Pepsico Stakeholder engagement and Marketing PDF

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Stakeholder engagement in PepsiCo and how it contributes to marketing...

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PEPSICO STAKEHOLDER ENGAGEMENT AND MARKETING IN PEPSICO By Dr Kennedy Amadi.PhD 1.Introduction. The Marketing strategy is a long-term prospective approach to planning with the ultimate goal to gain a sustainable competitive advantage. Each company, regardless of its size, must have defined objectives in order to develop the business. These objectives will help the company to remain in the growing competitive market and also to increase sales. The marketing strategy is only the key to define your goals so that you can direct your efforts in the right direction. A well-defined strategy should not it will only help you achieve your goals, but it will also help you achieve your clients ' goals and expectations. A marketing strategy usually consists of a few pre-determined points for your institution. Most important the organization's short-and long-term objectives. It is followed by an analysis of the organization plans to establish its activity. For a service-based industry for relevant customers and expanding customer dominance is of the utmost importance. In addition, make a SWOT (strengths, weaknesses) , analysis of services provided or products sold will help the organization to analyze its environment. A successful marketing strategy will create a win-win situation for the customer and the organization. It goes without saying that customer satisfaction will in turn increase the value of the organization's brand and create an advantage on the contender. It helps to create a realistic approach plan that defines the methods to achieve the objectives set. The company can look for ways to implement the plans to make the process very efficient once the strategy and plans are ready. Most successful commercial establishments make optimal use of stakeholder engagement marketing strategy to increase benefit. The beverage industry accounts for a significant share of total sales, both domestic and international, worldwide. With the continuous and dynamic demand for various drinks, having an exact marketing strategy is quite important for the beverage industries. An example for such successful implementation of the marketing strategy is PepsiCo. Contributes to the highest sale of soft drinks worldwide. In 1965, Donald Kendall, the CEO of Pepsi-Cola, and Herman Lay, the CEO of Frito-Lay, recognized what ignorance "a marriage made in heaven", a single company that delivers perfectly salted snacks served alongside the favorite cola on Earth. His vision led to what quickly became one of the largest food and beverage companies in the world: PepsiCo.(PepsiCo,2019) Operating in more than 200 countries, PepsiCo, the parent company of Pepsi, has been the leading company in the food and beverage industry with over 100 years of experience in the market. Pepsi is a mass market product that uses undifferentiated target strategies to compete and increase sales. In the non-alcoholic beverages market, Pepsi Cola has positioned itself as a young, dynamic and passionate brand that challenges conventional things. This is explained by Bhasin, H (2019) According to Bailey,S(2019) ,Pepsi-Cola Company manufactures Pepsi-Cola, Pepsi Diet and Mountain Dew. Frits-Lay products include corn fries, Lay fries, Cheetos with cheese, fries and rolls of gold. PepsiCo was expanded with The acquisition of Tropicana in 1998 and merger with Quaker Oats in 2001. According to Forbes (2019) PepsiCo is a food and beverage manufacturer specializing in snacks and soft drinks. One of PepsiCo's main competitors in the beverage industry is Coca-Cola (KO). Other

competitors in the area of basic necessities are Dr Pepper Snapple Group( DPS), Coca-Cola Enterprises (CCE) and Reed. PepsiCo, Inc. is overtaking the Coca-Cola Company on Wall Street. PepsiCo's shares have gained 2.95% in the last two years and 30.6% in the last five years, compared to -1.45% and 9.25% for Coca-Cola. (Mourdoukoutas, P.2018).

