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Pepsi Marketing Case Study Chapter 14

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As a guide use exhibit 1.3 and its description in chapter 1.and do the following.

1.Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.

2.What are the major sources of risk facing the company and discuss potential solutions.

3.Critique Starbucks overall corporate strategy.

Introduction of Starbucks.

Starbucks is one of the largest chains of coffee shops in the world. They started their business in the early 80s as a tiny chain of Seattle coffee shops, grew rapidly in the 90s and now own 5,689 coffee shops in 28 countries. This chain of coffee shops is very well managed by a well seasoned management team popularly known as H2O, because of Howard Schultz (Chairman…show more content…

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|Italy |Price (Italian coffee bars prosper by serving food | |
| |as well as coffee, an area where starbucks still | |
| |struggles. Also Italian coffee is cheaper than US | |
| |java say, Italian purists, much better. Americans | |
| |pay about &1.5 for an espresso, on the other hand | |
| |northern Italy the price is 67 cents, in the south | |
| |just 55 cents. | |
|Vienna | |Culture (young are always enthusiastic about new and |
| | |they embrace the new. So, starbucks will get positive |
| | |advantages in expanding their business in Vienna |

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An Introduction Of
PepsiCo’s Brand New Energy Drink
Name: Nguyen Chau Phi Yen
ID: 1116462
Date: August, 2011

EXECUTIVE SUMMARY
The main purpose of this marketing plan is analyzing and examining the New Zealand energy beverages market to prepare for PepsiCo brand new energy drink category: Strawberry Sting – no fat, low sugars, high sodium and calories with sweet strawberry flavor to meet one of PepsiCo objectives: “sustainably and profitably develop company's beverage business worldwide”. (PepsiCo, 2011). Indeed, the potential market for this new product is generation Y consumers (from 18 to 24 years old), especially male.
PepsiCo is a big manufacturer, marketer and distributor of snacks, foods and beverages. Hence, company’s…show more content…

(Appendix 1)
In one year (2010 – 2011), both dollar and package sales of energy beverages (including sports drinks), all increased with 17.1 % and 15.2% respectively. And based on package sales performance, it was about 2% total growth energy beverages better than previous years. Therfore, the size of energy beverages is in an upward trend and energy beverages companies earn more and more profit than they used to. 1.2. Market Trend:
Figure 2: Market information digest – energy beverages.

(A.C Nielsen, 2011). (A.C Nielsen, 2011).
Figure 2 shows the trend of sports and energy drinks in year 2010 and 2011. Overall, it is clear from the graph that in 2 years energy beverages always took more percentage than sports drinks: only 30% of sports drinks in comparison with 60% of energy drinks in 2011. In particular, sports drinks upward market trend reveals change with slight increase. On the other hand, the pecentage of energy drinks reduced as compared with previous year. Energy drinks are still more prospective than sports drinks due to a wide range in kinds of consumers. Figure 3: Forecast sales of sports and energy drinks by category (2005 – 2015).

(Appendix 2)
During 6 years period, the market trend seems to develop steadily. Moreover, the value of energy beverages have risen approximately NZ$

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