PepsiCohas been conducting research to determine the best solution toovercome nutrition selection after the anti-sugar movements advocatedfor banning the use of carbonated drinks. The optimal solution was toshift to production of non-carbonated drinks entirely. Based oncustomer responses, 98% of these answers supported this solution, andthe customers were willing to pay anything to have the company helpsolve their problems. One of the interviewed customers described thissolution as a live saving solution, and she could do anything to saveher life.
Asper the year ended March 2016, the total operating costs for the firmstood at $28.7 billion (Jacobs, 2011). The company expects this costto double due to the significant changes that will be incorporatedwhich includes adopting new expertise, machinery, distributionchannels and advertisement costs among other overhead costs. In thatcase, the expected prices will range from as little as $3 up to ashigh as $25 depending on the size and packaging of various products.However, the increase in prices is temporary until the firm regainsits competitiveness and it’s able to reach all parts of the world.
Jacobs,G. (2011). KillerColas: The hard truth about soft drinks.Garden City Park, NY: Square One Publishers.