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and Voltas
Over the years it has built an expansive beverage and snack foods business The beverages division includes 7UP, Aquafina, Dukes, Gatorade, Mirinda, Mountain Dew, Nimbooz, Pepsi, Slice &Tropicana The foods division houses both local and international brands like Aliva, Cheetos, Kurkure, Lays, Lehar Namkeen, Quaker Oats & Uncle Chipps
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. In everything we do, we strive for honesty, fairness and integrity.
Vision
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.
Key External Factors Weights (0.0 - 1.0) Opportunities The growing demand for sports drinks, bottled water, and energy drinks 0.18 Growth rate in the carbonated drink market is the largest in Asia when compared to the rest of the world 0.15 Compete aggressively in more than one industry (the salty food industry, and the breakfast food industry) Threats Fierce competition from Coca-Cola, which has the highest market share Customers are getting more conscious and concerned about their eating habits and general health Concerns of pesticides in carbonated drinks had an impact on their sales Excess dependence on supplies of clean water to avoid contamination Recessionary conditions lead customers to finding cheaper local substitutes Totals
Rating (1 - 4)
Weighted Score
0.72
0.3
0.1
0.1
0.16
0.64
3 3 2 2
Pepsico
Weighted Score 0.45 0.56
Coca Cola
Weighted Score 0.45 0.56
Rating (1 - 4) 3 4
Product Quality
Customer Loyalty Sales Distribution Advertising Company Image Financial Position Market Share Totals
0.13
0.12 0.12 0.11 0.11 0.07 0.05 1
4
3 4 4 4 3 3
0.52
0.36 0.48 0.44 0.44 0.21 0.15 3.61
4
4 3 4 4 3 4
0.52
0.48 0.36 0.44 0.44 0.21 0.2 3.66
Rating (1 - 4)
Weighted Score
Strengths
Strong Brand Equity Diverse Product Portfolio Strong Ad campaigns Socially responsible Continuous Innovation Weaknesses Lower customer loyalty Expensive to develop new products continuously 0.14 0.12 1 2 0.14 0.24 0.15 0.13 0.13 0.12 0.11 4 3 4 3 4 0.6 0.39 0.52 0.36 0.44
0.1
1
0.2
2.89
SO Strategies
(O1,O3,S2,S5) Continue to offer variety or product in various brands. ( O2, S2,S5) Expand and focus on the carbonated drinks and beverage segment (O1,O3,S1,S2) Respond to the growing demand of sports drinks, bottled water, and energy drinks by expanding product market.
ST Strategies
(S1, S3, S4, S5,T1) Innovate Pepsi product line with something that is going to differentiate us from Coca-Cola. (S2,S5,T2,T3,T4) Innovate products by offering healthier alternatives. (S1,T1,T5) Offer more promotions or discounts to prevent sales from decreasing. (S4,S5,T2,T3) Develop
WO Strategies
(W3,O1,O2) Expand Pepsi sodas product in rural areas (W1,W3,O1,O3)Improve their sales in the beverage segment by responding to the increasing demand for sports drinks, bottled water, and energy drinks.
WT Strategies
(W2,T1,T5) Adjust production of bottles with downturn in economy. (W1,W3,T1) Produce bigger size of bottles and sale them at the same price as the small one. (W2,T1,T4) Be responsible and cautious towards supplies of water. (W1, W2,T1,T5) Increase supply chain production by monitoring cautiously employees and improving workers training. (W1,W3,T1,T3,T4) Increase presence in rural areas and promoting environmental cause.
more environmentally friendly containers. (S1,S4,T2,T3,T4) Support environmental issues, such as pollution, which causes water contamination.
IFE Scores
EFE Scores
Pepsico India
% Revenue
Profit
Profit % 36% 7%
Market Share 1 1
$ 5,703.00
$ 10,116.00 $ 6,727.00 $ 453800 $ 104000
13% $
904.00
10%
24% 10% 8% 5% 100%
1
0.8 0.4 0.3 0.2
-3.26%
-7.51% -2.38% 8.97% 8.1%
$ 43,232.00
100% $ 8,610.00
Alternative Strategies Forward Integration Backward Integration Horizontal Integration Market Penetration Market Development Product Development Related Divesiifcation
IE 1 1 1 1 1 1
BCG 1 1 1 1 1 1 1
COUNT 2 2 2 2 2 2 1
Un Related Diversification
Horizontal Diversification Joint Venture Retrenchment Divesture Liquidation
1
1 1 1 1 1
1
1 1 1 1 1
Area of Objectives Customers Customer Satisfaction Employees Improve efficiency Offer employee trainings CSR Eco-friendly company Operations Innovation Financial Reduce cost of production & increase profitability
Measure of Target
Time Expectation
Primary Responsibility
Customer Surveys
Quarterly
HR
Bi-annually Yearly
Operations HR
Yearly
CEO
Yearly
CEO
Income statement
Quarterly
CFO
Launched slew of indigenous products - such as Aliva, Nimbooz, Kurkure Used Idea and technology of indigenous products in other markets - eg Nimbooz used to launch a Hibiscus-based drink in Egypt Used India as a low-cost high-quality benchmark for other PepsiCo regions Product development and related diversification Strategic Alliance with farmer in Punjab and other states
Customizing the Supply Chain Strategies ranging from sourcing, procurement and distribution Market development is a strategy that PepsiCo should apply by expanding in rural areas which have not yet been tapped Use forward integration to acquire smaller companies in domestic market to increase their market share Innovative and Captive Advertising build a stronger brand than Coke Develop a healthier more eco-friendly beverage brand Further Customise its food and beverage products to suit the requirements of the Indian market.