CASE STUDY

Submitted By :- Bhupesh BindalPRN :- 12030141087

Class :- MBA-IT(B)

Brief Introduction

• PepsiCo Inc . is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products

• Traded as : NYSE PEP S&P 500 Component • Key people : Indra Nooyi (Chairman & CEO)• Founders : Donald Kendall, Herman Lay• Industry : Foods, Beverages• Founded : North Carolina, U.S. (1965)

History• The recipe for Pepsi, the soft drink, was first developed in the 1880s

by a New Bern, North Carolina pharmacist and industrialist, Caleb Bradham, who named it "Pepsi-Cola" in 1898.

• As the cola developed in popularity, he created the Pepsi-Cola Company in 1902 and registered a patent for his recipe in 1903.

• PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001—which added the Gatorade brand to its portfolio.

Mission and Vision

• Their mission is to be the world's premier consumer products company focused on convenient foods and beverages, to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate.

• Vision is to put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

BRANDS

• Pepsi-Cola Brands• Soft Drinks

• Frito-Lay Brands• Snacks

• Tropicana Brands• Juices

• Quaker Brands• Cereals

• Gatorade Brands• Energy Drinks

Business ModelKey Resources-Employees

-Raw Materials

Key Competitors-Coca Cola

-Nestle

Vendors-local vendors

Partners in terms of Contract-Pizza Hut

-McDonalds

Value PropositionDiversity

Local Relevance

CustomerValues

Healthy Customer

Revenue Stream-By selling their products

Cost Structure-costs on advertisements

-sponsorship

Value Proposition• Distributing global brands while ensuring local relevance• Strengthening advantaged local supply chain and go-to-market capabilities• Encouraging people to live balanced and healthy lives• Win with diversity and Inclusion.• Focussing in Efforts at the intersection of Business Interest and Public

Interest.

StrategiesOur strategies for growth position PepsiCo well for the future:

Build and extend our macro-snacks portfolio Sustainably and profitably grow our beverage business worldwide Unleash the power of the Power of One Expand our nutrition businesses Ensure excellent financial performance

The company started a new market strategy to sell their Pepsi Cola product in Mexico, stating that about one third of the population has difficulty pronouncing "Pepsi". They started manufacturing and selling their product under the label 'Pécsi

Our businesses are poised for top-tier operating and financial performance, including cash returns, enabled by:

Geographic flexibility Portfolio flexibility Go-to-Market flexibility Importance to retail customers Management strength

Towards Healthier World

Management Structure

Brief Financials• Revenue : US$ 66.504 billion• Operating income : US$ 9.633 billion• Net income : US$ 6.462 billion • Total assets : US$ 72.882 billion • Total equity : US$ 20.899 billion

Revenue in the fourth quarter of 2011 for Pepsi increased $20.2 billion. The gain was driven by both rising volume and higher prices.

Sales volume of snack brands increased 8% for both the fourth quarter and the year. Beverage volume increased 3% for the quarter and 5% for the year.

Sales Data

Corporate Social Responsibilities

• PepsiCo is leading company in Environmental Issues.Goal by 2015

» Reduce water consumption by 20%» Reduce electricity consumption by 20%» Reduce fuel consumption by 25%

• CAP Foundation» Partner in training and provide alternate livelihood options for

Tsunami affected communities in Andhra Pradesh and Tamil Nadu.

• International Labour Organisation» Partner in creating and implementing its HIV/AIDS Workplace

Policy

SWOT Analysis

WeaknessesOverdependence on Wal-Mart Overdependence on US Markets Low Productivity

ThreatsDecline in Carbonated Drink Sales Potential Negative Impact of Government RegulationsIntense CompetitionPotential Disruption Due to Labour Unrest

SWOT

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