Wednesday, April 13, 2011

Global Communications

Global communications is an important feature for Pepsi Co to focus on as 39% of their revenue is received internationally. As previously mentioned, PepsiCo has four separate divisions as part of their corporate structure. Two of these divisions are completely internationally focus, which include PepsiCo Europe and PepsiCo Asia, Middle East, Africa (AMEA). As Pepsi has been trying to obtain a healthier global image, they have acquired, partnered or purchased share in a variety of global brands which are known for their nutritious products. Associating themselves with prospering and nutritious brands throughout the world helps to provide Pepsi with an excellent global reputation. The healthier brands they have acquired on a national level include

- Lebedyansky, Russia's leading branded juice company
- Sandora, a leading juice company in Ukraine
- V Water, an all‐natural enhanced water in the United Kingdom
- Amacoco, Brazil's largest coconut water company

As PepsiCo is known on such an international level, I was able to find there Worldwide Code of Conduct available in 42 different languages. This indicates that the company is dedicated to transparency within the United States and any other countries which produce or purchase PepsiCo products.

Pepsi is the leading food and beverage company in Europe, in addition to employing 43,000 people within the region. The company began in European expansion of distribution in the 1980s and this market makes up 16% of the company’s global net revenue. Pepsi is present within 45 separate nations in Europe as a distributor of its most known brands including Frito Lay Snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. While the typical brands are sold in Europe, they have also acquired brands specific to the European culture such as popular juice companies in Russia and Ukraine, which were previously mentioned. Other local brands include Walkers crisps, Copella, Paw Ridge, Snack-a-Jack and Duyvis. Since PepsiCo is extremely dedicated to pleasing the European market, they have recently spent more than 20 million euros in European R&D centre, and 180 million euros in the UK to create new, healthier snacks for that market.

The other international division of Pepsi is similar to the European division in that it sells the traditional brands known in America, while also selling brands localized to the area. The Asia, Middle East and Africa division sells specific brands including Mirinda, Kurkure and Red Rock Deli. PepsiCo owns production and distribution centers in these areas while also producing through alternative means including joint ventures, affiliate programs and licensing. 13% of Pepsi’s worldwide international revenue worldwide comes from this area.

The final component of examining Pepsi's global communications was to view the websites of each country in order to see if there were differences in sites depending on the country. It was interesting to me that the website had extremely simliar layout yet the opening banner ad was different in each country. On the website for America, had an animated image of Brisk, while Italy and China had colorful images explaining Performance for A Purpose. It was clear that the website had very similiar information posted on them, yet the opening images of the sites were catered to the country they were made for.

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