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PepsiCo, Inc. is founded by Donald M. Kendall, President and CEO of Pepsi-Cola and Herman W. Lay, Chairman and CEO of Frito-Lay, through the merger: 1. Pepsi-Cola In 1898: Caleb Bradham, a New Bern, North Carolina, pharmacist, created "Brad's Drink," a carbonated soft drink he created to serve his drugstore's fountain customers. 2. Frito Company 3. H. W. Lay Company The Major products of the companies are: Pepsi-Cola Company Fritos brand corn chips, Lay's brand potato chips, Cheetos brand cheese flavored snacks, Ruffles brand potato chips, Rold Gold brand pretzels. Mountain Dew
plastic bottles.1966: Doritos is introduced Pepsi enters Japan and Eastern Europe. Inc 1978: Taco Bell 1980: PepsiCo Food Service International (PFSI) is formed to focus on overseas development of restaurants. .Y Pepsi is the first company to respond to consumer preference with lightweight. recyclable. 1970: PepsiCo moves from New York City to new world headquarters in Purchase. 1977: PepsiCo acquires Pizza Hut. N.
1982: Pepsi Free and Diet Pepsi Free. 1996: Pepsi-Cola launches Pepsi World at www. 1985: PepsiCo is now the largest company in the beverage industry. The company has revenues of more than $7.000 employees. the first major brand caffeine-free colas. Inauguration of the first Pepsi-Cola operation in China.5 billion.Growth Cont.pepsiworld. are introduced.com . 1993: Pepsi-Cola introduces Aquafina bottled water into test market. Snack food operations are in 10 international markets. Pepsi-Cola products are available in nearly 150 countries and territories around the world. 1986: PepsiCo purchases 7Up International. more than 137. the third largest franchise soft drink operation outside the United States.
Global Pepsi products are in almost 200 countries throughout the world There are 22 different brand lines that account for at least $1 billion per year per brand .
2009 Was on the “Best Food for Women” list in Women’s Health magazine Began a partnership with the NFL Won U. EPA SmartWay Environmental Excellence award Became official beverage of Norwegian Cruise Lines .S.
. pepsi business partners and the communities in which pepsi operate. And in everything pepsi do. fairness and integrity. pepsi strive for honesty.Pepsi mission is to be the world's premier consumer products company focused on convenient foods and beverages. pepsi seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees.
social." Pepsi Co.creating a better tomorrow than today. economic .PepsiCo's responsibility is to continually improve all aspects of the world in which pepsi operate environment. . activities to benefit society. vision is put into action through programs and a focus on environmental stewardship. and a commitment to build shareholder value by making PepsiCo a truly sustainable company.
External Assessment .
Opening in market for less costly products 2. Pepsi recently reacquired ownership of its two largest bottlers. Compete in more than one industry (non-alcoholic beverage industry. bottled water. The world's demand is experiencing a growth with the sports drinks. Growth in the carbonated drink market is the largest in Asia and Europe 6. Growth opportunities in developed countries as well as international nonestablished countries 3. and the breakfast food industry) 5. and energy drinks . Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) 4.1. the salty or savory snack food industry.
3. which lead customers to shift away from bottles of water to tap water. Highly dependent on supplies of clean water. Fierce competition from Coca-Cola. 4. Because of the recession. Campaign against plastic containers has impacted the sale of bottled beverages 6. The downturn in economy. customers are finding cheaper alternatives to the national brands. Customers are getting more conscious and concerned about their eating habits and general health. which owns the largest piece of the market share 2. 5. to prevent contamination .1.
36 4 0.4 3 0.12 3 0.12 4 0.09 4 0.32 0.36 3 0.Pepsi Co. Critical Success factors Coca Cola Dr.33 2 0.48 3 0.09 3 0.4 4 0.27 2 0.27 0.4 2 0.21 4 0.3 4 0.2 0.48 4 0.1 3 0.16 4 0.0 to 1. Pepper Snapple Group Weighted Score 0 0.48 4 0.32 4 0.11 3 0.27 3 0.35 3.48 3 0.36 4 0.0 1 to 4 1 to 4 1 to 4 0 0 0.8 .08 2 0.28 3 1 3.78 Advertising Price Competitiveness Product Diversity Market Share Company Image Customer Loyalty Financial Position Sales Distrubution Product Quality Global Expansion Totals Weights Rating Weighted Score Rating Weighted Score Rating 0.36 0.33 3 0.36 0.21 2.3 0.1 4 0.18 0.36 0.12 4 0.22 0.07 3 0.48 3 0.
