Answer:
1) The target market of the Malaysia can be segmented into youngster and old folks. As we knew, the old folk doesn’t like such a sweet drinks, they rather to drinks some beverages which is healthy for them. On the other hand, awareness of body health of youngster is low, they willing to drinks any kind of drinks as long as it is nice for them.
2) A) Bargaining Power of Supplier
· A few large suppliers – pepsi only can choose the supplier from few options.
· Switching costs are high – may spend more time and energy to search for new supplier.
· High power of brands – fully dependency on the powerful supplier
B) Intra- Industry Rivalry
· Coca-cola
· Players have similar strategies – using the same marketing strategies such as hiring famous musicians as their ambassador.
· Not much of product differentiation – carbonated soft drinks/ same marketing strategies
· Variety of carbonated soft drinks – many same type of product in the market.
C) Bargaining power of buyer
· Buyers are price sensitive – consumer may look for cheaper products.
· Product not strategically important to customer – since it’s not a healthy drinks, consumer may concern about their body by stop drinking.
· Low switching cost – buyer can easily choose their desired product anytime and anywhere.
· Product can be replaced – buyer may change their mind to choose other type of drinks like isotonic drinks which recover their water loses in their body.
D) Threat Substitute
· Healthy drinks – organic drinks
· Isotonic drink – 100Plus
· Coffee – oldtown white coffee
· Juice – apple juice, orange juice
E) Threat of new entrants
· Distribution channels – middleman is vital while pushing marketing from producer to consumer.
· Retail distribution – front-line to face consumer, if retailer not cooperate with Pepsi, consumer may abandon the product.
· Technology & machinery – the more advanced the equipment, the more quality of the product. But, suitability of equipment should be taking into consideration.
· Human Resources – the right personnel on the right position would produce the better outcome or output.
· Government policy – any changes of the rule and regulation may lead the company to adapt themselves to follow the policy. Such as corporate tax increase lead company think about where to decrease their cost of producing the product.
· Culture – while going through promotion, company may consider about the acceptance of consumer as any gender or racial discrimination in the advertisement may lead the anger for citizen.
