A STUDY ON FUNCTIONING OF

“A STUDY ON INTERNATIONAL MARKETING STRATEGIES OF

PEPSICO.”

SALMAN MOHAMMED ABDUL RAZZAQ

By

OU ID: 128918404050

Under the guidelines of

APEKSHA GUPTA

Submitted in partial fulfilment for the award of the Degree of

BACHELOR OF COMMERCE (Vocational)

By Osmania University, Hyderabad-500007

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 Declaration

I, hereby declare that this project titled “A STUDY ON INTERNATIONAL MARKETING

STRATEGIES OF PEPSICO.” Is an original work carried out by me, under the guidance of

(Designation of faculty). The report by me is a bonafide work carried by me of my own efforts

and it has not been submitted to any other university or published any time before.

Signature of the student

Date:

Place:

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 Certificate

Certified that this project titled “Marketing strategies of PepsiCo.” is bonafide work of “A

STUDY ON INTERNATIONAL MARKETING STRATEGIES OF PEPSICO”, who carried out

the research under my supervision, certified furthers, that to the best of my knowledge the work

reported here is done not from part of any other thesis dissertation on the basis of which a degree

or award was conferred one an earlier occasion on this or any other candidate.

Signature of the Faculty Guide

Date:

Place:

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 Acknowledgement

It was a great pleasure to work on this project and gain valuable knowledge and it was a

wonderful experience of doing a research study.

I would like to thank all faculty members of ETHAMES DEGREE COLLEGE for guiding and

supporting me in the completion of project from time to time.

I owe my gratitude to Mrs. Apeksha Gupta for supporting my thoughts and believing in me

which had a very positive impact on my ways of executing this project and helped me gain the

valuable knowledge and etiquettes.

Last but not the least, my gratitude to the great Almighty and my parents without whose

concerned and devoted support the project would not have been the way it is today.

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 Table of Contents

TOPIC PAGE NO.

Title page

Declaration by student trainee

Certificate from company

Certificate from guide

Acknowledgement

Content page

Executive Summary

Chapter. 1

Introduction ………………………………………………. 9-11

a. Objectives ……………………………. 11

b. Need for the study …………………… 11

c. Scope of the study……………………. 11-12

d. Methodology………………………..... 12

e. Tools & Technique……………………. 12

f. Hypothesis…………………………….. 12-13

Chapter .2

Literature review……………………………………………………. 14-17

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Chapter.3

Companies overview…………………………………………..

Industry overview…………………………………………...

Chapter .4

Data Analysis…………………………………………………

Chapter .5

Findings, recommendations & conclusion…………………………….

Annexure………………………………………………………...

Questionnaire …………………………………………………...

Documents supporting if any …………………………………...

Bibliography…………………………………………………….

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 PREFACE
S

ummer Training in any organization is an attempt to provide the student a practical input and
exposure to the real world situation in which he has to work in future.

The Extract of the work is presented in this report under various headings as, Introduction,
Company’s Profile, Project Introduction, Methodology, Data analysis, Suggestions and
Conclusions.

This report provides me a chance to study and analyses the practical aspects of the topic (A
study on international marketing strategies of PepsiCo.). It enhanced my knowledge in the
field of marketing. This project also gave me the chance to improve logical thinking and
interacting patterns.

While working on the project, I came to know about the latest marketing strategies and
trends prevailing in the market. The way of promoting the products, providing a better
convenience of customer, and developing the new strategic technique to sell the product.

ABSTRACT
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Pepsi-Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in
stores, restaurants and from vending machines. The drink was first made in the 1890s by
pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June
16, 1903. There have been many Pepsi variants produced over the years since 1903, including
Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi
Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next (available in
Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, and Pepsi Ice Cucumber
in Japan.
Pepsi cola is situated is an Industry that is dominator by two Competitors Coca Cola and of
course themselves. Although Pepsi and Coke basically go after all consumers who purchase soft
drink beverage Coca Cola targets it product at the head of household. According to the beverage
digest the customer base for soft drinks is whopping 95% of regular user in United States. This
represents the large number of potential customers for Pepsi Cola. The Pepsi's advertising the
campaigns are referring to the markets that marketers refer to as Generation X. The Generation X
consumer is profiled to be between the ages of 18 to 29. They have high expectations in life and
very active. They adopt a lifestyle of living for today and not worry about long term goal. They
also have a focus on the 12 to 18 year old market. Caleb Bradham bought the name "Pep Kola"
from a local competitor and changed it to Pepsi-Cola. "Pepsi-Cola" is an anagram for
"Episcopal" - a large church across the street from Bradham's drugstore.

