PEPSI BUSINESS PLAN

Developing a detailed business plan for PepsiCo, a global

food and beverage company, requires access to
proprietary information and financial data that is not
available to me as an AI language model. However, I can
provide a general outline of the key components that are
typically included in a business plan for a company like
PepsiCo.
1. Executive Summary: Provide an overview of PepsiCo's
business plan, including the company's mission, vision,
and strategic goals. Summarize the key elements of the
plan, such as market analysis, product portfolio,
marketing strategies, and financial projections.
2. Company Description: Describe PepsiCo as a global food
and beverage company, highlighting its history, core
values, and major brands. Explain the company's
organizational structure and its competitive advantages
in the market.
3. Market Analysis: Conduct a comprehensive analysis of
the food and beverage industry, including market size,
trends, and growth opportunities. Identify target
customer segments, their preferences, and buying
behavior. Analyze the competitive landscape and identify
PepsiCo's position and market share.
4. Product Portfolio: Provide an overview of PepsiCo's
diverse range of products, including carbonated soft
drinks, non-carbonated beverages, snacks, and other
food products. Highlight the company's flagship brands,
their market positioning, and competitive advantages.
5. Marketing and Sales Strategy: Outline PepsiCo's
marketing and sales approach, including branding,
advertising, pricing, and distribution strategies. Describe
how the company targets and engages customers
through various channels and promotional activities.
6. Operational Plan: Describe PepsiCo's operations,
including manufacturing, supply chain management, and
distribution networks. Explain how the company ensures
product quality, efficiency, and sustainability in its
operations.
7. Financial Projections: Provide financial forecasts,
including revenue projections, cost structures, and
profitability estimates. Outline key financial metrics such
as sales growth, gross margin, operating expenses, and
return on investment. Include a detailed analysis of
potential risks and mitigation strategies.
8. Innovation and Sustainability: Highlight PepsiCo's
commitment to innovation and sustainability. Discuss the
company's efforts in research and development, new
product development, and environmental sustainability
 initiatives. Emphasize the use of sustainable packaging,
resource conservation, and community engagement.
9. Risk Analysis: Identify potential risks and challenges that
PepsiCo may face, such as changing consumer
preferences, supply chain disruptions, regulatory
changes, and intense competition. Provide a risk
management strategy to mitigate these risks.
10. Implementation Plan: Outline the steps and
timelines for implementing the strategies and initiatives
proposed in the business plan. Define key milestones and
performance indicators to measure progress and success.
Remember, this outline provides a general structure for a
business plan for PepsiCo. To develop a comprehensive
and accurate business plan, it is crucial to gather specific
information and financial data from official sources, such
as PepsiCo's corporate website, annual reports, and
investor relations materials.
PepsiCo is a global food and beverage company known
for its iconic brands, including Pepsi, Lay's, Gatorade,
Quaker, and Tropicana. The company operates in
multiple sectors, including beverages, snacks, and food,
and has a diverse product portfolio. PepsiCo's business
plan is likely to encompass various strategic elements
tailored to its specific industry and market conditions.
To gain insights into the best business plan for PepsiCo, I
recommend referring to official sources such as PepsiCo's
annual reports, investor presentations, and press
releases. These materials provide information on the
company's strategic initiatives, financial performance,
market outlook, and sustainability efforts. Additionally,
analyzing industry trends, competitive dynamics, and
consumer preferences can help understand the key
factors that contribute to PepsiCo's success.
It's worth noting that a business plan is a dynamic
document that evolves over time to adapt to changing
circumstances and strategic priorities. What may be
considered the "best" business plan for PepsiCo would
depend on the company's current objectives, market
conditions, and competitive landscape
Pepsi-Cola is a carbonated beverage that is produced and
manufactured by PepsiCo. It issold 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
onJune 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,
PepsiGold, 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, andPepsi Ice Cucumber in Japan.Pepsi cola is
situated is an Industry that is dominator by two
Competitors Coca Cola and6
 
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
if potential customers for Pepsi Cola.The Pepsi's
advertising the campaigns are referring to the markets
that marketers refer toas Generation X. The Generation X
consumer is profiled to be between the age of 18 to
29.They have high expectations in life and very active.
They adopt a lifestyle of living for todayand not worry
about long term goal. They also have a focus on the 12 to
18 year old market.
INTRODUCTION
1.1 INTRODUCTION
 
