Everyone has at least heard of, and probably drank a product of, the company PepsiCo (PEP: 53.52, -2.07 (-3.72%)).  It is one of the biggest food and non-alcoholic beverage companies in the world and is a direct competitor to the equally popular brand, Coca-Cola (KO: 45.02, -1.26 (-2.72%)).  PepsiCo is known for producing, distributing, and marketing products such as Pepsi, Mountain Dew, Cheetos, and Doritos.  Of these, the name that is most often associated with the company PepsiCo is Pepsi.  Pepsi is a carbonated, sugary, artificially flavored soda that has been extremely popular since it was first introduced in the early 1900s. However, with the recent push by consumers for healthier, non-carbonated options, PepsiCo is struggling to change its image and position itself as a major player in the non-carbonated beverage and healthier food market. Now, PepsiCo is facing the problem of marketing the company in a new direction to keep them successful without changing the overall face of the company.  The company has started to make progress, and has plans set forth to continue this change into the future.

So What’s the Problem?

PepsiCo is a leading company in the food and non-alcoholic beverage industry that now faces the problem of marketing a new style of snack and beverage.  It is responsible for producing, marketing, and distributing numerous popular brands.  Its 2007 revenue of $39.474 billion was higher than both Coca-Cola and Kraft (KFT: 27.44, -0.67 (-2.38%)) for the year. However, PepsiCo faces a new challenge: becoming a major player in the market of healthier snacks and beverages.  It is no secret that people are moving more and more towards healthier food and beverage items.  There is a new product out seemingly every day and new stores are being opened all the time that focus on this market.  PepsiCo is faced with this innovation problem as it hurries to position itself as a leading provider of healthy snacks and beverages.  If the company is unable to do so, then it will undoubtedly suffer significant revenue decline in the coming years.  On top of this, the company needs to maintain the same prestige that it has held for so many years while making this transition.  The company has to market its new products both quickly and efficiently to convince consumers that it is a leading provider of healthier alternatives.  Truly, Pepsi is not there yet.