Caleb Bradham and his customers simply thought the name sounded well or the fact that the
drink had some kind of "pep" in it because it was a carbonated drink; they gave it the name
"Pepsi".

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 CHAPTER - 1
INTRODUCTION TO THE TOPIC

1. The main purpose of this study is determining the different strategies that are adopted by the
companies.
2. The strategies will be evaluated to see which one is the best amongst them and which are most
effective.
3. Acceptability of Pepsi products by the consumers and marketers.
4. Identifying the competitors and positioning Pepsi in comparison to them.
5. To find out marketing strategy of Pepsi.
6. To analyze the SWOT analysis of Pepsi.
7 To know about customer value of Pepsi.
8. To know about customer perception towards Pepsi brand image
9. To know about customer satisfaction
10. Impact of market strategy on customer

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I have decided to present my research report on PepsiCo after studying its marketing strategies. I
worked on PepsiCo’s product range of beverages and focused on Pepsi Cola as the subject of my
analysis.

I have chosen Pepsi for many reasons. It is one of the biggest FMCG brands not only in India but
also globally. Indeed, Pepsi Cola is one of the fastest paced FMCG products worldwide. Pepsi
posed an exciting opportunity to study a brand that is automatically associated with youth and
energy. I worked on Pepsi in order to understand the various aspects of its marketing strategy
that has made it the Number 1 Cola drink in India. This study is focused on its strategies viz.
Coca Cola. I have also researched extensively on Pepsi’s distribution network and have made
suggestions as to how it can further improve its reach among users in the future.

 OBJECTIVE

The following are the objectives to be achieved at the end of the project.

 To understand the international business and marketing strategies of PepsiCo.

 To know marketing problems faced by the entity.
 To know about operating income, net income, total assets and total equity of PepsiCo.

 SCOPE OF THE STUDY

1. PROJECT NEEDS.

Project needs define what we need and why we need.

This particular project requires some sources of appropriate secondary data and previous
research projects in order to study the research problems and other aspects.

2. GOALS OF THE PROJECT.

The goal of the project is to understand international business and marketing strategies of
PepsiCo and as well as the problems of the entity and their methodologies to overcome them.

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 3. EXPECTATIONS FROM THE PROJECT.

As discussed, the major expectation from this very research project is to understand the
international business and marketing strategies used by PepsiCo and also the problems existing
along with it in the international business environment.

 METHODOLOGY
The Methodology of doing this project is through collecting secondary data which is already
available and all the statistical aspects and project methodology is done through secondary type
and primary type.

MARKETING RESEARCH:

Definition of marketing research as approved as by the board of directors of the association of

American marketing association is: “Marketing research is the function which links the customer
and public to the marketer through information – information used to identity and define
marketing opportunities and problems generate define and understanding of marketing as
process”. Simply, marketing research is the systematic design collection analysis and reporting
of data finding relevant to a specific
marketing situation facing the company.
Carefully planning through all stages of
the research is a necessity. Objectivity in
research is all-important. The heart of
scientific method is the objective
gathering of the information. The
function as marketing research within the
company as to provide the information and analytical necessary for effective.
 Planning of the future marketing activity.
 Control of the marketing operation in the present.
 Evaluation of marketing results.

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A research may undertake any of the three types of research investigation depending upon the
problem. These types of research included:
1. Basic research
2. Applied research
3. Designated Fact Gathering

APPLIED RESEARCH:

It is attempt to apply the various marketing technique, which have been developed as research,
first and later on they become applied research techniques. It is on attempt to apply the basic
principles and existing knowledge for the purpose of solving operational problems.

STEPS IN MARKETING RESEARCH:

The marketers follow a systematic and formalized process of marketing research to obtain the
accurate market information.

1. Defining a problem

2. Designing a research

3. Collecting data

4. Interpreting research

5. Reporting research

PRIMARY DATA:

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It consists of information collected for the specific purpose, survey research was used and he all
the details of PepsiCo. And their competitors were contacted. Survey research is the approached
gathering description and information.

SECONDARY DATA COLLECTION:

The secondary data consists of information that already existing somewhere having been
collected for another purpose. Any researcher begins the research work by first going through
secondary data. Secondary data includes the information available with company. It may be the
findings of research previously done in the field. Secondary data can also be collected from the
magazines, newspapers, internet other service conducted by researchers.

