Essay

1. What kind of things does Pepsi do in regards to research and development' PepsiCo's research and development refers to organized efforts to increase scientific knowledge or product innovation in communications, medicines, and space technology. PepsiCo gives to the community through the PepsiCo Foundation, the PepsiCo Community Affairs Department and PepsiCo divisions. The PepsiCo Foundation, PepsiCo and its divisions contributed approximately $26.4 million to nonprofit groups in 2002. The PepsiCo Foundation and its operating divisions gave grants to more than 1,000 community organizations, of which a significant portion were organizations championing diversity efforts. Organizations are also supported through gifts in-kind, such as product, premiums, printing, meeting arrangements, equipment donations, support of events, conventions, journals and meetings. The geographical area most at risk of HIV/AIDS impacts the health of people and of nations is Sub-Sahara Africa. As a company as PepsiCo with operations in Africa, PepsiCo actively works to address the associated health risk among its employees and in the community. As a global company and concerned corporate citizen, PepsiCo has joined with other businesses to fight HIV/AIDS on a worldwide basis. PepsiCo advise these vendors of PepsiCo's family companies' commitment to support minority economic development with respect to majority-owned companies and general contractors. PepsiCo encourages these suppliers to use minority and women vendors, distributors and qualified subcontractors as part of their service. PepsiCo also makes a great job on product innovation, such as "buying into the burgeoning industry through Pepsi Bottling Group (PBG, $23), the leading manufacturer and distributor in the U.S. of Pepsi's beverage brands. Bottlers are more exposed to the water business, since their fortunes aren't based on, say, how well Chester the Cheetah pushes Cheetos for Pepsi's Frito-Lay division. PBG, which is nearly half-owned by PepsiCo North America, is expected to reap some 40% of its domestic profit growth over the next few years to come from H2O. That could push profitability ‘surprisingly high'" suggests by Goldman analyst Marc Cohen in Lee Clifford's articles (pg.204). Therefore, Aquafina is named No. 1 best-selling brand of bottled water in The New York Times in 2003. 2. What are the existing products and services' PepsiCo's success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of its services by all employees. PepsiCo has hundreds of brands. PepsiCo's brands are available worldwide through a variety of go-to-market systems, including direct store delivery (DSD), broker-warehouse, and food service. There are five best known brands are: Frito-Lay Brands, Pepsi-Cola Brands, Gatorade Brands, Tropicana Brands, and Quaker Brands. The PepsiCo creates more new product lines to serve different tastes for the different kinds of customers in the market. That is also the successful strategy to keep the company running well in both domestic and international market. Almost each year the PepsiCo has the new products to introduce to the market. The website http://www.pepsico.com/company/history.shtml provides the whole list of the PepsiCo's new introductory products and events of each year from 1965 to 2003. For examples, Doritos brand tortilla chips are introduced and Pepsi enters Japan and Eastern Europe in 1966. In 1967, PepsiCo stock splits two-for-one. And Pepsi Generation advertising, "Come Alive! You're in the Pepsi Generation" campaign that named and claimed a whole generation (1963-67), introduces a new theme: "Taste that beats the others cold. Pepsi pours it on!" In 1969 Bold, modern Pepsi-Cola packaging using red, white and blue is introduced. "You've got a lot to live, Pepsi's got a lot to give," becomes the advertising theme. Frito-Lay introduces Funyuns brand onion flavored snacks. The PepsiCo's Mountain Dew changes its slogan to "Get That Barefoot Feelin' Drinking' Mountain Dew." In 1970, Pepsi introduces the industry's first two-liter bottle and Pepsi is the first company to respond to consumer preference with lightweight, recyclable, plastic bottles. The third Mountain Dew slogan appears "Put A Little Yahoo in Your Life" in 1973 and "Hello Sunshine" becomes the slogan for Mountain Dew in 1975. Pepsi Light, with a distinctive lemon taste, is introduced as an alternative to traditional diet colas in 1975. "Dew It to It," theme is incorporated to brand Mountain Dew in 1983. In 1984, Diet Pepsi is reformulated with 100% NutraSweet and Slice and Diet Slice, the first major soft drinks with fruit juice, are introduced. In 1992, Pepsi-Cola forms joint venture with Thomas J. Lipton Co. to develop and market tea-based drinks and Frito-Lay launches Sunchips, its first multigrain snack. In 1998, Pepsi-Cola introduces two-liter plastic bottle with built-in "grip handle" that makes it easier to grip and pour". Tropicana Pure Premium and Quaker Oatmeal launch the Heart and Soul Mates Support Network featuring nutrition tips, motivational messages and coaching advice, to help consumers turn healthy habits into life-long changes in 2003 and more changes coming. From those existing products and services, PepsiCo uses the new taste, new design look, new slogan, new themes, and new ideas to catch customers' mind to want and desire their products. 3. What are new products and services' According with Ira G. and Marthann E. Wilson (P. 3), "In our world, innovation is responsible for all the new things you need and want. It is responsible for all our technical and other advances. Hence, it is the motive power for all progress." In addition, according with Ira G. and Marthann E. Wilson (P.