PRESENTATION ON

PEPSICO, INC

Presented by: Siddhant Singhal

WHAT IS
PEPSICO

PepsiCo, Inc. is an American multinational food,

snack, and beverage corporation headquartered
in Harrison, New York, in the hamlet
of Purchase. PepsiCo's business encompasses all
aspects of the food and beverage market.

It oversees the manufacturing, distribution, and

marketing of its products. PepsiCo was formed in
1965 with the merger of the Pepsi-Cola
Company and Frito-Lay, Inc.

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HISTORY
• 1898 – Pepsi-Cola was created in the late 1890s by Bradham, a New
Bern, N.C. pharmacist.
• 1961 – Frito-Lay, Inc was formed by the merger of the Frito Company,
founded by Elmer Doolin in 1932, and the H.W. lay Company,
founded by Herman W.Lay.
• 1965 – PepsiCo was founded in 1965 through the merger of Pepsi-
Cola and Frito-Lay.
• 1966 – PepsiCo acquires Doritos brand, which was destined to become
the most popular snack chip in the U.S.
• 1975 – PepsiCo acquires Pizza Hut, Inc.
• 1978 – PepsiCo acquires Taco Bell.
• 1985 – PepsiCo is now the largest company in the beverage industry.
The company has revenues of more than $7.5 billion, more than
137,000 employees.
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ABOUT PEPSICO
• PepsiCo is a world leader in convenience foods
and beverages. Its world-renowned brands are
available in nearly 200 countries and territories.
• PepsiCo entered India in 1989 and has grown to
become the country's largest selling food and
beverage companies.
• PepsiCo India and its partners have invested more
than U.S. $700 million since the company was
established in the country in 1989.

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PEPSICO’S
PROFILE
• Revenues in 2019 is more than $68 billion.
• Share in Indian carbonated soft drink market is
85%.
• 37 bottling plants in India, of which 16 are
company owned and 21 are franchisee owned.
• PepsiCo’s Frito Lay snack division has 3 state of
the art plants.
• It has more than 185,000 employees across the
world.
• In, India PepsiCo provides direct employment to
4,000 people and indirect employment to 60,000
people including suppliers and distributers.

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BUSINESS
DIVISIONS

1. PepsiCo Beverages North America

2. Frito-Lay North America

3. Quaker Foods North America

4. Latin America

5. Europe

6. Africa, Middle East, South Asia

7. Asia Pacific, Australia/New Zealand,

China

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 MAJOR BRANDS
ACQUIRED BY PEPSICO
1. Pepsi
2. Mountain Dew
3. Tropicana
4. Lays
5. Cheetos
6. Doritos
7. Quaker’s products
8. Kurkure

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MAJOR COMPETITORS 1. Kelloggs
2. The Coca-Cola Company
3. Dr. Pepper
4. Nestle
5. Red Bull
6. Monster Beverage

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PEPSICO’S
STOCK PRIZE

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SWOT ANALYSIS
 PEPSICO'S STRENGTHS

1. Best Global Brand – According to Forbes 2019 ranking, PepsiCo is ranked # 29 most
valuable brand with a brand value of $18.8 Billion. In 2020, PepsiCo was ranked 87th
largest company in the world in Forbes’ Global 2000.
2. Power of One Strategy – Selling “Food & Snacks” (Frito Lays, Cheetos, Doritos,
Kurkure) and “Beverages” (Pepsi, Gatorade, Tropicana) under one umbrella makes
PepsiCo a stronger and diversified business. Its food business accounted for 54%, and
beverages accounted for 46%.
3. Strong Global Presence – PepsiCo has exploited the benefits of a strong global presence
by partaking in more than 200 countries across the world. PepsiCo’s overwhelming
presence in markets across the world has enhanced global awareness and recognition of
the brand among consumers.
4. Effective Marketing Strategy - Pepsi understands the importance of marketing
evidenced by the fact that it has been sponsoring the Super Bowl halftime show for seven
years, reaching an audience of 100 million people in 2019. In 2020, Pepsi Super Bowl
LIV Halftime Show featured renowned performers and drew 104.1 million viewers.

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 PEPSICO'S STRENGTHS

5. Iconic Youthful Brand - Pepsi’s target audience has always been a younger
generation. Pepsi has nurtured its image as an iconic youth brand. Historically, many
iconic ads were targeted towards pre-teens/ teens with the fun element of sports,
music, etc.
6. Marketing through Sports - Partnerships with sports clubs and organizations
provides an invaluable opportunity to advertise directly to consumers in sporting
arenas.
7. Customer Loyalty - PepsiCo has an extremely loyal customer base, particularly
among the younger generation who love the iconic taste of the company’s soft drinks.

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 PEPSICO’S WEAKNESSES

1. Products Perceived as Unhealthy: Perception is everything when it comes to

consumer products such as soft drinks and snacks. Most of PepsiCo’s carbonated soft
drinks contain high sugar concentrates while its snacks are excessively salted with
chemical additives and flavors. This a major weakness, particularly in the
current health-conscious consumer markets.
2. Effects of Failed Products: Failure in any venture is a weakness. PepsiCo’s failed
products such as Crystal Pepsi (Colorless Cola), Pepsi Blue, etc. demoralized
employees and portrayed them as incompetent in the public sphere giving room for
the competition to grow.
3. Poor Environmental Record: PepsiCo was named one of the world’s
top three plastic polluters by Break Free from Plastic. The company has failed to adopt
meaningful measures to increase the recycling of its bottles.

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 PEPSICO’S OPPORTUNITIES

1. Product Diversification: Diversification into different segments enables businesses to

exploit benefits beyond their traditional field of operation and attain stability. Even
though PepsiCo has 22 brands under its portfolio, all these brands are concentrated
within the food and beverage industry.
2. Expand E-Commerce: More customers are using digital channels for online shopping.
PepsiCo has the opportunity to exploit the benefits of online shopping by expanding its
e-commerce (mobile apps) and grow sales through these channels.
3. At home Soda Machine: The company further expanded its push into healthier fare
with the $3.2 billion acquisition of at-home seltzer maker SodaStream and
subsequently launched of sparkling water brand Bubly.
4. Efforts towards Health-Conscious customers’ needs: PepsiCo has
increased its focus on reducing sugar, salt and fat in 75% of its food products by 2025
to less than 100 calories of added sugar per 12 ounces, 1.3 milligrams of sodium per
calorie and less than 1.1 grams of saturated fat per 100 calories.

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 PEPSICO’S THREATS

1. Stiff Competition: PepsiCo’s profitability and market share are

threatened by stiff competition from Coca Cola, Nestle, Dr. Peppers, Unilever, and so
on. The competition also threatens long-term sustainability and profitability because it
increases the cost of protecting market share through adverts, promotions, and
discounts to retain customers.
2. Competitors Adopt Technology More Effectively: In the current technologically
advanced and highly competitive business arena, the success or failure of businesses
depends on the adoption rate of emerging technologies. PepsiCo can lose
competitive advantage to competitors if they adopt game-changing technologies more
effectively.
3. Increasing Health Consciousness: The fact that most of the soft drinks and snacks
offered by PepsiCo are considered as unhealthy implies that increasing health
consciousness in consumer markets is a threat (Cannibalism) to the company.

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REFERENCES

1. Pepsi SWOT Analysis (2022) | Business Strategy H

ub (bstrategyhub.com)

2. PepsiCo – Wikipedia

3. PepsiCo (slideshare.net)

4. Top PepsiCo Competitors and Alternatives | Craft.c

o

5. About PepsiCo

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THANK YOU
Siddhant Singhal​

BCA (CS)

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