With an increasingly high turnover from the establishment on French soil since the 60s, PEPSICO France has managed to integrate and make a place in the market for soft drinks (BRSA). This market, which is estimated at over 4 million Euros, offers PEPSICO several opportunities. These elements are conducive to its development and growth. The BRSA sector observed a very positive growth from 1999 to 2002.
The growth was estimated at 5.4%.This market is divided into several segments, with drinks such as fruit drinks, fruit juices, soft drinks, tonics, and tea. It is therefore essential for companies to innovate by offering different products to consumers and innovative packaging. This factor can play against PEPSICO and pose a serious threat. Though this market is more profitable in the summer, the French consume about 18 billion liters of cola a year.
In addition, purchases of soft drinks are not considered involved purchases since this is not a heavy investment. This factor is quite favorable for businesses, because the obstacle of price can be easily avoided. One of the opportunities facing PEPSICO is that the consumers do not respond to a specific profile. The revenue earned from to the distribution of the brand through Supermarkets and Hypermarkets is over 60% of the total revenue, as it makes these drinks easily accessible.
Tags: PEPSICO France, BRSA, innovative packaging, supermarkets and hypermarkets, specific profile
[...] We notice two different types of consumers: the brand loyal customer who buys the product for its taste and image (Coca), and the customer who is not driven by brand loyalty and is tempted only by the taste (Pepsi). In addition to the strong competition with the American company Coca Cola, the market is divided within the products in the BRSA, and other British (Virgin Cola Classic Cola) and Spanish (Gold Cola) companies. In addition, other threats are emerging on the market. These are from substitute products such as flavored waters, whose businesses rely heavily on communication. These products are healthier for consumers and have fewer calories! [...]
[...] Through this SWOT analysis of the company PEPSICO, we realize that in addition to a strong demand for innovation, the market also imposes a high promotional investment, because though consumers do not consider soft drinks a large investment, it is necessary for the company to introduce hard-hitting advertising campaigns. In addition, such innovation will also help withstand the competition that threatens to reduce the market size of the company. Indeed, its greatest competitor Coca-Cola, reached $ 21 billion in sales in 2004 with 1.4 in France, while that of PepsiCo in the same region was only 500 million Euros. [...]
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