Running head: RESEARCH MARKETING
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Research Marketing
William Reed
MKT/571
Roberto Cordero
August 21, 2018
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RESEARCH MARKETING
Part 1: Memo
To: Senior Vice President (SVP)
From: William Reed
Date:21st August 2018
Subject: Business Growth Overview Dataset Analysis
Summary Analysis
In this review, I have put more insight on the summary analysis completed by our new
market analyst. I have added a more detailed explanation of the significant areas of the increase
and decrease in revenue or types and category of the business. I have also analyzed the trends
that are evident regarding income and provided insights that will help the company formulate
marketing strategies to reverse the decline or spur growth. Lastly, I have given an additional
analysis that would help in building a marketing a goal or strategy.
Revenue Details
Checking the date numbers for the periods between January to June 2015 and January to
June 2016, revenue generated during this time frame increased although at a small rate from
2015-2016. Also, the revenue recorded in the three-time frames increased with most revenue
generated from the domestic sales. Domestic revenues are high and most robust, the average
increase is 87 percent of the entire business revenues. Therefore, it indicates a negative trend of
the international sales. There is no significant decline in the income of any customer class.
However, there is a small decline in the specific clients such as delta appliance which reduced by
5.3 percent. In overall, the company has shown an average gain, but there are chances it can be
more competitive and increase the profits. Ways to improve business profitability are provided
later in the additional analysis.
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Trends
The summary analysis portrays that the gross profits become an issue, especially with the
major customers as the figures reveal a significant decline in major customers and therefore
showing a negative gross profit percent. Although the gross profit budget bottom line remains
constant, a continuous negative percentage will affect the bottom line negatively. Also,
international sales are declining across the board when compared to the domestic. Initially the
domestic versus international sales split was 50-50 by lately the company is leaning more on the
local market and their split is 90-10. The reasoning behind international sales decrease is not
well explained but the analysis provides with several basics that can be provided to adjust. It's
important that the decline in the international sales can be caused by multiple factors which
include the political environment of the country, economic factors and so on.
Additional analysis
To revive the international sales, it’s recommended that the marketing department study
and analyze the global market trends. This will enable the company to know the best strategies to
be applied to boost the international market. Also, since the gross profits are almost equal in
either market, the increase in the global sales will improve the company’s total profits. A
company should set more appropriate and relevant goals which will maximize the reach of the
company and increase the number of the customers. Reaching more customers means the
company will add more profits and spur the competitive ability.
Yours faithfully,
Name
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Part 2
Marketing plan: Pepsi. Co
History: PepsiCo is mostly known to produce food and carbonated soft beverages such as Pepsi
Kona, diet Pepsi, mountain dew, Tropicana products and many more. The history of PepsiCo
date since 1893, Pepsi was initially begun by Caleb Bradham as Brads Drink. Later in 1898, it
changed its name to Pepsi Cola and 1961 to Pepsi. The company performed better, but in 1931 it
went bankrupt. The bankruptcy was spurred by losses incurred because of fluctuating sugar costs.
The Pepsi was bought by loft Candy business which dwelt on the production of foodstuffs. Pepsi
began reasonably well in the market. The company has introduced various products such as
Pepsi-Kona, and Pepsi One which has failed to hit the market and the immediately withdrawn. It
has been facing stiff competition from the major soft drink company such as Coca-Cola (Greg,
Aug 22, 2014).
Company name: PepsiCo
Location of Company Headquarters: Network USA
Name of product or service selected: PepsiCo has produced multiple products in the drinks and
foodstuffs. Some of the commonly known include products diet Pepsi, Pepsi-Cola, mountain
dew, Tropicana products, Lays, Miranda, Pepsi max and so on.
General Description of Company: PepsiCo has experienced various ups and downs since its
inauguration in the market. It experienced gains and intensive losses especially in 1931. It has
used its capital in purchasing the raw materials rendering it being bankruptcy. However, recently
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the company has been performing relatively better although it is facing stiff competition from
coca cola. PepsiCo employs 200,000 people and its annual revenue averages $ 63.525.
General Description of the Products or Service
Primary products produced by PepsiCo are carbonated drinks. These products have a
long history in the markets. The company exclusively owns the formula for creating these
PepsiCo products. The most recent products of the PepsiCo include Aquafina, Miranda. These
products have proved to be competitive when compared to the previous products such as Pepsi
Kona.
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References
Greg, T, (Aug 22, 2014). Pepsi History. Retrieved from
https://www.slideshare.net/GregThain/pepsico-history-evolution-present-and-the-future
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