PEPSICO

INTRODUCTION.

PepsiCo, Incorporated (NYSE: PEP) is a Fortune 500, American multinational corporation headquartered in Purchase, NY with interests in manufacturing and marketing a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain -based snacks, and other foods. Their main product, Pepsi Cola, sells over 100 billion cans a year. Besides the Pepsi-Cola brands, the company owns other brands such as Quaker Oats, Gatorade, Frito-Lay, Tropicana, Copella, Mountain Dew, Miranda and 7-Up (outside the USA). PepsiCo has 18 different product lines that offers a variety of high quality products providing refreshment and nutrition. PepsiCo brands are available in nearly 200 countries and union territories. It is the 2nd largest manufacturer of soft drinks in the world.

Spain. Tropicana was acquired and PepsiCo merged with the Quaker Oats Company. Pepsi-Cola began selling its products internationally in 1934 with its operations in Canada. . sells and distributes Gatorade sports drinks as well as Tropicana and other juices internationally.CONT·D PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. In the 1970s and '80s PepsiCo bought restaurant chains such as Pizza Hut. Saudi Arabia. Philippines. also produces. Operations grew rapidly in the 1950¶s. China. and Kentucky Fried Chicken which was later changed to KFC. Tricon Global Restaurants. Mexico. including Gatorade . India. but in 1997 it spun off its restaurant business into a separate company. Key international markets include Argentina. Brazil. PepsiCo Beverages International. Taco Bell. Thailand and the United Kingdom.

11 in Fortune's list of the most powerful women in business. . who was ranked No. joined the company in 1994 and was named CEO in 2001. This focus on healthier foods and lifestyles is part of Nooyi's "Performance With Purpose" philosophy. healthier snacks have been marketed and the company is striving for a net-zero impact on the environment.Indra Krishnamurthy Nooyi . During her time. She was born in India and has done her education in India . She has been the chief executive of PepsiCo since 2006.

.WORLD·S HEADQUARTERS PepsiCo World Head quarters is located in Purchase at New York.

PEPSI-CO BRANDS .

Soft drinks. . Those who are too young to drink beer but think fruit juice is too juvenile will go on to sodas. Sodas stand between liquor and juice. are not exactly referred to as items of necessity. more popularly known as sodas.

Frito-Lay merged with Pepsi-Cola in 1965. The Frito Lay delivers a wide variety of fun and environmentally friendly foods in around 160 countries and territories. .Frito-Lay brands account for 59% of the U.S. snack chip industry.

PepsiCo acquired Tropicana in 1998. Today the Tropicana brand is available in 63 countries. Tropicana·s pure and fresh fruit juice in easy to handle packages has attracted the consumers. .

Quaker's power-packed line of popular brands expands companies portfolio with a wide range of healthy food choices. .PepsiCo merged with The Quaker Oats Company in 2001.

.Gatorade sports drinks was acquired by the Quaker Oats Company in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink. Created in 1965 by researchers at the University of Florida for the school's football team. "The Gators." Gatorade is now the world's leading sport's drink.

OTHER BRANDS«. .

Quaker Foods North America and all of our Latin American food and snack businesses (LAF). which includes PepsiCo Beverages North America and all of our Latin America beverage businesses. which includes Frito-Lay North America. Europe. as follows: PepsiCo Americas Foods (PAF). Asia. as follows: . which includes all PepsiCo businesses in the United Kingdom. PepsiCo Americas Beverages (PAB).WORKING METHODOLOGY PepsiCo is organized in three business units. the Middle East and Africa. PepsiCo's three business units were comprised of six reportable segments. PepsiCo International (PI).

both of which are owned. which is its most significant property. QFNA also owns or leases five plants and production processing facilities in North America.750 warehouses.CONT·D« Frito-Lay North America (FLNA) FLNA's most significant properties include its headquarters building and a research facility in Plano. Tex.. Iowa. FLNA also utilizes approximately 55 plants and production processing facilities that are owned or leased by contract manufacturers or co-packers. FLNA also owns or leases approximately 40 food manufacturing and processing plants and approximately 1. production processing facilities and distribution centers that are owned or leased by our contract manufacturers or co-packers . Quaker Foods North America (QFNA) QFNA owns a plant in Cedar Rapids. distribution centers and offices. QFNA utilizes approximately 25 manufacturing plants.

distribution centers and offices. authorized bottlers in which they have an ownership interest own or lease approximately 65 bottling plants. In addition. PepsiCo Americas Beverages (PAB) PAB also owns or leases approximately 40 plants and production processing facilities and approximately 50 warehouses. and offices. and three snacks plants in the Mexican cities which are owned. LAF also owns or leases approximately 50 food manufacturing and processing plants and approximately 660 warehouses. PAB also utilizes approximately 70 plants and production processing facilities and approximately 60 warehouses and distribution centers that are owned or leased by contract manufacturers or co-packers. . distribution centers.CONT·D Latin America Foods (LAF) LAF's most significant properties include a food plant in Celaya. Mexico. LAF also utilizes one plant facility that is owned by a contract manufacturer.

