Pepsi Co: Detailed Analysis of Product Lifecycle and Strategies

This report provides a comprehensive analysis of PepsiCo's product lifecycle management, examining various products and services within its portfolio, including Diet Pepsi and Pepsi Black. It evaluates the different stages of the product lifecycle—introduction, growth, maturity, and decline—and assesses the strategic approaches required to effectively manage each stage. The report explores how PepsiCo can optimize product performance through tailored marketing strategies, sub-brand development, and pricing strategies. It also delves into the challenges of managing cross-cultural global issues and adapting to changing consumer preferences. The analysis covers key aspects such as the introductory stage of Pepsi Black, the growth stage of Diet Pepsi, and the strategies employed to extend the maturity stage, including product modifications and competitive pricing. The report concludes with an overview of the decline stage and strategies for cost reduction and adaptation to market changes. The report provides insights into the competitive landscape, the importance of brand management, and the dynamic nature of product lifecycles within the food and beverage industry.

PSD (MODIFICATIONS)

Table of Contents
An overview of the different products and services offered in their company’s
portfolio.....................................................................................................................3
An evaluation of a range of the products and services in relation to their lifecycle
stage. .......................................................................................................................4
An evaluation of how to manage the lifecycle stages and the choice of appropriate
product .....................................................................................................................5
Reflective statement – reflecting on the creative process, the group dynamics and
the presentation/pitch ..............................................................................................8
CONCLUSION............................................................................................................12
REFERENCES...........................................................................................................14

PART B
An introduction to the organization and partner companies
Pepsi Co is one of the leading manufacturers of food and beverage products which are
distributed in more than 200 countries. It employs more than 274,000 people and earned
revenue of over £64 billion in 2018 (Annual Report, 2018). Its business process started over a
century ago when it was formed as a pharmaceutical solution for digestion issues of People. It
adopted an aggressive and diversification approach in market where, rather than
concentrating on single product, it developed multiple strong brands with objectives of better
serving smaller but profitable market niches. In addition the firm used aggressive merger and
acquisition policy to drive its growth and several such merger include the one in 1965 where
it acquired Frito-Lays brand for entering the food market.
An overview of the different products and services offered in their company’s portfolio.
It has one of the most effective new product development processes which are backed
by its diversity strategy in product line (Brassington and Pettitt, 2012). Some of its food range
includes flavoured chips, snakes, rice, pasta and dairy. In the beverage line it has strong
brands like Pepsi, Diet Pepsi, Mountain Dew and Sting brands. It is selling one of the top
rated juice brands under Tropicana having flavours of Mango, Apple and others. In addition
to its tradition rival of Coke the firm has been competing with larger firms like Kraft foods,
Nestle, and a number of others.
An evaluation of a range of the products and services in relation to their lifecycle stage.

[Source; https://elokmagozian.wordpress.com/product-life-cycle-stages-and-strategies/,
Accessed on 28 Nov, 2019].
The product lifecycle management is a strategic tool which measures the current stage of
product among the four different stages (Cooper, 2011). It deals with detailing and accessing
strategies that are needed to improve the product performance by identification of their stage.
Diet Pepsi is currently occupying growth stage in business that in its lifecycle that delivers its
greater sales and growing profit margin along with strong market competition. It followed the
footsteps of successful experiment by Diet Coke and the early adopters for the Diet Pepsi are
consumer groups who put health and taste as priority of their consumption. In order to
increase its growth duration and preventing it to enter the maturity stage, firm needs to
creates additional sub-brands which indicate strong performance. For examples, the company
has to create something completely new, a new product. The sub-brand allows us to add
something to the market. The company personalizes the products in such a way that the needs
of the consumer are met. Additionally the marketing strategy for the firm requires to be
adjusted for making its brand appeal to customers. At this growth stage, it does not require
great deal of investment for the purpose of increasing its brand value. In addition the firm can
be benefited by creating s strong marketing campaign which can support its current
distribution network and increasing the production level.

