Customerproblem presentation and channel selection
Howwill your users initially buy from you from you?
PepsiCoCompany will incorporate a combination of various strategies to makethe new products available to the consumers. First, there will bethree major distribution channels namely customerwarehouses, third-party channels, and e-marketing. Thefirm will form alliances with certain corporations such as BuffaloWild Wings, Soda Stream International, Taco Bell and sportsorganizations such as National Football League and Major LeagueBaseball.
Howmuch will the channels cost? Bothdirect and indirect channel costs are expected to take up about 20%of the gross profit.
Netrevenue after channel cost:In total PepsiCo`s earnings stand at about $60 billion. This impliesthat after subtracting 20% which will cover chain costs, theremaining revenue is $48 billion.
Ifthere are products somewhat like ours how much do consumers pay forthem?
Today,only water that is completely unsweetened and in most cases, it isreadily available to everyone. However, the price of bottled waterdepends on the amount of liters which goes at an average of $1.22 pergallon.
Ifusers need a product like ours how much do they pay to do the samething?
Ournon-carbonated drinks are meant to reduce the health implicationsassociated with high amounts of sugar which cost consumers millionsof money to obtain treatment and keep fit.
Comparableproducts that are already in the market (existing market): Water
Doyou want to offer new pricing models?No. The company intends to employ the existing models.
Theamount of products that can be sold at once. Over1 billion packets of our beverages will be dispatched daily fromrelevant stores.
Howmany can you sell if you charged $ 1?Over 3 billion packets.
Howmany could you sell if you charged $1million?Almost zero bottles
Averageprice for which half of the customers say yes:$1.25 per gallon
Ifusers had your product how much would they pay for it?$3 per gallon
Picka preliminary price: $1.25per gallon
Wouldit be easier to sell your product if it were?
Sold in modules that individually cost less? Yes
Configured as a complete solution? No
Sold with other products? Yes
Bailey, S.(2014). PepsiCo’sthree-channel distribution network – Market Realist.Marketrealist.com. Retrieved17 October 2016, fromhttp://marketrealist.com/2014/12/pepsicos-three-channel-distribution-network/