PEPSICO

Prepared By:Gaurav Dwivedi

Submitted To: DR. ANUBHA mam

Contents:

HISTORY BOARD OF DIRECTOR PRODUCT AND BRAND COMPETITOR & ANALYSIS ORGANIZATIONAL CHART SWOT ANALYSIS PEST ANALYSIS CONCLUSION

PEPSI LOGO

PEPSI SLOGANS 1939–1950:  ”Twice as Much for a Nickel” 1950:  ”More Bounce to the Ounce” 1950–1957:  ”Any Weather is Pepsi Weather” 1957–1958:  ”Say Pepsi, Please” 1961–1964:  “Now It’s Pepsi for Those Who Think Young” 1964–1967:  ”Come Alive, You’re in the Pepsi Generation” 1967–1969:  ”(Taste that beats the others cold) Pepsi Pours It On”. 1969–1975:  ”You’ve Got a Lot to Live, and Pepsi’s Got a Lot to Give” 1977–1980:  ”Join the Pepsi People (Feeling Free)” 1980–1981:  ”Catch That Pepsi Spirit” 1981–1983:  ”Pepsi’s got your taste for life” 1983–1984:  ”Pepsi Now! Take the Challenge!” 1984–1988 and 1990-1991:  ”Pepsi. The Choice of a New Generation” 1989:  ”Pepsi. A Generation Ahead” 1991–1992:  “Gotta Have It”/”Chill Out” 1992:  “The Choice Is Yours” 1992–1993:  ”Be Young, Have Fun, Drink Pepsi” 1993–1994:  ”Right Now” 1994–1995:  ”Double Dutch Bus” 1995:  ”Nothing Else is a Pepsi”

1995–1996:  ”Drink Pepsi. Get Stuff” 1996:  “Change The Script” 1997–1998:  ”Generation Next” 1998–1999:  “It’s the cola” (100th anniversary commercial) 1999–2000:  “For Those Who Think Young”/”The Joy of Pepsi-Cola” 2003:  ”Its the Cola”/”Dare for More” 2006–2007:  “Why You Doggin’ Me”/”Taste the one that’s forever young” 2007–2008:  ”More Happy”/”Taste the one that’s forever young” 2008:  ”Pepsi is #1″ 2008–present:  ”Something For Everyone” 2009–present:  “Refresh Everything”/”Every Generation Refreshes the World” 2010–present:  “Every Pepsi Refreshes The World” 2011–present:  ”Summer Time is Pepsi Time” 2011–present:  ”Born in the Carolinas” 2012:  ”Where there’s Pepsi, there’s music” – used for the 2012 Super bowl

commercial 2012:  ”Live For Now” 2012:  ”Change The Game” 2012:  “The Best Drink Created Worldwide”

PEPSI SLOGANS

MISSION & VISSIONOur Mission

“Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek 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. And in everything we do, we strive for honesty, fairness and integrity.’

OurVision"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic – creating a better tomorrow than today."

“Our vision is 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.”

HISTORY• In 1893, Pepsi was first introduced as "Brad's Drink", in New

Bern, North Carolina, United States.

• It was later labeled as Pepsi Cola.

• In 1903, Bradham moved the bottling of Pepsi-Cola from his

drugstore to a rented warehouse. That year, Bradham sold

7,968 gallons of syrup. The next year, Pepsi was sold in six-

ounce bottles, and sales increased to 19,848 gallons.

• In 1909, automobile race pioneer Barney Oldfield

was the first celebrity to endorse Pepsi-Cola.

In 1926, Pepsi received its first logo redesign since the original design of

1906.

In 1929, the logo was changed again.

In 1931, at the depth of the Great Depression, the Pepsi-Cola Company

entered bankruptcy.

On 1922 and 1933, The Coca-Cola Company was offered the opportunity

to purchase the Pepsi-Cola company, and it declined on each occasion.

1959 Crawford was appointed to the Board of Directors of Pepsi-Cola.

1975 Pepsi introduced the Pepsi Challenge marketing campaign .

HISTORY

1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy.

2007, PepsiCo redesigned its cans for the fourteenth time.

