Medicare: Coca-cola and Value Proposition Essay

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Executive Summary
This report is a major group assignment for MKTG101, a unit that is part of the Diploma courses at SIBT, semester 1, 2013. It is a based on research initiated for the Group Presentation assignment. The Carbonated Soft Drink (CSD) industry, which is widely believed to be a considerably profitable industry, is virtually impossible for it to be dominated by only one company. As a result, PepsiCo who vies for the "throat share" in world's CSD industry tries to differentiate its product in order to satisfy the customers' tastes and desires. Pepsi Max is one of the drinks introduced by PepsiCo into the CSD, offering greater flavour and at the same time zero calories. Pepsi Max experienced a number of challenges after it was introduced into the market which will be discussed in the report. The pivot of this report is an overall analysis of Pepsi Max. It includes the basic analysis of both the company and product background overview, detailed analysis of the relevant market from different perspectives involving size, competitors and product life cycle stage, objective SWOT analysis for product, exploratory analysis of customer traits and an overall analysis of position strategy and value proposition.

2.Table of Contents

Overall analyze and research of Pepsi Max 3 1. Company and product background 4 1.1 Company background (PepsiCo) 4 1.2 Product background (Pepsi Max) 5 2. Analysis of the market 5 2.1 Market Size 7 2.2 Market Competitors 7 2.3 Product Life Cycle Stage 8 3. SWOT Analysis 7 3.1 Strength 3.2 Weakness 3.3 Opportunities 3.4 threats 4 Customer Traits 8 5 Position Strategy 8 6 Value Proposition 8 Conclusion 9 Bibliography 9

Overall analysis and research of Pepsi Max
1.Company and product background
1.1 Company Background
Pepsi was founded by a man named Caleb Bradham. It all started in the summer of the year 1898 when it was so hot and Caleb decided to start an experiment in creating the perfect drink that could satisfy the needs of the customers. Caleb succeeded and therefore created “Brad’s drink”. Without knowing that the drink would be so popular, Caleb then decided to name the drink, Pepsi-cola(sirpepsi.com, 2013).

Pepsi cola was then patented in the U.S patent office on June 16, 1903. The small business turned into having franchises in 24 states in just 4 years. And by the year 1907, more than 100.000 drinks were sold. Caleb’s success was extraordinary. He was mentioned as the possible candidate for governor. Pepsi dominates the market for the whole 17 years. But then, world war 1 strikes and made cost of production so high that Caleb needs to risk the business because one of the main ingredients needed to make the drink was sugar and sugar price rose to a relatively high significant price that it is hard for him to mass produce Pepsi-cola again. After 3 years trying to gamble his business, it seemed like the business is going to come to an end. Not until long, in 1921 a successful candy manufacturer named Charles G. Guth who was also the president of Loft corporate came by and thought that Pepsi-cola still have the opportunity in the future. After changing the owner 5 times and after 15 years without that much profit, Pepsi-cola managed to rise again(Ibid.).

1.2 Product Background
PepsiCo was successful and had operated in Australia an also in New Zealand for such a long time. Due to people’s concern of drinking soda which contains lots of sugar in it, Pepsi decided to create another drink which contains no sugar at all but still tastes good. Pepsi Max was then created. In the year 2009, Pepsi Max was the 19th billion dollar global mega brand for the PepsiCo. After the advertisements by the media on television featuring the slogan “Maximum taste, no sugar” it attracted more and more customers to buy and therefore increases the profit and sales of the
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