pepsi management
DESCRIPTION
Company information about Pepsi Co. Includes history, company proflie, core values style of management etc.TRANSCRIPT
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.