The matrix is misrepresenting in some cases. Example: Coca Cola and Pepsi. Coca Cola is market leader, as a result of which the relative market share. Overview∗ Company Overview ∗ Strategy Formulation∗ History of Pepsi ∗ SWOT Matrix ∗ Grand Strategy Matrix∗ Growth ∗ BCG∗ Beverages Pepsi-Cola North America Pepsi-Cola Mountain Dew .. Hut Taco Bell Low High 10% BCG Matrix for PepsiCo – Early s;

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These products are the money churners for the company and require very low investments to sustain their leadership and profitability in the market. In this BCG matrix, we will talk about different brands of Pepsico which over the years have seen a fall in market share due to changing market scenarios and also brands which saw exponential growth in their market share. From time to time, corporation matrid segment has high market share another has low market share, in the operating industry.

However, despite the enormous product line and range, corporation core business focus is on Beverages. One of the tool is BCG Matrix. Dogs are those products that were perceived to have the potential to grow but pepsu failed to create magic due to the slow market growth.

Fortunately, PepsiCo has many star segments, which make sense because it is one of the world largest beverage and food processing corporation.

PepsiCo should pspsi on horizontal integration to increase QFNA market share and bring the segment into the fold of stars. There are products that formulate a part of the industry that is still in the phase of development, yet the organization has not been able to create a significant position in that industry.

This segment particularly manufacture, distribute, and sells breakfast bars and cereal.

BCG Matrix of PepsiCo | | BCG Matrix Analysis

The company has to spend millions of dollars on brand awareness and promotional activities in order to maintain its market share.

PepsiCo is famously known for its strategy of horizontal integration, in if, it merged Tropicana; an orange juice company with Quaker oat. This framework was designed by a private consulting agency located in Boston, namely, Boston consulting group. FLNA can be considered as the backbone of company because such segment can, keep on generating good revenue for company for long-term.

Conglomerate like, PepsiCo is not easy bc manage. PepsiCo has 6 division, each segment operate in distinct industry or geographical region.

Since the product is not expected to bring in any significant capital, future investment is seen as pepai wastage of company resources, which could be invested in a Question mark or Star category instead.


Learn the BCG Matrix of Samsung and understand different business units which fall under different quadrants.

The answer is obvious that, it will not work, because each segment requires a distinct strategic plan, keeping in view the market share of each segment in the operating industry. Bdg falling sales of aerated drinks as consumers shift to healthier drinks, Pepsico aims to double the Tropicana business by Growing healthier lifestyle trends and emerging markets have prompted the brand to invest large amounts of investments in healthier beverages and snacks in order to differentiate from competitors and grow brand awareness.


Enter your email address: QFNA share of revenue was reported 3. Because of stiff competition from Coca-Cola and changing customer preferences towards healthy and low-calorie drinksPepsi is seeing a shift from STAR quadrant to Dogs quadrant.

Bg with a Segments has witnessed growth in the revenue compare to previous years despite the decline of industry sales growth rate. Failure to deliver the expected results makes the product a source of loss for the organization, propelling the management to withdraw future investment in the venture.

Market development and product development strategy is suggested for such segments. Those segments fall into the category of stars, which operates and compete in high sales growth industry and have high relative market share. Leave a Reply Cancel reply Your email address will not be published. Past few years have been an inflection point for the company with Pepsico seeing a major drop in their carbonated drinks business, thus prompting it to go back to the drawing board and relook pe;si its future strategy and also its product offerings.

These products have the potential of being positioned as cash cows in the future owing to the industry growth prospects. Carbonated soft drinks segment has seen a major decline in the past few years, the overall liquid refreshment beverage market has been growing.

Jatrix Matrix also is known as the growth-share matrix is used by organizations to classify their business units or products into 4 different categories: Its main products are, breakfast bars, energy drinks, coffee drinks, snacks, soft drinks and sports nutrition. Products or business units of the company that are still in the nascent stage of their pspsi lifecycle and can either become a revenue generator by taking the position of a Star or can become a loss-making machine for the company in the future.

Cash cows are considered to be those segments which are operating in low pepzi sales growth rate and have high market share. The growth rate of an industry and the market pwpsi of a respective business relative to the largest competitor present in the industry are taken as the basis for the pepdi, for that reason, BCG Matrix is also called as Growth-Share Matrix.


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BCG Matrix of PepsiCo

NAB segment products are soft drinks and bottled water under different brands name following are some eminent brand names; Aquafina, Pepsi, Mountain dew and Sierra mist. In Pepsi soft drink was the highest selling product of corporation. Products which are market leaders in their specific industry and their industry is not expected to see any major growth in the future are considered as Cash Cows. As a result, companies are interested to invest in developing these units further to gain a larger market share and attain a stronger position in the market.

Declining carbonated soft drinks segment share due to increasing demand for low calorie and healthy beverages and snacks is what is attributing the diminishing sales of Pepsi brand. This change in consumer preferences is what has helped Gatorade see an exponential growth in its market share. Corporation distributes its products in two hundred countries around the globe. The small market share obtained by the organization makes the future outlook for the product uncertain, therefore investing in such domains is seen as a high-risk decision.

These are low growth or low market share products and have very few chances of showing any growth. Products or Business Units which hold a high market share and are also considered to grow in the future are positioned as Stars. According to BCG matrix; Question mark are those segments which, operate in high sales growth industry and have low relative market share.

BCG matrix was specially designed for corporations, which operates in diverse industries. Diet Sodas, once seen by consumers looking to cut calories as an alternative to traditions sodas, are losing their fizz.

Dogs are considered to be the futile segments of company. It has many segments each compete in different industry therefore, each segment requires a special attention from the top level management regarding strategic planning. The industry has high potential to grow hence giving the room to the products to grow as well only if the pertinent issues are managed effectively.

These business units or products are cash traps and therefore are not seen as a useful source of earning. August 26, heartofcodes Leave a comment.