Pepsi-Cola was first made in New Bern, North Carolina in
the United States in theearly 1890s by pharmacist Caleb
Bradham. On August 28, 1898 , "Brad's drink" was
changedt o   " P e p s i - C o l a "   a n d  
l a t e r   t r a d e m a r k e d   o n   J u n e 
1 6 ,   1 9 0 3 Caleb Bradham bought the name "Pep
Kola" from a local competitor and changed itto Pepsi-
Cola. "Pepsi-Cola" is an anagram for "Episcopal" - a large
church across the streetfrom
Bradham's drugstore. Caleb Bradham and his
customers simply thought the namesounded well
or the fact that the drink had some kind of
"pep" in it because it was
ac a r b o n a t e d   d r i n k ;   t h
e y   g a v e   i t   t h e   n a m e   "
P e p s i " . 7rices
Pepsi has adopted a market pentration price at the
time when it was introduced. Coca colacovered the
large market in Pakistan but now the price of
Pepsi cola is same as of its competitors
•
250 ml bottle……………………….…….. Rs. 15
•
250 ml disposable bottle…………………..Rs. 22
•
Can………………………………………...Rs. 35
•
1 liter (not disposable)……………………..Rs 50
•
1.5 liter (Super Pack)..…………………….Rs. 65
•
2.25 liter (Jumbo Pack)……………………Rs. 130Reference:
Personal Survey
4.3.3 Places
Pepsi cola is available in more then 191 countries.
Pepsi has 730 plants working correctlyaround the
world and in USA and Canada 200 plants are working
there rest 530 are workingin other countries of the world
as well as working in Pakistan.
4.3.4 Promotion
Pepsi does its promotion through media; electronic
media as well as print media throughflyers, by
sponsoring cricket matches and in many other places.
Promotion is also done19
 
through print media e.g. newspapers are design of Pepsi
can. The first of many new designsof Pepsi were released
in 2007.The Pepsi have signed some agreements with a
very strong and expanded retailers such asPizza hut and
KFC when you go to Pizza hut or KFC you will find only the
Pepsi productsand nor its competitors products. These
agreements are based on the Incentives that Pepsioffers
to these retailers.Pepsi has continued using product
endorsement by using TV Actors/ Models and cricketers
inorder to promote their Products.
4.4 4C’s4.4.2 Cost
•
250 ml bottle………….………………………..……Rs. 7
•
Can…………………………………........................Rs. 23
•
250 ml disposable bottle...........................................Rs. 11
•
1 liter (not disposable)……………………….……..Rs 42
•
1.5 liter……………………………………………..Rs. 70
•
2.25 liter……………………………………………Rs. 88Reference: Sir
Imtiaz Production Manager 
4.4.3 Convenience
It has most effective distribution system among all
the soft drinks. It is easily availableeverywhere even
in cities or a village. You can easily get it. Special
refrigerators are placed ateach and every shop or outlet.
4.4.4 Communication
•
Internet20
 
•
Phone Call
•
Surveys.

4.6 Conclusion
This chapter is all about the marketing Strategy. In this
chapter we studied the geographic,demographic,
Psychographic and behavioral Strategy and also studying
about the 4P’s and 4C’s andmarket share of the Pepsi
compare with other beverages industries.
21
Chap1

PepsiCo’s Business Plan 2

Business Plan for PepsiCo
Introduction
PepsiCo is a global food and Beverage Company in the US
founded in 1965 through a
merger between the Frito-Lay Inc. and Pepsi-Cola
Companies. The corporation produces and
distributes products in over 200 territories and nations.
The company’s headquarters are in
Purchase New York employing about 274,000 employees
globally (Money.cnn.com. 2021).
Problems and Solutions
Competition is a significant issue in the food and
beverage sector with the primary
rival being the Coca-Cola Company. Other major
competitors include Kraft Foods Inc., Dr.
Pepper Snapple Group, Inc., and Nestle S.A. PepsiCo
competes with these major companies
through pricing, quality, taste, brand recognition,
product variety and differentiation,
distribution channels, convenience, promotions,
identification of customer preferences, and
marketing. To gain a competitive advantage over its
rivals, PepsiCo employs a cost
minimization strategy that enhances the company’s
financial position and broad
differentiation, which attracts customers to some
distinctive product features (Errandonea
Ochoa de Zabalegui, 2019). The company reduces costs
through automated processes and
broad differentiation by innovating products that are
beneficial to their consumers’ health.
Value Proposition
PepsiCo gives its consumers value through its guiding
premise of caring, being
truthful, and respectful. The company offers care by
providing healthy soft drinks with
reduced sugar and foods with low saturated fat and
sodium. The company’s Diet Pepsi and
Pepsi Zero provide value to people with diabetes and
those who are health conscious since
they contain zero sugar. Moreover, the company
provides more nutritious beverages
compared to its counterpart Coca-Cola, through its new
product category, Guilt Free.

