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Pepsi Marketing Mix
1.
2. PepsiCo Inc. is an American multinational food, snack
and beverage corporation headquartered in Purchase, New
York, United States, with interests in the manufacturing,
marketing, and distribution of grain-based snack foods,
beverages, and other products. PepsiCo was formed in 1965
with the merger of the Pepsi-Cola Company and Frito-Lay,
Inc. PepsiCo has since expanded from its namesake product
Pepsi to a broader range of food and beverage brands, the
largest of which includes an acquisition of Tropicana in 1998
and of Quaker Oats in 2001, which added the Gatorade brand
to its portfolio.
3. As of January 26, 2012, 22 of PepsiCo's brands generated
retail sales of more than $1 billion apiece, and the company's
products were distributed across more than 200 countries,
resulting in annual net revenues of $43.3 billion. Based on net
revenue, PepsiCo is the second largest food and beverage
business in the world. Within North America, PepsiCo is the
largest food and beverage business by net revenue.
4. Indra Krishnamurthy Nooyi has been the chief
executive of PepsiCo since 2006. The company's
beverage distribution and bottling is conducted by
PepsiCo as well as by licensed bottlers in certain
regions. Approximately 274,000 employees generated
$66.415 billion in revenue as of 2013.
5. The Coca-Cola Company has historically been considered
PepsiCo's primary competitor in the beverage market, and in
December 2005, PepsiCo surpassed The Coca-Cola Company in
market value for the first time in 112 years since both companies
began to compete. In 2009, The Coca-Cola Company held a higher
market share in carbonated soft drink sales within the U.S. In the
same year, PepsiCo maintained a higher share of the U.S.
refreshment beverage market, however, reflecting the differences in
product lines between the two companies. As a result of mergers,
acquisitions and partnerships pursued by PepsiCo in the 1990s and
2000s, its business has shifted to include a broader product base,
including foods, snacks and beverages.
6. The majority of PepsiCo's revenues no longer come from
the production and sale of carbonated soft drinks.
Beverages accounted for less than 50 percent of its total
revenue in 2009. In the same year, slightly more than 60
percent of PepsiCo's beverage sales came from its primary
non-carbonated brands, namely Gatorade and Tropicana.
7. PepsiCo's Frito-Lay and Quaker Oats brands hold a significant
share of the U.S. snack food market, accounting for
approximately 39 percent of U.S. snack food sales in 2009. One
of PepsiCo's primary competitors in the snack food market
overall is Kraft Foods, which in the same year held 11 percent
of the U.S. snack market share. Other competitors for soda
are RC Cola, Cola Turka, Kola Real, Inca Kola, Zamzam
Cola, Mecca-Cola, Virgin Cola, Parsi Cola, Qibla Cola, Evoca
Cola, Corsica Cola, Breizh Cola, Afri Cola.
8. In November 2007, PepsiCo
announced a restructuring initiative to
split the company into three units,
one for food in the US, one for
beverages in the US and one for food
and drinks abroad.
9. •Beverage Products – Diet Pepsi, Gatorade, Mountain
Dew, Thirst Quencher, Tropicana, Aquafina Bottled Water,
Sierra Mist.
•Savory Food Snacks – Fritos Corn chips, Cheetos,
Ruffles Potato Chips, Lays Potato Chips, Tostitos, Doritos.
•Other Food Products – breakfast cereals, cakes and cake
mixes.
•PepsiCo recently created Baked Snacks North America
Business
Unit to meet consumer’s interest in more nutritious snacks
and foods.
10. •Expenses related to transportation, ingredients and labor
continue to pressure the beverage industry toward price
increases.
•PepsiCo’s drink pricing strategies may be heavily
influenced by its working relationship with Wal-Mart
whose low price themes put pressure on PepsiCo to hold
down prices.
•The company strives to cut or maintain current prices by
cutting overhead and re-engineering the manufacturing
process.
11. •PepsiCo is expanding its use of inexpensive and
recyclable plastic bottles; nevertheless the
company has instituted some price increases in
recent years, specifically in its overseas markets
such as New Delhi and Duba.