AMEA also owns or leases approximately 100 plants and approximately 1. each of which are owned. distribution centers and offices. and its snack manufacturing and processing plant located in Tingalpa. authorized bottlers in which they have an ownership interest own or lease approximately 25 plants and 120 distribution centers. each of which are owned. China. AMEA's most significant properties are its beverage plant located in Shenzhen. In addition.. AMEA also utilizes two plants and production processing facilities that are owned or leased by contract manufacturers. In addition.100 warehouses. Europe also owns or leases approximately 35 plants and approximately 320 warehouses. distribution centers and offices.K. Europe also utilizes approximately one plant and production processing facility and approximately two distribution centers that are owned or leased by contract manufacturers. authorized bottlers in which they have an ownership interest own or lease seven plants and approximately 30 distribution centers. Middle East & Africa (AMEA) . Australia.CONT·D United kingdom and Europe Europe's most significant properties are its snack manufacturing and processing plants located in U. Asia.

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. PepsiCo has 37 bottling plants in India.000 people PepsiCo entered India¶s hot beverages category in2003 through a tie-up with Hindustan Lever Ltd.. The Lays potato chips. o o FritoLay India is one of the market leaders in the Indian snack foods segment and has other brands like Cheetos (potato wafers). however.a leader in hot beverages and owner of the Lipton brand. Qauker Oats and Aliva low fat baked biscuits. including 17 company-owned plants and 20 owned by franchisee partners. dominates the other brands. To produce its beverages.PEPSICO IN INDIA o PepsiCo and its partners have invested more than US$ 700 million in India building businesses. which today provide direct or indirect employment to more than 150.

is yet to be exported The flavor concentrates used to make soft drinks are produced at a separate state-of-the-art plant at Channo in the Sangrur district of Punjab and supplied all across South Asia. The company also undertakes contract farming across the country to source raw materials for its products. a cracker launched last year. o o . is contemplating export of indigenously-developed products Kurkure and Aliva to markets such as the US and UK. the snack food division of PepsiCo India. Aliva. PepsiCo has invested heavily in building local production facilities and transferring agro technology to the country. Kurkure. a cheeto-like snack is already exported to Pakistan.o Frito-Lay.

This SWOT analysis also shows PepsiCo's internal strengths such as their experienced management team. Some possible opportunities noted in the SWOT analysis are the growing markets for specialized ethnic foods and healthier food products.SWOT ANALYSIS. A few weaknesses lie in the fact that the company is so large and could possibly lose focus or have internal conflict problems. a competitive product line. Another opportunity is that the income of consumers is high enabling them to be less price sensitive. a global marketing realm. and the continuous efforts by their research and development to research trends in the industry and to be creative in exploiting those trends. . and convenience is becoming evermore important not only to the United States but to many countries around the world. A few of the threats PepsiCo must stay aware of are the ease of reliability of its product line. the almost pure competition in pricing for its products. and the quickness of technological advances causing existing products to be no longer the most advanced.

There are more than 53 million shareholders of Pepsico company. PepsiCo has consistently paid cash dividends since the corporation was founded.FINANCE. The company is also listed on the Amsterdam. Chicago. Swiss and Tokyo stock exchanges. PepsiCo shares are traded principally on the New York Stock Exchange in the United States. .

In 1996. One of their background designs includes a string of repetitive numbers 73774. introducing a new background every three weeks. PepsiCo redesigned their cans for the fourteenth time. This is a numerical expression from a telephone keypad of the word "Pepsi. Denise Muck. Ohio hired the first female Pepsi salesperson." In 2007.MARKETING In 1975. Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the majority of participants picked Pepsi as the better tasting of the two soft drinks. the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that "helped redefine promotion marketing. PepsiCo launched the highly successful Pepsi Stuff marketing strategy. and for the first time. By 2002." . RKO Bottlers in Toledo. In 1976 Pepsi. to coincide with the United States bicentennial celebration. included more than thirty different backgrounds on each can. PepsiCo took great advantage of the campaign with television commercials reporting the results to the public.

