Since its introduction to France in the 1960's, PEPSICO has been steadily increasing its turnover on the French soil. The company has managed to integrate and carve a niche for itself in the market for soft drink. This market is valued at over EUR 4 millions. In spite of the rapid growth PEPSICO still presents a few opportunities for growth and development. The soft drinks sector is growing fast and a positive growth of about 5.4% has been observed from 1999 to 2002.
[...] In addition to the strong American competition provided by Coca Cola, the market is also divided between British companies like Virgin Cola Classic Cola and Spanish companies like Gold Cola etc. In addition, other threats are substitute products such as flavored waters which are becoming available on the market and whose business depends heavily on communication. These products are favored by health conscious customers as they have fewer calories. These drinks are often criticized as prolonged consumption can lead to weight gain of the consumer. Thus, PEPSICO is therefore facing negative publicity as an unhealthy product. [...]
[...] loyalty to certain brands person per year No specific profile of customer Purchasing power achieved without involvement Distribution Analysis Market estimated at 4.5 billion Rise of the hard-discount worrying euros through all channels, manufacturers SARB including 2.8 for GMS A multi-channel distribution dominated by large retailers The SARB drinks are the most dynamic circuit CHR Structure of competition High Competition: Several companies in the market like Coca-Cola and Pepsi. Competition from other alternative products such as: flavored water Economic Environment Rising costs of production and marketing Rising commodity prices Technological Environment Constant innovation in the composition of products and packaging Socio-demographic / cultural Changes in the French culture Nutritional image increasingly negative Current consumption trends: slimming, health and nutrition, the cosmetics food, exotic, nomadic . [...]
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