Because Pepsi isn't a trend; it's iconic.

It's world wide, which offers variety, the ability to relocate and
transfer anywhere, it offers growth and stability. Pepsi is a household name, it has staying power and
that is very important to me.

Pepsi (stylized in lowercase as pepsi) is a carbonated soft drink that is

produced and manufactured by PepsiCo. Created and developed in 1893 and
introduced as Brad's Drink, it was renamed as Pepsi-Cola on August 28,
1898, then to Pepsi in 1961.

Pepsi-Cola trademark
The original trademark application for Pepsi-Cola was filed on September 23,
1902 with registration approved on June 16, 1903. In the application's
statement, Caleb Bradham describes the trademark as an 'arbitrary
hyphenated word "PEPSI-COLA"', and indicated that the mark was in
continuous use for his business since August 1, 1901. The Pepsi-Cola's
description is a flavoring-syrup for soda water. The trademark expired on April
15, 1904.

A second Pepsi-Cola trademark is on record with the USPTO. The application

date submitted by Caleb Bradham for the second trademark is Saturday, April
15, 1905 with the successful registration date of April 15, 1906, over three
years after the original date. Curiously, in this application, Caleb Bradham
states that the trademark had been continuously used in his business "and
those from whom title is derived since in the 1905 application the description
submitted to the USPTO was for a tonic beverage". The federal status for the
1905 trademark is registered and renewed and is owned by PepsiCo of
Purchase, New York.

The Pepsi Logo

The original trademark application for Pepsi-Cola was filed on September 23,
1902 with registration approved on June 16, 1903. In the application's
statement, Caleb Bradham describes the trademark as an arbitrary
hyphenated word PEPSI-COLA, and indicated that the mark was in
continuous use for his business since August 1, 1901. The Pepsi-Cola's
description is a flavoring-syrup for soda water. The trademark expired on April
15, 1994.

The various pepsi logos in the course of the years

A second Pepsi-Cola trademark is on record with the USPTO. The application

date submitted by Caleb Bradham for the second trademark is Saturday, April
15, 1905 with the successful registration date of April 15, 1906, over three
years after the original date. Curiously, in this application, Caleb Bradham
states that the trademark had been continuously used in his business and
those from whom title is derived since in the 1905 application the description
 submitted to the USPTO was for a tonic beverage. The federal status for the
1905 trademark is registered and renewed and is owned by Pepsico, Inc. of
Purchase, New York.

SWOT analysis of PepsiCo analyses the brand/company with its strengths, weaknesses, opportunities
& threats. In PepsiCo SWOT Analysis, the strengths and weaknesses are the internal factors whereas
opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like PepsiCo to
benchmark its business & performance as compared to the competitors and industry. PepsiCo is one
of the leading brands in the food & beverages sector. The table below also lists the top PepsiCo
competitors and elaborates PepsiCo market segmentation, target group, positioning & Unique Selling
Proposition (USP).

PepsiCo SWOT, Competitors, Marketing STP & Brand analysis Table

PepsiCo Brand Analysis

Parent Company PepsiCo Ltd

Category Beverages and foods

Sector Food & Beverages

Live for Now; Every Generation Refreshes The World; Something for
Tagline/ Slogan
Everyone; Yeh dil mangey more

One of the most popular global brands in the foods and beverages sector
USP
targeting the youth

PepsiCo STP

Segment Middle and upper middle class people

Target Group The younger generation (15 to 35 years of age)

Positioning As a food and beverage brand with multiple products catering to the youth
 PepsiCo Product Portfolio

1. Pepsi 2. Nimbooz
3. Diet Pepsi 4. 7UP
5. Mirinda 6. Slice
Brands 7. Aquafina Water 8. Tropicana
9. Lays 10.Gatorade
The above mentioned brands are the prominent products under the PepsiCo
product portfolio.

