Mission

Will continue to market a portfolio of international and

home-grown branded quality products at prices that
provide good value to our consumers in key Food &
Beverage categories.
Be committed to expand the business and provide
healthy financial returns to our shareholders,
opportunities for growth and enrichment to our
employees, business partners and the communities
where we operate.

Vision
Be the premier Food & Beverage
company in the Philippines.

History of Pepsi-Cola
In 1893, 5 years after the introduction of Coca-Cola, Brads
Drink was first introduced by Caleb Bradham.
In 1902, he launched the Pepsi Cola Company in the back room
of his pharmacy.
An official patent was awarded on June 16, 1903.

The company entered bankruptcy in 1931 due to the

collapse of sugar prices.
The Pepsi-Cola Company is bought by Loft Inc. in 1931.
Because of the popularity of Pepsi, Loft changes its
name to Pepsi-Cola Company in 1941.
During the Great Depression, Pepsi gained popularity
following the introduction in 1936 of a 12-ounce bottle.

PCPPI manufactures and sells well-known brands.

Pepsi-Cola Products Philippines Inc.

The exclusive bottler of
PepsiCo beverages in the
Philippines, with a
relationship spanning 66
years.

History of (PCPPI)
On October 16, 1946, John Clarkin acquired a franchise to
bottle and distribute Pepsi-Cola in the Philippines.
1947- first bottling plant
Was established in 1989 as Premier Beverages by Luis
Lorenzo, Sr. to acquire the bottling and distribution rights
to PepsiCo beverages in the Philippines.

History of Pepsi-Cola Products Philippines, Inc. (PCPPI)

Guoco Holdings acquired Lorenzos holdings in PCCPI.

2010- Lotte Chilsung Co. Ltd. became the single largest
shareholder of PCCPI with 34.4% shares.

Pepsi Logos

Product Life Cycle

Research and Product development

marketing
manufacturing
packaging
sales
distribution and transportation
consumer use and
final disposition

PepsiCo products

Customers
18-22 years
old

According to MyersBizNet, Pepsi-Cola's target

market is young consumers, including those
between 18 to 22 years of age.The assumption is
that reaching new market segments is easier
because young shoppers have not yet formed
brand loyalty.
Another reason for targeting young people is the

companys desire to tap into the millions of

university students demanding high-energy
caffeine drinks. As far back as 1963, the
corporation began a Pepsi Generation campaign
with the goal of convincing consumers that Pepsi
drinkers were more forward thinking than the
older, more traditional population.

"need states"-including
refreshment, relaxation,
hydration, energy boost,
weight management, heart

Demand on high-energy caffeine

drinks
"Carbonated soft drinks used to answer all
need states," said Pepsi-Cola North
America CEO Dawn Hudson in an Oct. 23
meeting with investors.

Strategy

Operations
Competitive advantage

Marketing

10 Operations Management
Strategies

1. Design of Goods and Services.

PepsiCos operations management does so through market-based
research and development and product innovation.
The results are used to determine future directions of PepsiCos
products.

2. Quality Management.
PepsiCos operations management aims to provide the highest
quality products under the companys Human Sustainability
goals.

3. Process and Capacity Design.

PepsiCo aims to maximize its productivity-cost ratio in this area.

4. Location Strategy.
PepsiCos facilities are located in key areas near most

retailers.

5. Layout Design and Strategy.

In PepsiCos case, spaces are designed with efficiency and
productivity in mind. The layout design in PepsiCo
production facilities is centered on the principles of
assembly line production and total quality management
(TQM).

6. Job Design and Human Resources.

PepsiCo has an HR policy and job design process for Frito-Lay,
and separate HR policy and job design process for Quaker
Foods.
However, all of these policies and processes comply with
PepsiCos corporate standards and Talent Sustainability
policy.

7. Inventory Management.
PepsiCos inventory management emphasizes
automation.

Inventories are valued t the lower cost or market.

Cost is determined using the average; first in,
first out (FIFO) or last in, first out (LIFO) methods.

Raw Materials
Carbonated water
Sugar
Emulsions
Citric Acid
Additives
Flavorings

8. Supply Chain Management.

The company operates supply chain hubs for each regional
market. PepsiCo optimizes response times to fluctuations in
demand.

Supply Chain Management

Supply Chain Management spans all
movement and storage ofraw materials,
work-in-process inventory, and finished
goods from point of origin to point of
consumption

Pepsi uses a Direct to Store Delivery Method in

distributing the finished products.
*Direct store delivery(DSD) is a keymethodof
selling and distributing products for a large variety of
industries, such as food, beverage, home personal care
products, and wholesale and distribution, oil & gas,
service industries to name industries beyond consumer
products.

Reverse Flow
The empty bottles are picked by the secondary trucks
from the retailers andbrought back tothe contributor.
The primary trucks carry the empty bottles further to
the bottling plant where the bottles are cleaned and
reused.

9. Scheduling.
PepsiCo facility managers implement human resource
schedules based on local data. However, automated
scheduling is also used for some of PepsiCos production
space schedules.

10. Maintenance.
PepsiCos maintenance concerns are widely varied,
considering the companys wide array of products and
markets. PepsiCo continues to hire individuals and promotes
from within the organization to grow its workforce.

