Economic Analysis of Soft Drink Industry & Pepsi's Well-being Factors

This report provides an overview of the soft drink industry's economic impact, highlighting its significant role in job creation and contribution to national economies. It focuses on Pepsi, the second-largest soft drink manufacturer, examining the forces that impact its well-being. These forces include stiff competition from Coca-Cola, evolving consumer preferences towards healthier alternatives like fresh juices, and reputational damage from advertising controversies. The report also touches upon the financial strain caused by legal battles. Ultimately, the analysis underscores the challenges and opportunities Pepsi faces in a dynamic and competitive market landscape. Desklib offers a range of similar solved assignments and resources for students.

Running head: MARKETING AND MANAGEMENT 1
Marketing and Management
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MARKETING AND MANAGEMENT 2
What is the state of Economy for Soft drink manufacturing industry?
The soft drink industry is one of the industries that have significant impacts on the
economy of the world; not only the United States. According to the report that was filed by the
American Beverage Association (2018), the soft drinks industry leads in the Beverages Industry.
In the United States alone, the industry has employed more than 110,071 persons and
considering that most of the soft drink companies have invested beyond the United States, it is
evident that the industry has provided a source of livelihood for many people. One of the
significant economic values that the soft drink industry has on the economy of the world is
associated with the provision of job opportunities. The industry has employed many workers,
and that has provided an opportunity for the workers to contribute to the tax of their respective
countries. Report by Grand View Research (2018), shows that an upward trend is anticipated in
the soft drink industry from 2018 to 2025. The prediction has been made based on the trend that
has been observed in the last four years.
Fig 1: (https://www.grandviewresearch.com/industry-analysis/carbonated-soft-drinks-market)

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What forces impact the well-being of Pepsi?
Pepsi is the second largest soft drink manufacturer and seller in the world. The well-being
of the company is affected by several forces, and one of them is the stiff competition from Coca-
Cola. The stiff competition affects the company negatively and positively. When it comes to the
negative aspect, the company is limited from accessing the global market as it would wish. The
reason behind it is because Coca-Cola has established itself in many nations all over the world.
The competition has also impacted the well-being of Pepsi positively. Pepsi has been given the
challenge to better its products and to upgrade its strategies to be able to compete with Coca-
Cola, and that is healthy for the business.
The preferences of the customers at Pepsi have affected the well-being of the company.
Pepsi has been on the market for many years, and that has seen it win the trust of many
customers (Pratap, 2016). However, that has come along with challenges. For the years that the
company has been on the market, the preferences of the customers have gradually changed, and
that has affected the well-being of the company in one way or another. The emphasis on the
consumption of fresh juice due to the promotion of health has seen the company lose some of the
customers. The introduction of packed fruit juice has also affected the wellbeing of the company,
and this is because some of the customers have opted to purchase different products.
Tarnished reputation as a result of the Kendall Jenner advertisement is affecting the well-
being of Pepsi (Sblendorio, 2017). The engagement in legal battles drains the resources of a
company. As a result, instead of investing money into the growth of the organization, the
company uses the money to settle legal disputes. The legal battle has also made Pepsi look

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irresponsible before the eyes of the customers. When the faith of the customers is lost, the
company is adversely affected.
Links used
 https://www.ameribev.org/files/resources/united-states-summaryreport.pdf
 http://fortune.com/2018/04/26/coke-and-pepsi-cola-wars-marketing/
 https://www.grandviewresearch.com/industryanalysis/carbonated-soft-drinks-market
 www.nydailynews.com/entertainment/tv/pepsi-face-legalissues-san-francisco-police-ad-
article-1.3029467
 https://www.cheshnotes.com/factors-impacting-consumer-demand-pepsi/

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References
American Beverage Association. (2018). 2018 Economic Contribution of the Beverage Industry.
Retrieved from https://www.ameribev.org/files/resources/united-states-summary
report.pdf
Bloomberg. (2018). Coke vs. Pepsi: The Biggest Soda Rivalry in History Is in Full Swing Again.
Retrieved from http://fortune.com/2018/04/26/coke-and-pepsi-cola-wars-marketing/
Grand View Research. (2018). Carbonated Soft Drinks Market Size, Share & Trends Analysis
Report By Distribution Channel, Competitive Landscape, By Region, And Segment
Forecasts, 2018 – 2025. Retrieved from https://www.grandviewresearch.com/industry
analysis/carbonated-soft-drinks-market
Sblendorio, P. (2017). Pepsi may face legal issues with San Francisco police over Kendall
Jenner ad. Retrieved from www.nydailynews.com/entertainment/tv/pepsi-face-legal
issues-san-Francisco-police-ad-article-1.3029467
Pratap, A. (2016). Factors Impacting the Consumer Demand for Pepsi. Retrieved from
https://www.cheshnotes.com/factors-impacting-consumer-demand-pepsi/