One of the most recent brand launch by Pepsi is a beverage drink called Pepsi Black. It has
been an efficient result of long term product research and analysis leading to high quality
drink for consumers and business markets alike. This drink is said to be currently occupying
introductory stage of its lifecycle that requires selected marketing to build the brand image.
At this stage Pepsi black is expected to undertake higher marketing cost due to its similarity
for the commercialization stage. It might require the firm creating a number of points of
parity while emphasizing on points of differences for the introductory product. In order to
reduce the direction of this stage, the marketing team needs to adopt clear relevance of
product to the unique consumer requirement and by educating them for tis benefit.
An evaluation of how to manage the lifecycle stages and the choice of appropriate product
Product life-cycle staged carries out after the development from introduction to the
end of product. Additionally, PLC termed out as one of beneficial tool that assist to marketers
to manage the stage of acceptance of product and success in the marketplace. Therefore,
product life-cycle stages are defined as are-:
Introductory stage of Pepsi Black
The new products successfully use corporate identity and related with core product
identity for wider acceptability in case of Pepsi Black. In case of Pepsi black initial support
and leverage can be extended to support its uplift. It is quite similar to last product
development stage where manufacturing and marketing cost reaches its peak to deliver the
spending done on research and development. This is a take-off stage which consumes more
resources and work required to be carried in accordance with set in strategic plan. It
marketing potential require continues and repeated reminder of consumer with the help of
new and different channels of communication.
Moreover, initial strategies should include free sampling, media advertisement,
personal relation and strong below the line marketing. This stage is not ideal and manager
tries their best to move further and quicker to the new stage of growth where return increases
with controlled cost performance. Low profits, higher production cost and greater marketing
expenses are the main characteristics of this stage of products. Educating people, and offering
those benefits along with raising awareness of products are the key areas of interest for
management for Pepsi Black during this stage. Another reason for managers to be concerned
in large companies like Pepsi is to deal with cross cultural global issues associated with
customers and societies. Pre-introduction stage is the time for accessing financial planning of

Pepsi black and to estimates its cost and benefits during the said stage of development. Its
current facilities for distribution and market channels are usefully applied to make a better
impact on business.
It is the initial stage and quite similar to commercialisation or last stage of new
product development process. In order to generate the initial awareness and trial of product
within the market and to know about acceptance, supply chains are needed to deliver the
product to consumers. At this stage, the entity generates low amount of the profitability as
they needs to invest much amount in cost of research and development. Also, marking needs
to be conducted to aware the public about the changes in existing commodities. Therefore,
Pepsi bring changes to existing commodity by creating diet Pepsi and to aware customer lot
of promotional activities must be undertaken. To carry out this, Pepsi co. has undertaken
process as involving potential customers in terms to its value and benefits, creating awareness
and to get potential customers to try the product and services.
Additionally, quoted enterprise has undertaken internet and promotional programme
such as distributing coupons and samples to commodities. Therefore, pricing strategies will
be chosen at this stage as Pepsi has taken strategy as penetration pricing to launch diet Pepsi
successfully in market. It is effective strategy as this charge low prices initially from
customer and this encourage many customers to commodities.
Growth stage of Diet Pepsi-:
As the diet Pepsi entered growth stage, meaning the product had acquired market
acceptability. It starts to pose consistent sales value and relevant market share with the direct
attack from competitors. At times during the growth stage firm increases investment on
product for greater promotional efforts that targets specific benefits for firm. This is the ideal
stage of lifecycle and certainly marketing managers want to extend its duration by continuing
investment and re-positioning. It uses major benefits for customer where healthy product
consumption variable are applied to make the more effective. Competitive offering and with
the value aspects of consumer life and relating them to their basic needs ensure its better
operational integration. Most of the profits associated with diet Pepsi are to be made during
this stage, therefore requires dedicated brand team to oversee development during product
lifecycle stages.
The sales of a product are seen to be reaching the highest level during this stage.
Furthermore, it is justified for operational success to increase the distribution arrangement of

