Introduction
The beverage market changes, new trends emerge constantly, and even some of the biggest corporations as Coca-Cola and Pepsi can lose their power and relevance. Analysts cited market share declines caused by rising prices in PepsiCo’s snack categories (Badaracco & Preble, 2015). They pointed out that greater advertising and new developments in the company’s beverage category had not gained market share.
In 2011, Nooyi outlined how little direct investment would allow the nutrition sector of the company to expand organically (Badaracco & Preble, 2015). Thus, the essay analyzes whether focusing on health and nutrition will benefit Nooyi and whether Pepsi should follow or lead the market.
Indra Nooyi’s Health Strategies: Will Pepsi Lead or Follow?
Pepsi has to understand that its foundation is sweet beverages and snacks, which consumers want. PepsiCo’s potent nutrition brands like Tropicana and Quaker and the absence of significant worldwide competition. However, Pepsi will achieve a significant return on nutritional initiative investment, given the nutrition sector’s vast size and strong growth potential
PepsiCo received high grades from the Access to Nutrition Alliance, a project supported partly by the Bill and Melinda Gates Foundation (Badaracco & Preble, 2015). Considering the shift in demand, the most advantageous solution would be working towards developing and producing more nutritious and healthier options.
While soft drinks and snacks make up a sizable section of the company’s product line, it has made major efforts to broaden its selection and enhance its nutritional standards. All of PepsiCo’s product categories should have balanced growth. The aim is to ensure that the company grows with the market, but the nutritious segment is competitive.
Conclusion
Therefore, Pepsi needs to ensure that they expand at least as quickly as the market. Since they did not succeed in raising profits and sales on their old strategy, it seems reasonable to follow the market and try an innovative approach to production and promotion.
Even the largest companies, like Coca-Cola and Pepsi, can lose their influence and importance in the volatile beverage industry. Analysts have attributed market share losses in PepsiCo’s snack categories to price increases. The best course of action would be to create and provide more wholesome food alternatives. PepsiCo must ensure its growth is at least as rapid as the markets and experiment with novel manufacturing and marketing strategies.
Reference
Badaracco, J., L., & Preble, M. (2015). PepsiCo, profits, and food: The belt tightens. Harvard Business School.
