Group : 7

AGENDA
Overview of PepsiCo

Digital Marketing
Question & Answer

ABOUT COMPANY

Name PepsiCo Inc.

Industries served Beverages, Food
Geographic areas served Worldwide
Headquarters U.S.
Current CEO
Indra K. Nooyi
Revenue US$63.056 billion(2015)
Net Income
US$5.452 billion(2015)
Employees
263,000 (2015)
Main Competitors:-The Coca-Cola Company, Dr Pepper Snapple Group,
Inc., Mondelez International, Inc., Hansen Natural Corporation, National
Beverage Corp., Kraft Foods Inc., The Kellogg Company, ConAgra Foods,
Inc., Nestl S.A. and others.

Mission Statement
To be the world's premier consumer Products Company
focused on convenient foods and beverages. We seek
to produce healthy financial rewards to investors as we
provide opportunities for growth and enrichment to our
employees, our business partners and the communities
in which we operate. And in everything we do, we
strive for honesty, fairness and integrity.

Vision Statement
Our vision is to be the world's best beverage
company. Being the best means providing
outstanding quality, service, cleanliness and
value, so that their every customer is
contented and happy with their products.

COMPANY HISTORY
PepsiCo is an American multinational cooperation
Headquartered in Purchase, New York, USA, with interests in the
manufacturing, marketing and distribution of grain-based food
and beverages.
The recipe for Pepsi (the soft drink), was first developed in the
1880s by a pharmacist and industrialist named Caleb Bradham
who called it "Pepsi-Cola" in 1898.

Caleb Bradham created the Pepsi-Cola Company in 1902

and registered a patent for his recipe in 1903. The Pepsi-Cola
Company was first incorporated in the state of Delaware in 1919.

 In the early 1960s, the company product line expanded

with the creation of Diet Pepsi and purchase of Mountain
Dew.
In 1965, the Pepsi-Cola Company merged with Frito-Lay,
Inc. to become PepsiCo, Inc., was founded by Donald M
Kendall. The company's headquarter was located to its
still-current location of Purchase, New York in 1970.
PepsiCo Inc. had a merger with Quaker Oats in 2001,
which added Gatorade brand to its portfolio

Financial Highlights 2015

Product Profile
Pepsi-Cola
Brands,
Pepsi,Caffeine
Free Pepsi, Diet
Pepsietc
( Series of
Pepsi)

Frito Lay
Brands, Lay's
potato chips,
Lays Kettle
Cooked potato
chips, Wavy
Lay's potato
chips, Baked
Lay's potato
crisps,etc

Gatorade
Brands,
Gatorade XFactor Thirst
Quencher,
Gatorade
Fierce Thirst
Quencher,
Propel Fitness
Water

 Tropicana
Brands,
Tropicana Pure
Premium
juices,
Tropicana
Twister juice
drinks,
Tropicana
Smoothies,
Tropicana Pure
Tropics juices

Quaker
Brands,
Quaker
Oatmeal,
Quaker
Instant
Oatmeal,
Quaker
Oatmeal
Breakfast
Squares,
Capn Crunch
cereal, Life

 Portfolio of Iconic Brands

Note: Based on 2014 estimated annual retail sales

12

Milestones of
Pepsico

13

Global Divisions of Pepsico

PepsiC
o
PepsiCo
America
n
Beverag
es (PAB)

PepsiCo
America
n Food
(PAF)
FritoLay
North
America

Quaker
Foods
North
America

Latin
America
Foods

Pepsi
America
Bottling

Pepsi
Bottling
Group

PepsiCo
Internati
onal (PI)

UK and
Europe

Middle
East,
Africa
and Asia

Competitor Analysis: Global Ranking in

2015
15

Source:http://www.bevindustry.com/top-100-beverage-companies2015-chart

DIGITAL MARKETING

 Digital Marketing is a form of marketing where technologies are used

to market products on internet through mobile phones, display,
advertising etc.
Facebook subscribers in India
India is the second largest with 148 million Facebook users.
With the improvement in technology and connectivity across the state
of India, it is expected to add few million users in coming years and is
also penetrating into the rural market of India with break neck speed.
It has been really lucrative for any industry to use digital marketing to
promote awareness among customers across the length and breadth of
geographical line with reduce in advertising cost.

Social Media Use

PepsiCo used consumer-generated
media activities like TV spots, print
ads.
Taking its promotion on social
Network it had followings on
Twitter (634,969 fans).
Facebook (7,867,474 fans) to
receive Direct dialogue with fans
and consumers.

