Elasticity of Pepsi

Introduction: Firm profile and product selection The origins of Pepsi-cola started in the later(a) 1890s through an invention by Caleb Bradham, a pharmacist, who ilk all pharmacist had soda fountains in their store. His most storied concoction was a soda that contained pepsin. This was initially called brads drink onward he changed the name to Pepsi. Over the categorys subsequent mergers and acquisitions Pepsi-cola interconnected with Frito-Lays, and a new company, PepsiCo, was created. Currently, PepsiCo is divided into four divisions: Frito-Lay compass north America, PepsiCo Beverages North America (PBNA), PepsiCo International (PI) and Quaker Foods North America (QFNA). The Pepsi Bottling base is the company that packages and distributes Pepsi products (Pepsico, 2008). The product selected from PepsiCo and analyzed for income and price crack is Pepsi. Pepsi is a product of PBNA. PBNA also includes Mountain Dew, Sierra Mist, Tropicana, SoBe and Aquafina. PBNA manufactures and sells concentrate for both(prenominal) of these brands to licensed bottlers, who sell the branded products to independent distributors and retailers (Pepsico, 2008). Some of the study competitors for PepsiCo are Bacardi Limited, Coca-Cola Bottling Co. Consolidated, Heineken N.V., Nestle S.A.

, Ocean Spray, Red Bull, and Southern booze and Spirits of America, Inc (Marketline, 2008). In this paper Pepsis price elasticity will be determined as well as the income elasticity of its customers. These calculations will be used to predict future revenue increases for the company. Companys financial information PepsiCo is the second largest nutriment and beverage industry in the world. PepsiCo brands are available in nearly 200 countries and generate sales at the retail level of more than $98 billion (Pepsico, 2008). The company record revenues of $39,474 million during the fiscal year of 2007 and $35,137 million during the fiscal year of 2006. This increase in revenue is credited from the strong reaping in volume and... If you want to get a wax essay, order it on our website: Ordercustompaper.com

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