netrashetty
Netra Shetty
Marketing Research of PepsiCo : PepsiCo, Incorporated (NYSE: PEP) is a Fortune 500, American global corporation headquartered in Purchase, Harrison, New York, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001 - which added the Gatorade brand to its portfolio as well.[3]
As of 2009, 19 of PepsiCo's product lines generated retail sales of more than $1 billion each,[4] and the company’s products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food & beverage business in the world.[5] Within North America, PepsiCo is ranked (by net revenue) as the largest food and beverage business.[5]
Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the company employed approximately 285,000 people worldwide as of 2010.[6] The company’s beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions.[7] PepsiCo is a SIC 2080 (beverage) company.
Having an international market research conducted in the course of the internationalisation process is basically the foundation on which the consequent development and implementation strategies are to be based on. Basically, this considered as “one of the most important factors in predicting international performance for the firms.” (Brouthers and Nakos 2005, 363) Conducting an international market research also provides a systematic way of coming to a decision based on the marketing outcomes of the international performance of the firm. This similarly provides the idea that strategic decisions could provide a company a guaranteed rate of success given that the decisions that they implement are based on scientific, systematic, and accurate international market research outcomes. Another role of international market research is to ensure that the company will have a sustained development in the market. (Vredenburg and Westley 1999, 239) This is done by carrying out market opportunity studies present in a particular host country. In this regard, trends as well as the minor quirks of the market tend to become more apparent to those who will be making the strategic management plan of the organisation. Uncovering these ideas tends to establish the possibilities on which the company can make optimal use as they go along the process. This is especially true in cases of market-driven companies.
Another role in which international market research is deemed useful is for segmenting the market of the country on which the company seeks to enter. Craft (2004, 40) defines international market segmentation as “the division of a market into groups of customers who share certain characteristics or propensities toward a product or service.” In essence, the process is done to provide a detailed account on the attractiveness of the market on which a company intends to enter. At the same time, the use of international market research takes into account the other areas of the market on which the company could take advantage. One major problem in this part of international marketing is the veracity of the data used by the researcher. They have to make sure that the data used are up to date and accurate. Basically, this problem is encountered because of the use of secondary data as a main source of the analysis. Unless the company is able to acquire data for themselves through directly conducting a survey, then the next best thing that they could do is to be vigilant and recognise whether the data that they are to employ could be trusted or otherwise. Failing to do so is a sure way of bringing the international marketing plan into shambles the moment it goes to its implementation stage.
VIII. Hope for SMEs
Studies have indicated significant amounts of organisation that operate in the international setting are considered as Small and Medium-Sized Enterprises. (Brouthers and Nakos 2004, 229) This shows that entering into the international market is significantly appealing for any organisation regardless of size. In the same account, it shows that the ability of the company to take measures and establish stable operations tend to be one of the determinant of international success. The size of the company would only be deemed at fault in a negligible extent.
This is reinforced by other studies maintaining that in order for these SMEs to prevail over the odds of their operations, they have to eliminate a significant amount of risk in their respective markets. (Hart and Tzokas 1999, 63) In order to do these, massive amounts of marketing information should be amassed by SMEs so as to provide a clear picture of the environment on which these companies are to operate, both domestic and international.here are wide variations in disposable incomes and consumer expenditures across Asia Pacific, a region that encompasses industrialised states and emerging economies.
The global recession had negative impacts on almost all of these countries, but the projected rise in disposable incomes, particularly in China and India, offer tremendous opportunities for businesses looking to explore the Asia Pacific region.
- Asia Pacific is vast, spanning industrialised countries such as Japan, South Korea and Taiwan, as well as emerging economies such as China, India and the ASEAN nations. Variation in per capita disposable income is therefore large, ranging from US$25,501 in Japan, to US$2,056 in China and US$839 in India in 2009;
- Between 2004 and 2008, real per capita disposable incomes of the region increased by 4.1% annually, while per capita consumer expenditure increased by 3.1% annually. Under the 2008-09 global recession, these growth rates have slowed down to 0.9% and 1.3% respectively in 2009 over a year earlier;
- In 2010, China's real per capita disposable income is forecast to grow at 8.8% annually, compared to 10.9% in pre-crisis 2007. In India, in 2010, real per capita income is set to rise by 4.6% annually, comparable to the 4.6% annual real growth in 2007;
- High levels of poverty and inequality could restrict income and spending growths in the region. In 2009, 15.9% of the population in China lived on less than US$1.25 a day; the equivalent figure for India was 41.6%;
- In the medium term, Asia Pacific per capita consumer expenditure is expected to increase at an annual average rate of 3.8% during 2010-2015 in real terms. Real per capita disposable incomes are expected to rise at an annual average rate of 4.2% over the same period.
