Marketing91

  • Home
  • All Tutorials
    • Marketing
      • Advertising
      • Branding
      • Sales
      • Retailing
      • Consumer Behavior
      • Customer Management
      • Distribution
      • Market Research
      • Pricing
      • Product Management
      • Strategy
      • STP Marketing
      • Services Marketing
    • Digital Marketing
    • Brands Analysis
      • Marketing Mix
      • SWOT of Brands
      • Strategies
      • Competitors
      • Lists
    • Management
      • Communication
      • Leadership
      • Decision Making
      • Team Management and Delegation
      • Organizational Management
      • Motivation
      • Personal Development
      • Project & Risk Management
      • Time Management
      • Operations Management
    • Careers
      • Interviews
    • Business
      • Business Models
    • Human Resources
    • Skills
  • Marketing News
  • About Us
    • Contact Us
  • Academy
Home » SWOT of Brands » SWOT Analysis of Pepsi – PepsiCo SWOT analysis

SWOT Analysis of Pepsi – PepsiCo SWOT analysis

February 28, 2023 | By Hitesh Bhasin | Filed Under: SWOT of Brands

PepsiCo is a global food and beverage company that was founded in 1965. The company’s diverse product portfolio includes popular brands such as Pepsi, Frito-Lay, Gatorade, Tropicana, and Quaker. PepsiCo is committed to sustainability and social responsibility, and has set goals to reduce its environmental impact while investing in the communities where it operates. Mission of the Company is “Create more smiles with every sip and every bite”. With operations in over 200 countries and territories, PepsiCo is a leading player in the food and beverage industry.

In 2022, PepsiCo reported net revenue of $86.39 billion, a 8.7% increase compared to the previous year. The company’s revenue is divided into four segments: Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, and PepsiCo International.

Table of Contents

  • Strengths in PepsiCo SWOT Analysis
    • 1. Huge & Diverse Portfolio
    • 2. Ethics and Integrity
    • 3. Invests Significant sum in Marketing and Advertising
    • 4. Highly invests in Research and development
    • 5. Effective Supply Chain
    • 6. Personalization – Key Marketing Strategy
    • 7. Celebrity Endorsements
    • 8. Sustainability Efforts
  • Weaknesses in PepsiCo SWOT Analysis
    • 1. Failed products
    • 2. Product Recall Incidents
    • 3. Controversies
    • 4. Becoming less attractive
    • 5. Highly Centric in some regions
    • 6. Criticised as Unhealthy food supplier
  • Opportunities in PepsiCo SWOT Analysis
    • 1. Sparkling Water Market
    • 2. Introducing New Products
    • 3. Increasing Online Sales
    • 4. Investing in CSR Initiatives
    • 5. Acquisition
    • 6. Growing demand for Healthy and Functional beverages
  • Threats in PepsiCo SWOT Analysis
    • 1. Intense Competition
    • 2. Economic Slowdown
    • 3. Volatility in Commodity Prices
    • 4. Cyber-security Risks
    • 5. Labour Issues
    • 6. Government Regulations
    • 7. Shift in Consumer Preferences

Strengths in PepsiCo SWOT Analysis

Strengths in PepsiCo SWOT Analysis

1. Huge & Diverse Portfolio

PepsiCo has a diverse portfolio of products, including:

  • Soft drinks: Pepsi, Diet Pepsi, Mountain Dew, 7UP, Mirinda, Slice, and Sierra Mist.
  • Snacks: Lay’s, Doritos, Cheetos, Ruffles, Tostitos, SunChips, Quaker Oats, and Rice-A-Roni.
  • Breakfast foods: Quaker Oats, Cap’n Crunch, and Life cereal.
  • Juices and juice drinks: Tropicana, Naked Juice, and Ocean Spray.
  • Sports drinks: Gatorade, Propel, and Amp.
  • Tea and coffee: Lipton, Pure Leaf, Brisk, and Starbucks ready-to-drink beverages.
  • Water: Aquafina and Propel water.
  • Alcoholic beverages: PepsiCo also has a joint venture with Molson Coors to produce and market hard seltzer and other alcoholic beverages under the brand name Hard Mountain Dew.
Also Read  SWOT Analysis of Casio

2. Ethics and Integrity

In 2022, PepsiCo was recognized as one of Ethisphere’s World’s Most Ethical Companies, one of only six companies to receive this honour 16 years in a row.

