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Outstanding Reputation. Broader Product line-creates synergy beyond the board. Large chargeless banknote flow- New Acquisition Great brands, able distribution, avant-garde capabilities Global bazaar baton in bite foods & non-carbonated beverages. PepsiCo sells three articles through the aforementioned administration channel. Huge Advertising Budget. Able Marketing Intelligence.

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Difficult to affect Vision and Direction for Large Global Company. Non Uniform Company name for some PepsiCo products. PepsiCo Lags baton Coca-cola in the all-embracing bazaar - Highly Elastic Demand. Big Health Issues for Pepsi Drink - Fat and Sugar. Falling Behind in All-embracing Markets, namely Russia, Venezuela, and South America. Health Issue in the Indian bazaar with baptize - independent pesticides.

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Expanding Food Division in the all-embracing market. Investment into added non carbonated articles in the US bazaar and regional. Avant-garde Customized articles technology Concentration on advantageous another articles as per the barter needs.

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Bottled Baptize Bazaar Faces Competition. Comply with All-embracing & Domestic Standards. Environmental affair PET Bottles Continuously increases in the amount of awkward oil and raw materials- affects the amount of accomplished products Terrorism-Anti-American Advocates

This broad product base plus a multi-channel distribution system serve to help insulate PepsiCo from shifting business climates. PepsiCo¶s arsenal also includes ready-to-drink teas.000 million of annual sales. and Sierra Mist. Large US customers could exploit PepsiCo¶s lack of bargaining power and negatively impact its revenues. Low Productivity . As of 2008 it ranked 26th amongst top 100 global brands. The company has the largest market share in the US beverage at 39%. This concentration does leave PepsiCo somewhat vulnerable to the impact of changing economic conditions.The company delivers its products directly from manufacturing plants and warehouses to customer warehouses and retail stores. Gatorade Mountain Dew. cakes and cake mixes. and labor strikes. and snack food market at 25%. Pepsi generates more than $15. Lipton Teas (PepsiCo/Unilever Partnership). as well as breakfast cereals. Pepsi is joined in broad recognition by such PepsiCo brands as Diet Pepsi. Tropicana Beverages. As a result PepsiCo¶s fortunes are influenced by the business strategy of Wal-Mart specifically its emphasis on private-label sales which produce a higher profit margin than national brands.Recently (2008) salmonella contamination forced PepsiCo to pull Aunt Jemima pancake and waffle mix from retail shelves.000 employees. Image Damage Due to Product Recall . Quaker Foods and Snacks. This is part of a three pronged approach which also includes employees making direct store deliveries of snacks and beverages and the use of third party distribution services. Wal-Mart¶s low price themes put pressure on PepsiCo to hold down prices. which was lower that its competitors. Such brand dominance insures loyalty and repetitive sales which contributes to over $15 million in annual sales for the company Diversification .Sales to Wal-Mart represent approximately 12% of PepsiCo¶s total net revenue. Mirinda. Doritos Tortilla Chips.439.000 million.SWOT Analysis PepsiCo Strengths y Branding . y y y Weaknesses y y y y Overdependence on Wal-Mart . Ruffles Potato Chips. Cheetos Cheese Flavored Snacks.In 2008 PepsiCo had approximately 198. juice drinks. Overdependence on US Markets . Thirst Quencher.PepsiCo¶s diversification is obvious in that the fact that each of its top 18 brands generates annual sales of over $1. Wal-Mart is PepsiCo¶s largest customer. Its revenue per employee was $219.One of PepsiCo¶s top brands is of course Pepsi. The strength of these brands is evident in PepsiCo¶s presence in over 200 countries. Distribution . bottled water. 52% of its revenues originate in the US.Despite its international presence. Tostitos Tortilla Chips. Lay¶s Potato Chips. Tostitos Tortilla Chips. This may indicate comparatively low productivity on the part of PepsiCo employees. ranked according to Interbrand. This . Fritos Corn. Aquafina Bottled Water. one of the most recognized brands of the world.

Products such as Aquafina.Soft drink sales are projected to decline by as much as 2. Preliminary studies on acrylamide seem to suggest that it may cause cancer in laboratory animals when consumed in significant amounts. Groupe Danone and Kraft Foods.PepsiCo products such as. marketing. Both initiatives are part of its expansion into international markets and a lessening of its dependence on US sales. These recent initiatives will enable PepsiCo to adjust to the changing lifestyles of its consumers.Based upon recent history. Tostitos tortilla chips.PepsiCo is positioned well to capitalize on the growing bottle water market which is projected to be worth over $24 million by 2012. dependency on US markets by acquiring Russia¶s leading Juice Company. Doritos tortilla chips. representing an increase of $28 million. Fritos corn chips. but is likely to feel the impact of the projected decline. federal or local dictates. Cheetos cheese flavored snacks. For example. It continues to broaden its product base by introducing TrueNorth Nut Snacks and increasing its Lipton Tea venture with Unilever. International Expansion . and Propel are well established products and in a position to ride the upward crest. Potential Disruption Due to Labor Unrest . manufacturing. Lebedyansky. Intense Competition . If the company has to comply with a related regulation and add warning labels or place warnings in certain locations where its products are sold.It is anticipated that government initiatives related to environmental. In 2008 a strike in India shut down production for nearly an entire month. Opportunities y y y Broadening of Product Base . Resently Coca-Cola passed PepsiCo in Juice sales. PepsiCo may be vulnerable to strikes and other labor disputes.The Coca-Cola Company is PepsiCo¶s primary competitors. Threats y y y y Decline in Carbonated Drink Sales . health and safety may have the potential to negatively impact PepsiCo. Sun Chips multigrain snacks. Growing Savory Snack and Bottled Water market in US .PepsiCo is in the midst of making a $1. PepsiCo is in the process of diversification. and V Wwater in the United Kingdom. 000 million investment in China. sales promotion initiatives undertaken by PepsiCo. In addition the company plans on major capital initiatives in Brazil and Mexico. and a $500 million investment in India. Potential Negative Impact of Government Regulations . a negative impact may result for PepsiCo. and distribution of food products may be altered as a result of state. But others include Nestlé. . Such occurrences damage company image and reduce consumer confidence in PepsiCo products. Intense competition may influence pricing.PepsiCo is seeking to address one of its potential weaknesses.7% by 2012. This disrupted both manufacturing and distribution. Rold Gold pretzels. down $ 63. advertising. Santitas are also benefiting from a growing savory snack market which is projected to grow as much as 27% by 2013.459 million in value. Ruffles potato chips.followed incidents of exploding Diet Pepsi cans in 2007.

the high transportation cost resulting from the higher oil prices has increased PepsiCo¶s shipping and handling cost from $4. and sells a range of salty. and carbonated and non-carbonated beverages.000 employees.1 billion in 2005 to $5. The company holds 38% market share of the total US savory snacks market and a 25% market share of the US liquid refreshment beverage market. sweet and grain-based snacks. markets. However. The company manufactures. Strong market position allows the company to launch new products and also increases its bargaining power in the market. . foods and beverages with revenues of more than $43 billion and over 198. High oil prices would adversely affect the margins of the company.1 billion in 2007.PepsiCo is a world leader in convenient snacks. The company figures at the 58th position in the Fortune 500 ranking for 2008. convenient. PepsiCo is one of the largest food and beverage companies in the world. the company may not be able to pass on increases in operating costs to its customers. Given the intense competition in the market.

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