II. IMPACT OF PEPSICOLA STAKEHOLDER ON CHANGE PROJECT. 1.1 Stakeholders A stakeholder is an individual, group or organization who is impacted by the outcome of a project. They have an interest in the success of the project, and can be within or outside the organization that is sponsoring the project. Stakeholders can have a positive or negative influence on the project. As explained by Landau, P. (2017), stakeholder is a person, group or organization that is affected in the outcome of a project. They are interested in the success of the project and may or may not be a member of the sponsoring organization. PepsiCo's fast for responding to stakeholder interests is integrated into the company's global citizenship policy, which serves as the leading fast CTI for Corporate Social Responsibility (CSR). (Greenspan,R.2017) 1.2 Mendelow Matrix: This is based on power and interest allows us to determine which stakeholders are incredibly important, with a high power and interest that we would have to lead closely, investing a lot of time and resources. For example, your boss is likely to have the power to influence your work and also a great interest in whether it is a success, technical or external organization. It is a priority to keep these stakeholders in close contact and to keep them informed on an almost daily basis. However, stakeholders with low power and interest (e.g. local community or media) need to be monitored and a minimum of effort made in terms of time and money. The other two quadrants identify those stakeholders who need to be satisfied (high power, low interest) a.High power, very interested people (close driving): seeks to involve these people, make the best efforts to satisfy them. As stakeholders, investors are interested in PepsiCo's higher financial return. shareholders significantly affect the company through the availability and cost of capital. PepsiCo believes that its focus on consumers / customers, communities and employees contributes to optimal financial performance(Greenspan,R.2017) While the industry is oriented towards a cleaner label and healthier choices, PepsicCo continues to develop its portfolio of brands, good that at a much slower pace than that of many players, in an effort to find growth and avoid stagnation. This year, PepsiCo had a low yield due to its inability to stop the bleeding from its North American drinks. Its main products under the brand Pepsi which have lost a significant share, while niche brands like KeVita - which has increased by 50% in sales to the first quarter-are not yet quite large to help PepsiCo return to growth. To remedy this situation, the company has increased its spending in the media to support its tail products, but warns that the effects of increased investment could take several neighborhoods to show ( Fitzpatrick, A 2018) . As emphasized by Fitzpatrick, A. (2018) this pivot was dictated by changing consumer tastes. Over the years, PepsiCo has diversified to offer healthy non-carbonated drinks, snacks, sauces and juices in response to the move away from sweetened carbonated drinks and artificial ingredients by younger consumers. Today, about half of the volume of PepsiCo's drink is generated by low-calorie or zero-calorie drinks. The consumer giant now divides its portfolio into three main product categories: "Fun For You", "better for you" and "good for you", with healthier products making up almost half of its current portfolio.

In a lawsuit filed Tuesday, the Center for science In the public interest (CSPI), a consumer advocacy group, said that PepsiCo deceived consumers by marketing their naked drinks as

healthier than they really are. In addition, CSPI claims that naked juices deceive customers by making them believe that drinks are full of super nutrients while the dominant ingredients are "cheap and nutrientpoor"juices. Juice Kale Blazer, for example, is primarily Orange and apple juice, despite packaging and marketing that focuses on green-leafy images.(Taylor, K.2016) b.High power, less interested (stay satisfied): put enough work with these people to lose satisfied, but not enough to get bored with your message. According to Greenspan,R (2017),Governments are important for imposing rules and requirements in PepsiCo's business. This group of stakeholders is interested in ensuring that companies comply with the rules. The global legal team and PepsiCo's public relations team address government issues. As stated by O’Driscoll,S(2007),A former employee has stated that Pepsi misclassified a huge amounts of poorly concentrates imported from its plant in Little Island, Cork, to avoid $ 100 million in U.S. taxes. Judge Charles Brieant rejected Pepsi's motion for the case to be dismissed after reviewing the allegations made by former Pepsi distribution analyst Scott Winslow. Mr. Winslow is accepting the case under the act of False allegations of the united States that allows alleged complainants to take a case on behalf of the government of the united States if the government has lost money due to fraud. c.Low power, very interested people (stay informed): inform these people properly and talk to them to make sure that no major problems arise. These hearings can also identify areas that could have been improved or overlooked. PepsiCo believes that human resources are important determinants of the company's long-term growth. This group of stakeholders is interested in professional development and fair compensation. Workers from At least five PepsiCo bottling plants in China are taking part in protests against an acquisition agreement. Tingyi degh-who operates noodle snapshot and Master Kong brand drinks in China-entered into an agreement with PepsiCo earlier this month. One worker who took part in the action stated that BBC staff were "taking leave together" to defend their legal rights. PepsiCo spokeswoman said that their contracts would be honoured. In a brief statement, a Pepsi spokeswoman in Beijing said: "PepsiCo is a responsible employer. We have high commitments on our staffers' rights." "We are holding positive communications with our employees."(BBC,2011) d. Low power, less interested people (Monitor): do not take these interest groups with excessive communication, see if their level of interest or power changes.(Oxford College of Marketing ,2019) According to Reuters (2014), PepsiCo, pledged to take steps to stop illegal land confiscations by suppliers of raw materials such as sugar and palm oil, as it seeks to improve social and environmental standards. PepsiCo said in a statement that it had worked with Oxfam and other outside experts on a new policy to prevent suppliers from moving legitimate owners. III. STAKEHOLDER ENGAGEMENT PLAN. 2.1 PepsiCo Engagement. According to PepsiCo (2018),PepsiCo appreciates the views of its stakeholders, including customers, consumers, shareholders, employees and a wide range of organisations, and the contribution they receive is a cornerstone of the way in which they have developed, implemented and evolved their performance for the calendar year 2025 (PWP). Commitments These commitments help PepsiCo better understand the new challenges of sustainable development, better focus its efforts and help PepsiCo create value for its company and society. PepsiCo uses a variety of mechanisms to gather feedback from its stakeholders, including bilateral meetings and participation in stakeholder networks, outreach programs, webinars and partnerships on a wide range of topics. It is

