Question

How does PepsiCo create value?

(Value Creation Strategy) Please add refrences.

Thank you

Answer 1

Value is the ultimate goal that every industry or firm aims to attain in the process of its total procurement, manufacturing and distribution of goods and services. Many big firms have gained their economic and social status by creating super values for their consumers and for themselves. Let us discuss how, PepsiCo creates value.

                                    If we start from the core production process of PepsiCo, the most advanced technologies and operating systems are used in the operations of the sophisticated process in which PepsiCo creates its products. PepsiCo aims to attain sustainable production for its internal processes, which contributes largely in the generation of value for its customers. In order to increase the value for its customers, PepsiCo aims to produce it products in line with and maintaining the preferences of its various type of customers in the various locations and regions of the world.If we look in detail in to its type of produces in the Western countries in comparison to the products in the Asian countries, we will be able to see a huge difference in the taste and composition of the products. This is because, PepsiCo has ensued that the taste and composition of the products meet the preference of its customers of the various locations.

                                     The logistic services of PepsiCo and its delivery system is another critical machinery that adds further value to its produces. PepsiCo uses multiple product distribution system such as its stores are providing direct delivery to the retailers, which helps in bypassing many middle men and commission agents. This helps in creating value to its sales and produces. PepsiCo also directly transport the raw materials to its warehouses from the pickup places. This ensures that the raw materials are quickly and directly transported to the warehouses thereby leading to huge creation of value for the organization.

  If we look in detail in to its type of produces in the Western countries in comparison to the products in the Asian countries, we will be able to see a huge difference in the taste and composition of the products. This is because, PepsiCo has ensued that the taste and composition of the products meet the preference of its customers of the various locations.

                                     PepsiCo ensures that the marketing of its products is done in such a way the marketing knowledge of the products reach to the last person in the society, and it suits the desires of each and each individual in the society. Marketing and advertising are done in such a way that the common people are induced to like the branding of the product and wish to attain the services of the product and consume it. The most critical and important part of PepsiCo’s value creation index is its services. PepsiCo ensures that its ground level service to its distributors, retail agents and most importantly to the final root consumers is of the highest quality. PepsiCo ensures that the customer attains maximum value from the consumption of PepsiCo products so that the consumers are more than satisfied by the consumption of their products. This leads to a sense of good will among the people about the brand PepsiCo and their value and the total satisfaction level increased from the consumption of PepsiCo products.