PepsiCo SWOT Analysis

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis

of PepsiCo. Strengths are:
1.One of the most popular and globally recognised brands in foods and
beverages
2. One of the most diversified product portfolio
3. Popular subsidiary brands like Frito Lay, Gatorade, Pepsi, Quaker, Tropicana,
Yum! Brands, etc.
4. Global reach with presence in over 200 countries
Strengths 5.An employee strength of around 300,000 people
6. 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
8.Strong and efficient supply chain network, ensuring that all the products are
available even in the most remote places
9. Excellent branding and advertising with global celebrity as brand ambassadors
10. Tie-ups, sponsorships with global sports events, music concerts, etc

Here are the weaknesses in the PepsiCo SWOT Analysis:

1.Strong competition in the aerated drinks segment from Coca Cola means high
Weaknesses brand switching
2. Cases against products have been blown out of proportion, thereby affecting
brand image

Following are the Opportunities in PepsiCo SWOT Analysis:

1.Increase penetration into developing countries and capture their market
Opportunities 2.Increase its product portfolio by acquisition of other brands
3.To expand the Yum! Brands eatery in untapped countries and regions like tier
2 cities
 4.To improve its brand image by involving in more CSR activities to benefit the
locals

The threats in the SWOT Analysis of PepsiCo are as mentioned:

1.Health consciousness amongst people can take a toll on its aerated drinks and
snacks food markets
2.Compliance with different government regulations and norms in different
Threats
countries
3.Inlation, economic slowdown and instability causes decline in the purchasing
power of consumers
4.Strong competition from other brands in each segment of its operation

PepsiCo Competition

Below are the top 3 PepsiCo competitors:

1.Coca Cola Company
Competitors
2.Kraft Foods
3.Dr Peppers Snapple Group

The brandguide table above concludes the PepsiCo SWOT analysis along with its marketing and
brand parameters.

WAREHOUSING

PepsiCo, one of the world’s leading producers of convenience foods and beverages, has
awarded a ten-year contract to Kuehne + Nagel for its Dutch warehousing and distribution
activities.

Kuehne + Nagel’s solution exploits synergies to secure a faster and environmentally friendly
supply chain.

PepsiCo decided to outsource its warehousing, freight management and distribution operations
in the Netherlands to achieve three main goals: The global food and beverages corporation
wanted to improve customer service by responding even quicker to changing market demands
while at the same time reducing supply chain costs as well as the environmental impact of its
transportation activities.

“We have chosen Kuehne + Nagel due to the company’s in-depth knowledge of the FMCG
industry,” said Erwin Rosens, Supply Chain Director at PepsiCo Netherlands. “They provide us
with an integrated and flexible solution that copes with the daily patterns and seasonality of the
food industry.”
Within the scope of the contract, Kuehne + Nagel provides a supply chain solution tailored to
PepsiCo’s specific needs. By integrating PepsiCo into Kuehne + Nagel’s Dutch distribution
network, fewer kilometres will be needed to transport salty snacks, cereals and nuts from
Belgian and Dutch manufacturing sites to the distribution centre in Utrecht and further to
retailers throughout the Netherlands. In addition, Kuehne + Nagel will develop a new state-of-
the-art, multi-user FMCG (Fast Moving Consumer Goods) campus in Utrecht, equipped with
high bay storage and automatic layer picking during the first year of the agreement.

“We are delighted that PepsiCo has trusted us to increase the efficiency of its warehousing and
supply chain activities in the Benelux. It is a confirmation that we provide optimal service to
FMCG customers,” said Tim Beckmann, Director Contract Logistics at Kuehne + Nagel
Netherlands.

Three distribution channels

PepsiCo Inc. (PEP) is a leading food and beverage company with an impressive global
presence. The company’s products reach the market through the following three channels:
direct store delivery (or DSD), customer warehouse, and third-party distributor networks.
PepsiCo chooses the relevant distribution channel based on customer needs, product
characteristics, and local trade practices.

Direct store delivery

Under the DSD system, PepsiCo delivers products directly to retail stores. Of the three
channels, DSD enables PepsiCo to merchandise with maximum visibility. It’s more suitable
for products that are restocked often and are sensitive to promotions and marketing.
Customer warehouse

The customer warehouse system is a less expensive distribution channel. It’s ideal for
products that are less fragile and perishable, have lower turnover, and are not purchased
impulsively.

Third-party distributor networks

PepsiCo distributes food and beverage products to restaurants, businesses, schools, and
stadiums through third-party food service and vending distributors and operators.

