About The Company

PepsiCo, Incorporated is a Fortune 500, American global corporation headquartered in Purchase, Harrison, New York, with interests in the manufacturing, marketing and distribution of grainbased snack foods, beverages, and other products. PepsiCo entered India in 1989 and has grown to become one of the countrys leading food and beverage companies.

One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India Beverages:-PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Nimbooz, Miranda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks Tropicana Nectars, Tropicana Twister and Slice. Local brands Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands. Foods:-PepsiCos food division, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lays Potato Chips; Cheetos extruded snacks, Uncle Chips and traditional snacks under the Kurkure and Lehar brands. The companys high fiber breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lays core products, Lays, Kurkure, Uncle Chips and Cheetos are cooked in Rice Bran Olio significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets.

MISSION STATEMENT
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 even 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.

VISION STATEMENT
PepsiCo's responsibility is to continually improve all aspects of the world in which we operate environmental, social, economic creating a better tomorrow than today. Our vision is put into action through programmes and a focus on environmental stewardship, activities to benefit society and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

STRATEGY OF PEPSICO
At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society delivering what we call Performance with Purpose. Our approach to superior financial performance is straightforward drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability.

SWOT Analysis:Strengths.

Strong Market Position

Strong and Effective Advertising.

Filtered Water instead of Spring Water makes the production, logistics,and profit margins a lot greater on their bottled water sales(Aquarian)Weaknesses.

Weaknesses

Health Craze will hurt soft drink sales.b.

A huge lobby against soft drink industry led by leaders like Baba Ramdevwill hurt as these leaders have a huge fan following in the countr

Opportunities. Threats Sluggish growth of carbonated drinks.

Acquisitions & alliances.

Bottled water growth Threats.

Coca-Cola & other smaller, more nimble operators

Commodity price increases, fluctuating oil prices effect production and distribution (gas, plastic) Increasing health concerns over carbonated drinks

Pest Analysis Political

PepsiCo

product

are

subject

to

various

federal

laws

Land

acquisition

for

new

factories

Govt.

focusing

on

stricter

water

pollution

norms

Raw

Material

prices

great

worry.

ECONOMICAL New opportunities in other countries

Fuel

price

Availability

of

labor

Have

global

economic

perspective

SOCIAL

Replenishing

water

Partnership Solid waste

with management

farmers program

Solid

waste

management

program

TECHNOLOGICAL Operates in almost all the countries

Introduction Newer

of and

cans

and attractive

plastic

Bottles Designs

State-of-the-Art plants

Competitive analysis

PepsiCo produces soft-drinks, snack foods and other beverages. Its operations are conducted through PepsiCo, Frito-lay, and Quaker brands both domestically and internationally. The competitive analysis of PepsiCo is done using Michael porters Five Force Model. Rivalry among existing competitors: The PepsiCo and Coca-Cola form a strong duopoly market in this industry. The desire to be the market leader or to corner a large market share leads to great rivalry between these two giants. Greater competition for market share and increased cost pressure has resulted in weaker companies losing market share to these two companies (Kazmi, 2002). Threat of New entrants:

The beverages and food industries are highly saturated, as a result of which the barriers to new entrants are generally very low. With strong presence in the market Pepsi and Coco-cola enjoys good relationship with retail channels. This has enabled them to defend their position in the market thus increasing the barriers for new entrants. Threat of Substitutes: There seems to be a perceptible threat of substitutes emerging as replacements with increasing popularity of fresh juices. This occurred due to the shift in consumption pattern of the people towards increased awareness of health consciousness. This is further enhanced by the declining prices of substitutes like Tea, Milk, Beer, Coffee, and Wine etc. Juices already enjoy high levels of penetration and frequency as a result of habitual drinking by consumers in the morning (Mintel, 2009). Bargaining power of Buyers: The bargaining power of buyers is more in case of purchases made at super markets and mass merchandisers. This will reduce the profitability of PepsiCo. Whereas in case of then vending machines the buyers do not enjoy any bargaining power. Bargaining power of Suppliers: The primary suppliers are those who supply sugar and packaging materials. As both sugar and aluminum are present abundant in the market, also there exist huge competition in these two industries, the bargaining power of the suppliers is low.

