3. 2nd largest beverage company in the world.
Presence in 200 countries
Key International markets include Argentina, Brazil,
China, India, Mexico, Saudi Arabia, Spain, Thailand and
U.K.
Introduction
4. History
1890 – Founded by Caleb Bradham
1903 – Trademark
1923, 1931 – Bankrupt
1936- 1938 – Great Depression,
Profit Doubled , 10-5 cents.
1941 – Pepsi stock 1st time
1950 – Franchise outside U.S.
5. 1960 – Target market – Young adults
1965 – Pepsi Cola Merger with Frito-Lay to form PepsiCo.
1970-1980 – Bought restaurant chains such as Pizza hut, Taco
bell, KFC
1980-1990 – Cola Wars
1994-1999 - International Growth and Diversification,
Tropicana $ 3 billion
2000 – Quaker Oats, Gatorade
Cont’d..
6.
7. Soft drinks are not referred to as items of necessity.
Sodas stand between liquor and juice.
9. Acquired Tropicana in 1998
Available in more than 63 countries.
Pure, fresh fruit juice in easy to handle package has
attracted the consumers
10. Three business units
1. PepsiCo Americas Foods which includes:
Frito-Lay North America ,
Quaker Foods North America,
all of its Latin American food and snack businesses.
2. PepsiCo Americas Beverages consisted of:
PepsiCo Beverages North America
all of its Latin American beverage businesses.
3. PepsiCo International.
all PepsiCo businesses in Europe, Asia, Middle East
and Africa (AMEA)
11. Mission Statement
“ 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
12. Company Objectives
Capture larger market share through product
innovation and diversification.
To use synergy between product portfolios to cross sell
products.
Achieve higher growth from its international markets.
13. Company Objectives
Create a sustainable business for the communities and
environment.
To spot the shift in consumer preferences.
Supporting product initiatives with creative marketing
and sales initiatives.
14. Q: Who has been wining the war?
1950: Coke have 47% and Pepsi have 10%
1970: Coke have 35% and Pepsi have 29%
1990: Coke have 41% and Pepsi have 32%
2000:Coke have 44% and Pepsi have31.4%
2006:Coke have 43.1% and Pepsi have 31.7%.
ABOUT THE WINING WAR OF THE
COMPETITION
17. Strategic Groups
Strategic groups Coca-Cola Dr Pepper
1. Objectives different different
2. Strategies same same
3. Strengths Market share Product position
4. Weaknesses Undiversified
product
Undiversified
product
19. Product development
Marketing:
Long-Term Objective:
Delivering catered products to each region to match customer
preference and needs.
Annual Objective:
Introduce one new product every year.
Support developed products with creative marketing campaigns.
20. Policy:
All Marketing activity must be evaluated before execution to insure
success. In addition, the marketing activity of developed products
should cover wider spectrum of customers to utilize marketing budget
effectively.
Strategy:
Conduct Market Survey and research to understand consumer
preference and needs.
Collect loyal consumers’ feedback and ideas for future product
development.
Product development
21. Product development
Policy:
Being very selective in hiring, by choosing skilled and
experienced employee.
Schedule semiannually meeting with suppliers.
Strategy:
Use latest technology in the manufacturing process.
Take an advantage of low supplier bargaining power and
empower JIT.
22. Implementation
Product development
Policy:
The company must cover the rising costs by increasing
revenue proportionately.
Strategy:
Company will acquire a $500 million dollar loan financed
and paid over a 5 years period.
23. PRODUCTS Mix
( foods & beverages )
Beverages mix:
1. Carbonated categories:
- Fun for you portfolio ( Pepsi Cola, Diet Pepsi )
2. Non-carbonated
- Better-for-you and Food-for-you portfolio
- ( Tropicana series )
24. Media Strategies
• Use the media to attract non-Diet Pepsi users
through TV, radio
• Print adds
• Advertise Diet Pepsi during warmer months May
– September
• The target audience will be exposed to Diet
Pepsi commercials for 10 Wks
25. Conclusion
Pepsi is a well renowned company and it has
maintained its position well by understanding the
client psychology.
• By ensuring quality.
• By introducing ingenuity in products.
• By enlarging its product base .
• By keeping economic factors in view.
• By intense and jazzy advertisements.