4. 1. Our Industry Pepsi operate as producer in the Fast Moving Consumer Goods (FMCG) Industry . Other FMCG industry producers could include: Toiletries, groceries, magazines, Newspapers, even in this day and age mobile phones. “ Fast Moving Consumer Goods are products that have a quick turnover, and at a relatively low cost. ( Mingrong, L. 2007) OLIDIX CONSULTANTS
5. Current Position Oligopoly Few Market Leaders High Barriers of Entry OLIDIX CONSULTANTS
15. SWOT Analysis Strengths: Large market share, purchasing economies of scale, customer loyalty, world wide brand recognition, huge distribution network Weaknesses: Smaller market share than main rival Coca-cola, inability to substantially product differentiate, hard to compete with Coca-Cola’s strong brand identity and customer loyalty. Opportunities: Adapting to market trends (Pepsi health drink) could create an advantage, opportunity to be known as a socially responsible producer however this incurs costs which may not be met with the current economic climate, Threats: High levels of competition from main rival. Pepsi will lose market share if other companies adapt to market trends faster. OLIDIX CONSULTANTS
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17. Porter’s Strategy Continued… Cost-Leadership Industry’s lowest cost producer Price setting over price following Benefit from higher profit margins Product-Differentiation The differences in one product from another Unique customer perception Packaging and Promotional activities OLIDIX CONSULTANTS
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21. Our suggestion would be a range of Vitamin enriched waters under the name ‘Pepsi Fresh’. OLIDIX CONSULTANTS
