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Sihra 2

Hritik Sihra

Diane Sionko

Business 100

December 4, 2019

Market Penetration

PepsiCo strategic planning issue is market penetration. The company should come up with strategies for intensive growth and supporting the development of the business. It should plan on how it will use aggressive strategies for market growth especially in the developing nations. It should come up with strategic growth opportunity that reduces the cost and the price (Eades et al, 2017). Low prices are very important in attracting consumers though the market might be saturated. In developing countries, there is high demand for the beverages and penetration in the market will make the company continue growing. Intensive growth assists in the expansion of the business and helps business to be competitive in the market.

Recommendation

PepsiCo should come up with healthy choices for the products. Many people are adapting to healthy eating style because of the emerging diseases as a result of unhealthy lifestyle. In developed countries some of the people do not drink beverages from PepsiCo since they contain too much sugar which can have impacts on their health. Some of these beverages are associated with diseases such as high blood pressures because of the unhealthy way of consumption. PepsiCo coming up with health products will be able to penetrate in the market easily since it is the choice for many people (Srikanth, Donthireddy & Makkena, 2018). Additionally, PepsiCo should also work towards marketing and advertisement of the products. It is very important for the company to create awareness about the products which they offer and give reason to the consumers to purchase them. When there is thorough marketing of the products, it gives opportunity of the business to penetrate in the market more than the rivals. Another recommendation is diversification of the kind of the products that are offered. It should start making healthy snacks and selling them to the customers. Healthy snacks will enhance market penetration since the customers will be interested on the new products. Similarly, PepsiCo should be environmentally conscious for it to penetrate in the market without much challenge. It needs to come up with best strategies for disposal of waste. It should also recycle some its waste as a way of addressing the issue of environmental challenges. Lastly, the company should enhance good relationship with the customers both in developing and developed nation. It makes the customers feel that they are appreciated for purchasing the products from the customers. Customers feel that they are valued and respected and they are part of the success of the business.

References

Eades, K. M., Thornhill, D., & Eades, K. M. (2017). PepsiCo, Inc.: Cost Of Capital. Darden Business Publishing Cases, 1-13.

Srikanth, A., Donthireddy, C., & Makkena, K. D. (2018, October). Improvising Downtrend Product Using Conjoint Analysis: A Special Analysis on Mirinda of Pepsico. In ICRTEMMS Conference Proceedings (Vol. 546, No. 549, pp. 546-549). Swarna Bharathi lnstitute of Science and Technology.