Prepared By:

Mekonnen Habtemichael
Oliyad Eba
Alemayehu Leta
Smita
Usha

Submitted To:
Prof Rose John

Contents:

1. Mission & Visions

2. History
3. Organization Chart
4. Products Details
5. Financial Highlights
6. Marketing Strategies
7. Competitor & its Analysis
8. Sowt Analysis
9. Pest Analysis
10.Conclusion's

Mission & Vission

Mission
Their 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
and integrity.

Vision
"PepsiCo's responsibility is to continually improve all aspects of the world in which we
operate environment, social, economic creating a better tomorrow than today."
Our vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making PepsiCo
a truly sustainable company.

Today

2003

History:

1998

1973
1950
1906
1898

 In 1893, Pepsi was first introduced as "Brad's Drink", in New Bern,

North Carolina, United States.
It was later labeled as Pepsi Cola.
In 1903, Bradham moved the bottling of Pepsi-Cola from his
drugstore to a rented warehouse. That year, Bradham sold 7,968
gallons of syrup. The next year, Pepsi was sold in six-ounce bottles,
and sales increased to 19,848 gallons.
In 1909, automobile race pioneer Barney Oldfield was the
first celebrity to endorse Pepsi-Cola.

In 1926, Pepsi received its first logo redesign since the original
design of 1906.
In 1929, the logo was changed again.
In 1931, at the depth of the Great Depression, the Pepsi-Cola
Company entered bankruptcy.
On 1922 and 1933, The Coca-Cola Company was offered the
opportunity to purchase the Pepsi-Cola company, and it declined
on each occasion.
1959 Crawford was appointed to the Board of Directors of Pepsi-Cola.
1975 Pepsi introduced the Pepsi Challenge marketing campaign .

 1996, PepsiCo launched the highly successfulPepsi Stufmarketing strategy.

2007, PepsiCo redesigned its cans for the fourteenth time.
2008, Pepsi overhauled its entire brand, simultaneously introducing
a new logo and aminimalistlabel design.
2009, "Bring Home the Cup" changed to "Team Up and Bring Home the Cup
new campaign
2012, Pepsi introducedPepsi Next, a cola with half the calories of regular Pepsi.
2013, Pepsi for the first time in 17 years reshaped its 20-ounce bottle,

Organizational Chart:

Pepsi Co Americas Food (PAF)

It includes Frito-Lay North America, Quaker all
Latin American food.
Its snack businesses including the sabritas and game business includes in
Mexico.
Pepsi Co Americas Beverage Food (PAB)
It contain Tropicana and all Latin
American beverage.
It contain customer management for food service and fountain businesses.

Pepsi Co International (PI)

It includes all PepsiCo businesses in Uk,
Europe, Asia and Middle East.
In Uk it declared new product of the year by marketing week
magazines.
In Asia it strong growth in savory snacks in China and Thailand.
In Middle East the Lays brand helped drive to share gains in Turkey.

Board of Directors:

Shown in photo, left to right:

Victor J. Dzau, M.D.

Chancellor for Health
Affairs, Duke University;
President and Chief
Executive Officer, Duke
University Health System.
Ian M. Cook
Chairman, President and
Chief Executive Officer,
Colgate-Palmolive
Company .
Sharon Percy
Rockefeller
President and Chief
Executive Officer,
WETA Public Stations.
Daniel Vasella, M.D.
Former Chairman and
Chief Executive Officer,
Novartis AG

Dina Dublon
Former Executive Vice
President and Chief
Financial Officer,
JPMorgan Chase & Co.
Ray L. Hunt
Chairman, President and
Chief Executive Officer,
Hunt Consolidated, Inc.
James J. Schiro
Former Chief Executive
Officer, Zurich Financial
Services
Shona L. Brown
Senior Advisor,
Google Inc.
Shona L. Brown
Senior Advisor,
Google Inc.
Lloyd G. Trotter
Managing Partner,
GenNx360 Capital
Partners

Indra k. Nooyi
Chairman and Chief
Executive Officer,
PepsiCo
Alberto Weisser
Chairman and Chief
Executive Officer,
Bunge Limited
Alberto Ibargen
President and Chief
Executive Officer,
John S. and James L.
Knight Foundation

Products Details:

Aquafina
Aquafina bottled water goes through a
state-of-the-art purification process so that
you get the refreshment your
body craves in its purest form
Cheetos
CHEETOS Snacks are the playfully
mischievous cheesy crunch that add a
little lighten-up moment to any day.
Proof positive, you simply cant eat a
Cheetos Snack without smiling. The
CHEETOS brand strives to provide
consumers with fun times every step of
the way

Lay's
Wherever smiles happen and happiness is
celebrated, youll find LAY'S potato chips.
From backyard BBQs and
birthday parties to 4th of July picnics,
LAY'S chips are there to share the moment.
Its no wonder these
deliciously fresh-tasting and perfectly crispy
potato chips have been Americas..

Lipton
Made with natural ingredients, new 100%
Natural Lipton Iced Tea unlocks the natural
goodness of tea, blending it
with delicious flavors to hydrate and refresh
you.
Tropicana
Mountain Dew
Tropicana, the strongest name in juices,
Mountain Dew exhilarates and quenches
extends the PepsiCo portfolio of brands with with its one of a kind great taste.
plenty of nutritious, high-quality flavors.
Tropicana Products, Inc. is the leading
producer and marketer of branded fruit
juices. Its products
are marketed in the U.S. under a variety of
brand names, including...
Pepsi
Pepsi - the bold, refreshing, robust cola.

