PREFACE

Preparing a project of this nature is an arduous task and I was

fortunate enough to get support from a large number o persons. I
wish to express my deep sense of gratitude to all those who
generously helped in successful completion of this report by sharing
their invaluable time and knowledge.
It is my proud and previledge to express my deep regards to
Respected HOD Dr.Pramesh Gautam, Head of Department of
Business Management , SWAMI VIVEKANAND UNIVERSITY,
SAGAR for allowing me to undertake this project.
I feel extremely exhilarated to have completed this project under
the able and inspiring guidance of Miss Deepali Prohit he rendered
me all possible help me guidance while reviewing the manuscript in
finalising the report.
I also extend my deep regards to my teachers , family members ,
friends and all those whose encouragement has infused courage in me
to complete to work successfully.

SHRIKANT PATEL
MBA IIND SEM.

ACKNOWLEDGEMENT
2

Preparing a project of this nature is an arduous task and I was fortunate

enough to get support from a large number o persons. I wish to express my deep
sense of gratitude to all those who generously helped in successful completion
of this report by sharing their invaluable time and knowledge.
It is my proud and previledge to express my deep regards to Respected ,
Head of Department Dr.Pramesh Gautam, Department of Business
Management , SWAMI VIVEKANAND UNIVERSITY SAGAR for allowing
me to undertake this project.
I feel extremely exhilarated to have completed this project under the able
and inspiring guidance of He rendered me all possible help me guidance while
reviewing the manuscript in finalising the report.
I also extend my deep regards to my teachers , family members , friends
and all those whose encouragement has infused courage in me to complete to
work successfully.

SHRIKANT PATEL
BBA IIND SEM.

DELCLARATION BY THE CANDIDATE

Date :
I declare that the project report titled " A STUDY OF BRAND PERSONALITY
INDRA NOOYI " on Market Segmentation is nay own work conducted under the supervision
of

MISS

DEEPALI

PROHIT

Department

of

Business

Management,

SWAMI

VIVEKANAND UNIVERSITY SAGAR To the best of my knowledge the report does

not contain any work , which has been submitted for the award of any degree , anywhere.

SHRIKANT PATEL
MBA IIND SEM.

CERTIFICATE
4

The project report A STUDY OF BRAND PERSONALITY INDRA

NOOYI been prepared by DEEPALI PROHIT MBA IIT of MRS. ANKITA

SHARMA for the partial fulfillment of the Degree of BBA

Signature of the

Signature of the

Signature of the

Supervisor

Head of the Department

Examiner

CONTENTS
PREFACE
ACKNOWLEDGEMENT
CERTIFICATE
DECLARATION

History
Achievements
Awards

Price
Work
Development

HISTORY
Indra Krishnamurthy Nooyi
(born 28 October 1955) is an Indian-American business executive
and

the

current Chairperson and Chief

Executive

Officer of PepsiCo, the second largest food and beverage business

in the world by net revenue. [2] According to Forbes, she is
consistently ranked among World's 100 Most Powerful Women.[3]

Early life and career

Nooyi was born in Madras (presently Chennai), Tamil Nadu, India.
She was educated atHoly Angels Anglo Indian Higher Secondary
School in Madras. She received a Bachelor's degree in Physics,
Chemistry and Mathematics from Madras Christian College in 1974
and a Post Graduate Diploma in Management (MBA) from Indian
Institute of Management Calcutta in 1976.[4] Beginning her career in
India, Nooyi held product manager positions atJohnson &
Johnson and textile firm Mettur Beardsell. She was admitted to Yale
School of Management in 1978 and earned a Master's degree in
Public and Private Management. While at Yale, she completed her
summer internship with Booz Allen Hamilton.[5]Graduating in 1980,
Nooyi joined the Boston Consulting Group (BCG), and then held
strategy positions at Motorola and Asea Brown Boveri.[6]

ACHIVEMENET

So before going through the case studies, I would like to throw a light on
the leadership, and its types. So leadership is the process of influencing
employees to work toward the achievement of organizational objectives.
And following is the common types of leadership styles:

Autocratic Leader
One who makes all the decisions, tells employees what to do,
and closely supervises employees.
7

 Considered a Theory X-type leader.

Democratic Leader
One who encourages employee participation in decisions;
works with employees to determine what to do, and does not
closely supervise employees.
Considered a Theory Y-type leader.
Laissez-Faire Leader
One who takes a leave-the-employees-alone approach,
allowing them to make the decisions and decide what to do.

