Scribd Logo
Upload

Welcome to Scribd!

  • Value Chain Analysis: Inbound Logistics

    Uploaded by

    Chhaya Motwani
    23 views4 pages
    The document analyzes PepsiCo's value chain, including inbound logistics involving raw material contracts, operations using non-concentrated orange juice and concentrate sales, and outbound logistics like direct store distribution and broker-warehouses. It also discusses technology development, human resource development, and marketing/sales with a close customer contact model and brand building investments. A TOWS matrix identifies strengths like a diversified portfolio, opportunities in emerging markets and healthy foods, threats from competitors, and strategies around differentiation, localization, and improving health perceptions.

    Original Description:

    Original Title

    PEPSICO1

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document analyzes PepsiCo's value chain, including inbound logistics involving raw material contracts, operations using non-concentrated orange juice and concentrate sales, and outbound logistics like direct store distribution and broker-warehouses. It also discusses technology development, human resource development, and marketing/sales with a close customer contact model and brand building investments. A TOWS matrix identifies strengths like a diversified portfolio, opportunities in emerging markets and healthy foods, threats from competitors, and strategies around differentiation, localization, and improving health perceptions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    23 views4 pages

    Value Chain Analysis: Inbound Logistics

    Uploaded by

    Chhaya Motwani
    The document analyzes PepsiCo's value chain, including inbound logistics involving raw material contracts, operations using non-concentrated orange juice and concentrate sales, and outbound logistics like direct store distribution and broker-warehouses. It also discusses technology development, human resource development, and marketing/sales with a close customer contact model and brand building investments. A TOWS matrix identifies strengths like a diversified portfolio, opportunities in emerging markets and healthy foods, threats from competitors, and strategies around differentiation, localization, and improving health perceptions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    Performance with Purpose

    Value Chain Analysis


    1. Inbound Logistics
    Purchase of the raw materials: Use “future contracts” to
    cover different fluctuation in the raw material market
    (Primarily oil, corn, fuel, etc.)

    2. Operations
     Use of non-concentrate orange juice to create a very tasty
    and healthy product
     Sells only concentrate to the bottlers
     PepsiCo owns same shares from the four bottlers
    companies
    Wednesday August 29, 2007
    Performance with Purpose

    Value Chain Analysis


    3. Outbound Logistics
     “Direct store distribution” : provides a greater degree of
    business control. Enables merchandising with maximum visibility
    and appeal
     Broker-Warehouse : Some products delivered from
    manufacturing plants and warehouses to customer warehouses and
    retail stores
    - Less costly system
    - Works best for products that are less fragile and perishable, have
    lower turnover, and are less likely to be impulse purchases
     Foodservice and Vending
    Distribute snacks, foods and beverages to third-party foodservice
    and vending distributors and operators.
    - Supplies products to schools, businesses, stadiums, restaurants
    andhave lower turnover, and are less likely to be impulse purchases

    Wednesday August 29, 2007


    Performance with Purpose

    Value Chain Analysis


    4. Technology Development
    Understanding the customer to add more value and convenience
    5. HRD
    Empowerment of people and growth and well being of all the
    stakeholders
    6. Marketing & Sales
     A very close contact maintained by sales & distribution staff with
    retail, vending and food service accounts throughout US
     A Lot of Marketing Muscle, spending on building brand;
    endorsements & advertisements from sports-stars & youth
    generation Icons; Maintaining the “Hip” image

    Wednesday August 29, 2007


    Performance with Purpose

    TOWS Matrix
    Strengths Weaknesses
    Global market leader ? The health issues over Trans fats &
    Money power & Strong Brands sugars
    Diversified product portfolio ? Weak presence in the emerging
    Healthy food products portfolio markets
    2006: Outside U.S. Operations ? School and environmental concerns
    accounted for 41% and 36% of net
    revenue and operating profit
    Opportunities SO Strategies WO Strategies
    EmergingMarkets  Invest in Emerging Markets  Focus on Emerging Markets through
    Demand for Non-Carbonated localization
     Add more Healthy food & drink
    drinks
    brands in portfolio  Develop more Health foods
    Demand for Healthy foods
     Fight competition (Adv., Pepsi Chall.)  Improve image through CSR

    Threats ST Strategies SW Strategies


    Strong and well-run  Fight competition through Product  Run more awareness campaigns on
    competitors differentiation healthy foods
    Flat demand for carbonated
     Focus on Non-carbonated drinks
    drinks
    Domestic brands and store  Have close tie-up with stores and kill
    brands the store brands thru aggressive pricing

    You might also like