Published by MBA Skool Team, Last Updated: October 02, 2021
SWOT analysis of PepsiCo analyses the brand by its strengths, weaknesses, opportunities & threats. In PepsiCo SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like PepsiCo to benchmark its business & performance as compared to the competitors. PepsiCo is one of the leading brands in the food & beverages sector.
The article below lists the PepsiCo SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the PepsiCo SWOT Analysis:
For PepsiCo, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
The strengths of PepsiCo looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of PepsiCo :
1. Pepsi is one of the most popular and globally recognized brands in foods and beverages
2. One of the most diversified product portfolio
3. Popular subsidiary brands like Frito Lay, Gatorade, Pepsi, Quaker, Tropicana, Yum! Brands, etc.
4. PepsiCo has Global reach with presence in over 200 countries
5. An employee strength of around 300,000 people
6. CSR through PepsiCo Foundation, which works in the sector of education, health, water conservation, education etc.
7. Pepsi Refresh Project that funds new ideas or ventures that have the potential to benefit the society
8. Strong and efficient supply chain network, ensuring that all the products are available even in the most remote places
9. One of Pepsi's strengths is excellent branding and advertising with global celebrity as brand ambassadors
10. Tie-ups, sponsorships with global sports events, music concerts, etc. has been a stronghold of PepsiCo
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the PepsiCo SWOT Analysis:
1. Strong competition in the aerated drinks segment from Coca Cola means high brand switching
2. Cases against products have been blown out of proportion, thereby affecting brand image
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in PepsiCo SWOT Analysis:
1. Pepsi should increase growth in developing countries and capture their market
2. Increase its product portfolio by acquisition of other brands
3. PepsiCo can expand the Yum! Brands eatery in untapped countries and regions like tier 2 cities
4. To improve its brand image by involving in more CSR activities to benefit the locals
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of PepsiCo are as mentioned:
1. Health consciousness amongst people can take a toll on its aerated drinks and snacks food markets
2. Compliance with different government regulations and norms in different countries
3. Inflation, economic slowdown and instability causes decline in the purchasing power of consumers
4. Strong competition from other brands in each segment of its operation can be a threat for PepsiCo
There are several brands in the market which are competing for the same set of customers. Below are the top 8 competitors of PepsiCo:
Live for Now; Every Generation Refreshes The World; Something for Everyone
One of the most popular global brands in the foods and beverages sector targeting the youth
Middle and upper middle class people
The younger generation (15 to 35 years of age)
As a food and beverage brand with multiple products catering to the youth
PepsiCo Product Portfolio
2. Diet Pepsi
The above mentioned brands are the prominent products under the PepsiCo product portfolio.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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