Analyzing the marketing environment pepsi energy drink assignment

ECONOMIC FORCES The economic environment constitutes of economic conditions, economic policies, and the economic system that is important to external factors of business. Economic factors are the very important determinants of business tragedy in the organization for formulating, implement and controlling of economic policies. Economic environment refers to the nature and direction of the economy within which business organization are to operate. For instance, in developing country, the low income may be reason for the very high demand for the product and services of the business.

Consumers require buying power to buy a product. The economic environment consists of factors that affect consumer purchasing power and spending patterns. Bangladesh has a developing economy which offers outstanding business opportunities for the right kind of product. Pepsi has also focused on this factor using their economic forecasting. Pepsi have announced different products for different set of people. So if there is an economic downfall in the country they still have the capacity to run their business and they have absolutely no fear of wipe out.

Foreign companies are also keen to invest in those countries which are politically stable where they have no fear of decline in their market share or shut down due to sudden change of government. 2. Mixed Economy In mixed economy government and private sector both plays their role in developing the economy Of the country. Investment by foreign companies like Pepsi is more likely to flourish in mixed economy. 3. Laws Formulation Government has given copy rights to Pepsi so that another company cannot sell their product by the name of Pepsi.

The countries where laws are formulated, the strategies and activities of the company are different. 4. Social Responsibility Pepsin’s social responsibility is to provide its customers with clean and hygienic product so to do this they have increased the use of disposable bottles. SOCIO-CULTURAL ENVIRONMENT Socio-cultural environment is an important factor that should be analyzed while formulating company business strategies. If company is ignoring the customs, traditions, tastes and preferences and education, it can affect the business.

Technology is the most important elements of the macro environment. Technology is the human being innovation and it literally ender. Technology helps to human being go to moon, traveling the spaceships, other side of the globe with few hours. Advances in the technologies have facilitated product improvements and introduction of new products and have considerably improved the marketability of the products. The technology is advancing day by day with new technology coming up and replacing the old quite easily. The technology advancement is also a macro environmental factor for a business.

As the new technology coming up rapidly so no company can rely on their conventional ways of production and other asks. World has now become a global village and there is no issue of transferring one product from one country to different so the only way to survive for companies is by producing the product in quick time and with cheap price this was the reason behind the success of China as they manufactured cheap and fast products through advancing in technology and by using new ways to manufacture a product.