1. S.T.E.E.P Analysis
a. Social and Demographic
1) Lifestyle has great influence on the use of Pepsi products, and their advertisements are designed accordingly. 2) Most of the US populations are now practicing healthier lifestyle preferences. This has affected the non-alcoholic beverage industry in that many are switching to bottled water and diet colas instead of beer and other alcoholic beverages. 3) In this ever growing “green” global society, Pepsi must make it a point to adhere to solid waste management regulations and water replenishment. b. Technological:
1) Pepsi has to constantly update its manufacturing techniques for all three of their product categories of juices, snack foods and soft drinks. 2) As distribution and logistical technologies change and advance, Pepsi must also adapt to these changes. c. Economic:
1) Pepsi is subject to the availability of the raw materials used to produce their juice, snack food and soft drinks such as vegetables and fruits. 2) Pepsi is also subject to its need for fuel and has to deal with high fuel costs. Much of the Pepsi products are transported and delivered via land, in truck or by rail. 3) Operating in the international community causes Pepsi to account and plan for market and currency value fluctuations. . d. Environmental and Geographic:
1) Being an international company and with an eye on always trying to grow its business by entering new markets, Pepsi is subject to developing its marketing plan, logistical operations and distribution channel to adhere to the requirements of the geographical and environmental forces of the areas it is attempting entry. e. Political/legal/governmental:
1) Non-alcoholic beverages fall within the food category under the FDA. The government plays a role within the operation of manufacturing these products in terms of regulations. 2) Political conditions, especially in international markets, including civil unrest,...
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