SOCIAL
It was found upon analysis that social factors impact Pepsi greatly.
I believe the main reason is that Pepsi is a non-alcoholic beverage, which has to maintain the strict and stark differences in cultures around the globe. Pepsi must communicate its image as a global brand in order to change people’s perception. The company expects consumers to be able to think of the drink as something that connects the world together.
Most often, the social implications are visible in marketing campaigns. A good example would be featuring religious festivals in TVC ads. Therefore, Pepsi has to keep in line with all of those festivals if the team wants to understand the essence of their market. Analyzing the social factor would help cash upon the opportunity.
TECHNOLOGICAL
As the technology is advancing with passing time, big and small companies feel the pressure to completely integrate themselves with the recent changes. Social Media is a very recent yet viral trend that every business is turning toward. The social media blast has increased interactive engagement with the customers and offers real time results too.
So, Pepsi has to make attempts to stay ahead of all such developments. It is essential to give importance to how today’s youth is utilizing technology for their benefit and how Pepsi can reach them to continue increasing brand engagement and brand recall.
ECONOMIC
As you are aware, the economic downturn plagued the economy and companies had to completely restructure their marketing and sales campaigns. The reduced profits led them to downsize internally and reconsider about how they should penetrate the market.
I think economic conditions influence the business most, regardless of what kind of business it is. I would say in Pepsi’s favor that when the economic downturn started in 2008, it resulted in increased sales for the company. This is because people started spending more time with friends and family, or at home, when they got laid off from jobs.
ECOLOGICAL
Ecological factors might affect Pepsi, but it will not have any immense toll on its trade and profit generation. Ecological factors usually affect agricultural businesses more directly.
POLITICAL
As I mentioned previously, Pepsi is a non-alcoholic beverage and so the FDA regulates it. Pepsi is expected to maintain a firm standard of the laws that the FDA sets with consistency. Many different markets across the world follow different set of regulations, which are either relaxed or severe.
Pepsi’s competitors like Coca-Cola presents competitive pricing and this is a factor, which the firm should keep in mind all the time. The political scenario is very important because there can be certain civil disturbance in some markets. Another reason could be fall in sales due to inflation. The most important element of all is that cross-border situations are extremely different. As a result, Pepsi has to stay in line with all changes and policies in order to adapt to them accordingly.