PepsiCo

Strategy &
Innovation
concepts
Arushi Bhattacharya
Sayali Kolhe
Tejaswini S
Rohini Sammeta
 01
Strategies
Horizontal Expansion Fair pay!
Fair hours!

● Cracking international & developing

countries’ markets.
● Structure
● Labour Unions- diseconomies of
scale
 Vertical expansion
Outsourcing
Warehousing

Distribution

Customer Care
Umbrella branding

Brands that are 22 brands

good/better/fun for you
Adaption to market
Longevity from requirements &
health consciousness consumer preferences
 Complementarities

● Co-merchandised snacks & beverage =>

increase their purchases
● Global campaign cross-promoting Pepsi
& Lay’s (perfect party)
● Tropicana & Quaker Oats; Doritos &
Mountain Dew
● Pepsico formed w/ Pepsi-Cola & Frito
Lay
Substitutes

● 7up made with stevia,

Pepsi Zero
● SodaStream
● Pepsi-Coke rivalry
Advertising

Pepsi ●
2016
Stopped advertising @ superbowl
challenge ● Switched to social media to reach
target audience

Endorsements with celebs/ AI Food Trends (New Flavor)

targets age group- 18 to 35 yrs.
transaction cost
● Transaction costs = Sunk costs
● Government initiatives to reduce trade barriers;
easy flow of business activities
● Political stability
● Improvement in intergovernmental collaboration
● Produce volume-related scale efficiencies
● Enhance inventory management
● Distribution networks - effective implementation
Search cost

● PepsiCo has been aggressively building up its database for the last 5
years
● Regularly uses Pepviz’s data while working with retailers
● PepsiCo’s market dominance allows them to negotiate favourable
relationships & shelf space with retailers
 02
Innovations
Innovations

1. 2. 3.

Recyclable plastic Cans Machine learning

For packaging technique
 Intellectual PRoperty rights

Tradem
arks Hockey sticks
& rackets

500
patents
Porter’s framework

Internal Entry/exit
rivalry barriers

Substitutes & Buyer &

Complimentarities supplier power
Thank you!
 arushi.bhattacharya@flame.edu.in
sayali.kolhe@flame.edu.in
tejaswini.s@flame.edu.in
Team Member emails rohini.sammeta@flame.edu.in