2008, Pepsi overhauled its entire brand, simultaneously introducing a

new logo and a minimalist label design.

2009, "Bring Home the Cup" changed to "Team Up and Bring Home the Cup“ new

campaign

2012, Pepsi introduced Pepsi Next, a cola with half the calories of regular Pepsi.

2013, Pepsi for the first time in 17 years reshaped its 20-ounce bottle,

HISTORY

PRODUCT AND BRANDS

AQUAFINAAquafina bottled water goes through a state-of-the-art purification process so that you get the refreshment your body craves in its purest form

CHEETOSCHEETOS Snacks are the playfully mischievous cheesy crunch that add a little lighten-up moment to any day. Proof positive, you simply can’t eat a Cheetos Snack without smiling. The CHEETOS brand strives to provide consumers with fun times every step of the way

LAY’SWherever smiles happen and happiness is celebrated, you’ll find LAY'S potato chips. From backyard BBQs and birthday parties to 4th of July picnics, LAY'S chips are there to share the moment. It’s no wonder these deliciously fresh-tasting and perfectly crispy potato chips have been America’s..

LIPTONMade with natural ingredients, new 100% Natural Lipton Iced Tea unlocks the natural goodness of tea, blending it with delicious flavors to hydrate and refresh you.

TROPICANATropicana, the strongest name in juices, extends the PepsiCo portfolio of brands with plenty of nutritious, high-quality flavors. Tropicana Products, Inc. is the leading producer and marketer of branded fruit juices. Its products are marketed in the U.S. under a variety of brand names, including...

MOUNTAIN DEWMountain Dew exhilarates and quenches with its one of a kind great taste.

PEPSIPepsi - the bold, refreshing, robust cola.

Coca-Cola

Mondelez

Dr Pepper

PepsiCo

COMPETITORS & ITS ANALYSIS

The PepsiCo challenge (to archrival Coca-Cola) never loses its fizz for the world's #2 carbonated soft drink maker. Pepsi products are available in 200-plus countries; the US generates 50% of sales. The company operates its own bottling plants and distribution facilities.

PEPSICO

-The Coca-Cola Company -Mondelez International, Inc. Company -Dr Pepper Snapple Group, Inc. Company

ANALYSIS

GLOBAL RANKING NATURES

#2

#1

#88

#427

carbonated soft drink

Maker

nonalcoholic beverage company

Kraft Foods maker

soda and Snapple drinks

PEPSICO VS. COCA COLA1. Pepsi and Coca Cola are two international soft-drink giants which control most of the

soft-drinks beverage business in the world.2. Pepsi has the following brands under its umbrella: Pepsi, Tropicana, Mountain Dew,

Quaker, Aquafina, 7Up, Lays, etc. Coke on the other hand has the following brands: Coca Cola, Coke light, Diet - coke, Kinley water, Kinley Soda, Fanta, Sprite, Thums Up etc.

3. . Pepsi and Coke command over 95% of the soft-drink market in India. However Coke continues to outsell Pepsi most areas of the world but in India and Pakistan and some other countries, PepsiCo fares far better than coke.

ORGANIZATIONAL CHART

PEPSI CO AMERICAS FOOD (PAF)

It includes Frito-Lay North America, Quaker all

Latin American food.

Its snack businesses including the sabritas and game business includes in Mexico.PEPSI CO AMERICAS BEVERAGE (PAB)

It contain Tropicana and all Latin

American beverage.

It contain customer management for food service and fountain businesses.PEPSI CO INTERNATIONAL (PI)

It includes all PepsiCo businesses in Uk,

Europe, Asia and Middle East.

In Uk it declared new product of the year by marketing week magazines.

In Asia it strong growth in savory snacks in China and Thailand.

In Middle East the Lays brand helped drive to share gains in Turkey

STRENGTHS

1:- EXTENSIVE DISTRIBUTION CHANNEL

PepsiCo products are served to more than 10 million stores per week in more than 200 countries

2:-SUCCESSFUL MARKETING & ADVERTISING CAMPAIGNS

More than $2 billion spent on advertising over 2012 resulted in PepsiCo’s growing market share over its main competitors, including Coca Cola Company, which spent even more on advertising.3:- PROACTIVE AND PROGRESIVEAccording to New York Times food industry writer Melanie Warner, PepsiCo, by many critics, is considered to be most proactive and progressive food company.

