Unethical prectices of pepsi

Unethical prectices of pepsi

Introduction: Pepsi International is a world renowned brand. It is a very well organized multinational company, which operates almost all over the world. They produce, one ofbest carbonateddrinks in theworld. Pepsi isa symbolof hygiene, quality and service, all over the world. Pepsi is producing Cola for more than 100 years and it has dominated the world market for a long time. Its head office is in New YorkPepsi Cola PakistanThe market in Pakistan is surely dominated by Pepsi. It has proven itself to be theNo.1softdrinkinPakistan.NowdaysPepsiisrecognizedasPakistanisNationaldrink.In 1971, first plant of Pepsi was constructed in Multan, and from there after Pepsi is going higher and higher. Pepsi is the choice soft drink of every one. It is consumed by allege groups because of its distinctive taste. Compared with other Cola in the market, it is abitsweeteranditcontributeS greatly to its liking by all. Consumers survey resultsExplain the same outcome and Pepsi has been declared as the most wanted soft drink of Pakistan

Business Environment:Environmental Sustainability means finding innovative ways to cut costs and minimize our impact on the environment through energy and water conservation as well as reduced use of packaging material.Situational Analysis:Strength

1. One of the most popular and globally recognized brands in foods and beverages2. One of the most diversified product portfolio3. Popular subsidiary brands like Frito Lay, Gatorade, Pepsi, Quaker, Tropicana, and Yum! Brands, etc.4. Global reach with presence in over 200 countries5.An employee strength of around 300,000 people6. CSR through PepsiCo Foundation, which works in the sector of education, health, water conservation, education etc.7. Pepsi Refresh Project that funds new ideas or ventures that have the potential to benefit the society

Weakness

1. Strong competition in the aerated drinks segment from Coca Cola means high brand switching2. Cases against products have been blown out of proportion, thereby affecting brand imageOpportunity1. Increase penetration into developing countries and capture their market2. Increase its product portfolio by acquisition of other brands3. To expand the Yum! Brands eatery in untapped countries and regions like tier 2 cities4. To improve its brand image by involving in more CSR activities to benefit the localsThreats1. Health consciousness amongst people can take a toll on its aerated drinks and snacks food markets2. Compliance with different government regulations and norms in different countries3. Inflation, economic slowdown and instability causes decline in the purchasing power of consumers4. Strong competition from other brands in each segment of its operation

Ethical Conduct:All PepsiCo employees are expected to embrace the principles of our Code and: show respect in the workplace; act with integrity in the marketplace; ensure ethics in our business activities; and Perform work responsibly for our shareholders.Unethical Conduct:Hi Tavares, this is not the first time Pepsi Company is associated with unethical behavior. I can recall in year 2007 Pepsi was involved with false advertising. Pepsi was selling its Aquafina brand of bottled water under the assumption that Aquafina is sourced from mountain spring water. Although the bottle itself did not have the words spring water, Pepsi used a great marketing gimmick to deceive consumers. Aquafina brand was sold in a bottle with a clean, blue label showing images of snow-capped mountains and the claim, "Pure water, perfect taste". That's the image created by PepsiCos Aquafina brand of water, and many consumers leaped to the incorrect conclusion that Aquafina is sourced from mountain spring water. In reality, Aquafina comes from tap water, the same water we get when we turn on our kitchen faucet. Of course, Aquafina is filtered, purified and perhaps even enhanced with trace amounts of added minerals, but it's certainly not mountain spring water, it's just processed tap water, nothing more. PepsiCo only agreed to the truth on their bottled water labels after being pressured by Corporate Accountability International (CAI), a non-profit organization that helps protect consumers from corporate abuse. PepsiCo bottled water issue brought to light the apparent deceptive practices of some of the largest suppliers of bottled water products. By avoiding the honest labeling of the source of their water while relying on snow-capped mountain imagery, these companies quietly mislead consumers into thinking their water products were from a pristine, natural source such as a mountain spring. Corporate Accountability International rallied consumers from around the world to complain to PepsiCo about their labeling of Aquafina, and thousands of consumers slammed PepsiCo's phone lines so hard that the company was forced to shut down call center operations. Pepsi executives reportedly held an emergency meeting and made a decision to add the phrase, "Public...Conclusion:Pepsi is a well renowned company and it has maintained its position well by understanding the client psychology, by ensuring quality, by introducing ingenuity inproducts,byenlargingitsproductbase,bykeepingeconomicfactorsinviewandby intense and jazzy advertisements. Whenever and where ever there is a spotlight event, Pepsi must figure in, like the one day international cricket matches between India and Pakistan many other suchOccasions. The key word for success in the Marketing World is to remain in the spotlight and that is what Pepsi isdoing.

Recommendations:The first recommendation that I would make to PepsiCo is that they should focus more on creating products that can be considered healthy alternatives to their customers. People these days are looking for ways to eat better and stay healthy, and PepsiCo has barely tapped into that market potential. PepsiCo can go about this in two ways: 1. creating new brands that provide healthy snacks or beverages, and 2. making their existing products more healthy. Overall, this focus will give PepsiCo an edge in an environment where unhealthy snacks and beverages are starting to become less and less profitable every day.