12. •PepsiCo is primarily a US based company with approximately
52% of its revenues located in the states.
•PepsiCo is in the midst of making a $1, 000 million investment
in China, and a $500 million investment in India. Both
initiatives are part of its expansion into international markets
and a lessening of its dependence on US sales.
•In addition the company plans on major capital initiatives in
Brazil and Mexico.
13. •The company is also acquiring Russia’s leading Juice Company,
Lebedyansky, and V Water located in the United Kingdom.
In 1965 Herman W. Lay of the Frito-Lay Company and Donald
Kendall of Pepsi-Cola formed PepsiCo. In 1986 operations were
combined under PepsiCo Worldwide Foods and PepsiCo
Worldwide Beverages. In 2001 PepsiCo merged with Quaker
Oats to form a $25 billion company. PepsiCo restructured in 2007
dividing the company into three units’ food in the US, Drinks
concentrated in the US and Food and Drinks marketed abroad.
14. •PepsiCo instituted a so called Pepsi Stuff promotion
whereby customers could accumulate Pepsi Points from
buying various products these points could be used to by
other products, most recently AmazonMP3.
•A recent promotion involving the NY Yankees was not well
received when not enough free tickets were made available.
•In 2008 PepsiCo employed Tiger Woods to promote a
Gatorade brand called Gatorade Tiger.
15. •PepsiCo continues is promotional association with
the NFL and the Super Bowl specifically marketing
Pepsi and Doritos.
•In 2009 Pepsi launched its “Pepsi Throwback”
campaigned offering a drink with the sugar content of
its original product.
16. •Indra K. Nooyi is the President of PepsiCo in addition to the
company’s CFO
•Recently the Board of Directors elected Steven S Reinemund
chairman of the board and chief executive officer.
•PepsiCo fosters a corporate culture that values employees and
emphasized diversity in the workplace.
•PepsiCo is named to the ‘Best Companies for Multi Cultural
Women’ list by Working Mother magazine
17. •PepsiCo is recognized at two events for its dedication to
Talent Sustainability and dedication to Asian American
employees—2009 Best Companies for Asian Pacific
Americans from Asian Entrepreneur, Top 10 Companies for
Asian Americans from AMBA
•PepsiCo has won the ‘Workplace Excellence’Award at Out &
Equal Workplace National Summit
•PepsiCo is listed in the top 20 ‘Ideal Employer MBA
Ranking’ in Fortune magazine.
18. •PepsiCo’s website provides a wealth of information
about the company including the firm’s rich history
and manufacturing process.
•PepsiCo is an industry leader in packaging –
helping to promote and implement standards for
sustainable packaging.
•PepsiCo has a packaging philosophy: reduce, reuse,
recycle, remove and renew.
19. •PepsiCo is in the process of removing high fructose corn syrup
(HFCS) from both the traditional.
•The Frito-Lay department will soon produce Lay’s Kettle with
natural flavors, and to boost the whole grain and fiber content,
respectively, of its Tostitos and Sun Chips brands.
20. •Flavor concentrates are shipped from special Pepsi-Cola
manufacturing plants, The bottles and cans that will eventually be
filled with Pepsi are manufactured elsewhere, and shipped to Pepsi
plants wrapped and sealed for protection, Labels, cartons, caps, the
carbon dioxide used to carbonate soft drinks and other supplies are
also produced for Pepsi by other companies, Once on the belt, cans
are part of an enclosed, controlled environment that keeps them
sanitary and helps ensure quality throughout the filling process.
21. Pepsi-Cola takes special care to purify the water it uses – a
procedure that involves careful treatment, filtration and
purification, Pepsi-Cola flavor concentrate is carefully
combined with sweeteners and other ingredients in large
stainless steel mixing tanks. Quality control audits performed by
specially trained technicians are a critical part of the
manufacturing sequence, In the last step of the manufacturing
process, as the now-rinsed cans reach the filler, they’re
reinverted, immediately filled and the lid is applied – at an
average speed of 1,200 cans per minute.