Select a new soon-to-be-released product/service and develop a report using the sections below. The report will provide a full overview on how the product/service should be developed and...

Running Head: PepsiCo food & beverage
PepsiCo food & beverage
    
PepsiCo food & beverage
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Contents
Description of the innovative product and service    3
PEPSI CAFÉ – WHEN COLA MEETS COFFEE    3
Outline of the business, industry, and target market    3
Product Innovation Charter (PIC)    5
SWOT analysis    7
Perceptual map, include competitors    9
Concept testing    10
Product utilize testing: alpha, gamma, and/or beta    12
Entry strategy and market testing    13
Franchising    13
Partnering    14
Conclusion    15
References    17
Description of the innovative product and service
PEPSI CAFÉ – WHEN COLA MEETS COFFEE
Pepsi Café entered the market in April 2020 and combines the rich flavor of coffee and the fresh, crisp taste of Pepsi. Pepsi Café has two flavors of original and vanilla, and its caffeine content will be nearly twice that of ordinary Pepsi ("PepsiCo will bring a fun new vision for snacks and beverages to millions of visitors", 2020). New drinks from the soda-making giant will be sold in 12-ounce ultra-thin cans.
Outline of the business, industry, and target market
PepsiCo is a multinational food, beverage, and Snack Company of American headquartered in New York, Harrison, in a purchasing village. PepsiCo is always interested in manufacture, distribution and marketing of beverages, cereal snack foods, as well as some other products or goods. In 1965, CEO of Pepsi-Cola Frito-Lay and Donald Kendall CEO Herman Lay acknowledge what they called an "ingenious marriage", a business that offers perfect savory snack and finest cola on earth (Bennett, 2015). Their vision also led to the PepsiCo quickly becoming the biggest companies of food and beverage in world. For over 50 years, as tastes, lifestyles and trends have changed, PepsiCo has evolved. Pepsi Cafe motivation to adapt or develop has changed our snack and soda industries into international brands including Quaker and Pepsi, Tropicana and Gatorade, Frito-Lay and more. Nowadays, Pepsi has become the mainly respected industries in the world, with brands sold in approximately 200 countries or regions, and 22 products with yearly retail sales estimated at $ 1 billion. PepsiCo is recognized for its promises to do business in the right manner as well as integrating "reason" into Pepsi Café business strategy (Booth, 2014). In 2019, we adopted a latest vision: to be a worldwide leader in expediency beverages and food with purposeful wins. Winning with goals is the next chapter of our goal agenda or conveys our principle that sustainable development can make better contribution to our success in the market. Pepsi Café business consists of six divisions: Pepsi-Cola Beverages; North America Frito-Lay; Quaker Foods; Sub-Saharan Africa in Europe; Latin America; and Asia, the North Africa, as well as Middle East. Every     sector has its personal unique history as well as method of do business (Jensen & Ronit, 2015).
Market Summary
Industry analysis in 2007, the output value of the tea business reached $ 2.0 billion, and it’s expected to grow indefinitely. A market analyst believes that the coffee business will continuous to thrive and is not predictable to reach saturation levels in near future. The good development of the tea business can be attributed to two main elements: a) customer demand for convenient or time-saving services; b) positive pressure on coffee (Sutherland, 2007). The caffeine content of coffee-infused cola drinks is almost twice that of ordinary Pepsi. Pepsi Café has its personal version globally, although has not announce its availability in the United States.
Trends
The health advantages of tea have been extensively reported in media over the past decade. Research continues to show helpful properties of tea, whose health advantages include lowering cholesterol levels, improving arterial wellbeing, and reducing the chance of developing cancer. This news is definitely driving insist for tea. Both the demand for convenience as well as the positive demand for coffee has stimulated growth of tea products sales, especially RTD teas sold in only serving containers. Identifying this trend, several industries in tea business have made this recommendation (Bennett, 2015). New products to take benefits of the fast-growing RTD coffee business launching innovative products to meet growing demand for RTD coffee, and launching new product lines to capture well being-conscious market. Other group consists of health-conscious consumers, especially young people with any health requirements. Positive reviews and research on the advantage of drinking coffee have sparked interests in tea.
Pepsi seems to be able to beat competitor Coca-Cola into the market with the coffee-cola drinks. A twelve-ounce can of Pepsi Café reach at the stores of United State in April, however only for limited time. Coca-Cola's version, Coca-Cola, is available on the international market; nevertheless Atlanta-based business hasn't announced a US listing despite month of speculation. "We need to be an initial to market as well as launch this product in right manner," said Todd Kaplan, Pepsi's. Pepsi will have two flavors: vanilla and original. The caffeine content of coffee-infused coca cola drinks is almost twice that of regular Pepsi (Yach et al., 2007).
Target
Pepsi will target mid- to high-income employees who want to purchase quality products. Schultz wants Pepsi Café to be a "third place", a place where people can meet, interact and relax between homes and work (see case study). Therefore, they are vigilant as regards their quality control to meet huge expectations (Booth, 2014). They also pay great attention to details of store-from layout, furniture to music. Additionally, they are in "introduction" phase of the product life cycle.
Product Innovation Charter (PIC)
Product innovation charters support the business development of innovative services and products. This is the written document ready by senior management to develop a new product strategy as well as support the manufactured goods team. It helps to get better production and delivery methods. The product innovation charter is divided into four parts, namely target market, market background, special and target considerations (Jensen & Ronit, 2015). It plays an important role in launching latest products in the food business. The four parts of innovation product are discussed below.
· Market context: It evaluates and validates strategies and goals for innovative products. It measures and assesses the function of group members in developing innovative products.
· Target market: It concentrates on the environment and technology for the release and introduction of services and products. It illustrates the strengths and segmentation of consumers moreover distribution channels. It assesses market challenges and competition.
· Objectives and Goals: It concentrates on the company's lasting and temporary goals.
Special Note: It assesses internal management as well as external regulations or legal needs.
If businesses do not have a charter product modernism, it will face lots of difficulties and problems. It cannot formulate a strategy for innovative products or services. Therefore, if McDonald's wants to overcome rivals, it must prepare product modernism charters for the business (Kleiman et al., 2011). Now, it’s assumed that the product novelty charter is very significant for the business documentation for developing new products on the market. If Pepsi launches a new product such as Coffee, a PIC must be prepared to acquire the business. The PIC supports the development of new product strategies. It helps determine the company's goals, objectives, policies and restrictions.
New product concepts: If Pepsi Cafe produces new products for the company's growth. Then the market situation and environment should be analyzed first. It should identify competitors' strategies and analyze them carefully (Kocatepe, 2017). Therefore, if the company wants to produce coffee in the long term, it should first develop a strategy for producing coffee in next level. Pepsi Cafe will have to spend this money, or it must test market. In this...