this product for the wider each across the marketplace (Cooper and Edgett, 2009). In
addition, Pepsi uses exclusive franchise and contract manufacturing bottling agreement. It is
the more suitable time to increase such contracts being a positive indication meeting market
demand. For this reason, Pepsi looks to manage pricing in more elusive way throughout the
growth of this product. It normally charges value based and competitive pricing for diet Pepsi
due to direct competition by rival diet coke holding major share. However, in certain market
where it has lower competition the firm holds a higher price line with main task of improving
revenue areas and capturing greater market share. On a contrary account other main
characteristics applicable at this stage is improving product quality and making more sub-
brand to implement diversification.
Additional features and similar variants can increase niches credibility and improves
the demand of their product in market. Conversely a shift for the marketing message and
changing direction of branding may result in high rate of trial customers. It is not fair to say,
considering re-position but revitalizing image and branding helps share new image in an
utmost attempt for prolonging the growth stage and utilizing it before it reaches maturity.
Maturity stage-:
At this stage, the sale of diet Pepsi is beginning to level off. This happens due to
number of the potential customers are decline because of many competitors enters the market
with same commodities (Cooper and Edgett, 2009). It indicates that product has entered into
maturity stage of life cycle. In order to remain competitive in the maturity stage, the quoted
enterprise has undertaken the strategies that puts major focus on value and benefits of product
offerings. Pepsi has decrease the price of mature commodities to counter the competition with
the rivalries in market. In the current era, there are lot of consumer in market who are health
conscious so firm has decided to lower down the content of sugar and to mix some organic
ingredient without compromising the taste of Diet Pepsi. They have undertaken this step in
terms to cope up with number of rivalries in market.
Thus, company has developed the varied strategies to extend the maturity stage of the
commodities with aim to remain competitive in market (Cooper and Edgett, 2009). Thus,
manufactures of diet Pepsi has decided to bring the changes as modifying the commodities,
such as changing the size of packaging, flavours, colours and quality as this all can aids to
extend the maturity stage of product. However, consumer thought the new packages made the

quality of product more advanced. As a result, Pepsi resumed the use of original Tropicana
carton.
Decline stage-:
This is the stage when sales of Diet Pepsi continue to drop to lower levels that means
product has entered the decline stage of product life cycle. Therefore, the common
components of the decline stages are as changes in the preferences of customers,
advancement in technologies and various alternative that aids to satisfy the needs of customer
that can lead to decrease the demand for product. At this stage, marketer should adapt their
marketing strategies to the external changes within the marketplace.
In the current era, interest of consumer in healthier lifestyle, sales of Pepsi have
showed the signs of slowdown in the immediate future. Thus, cost reduction is the key at this
stage as this assist the brand to remain profitable in generating fewer sales (Monge &
contraction, 2003). These all are the factors that leverage the economies of scale and also
minimise the cost of commodities to remain in market. In addition to this, marketing in the
decline stage is often minimal and this also targeted at the loyal customers and price also get
reduced. To not to lose market share this firm has started to make some profit by switching to
less expensive process of production that might give them competitive advancement (Cooper
and Edgett, 2009). Henceforth, the commodities now return back to selective distribution to
put their more focus efforts on just the remaining outlets that generate more amount of
profitability on Pepsi. In order to save the money, the company taken the steps to reduce their
promotional expenditures on the commodities. There are number of the firms that decide the
best strategies to bring modification in the product in the maturity stage to avoid entering the
decline stage (Cooper and Edgett, 2009). Henceforth, the chosen enterprise must adopt the
suitable plan of action that aids to cope up with the decline stage and must put efforts to
remain competitive in market.
Reflective statement – reflecting on the creative process, the group dynamics and the
presentation/pitch
Reflective Statement
In the part, the tasks were divided among the members in order to have better control and
outcome. Firstly, the improved way to create new product was done which comprised strong
result of marketing research outcomes. The details of product were selected on basis of focus
groups that saw formation of details emerging from different outcome. As we know the 8

