pepsi management

PepsiCo.

It is one of the leading beverage companies in the Philippines.

PepsiCo.

Be the premier food and beverage company in the Philippines.

Vision Statement

We will continue to market a portfolio of international and homegrown branded quality products at prices that provide good value to our consumers in key Food and Beverage category.

Mission Statement

We are committed to expand the business and provide healthy financial returns to our shareholders, opportunities for growth and enrichment to our employees, business partners and the communi-ties where we operate.

Mission Statement

The PepsiCo Philippines management’s main business philosophy is their P.E.P.S.I. core values: P-assion E-xcellence P-rofessionalism S-ervice I-ntegrity.

Values and Philosophy

PASSIONThey stimulate passion by bringing their new and creative ideas to life and also by overcoming any obstacle they experience.

A good leadership mindset is steeped into the culture of PepsiCo. at all levels.

EXCELLENCE

Management is called to a form of servant leadership, what PepsiCo calls “leadership by service”.

PROFESSIONALISM

“Pepsi University is the support system for the growth and skill-building of employees.”

Pepsi University

In any sales business, the sales people are the front liners, but in PepsiCo, everyone is a front liner.

SERVICE

Pepsi is governed by the highest standards of integrity, remaining true to its commitments whether people are looking or not and exacting the highest standards in its employees and their corporate conduct.

INTEGRITY

1898

History of PepsiCo

Caleb Davis Bradham

1902

History of PepsiCo

1946

History of PepsiCo in the Philippines

John Clarkin

Strategies and management

In general, the PEPSI management plan, organize, lead, and control via Annual Operating Plan (AOP).

Style of Management

Marketing Information System

Order Fulfillment of PepsiCo

Business Strategies

Packaging: For protecting the syrup, Pepsi Cola uses the glass as well as plastic bottles of different quantities.

Product Strategy

PepsiCo changes its advertising strategy and image to reflect the targets’ interests.

Advertising Strategy

Target audience: Mostly teens and young adults. Their advertising reflects in every possible way. The advertisements reflect to the target audience’s interest and nostalgia. It also includes cool, hip promos to attract more of the target audience.

Advertising Strategy

Pepsi Challenge

Pepsi Stuff Redesigning

the cans

Marketing Strategy

Pepsi’s distribution strategy is founded on three key principles: partnership, availability and efficiency.

Distribution strategy

Global Advertisement Strives to ensure

excellence and specifically for the brands or products together with the packaging, advertising and marketing

Markets products using the localization process

PepsiCo International Strategy

Promotes products and brand through supermarkets across the world

Partnered with customers through TV networks

International expansion Brand flexibility

PepsiCo International Strategy

Product portfolio

Product Portfolio

Product Portfolio

Product Portfolio

Product Portfolio

Product Portfolio

Product Portfolio

Product Portfolio

Product Portfolio

Five Competitive

Forces

Low PepsiCo is well established and has brand equity, loyal customers

Threat of New Entrance

Low Not a great deal for

PepsiCo Consumers

preference is “taste more than the cost”.

Other than Coca-Cola, not many carbonated drink have the same taste as Pepsi-Cola.

Threat of Substitute

Not so significant even though it has low switching cost.

Consumers preference is the taste

Convenience of the vending machine

Bargaining Power of Buyers

Low There are many raw

material supplier like fruit and other ingredients.

Builds partnership with farmers & community group, ensuring quality supply.

Only problem may rely on bad harvesting season due to climate change. Another aspect is on fuel oil crisis.

Bargaining Power of Supplier

Moderate to Strong

Pepsi is not no.1 in Beverage market.

Pepsi still need to compete with Coca-cola.

Competitive Rivalry Within An Industry

PepsiCo produced healthy drinks.

Pepsi vs Coke

Cola wars started back in the 1980.

PepsiCo adopted complex and sophisticated advertising and promotions.

PepsiCo hired a Global Nutrition Group as its marketing tool

PepsiCo diversify its business operations and to increase its reliance on other

Pepsi vs Coke

brands like Tropicana, Frito Lay and Quaker in order to increase its sales revenue.