PepsiCo’s Business Plan 2

Business Plan for PepsiCo
Introduction
PepsiCo is a global food and Beverage Company in the US
founded in 1965 through a
merger between the Frito-Lay Inc. and Pepsi-Cola
Companies. The corporation produces and
distributes products in over 200 territories and nations.
The company’s headquarters are in
Purchase New York employing about 274,000 employees
globally (Money.cnn.com. 2021).
Problems and Solutions
Competition is a significant issue in the food and
beverage sector with the primary
rival being the Coca-Cola Company. Other major
competitors include Kraft Foods Inc., Dr.
Pepper Snapple Group, Inc., and Nestle S.A. PepsiCo
competes with these major companies
through pricing, quality, taste, brand recognition,
product variety and differentiation,
distribution channels, convenience, promotions,
identification of customer preferences, and
marketing. To gain a competitive advantage over its
rivals, PepsiCo employs a cost
minimization strategy that enhances the company’s
financial position and broad
differentiation, which attracts customers to some
distinctive product features (Errandonea
Ochoa de Zabalegui, 2019). The company reduces costs
through automated processes and
broad differentiation by innovating products that are
beneficial to their consumers’ health.
Value Proposition
PepsiCo gives its consumers value through its guiding
premise of caring, being
truthful, and respectful. The company offers care by
providing healthy soft drinks with
reduced sugar and foods with low saturated fat and
sodium. The company’s Diet Pepsi and
Pepsi Zero provide value to people with diabetes and
those who are health conscious since
they contain zero sugar. Moreover, the company
provides more nutritious beverages
compared to its counterpart Coca-Cola, through its new
product category, Guilt Free.

PepsiCo’s Business Plan 6

Coca-Cola Company
Dr Pepper Snapple Group, Inc.
Kraf Foods
Nestle
PepsiCo
0
20
40
60
80
100
120
Revenue ($Billions)
Economics of PepsiCo and Operations
Pricing
One of PepsiCo's pricing strategies is market-oriented
pricing (Young, 2017). The
company uses this strategy to enhance its competitive
advantage depending on the prevailing
prices in the market. The company also uses the Hybrid
Everyday Value for its soft drink
beverages (Young, 2017). The strategy closes the gap
between discounted and everyday
prices, which ensures that consumers can buy and enjoy
its beverages during not only the
holidays but every day as well. The company’s prices vary
due to its broad product mix.
Revenue Forecasting Five-Year Financial Plan
A company’s target budget closely associates with its
projected financial statements.
Applying forecasting on financial statements helps in
estimating the past, existing, and future
finances. On the other hand, the break-even analysis is a
good tool in determining both profits
and expenses and calculating a company’s margin of
safety. The break-even analysis
determines the sales level a company requires to cover
its fixed costs. Following is a five-
year financial projection for PepsiCo and a break-even
analysis from 2019 to 2023 (Global
Market 2021

PepsiCo’s Business Plan 6

Coca-Cola Company
Dr Pepper Snapple Group, Inc.
Kraf Foods
Nestle
PepsiCo
0
20
40
60
80
100
120
Revenue ($Billions)
Economics of PepsiCo and Operations
Pricing
One of PepsiCo's pricing strategies is market-oriented
pricing (Young, 2017). The
company uses this strategy to enhance its competitive
advantage depending on the prevailing
prices in the market. The company also uses the Hybrid
Everyday Value for its soft drink
beverages (Young, 2017). The strategy closes the gap
between discounted and everyday
prices, which ensures that consumers can buy and enjoy
its beverages during not only the
holidays but every day as well. The company’s prices vary
due to its broad product mix.
Revenue Forecasting Five-Year Financial Plan
A company’s target budget closely associates with its
projected financial statements.
Applying forecasting on financial statements helps in
estimating the past, existing, and future
finances. On the other hand, the break-even analysis is a
good tool in determining both profits
and expenses and calculating a company’s margin of
safety. The break-even analysis
determines the sales level a company requires to cover
its fixed costs. Following is a five-
year financial projection for PepsiCo and a break-even
analysis from 2019 to 2023 (Global
Marke021