Situation analysis

Initial Stage & Development of Pepsico : This is a soft drink and it was first developed in 1880 by a new born, north carolina pharmacist and industrialist. In 1898 the name of pepsi became change to pepsicola. as pepsicola got mach popularity, it was registered in 1902. Between the late 1970s to 1990s pepsico expanded via acquisition of business out side of its core focus of packaged food and beverage brand. Now a days there are lot’s of brand under pepsico it includes Pizza Hut Toca bell California pizza kitchen North american vanline Wilson sporting goods Hot’n Now etc Area of Business : The Structure of pepsico global operation his shifted multiple time in its history as a result of international expansion and as of 2010 it is separated into four main division. (i) pepsico ameriean food. (ii) pesico beverage

(iii) pepsico europe and asia (iv) pepsico middle east and africa

4 billion to $ 20.The obvious culprit is the increase in commodity price (oil. what their specific needs are & how pepsi communicate them. 16 percent from europe and 13 percent from asia Sales growth information : In 2010 pepsico reported revenues of $10.3 billion in 2008 that means revenue growth was average 9. And every day all over the world the sales of persico soft drink is increasing incredibly. While the cost of goods has increased from $ 13. driven primarily by the consolidation of its bottling system.9%.3 billion in 2004 to $ 43. This information will be leveraged to better understand who is served . This represent an increase of cost of goods sold from 45.2% to 52.In 2009 71 percent of the company’s net revenue came from north and south america.4 billion in the same time frame. A 70 percent from its sale last year.3 billion for the quarter. The result is that pepsico gross margin has decreased from 54.8% to 47. Sugar.1% in the five years period. Financial Condition : A Cursory examination of pepsico income statement reveals that pepsico revenue have increased from $ 29.6% year over year. Gas. Target market Young Adult Old . wheat etc) Market summary: Pepsi posses good information about the market & know a great deal about the common attributes of the most priced customers.

3 billion for the quarter. And every day all over the world the sales of persico soft drink is increasing incredibly. PEPSI Cola is operating in a oligopoly market where two or three large competitors control the lion share of that market. A 70 percent from its sale last year. Ages 10-60 Market growth information : In 2010 pepsico reported revenues of $10. The market size of soft drinks in Bangladeshis around TK. The competition is very much high in soft drink industry. Demographic: • • There is almost an equal ratio between male & female users. driven primarily by the consolidation of its bottling system.Market demographics: Market demographics includes the following the things such as geographic & demographics.800 Crore per year. its products are sold in almost 200 countries worldwide. . Geographic: It serve in both international & domestic customers.

Tostitos Tortilla Chips. Ruffles Potato Chips. cakes and cake mixes. ranked according to Interbrand. Pepsi is joined in broad recognition by such PepsiCo brands as Diet Pepsi. Gatorade Mountain Dew. The company has the largest market share in the US beverage at 39%.SWOT Analysis PepsiCo Strengths Branding . Quaker Foods and Snacks. Tostitos Tortilla Chips.000 million. Pepsi generates more than $15. bottled water. Cheetos Cheese Flavored Snacks. PepsiCo’s arsenal also includes ready-to-drink teas. one of the most recognized brands of the world. as well as breakfast cereals.One of PepsiCo’s top brands is of course Pepsi. Lay’s Potato Chips.PepsiCo’s diversification is obvious in that the fact that each of its top 18 brands generates annual sales of over $1. As of 2008 it ranked 26th amongst top 100 global brands. Tropicana Beverages. Fritos Corn. and snack food market at 25%. and Sierra Mist. Lipton Teas (PepsiCo/Unilever Partnership). Thirst Quencher.000 million of annual sales. The strength of these brands is evident in PepsiCo’s presence in over 200 countries.This broad product . Such brand dominance insures loyalty and repetitive sales which contributes to over $15 million in annual sales for the company Diversification . juice drinks. Mirinda. Aquafina Bottled Water. Doritos Tortilla Chips.