important to work with a wide range of stakeholders, including organizations that criticize their activities, to understand and respond to their concerns. Meetings

Throughout 2017, members of their management team met with a significant number of their shareholders and other stakeholders to discuss their PWP 2025 program, which provides a dynamic framework to meet the demands of a rapidly changing business environment, while meeting the priorities of their stakeholders. The organization asked for feedback on where PepsiCo can make the most impact and how it can be supported through strong corporate governance and management practices. While stakeholder perspectives varied, there were some consistent issues. In particular, stakeholders emphasized that PepsiCo-as a world-leading company-should use its strengths in collaboration with others to help reshape social and environmental systems for the benefit of society and PepsiCo's business. PepsiCo believes it can have a greater impact on a good number of these issues by working with governments, non-governmental organizations, communities and businesses to make progress. As explained by PepsiCo(2018),the organization participates in a wide range of initiatives that focus on some of its key issues, including: Nutrition labeling: PepsiCo collaborates with the International Choices Foundation.The choices program is a multi-stakeholder initiative to develop an interpretive nutrition logo to help consumers easily choose nutritious foods and help the industry improve its products. For example, it is working with the Government of Singapore to put a healthier nutritional logo on the appropriate products in its portfolio in this market. Climate Change: PepsiCo is a founding member of Climate Leadership.The council is calling for a consensual solution on climate-including a carbon tax that is gradually increasing and has no effect on incomes-that aims to declare our environment. Human rights: following the reactions of several stakeholders, including the Interfaith Center for corporate responsibility (ICCR), it plays an active role in the initiative of the Consumer Goods Forum to fight forced labour through its Social Sustainability Committee. With the publication of the principles of the industry priority on forced labour, the Social Sustainability Committee aims to encourage global collaboration between retailers and manufacturers to identify and address the major social sustainability issues for the industry, with an emphasis on ensuring that every worker has freedom of movement, you do not have to pay for a job, and you must not be indebted or coerced to work. Packaging: PepsiCo is a partner in the New Plastic Economy initiative and the Trash Free Seas Alliance. Through these commitments, collaborates with a wide range of stakeholders working together to develop sustainable packaging worldwide, including improving recycling systems designed to ensure that our packaging. Understanding PepsiCo's goals Quickly develop an integral part of the influence on participation and a program that: Enhance PepsiCo's credibility and resonance in the short and long term