The redesign was comparable to Coca-Cola's earlier simplification of their can and bottle designs." The new installment of the campaign asks for team involvement and an advocate to submit content on behalf of their team for the chance to have the Stanley Cup delivered to the team's home town by Mark Messier. Pepsi overhauled their entire brand. simultaneously introducing a new logo and a minimalist label design. This daily show deals with pop culture. internet viral videos. pictures or essays) for a chance at winning a party in their hometown with the Stanley Cup and Mark Messier. Lay's and Gatorade have had a "Bring Home the Cup. Also in 4th quarter of 2008 Pepsi teamed up with Google to produce the first daily entertainment show on YouTube." contest for Canada's biggest hockey fans. Pepsi. Since 2007. In 2009. Pop tub. and celebrity gossip. Hockey fans were asked to submit content (videos." changed to "Team Up and Bring Home the Cup. "Bring Home the Cup. Pop tub is updated daily from Pepsi.CONT·D In late 2008. .

bringing the total Pepsi investment in the country to $4 billion. Pepsi also has sponsorship deals in international cricket teams. On July 6. . National Hockey League and Major League Baseball. Pepsi started marketing itself as Pecs in Argentina in response to its name being mispronounced by 25% of the population and as a way to connect more with all of the population. The team wears the Pepsi logo on the front of their test and ODI test match clothing.CONT·D Pepsi has official sponsorship deals with three of the four major North American professional sports leagues: the National Football League. The Pakistan cricket team is just one of the teams that the brand sponsors. Pepsi announced it would make a $1 billion investment in Russia over three years. Pepsi also sponsors Major League Soccer. 2009. In July 2009.

Pepsi. Chile.S. Pepsi and Pepsi Max cans and bottles in Australia now carry the localized version of the new Pepsi Logo. As of Present. and Diet Pepsi Max was re-branded as Pepsi Max. El Salvador. Honduras. and later it was released in 2009 in Canada (the first country outside of the United States for Pepsi's new logo). Argentina. Pepsi released this logo in U. Pepsi Wild Cherry has finally received the 2008 Pepsi design in March 2010 . Guatemala. Panama.CONT·D In October 2008. Brazil. while the word "Max" is still in the previous style. Diet Pepsi and Pepsi Max began using all lower-case fonts for name brands. Puerto Rico. France and Mexico switched to Pepsi's current logo). in late 2008. Bolivia. Pepsi announced that it would be redesigning its logo and re-branding many of its products by early 2009. Costa Rica. meaning the old logo has been phased out entirely (most recently. The UK has started to use the new Pepsi logo on cans in an order different from the US can. the Philippines and Australia. in the rest of the world the new logo will be released in 2010. Colombia. Dominican Republic. Nicaragua. The brand's blue and red globe trademark became a series of "smiles." with the central white band arcing at different angles depending on the product. The word Pepsi and the logo are in the new style. In 2009.

not just what is convenient to achieving individual goals. They are driven by an intense. from the purchasing of ingredients to the point where the products reach the consumer¶s hands. Speak with truth and candor. This principle extends to every part of the business. telling the whole picture. competitive spirit in the marketplace. In addition to being clear. Without this balance. but they direct this spirit towards solutions that achieve a win for each of there constituents as well as a win for the corporation. .HUMAN RESOURCE POLICIES. honest and accurate. Sell only products company can be proud of. Balance short term and long term. they cannot achieve the goal of sustainable growth. consumers and the world we live in. PepsiCo always strive to: Care for customers. They speak up. The company make decisions that hold both shortterm and long-term risks and benefits in balance over time. they take responsibility to ensure that communications are understood.

PepsiCo leverage a work environment that embraces people with diverse backgrounds. and this enables them to deliver world-class performance. but no one can achieve our goals by acting alone. the value they put on teamwork has made the company which people enjoy being part of. This leads to innovation. Respect others and succeed together. all of which helps develop new products and drives the companies ability to sustain there commitments to growth through empowered people.CONT·D Win with diversity and inclusion. . The company is built on individual excellence and personal accountability. traits and different ways of thinking. A spirit of fun. They give importance to people who have the capability of working together in structured teams or informal collaboration. the ability to identify new market opportunities.

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