BCG Matrix of Pepsi

RIPHAH INTERNATIONAL UNIVERSITY
AL-MIZAN CAMPUS
Name: Muneeba Sharjeel
Sap ID: 54177
Assignment No: 4
Pepsi BCG Matrix and SWOT
Pepsi BCG Matrix
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Table of Content:
1. Introduction:.........................................................................................3
2. Background of Pepsi:...........................................................................3
3. Pepsi BCG Matrix:...............................................................................3
3.1. Market Growth Rate:......................................................................3
3.2. Relative Market Share:..................................................................4
4. Components of BCG:...........................................................................4
4.1. Cash Cow:......................................................................................4
4.3. Dogs:..............................................................................................5
4.4. Stars:..............................................................................................5
5. Swot analysis of PepsiCo:....................................................................5

5.1. Strengths:.......................................................................................6
5.2. Weaknesses:...................................................................................6
5.3. Opportunities:................................................................................6
5.4. Threats:..........................................................................................6
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1. Introduction:
Pepsi Cola has the best product that any brand can have in the category they are in.
In this assignment I will discuss the BCG matrix of Pepsi's beverage business to
understand which segments of the product mix are driving growth and the potential
areas of future growth and opportunity for the brand.
The BCG Matrix is a tool to help marketers determine where they should spend
their money to maximize profit. BCG stands for Boston Consulting Group. Every
business needs a marketing plan. Without a plan, you will waste money, miss
opportunities, and confuse people with things they don't care about.
2. Background of Pepsi:
Pepsi-Cola was created by Caleb D. Bradham in 1876. The drink once proved so
popular that in 1902 Bradham incorporated the Pepsi-Cola Company. After
multiple years of moderate prosperity, the company faced hard times after World
War I. It was reorganized and reincorporated several times in the 1920s.
3. Pepsi BCG Matrix:

If you have visited a store ever that sells Pepsi products, chances are you've noticed
a number of familiar logos. The most recognizable ones are likely to be Lay's
potato chips, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, and Quaker
Oats.
3.1. Market Growth Rate:

The market growth rate of PepsiCo was 5.25% in the second quarter of 2022.
3
3.2. Relative Market Share:
PepsiCo's market share in U.S carbonated soft drinks was 25.9 % in 2022.
4. Components of BCG:
BCG Matrix has four components:
Cash Cow
Question Mark
Dog
Star
Cheetos Frito lay 7up Gatorade
Market share 86.97% 72.4% 15% 80%
Market growth 67% 80% 20% 50%

rate
4.1. Cash Cow:

For the company, Gatorade is undoubtedly the cash cow 80% market share and
50% market growth rate.
The product requires a little investment to maintain its market share, as its sales
don't fluctuate significantly with new products.
4.2. Question Marks:
Frito lay is Question mark with 72.4 % market share and 80% growth rate.
Question mark is a product which shows low market share and high growth rate.
Question marks are new products need huge cash to maintain its share.
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4.3. Dogs:
7up is a dog product 15% market share and 20% market growth rate.
These are low growth or low market share products. There are few chances that
they will be profitable, so investors must be careful to decide whether to invest in
such companies.
Investing in these businesses requires a good understanding of their strategies and

prospects. Likely, these businesses won't pay much of a return for your money.
4.4. Stars:
Cheetos has 86.97% market share. And 67% market growth rate.
The organization's stars are the products or business units with high market share in
high-growth industries. They generate cash but required huge investment. If this is
successful then it will become cash cows.
5. Swot analysis of PepsiCo:

Swot stands for strength, weaknesses, opportunity and threats related to any
business.
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5.1. Strengths:
Strong Brand Recognition
Strong Leadership
An Efficient and Well-Performing Supply Chain
Strong Marketing and Sponsorships
Customer Loyalty
Strong Financial Position
5.2. Weaknesses:
Unhealthy Perception of PepsiCo’s Products
PepsiCo’s Involved in Numerous Lawsuits
Over-dependence on Carbonated Drinks
They don’t always get it Right with Their Marketing
5.3. Opportunities:
E-Commerce and Online Customers
Health and Organic Foods/ Beverages Market
Consumers in Developing Markets
5.4. Threats:
PepsiCo Threats
Changing Customer Preferences
Intense Competition
Changing Government Regulations

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RIPHAH INTERNATIONAL UNIVERSITY

Name: Muneeba Sharjeel

Sap ID: 54177

Pepsi BCG Matrix and SWOT

Pepsi BCG Matrix

3.2. Relative Market Share:..................................................................4

5. Swot analysis of PepsiCo:....................................................................5

3. Pepsi BCG Matrix:

3.1. Market Growth Rate:

Cheetos Frito lay 7up Gatorade

Market share 86.97% 72.4% 15% 80%

Market growth 67% 80% 20% 50%

4.1. Cash Cow:

4.2. Question Marks:

Investing in these businesses requires a good understanding of their strategies and

5. Swot analysis of PepsiCo:

An Efficient and Well-Performing Supply Chain

Strong Marketing and Sponsorships

Strong Financial Position

PepsiCo’s Involved in Numerous Lawsuits

Over-dependence on Carbonated Drinks

They don’t always get it Right with Their Marketing

Health and Organic Foods/ Beverages Market

Consumers in Developing Markets

Changing Customer Preferences

Changing Government Regulations

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