...product companies in the world and it is also one of the most famous soft drink companies. Currently PepsiCo owns more than 21% share of soft drink market world wide and has over 30% share in United states alone. Pepsi has many brands in soft drinks alone namely mountain dew, diet pepsi, mirinda etc. Also pepsi has expanded its reach to other products like quaker oats, Tropicana fruit juice, lays potato chips, cheetos, Gatorade etc. One of the Pepsi’s popular product was its ‘ Diet Pepsi’. It was introduced in 1964. Its main highlight was that it was a sugar free drink making it available to all larger section people. It had zero calories and also very less sugar content it and was an instant hit among the youth. PepsiCo is a leading company in soft drinks, snacks and foods and beverages. It has a revenue of more than 39 billion dollars and has employee strength of more than 1,85,000 people. PepsiCo company consist of mainly 3 companies. PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), and PepsiCo International (PI). PepsiCo’s products are one of the most recognized products in today’s world. PepsiCo’s increase in success is mainly due to high standard of performance, commitment, determination and hard work of each and every member of the PepsiCo family. Pepsi also follows one of the best marketing strategies and business practices. PepsiCo has faced many challenges in its history. It has had its toughest competition from its rival Coca-Cola. It also faced other challenges...
Words: 792 - Pages: 4
...organisational mission and objectives. The organisation reorganised their structure to a multidivisional structure in a move to exploit the full acquisition potential. A multidivisional structure is most suitable for an organisation that has not got a wide range of products like PepsiCo. The organisation did not experience benefits from the multidivisional structure because PepsiCo had a wide rage of products and different customers. The organisation was structured into divisions and each reporting to the headquarters and there was no synergies and economies of scale gained. PepsiCo revised the organisational structure to a matrix structure. It enabled the organisation to operate in its particular competitive situation at peak effectiveness. At Pepsi they discovered that it was essential to drive the various brands as part of one team. There was less conflict between employees because of the hierarchical setup of the organisation. PepsiCo Beverages became the No 1 liquid refreshment beverage company in measured channels. There was a strategic fit as its strengths in the growing non-carbonated drinks market could be exploited and PepsiCo became the market leader in the total soft drink market. QUESTION 1 Why was PepsiCo essentially organised into North American and international divisions? Why were there some variations in this structure? Examining the organisation structures outlined in this chapter, in which category would you put PepsiCo?...
Words: 2510 - Pages: 11
...Background The beverage that became known as Pepsi Cola was invented by a pharmacist, Caleb Bradham in New Bern, North Carolina in 1893 (seven years after Coca-Cola was invented in Atlanta Georgia). The name Pepsi Cola was chosen after the kola nut extract in the recipe, and after the pepsin enzyme which aids digestion because Bradham believed his new drink had positive digestive properties, even though the recipe didn’t contain any pepsin. The Pepsi Cola Company was incorporated in 1092. Meanwhile, the the Frito Company was founded by Elmer Doolin in 1932, and the H. W. Lay Company, was founded by Herman W.Lay in that same year. Those two companies merged into the Frito-Lay company in 1961. When the Pepsi Cola company merged with the Frito-Lay company in 1965, PepsiCo Inc. was born. PepsiCo Company International Headquarters: The PepsiCo company headquarters are located in Purchase, NY. PepsiCo Company Mission Statement, Vision, and Purpose: The mission of the PepsiCo focuses on products and performance primarily, with a few values thrown in for good measure. The mission statement of the PepsiCo Company is: "Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce 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...
Words: 345 - Pages: 2
...Case Analysis for Pepsi Co Acquisition - More high level analysis (by beverages and food) we are in consumer packaged beverage and snack business Identify • Vision • Mission - Market leader in every industry they compete in - Synergies (transferring, management, HR skills, distribution channels – i.e. Power of One) - Market expansion (international) - Related diversification (share some of the same channels, advertising, distribution, etc) - There was no clear cut vision ( analysts and CEO even admitted it (looked like they were taking advantages of long term and short term opportunities) - Why do you have a portfolio of businesses? Maximize shareholder value ( would be one of the main drawbacks - Would buy current companies that will help piggy bank on their current success (i.e. restaurants and distribution channels) - Portfolio management – do they sell things off at the right time Identify Strategic Objectives (Are these objectives SMART) • Financial o Growth sale by certain percentage o Stock price o Cash • Non-Financial o Efficiency o International market Identify Current Business Strategy • Does It Make Sense? Why? Evaluate 1. Industry • Five Forces – Look at the industry today (*implication to the industry) Rivalry - Big companies manage to find niche and expand it - Little guys usually get bought out from...
