Essay - Pepsi and Ptstp Abstract This Paper Describes Pepsi's Superior Use...

Pepsi and PTSTP

Abstract

This paper describes Pepsi's superior use of PTSTP ***** justifies its continued ***** as a competitive tool.

Pepsi and PTSTP

Introduction:

***** Battle of the Cola Wars goes far beyond cola products. With the two leading players, Coca-***** and PepsiCo acting ***** parent companies that encompass a wide variety of foods and beverages, from water to chips ***** oatmeal, gone are ***** days when these two companies could count on their cola products to keep them in the leadership positi*****. PepsiCo has learned this lesson well. They have successfully used the Products Target Segmentation Targets Products (*****) process ***** new product development to go above ***** ***** what its founders *****'ve possibly imagined. And, it is through the use of PTSTP that *****y will continue to develop the innovative products ***** allow ***** strong growth in a saturated and well-established marketplace.

PTSTP: Pepsi's Strongest Competitive Tool:

PTSTP is an acronym for ***** Target Segmentation Targets Products. In th***** ***** product development process, ***** organization first surveys the existing ***** in the marketplace and then identifies the target markets they serve. They ***** look for segmentation within those markets. Once this is unders*****od, target segments that are not being *****d are identified and new products are developed to fill those niches. It is ***** process that has *****ed PepsiCo to remain an industry leader in a hyper-***** *****.

As Brady (2004) noted, "What d*****tinguishes PepsiCo from some competitors is an intense lack ***** sentimentality about its principal brands." This is an important concept. Where many manufacturers will take their cash cows and focus most of their efforts on maintaining these brands, ***** instead is constantly looking for the next star in their portfolio. Certa*****ly their core ***** are well maintained, but it is their continual product development that has seen them realize double-digit earnings growth in a m*****ture marketplace and ***** led PepsiCo to develop more than 200 product variations that it has added to its global portfolio.

As defined by the PTSTP *****, PepsiCo first identifies the ***** ***** in the *****, both their own and ***** competi*****r's. Those products are then identified as address*****g specific target *****. An understanding of the market segmentation is garnered, and ***** unfulfilled market segments are targeted for product development. An example of this can be seen in ***** Hispanic snack chip segment, ***** the United States.

********** Frito Lay division analyzed the current snack ***** *****. They found the market they were serving and then realized ***** there w***** a foreign-born ***** segmentation that was not being fully exploited. Snack chip manufacturers had failed to address the needs and desires of *****se consumers, for authentic snack chips. As such the company brought in Sabritas br*****s from Mexico. Be*****g careful not to damage sales ***** core brands, distri*****ion began in smaller retail stores, ***** Mexican dominated areas. With no advertising and minimal distribution, ***** of Sabritas brands, in the United States, were expected to exceed $100 million, in 2003, reach*****g