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    Pestle Analysis by Pepsico

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    Pratham Tadasare
    PepsiCo analyzes the political, economic, social, technological, legal, and environmental factors (PESTLE) that impact its global operations. Politically, Pepsi must comply with regulations in various markets and adapt to changes. Economically, Pepsi was impacted by the 2008 downturn but saw increased beverage sales as people socialized at home. Socially, Pepsi tailors its marketing to different cultures and connects with consumers. Technologically, Pepsi integrates new technologies like social media to engage consumers. Legally, Pepsi faced issues like a product recall in India over contaminated water. Environmentally, these factors do not greatly impact Pepsi's business.

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    Pestle Analysis by Pepsico

    Uploaded by

    Pratham Tadasare
    9 views2 pages
    PepsiCo analyzes the political, economic, social, technological, legal, and environmental factors (PESTLE) that impact its global operations. Politically, Pepsi must comply with regulations in various markets and adapt to changes. Economically, Pepsi was impacted by the 2008 downturn but saw increased beverage sales as people socialized at home. Socially, Pepsi tailors its marketing to different cultures and connects with consumers. Technologically, Pepsi integrates new technologies like social media to engage consumers. Legally, Pepsi faced issues like a product recall in India over contaminated water. Environmentally, these factors do not greatly impact Pepsi's business.

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    PepsiCo analyzes the political, economic, social, technological, legal, and environmental factors (PESTLE) that impact its global operations. Politically, Pepsi must comply with regulations in various markets and adapt to changes. Economically, Pepsi was impacted by the 2008 downturn but saw increased beverage sales as people socialized at home. Socially, Pepsi tailors its marketing to different cultures and connects with consumers. Technologically, Pepsi integrates new technologies like social media to engage consumers. Legally, Pepsi faced issues like a product recall in India over contaminated water. Environmentally, these factors do not greatly impact Pepsi's business.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    9 views2 pages

    Pestle Analysis by Pepsico

    Uploaded by

    Pratham Tadasare
    PepsiCo analyzes the political, economic, social, technological, legal, and environmental factors (PESTLE) that impact its global operations. Politically, Pepsi must comply with regulations in various markets and adapt to changes. Economically, Pepsi was impacted by the 2008 downturn but saw increased beverage sales as people socialized at home. Socially, Pepsi tailors its marketing to different cultures and connects with consumers. Technologically, Pepsi integrates new technologies like social media to engage consumers. Legally, Pepsi faced issues like a product recall in India over contaminated water. Environmentally, these factors do not greatly impact Pepsi's business.

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    PESTLE ANALYSIS BY PEPSICO

    PepsiCo is the largest selling beverage the world over, of course after its arch rival Coca Cola. It
    accounts for a 37% share of the global beverage market, and therefore they need to understand
    every country’s market in order to stay in line with their PESTLE situations.

    Pepsi is a big brand, currently holds the 23rd place in the Interbrand’s report of the World’s
    Leading Brands. Their advertisements feature major celebrities and athletes like David Beckham,
    Robbie Williams, Britney Spears, and Michael Jackson etc.

    Their market reach is also very diverse, as they’re present in almost every country from the US
    to New Zealand. Their PESTLE analysis is given below:

    Political:

    Pepsi is a non-alcoholic beverage and is therefore regulated by the FDA. So, they’re supposed to
    maintain a firm standard of the laws set out by the FDA with consistency. Also, many different
    markets across the world have different set of regulations that are either relaxed or are stringent.
    There is competitive pricing by Pepsi’s competitors and that is one factor that Pepsi must always
    keep in mind. The political scenario also matters greatly as there can be some civil unrest in
    certain markets or due to inflation the sales of the product can fall. Most importantly, cross
    border situations are starkly different therefore Pepsi must stay in line with all those policies and
    changes so that they can adapt to all those changes accordingly.

    Economic:

    As the recent economic downturn has plagued the economy, companies had to restructure their
    sales and marketing campaigns greatly. Also, with diminishing profits they had to undergo
    downsizing internally and re-think upon how to penetrate the market. Economic conditions have
    the highest influence on a business, regardless of what trade it is in. Though, in Pepsi’s favor, the
    economic downturn that started in 2008 resulted in increased sales of its beverages mainly as
    people were being laid off from jobs, they were spending time with friends and family or at
    home.

    Social:

    Social factors greatly impact Pepsi, as it’s a non-alcoholic beverage it must remain in line with
    the strict and stark differences of cultures the world over. Also, Pepsi must communicate its
    image as a global brand so that the people can associate it with themselves as something that
    connects the world together. Usually, the social implications are seen in marketing campaigns for
    example certain countries have religious festivals, so Pepsi must keep in line with all those
    festivals in order to understand the psyche of their market and how they can cash upon the
    opportunity.
    Technological:

    With the advent of the new age in technology, companies have completely integrated themselves
    with all the recent changes that have taken place. To mention a recent trend that has greatly
    picked up and something that almost every business is turning toward is social media. The social
    media explosion has allowed for increasingly interactive engagement with the consumers with
    real time results so Pepsi must stay ahead of all the developments that take place with keeping in
    view how the youth of today utilizes technology for their benefit and how can Pepsi reach them
    in order to keep on increasing brand recall and brand engagement.

    Legal:

    There can be many legal implications upon the beverage industry. I would cite one very famous
    incident took place in India, where Pepsi was accused of using contaminated water, given a lab
    test that was done upon the water flowing into the Pepsi factory that was located nearby an
    industrial estate. A massive recall was issued for the products from shelves and then the product
    was tested costing the company many billions of dollars upon the tests as India is a very major
    market.

    Environmental:

    These factors can affect Pepsi, but not immensely alter its trade and profit generation as these
    factors affect agri-businesses much more directly.

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