The case which I am going to discuss is related to the leadership styles

approached by CEO of Pepsi Co. Mrs Indra Nooyi. It examines the
importance of strategy and leadership in the transformation of a company.
Nooyi started her career at Pepsi Co. in 1994 as senior vice-president
(strategic planning). And she rose to the post of CFO in 2001 and became
CEO in 2006; instead she is the one and only most prominent Indian
women who have marked considerably in the corporate world.
Her primary objective was to achieve
performance with purpose. She has implemented a number of measures
to improve the sustainability of the companys operation and image by
focusing on improvement in the health implication of Pepsi cos products.
She quotes leadership is hard to define and good
leadership even harder. But if you can get people to follow you to ends of
8

the earth, you are a great leader. As a leader, I am tough on myself and I
raise the standard for everybody, however, I am very caring because I want
people to excel at what they are doing so that they can aspire to be me in
the future.

DEVELOPMENT

As a SVP (senior vice president), the companys restaurant business which

they had acquired a decade earlier and in which they have invested billions
of dollars entered a sluggish phase with lower sales volumes, and profits.
She worked with Roger Enrico, the chairman and CEO of Frito lay who
was asked to take charge of Pepsi cos restaurant business as chairman and
CEO of Pepsi co worldwide restaurant.
They together investigated the problem and made
effort to analyse what was wrong with the business. So they had
collectively come to the decision that the main problem with them was, the
model of management which they were adopting was more suitable to
packaged goods industry rather than a restaurant business. And she
believes that restaurant business needs more capital investment than its

beverage and snacks business and moreover, restaurant business did not fit
in with core Pepsi co business of snacks and beverages. So it her strategic
decision that led Pepsi co to spin off its restaurant business into
independent businesses.
So here I will discuss the situation prevailing when she
first get into Pepsico as a Senior Vice-President.
In 1996, Nooyi found that Pepsico
international beverages business had over expanded and its repercussion
were being reflected in companys balance sheet. They ran into huge
financial problems. Consequently, Pepsi cos international business
suffered huge losses amounting to US $576 million and assets impairment
or damages. While their sales increased by 5% to US $32 billion but its
earning reduced by 28% to US $ 1.1 Billion over 1995.
Nooyi worked with Enrico on US $ 35 billion worth of
deals that included a spin offs and divestitures (sales) to put Pepsi co back
on fast growth track. They assessed strong brands, good cash flows, and a
strong workforce as a Pepsis strengths. Between 1996 and 1999, Enrico
initiated rigorous financial controls to maximize Pepsi cos cash flow. And
its main objective was to ensure the proper and judicious use of their
financial resources in core areas and emerging markets. In 1998, she
helped Frito lay snack business in deciding the new distribution system as
requested by Head of Frito lay company, Mr. Steve Reinemund. She has
created new distribution system which reduces overall costs and gave sales
representative a more time with their customers. The Direct Store Delivery
(DSD) system worked on the strategy of directly stocking the shelves of

10

the retailers through its sales force. It also enables the retailer to order
supplies directly from Pepsi co. So with the propagation of DSD systems,
the Pepsi co salesperson spend a fixed number of times in supply chain
cycle, in selling the product directly to retailers, stocking its shelves, and
also interacting with their customers. It fetches a dual benefit, as goods
will be directly delivered to the customers and it eliminates the middle
persons, thereby it pull down the costs. So it helps them to over shine to
coke company.
Between 1994 and 2001, she used her experience in strategic
planning and execution to undertake a number of strategic initiatives at
Pepsi co. which included the following:
The Tricon-Restaurant Spin-off
She spun off the restaurant chain business into an independent company
The Tricon- Restaurant constituting KFC, Taco Bell, and Pizza Hut
which was later renamed as Yum! Brands Inc. And she sold of the
companys larger restaurant to its existing shareholders and its smaller
restaurants to new investors.
She has visited each of restaurant across the country and
even at their competitors to get a detailed bottom up view of what had
gone wrong with the restaurant chain, as the profitability of which had
come down drastically.
So she found that the industry was saturated and
the fast food chains were competing aggressively with each other.
Moreover, she also found that Pepsi cos restaurant chains didnt make
complete use of the scarce real estate. They catered only breakfast or
11