Earned Media Generating Buzz

19

PepsiCo using Facebook

Pepsi has acknowledged that if you target to remain relevant
with this new type of consumer, you have to be where they are,
talk their language.
Coca Cola has been aggressive in using social media to spread
out its messages through the nooks and corner of the globe and
continuously keeping a birds eye view on latest development
in social sector and trying to leverage it on maximum level.
Coca cola and PepsiCo moving parallel in competing the
market Coca Cola has far visibility through Social media

Issues with PepsiCo

Facebook itself where Coca Cola has more than 10 crores likes whereas
PepsiCo merely carries with it some thousands of likes with it.
All other Industry across the globe irrespective of their operation across
the Industry Line is heavily using Digital Marketing .
Source of promotion for products which in return helps them in return to
generate good amount of brand equity across each and every segment of
society and helps in facilitating awareness among the customers PepsiCo is
far lagging behind to lead in that particular domain.

22

23

Q.1 Analyze the internal

and external
environment for PepsiCo

External
EnvironmentPESTEL

External
EnvironmentPESTEL

Porters Five Force

Bargaining Power
of Buyers (High)

Threat of New
Entrants (Low)

Competitive
Rivalry: (Very
High)
Bargaining
Threat of
power of
Substitutes
Supplier
(High)
(Low)

Ansoff Matrix

Ques.2 Analyze the

corporate strategy of
PepsiCo in detail

 Customer carrying approach:

Inspite of so much competition their focus is on customer and communities
Sell trusted products only:
Test of their standards can be shown by their quality products and endorsement
Consider diversity and inclusion both:
Their diversity brings new idea into workplace and enhance innovation. They are
associating their tag line with brand Pepsi like for example: live for now
Yalla now
oh yes abhi
PepsiCo is listed among top 25 globally best workplace

 Better decision handling approach:

They are maintaining true balance between their short term plans and long term plans,
which help them a lot for sustainable growth

Continuously Focusing of Emerging Markets:

They are very much committed to increase their presence in new emerging markets. Their
revenues from developing and emerging markets such as India, china and Russia has
been continuously increasing through mergers and acquisitions
Strategic alliances on global platform:
They did joint venture with Tata in INDIA to enhance drinking water quality
Partnership with Tingyi in CHINA
Partnership with Almeria in Saudi Arabia

5 Cs Framework- Senior Management Business

Strategy for Long-term Planning

Commercialagenda

Increasingfocus
oncosts

Building
newcapabilities

Fosteringaculture
ofcollaboration

Exercisediscipline
whenitcomes
tocapitalreturns

Q.3 What should the CEO do in

future to sustain the advantage
gained - Business, Corporate and
International?

The process of developing the strategies should be clear that PepsiCo is more than
a food and beverage manufacturer, it is also an agricultural company that was
highly dependent on land and natural resources.
The CEO should not only focus on the major issues that PepsiCo needed to
respond to, but also built support and enthusiasm for a major shift in strategic
direction by involving many people within the business.
The company should built a team to focus on sustainable agriculture so it can
mitigate the risks that climate and water crises pose to its supply chains, both now
and in the future.

CEO should invest more on environment and should have proper and
affirmative approach towards the environment.
Recent volatile swings in packaging as well as other raw materials have
given a reason to the CEO to formulate a business model in which efforts
needs to be taken to shave costs to keep prices competitive and protect
margins

Q.4What are the

advantages of PepsiCo? Is
it sustainable?

Cost leadership: This generic strategy focuses on cost minimization as a

way to improve PepsiCos financial performance and overall
competitiveness.
For example, to compete against Coca-Cola products, PepsiCo offers low
prices based on low operating costs. The company also sometimes has
special promotional offers with discounted prices
Broad differentiation:
For example, PepsiCos Lays potato chips are marketed as a healthful
snack product because of reduced saturated fat content

Quick Response: PepsiCo capability to respond very fast to the market

opportunity and threats is the other competitor advantage. PepsiCo innovativeness
provides it the capability to respond quickly to changes in the market.
Financial Performance

Yes,itissustainableandsomerecommendationsaresuggested:
ContinuetoexpandwiththeirHumanSustainability.Thehealthyeatingmarketisa
demographicthatwillcontinuetogrowinthefuture,andwillprovidegenerousprofitsif
PepsiCoisabletoobtainalargemarketshare.
Expandmoreintosocialbenefits,especiallyforthoseindevelopingnations.Pepsismain
competitorCocaColahasimplementedawaterpurificationprogramforAfricanVillages,
whichprovidesavaluableneedandatthesametimeintroducingtheirbrandnamewhereit
wasbeforeunknown.IfPepsifollowedthissameideologywithfoodproductsandwater
purificationittoowouldsignificantlyincreasebrandrecognition
OverallPepsiCoisasuccessfulcompanywithsubstantialrevenue,andalargefootprintin
themarketplace.PepsiCoshouldcontinuetoexpandtheirgrowthandtakeadvantageof
potentialopportunitiesbycontinuingtoimproveonareasatthecorporatetoplevel,inthe
marketsthattheycurrentlyarein,andinnewmarketsandmarketsegmentsthattheywish
toexpandinto.

47

Performance
with Purpose
is PepsiCos
vision to deliver
top-tier financial
performance over
the long term by
integrating
sustainability into
our business
strategy, leaving a
positive imprint
on society and the
environment.

THANK
YOU