PepsiCo..

By-
Sijin John Joseph
Consultant
Story Behind PepsiCo..
Caleb Bradham concocting his own special beverage, a soft
drink.
His creation, a unique mixture of kola nut extract, vanilla and rare
oils,
"Brad's Drink."
Caleb decided to rename it "Pepsi-Cola,
August 28,1898
Pepsi-Cola is derived from two of the principal
ingredients,
PEPSIN AND KOLA NUTS.
In 1902, he launched the Pepsi-Cola Company in the
back room of his pharmacy
on June 16, 1903, "Pepsi-Cola" was officially registered
with the U.S. Patent Office.
Source: http://www.sirpepsi.com/
1970s
PepsiCo. moves from New York City to its new world headquarters in
Purchase, N.Y.
Pepsi-Cola introduces a new, modern looking logo, still featuring the
red, white, and blue color scheme adopted in 1943
1971
PepsiCo. Acquires Taco Bell 1978
1989- PepsiCo. Entered India
PepsiCo. acquires Walkers Crisps and Smith Crisps, two of the United Kingdom's
leading snack food companies.
PepsiCo. enters the top 25 of the Fortune 500 ranking.
TIMELINE
1990s
1991
Pepsi-Cola forms a Joint Venture with Unilever to develop and market tea-
based drinks.
1994
PepsiCo. and Starbucks form the North American Coffee Partnership to
jointly develop ready-to-drink coffee beverages.
1998
PepsiCo. acquires Tropicana Products from Seagram Company Ltd., the
biggest acquisition ever undertaken by PepsiCo..
2001
PepsiCo. merges with The Quaker Oats Company.
2006
Pepsi acquires IZZE Beverage Company.
PepsiCo. completes the acquisition of Stacy's Pita Chip Co.
2008
PepsiCo. announces plans to invest US $1 billion in China over the next four
years
2000s
2010
2010
PepsiCo. completed the Acquisition of The Pepsi Bottling Group, Inc.
and PepsiAmericas, Inc., its two largest anchor bottlers.
2012
Diet Mountain Dew, Brisk and Starbucks ready-to-drink beverages Join
PepsiCo.'s portfolio of billion-dollar brands, bringing the total to 22.
PepsiCo. Entered India in 1989.
38 beverage bottling plants and 3 food plants.
PepsiCo.. India
Foods
PepsiCo..s foods division Frito-Lay is the leader in the branded salty snack market. All its
products are free of trans-fat and MSG (Monosodium Glutamate).
Potato chips
Extruded snacks
Traditional Snacks Traditional Snacks Low-Fats
Source: http://www.pepsicoindia.co.in/

BEVERAGES
Iconic refreshment beverages
Source: http://www.pepsicoindia.co.in/

Fruit Juice
Source: http://www.pepsicoindia.co.in/

Equity Strength
24%
35%
0%
10%
20%
30%
40%
2006 2012
Net Revenue
11.89%
13.75%
10.93%
9.69%
9.43%
2008 2009 2010 2011 2012
Net Profit Margin
Source: http://www.pepsico.com/
Source:http://www.stock-analysis-on.net/
Hierarchy of PepsiCo.
CEO
Director
VP/Head
Productio
n
Mana
ger
Asst
Manag
er
Executive
s
VP/Head
Purchase
Mana
ger
Asst
Manag
er
Executives
VP/Head
Quality
Mana
ger
Asst
Manag
er
Executives
VP/Head
Maintenan
ce
Mana
ger
Asst
Manag
er
Executiv
es
VP/ Head
Shipping/
Logistics
Mana
ger
Asst
Manag
er
Executiv
es
VP/Head
HR
Mana
ger
Asst
Manag
er
Executiv
es
Source: On Call:
Compensation Structure
L10-L11 Director- CEO
L9-L10
50-75 Lakhs p.a GM-VP
Managerial Level L5- L8
10-22 Lakhs p.a
Asst. Manager L4
6-10 Lakhs p.a
Executives L1,L2,L3 4.5 p.a
Primary Source: Candidate On Call:
Hierarchy of SCM
SCM Director
Head/VP
Manager/Category Planner
Asst. Manager
Executives
Primary Source: Candidate On Call
Human Resource
Appraisal Cycle- Financial Year (April- March). Implementation
from 1
st
April

Notice Period
Senior Level- Head To Director- 3 Months
Middle Level- Sr. Manager To GM- 2-3 Months
Lower Level- Executive To Manager- 45 Days

Attrition Rate- 20% to 25%
Primary Source: Candidate On Call
Compensation Trends
Average Internal hike- Average 13% TO 15%

Average Internal Hike
Prevalent External Hike
Prevalent External hike- 25% TO 30%


Employee Benefits
Employee Benefits Car Allowances from Managerial level to Top level

Hiring Trend in PepsiCo
0%
50%
100%
61%
5%
33%
Hiring Trend in PepsiCo..
Hiring Trend in
PepsiCo
Source: http://www.glassdoor.com/
Facts to Know
PepsiCo. will pump in $5.5 billion in investments in
India till 2020.
PepsiCo. India will invest over Rs 1,200 crore to
build a new beverage manufacturing facility in
Andhra Pradesh.