Educate and increase understanding of PepsiCo's position on key issues Ensure that the current and past perception of PepsiCo's trajectory is validated and amplified This program will deliver on PepsiCo's strategic objectives (Loving,A.2012) Engaging Students: PepsiCo recycling Rally program aims to involve K-12 students in resource recovery and proper disposal. The free program allows elementary, middle and secondary schools to connect to each other, access educational tools and be rewarded for recycling. Participating schools earn points by tracking their recycling rates-which they can exchange for rally recycling materials, including school supplies such as lunch boxes. Schools also register to win PepsiCo cash Prizes. The company launched the recycling rally in 2010 and now has thousands of students across the country. Nearly 4,000 schools have recycled more than 90 million boxes and bottles over the past eight years, and PepsiCo has awarded more than $ 1 million in prizes and incentives. In the final phase of the program, PepsiCo launched more than 250 free online resources to help teachers raise their students ' awareness of recycling. The new recycle Rally resource library includes Deford plans and games, kick-off event guides, televisions and recycling units, as well as printable document templates to spread the word. The resources are also designed to help teachers and rojas recruit staff to participate in their retraining efforts. “Resources aimed at helping schools recycle more should be available to all teachers, faculty, students and staff,” Tom Mooradian, manager of environmental sustainability at PepsiCo, told TriplePundit. “Through Recycle Rally, PepsiCo is proud to equip schools with educational resources that are easy and free to use, helping to drive meaningful change within their communities.”(Mazzoni,M.2018) 2.0.B Methods Used To Measure Stakeholder Perception. a.Accountability: Large companies like PepsiCo publish a lot of documentation detailing their progress towards sustainability goals and aspirations. Companies record information and can be held accountable, and that can only be a good thing, but they know that they cannot expect consumers in general to go through long sustainability relationships. However, there is a growing perception that consumers are interested in learning more, and effective communication of sustainability values and performance to the public has become a critical challenge. "One of the things we're still learning is commitment to consumers," says Dan Bena, Senior Director of Sustainable Development at PepsiCo. "More than a billion times a day, someone eats or drinks a Pepsi product in the world. It is an incredible opportunity to engage these consumers in a cause, whether it is large-scale sustainable development, health and safety, or water." PepsiCo's latest innovation in response to this challenge is the launch of its how will we (www.howwillwe.com) microsite, where the company shows sustainability initiatives and values that inform your company. The pounds its corporate sustainability report, 2014, the owner of Frito-Lay announced that its sustainable development programs have reached US $ 375 million since setting its goals in

2010, " demonstrating that investments in sustainable development are mutually beneficial to business and society." b.Demonstrating sustainability: Showing investors that sustainability is good for business remains an essential element of rapid sustainability. It is equally essential to demonstrate to consumers the values of sustainability, but buyers – unless they are also investors-will not be motivated by the fact that sustainability is good for the end result. You will be interested in the broader benefits that PepsiCo's sustainability initiatives bring and the assurance that the company is not doing harm. While the expectations of a wide range of stakeholders, investors and consumers are met, it could be said that they exceed others, and of these two groups, it could be postulated that consumers are ultimately the most important group. This would certainly be the case if it could be determined that each consumer made their purchasing decisions based on the company's sustainability criteria, but it certainly is not. Indeed, there is a strong parallelism with the investor community, namely that consumers represent a wide range of sustainability commitments, awareness and concerns.(Cooper,B.2015) c.Innovating More Nutritious Options PepsiCo and other food and beverage companies need to increase their supply of nutritional options to address non-communicable disease risk factors and take advantage of consumer demand for nutritious products. PepsiCo's goal is to reduce the amount of ORL, sodium and added sugars in its products. d.Consumer Information Consumers want more transparency about what they eat. In addition, governments and public health advocates are calling on PepsiCo and other food and beverage multinationals to provide more information to consumers so that they can make decisions about what they consume and how it fits into their diet. e.Access to Affordable Nutrition While the world is facing increasing rates of obesity, malnutrition, hunger and access to nutrition, global challenges remain. As part of the PWP 2025 program, we intend to provide access to at least 3 billion nutritious food and beverage songs to marginalized communities and consumers, a goal we are actively pursuing. (Cooper,B.2015) III. STAKEHOLDER COMMUNICATION. 3.1 Prioritization and medium One of the important factors to take into account will always be the level of investment and time that each medium demands. The gold standard for communication excellence will always be two people, face to face, communicatin...