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Recommendations for Improvements in CRM of PepsiCo

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PepsiCo deserves credit for investing the financial resources and human expertise necessary to create such a wide variety of virtual, interactive software programmes designed for customer usage. Some of these animations are sophisticated enough to provide multiple entertainment scenarios and outcomes with a simple click of the mouse. However, is PepsiCo actually creating significant value for its customers, other than the outcome of being entertained by various brand-building campaigns? Quaker Oats and Frito Lay, two brands under the PepsiCo name, account for the largest majority of the firm’ s profit (Strategic Direction, 2007).

PepsiCo also supports brands such as Aquafina and Gatorade, two powerful-selling products in their drink product lines. With such an extension of brands and the necessity to market them in a multinational business environment, the majority of the company’ s CRM campaigns are to boost profitability. Is this transparent, however, to the public and are they simply entertained by the extensive (and likely costly) animations in the virtual environment but finding no real connection with PepsiCo brands? Murphy (2007) offers that Pepsi-Cola and Coca-Cola continue to battle for market share, with Coca-Cola taking an apparent lead over their rival.

This was likely due to the recent Olympics focus which benefitted Coca-Cola. The author offers that Coca-Cola has “ pulled up its socks” in regards to communication strategy (Murphy, 2007: 1). This suggests that Coca-Cola is finding more success than its competitor in terms of appealing to their desired target audiences. This might be an aspect of providing the type of quality entertainment that consumers desire from large-scale cola manufacturers. Coca-Cola does not appear to take the same approach to the interactive, virtual environment as their competitor, which might suggest that PepsiCo’ s approach to online brand-related entertainment is less-sophisticated than that of Coca-Cola.  

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