Internal Analysis

THIRD

PARTY

CONFLICT

RESOLUTION

Conflict is a normal and natural part of public planning and community life. Conflict resolution requires good faith efforts on the part of conflicting parties, as well as a neutral third party. Third party conflict resolution is any attempt by a relatively neutral person to help the parties resolve the problem they are having. In third party conflict resolution, Alternative Dispute Resolution

(ADR) is a process that is designed to resolve a conflict between parties who are unable to reach an agreement. It also provides a structured, semi-formal and orderly way for people to find agreement. There are generally three types of third party conflict resolution which are arbitration, mediation and inquisition. These activities can be classified by their level of control over the process and control over the decision. For inquisition, the inquisitors have high level of process control and decision control.

External Analysis

To reduce its dependence on US, the company has acquired Russian juice giant,

It can still broaden its customer base by pleasing initiatives to penetrate into changing lifestyles of the consumers.3.

PepsiCo is on verge of making investment worth $1,000 million in republic of china and $500million in India, apart from Mexico and Brazil in order to decrease its dependence on US.4.

Bottled water market is expected to be of $24 million by 2012. In this sphere, PepsiCo has positioned itself well.5.

Also by introducing new savory snacks, it has set itself up for growing market, which is expected to be worth $28 million by 2013.

The soft drink market in US is expected to decline by 2.7% in 2012 that accounts for $

4,475million, which would affect PepsiCo as well.2.

The federal governments concerns related to health, environment and safety may lead to adverse affect on PepsiCos image.3.

PepsiCos main threat is the coca-cola company, along with Kraft foods, Nestle and Grouped none. Coca-cola also joined it in the juice market recently.

Being a labor dependent company , it is vulnerable to labor lockouts and strikes. As we saw in 2008, in India when the production was shut down for a whole month, creating problems for manufacturing and distribution as well.

Marketing analysis

study about the marketing strategy of Pepsi and its impact on customer side. To know about the customer perception towards PepsiCos product and Brand Image. I also research on the customer satisfaction level. I study about how PepsiCo provided different value to their different customer.

PepsiCo offers the worlds largest portfolio of billion-dollar food and beverage brands, including 18 different product lines each generating more than $1 billion in annual retail sales. PepsiCo nourishes consumers with a range of products from tasty treats to healthy eats that deliver enjoyment, nutrition, convenience as well as affordability. The group has built an expansive beverage and foods business. PepsiCo have a variety of range in their products they have food and beverage segment like in food they have Alvio, Kurkure, Lays and Quaker Oais. And in beverage they have Pepsi, Mountain Dew, Slice, 7up and Nimbooz. I did descriptive and exploratory research to know about the different facts of PepsiCo and their customer. Exploratory research I did on Pepsis customer and Descriptive research on Pepsis retailer. I collect both as well as Primary and Secondary data to know more about PepsiCo and about consumer preference. I took 30 sample of Pepsi retailer to know about the PepsiCo point of view and100 sample of customer. I took non probability sampling. Non probability Convince sampling for PepsiCo customer and Non Probability Judgmental sampling for PepsiCo retailer. With the help of convenience sampling I can easily reach to PepsiCo consumer and by the judgment of different retailer I took their interview. I make questionnaire 0f 15 question which filled up by different 100 customer. I took help of graphical presentation to present these facts into my report. According to findings I know about the awareness level of customer of different PepsiCo brands. So according to the result People are well aware about those brand which are promote heavily by PepsiCo. My next question to know about the regular use of Pepsi. This is very low only 25 % people regularly using Pepsi other 75% are not brand loyal.