processes of NPD are: idea generation, idea screening, concept testing, business analysis,
product development, test marketing, commercialisation and review of market performance.
During each stage of the development a logical sequence of tasks was followed whereby
before commencing new stage objectives in previous one were achieved. Idea generation was
taken as starting point that saw refining their details from accumulated ideas to select to most
attractive one. I have conducted the whole product life cycle of Pepsi co with team members.
They have helped me a lot during the entire task. At the introduction stage, we took the
sample of diet Pepsi and distributed in nearby place to target the potential customer. To
undertake better promotion, we have distributed the task among team members and carried
out the strategy that has helped us to reach potential targets.
During the screen stage qualitative approach of screening was used which tests a
number of different ideas which implies the process in cost efficient way. In the concept
development model the pay back and ROI approaches were specifically utilized to make a
better impact on finding the right time for investment return. In addition, internal evaluation
to match its relation with product portfolio relationship was captured during this process.
Than reaching the marketing strategy stage, it required to use current policy of firm’s low
cost and higher value. At this stage, I had framed out strategy with few members to testing
the taste of the commodities and to undertake internal evaluation process of commodities.
This has helped me to know about the areas that could affect the sales of Diet Pepsi. With the
help of this approach, I have undertaken the steps that could improve the product in more
advanced manner.
Being in team, we have undertaken the market development approach and this has
helped me to know the taste and preferences of customers. This has helped me to give a
product a new taste that can aids to enhance brand image of market. Market development
approach was used to offer new customer a new product taste. It was followed by the
business analysis framework which was characterized by cost and benefit analysis featuring
production of units and sales forecasting for upcoming financial years. Moreover, test
marketing was done for product across the London areas with specific locations including
road shows and retailing points. Results from test marketing were observed and analysed in
order to propose full scale production at its last stage.
I had to work mostly on the financial areas of development framework. I contributed
in the stage of idea screening and doing the business analysis to work out cost benefit
analysis. I carried out most work on return on investment monitoring and viewing how

various elements of financial nature are justified. In the business case the breakeven analysis
was worked out and projected sales for one year were coined to show financial impact.
Additionally, I presented the last phase of the development process that enable me
showing business case elaborating product development and the test marketing case and
concluding the commercialization part. The team followed a task base approach for its
activities that show distribution among members (Robbins Coulter, 2014). The team roles
were divided in line prescribed by Belbin, as the negotiator will act on behalf of others for
organize the task. I was given the role of team leaders who had to coordinate different task
and apply them across to members. A complete finisher role was also appointed to the
members as they look to improve coordination across the tasks.
In order to enhance the sales of the enterprise we have undertaken the diversification
techniques and brand management approach that has helped us to enhance the volume of
sales and get the better position within market. In order to enhance the working of the
enterprise, I have undertaken diversification techniques to create brand commitment with
help of ongoing advertisement of brand and company brands. For this, I have undertaken the
development programmes and put the consideration over the high product quality of
commodities. Thus, I can stated that with help of creating emotions of warmth, devotion and
belonging to a product a firm can become able to associate brand to human personalities.
The team approached their task in order to solve particular issues by using the process
of being organized. They did their research and segmented multiple tasks into smaller
sequences. This segmentation of task enables greater understanding of concerned area for
their deliver. Team performed their task with coordinated approach by working with
relationship and taking on improved communication among themselves for timely
completion. However, the team organized itself on basis of relevant skills as I have better
skills in finance to take over financial evaluation part.
Therefore, to bring out the effective working in the chosen enterprise this is crucial to
develop skills of employees. As I have analysed that the number of the employees who are
not properly skilled and this is affecting the entire working of the enterprise in huge aspect.
For this, development practices are needed to be taken so that each this can be developed in
effective way.
Similarly, better finisher was given the chance to conclude their proceeding.
Conversely in the planning part it was important to agree on details and scope of

