The competitive strategy of PepsiCo supports the intensive strategy by introducing unique products for attracting consumers. This boost the investment in R&D for more innovation in products. PepsiCo introduced natural fruit juice Tropicana. For example, PepsiCo continued to develop the variants or products of the existing items like Low calorie drink, low saturated fat variant. This mainly benefits the company in attracting more consumers.
This means new products will be introduced by the company in existing market.
The secondary growth intensive strategy of PepsiCo is Product development. PepsiCo also introduced more local flavour in existing market (Ferguson, 2017). Aggressive marketing is used by PepsiCo for attracting consumers as David Beckham was shown in marketing campaigns in international market. For example, different sizes of Pepsi soft drink were introduced in market. This strategy supports the growth by increasing the sales and market share. PepsiCo is selling its beverage Pepsi in the current market. This leads to damaging prices war which reduces profit margin in industry. If the company uses low prices for penetrating the market. However, this strategy is not completely risk free. The parameters of the products remain same. This is mainly because PepsiCo sells existing products in the existing market. Market Penetration is mostly least risky among all four strategies. Here is the detailed Ansoff matrix of PepsiCo. This is determined by establishing the merge of new and current products (CFI, 2020).
It also helps in analysing the companies on the basis of product and market with opportunities. This framework helps the companies in identifying the new opportunities related to growth. Ansoff had designed this matrix in 1957 as a framework. The company has expanded much from the namesake product “Pepsi” to wide range of beverage and food brands (PepsiCo, 2020). The company was founded in 1965 along with the merger of Frito-Lay and Pepsi-Cola Company. PepsiCo has great interest in manufacturing, distribution, and marketing of the beverages, food and grain-based snacks, and other items. The company is headquartered in New York. is one of the famous American multinational company of beverage, snack and food.
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