The matrix is misrepresenting in some cases. Example: Coca Cola and Pepsi. Coca Cola is market leader, as a result of which the relative market share. Overview∗ Company Overview ∗ Strategy Formulation∗ History of Pepsi ∗ SWOT Matrix ∗ Grand Strategy Matrix∗ Growth ∗ BCG∗ Beverages Pepsi-Cola North America Pepsi-Cola Mountain Dew .. Hut Taco Bell Low High 10% BCG Matrix for PepsiCo – Early s;

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This is a four dimensional framework which depict the multiple segments position, with regard to its relative market share and industry sale growth rate. NAB segment products are soft drinks and bottled water under different brands name following are some eminent brand names; Aquafina, Pepsi, Mountain dew and Sierra mist. The product requires very less investment to maintain its market share and fight off any competition.

Those segments embrace the category which have low relative market share in low sales growth industry.

BCG Matrix of PepsiCo

These products are the peosi churners for the company and require very low investments to sustain their leadership and pepwi in the market. Past few years have been an inflection point for the company with Pepsico seeing a major drop in their carbonated drinks business, thus prompting it to go back to the drawing board and relook at its future strategy and also its product offerings. PepsiCo should focus on horizontal integration to increase QFNA market share and bring the segment into the fold of stars.

The growth rate of an industry and the market share of a respective business relative to the largest competitor present in the industry are taken as the basis for the classifications, for that reason, BCG Matrix is also called as Growth-Share Matrix.

Segments has witnessed growth in the revenue compare to previous years despite the decline of industry sales growth rate.

BCG matrix was specially designed for corporations, which operates in diverse industries. Market development and product development strategy is suggested for such segments.


BCG Matrix of Pepsi | BCG Matrix analysis of Pepsi

The industry has high potential to grow hence giving the room to the products to grow as well only if the pertinent issues are managed effectively. Aquafina is slowly and steadily catching up with Bisleri and is expected to see a twice a growth in the next 5 years. As a result, companies are interested to invest in developing these units further to gain a larger market share and attain a stronger position in the market.

Fortunately, PepsiCo has many star segments, which make sense because it is one of pepai world largest beverage and food processing corporation. Your email address will not be published.

Cash cows are considered to be those segments which are operating in low industry sales growth rate and have high market share.

The company has to spend millions of dollars on brand awareness and promotional activities in order to maintain its market share. The small market share obtained by the organization makes the future outlook for the product uncertain, therefore investing in such domains is seen as a high-risk decision.

Since the product is not expected to bring in any significant capital, pepsii investment is seen as a wastage of company resources, which could be invested in a Question mark pepei Star category instead.

BCG Matrix also is known as the growth-share matrix is used by organizations to classify their business units or products into 4 different categories: Products or Business Units which hold a high market share and matriix also considered to grow in the future are positioned as Stars. These products have the potential of being positioned as cash cows in the future owing to the industry growth prospects.

The investment strategy for these products has to be very well thought through by the management as bct are chances that these businesses might not yield any profit for the organization.

Those segments fall into the category of stars, which operates and compete in high sales growth industry and have high relative market share.

Corporation distributes its products in two hundred countries matriz the globe. Its main products are, breakfast bars, energy drinks, coffee drinks, snacks, soft drinks and sports nutrition. Products which are market leaders in their specific industry and their industry is not expected to see any major growth in the future are considered as Cash Cows. Amid falling sales of aerated drinks as consumers shift to healthier drinks, Pepsico aims to double the Tropicana business by These are low growth or low market share products and have very few chances of showing any growth.


Diet Sodas, once seen by consumers looking to cut calories as an alternative to traditions sodas, are losing their fizz. In this BCG matrix, we will talk about different brands of Pepsico which over the years have seen a fall in market share due to changing market scenarios and also brands which saw exponential growth in their market share. Leave a Reply Cancel reply Your email address will not be published.

According to BCG matrix; Question mark are those segments which, operate in high sales growth industry and have low relative market share. PepsiCo has 6 division, each segment operate in distinct industry or geographical region. Because of stiff competition from Coca-Cola and changing customer preferences towards healthy and low-calorie drinksPepsi is seeing a shift from STAR quadrant to Dogs quadrant.

However, despite the enormous product line and range, corporation core pepei focus is on Beverages. One of the tool is BCG Matrix. PepsiCo annual report. Declining carbonated soft drinks segment share due to increasing demand for low calorie and healthy oof and snacks is what is attributing the diminishing sales of Pepsi brand.

PepsiCo has its own distribution network and bottling manufacturing bcf. QFNA share of revenue was reported 3. This framework was designed by a private consulting agency located in Boston, namely, Boston consulting group.