Regional patterns
- Asia Pacific is a diverse region. It contains industrialised countries such as Japan, South Korea and Taiwan, as well as emerging economies such as China, India, and the ASEAN nations. The region is therefore important because of the consumption power of mature markets and the significant potential of China, India, Indonesia and other emerging markets;
- Between 2004 and 2008, per capita disposable incomes of the region increased by 4.1% annually in real terms, while per capita consumer expenditure increased by 3.1% annually. Because of the impacts of the global recession, per capita disposable incomes increased by only 0.9% in real terms in 2009 over a year earlier, while per capita consumer expenditure increased by 1.3% in real terms in the same year;
- There are large variations within the region. The industrialised nations of Northeast Asia have the highest incomes and spending (US$25,501 per capita disposable annual income in Japan in 2009, followed by US$10,861 in Taiwan and US$10,830 in South Korea). China and the Southeast Asian nations (with the exception of Singapore) are less wealthy but have low poverty levels (for example, the 2009 per capita disposable annual income for China, Indonesia and Malaysia are US$2,056, US$1,557 and US$4,329 respectively), whilst South Asian countries are among the poorest in the region (countries such as India, with US$839 per capita disposable income in 2009);
- The importance of consumer expenditure also varies from country to country. In China, where household savings are high due to lack of social protection, private consumption accounted for only 34.0% of GDP in 2009. It also tends to be less important in Malaysia, a significant exporter of oil, constituting 46.6% of GDP in 2009. For other major economies in the region, including India, Indonesia, Japan, South Korea and Taiwan, private consumption generally accounts for between 50% and 60% of GDP.
As of 2009, 19 of PepsiCo's product lines generated retail sales of more than $1 billion each,[4] and the company’s products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food & beverage business in the world.[5] Within North America, PepsiCo is ranked (by net revenue) as the largest food and beverage business.[5]
Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the company employed approximately 285,000 people worldwide as of 2010.[6] The company’s beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions.[7] PepsiCo is a SIC 2080 (beverage) company.
Having an international market research conducted in the course of the internationalisation process is basically the foundation on which the consequent development and implementation strategies are to be based on. Basically, this considered as “one of the most important factors in predicting international performance for the firms.” (Brouthers and Nakos 2005, 363) Conducting an international market research also provides a systematic way of coming to a decision based on the marketing outcomes of the international performance of the firm. This similarly provides the idea that strategic decisions could provide a company a guaranteed rate of success given that the decisions that they implement are based on scientific, systematic, and accurate international market research outcomes. Another role of international market research is to ensure that the company will have a sustained development in the market. (Vredenburg and Westley 1999, 239) This is done by carrying out market opportunity studies present in a particular host country. In this regard, trends as well as the minor quirks of the market tend to become more apparent to those who will be making the strategic management plan of the organisation. Uncovering these ideas tends to establish the possibilities on which the company can make optimal use as they go along the process. This is especially true in cases of market-driven companies.
Another role in which international market research is deemed useful is for segmenting the market of the country on which the company seeks to enter. Craft (2004, 40) defines international market segmentation as “the division of a market into groups of customers who share certain characteristics or propensities toward a product or service.” In essence, the process is done to provide a detailed account on the attractiveness of the market on which a company intends to enter. At the same time, the use of international market research takes into account the other areas of the market on which the company could take advantage. One major problem in this part of international marketing is the veracity of the data used by the researcher. They have to make sure that the data used are up to date and accurate. Basically, this problem is encountered because of the use of secondary data as a main source of the analysis. Unless the company is able to acquire data for themselves through directly conducting a survey, then the next best thing that they could do is to be vigilant and recognise whether the data that they are to employ could be trusted or otherwise. Failing to do so is a sure way of bringing the international marketing plan into shambles the moment it goes to its implementation stage.
