are effective as they have to deal with high level of competition. Apart from
that it is important that management of company plans everything before executing into
action as this will help them to safeguard their interest and help them to retain their share
with further potential. Also it is important that resources in the area of finances are prepared
because dealing on global level requires funds to carry their activities.
Local-
In this aspect business is maintained and operated on small scale because the area of
coverage is less. In order to deal in this market it is important that company must be aware
about their competitors and style of working implemented by them so that they cannot
intimidate them. Companies operating on this level or in their initial stage such as Pepsi can
seek help from government and work with their support depending on the contribution they
made to economy. Number of competitors that Pepsi had to deal in this market at this stage
was much less than they have to do on a global level. In this market company also have less

restrictions to maintain their quality and standards at par. Even the cost of marketing and
promoting their products turns out to be less which saves a lot of money and that can be
reinvested in other viable areas (Samiee and Chirapanda, 2019).
P6 – how product, pricing, promotional and distribution approaches are different on
international market
Product-
Main product of Pepsico is Pepsi which is the leading product in market. But after the
success of product company has dealt mainly in beverages that are carbonated with some fruit
juices and go to snack items. Target audience set by company is high. Management of
company invested and ventured in business of chips and wafers with Lays, Cheetos etc. to
cater the needs of different section of people. They are making their presence felt to all of
their competitors on an international level.
Pricing-
Pricing in international market set by Pepsi is as per the demand of customers,
competition in market and standard of living maintained by customers. For that they have
offered range of sizes so that they can satisfy the needs of people. They have set categories
for their product for instance Tropicana products offered by them are targeted for people who
are conscious for their health which is why they charge more for it. For niche customers in
international market they have another brand Lipton which is set for those who maintains
their standard.
Promotion-
Promotion done by Pepsi on international market differs because they have to cover
wide area for it and in order to do that large amount of expenses are incurred so that
awareness can be spread (Katsikeas, Leonidou and Zeriti, 2019).
Distribution-
In international market management of Pepsi has to deal and maintain their
relationship with a lot of suppliers and dealers so that they can keep their shipment on track
across 200 countries as they maintain their operations there. It will help them to keep their
products available at every store there.

LO 4
Covered in PPT
CONCLUSION
From the above studies it can be concluded that in order to deal internationally it is
important to plan and then execute so that path is followed in the right direction. It is
important for them to have ample amount of funds in order to carry their activities without
interruptions. By working with legal measures and contribute to economy local companies
can have support from bodies of government in order to expand their business. Pepsi sets
their prices as per demand in the market targeted by them. They analyze their competitors in
order to remain ahead of them. There is a large amount of competition on international level
which is why it is necessary to evaluate the strategies to determine its effectiveness and work
with effective practices.
REFERENCES
Books and Journal
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy
in a digital era: Opportunities, challenges, and research directions. International Marketing
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Samiee, S. and Chirapanda, S., 2019. International marketing strategy in emerging-market
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Gomes, E., Sousa, C.M. and Vendrell-Herrero, F., 2020. International marketing agility:
conceptualization and research agenda. International Marketing Review.
Agwu, M.E. and Onwuegbuzie, H.N., 2018. Effects of international marketing environments
on entrepreneurship development. Journal of Innovation and Entrepreneurship, 7(1), pp.1-14.
Asseraf, Y., Lages, L.F. and Shoham, A., 2019. Assessing the drivers and impact of
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Pegan, G., Vianelli, D. and Luca, P.D., 2020. International Marketing Strategy. Springer.