Pepsi's new plant followed Coca Cola's entry into Chinese Mainland in 1981. "It has been losing money for more than 20 years and began to make profits in 2003." A few days ago, Zhu Huaxu, President of PepsiCo China, revealed this surprising news in an interview in Chongqing, which should not hurt him in the slightest
why did Pepsi lose money? "The biggest reason is that we like advertising." At present, many dazzling stars such as Yao Ming, Jay Chou, Faye Wong, Aaron Kwok and so on are under Pepsi, so the advertising expenditure is naturally expensive. But "I don't think we are losing money, but investing," Zhu Huaxu said. "Pepsi is not in a hurry to recover its investment. We are a long-term strategic investment, rather than pursuing temporary profits."
gb/t9341 ⑵ 008 determination of plastic tortuosity "we especially hope to be recognized by young people in local consumers". PepsiCo has been trying to spread PepsiCo's brand culture through a large number of advertisements for more than 20 years to get the recognition of young Chinese consumers. "What we sell is not products, but appeals."
"our profit in 2004 doubled compared with that in 2003, and our sales will increase significantly in 2005, but the profit is not higher than that of last year, because this year's advertising is also very strong." Zhu Huaxu said
"build 7-11 plants in the next five years"
ZHU Huaxu said that in recent years, the most urgent thing for Pepsi is to build new plants. "Pepsi has been building new plants in the past oneortwo years". PepsiCo has insufficient production capacity, and the production capacity of many factories exceeds 100%. By the end of this year, PepsiCo will have at least three factories to start construction, and 7-11 factories will be built in the next five years
in PepsiCo International System, China is the second largest market after the United States, and the first is Mexico. In 1998, when Zhu Huaxu just joined PepsiCo, PepsiCo China was still third. In 2000, it surpassed Saudi Arabia, which is also a thermal insulation material with poor "fire performance". Now, our growth rate for three consecutive years is the first in PepsiCo International System. In the past seven to eight years, PepsiCo China has maintained at least a double-digit growth. In 2004, PepsiCo sold 405million TEUs in the whole year
Zhu Huaxu was optimistic about the development of PepsiCo China: "last year, we increased by 70million TEUs. By the end of next year, we will level with or exceed Mexico, and the end of 2006 and the beginning of 2007 will be almost the first."
at present, Coca Cola, Pepsi's main competitor, has 29 filling plants in China, while Pepsi has only 17. As for the competitors, Zhu Huaxu admitted that "Coca Cola is a powerful and historical enterprise, which is stronger and larger than us, and we must not underestimate it", "the competition between our two countries has always been very fierce, and will be more intense in the foreseeable future"
Coca Cola's plan to attack the rural market is hot. Does Pepsi have this plan
Zhu Huaxu said that Pepsi is not absent in the rural market, but it is rare. "The time is not ripe to attack the rural market on a large scale." There is no secret in beverage sales. It must be done step by step, and it must be firmly rooted. "In the past few years, our scale was still relatively small, and our energy could not be separated too much. Therefore, we adopted the strategy of attacking major cities, firmly rooted, and then went down."
(source: first finance and Economics)