Words: 1542 - Pages: 7
...PepsiCo SWOT Analysis Strengths • Established name and good reputation • Wide range of products (Diversification) • Vast distribution channel and easy availability Weaknesses • Competitors such as Coca Cola have more market share • Targets only young customers on promotions • Overdependence on Wal-Mart • Overdependence on US markets • Low productivity • Image damage due to product recall Opportunities • New product can easily penetrate in the market • Internet promotion and ordering processes • Broadening of product base • International expansion • Growing savoury snack and bottled water market in US Threats • Tough rivalry from competitors • Rising costs in raw materials and travel expenses • Substitutes (decline in carbonated drink sales) • Potential negative impact of government regulations • Potential disruption due to labour unrest PESTLE Analysis Political • Raw material prices becoming worrying • Land acquisition for new factories • Government focusing on stricter water pollution norms • Supposed to maintain firm standard laws set by the FDA • Competitive pricing Economic • New opportunities in other countries • Fuel price • Availability of labour • Economic downturn Social • Replenishing water • Partnership with farmers • Solid waste...
Words: 428 - Pages: 2
...Strategies of Pepsi Cola Table of Contents Executive Summery 3 Introduction 4 History 5 Effective Marketing and communication strategies of Pepsi 6 Media Commercials 6 Advantage of media commercials 6 Disadvantages of media commercials 7 Sponsorships 7 Advantages of Sponsorships 8 Disadvantages of Sponsorships 8 How to enhance the effectiveness of Sponsorship 8 Community Activities 8 Advantages of Community activities 9 Disadvantages of community activities 9 How to enhance the effectiveness of CSR projects 9 Product Diversification 10 Advantages of Product diversification 10 Disadvantages of product diversification 10 How to enhance the effectiveness of Product Diversification 11 Cross Comparison between the marketing strategies of Pepsi, Coca Cola, V and Red Bull 11 Conclusion 13 References 14 Executive Summery Pepsi is an aerated Soft drink that is produced by Pepsi Co. Inc. Pepsi Cola is using most of the modern communication and marketing methods to enhance their brand awareness among its consumers. Mainly they are advertising their brand on Television, Face book, Twitter and YouTube. In this report I have outlined the overview of the Pepsi Cola Corporation and its history, and the most effective communication strategies that are used by them to enhance their brand equity. These strategies include Advertisements, Sponsorships, Online promotions, Community activities and Product diversification of Pepsi Cola Corporation...
Words: 3206 - Pages: 13
...by drinking hard drinks can enjoy soft drinks and no one would think any less of them. In short, sodas have a mass appeal. They carry an image with them; an image of a person with a comfortable lifestyle. This essay will take a look at the company Pepsi Cola. For a better understanding of the subject company, this paper will delve into a brief history of the Pepsi Company’s growth over the years and the effects of competition on Pepsi’s strategies in the international and domestic market. This essay will attempt to discuss the effectiveness of Pepsi’s marketing strategies and its results. Body Pepsi was one of several other brands that got their start in the late 1800s. A North Carolina pharmacist named Caleb Bradham invented "Brad's Drink" in 1893, which was later renamed Pepsi-Cola. Pepsi’s early growth was less significant than that of Coke's, and its real strength as a competitor to Coke began after Alfred Steele became CEO in 1950, a time when Pepsi was nearly bankrupt. Steele was expected to liquidate the Pepsi-Cola Co. Instead, he made it his goal to "beat Coke" (Wolburg, 2003). Pepsi Cola has taken part of that appeal and has used it in several different marketing strategies. Pepsi was born after Coca Cola, or Coke. It began in North Carolina, invented...
Words: 2630 - Pages: 11
...PepsiCo’s mission is to be the world’s highest consumer product company focused on convenient foods and beverages. PepsiCo’s vision is to generate healthy financial returns and improve the lives of consumers, employees, and communities. This Code of Conduct applies to PepsiCo, its companies throughout the world, joint ventures over which PepsiCo has management control and to every employee, officer and director of these companies. PepsiCo has a Code of Conduct in place to ensure ethical behavior, not only does it touch on that aspect it does on others as well. There are many different sections in the Code of Conduct Policy. The first one is respect for our employees; PepsiCo respects the human rights and the dignity of all employees. PepsiCo is committed to equal opportunity in all aspects of employment for employees. This provides a workplace free from any form of discrimination or harassments. The health and safety section where PepsiCo is committed to providing safe and healthy environments at its facilities for all its employees, visitors, contractors, and vendors. This policy provides employees with a drug-free workplace. ("Pepsico worldwide code," 2008) Conflict of interest is a policy that means: don’t compete with PepsiCo business. All actual or apparent conflicts of interest between personal and professional relationships must be handled honestly and ethically. ("Pepsico worldwide code," 2008) Accounts and record-keeping policy is to observe the most stringent standards...
