joint venture between unilever and pepsico
TRANSCRIPT
JOINT VENTURE BETWEEN
UNILEVER AND PEPSICO
BY
M.V.SAIMAHESH
V.NAGENDRA REDDY
Unilever – Overview
Multinational Consumer Goods Company started in year 1929 by Antonius
Johannes Jurgens,William Lever, 1st Viscount Lever Hulme, James Darcy Lever,
Samuel van den Bergh, Georg Schicht
company co-headquartered in London, England and Rotterdam, The Netherlands.
Its products include food, beverages, cleaning agents and personal care products.
World’s third largest Consumer goods measured by 2012 revenue
30+ percent global market share
Products sold in more than 190 countries
More than 400 brands which includes 14 brands sales over one billion euros.
Axe/Lynx, Dove, Omo, Becel/Flora, Heartbrandicecreams, Hellmann's, Knorr, Lipton,
Lux, Magnum, Rama, Rexona, Sunsilk and Surf.
Unilever is organised into four main divisions - Foods, Refreshment (beverages and
ice cream), Home Care, and Personal Care.
PEPSICO OVERVIEW
PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-
Lay
PepsiCo is an American multinational food and beverage corporation headquartered
in Purchase, New York, United States.
acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001
As of January 26, 2012, 22 of PepsiCo's brands generated retail sales of more than
$1 billion apiece, and the company's products were distributed across more than 200
countries, resulting in annual net revenues of $43.3 billion.
PepsiCo is the second largest food and beverage business in the world.
Brands formerly owned by PepsiCo include: Pizza Hut, Taco Bell, KFC, Hot 'n
Now, East Side Mario's, D'Angelo Sandwich Shops, Chevys Fresh Mex, California
Pizza Kitchen, Stolichnaya (via licensed agreement)
LIPTON OVERVIEW
Established in 1893 as Thomas J Lipton Co
The Lipton tea business was acquired by consumer goods company Unilever in a
number of separate transactions, starting with the purchase of the United States
and Canadian Lipton business in 1938 and completed in 1972
In 1991, Unilever created a first joint venture with PepsiCo, the Pepsi Lipton
Partnership, for the marketing of ready to drink (bottled and canned) teas in North
America.
This was followed in 2003 by a second joint venture, Pepsi-Lipton International
(PLI), covering many non-United States markets.
PLI was expanded in September 2007 to include a number of large European
markets.
In 2007 Unilever Renew agreement to add 11 new countries
8 in Europe
Germany, Italy, France, Netherlands, Switzerland, Austria, Belgium , Portugal
Korea, Taiwan, South Africa
PepsiCo and Unilever each control 50% of the shares of these joint ventures
Lipton is now the leading tea brand in the world
WHY JV BETWEEN THIS TWO COMPANIES?
Leverages complementary strengths of Unilever's Lipton brand and tea know-how
with Pepsi bottling and distribution network
This new alliance will enable Lipton to strengthen its global position.
- Said by Peter Thompson, president and CEO of PepsiCo Beverages International
The new JV will target "white space" markets where Lipton currently is unavailable yet
PepsiCo has a solid presence
Benefits by JV
Unilever
PepsiCo distributes and markets Lipton Ice Tea in more than 60 countries where
PepsiCo has established its corporate presence
Pepsi Co will move Lipton brand into new markets and new distribution channels
Pepsi has a strong Customer Relations network
Pepsi Co.
Half share of profits to Pepsi Co in selling an established brand
Bottling of Iced Tea is done in Franchise bottling plants
Unilever will bring the brand, knowledge of the tea industry and a substantial research
and development capability to the JV
MARKET SHARE IN 2003
SWOT ANALYSIS
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATHS
Lipton PEST Analysis
4P’s
Product
Lipton Sparkling green tea, a ready to drink blend of green tea with sparkling water and fruit
flavors. There are 12 flavors are available right now.
Price
Lipton-Between US$0.99 and $1.59 per 20ounce bottle
Arizona-$ 2.00 range per 20 ounce
Place
Through the joint venture agreement, PepsiCo would distribute Lipton tea products in more than
60 countries.
Promotion
Lipton tea and bike town promotion in 2006
Win a smart car promotion in 2009
REFERENCE http://en.wikipedia.org/wiki/Lipton
https://www.google.co.in/search?q=lipton+market+share+worldwide&rlz=1C1GTPM_enIN615IN615&es_sm=122&biw=136
6&bih=667&tbm=isch&tbo=u&source=univ&sa=X&ei=NoKiVLWDMYOFuwTnooLYDQ&ved=0CBsQsAQ
http://www.prnewswire.com/news-releases/pepsico-and-unilever-create-pepsi-lipton-international-rtd-tea-joint-venture-in-
selected-international-markets-72491072.html
http://www.unilever.com/mediacentre/pressreleases/2003/pepsi_lipton.aspx
http://www.unilever.com/mediacentre/pressreleases/2007/UnileverPepsicotoexpand.aspx
http://www.motherearthnews.com/nature-and-environment/rainforest-alliance-certification.aspx#axzz3NOIJnZKM
http://www.liptontea.com/product
http://en.wikipedia.org/wiki/White_space_%28management%29
https://au.answers.yahoo.com/question/index?qid=20100607211120AA0n3Mg
http://en.wikipedia.org/wiki/Unilever
http://en.wikipedia.org/wiki/PepsiCo