Research Paper on:
PepsiCo Case Study - Problems In Latin America

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greater control of the operations. * Initial success was achieved. * By 1996, however, the war was lost and Coca-Cola won. PepsiCos market share dropped. The decline was especially noticed  in Mexico, the worlds second-largest soft drink market. PepsiCos market share in Mexico was 26 percent but in 1996, their market share was 21 percent. * The devaluation of the  Mexican Peso added to PepsiCos problems in terms of revenue and profit. * The general problems are: How can PepsiCo reclaim market share in Mexico? How can PepsiCo reclaim market  share across Latin America? How can PepsiCo increase revenue and profit in the countries in Latin America? Analysis and Possible Solutions PepsiCo made a number of strategic errors, one  of which had to do with relationships. PepsiCo executives either forgot or did not know that business across Latin America is based on relationships, more so than in the U.S.  Historically, cola wars have always been between Coca-Cola and PepsiCo and PepsiCo has always claimed second place. In 1993, PepsiCo held a world market share of 21 percent while  Coca-Cola held a 46 percent share of the market. In 1993-1994, Pepsis market share trailed Coca-Colas in all countries in Latin America except Venezuela where Pepsi had a 42 percent  share to Coca-Colas 11.6 percent share. In fact, in terms of market share, Pepsi came in third to Coke and other brands in Bolivia, Brazil, Colombia, Ecuador, and Peru. Even  in Venezuela, Pepsi beat out Coke but it was second to other brands. While PepsiCo realized there was significant potential in different regions of the world, they also believed  there was potential for more growth in Latin America. Several factors led to this belief: consumers in Latin America had more disposable income, Latin consumers were already cola drinkers, and