Leveraging its dominant position

PepsiCo is the second-largest nonalcoholic beverage maker in the United States with a
large scale of operations. The company’s dominant position helps it enjoy favorable
relationships with its retailers, who allow the company to have major shelf space. This helps
PepsiCo influence consumer shopping patterns and increases the coincidence of purchase
of its complementary food and beverage products.

You can invest in PepsiCo through exchange-traded funds (or ETFs) such as the Consumer
Staples Select Sector Standard & Poors depositary receipt (or SPDR) Fund (XLP) and the
SPDR MSCI World Quality Mix exchange-traded fund (or ETF) (QWLD).

PepsiCo also manufactures and distributes certain brands licensed from Dr Pepper Snapple
Group, Inc. (DPS) such as Dr Pepper, Crush, and Schweppes, as well as certain juice
brands licensed from Dole and Ocean Spray.

The extensive distribution of PepsiCo and The Coca-Cola Company (KO) gives them a
competitive edge against other nonalcoholic beverage makers

OVERVIEW

Overview of PepsiCo’s food business

PepsiCo Inc. (PEP) is a leading food and beverage company that manufactures and
distributes its products in more than 200 countries. Food products that PepsiCo
manufactures include chips, flavored snacks, cereals, rice, pasta, and dairy-based
products. The company’s beverage product portfolio includes carbonated soft drinks,
juices, ready-to-drink tea and coffee, sports drinks, and bottled water. Headquartered in
Purchase, New York, the company employs around 274,000 people worldwide.

According to Information Resources, Inc. (or IRI), a market research company, PepsiCo
owns nine of the 40 largest packaged goods trademarks in the United States. The
company owns several brands, and 22 of them, including Pepsi, Lays, and Gatorade,
generate more than $1 billion each in revenues.
A brief history of PepsiCo
PepsiCo was formed in 1965 with the merger of Pepsi-Cola Company and Frito-Lay,
Inc. At that time, Pepsi-Cola Company was manufacturing Pepsi-Cola, Diet Pepsi, and
Mountain Dew. Frito-Lay’s products included Fritos corn chips, Lay’s potato chips,
Cheetos cheese flavored snacks, Ruffles potato chips, and Rold Gold pretzels. PepsiCo
grew bigger with the 1998 acquisition of Tropicana and the 2001 merger with Quaker
Oats.

The combination of these companies made PepsiCo a strong diversified consumer

staples firm. In the next part of this series, we’ll discuss PepsiCo’s business model in
detail.

PepsiCo’s competitors
PepsiCo competes with global, regional, and private companies across the food and
nonalcoholic beverage space. In the food industry, the company’s rivals include
ConAgra Foods, Inc. (CAG), Kellogg Company (K), Kraft Foods Group Inc. (KRFT),
Mondelez International, Inc. (MDLZ), Snyder’s-Lance, Inc. (LNCE), and Nestlé S.A.
(NSRGY).

In the nonalcoholic beverage industry, The Coca-Cola Company (KO) is PepsiCo’s

closest rival. Other peers in the beverage industry include Dr Pepper Snapple Group,
Inc. (DPS), Cott Corporation (COT), Red Bull GmbH, and Monster Beverage
Corporation (MNST).

Investing through ETFs

Food and beverage companies like PepsiCo are part of the consumer staples sector.
You can invest in this sector through exchange traded funds (or ETFs) such as the
Consumer Staples Select Sector Standard & Poors depositary receipt (or SPDR) Fund
(XLP). PepsiCo is also part of other ETFs such as the SPDR S&P 500 ETF (SPY) and
the Vanguard Dividend Appreciation ETF (VIG).
Diversified business model
PepsiCo Inc. (PEP) has a diversified business model with a strong presence in food and
beverage products. In a scenario where carbonated soft drinks have been continually
declining, PepsiCo’s significant presence in the snack food category gives it an edge
over its closest rival, The Coca-Cola Company (KO), which is heavily dependent on
sparkling or carbonated beverages. In 2013, PepsiCo’s food business accounted for
52% and its beverage business accounted for 48% of the company’s $66.4 billion
revenues.