PepsiCos competitive advantage are as follows:

Cost leadership
Broad differentiation

Marketing
Segmentation

PepsiCo market segmentation

Market segmentation
Market segmentation is the process of dividing markets comprising the heterogeneous needs of many
consumers into segments comprising the homogeneous needs of smaller groups (Guille M). Segmentation is
usually done by demography, geography and socioeconomic variables. The easiest way to segment consumer
market is to use demographic variables such as age, gender and education level. Organizations that operate
globally usually segment consumer market geographically. Besides, socioeconomic variables are to segment
the market regarding the income, social class and also lifestyle (Guille M).
Soft Drink PepsiCo
As we know that PepsiCo provides varieties of beverages such as carbonated soft drinks, sport drinks, dairybased drinks, energy drinks, fruit flavored beverages, ready-to-drink coffees, ready-to-drink tea, mineral water
and frozen beverage. Those products are marketed under brand as Pepsi, Mountain Dew, Gatorade, Lipton,
Starbucks, Tropicana, and so on.
Why PepsiCo have to produce so many types of products? The reason is relevant to market segmentation.
PepsiCo aims to attract different groups of consumers with difference types of products.
Demography
Pepsi targets the young people since before until now because most of the teenagers and kids love sweetener
beverages. In 1960, Pepsi came out an advertisement with slogan: The Choice of a New Generation. In
1983, Pepsi signed spokesperson contract with Michael Jackson at 5 million dollar. This is a success campaign
strategy by using celebrities to advertise the products in order to attract young consumers. Michael Jackson is
so popular at that time, so this advertisement is helpful in influencing the young people to purchase Pepsi
products. Thus, Pepsi sales are increasing and become more popular in US. Recently, Pepsi also hire popular
star as spokesperson to attract the young people. For example, in China, Pepsi engaged superstars such as Jay
Chou, Jolin Tsai, F4 and etc to attract the young Chinese population in Asia (Imeem, 2008). Pepsi used
celebrities to advertise the products because those popular celebrities would attract young population to buy

PepsiCo provides different products in different countries depend on living standard and culture. Therefore, PepsiCo have to do
surveys and researches of customers needs and their lifestyles and target them with suitable products. Consumers will
purchase the products depend on their taste and preference. So, sales of the company may increase if the company provides
the products based on consumers requirement. In the Middle East, zero-calorie Pepsi Max posted strong growth, and
Mountain Dew surged ahead in markets like Nigeria and Pakistan. In Asia, new marketing drove double-digit growth in nonsugar colas in virtually all markets particularly in China and Thailand reported by Michael D. White, Vice Chairman, PepsiCo
CEO, PepsiCo International in the Pepsi Co 2007 annual report. Citizens of Middle East preferred Diet Pepsi Max because some
of them drink Pepsi for the purpose of refreshment. If PepsiCo provide Pepsi Free (calories and caffeine free) only in Middle
East, then the sales in Middle East is unsuccessful. This showed that PepsiCo has used market segmentation strategy and
success in booming the sales.
Socioeconomic
Pepsi was targeted on sport enthusiast, thus it provides sport drinks to fulfill them where it can enter a new market. In year
2007, PepsiCo has engaged with golfer Tiger Woods who is famous on playing golf to advertise this product (Amore, M 2007).
After signed the contract, the product name has changed to Gatorade Tiger where this product is mainly for athletes. With the
cooperation from Tiger Wood, the first product in the new market has hit store shelves in March 2008. This is one of the
strategies of PepsiCo to attract the consumers. Besides, David Beckham is also one of the soccer superstar engaged with
PepsiCo in the year of 2004 (David Beckham Beckhams Pepsi AD Hits Screens, 2004). He is footballs idol where can attracts
those fans to purchase Pepsi products especially when he won the soccer competitions.
Mostly, health experts will not encourage consumers to consume soft drink due to caffeine component inside soft drinks.
PepsiCo has done researches on some countries population such as Canadians, Australians and etc. They are always treat
health as their main concern, so PepsiCo targets those countries by manufacturing new and healthier products such as Diet
Pepsi and Pepsi Free in order to enter the market easily. Diet Pepsi is a beverage with low calories and sugar free while Pepsi
Free is caffeine free (List of Pepsi Types). These products are more suitable for on-diet and health concern people. Besides,
PepsiCo provides other beverages such as juice, fruit flavored energy drinks and mineral water to fulfill the consumers
requirements.
Conclusion
As a result, market segmentation is important to companies so that firms can easily enter the market and have a potential
growth. If PepsiCo does not target young population in the beginning, it is hard to occupy the market and compete with its
competitor which is Coca-cola. Pepsi can continue hire popular celebrities to advertise their products in different market such

SWOT Analysis

Strengths

Strong brand image

Broad product mix
Extensive global production network
Extensive global distribution
network

Weaknesses
Low penetration outside the Americas
Limited business portfolio
Weak marketing in health conscious
consumers

Weaknesses
Low penetration
outside the
Americas
Limited business
portfolio
Weak marketing in
health conscious
consumers

Opportunities
Business diversification
Market penetration in developing countries
Global Alliances with complementary
businesses

Threats
Aggressive competition

Threats
Aggressive competition
Healthy lifestyle trend
Environmentalism

Thank you!