27 0. Because of the recession. to prevent contamination Totals . and the breakfast food industry) Growth in the carbonated drink market is the largest in Asia and Europe The world's demand is experiencing a growth with the sports drinks. Customers are getting more conscious and concerned about their eating habits and general health. Campaign against plastic containers has impacted the sale of bottled beverages Highly dependent on supplies of clean water.05 0.1 0. and energy drinks. which owns the largest piece of the market share The downturn in economy.52 0.12 3. Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) Compete in more than one industry (non-alcoholic beverage industry. customers are finding cheaper alternatives to the national brands.05 0. the salty or savory snack food industry.Key External Factors Weights 0.52 0 0.06 1 Rating 1 to 4 2 3 1 4 3 4 4 2 3 4 2 2 Weighted Score 0.13 0.36 0.0 to 1.1 0.0 0. which lead customers to shift away from bottles of water to tap water.09 0.12 0. Threats Fierce competition from Coca-Cola.1 0.16 Opening in market for less costly products Growth opportunities in developed countries as well as international unestablished countries Pepsi recently reacquired ownership of its two largest bottlers.3 0.1 0.05 0.05 0.05 0.13 0.24 0. bottled water.08 0.48 0.09 0.
6% 14% PepsiCo Coca-Cola Others 80% .
Internal Assessment .
socially responsible. PepsiCo owns a wide variety of smaller brands which able them to offer a large product range from beverages to snacks .1. Ethical. Strong advertising company with more than 40 slogans and songs 6. and sustainable company 5. Strong brand equity 2. Well-known worldwide 3. PepsiCo as the largest part of the market share after CocaCola 7. Innovating company 4.
PepsiCo depends too much on the US market 6. PepsiCo is experiencing product recalls 4.PepsiCo production is really expansive because of the need to constantly develop new products to meet the changing customers demands 2. PepsiCo has a low employment productivity and a weak distribution 5. PepsiCo is experiencing a lack of focus towards Pepsi sodas 3.1. PepsiCo is far behind Coca-Cola in the international market .
32 0.18 2.0 to 1.05 0.08 0.09 1 2 2 1 1 2 2 0.08 0.48 0.08 0.16 0.12 0.24 0.12 0. 3 or 4 3 or 4 4 4 4 4 3 3 4 1 or 2 Weighted Score Strong brand equity Well known worldwide PepsiCo owns a wide variety of smaller brands which able them to offer a large product range Innovating company Ethical.12 0.0 0.08 0.32 0.06 0. 2.07 0.12 0.06 0.06 Rating 1.72 .08 0.Key Internal Factors Internal Strengths Weights 0.15 0.24 PepsiCo production is really expensive because of the need to constantly develop new products to meet the changing costumers demands PepsiCo is experiencing a lack of focus towards Pepsi PepsiCo is experiencing product recalls PepsiCo has low employment productivity and a weak distribution PepsiCo depends too much on the US market PepsiCo is far behind Coca-Cola in the international market Totals 0.21 0.05 0.1 0. socially responsible. and sustainable company Strong advertising company with more than 40 slogans and songs PepsiCo as the largest part of the market share after Coca-Cola Internal Weaknesses 0.
S6) Support environmental issues. S2. . S4) Develop more environmentally friendly containers. (W1. bottled water. S6. and energy drinks. which causes water contamination. O2. O6)Improve their sales in the beverage segment by responding to the increasing demand for sports drinks. such as pollution. T5) Adjust production of bottles with downturn in economy. S3) Offer more promotions or discounts to prevent sales from decreasing. W4. (W3. T6) Be responsible and cautious towards supplies of water. O4. (T2. O4) Innovate products by offering healthier alternatives. (O5. W6. S7) Continue to offer variety or product in various brands. T2. T6) Increase supply chain production by monitoring cautiously employees and improving workers training. T3. (W5.SO Strategies (O4. S6. S3. S7) Respond to the growing demand of sports drinks. T3) Produce bigger size of bottles and sale them at the same price as the small one. (T6. (W1. ST Strategies (T1. O5) Expand Pepsi sodas product in Europe and Asia. S2. S2. O4. (T5. bottled water. WO Strategies (W2. S8) Innovate Pepsi product line with something that is going to differentiate us from CocaCola. W5. (O6. S1. S1. WT Strategies (W1. S2) Expand and focus on the carbonated drinks and beverage segment in Asia and Europe. O2. S1. S3. and energy drinks by expanding product market. W6. T1) Increase presence in the international market. (W1. (S1.
Market development is a strategy that PepsiCo should apply by expanding in countries that not already established Use forward integration to acquire smaller companies in foreign markets to increase their market share Product development and related diversification should also be considered while trying to produce and distribute healthier products .
Recommendations PepsiCo should acquire 3 brands per year in an international marketplace One of these 3 brands per year must be healthy Increase production and distribution of carbonated drinks in Asian and European countries PepsiCo will expand into Africa to make use of the international market they are not part of .