VIII. Hope for SMEs
Studies have indicated significant amounts of organisation that operate in the international setting are considered as Small and Medium-Sized Enterprises. (Brouthers and Nakos 2004, 229) This shows that entering into the international market is significantly appealing for any organisation regardless of size. In the same account, it shows that the ability of the company to take measures and establish stable operations tend to be one of the determinant of international success. The size of the company would only be deemed at fault in a negligible extent.
This is reinforced by other studies maintaining that in order for these SMEs to prevail over the odds of their operations, they have to eliminate a significant amount of risk in their respective markets. (Hart and Tzokas 1999, 63) In order to do these, massive amounts of marketing information should be amassed by SMEs so as to provide a clear picture of the environment on which these companies are to operate, both domestic and international.here are wide variations in disposable incomes and consumer expenditures across Asia Pacific, a region that encompasses industrialised states and emerging economies.
The global recession had negative impacts on almost all of these countries, but the projected rise in disposable incomes, particularly in China and India, offer tremendous opportunities for businesses looking to explore the Asia Pacific region.
- Asia Pacific is vast, spanning industrialised countries such as Japan, South Korea and Taiwan, as well as emerging economies such as China, India and the ASEAN nations. Variation in per capita disposable income is therefore large, ranging from US$25,501 in Japan, to US$2,056 in China and US$839 in India in 2009;
- Between 2004 and 2008, real per capita disposable incomes of the region increased by 4.1% annually, while per capita consumer expenditure increased by 3.1% annually. Under the 2008-09 global recession, these growth rates have slowed down to 0.9% and 1.3% respectively in 2009 over a year earlier;
- In 2010, China's real per capita disposable income is forecast to grow at 8.8% annually, compared to 10.9% in pre-crisis 2007. In India, in 2010, real per capita income is set to rise by 4.6% annually, comparable to the 4.6% annual real growth in 2007;
- High levels of poverty and inequality could restrict income and spending growths in the region. In 2009, 15.9% of the population in China lived on less than US$1.25 a day; the equivalent figure for India was 41.6%;
- In the medium term, Asia Pacific per capita consumer expenditure is expected to increase at an annual average rate of 3.8% during 2010-2015 in real terms. Real per capita disposable incomes are expected to rise at an annual average rate of 4.2% over the same period.
Regional patterns
- Asia Pacific is a diverse region. It contains industrialised countries such as Japan, South Korea and Taiwan, as well as emerging economies such as China, India, and the ASEAN nations. The region is therefore important because of the consumption power of mature markets and the significant potential of China, India, Indonesia and other emerging markets;
- Between 2004 and 2008, per capita disposable incomes of the region increased by 4.1% annually in real terms, while per capita consumer expenditure increased by 3.1% annually. Because of the impacts of the global recession, per capita disposable incomes increased by only 0.9% in real terms in 2009 over a year earlier, while per capita consumer expenditure increased by 1.3% in real terms in the same year;
- There are large variations within the region. The industrialised nations of Northeast Asia have the highest incomes and spending (US$25,501 per capita disposable annual income in Japan in 2009, followed by US$10,861 in Taiwan and US$10,830 in South Korea). China and the Southeast Asian nations (with the exception of Singapore) are less wealthy but have low poverty levels (for example, the 2009 per capita disposable annual income for China, Indonesia and Malaysia are US$2,056, US$1,557 and US$4,329 respectively), whilst South Asian countries are among the poorest in the region (countries such as India, with US$839 per capita disposable income in 2009);
- The importance of consumer expenditure also varies from country to country. In China, where household savings are high due to lack of social protection, private consumption accounted for only 34.0% of GDP in 2009. It also tends to be less important in Malaysia, a significant exporter of oil, constituting 46.6% of GDP in 2009. For other major economies in the region, including India, Indonesia, Japan, South Korea and Taiwan, private consumption generally accounts for between 50% and 60% of GDP.
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