dinners or only specific areas of dining, and underutilizing the other slots.
So she comes to the conclusion that Pepsi co could not add more utility or
value to the fast food industry with its service chain. The chain which
requires high capital investment, was labour intensive, and also generates
lower return as compare to Pepsi cos beverage and snacks businesses. So
her decision helps Pepsi co to focus on its core areas of operations namely,
beverage and snacks business while providing the restaurant chain to
perform independently.
The Tropicana Acquisition
She also acquired the Tropicana, the worlds biggest juice brands from
Seagram company ltd for the US $ 3.3 billion. It was indeed the biggest
acquisition in Pepsi cos history. It helps to step into market with healthy
beverages. And it also helps in competing with its rival competitors, Coca
Cola. She put lots of effort on assessing the advantage of acquisition of
Tropicana for not only in terms of improving the companys brand image
as containing a healthy and convenient foods and drinks portfolio but also
in terms of its addition to Pepsi cos earning.
She had studied Cokes to the Pepsi cos board on Cokes growth
model and explained how the company had successfully reaped the
benefits of higher margins by separating its bottling operation in 1986. As
with reference to their past experience, she decided to spin off Pepsi cos
bottling operation into Pepsi bottling group in 1999 but this move had a
negative impact on the Pepsi cos revenue to the extent of US $7 billion.

12

Nooyi Becomes CFO

She was promoted as the Chief financial Officer at Pepsi co in February

2000. A year later, she was selected as president and given a seat in board
of directors. As a CFO, she was responsible for innovation, finance,
procurements, investor relations, strategy, and information technology
functions. She used Quaker and Tropicana brands extensively to innovate
and develop an entire range of snacks which could be positioned as
healthy. Integrating of multi brand has been proved out to be very
challenging task for them. In order to put the Pepsi co on the fast growth
track, she adopted acquisition and development of new products and
achieving product synergies. So she merged Pepsi co with Quaker oats at a
cost of US $ 13.8 billion in 2001. The main objective was to help Pepsi co
to come up with healthy and nutritious snacks and beverages to fulfil the
changing needs and demand of consumers across the globe. So it enables
the company to acquire a leading sports drink which comprises 83.6% of

13

non carbonated beverages and merger with Quaker oats helps to fill the
gap which Frito lay could not serve.
Challenge of Achieving Double Digit Growth Rates
One of the major challenges for Pepsi co was to assess with its new
competitors as coke was no longer its sole rival in the markets it had
ventured into. The new competition from American based company Kraft
Foods Inc. Who had earned revenue of US $ 42.2 billion, with employing
more than 103000 employees which was a leading snack foods and
beverages company.. And so as to tackle those competitors, she instantly
stressed more on innovations in Pepsi co products and adopted fresh sales
strategies to bridge the gap with its competition. Firstly she decentralise
its all units with their own president and CEO. The change that she had
initiated and adopted such as acquisition of Tropicana and Quaker oats and
spin off of Pepsi bottling group leads the Pepsi co to move ahead of its
rival coca cola co. And for the first time, Pepsi co entered the bottled water
and sports drink earlier than its rival. In 2006, the Pepsi cos Aquafina
brand of bottled water had the largest market share and followed by coca
colas Dasani. In sports drink also, Pepsi cos Gatarade accounted for 80%
market share. And Pepsi cos snacks accounted for 60% of snack food
market.
She has anticipated accurately about changing taste and preference
of consumers with the changing need of environment. When market for the
carbonated comes at saturated level, the focus of the consumer has
changed into health conscious products, juice and mineral waters which
substitute the carbonated drinks. So she successfully recognizes that

14

consumer moving towards non carbonated drinks and she innovated

aggressively and met the need of changing choice and preference of
consumers.
According to analysts, after she became a CFO in 2000, the
companys annual revenue rose by 72% while their net profit more than
doubled, to US $ 5.6 billion in 2006.

Nooyi as CEO

In October 2006, she was promoted as Pepsi cos CEO because of her
diverse knowledge of global markets and ethnic background. As a CEO,
she believes that Pepsi co needs to prove themselves as a good and
sustainable global company. She not only focuses on profits but on making
Pepsi co one of the Defining Corporations of 21st century which meant
that Pepsi co should focus on the sustainability of the environment in
which they operates. In 2007, she comes up with three beautiful and
effective slogan, better for you, good for you, and fun for you in its
product portfolio.
Under her leadership, Pepsi co focuses from saturated US
markets to the emerging global markets. She increased the size of
executive members for a broader distribution of management decision
making power. She also continues to emphasize on the diversity ideology.