development task. In addition, breaking these tasks into smaller and smaller chunks helped
acquire the right sources of data. Relevant time was given to person who administers and
process research in phase selection of achievement. Information needs and resources
requirement were applied in collection to deliver achievable standards of business. The team
member has displayed higher level of interaction among them. They organized weekly
meeting and shown greater trust by complimenting their strengths for business activities. The
members contributed to minimizing the impact of conflict among them whereby they take
clear actions making direct progress. The team has shown greater cohesion and coordination
to develop their roles of time which was fruitful in business planning.
The group discussion certainly triggered more creativity whereby measures of
improving their process were consulted (Monge & contraction, 2003). Creative solutions
were specifically discussed particularly for formation of content and delivering the pitch.
Resources were explored of creative nature to make the content more appealing for audience.
The team worked as one unit during the duration of task and shared important ideas for with
each other making contribution on distinction analysis. Motivation strategies were used by
rewarding members with lunch for the best contribution and performance.
The final presentation was meeting top standards due to its quality content supported with
relevant information and the best model of delivery. It created sufficient interest for audience
who took part in analysis of information and taken given clear feedback during and post
presentation. Finally, with the hindsight the delivery of presentation should have been better
as at times some members reflected lack of confidence in communicating and relating the
idea to the bigger picture.
Hereby, I have learnt that no matter how successful a company is but they have to
manage the life cycles of the existing products to ensure about the success in the future. After
taking this course, I definitely switched towards to products due to personal taste and wanting
to have the latest and best test of the commodities. The product life cycle has provided the
guidance ti business as it progresses the commodities from introduction through growth and
maturity to decline.
Recommendations-
On the basis of above report, the suggestive measure has been given to enhance the
sales volume of the enterprise to earn high amount of profitability and these are defined as-:

 PepsiCo should focus over more sustainable approach of food system that can aid to
meet needs of human in both aspects with nutrition and enjoyment. This can aids to
increase the consumer demand for healthier food and beverage options.
 The quoted enterprise should take the initiatives that can assist to enhance the
profitability to enterprise by continually looking over to method of innovation that can
attract the large pool of customers.
 PepsiCo has wide number of opportunities to improve themselves in market. They can
undertake the approach as to take entry into the emerging markets in which the
consumption of beverage and snaking is continually growing. By successfully
investing into it, the entity can able to enhance their revenue and market share
drastically.
 PepsiCo should reduce their dependency on other retail supermarket chains as they
are generating 13% of the profitability by sales in Walmart. Thus, the chosen firm is
with the small profit margins.
 PepsiCo should take steps towards to provide training programmes to all the
employees so that they can be able to enhance their skill and able to perform their
future practices in crucial manner.
CONCLUSION
This assignment is a based on analysis of product and services and how they
contribute towards organizational success. It discusses in greater length a number of different
accounts of Pepsi and showcases the management of its products over the life cycle
development. It presents key ideas and principles, useful for a rapid new product
development and discusses how its main stages are administered for making the most out of
its efforts. It continues to in the second part an integrated assessment of development
lifecycle and analyses the useful strategies to make most out of each stage. Finally it compiles
are reflective statement that looks at the fundamental actions required to compile and deliver
a quality presentation for selected audience.

REFERENCES
Book & Journal
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Pearson. Harlow.
COOPER, R.G. (2011) Winning at New Products: Creating Value through Innovation. 4th
Ed. New York: Basic Books.
COOPER, R.G. and EDGETT, S.J. (2009) Generating Breakthrough New Product Ideas:
Feeding the Innovation Funnel. Ontario: Product Development Institute.
Monge, P.R., & Contractor, N.S. (2003). Theories of communication networks. New York:
Oxford University Press.
Robbins, S. and Coulter, M. (2014). Management. 12th ed. Pearson Education.
Ridler J, 2018. UK Seventh-highest consumer of soft drinks. Food Manufacture
Fleming M, 2018. Diet Coke sales overtake classic Coke as the soft drinks giant navigates the
sugar tax. Marketingweek
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