Pepsi Analysis Report - Marketing in Australian Market

This report provides a comprehensive analysis of PepsiCo's marketing performance within the Australian soft drink market. It begins with an executive summary and introduction, followed by a situational analysis, including macro-environmental factors like competition, economic conditions, political stability, legal and regulatory frameworks, technological advancements, and socio-cultural influences. The micro-environmental analysis delves into market analysis, competitor reviews (focusing on Coca-Cola), customer landscapes, and market segmentation. The report identifies key market segments, namely young people and adults, and offers strategic recommendations to enhance PepsiCo's market position, such as product variation and leveraging technology for marketing. The conclusion emphasizes the need for strategic adjustments to compete effectively, particularly against Coca-Cola. The report is supported by references and appendices containing additional data.

Running head: PEPSI ANALYSIS
PEPSI ANALYSIS
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Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................3
Situational Analysis...................................................................................................................3
Macro-Environmental Analysis..............................................................................................3
Competitive.........................................................................................................................3
Economic............................................................................................................................3
Political...............................................................................................................................4
Legal & Regulatory............................................................................................................4
Technological......................................................................................................................4
Socio-Cultural.....................................................................................................................4
Micro-Environmental Analysis..............................................................................................4
Market Analysis..................................................................................................................4
Competitor Review.............................................................................................................5
Customer Landscape...........................................................................................................5
Market Segmentation..............................................................................................................0
Targeting & Recommendations..............................................................................................0
Segment 1: young people....................................................................................................0
Segment 2: adults................................................................................................................0
Recommendation:...............................................................................................................0
Conclusion..................................................................................................................................0
References..................................................................................................................................1
Appendices.................................................................................................................................2

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Executive Summary
The aim of this report is to discuss the business situation of PepsiCo in the Australian market.
The situational analysis has been done macro-environmental analysis through competitive,
economic, political, legal & regulatory, technological and socio-cultural factors. Micro-
environmental analysis has been done through market analysis, competitor review, customer
landscape and market segmentation of the company. The report concludes with
recommendation for the company’s growth.

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Introduction
The aim of this paper is to discuss the Marketing report of the soft-drink market in Australia
focussing PepsiCo, Inc. Pepsi is a product manufactured by PepsiCo Inc. which is a multi-
national food and Beverage Corporation that has headquarter in New York. Pepsi has interest
in manufacturing comma distribution and marketing of beverages. PepsiCo was established in
the year 1965 with merging Pepsi Cola Company and Frito-Lay (Pepsico.com.au, 2019).
Since then PepsiCo has expanded its product with Pepsi to a broad range of beverage brand.
Ramon Laguarta is the chief executive of this company. Pepsi is worth around 70 billion
dollar and flourished under the leadership of Indra Nooyi.
Situational Analysis
This section relates the situation that the company PepsiCo Inc. East facing and what factors
are effective for its growth and development.
Macro-Environmental Analysis
This explains the effect of external environment on the operation of the company.
Competitive
Coke is the most important competitor of PepsiCo Inc. As a global brand this company has
two-phase pressure of the competitors in all over the world where ever it is doing its business.
Along with the other Global competitors like coke and Red Bull it has to face strong
competition with the local brands found in the markets. Therefore the company needs to
enhance the brand image in the minds of the customers so that they can first choose this
brand over the other.
Economic
In Australia PepsiCo gets high exposure because of the standard economics and its stability.
The country’s financial situation is growing and showing positive response towards the

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foreign investment. The standard of living is high therefore affordability of people is high.
The high GDP rate and low taxation policy has helped PepsiCo to flourish here.
Political
The political situation of Australia is stable and the government has less issues of corruption.
The government through their legal support and affordable tax policies have helped the
company to flourish.
Legal & Regulatory
The political situation of Australia is stable and the government has less issues of corruption.
The government through their legal support and affordable tax policies have helped the
company to flourish.
Technological
The Government of Australia invests highly in the technological sector therefore the
company can easily use automation process in the manufacturing of products. In addition to
this the customer care services are also automated which has reduced time consumption for
production and giving services.
Socio-Cultural
As mentioned before, the standard of living of Australians are higher than any other Asian
countries therefore they can easily afford the products from PepsiCo. Moreover the demand
for soft drinks is also high which has given PepsiCo a huge exposure in this market
(Goldsteinresearch.com, 2019).
Micro-Environmental Analysis
This part will be discussing the key market variables and industry variables with the
competitor analysis and customers in Australian market.