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.Sales to Wal-Mart represent approximately 12% of PepsiCo’s total net revenue. Image Damage Due to Product Recall .Recently (2008) salmonella contamination forced PepsiCo to pull Aunt Jemima pancake and waffle mix from retail shelves.439. Wal-Mart’s low price themes put pressure on PepsiCo to hold down prices.The company delivers its products directly from manufacturing plants and warehouses to customer warehouses and retail stores. Wal-Mart is PepsiCo’s largest customer. which was lower that its competitors. 52% of its revenues originate in the US. Its revenue per employee was $219. 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. This concentration does leave PepsiCo somewhat vulnerable to the impact of changing economic conditions. Opportunities Broadening of Product Base .In 2008 PepsiCo had approximately 198. Low Productivity . Such occurrences damage company image and reduce consumer confidence in PepsiCo products. Weaknesses Overdependence on Wal-Mart .PepsiCo is seeking to address one of its potential weaknesses. Overdependence on US Markets . It continues to broaden its product base by introducing TrueNorth Nut Snacks .Despite its international presence.base plus a multi-channel distribution system serve to help insulate PepsiCo from shifting business climates. and V Wwater in the United Kingdom. Lebedyansky. and labor strikes. This may indicate comparatively low productivity on the part of PepsiCo employees. This followed incidents of exploding Diet Pepsi cans in 2007. dependency on US markets by acquiring Russia’s leading Juice Company.000 employees. Distribution . Large US customers could exploit PepsiCo’s lack of bargaining power and negatively impact its revenues.

Doritos tortilla chips.PepsiCo is in the midst of making a $1. manufacturing. Cheetos cheese flavored snacks. Sun Chips multigrain snacks. and a $500 million investment in India.It is anticipated that government initiatives related to environmental. Ruffles potato chips. 000 million investment in China.and increasing its Lipton Tea venture with Unilever. Rold Gold pretzels. Preliminary studies on acrylamide seem to suggest that it may cause cancer in laboratory animals when consumed in significant amounts. .PepsiCo is positioned well to capitalize on the growing bottle water market which is projected to be worth over $24 million by 2012. International Expansion .PepsiCo products such as. Tostitos tortilla chips. health and safety may have the potential to negatively impact PepsiCo. Both initiatives are part of its expansion into international markets and a lessening of its dependence on US sales. and distribution of food products may be altered as a result of state. These recent initiatives will enable PepsiCo to adjust to the changing lifestyles of its consumers. 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. For example. PepsiCo is in the process of diversification. Santitas are also benefiting from a growing savory snack market which is projected to grow as much as 27% by 2013. marketing.459 million in value. and Propel are well established products and in a position to ride the upward crest. Products such as Aquafina.Soft drink sales are projected to decline by as much as 2. but is likely to feel the impact of the projected decline. Potential Negative Impact of Government Regulations . down $ 63. In addition the company plans on major capital initiatives in Brazil and Mexico. federal or local dictates. a negative impact may result for PepsiCo. representing an increase of $28 million. Fritos corn chips. Growing Savory Snack and Bottled Water market in US .7% by 2012. Threats Decline in Carbonated Drink Sales .

This disrupted both manufacturing and distribution. Resently Coca-Cola passed PepsiCo in Juice sales. Potential Disruption Due to Labor Unrest . 1. Marketing mix of PEPSI PepsiCo is a world leader in convenient snacks. Groupe Danone and Kraft Foods. Intense competition may influence pricing. In 2008 a strike in India shut down production for nearly an entire month.Based upon recent history. foods and beverages with revenues of more than $43 billion and over 285. PepsiCo may be vulnerable to strikes and other labor disputes.000 employees & its products are sold in almost 200 countries worldwide through four P’s of the marketing mix which are described as following. sales promotion initiatives undertaken by PepsiCo. advertising.The Coca-Cola Company is PepsiCo’s primary competitors. But others include Nestlé.Intense Competition . Pepsi Products Variety .