METHODS OF DATA COLLECTION:

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The study includes in it the data collected through both primary and secondary sources.
Primary data is collected with the help of structured questionnaire and personal meeting.

Questionnaire is

administered on the sample respondents. However there are certain cases where personal
interactive method is followed with customers to find the satisfaction level.

RESEARCH METHODOLOGY:

The respondents are the Employees, team leaders etc. currently working in PepsiCo. The survey
was carried out online due to the pandemic (COVID-19). The survey was carried out with the
help of a structured questionnaire, which help in accomplishing the research objective. The
respondents by means of personal interview administer during the event shows this structured
questionnaire.

 TOOLS AND TECHNIQUES

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The techniques used in this research project are:-
 Representation of statistical data.
 Secondary sources of collecting information like articles and previously studies research
aspects.
 Study on company’s organizational structure.

 ABOUT THE COMPANY

PepsiCo, Inc. is an American

based multinational food, snack,
and beverage corporation headquartered
in Harrison, New York, in the hamlet
of Purchase. PepsiCo's business
encompasses all aspects of the food and
beverage market. It oversees the
manufacturing, distribution, and
marketing of its products. PepsiCo was
formed in 1965 with the merger of
the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake
product Pepsi Cola to an immensely diversified range of food and beverage brands. The largest
and most recent acquisition was Tropicana Products in 1998 and the Quaker Oats Company in
2001, which added the Gatorade brand to the Pepsi portfolio.

As of January 2021 the company possesses 23 brands that have over $1 billion in sales. PepsiCo
has operations all around the world and its products were distributed across more than 200
countries, resulting in annual net revenues of over $70 billion. Based on net revenue, profit, and
market capitalization; PepsiCo is the second-largest food and beverage business in the world,
behind Nestlé. PepsiCo's flagship product Pepsi Cola has been engaged in a rivalry for
generations with Coca-Cola, commonly referred to as the Soda Wars. Despite Coca-Cola
outselling Pepsi Cola in the United States, PepsiCo within the North American market is the
largest food and beverage company by net revenue. Ramon Laguarta has been the chief
executive of PepsiCo since 2018. The company's beverage distribution and bottling is conducted
by PepsiCo as well as by licensed bottlers in certain regions.

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Pepsi has been repeatedly criticized by
environmentalists for its relationship to
negative environmental impacts of
agriculture in its supply chain, and
distributing operations such as palm oil-
related deforestation and pesticide use, its
use of water resources, and the negative
impacts of its packaging -- Pepsi's
packaging has consistently been one of the top sources of plastic pollution globally.[3] Similarly
public health advocates have criticized Pepsi's high-calorie, poor nutrition product lines along
with other popular snack and drink manufacturers. In response, PepsiCo has made public
comments on their commitment to minimizing their impact but has not released public
information progress on all of its public commitments. As Pepsi was initially intended to cure
stomach pains, many believe Bradham coined the name Pepsi from either the condition
dyspepsia (stomachache or indigestion) or the possible one-time use of pepsin root as an
ingredient (often used to treat upset stomachs). It was made of carbonated water, sugar, vanilla,
rare oils, and kola nuts. Whether the original recipe included the enzyme pepsin is disputed.

"To be the world's premier consumer Products Company focused on convenience food and
beverages. We seek to produce healthy 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. And in everything we do, we strive for honesty, fairness and integrity."

 Our Vision

"To build a leading total beverage company, delighting consumers by best meeting their
everyday beverage needs, and stakeholders, by delivering performance with purpose, through our
talented people."

 PepsiCo Sustainability 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"

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“Tomorrow better than Today”

 HYPOTHESIS

PepsiCo’s Jeff Bezos focused on the oldest of old business principles—extraordinary customer
obsession to the level that each customer is treated individually—and turned it into the ultimate
business purpose of his company. As everyone knows, digitization was the engine that enabled
the company to treat each one of its more than 100 million customers as if they were shopping at
a corner store in a small town. But the true magic in how PepsiCo built this system isn’t just
technological—it’s organizational. It’s all about making better decisions and making them fast.
In this research project we will learn how PepsiCo adapted the principles and how efficiently
they executed the principles in order to build a solid and firm organizational and also
technological business system.

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 CHAPTER – 2
 LITERATURE REVIEW

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