Strategic Objective:[a]
To get PepsiCo foods in Canada back as a leader in the Canadian market; by creating more products or including organic ingredients in their already popular products such as granola bars and chips.
External Analysis:[b]
General Environment | - Approximately 8 out of 10 Canadians eat one snack everyday
- Canadians are more health conscience
- Overweight and obesity are big concerns
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Industry Environment[c] | - Canadians eat more practical foods because of lifestyle, professional pleasures and the lack of time feeling in general.
- In 2010, PepsiCo had 294,000 employees globally, its sales represented $57.8 billion
- From 2009 to 2010 sales increased 34%
- Net income increased 6% in the same period
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Competitive Environment | - Kellogg and General Mills are the only real competition for PepsiCo in the snack market
- The real issue is getting the Canadians to see PepsiCo products like Quaker and Frito Lay as a healthy option in their everyday snacks
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Internal Analysis:[d]
Resources | - Able to include on all labels the health benefits of each snack offered
- Brand awareness is very high
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Capabilities | - Able to compete with new products that are all organic with proper labels, that Canadians live by
- Most Canadians are price sensitive when consuming products, but will purchase quality that has health benefits
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Core Competencies | - Human Sustainability: to contribute to the health and wellbeing of consumers
- Environment: Reducing solid waste, reducing energy consumption and greenhouse gases
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SWOT Analysis:[e]
Strengths
- PCFC holds the highest granola bars market share
- PepsiCo can compete with most companies as far as price wars go.
- The company includes hundres of strong leading brands globally and in different market segments
| Weaknesses
- PepsiCo is known for their foods that are not part of the healthy standard more of a snack food that has high calories and high fats
- Canadians are getting older and the population is already 1/5 elderly
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Opportunities
- Get into the yogurt and frozen food market; introduce it with the Quaker brand and include different varieties of granola grains as the toppings
- Go organic in the Canadian market, with fresh snacks that can be introduced in the sweet and salty snacks market
- PepsiCo needs to develop a plan that will focus on products made for the older population like smoothies, yogurts made from organic products that will help the body maintain a balance diet
| Threats
- Highly competitive market
- 1/5 of the Canadian population will be senior citizens and more households are having less children
- PepsiCo can lose the market if they don’t make an effort to create a healthier image on their products
- Canadians are more into organic and foods that consist to a healthier lifestyle because they don’t want to get over weight
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Strategic Options/Alternatives:[f]
Alternative | Pros | Cons | Favorability (/10) |
Option 1 Since we are already the leader in the granola bar market, include ingredients that are all organic with a new food label
| - Create a new market for healthy foods
- Relaunch an old product as a new one, saving money on new product advertising
| - Could hurt sales in other areas like chips and drinks because of fat content and consumption
- Canadians already think Pepsi is a fatty food maker and would be hard to change their mind
| 7/10 |
Option 2 Get involved with weight-watchers and curve again with a new marketing plan for the older population ages 40 and up
| - Canada’s population is getting older and having less kids
- More and more are getting health conscience and want a diet that will help them live longer and healthier
| - The older population really don’t use social media and watch a lot of TV, and PepsiCo does most of their advertising through these channels
| 9/10 |
