Week 11 PepsiCo

We can learn from the PepsiCo case study that it is important and safe to have a wide range of products. In case something big is going to happen and in 1 or 2 years time nobody will buy Pepsi, they have other smaller companies to rely on. They are very efficient at risk management, they don't have all eggs in one basket. Another effective strategy is to grow the health market by investing in smaller companies that sell healthier goods. This might turn out to be successful in the future when people will buy fewer noxious products in favour of more healthier products. Pepsi is customer focused and they are adapting their products to customer needs; just like in China where products were made with local flavours to satisfy customer needs and that turns out to be a good strategy for China Where Pepsi has recorded decades of growth. Pepsi is also investing in their brand image as "good" which might not have immediate effects but on the long run they are most likely to benefit from it (super bowl).  A very interesting strategy that Pepsi is adopting is to involve local people in their product development. By adopting this strategy there is little risk that the product will not be successful, since local people contributed to the taste of the product.  Being responsible is very important to the customers but being profitable is important to the shareholders. Now if shareholders are unhappy they might choose to invest in other companies and everything ca turn out very hurtful for Pepsi but if customers perceive the brand as low quality, bad image and bad customer relationship management, it can result in decrease of sales an eventually bankruptcy. Therefore, being responsible and profitable are equally important.