WEAKNESSES1. LOW PRICING:-

PepsiCo usually prices its products lower than its competitors. Low price is associated with low quality and PepsiCo products are usually perceived as ones

2:- WEAK BRAND AWARENESS:-

The Coca Cola Company has the largest share market of beverages in the world and much stronger brand awareness than Pepsi, placing it at competitive disadvantage

3:_TOO LOW NET PROFIT MARGIN

PepsiCo’s net profit margin is 9.7% compared to Coca Cola’s 18.55% and Nestlé’s 11%

OPPORTUNITIES1. SAVORY SNACKS CONSUMPTION GROWTH

The same opportunity PepsiCo has in growing its revenue selling snacks as this market is also expected to grow.

2:-BOTTLED WATER CONSUMPTION GROWTH

Consumption of bottled water is expected to grow both in US (PepsiCo’s largest bottled water market) and the rest of the world3:- INCREASING DEMAND FOR HEALTHY FOOD & BEVERAGES

Due to many programs to fight obesity, demand for healthy food and beverages has increased drastically. PepsiCo has an opportunity to further expand its product range with beverages and snacks that have low amount of sugar and calories

THREATS

1:- CHANGES IN CONSUMER TASTES:-

Consumers around the world become more health conscious and reduce their consumption of carbonated drinks, drinks that have large amounts of sugar, calories and fat

2:-WATER SCARCITY:-

Water is becoming scarcer around the world and increases in both cost and criticism for PepsiCo over the large amounts of water used for production.

3:-DECREASING GROSS PROFIT MARGIN

PepsiCo’s gross profit margin was decreasing over the past few years and may continue to decrease due to higher water and other raw material costs.

POLITICAL FACTORS1. PepsiCo is non alcoholic beverage and has to follow regulated by FDA with consistency.

2. It deals in different markets and every market has its own policies and procedures that are either stringent or either relaxed. Specially cross border situations are very different and Pepsi has to adapt to these changes accordingly.

3. PepsiCo’s competitors use competitive pricing strategy and Pepsi has to always keep this in mind.

4. PepsiCo has to also deal with government’s focus on stricter water pollution norms and land acquisition for new factories in different countries.

ECONOMICAL FACTORS

1. Usually whenever there is an economic downturn faced by the economy, companies sales are badly affected and they have to restructure their strategies.

2. The economic in 2008 was in Pepsi’s favor. It resulted in increased sales of its beverages as people were jobless and were sitting at home, spending more time with family and friends.

3. Availability of labor is another very important economic factor .In some countries the labor is quite expensive and if it’s cheap then sometimes labor is not well trained.

4. The economic impacts of such movements are serious because these affect the growth.

SOCIAL FACTOR1. Lifestyle has great influence on the use of Pepsi products, and their advertisements are designed accordingly.

2. PepsiCo introduced plastic bottles and cans and came up with innovative and newer designs.

3. Introduction of PepsiCo products in the international market requires an in depth study of the local social structure.

TECHNOLOGICAL FACTOR

1. With the technologies coming in, companies have changed their strategies and operations accordingly. A recent trend that has been seen and something that almost every company is inclining toward is Social Media.

2. Pepsi is influenced by the modern manufacturing techniques applicable to their business divisions of soft drinks, juices, and snack food.

3. Pepsi has to focus on the latest distribution techniques, and other technological advances in their industry.

CONCLUSIONS1. PepsiCo is always looking into the future, trying to make the company most profitable and suiting to its shareholders.

2. PepsiCo is also reformulating its Aquafina Alive water with a new sweetener blend that has fewer calories.

3. More focus on sales of Gatorade

4. New policy of the company should be introduced before the competitors launch those policies.

5. A healthy relationship should be developed by the company’s executives with the dealers.

6. All the factors involved in pest analysis have a great impact on each and every company. they all are interconnected with each other and also leads to a profitable business.

ANY QUESTION