Republic of the Philippines

BATANGAS STATE UNIVERSITY

The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

General Directions
Accomplish this activity only using this format (Times New Roman, 12, Justified, Spacing 1.5). Kindly
upload your work (softcopy) with a file name (Last Name, First Name, Middle Initial) in our Google
classroom. Hard copy will also be submitted on or before the deadline.

PESTLE ANALYSIS
There are many companies the world over, that conduct PESTLE analysis on their brands in
order to ascertain strategies for the future or else to understand the market before launching them.
It is a fundamental tool of market planning and strategizing that must be carried out to comprehend
market trends and the systematic risks involved.
PESTLE analysis gives you an overview of the whole situation your business might be in.
Precisely, it is a bird’s eye view of the stimulus and the scenarios that surround your trade and your
business.
PESTLE, is an acronym in which each letter denotes certain factors for the study. These factors
affect the market in many ways and alter the way strategies are thought of and made. P stands for
political factors, while E stands for economic ones. S has to do with social factors in a country
whereas T sums up all the technological aspects of the market. L denotes legalities of the
environment and E accounts for the environmental aspects and its influence upon the nature of the
trade you’re in.

PEPSICO PESTLE ANALYSIS

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 each
and every country’s market in order to stay in line with their PESTLE situations.
Pepsi is a big brand, currently holds the 23 rd place in the Interbrands 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:

1. 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

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

markets across the world have different set of regulations that are either relaxed or are either
stringent. There is competitive pricing by Pepsi’s competitors and that is one factor that Pepsi has to
keep in mind at all times. 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 has to stay in line with all those policies and changes
so that they can adapt to all those changes accordingly.
2. 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.

3. Social:
Social factors greatly impact Pepsi, as it’s a non-alcoholic beverage it has to remain in line with the
strict and stark differences of cultures the world over. Also, Pepsi has to 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 has to keep in line with all those festivals in order to
understand the psyche of their market and how they can cash upon the opportunity.

4. 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 has to 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.

5. Legal:

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

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.

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

Source: https://pestleanalysis.com/examples-of-pestle-analysis/

Leading Innovations, Transforming Lives, Building the Nation