Words: 417 - Pages: 2
... 3.6 Europe 6 3.7 Asia, Middle East and Africa 7 4.0 ORGANIZATIONAL STRUCTURE 7 4.1 STRATEGIES 7 4.2 Supply Chain of PepsiCo. And Supply Chain Strategy 8 4.3 Supply Chain Planning 8 4.4 Supply Chain Operation 8 4.5 Process Views of a Supply Chain 8 4.6 Competitive Advantage to PepsiCo. 9 4.7 Distribution Channels 9 4.8 Customers 10 4.9 Competition 11 5.0 Financial Performance 11 5.1 2013 13 5.2 2012 14 6.0 Corporate Governance 16 7.0 Conclusion 16 1.0 Company profile Pepsi co. Inc. was established through the merger of Pepsi cola. Pepsi cola was created in the late 1890s by Caleb brad ham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer doling in 1932, and the H.W. lay company, founded by Herman W. lay, also in 1932. Herman lay, former chairman and CEO of Frito-Lay, was chairman of the boards of directors of the new company; Donald M. Kendall, former president and CEO of Pepsi cola, was president and chief executive officer. PepsiCo, Inc. was in corporate in Delaware in 1919 and was reincorporated in North Carolina in 1986. When used in this report, the terms “we,” “us,” “our,” “PepsiCo” and the “Company” mean PepsiCo, Inc. and its consolidated subsidiaries. They are a leading global food and beverage company with brands that are respected household names throughout the world. Through their operations, authorized bottlers, contract manufacturers and other third parties, they make...
Words: 3662 - Pages: 15
...Executive Summary The case study will examine the strategy implemented by PepsiCo to exploit rapidly growing markets opportunities by acquiring the organisations Tropicana, Gatorade and Quaker. The case study will highlight that it was imperative for the PepsiCo organisation to embark on a radical restructuring strategy to optimise their return on investments. The paper will discuss the rationale behind the critical restructuring .The benefits of the acquisitions and restructuring strategy will be discussed and motivated in detail. The strong existing competitive resources that PepsiCo and the new acquired brands in the North America region possess will be emphasised. The modifications to PepsiCo structure in 2001 and 2004 will be scrutinised to motivate and justify the decisions of the PepsiCo leadership. In addition the case study will evaluate the execution of the radical change and the tasks that should be performed by key resources. The emotional impact on employees due to the radical transformation and the key role employees should perform will be described. The focus of the paper will be on the function; the leadership of PepsiCo must perform and the potential roles the employees of PepsiCo could execute. Ultimately, the case study will discuss the complex relationship between structure and strategy. The paper will establish that PepsiCo had to regular acclimatise their strategy and structure to accomplish their organisational goals. Introduction Over...
Words: 2894 - Pages: 12
...food and beverage industry. PepsiCo merged with Pepsi and is the parent company that owns a variety of other companies such as, Frito Lay, Quakers, and ocean spray just to name a few. Pepsi alone is considered to be in the soft drink industry. (The PBG Inc. 2013). In accordance to Kpmg LLP, PepsiCo's operations are organized into four business units: PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), PepsiCo Europe, and PepsiCo Asia, Middle East and Africa (AMEA). These four business units comprise six reportable segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), Latin America Foods (LAF), PAB, Europe, and AMEA. Pepsico is in 200 countries. Prior to their merger in February 2010, PepsiAmericas (PAS) and Pepsi Bottling Group (PBG), the two North American bottling units of PepsiCo, operated as the company's independent bottling subsidiaries. They were the major distributors of the finish goods. Since the merger, PAS and PBG are operating as a unit of Pepsi Beverages Company (PBC). PBC operates in the US, Canada and Mexico and encompasses approximately three-fourths of PepsiCo's North American beverage volume.(Kpmg 1). Other than producing, marketing and selling PepsiCo's global beverage brands, the PBC also manufactures and distributes third-party brands in key local markets such as Dr Pepper, Crush, Rock Star and Muscle Milk. In lieu of having a core focus on Pepsico, we will focus on Pepsi, its narrow subsidiary. Market definition The...