3. Invests Significant sum in Marketing and Advertising

PepsiCo’s advertising and other marketing activities, reported as selling, general and administrative expenses, totalled $5.2 billion in 2022.

4. Highly invests in Research and development

PepsiCo invested $771 million in Research and development in 2022, which helps the company to produce new flavours and safe its current market share.

5. Effective Supply Chain

The company has invested heavily in building a global network of suppliers, manufacturing facilities, and logistics providers that enable it to produce and distribute its products efficiently and effectively. This supply chain enables PepsiCo to: Ensure a reliable supply of raw materials, Optimize production processes, Reduce transportation costs, Minimize waste.

6. Personalization – Key Marketing Strategy

PepsiCo has identified personalization as a key marketing strategy, tailoring campaigns to specific consumer interests, preferences, and needs. Successful campaigns include partnerships with Netflix shows like Money Heist, catchy music videos like Swag Se Solo, and limited-edition digital artwork collections like Pepsi Black Zero Sugar NFT. Personalization has helped PepsiCo connect with consumers, drive brand loyalty, and differentiate itself from competitors.

7. Celebrity Endorsements

PepsiCo is well-known for its advertising and marketing strategies that feature celebrity endorsements. The corporation has sponsored numerous occasions, including the Super Bowl, FIFA World Cup, UEFA Champions League, the Olympics, and many more in order to rule the beverage market and have the most recognised brand.

8. Sustainability Efforts

PepsiCo has set a goal to reduce greenhouse gas emissions across its value chain by 40% by 2030. The company has also made significant investments in renewable energy, with plans to transition to 100% renewable electricity in the US by 2025 and globally by 2030. Additionally, PepsiCo has implemented sustainable packaging initiatives, such as using recycled materials and reducing plastic waste.

Weaknesses in PepsiCo SWOT Analysis

1. Failed products

PepsiCo has experienced failures with some of its products, such as Crystal Pepsi, Salted Caramel Pepsi, etc. These failures can have a demoralizing effect on employees and damage the brand’s reputation, creating opportunities for competitors to gain market share.

Also Read  Accenture SWOT analysis - SWOT analysis of Accenture

2. Product Recall Incidents

PepsiCo has faced several product recall incidents in the past, which have damaged its reputation and resulted in financial losses. In 2020, the company issued a voluntary recall of some of its Tostitos and Miss Vickie’s products due to the potential presence of salmonella in the seasoning. In February 2023, PepsiCo recalled 25,200 cases of its Starbucks Frappuccino Vanilla chilled coffee drinks in the US after glass was discovered in some of the bottles.

3. Controversies

There have been several controversies surrounding PepsiCo, some of the notable controversies include: Use of Palm oil, High water usage in water scarce regions, PepsiCo. vs. Farmers case (2019). These controversies may severely effected the company sales and the perception of people towards it.

4. Becoming less attractive

PepsiCo’s products may be less attractive to health-conscious consumers, which could impact the company’s growth potential in markets where healthier options are becoming more popular. Despite offering healthier products, the company’s reputation as a producer of sugary drinks and snacks may make it less appealing to some consumers. 

5. Highly Centric in some regions

While PepsiCo has a global presence, approximately more than 27% of the company’s revenue is generated in North America. This dependence on a single region makes the company vulnerable to economic and regulatory changes in that market.

6. Criticised as Unhealthy food supplier

PepsiCo’s focus on producing and marketing unhealthy food and beverage products high in sugar, salt, and calories has been criticized for its link to health issues like obesity, diabetes, and heart disease, impacting public health and healthcare costs.

Opportunities in PepsiCo SWOT Analysis

Opportunities in PepsiCo SWOT Analysis

1. Sparkling Water Market

PepsiCo has opportunities to grow in the sparkling water market by expanding its product offerings with unique flavours, leveraging its distribution channels, and investing in marketing campaigns to promote the health benefits of its products.

2. Introducing New Products

PepsiCo has opportunities to introduce new products by expanding its portfolio of healthier options, leveraging emerging food trends, and exploring new product categories or markets.

3. Increasing Online Sales

The COVID-19 pandemic has accelerated the shift towards online sales. PepsiCo can increase its online sales by investing in e-commerce and digital marketing.

Also Read  SWOT Analysis of ALLEN SOLLY

4. Investing in CSR Initiatives

It presents an opportunity for PepsiCo to build goodwill, strengthen its brand reputation, and differentiate itself from competitors, as consumers increasingly prioritize ethical and sustainable business practices.