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Market Analysis
PepsiCo, Inc. faces high competition by Coca-Cola and Red-Bull as these hold huge market
share in the Australian market. PepsiCo, Inc. holds 47% market share of 4 billion USD soft
drink market of Australia. The competition has created threat for this company and the future
prediction states that the company will be losing its position to the Coca-Cola, the biggest
competitor of PepsiCo, Inc.
Competitor Review
Competitor Type of
competitor
Market share Key strategies Industry report
Coca-Cola Intense 47% In Australia Coca-
Cola gets
advantage of its
brand name, fame
and loyal customer
in the country due
to its unique
flavour and
affordability
(Ibisworld.com.au,
2019).
Coca-Cola has
variation in
products more
than PepsiCo.
It has more
brans fame and
customer base.
Customer Landscape
Who is in the market and extent of their
power in market
PepsiCo’s customers are retail chains, small
shops, independent customer’s mainly young
people and children. They have power to change
the opinion about brand and show brand
preference on the basis of quality.

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What do they buy? Mainly buy Pepsi Next that refreshes and
enhances beverage tastes
Why do they buy? They buy to meet the necessity and find best
quality beverage yet in lower price.
Who is involved in the buying? The tourists from other region and local people
go to nearby stores or retail chain to buy this
product.
How do they buy? People buy from retail or online stores
When do they buy? Once or twice a week
Where do they buy? Retail or online stores along with departmental
stores
What are the customers’ ‘hot’ and ‘cold’
spots?
Hot spots are local interpretation and cold spots
are negative version of products

Running head: PEPSI ANALYSIS
Market Segmentation
Market Segments
Segment Description of Segment Demographic Geographic Behavioural Psychographic Segment
Attractivenes
s
Young
generation
More brand loyalty 18-30 Urban Heavy user lifestyle More
competition
among brands
with more
young
customers
Adults Quality of beverage 30-50 Urban Light users Lifestyle High standard
of life affords
high expense

Running head: PEPSI ANALYSIS
Targeting & Recommendations
Segment 1: young people
PepsiCo is trying to attract more young from school or college students to be trendy and
stylish. This will enhance growth, sales and profitability (Pepsico.com.au, 2019).
Segment 2: adults
PepsiCo tries to reach these customer through high quality offerings and brand loyalty that
may affect positively in the Sales growth.
Recommendation:
 The company must enhance product variation through localisation
 It must utilise technology more in the marketing section and attract young customers
through vouchers and rewards.
Conclusion
Therefore, it can be concluded that PepsiCo is losing its ground in the competition with Coca-
Cola and Asahi Holdings hence need to bring changes in the marketing and product variation.

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References
Goldsteinresearch.com. (2019). Retrieved from
https://www.goldsteinresearch.com/report/australia-soft-drink-industry-market-
analysis
Ibisworld.com.au. (2019). Soft Drink Manufacturing – Australia Industry Report |
IBISWorld. Retrieved from https://www.ibisworld.com.au/industry-trends/market-
research-reports/manufacturing/beverage-tobacco-product/soft-drink-
manufacturing.html
Pepsico.com.au. (2019). PepsiCo Australia & New Zealand | PepsiCo.com.au. Retrieved from
http://www.pepsico.com.au/

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Appendices
[Place [relevant] additional tables/figures/graphs in the appendix and please don’t forget to refer
them in the text - LTU Harvard Referencing is required. See library website for details.]

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