15

According to her, Succession planning is critical. Our succession

planning process is designed to identify the kinds of experiences our
leaders need. Once identified, we put people in assignments that enable
them to build those skill sets
And most importantly, she believed that implementing strategic changes
in the organization, it was so important to communicate clearly the reasons
for the change in order to take the employees with the organization
through the change. she also motivates her employees to generates idea
before implementing any kind of change as she treat her employees as
most important management assets of the organization.
Strategic Acquisition as CEO
As CEO, she undertook a number of strategic acquisitions to bridge the
gap in Pepsi cos product portfolio. She focused more on coming up with
healthy and nutritious products. She acquired Blue bird snacks, a Brazilian
based company that manufactured snack foods and drinks, Sandora,
Ukraine based Juice Company and naked juice, a US based organic juice
and soy drinks. And even they signed with Unilever in ready to drink tea
joint venture and increased its presence in the healthy retail foods segment.
In 2008, she completed a Pepsi cos largest acquisitions of
Russian based juice company, Lebedyansky at a cost of US $13.8 billion.
So we can easily come to the conclusion that she is
really looking forward to provide consumers across the globe with a
healthy and nutritious snacks and beverages.
The Criticism

16

Its not an unusual event if someone stands against her to criticize because
no one in this world is perfect and everyone commits mistakes. And
moreover merits and demerits are like complementary goods, which
always goes hand in hand, so to conclude, where there is an advantage,
there is a disadvantage also.
She also faced criticism of several grounds. She was
criticised for her lack of operational experience. Critics believes that she
was merely forecasting the regulations and following consumer trends
rather than making conscious efforts to make Pepsi products healthy.
According to the study conducted by City University, London, on the
worlds 25 largest food companies including Pepsi co and as per their
report, Pepsi co has failed to meet the global diet and health agenda. And
moreover, it was criticised that Pepsi co still targeted their market below
the age of 12 years old and they continued to stock of carbonated drinks in
schools. The soda offered by them were low on nutrition and contained
high level of sugar content and more calories than required as a part of a
healthy diet for children.
In 2003, when it was criticised that beverage contents
high level of pesticides, Pepsi claimed that they add pesticide to their
locally manufactured soft drink out of ground water and they were actually
using more than what the standard has prescribed for.
She was unable to put an end to that entire allegation
rose by critics even after becoming CEO. She is looking forward to carry
out independent test on Pepsi cos drinks for pesticide content which is a

17

very costly and long term investment. And at the moment, it is not
permitted by central govt.

Leadership versus Organisational Behaviour

Leadership and individuals behaviour in organisation is the two

complementary stimuli. A good leadership can always influence their
employees to behave well and makes them dedicated and committed to
their organisation whereas poor leadership cant achieve what good leaders
can do. And following is the important trait associated with leadership.
1. Drive: leaders exhibit a high level of effort. They have relatively a
high level of desire for achievement; they are ambitious; they have a
lot of energy; they are tirelessly persistent in their activities, and they
show initiative.
2. Desire to lead: l. leaders have a strong desire to influence and lead
others. They demonstrate the willingness to take responsibility.
3. Honesty and integrity: leaders build trusting relationships between
themselves and followers being truthful or non- deceitful and by
showing high consistency between word and deed.

18

4. Self-confidence: followers look to leaders for absence of self doubt,

therefore leaders need to show self confidence in order to convince
followers of the rightness of their goals and decisions.
5. Intelligence: leaders need to be intelligent enough to gather,
synthesise, and interpret large amounts information, and they need to
be able to create visions, solve problems, and make correct decision.
6. Job-relevant knowledge: effective leaders have a high degree of
knowledge about the company, industry, and in technical matters. In
depth knowledge allows leader to make well informed decisions and
to understand the implication of those decisions
7. Extraversion: leaders are energetic, lively people. They are sociable,
assertive, and rarely silent or withdrawn.

19

PepsiCo executive
Nooyi joined PepsiCo in 1994 and was named president and CFO in 2001.
Nooyi has directed the company's global strategy for more than a decade
and led PepsiCo's restructuring, including the 1997 divestiture of its
restaurants into Tricon, now known as Yum! Brands. Nooyi also took the
lead in the acquisition of Tropicana in 1998,[7] and merger with Quaker
Oats Company, which also broughtGatorade to PepsiCo. In 2006 she
became the fifth CEO in PepsiCo's 44-year history.[8]
According to BusinessWeek, since she started as CFO in 2000,[9] the
company's annual revenues have risen 72%, while net profit more than
doubled, to $5.6 billion in 2006.[10]
Nooyi was named on Wall Street Journal's list of 50 women to watch in
2007 and 2008,[11][12] and was listed among Time's 100 Most Influential
People in The World in 2007 and 2008. Forbes named her the #3 most
powerful woman in 2008.[13] Fortune ranked her the #1 most powerful
woman in business in 2009 and 2010. On the 7th of October 2010 Forbes
magazine ranked her the 6th most powerful woman in the world.[14][15]
Compensation
While CEO of PepsiCo in 2011, Nooyi earned a total compensation of $17
million which included a base salary of $1.6 million, a cash bonus of $2.5
million, pension value and deferred compensation was $3 million.[16]