live it up. Refuel. AMP Energy More Power to You Aquafina Make your body happy! Dole Juice Healthy juices on the go Gatorade Rehydrate. Replenish. Lipton Brisk It’s bold.. It’s refreshing. It’s Lipton Brisk.. Pepsi Max The Invigorating Cola Lipton Pure Leaf Tea Lipton Tea can do that. So Believe! Starbucks Coffee Drinks A new way to refresh.7uP. Mountain Dew Do the dew.SoBe Diet 7up soda Life is short. No Fear Man Up! Pizza Hut Toca bell California pizza kitchen .

it tends to sell its products with price range from moderately low to high prices. as price is a major factor that influences the assessment of value obtained by customers. Price is the only marketing mix variable that can be altered quickly. influence the development of marketing strategy.North american vanline Wilson sporting goods Hot’n No 2. discounts. Pepsi being a company which emphasizes product quality. retail price. Sample list of price: Regular Pepsi (250ml) Tk 15 Pepsi disposable (500 ml) Pepsi can (300 ml) Tk 25 Pepsi (1 liter) . particularly in case of products that are ego intensive of technology based. allowances credit terms etc. depending on the use and targeted customers. Pricing decisions are almost always made in consultation with marketing management. offering a better tasting product at a competitive price. Pepsi Price Pepsi is competitively priced to its major competitors. Supplier Manufacturer Distributor Retailer Customer Customers directly relate price to quality. Price variables such as dealer price.

in the right place at the right time. 1. KFC. Pepsi place To serve the right packs size at the right price. Export parties o o Indirect distribution: o Through Base market distributors o Through outstation distributors Before delivering the product some certain guiding principles are followed for the assessment and distributor’s capability:   Applicant must have 20 to 25 vehicles (depending on the area).000 as a security. If the distributor does not achieve its sales target. Metro which serve as a place for key sale. PAH/PI own the Pepsi brands.50 liter) Tk 55 Tk 35 Pepsi(2.  Applicants must have 20. This is usually done through taking over key revenue areas. marketing management decides to put into place an executive. Depending on the nature of the product. while selecting the appropriate dealers or wholesalers. the distribution is taken back and an addition of new . They sell the concentrate to CSA who manufactures and bottles the Pepsi products and distributes it to consumers. Decisions with respect to distribution channel focus on making the product available in adequate quantities at places where customers are normally expected to shop for them to satisfy their needs. smaller milk bars.g. major supermarket chains.25 liter) Tk 70 3. Selective.  Applicant must deposit Rs. These are known as national key account and very important in terms of competition. CSA distribute Pepsi via various channels e. restaurants and hotels like pizza Hut.  Direct Distribution: Delivery of post mix cylinders & handling of key accounts: The key accounts are different wholesalers. KFC. or intensive network of distribution.Tk 25 Pepsi (1. and Oporto). convenience stores.g. restaurants and fast food outlets (e. Pizza Hut.000 cases of empty bottles.000.

. Through TV we have seen different advertisement of its products such as Pepsi or dew. Pepsi promotion Promotion is a key element of marketing program and is concerned with effectively and efficiently communicating the decisions of marketing strategy. services and ideas etc. series and also PepsiCo uses some events the “Pepsi cargoes?” to promote is products. Some of its supply source capabilities are:     Less Breakdown High quality Flexible supply capacity Mature production process 4.distribution is done. PepsiCo has advertised its products through many different ways and media. to favorably influence target customers’ perceptions to facilitate exchange between the marketer and the customer that may satisfy the objective of both customer and the company. by an identified sponsor. Advertising: Advertising is any paid form of non-personal mass communication through various media to present and promote product. their features and influence their attitudes favorably. PepsiCo also advertise its products by targeting those favorable television programs like sports. A company’s promotional efforts are the only controllable means to create awareness among publics about itself. the products and services it offers. Therefore Pepsi’s supply is low supply uncertainty.

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