Marketing Strategy.docx

Marketing strategy The main objective for the marketing strategy is to focus on the strategic actions of Pepsi Company towards the target market that it serves. (Hitt, 2011). The company needs to direct its strategic plan to the target market. This Pepsi Company will achieve this by customizing their product to fit their potential market. They can also achieve this by tapping into new markets or developing new products. (Hanlon, 2013). With the marketing strategy, the company needs to identify both the existing and the new market to be explored. Since the Pepsi Company deals with a non-alcoholic drink, it has been noted people who do not drink alcohol are the potential customers. The new market is a health-conscious market segment and the existing product is a beverage and non-alcoholic. Therefore marketing to health-conscious market will good use of market penetration strategy while non-alcoholic customers will make use of development strategy. The marketing strategy helps Pepsi Company to bring to the market the best product and help to tackle its competitors well. Operation strategy The operation strategy aims at addressing the distribution challenges and operating efficiency. The company needs to understand the foundational basis for operations strategy will be appreciated by with best strategic framework. The operational strategy if related to human resource, the actions aims at training employees to be flexible enough to adjust their capacity to avoid difficulties in the manufacturing process. The human resource in every step of production should be trained to do multiple works. Financial strategy Pepsi Company has striven to maintain its leadership standard by minimizing the cost. These costs relate to operating cost, which would decrease if the efficiency is achieved. Also, the cost of raw materials that are used by the Pepsi Company in the processing of the products. The large volume of production at the low cost has made Pepsi Company enjoy the economies of scale. This has also been achieved due to the good strategic partnership with the suppliers. Another aspect of decreasing cost comes with the sources of financing the business firm. The business firms are financed by equity or by debt. There are risks that a company these sources of finances. The risk of equity includes the business risk, which is the risk that would be operating at a loss. The equity risk is because of higher rates of return required by investors. The debt financial risk entails the money that cannot be paid on time. This risk is calculated through the interest rate. When the risk is high the interest rate will also be high.