20

Honours, awards and international recognition

Forbes magazine ranked Nooyi fourth on the 2008 and 2009 list of The
World's 100 Most Powerful Women.[17] Fortune magazine has named
Nooyi number one on its annual ranking of Most Powerful Women in
business for 2006, 2007, 2008, 2009 and 2010.[18][19][20][21]In 2008, Nooyi
was named one of America's Best Leaders by U.S. News & World Report.
[22]

In 2008, she was elected to the Fellowship of the American Academy of

Arts and Sciences.[23]

In January 2008, Nooyi was elected Chairwoman of the US-India Business
Council (USIBC). Nooyi leads USIBC's Board of Directors, an assembly
of more than 60 senior executives representing a cross-section of
American industry.[24][25]
Nooyi has been named 2009 CEO of the Year by Global Supply Chain
Leaders Group.[26]
In 2009, Nooyi was considered one of "The TopGun CEOs" by Brendan
Wood International, an advisory agency.[27][28] In 2010 she was named #1
on Fortune's list of the "50 Most Powerful Women" and #6 on Forbes' list
of the "World's 100 Most Powerful Women".[29][30]After five years on top,
PepsiCo's Indian American chairman and CEO Indra Nooyi has been
pushed to the second spot as most powerful woman in US business by
Kraft's CEO, Irene Rosenfeld.[31]
Nooyi was named to Institutional Investor's Best CEOs list in the AllAmerica Executive Team Survey in 2008 to 2011.[32]

21

Year

Name

2013 Honorary Degree

Awarding organization
North Carolina State

Ref.

[33]

University.

2011 Honorary Doctor of Laws

Wake Forest University.

2011 Honorary Doctor of Laws

University of Warwick.

[34]

2011 Honorary Doctorate of Law

Miami University.

[35]

2010

Honorary Doctorate of Humane

Pennsylvania State

Letters

University.

[36]

2009 Honorary Degree

Duke University.

[37]

2009 Barnard Medal of Honor

Barnard College.

[38]

2008 Honorary Degree

New York University.

2007 Padma Bhushan

President of India.

[39]

2004 Honorary Doctor of Laws

Babson College.

[40]

22

Memberships and Associations

Nooyi is a Successor Fellow of the Yale Corporation.[41] She serves as a
member of the Foundation Board of the World Economic
Forum, International Rescue Committee, Catalyst[42] and the Lincoln
Center for the Performing Arts. She is also a member of the Board of
Trustees of Eisenhower Fellowships, and has served as Chairperson of the
U.S.-India Business Council.
Nooyi serves as an Honorary Co-Chair for the World Justice Project.
The World Justice Project works to lead a global, multidisciplinary effort
to strengthen the Rule of Law for the development of communities of
opportunity and equity.
Popular culture and shows
Nooyi has also been mentioned in two episodes of the hit CW
show, Gossip Girl, where one of the main characters, Blair Waldorf plans
to get an internship under her.[43]
Personal life
Nooyi is married to Raj K. Nooyi. They have two daughters and reside
in Greenwich, Connecticut. One of her daughters is currently attending the
School of Management at Yale, Nooyi's alma mater.[44] Forbes ranked her
at the 3rd spot among 'World's Powerful Moms' list.[45]
Her elder sister Chandrika Krishnamurthy Tandon is a well-known singer.
[46]

Conclusion

23

Mrs Indira Nooyi the first Indian lady to earn the post of CEO in
corporate world. She joined the Pepsi co in 1996 as Senior Vice-president,
in 2000, she was promoted as Chief Financial Officers and in 2006, and
she was promoted as CEO of Pepsi co, only because of her diverse global
experience and tactics to handle the global problems in the business
environment which is a dynamic in nature. Pepsi co majorly deals with its
carbonated drinks and snacks and at the time when she joined the Pepsi
Co, the market is at the point of saturation and even they are suppressed
with strong global competitors but beside so with her global problems
solution tactics,

today Pepsi has move ahead their competitors. She

believes in diversifying their business and she quickly adjust their business
with the prevailing scenario as the Charles Darwin quotes, It is not the
strongest of the species that survives, nor the most intelligent, but the one
most responsive to change

References
24

 Case folio, ICFAI journals, July 2009 edition.

Leadership by Kanwal Gurleen, Lecturer, LSB

www.pepsico.com

25