Social Responsibility

offers more of its beverages in returnable formats

creates a fuel-efficient distribution network and by building plants closer to outlets

uses rice husks instead of bunker fuel, to source the steam that is needed for its bottling operations

Environment

Partnered with Solutions Using Renewable Energy (SURE) for a cogeneration facility that will use renewable source of energy as fuel input

Environment

First to send help to the typhoon victims

Community

Advocate of health and wellness

Community

Concerned about the right of every child to a secured and safe life.

Community

Financial Condition

Calendar Year Ended December 31, 2012 versus Calendar Year Ended December 31, 2011

Assets

Assets (millions)0

2

4

6

8

10

12

14

20112012

Calendar Year Ended December 31, 2012 versus Calendar Year Ended December 31, 2011

Liabilities

Liabilities (millions)0

1

2

3

4

5

6

7

20112012

Calendar Year Ended December 31, 2012 versus Calendar Year Ended December 31, 2011

Equity

Equity (millions)0

2

4

6

8

10

12

14

20112012

Calendar Year Ended December 31, 2012 versus Calendar Year Ended December 31, 2011

Operating Expenses

Operating Expenses (millions)0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

20112012

Calendar Year Ended December 31, 2012 versus Calendar Year Ended December 31, 2011

Gross Sales

Gross Sales (millions)18.5

19

19.5

20

20.5

21

21.5

22

22.5

23

20112012

Calendar Year Ended December 31, 2012 versus Calendar Year Ended December 31, 2011

Gross Profit

Gross Profit (millions)0

1

2

3

4

5

6

20112012

Calendar Year Ended December 31, 2012 versus Calendar Year Ended December 31, 2011

Net Sales

Net Sales (millions)15.5

16

16.5

17

17.5

18

18.5

19

19.5

20

20112012

Calendar Year Ended December 31, 2012 versus Calendar Year Ended December 31, 2011

Net Income

Net Income (millions)0

100

200

300

400

500

600

700

800

900

20112012

S.W.O.T. Analysis

Established name and a good reputation

Has larger market share than its competitors

More brand loyal customers

Satisfying price Has a very strong position

internationally

STRENGTHS

Environment of factory is very good and attractive

Spends a lot of budget on its advertising

Has a very vast distribution

Easily accessible Offers many discount

schemes Sponsors sports, musical

concerts, walks

STRENGTHS

Does not offer any sort of incentive or discount to its retailers

Crown of the disposable bottle is not good

Demand of disposal bottle is declining

Tin pack is not available in rural areas

Does not consider outlets such as hotels, and fast foods

WEAKNESSES

May start entering rural areas also

May also diversify its business in some other potential business

Increased interest of people in musical groups, cultural shows and sports has provided an opportunity for Pepsi to increase its sales through them

OPPORTUNITIES

The main competitor of the company is the Coca Cola

Cola drinks are not good for the health

THREATS

2007

ETHICAL DILEMMAS

Pepsi was faced with false advertising

PepsiCo was pressured by the Corporate Accountability International (CAI)

Confidence of the consumers to the product was greatly affected

CONSEQUENCES

The Corporate Accountability International (CAI) claimed that PepsiCo was using tap water to fill Aquafina bottled water.

”Public Water Source” is now on the label of the bottled water and is now branded as purified drinking water.

SOLUTIONS

1999

FINANCIAL CHALLENGES

Asian regional crisis added a record loss of 4billion

Market share also declined to record low 14%

Capital infusion between Guoco Group and PepsiCo International had reached $90M.

The Lorenzo group invited Guoco Holdings (Philippines) Inc. which was based in Hong Kong to assume majority of ownership of PepsiCo and to install a new management team.

SOLUTIONS

Come up with strategies that will overcome weaknesses such as lack of profile in some outlets (hotels, fast-food etc.)

Consistency in their advertising strategy.

RECOMMENDATIONS

PepsiCo.Prepared by:

Almendares, Jessica C.Dagdag, Joses A.De Jesus, Angelo Paul N.Mendoza, Ariane C.Mercado, Leilani C.Sapnu, Clarissa T.