Then researcher finds out the buying priority of Pepsi on different parameter like Refreshment, Taste, Brand and for thrust. Where I found that mostly People Prefer buying on refreshment base. According to my research college going students are mostly buy Pepsi and Child, Sports men are came after this. My recommendation that PepsiCo should Promote their all brand equally to make people aware towards their brands. They should Promote their brand on continues bases. They should focus more on sports men brand ambassador also. They should promote their product in rural area also so they can tapped the huge market in India as Coca- Cola is doing. They should also take part in Green marketing or social welfare activities to make the brand image of PepsiCo. They should increase their CSR activities. PepsiCo is market Leader so its hard to retain this position in todays competitive environment. So they have to focus on their brand image they have to increase their brand loyal customers. They have to choose other medium of advertisement like newspaper, wall painting, Internet etc. so they can reach to their customer easily. PepsiCo is good brand name. People trust on PepsiCo on the Quality base so they should increase their kind of image in the market.

Objectives: To find out marketing strategy of Pepsi. 2. 3. To analyze the SWOT analysis of Pepsi. To know about customer value of Pepsi.

4. 5. 6.

To know about customer perception towards Pepsi brand image To know about customer satisfaction Impact of market strategy on customer

Recommendations: 1. PepsiCo should Promote their all products like Alvio, Gatorade and Quaker Oats 2. PepsiCo should promote their product in Rural area also as Coca-cola is doing. 3. PepsiCo should expand the Brand Image of Pepsi (People are only correlating it with youth- Youngistan)

4. As Coca- Cola shows its logo at the end of every advertisement of its each product/Brands, so Pepsi should also show its logo in its each Brands advertisement 5. PepsiCo also should go equally to other medium of advertisement like pepper, hording and internet. 6. PepsiCo should also continuous participate in Sporting events. 7. PepsiCo can take part in IPL also 8. PepsiCo should also focus on Green marketing like other companies doing like- Idea, Aircel etc. 9. PepsiCo mostly Brand ambassador came from bollywood so they should focus on Sporting celebrity like from cricket, football and hockey 10) People are not that much aware about some products of PepsiCo so they should focus on it. 11) The regular user of Pepsi is very low. So Pepsi have to convert those customer which are aware about Pepsi but not using it regularly, so try to make them brand loyal 12) Buying priority of most customers is refreshment so they should try to convert them in brand preference. 13) They should more target on Child and Sports men

14) They should show Quality and Trust base in their advertisement. 15) PepsiCo should focus on their brand ambassador they are changing it continues so they should take care of it Limitations: Research faced following limitation to complete this project 1) The Possibility of wrong interpretation and the ambiguity of question 2) Researcher needs basic technical knowledge regarding computers and regarding communication with the People, so it can limit Participation 3) The time and expertise to construct the survey. 4) Collect data from field 5) Accuracy of collected data from field 6) Lack of accurate, centralized and statewide information 7) Time and cost 8) Hard to get appointment with Pepsi retailer specially in Malls 9) Respond rate is very low 10) Sample size is small so the accuracy of information is in doubt 11) Tuff to analysis data that collect from field, especially from Pepsi customer 12) Companies employee does not want to share the information that needed to complete this project

Sap analysis

PepsiCo has followed rival Coca-Cola in standardizing on SAP enterprise resource planning software to manage its supply chain and other business systems.

PepsiCo used to rely on Oracle systems to run its business, but in a multimillion-pound global deal it is moving its core business systems to SAP.

It is rolling out the my SAP Business Suite across the US to look after brands such as PepsiCola, Tropicana juices and Quaker foods. A European roll-out is imminent, said a PepsiCo spokesman.

The company will use the SAP Net weaver integration and application platform to help to implement the my SAP Business software. PepsiCo said the new technology would streamline distribution and delivery, improve planning and forecasting, increase information transparency, and link supply chain and inventory processes with customer-facing activities.

PepsiCo president and chief financial officer Indra Nooyi said, "The adoption of a common technology platform is a significant step in the ongoing transformation of our business, which will drive efficiencies and effectiveness of our multiple operating divisions."

SAP

has

signed

similar

standardized

platform

deal

with

Lego.

Coca-Cola, a well-established SAP user, recently started to roll out new SAP supply chain

systems which would allow its delivery and logistics staff to integrate their data with back-end corporate databases using mobile devices.