5. Acquisition

Acquisition presents an opportunity for PepsiCo to expand its product offerings, diversify its revenue streams, and enter new markets, but come with risks and must be carefully evaluated to ensure they align with strategic goals and deliver a positive return on investment.

6. Growing demand for Healthy and Functional beverages

PepsiCo can capitalize on the trend towards healthier and more functional beverages by expanding its portfolio of products in this space. This includes investing in brands that cater to specific dietary needs or offer functional benefits like energy or immune support.

Threats in PepsiCo SWOT Analysis

1. Intense Competition

Intense competition from other beverage and snack companies, especially Coca Cola, threatens PepsiCo’s current position in the market. Coca Cola holds a 46.3% market share, while PepsiCo holds the second position with a 24.37% share.

2. Economic Slowdown

The conflict between Russia and Ukraine, combined with economic slowdown and inflation, poses a significant threat to PepsiCo’s operations and profitability in the region.

3. Volatility in Commodity Prices

PepsiCo’s profitability can be affected by fluctuations in commodity prices, particularly for corn, sugar, and dairy as Inflation in almost every nation at its peak.

4. Cyber-security Risks

PepsiCo faces cyber-security risks like data breaches and cyber-attacks that can compromise sensitive information, disrupt supply chain operations, and cause reputational damage. These risks can be costly in terms of financial losses and legal consequences.

5. Labour Issues

Labour issues such as disputes, unionization efforts, and high turnover rates pose a threat to PepsiCo’s operations and profitability. These issues can disrupt production and supply chain operations, increase labour costs, and lower the quality of products and services.

6. Government Regulations

Regulations related to health and safety, environmental sustainability, and labour practices pose a threat to PepsiCo’s operations and profitability.

7. Shift in Consumer Preferences

The growing demand for healthier products is a threat to PepsiCo’s primarily unhealthy product portfolio. Failure to adapt to changing consumer preferences can negatively impact sales and profitability.

Also Read  SWOT Analysis of Pizza Hut

Conclusion

In conclusion, PepsiCo is a global leader in the beverage and snack industry, with a diverse product portfolio that includes popular brands like Pepsi, Frito-Lay, Gatorade, and Tropicana. While the company has strengths such as a strong brand image, global presence, and a robust distribution network, it also faces several weaknesses such as criticism for unhealthy products, product recall incidents, controversies. In addition, opportunities for growth exist through product innovation, diversification, and expanding into emerging markets. However, threats such as intense competition, government regulations, and changing consumer preferences for healthier options must also be considered. Overall, PepsiCo must continue to adapt to changing market conditions and consumer preferences to maintain its position as a leading player in the industry.

Liked this post? Check out the complete series on SWOT

About Hitesh Bhasin

Hitesh Bhasin is the CEO of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

Related posts:

  1. SWOT Analysis of McDonalds
  2. SWOT Analysis of Absolut Vodka – Absolut SWOT Analysis
  3. SWOT analysis of Nivea – Nivea SWOT analysis
  4. SWOT Analysis of Zara – Zara SWOT Analysis
  5. SWOT Analysis of Acer – Acer SWOT analysis
  6. SWOT Analysis of Hewlett Packard – HP SWOT analysis
  7. SWOT Analysis of Youtube 2023
  8. SWOT analysis of Whirlpool – Whirlpool SWOT analysis
  9. SWOT Analysis of Easy Jet
  10. SWOT Analysis of Rado
Not found what you are looking for? Search this website.

Comments

  1. kaal says

    Who wrote this amazing SWOT?

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement
Recent Posts
  • Top 28 HelloFresh Competitors (Updated in 2023)
  • Top 30 Booking.com Competitors (Updated in 2023)
  • Top 30 Shopify Competitors (Updated in 2023)
  • Top 27 Salesforce Competitors (Updated in 2023)
  • Top 23 Google Competitors in 2023
Advertisement

Marketing91

MORE INFO

  • About Marketing91
  • Marketing91 Team
  • Privacy Policy
  • Cookie Policy
  • Disclaimer
  • Terms of Use
  • Editorial Policy
  • Advertise
  • Contact us
  • Sitemap

WE WRITE ON

  • Marketing
  • Management
  • Strategy
  • Skills
  • Careers
  • Digital Marketing
  • Business
  • Human Resources
  • Operations Management
  • Marketing News
  • SWOT's
  • Marketing mix's
  • Competitors
  • Strategies
  • Lists
Search
[email protected]

Copyright © 2023 Marketing91 All Rights Reserved