Words: 5098 - Pages: 21
...Pepsi Co. After reading through the articles pertaining to Pepsi and their current search for a new CEO, the question can be raised as to whether or not the company should hire from within or search elsewhere for a suitable replacement. When a company is deciding whether to hire from within the company or to choose an outsider, there are both positives and negatives that come with each side of the decision. Choosing an insider that has already worked in the company has its advantages such as conveying a positive message to other employees throughout the organization. For instance, promoting a hirer level executive to fill the CEO roll with show all current employees that if they work hard and dedicate themselves to their profession, they may be able to get promoted to higher-level positions. Secondly, by promoting within a company, a sign of relief goes out to the majority of the current executives who are working for the company because when an outsider is hired for the role of CEO, often they will bring their own management team with them thus taking away jobs from the current employees. Lastly, promoting from within an organization ensures that the knowledge of the corporate culture remains intact. When an outsider is hired, it takes time for that person to learn the ins and outs of an organization whether it is finding out whom the all-star employees are or just what the culture of the work place is like. In essence, hiring an outsider equals a longer learning period,...
Words: 459 - Pages: 2
...pPepsiCo, Inc 2005 Current Ratio= 10,454 (Current Assets) = 1.11% 9,406 (Current Liabilities) 2004 Current Ratio= 8,639 (Current Assets) 1.28% 6752 (Current Liabilities) Vertical Analysis- 2005 1,716 (Cash, and Cash Equivalent) 0.054 or 5.4% 3,1727 (Total Assets) Vertical Analysis- 2004 1,280 (Cash and Cash Equivalent) = 0.046 or 4.6% 27,987 (Total Assets) Horizontal Analysis- 2005 2005 total current assets=10454 (8639 (total current assets 2004) = 1.2101 or 21% Horizontal Analysis- 2004 2005 total current liabilities = 9404 (6752 total current liabilities 2004 = 1.393 or 39%. These shows with the company obtaining more liabilities with an increase of 39% and an increase to its assets by 21%, the results were good. Coca Cola Company 2005 Current Ratio= 10,250 (Current Assets) 9,836(Current Liabilities) = 1.04 % 2004 Current Ratio= 12,281 (Current Assets) 11,133(Current Liabilities) = 1.10 % Vertical Analysis- 2005 4,701(Cash, and Cash Equivalent) 0.1598 or 1.6 % 29,427(Total Assets) Vertical Analysis- 2004 6,707(Cash and...
Words: 336 - Pages: 2
...the young age of fourteen to the age of 35. * Being that the majority of Pepsi’s products are heavy in sugar, that takes the elderly out of the equation when it comes to being a “target.” * PepsiCo advertises heavily in Universities and schools, restaurants and fast food stores, this is where their target market can be found constantly and have proven to be profitable consumers. Product Brand Strategy * Pepsi is introducing new can and bottle designs every few weeks, planning to sell 20 or more different ones annually in every market. Pepsi has already started selling the new packages in several countries. * The new packages depict themes like international travel, music and digital technology, with graphic images in light blue on Pepsi's traditional dark blue background. Some of the packages will direct consumers to Web sites and online video games, giving the campaign an interactive element. * Pepsi’s new branding is about recognizing cultural movements, not just creating marks. This new form of branding will allow Pepsi to use its cans and bottles as advertising vehicles, not just containers for its drinks. * Pepsi.com, a very Successful Brand Site, Chose a Target Audience, Explored the Audience’s Needs, Determined Their Own Business Goals, and designed a successful site. * This is one of its major brand strategy’s that has them ranked as number four on the by visits in the Food and Beverage Brand category, Ten above Coca-Cola. * New...
Words: 428 - Pages: 2
...reformulations to make snack foods and beverages less unhealthy. Their belief that its efforts to develop “good-for-you” or “better-for-you” products would create growth opportunities from the intersection of business and public interests. The company was organized into four business divisions which all followed the corporation’s general strategic approach. Frito-Lay North America manufactured, marketed, and distributed such snack foods as Lay potato chips, Doritos tortilla chips, Cheetos cheese snacks, Fritos corn chips, Quaker Chewy granola bars, Grandma’s cookies, and Smartfood popcorn. The PepsiCo Beverages North America beverage manufactured, marketed, and sold beverage concentrates, fountain syrups, and finished goods under such brands as Pepsi, Gatorade, Tropicana, Lipton, Dole, and SoBe. PepsiCo International manufactured, marketed, and sold snacks and beverages in approximately 200 countries outside the United States. Quaker Foods North America manufactured and marketed cereals, rice, pasta dishes, and other food items that were sold in super...
Words: 256 - Pages: 2