PepsiCo Mega-Brands
PepsiCo, Inc. has 18 mega-brands that generate $1 billion or more each in annual retail sales
(estimated worldwide retail sales in billions).

Financial Highlights

Running a Company for the long term is like driving a car in a race that has no end.

Financial Highlights
International Growth & Revenues

Worlds second-largest food and beverage business.

They make, market or sell their products in more than 200 countries.
More than 49% of their business is generated outside the U.S.
In 2010, they achieved their target to increase their revenues outside the U.S. for
approximately 30 %.
In 2011, they delivered core net revenue growth of 14%.
In 2012, the revenue is 1% less than the 2011. During 2012 they undertook a
number of significant initiatives that they believe will position them for future
success.
These initiatives included increasing investment in their iconic global brands;
stepping up their innovation program and launching new products like Pepsi Next.
In 2013, their revenue increased by 1.5% as compared to 2012, & deliver its planned
$900 million in productivity savings during 2013 to reach $3 billion in savings
between 2012 and 2014.

Financial Highlights
Critical Accounting Policies
These policies help management to make difficult and subjective judgments
regarding uncertainties, and as a result, such estimates may significantly impact
their financial results.
The precision of these estimates and the likelihood of future changes depend on
a number of underlying variables and a range of possible outcomes.
They applied their critical accounting policies and estimation methods
consistently in all material respects, and for all periods presented.

Financial Highlights
Effect of Foreign Exchange Rate
Financial statements of foreign subsidiaries are translated into U.S. dollars using
period-end exchange rates for assets and liabilities and weighted-average
exchange rates for revenues and expenses.
Countries which generates our net revenue for around 50% includes Russia,
Mexico, Canada, United Kingdom and Brazil, as a result we are exposed to
foreign currency risks.
In 2010 & 2011, favorable foreign currency contributed 1% to net revenue
growth, primarily due to appreciation of the euro, Canadian dollar and
Mexican peso.
During 2012, unfavorable foreign exchange reduced net revenue growth by
2.5%, primarily due to depreciation of the currencies of Russia, Brazil & Mexico.

Effect of Exchange Rate Changes To Date

Effected

-258 million

Marketing Strategies
Global Marketing & Advertisements
The company's global marketing and ad expenses shot up 11% in the first
quarter, compared with the first quarter of 2012.
Over the course of a century Pepsi has grown to be an amazing brand both in
advertisement and style campaigns, providing top notch strategy plans to kicked
out other competitors, which not only includes Billboards, Banners & stickers on
Busses & trucks, but also with world class Celebrities !
PepsiCo looks for properties that take a vested interest in a partnerships success
by keeping the company up to speed on new marketing initiatives and other
programs where there may be a brand fit.

Marketing Strategies
Global Marketing & Advertisements
PepsiCo also activates league and team deals with localized in-store promotions.
Social media marketing is becoming increasingly dependent on user-generated
content, meaning reviews, comment, or any other input from customers.
The multi-brand strategy supports the organic role that PepsiCo brands play in
the sports experience whether on the field of play or the fan experience.

Marketing Strategies
Global Marketing & Advertisements
Online Advertisements is a huge GO for marketing, & PepsiCo is one of them.
Collect & Win competitions, In this type of events customers needs to collect enough
points to get the listed gifts. Points can be of any type from Cap of an empty bottle to a
empty wrapper of a Lays Chips. This attract customers a lot to buy their product in
order to collect the points

We want to reach more consumers in more places at more times than anyone
else,

Competitors & its Analysis:

Coca-Cola

PepsiCo
Mondelez

Dr Pepper

PepsiCo
The PepsiCo challenge (to archrival Coca-Cola) never loses its fizz for the world's #2
carbonated soft drink maker. Pepsi products are available in 200-plus countries; the US
generates 50% of sales. The company operates its own bottling plants and distribution
facilities.
-The Coca-Cola Company
-Mondelez International, Inc. Company
-Dr Pepper Snapple Group, Inc. Company

Analysis

Global Ranking

Natures

#2

carbonated soft drink

Maker

#1

nonalcoholic beverage
company

#88

Kraft Foods maker

#427

soda and Snapple drinks

PepsiCo Vs. Coca-Cola

1. Pepsi and Coca Cola are two international soft-drink giants which control most of
the soft-drinks beverage business in the world.
2. Pepsi has the following brands under its umbrella: Pepsi, Tropicana, Mountain Dew,
Quaker, Aquafina, 7Up, Lays, etc. Coke on the other hand has the following brands: Coca
Cola, Coke light, Diet - coke, Kinley water, Kinley Soda, Fanta, Sprite, Thums Up etc.
3. Pepsi and Coke command over 95% of the soft-drink market in India. However
Coke continues to outsell Pepsi most areas of the world but in India and Pakistan
and some other countries, PepsiCo fares far better than coke.

Swot Analysis:

Strengths:
1. Extensive distribution channel:
PepsiCo products are served to more than
10 million stores per week in more than
200 countries
2. Successful marketing and
advertising campaigns.
More than $2 billion spent on advertising
over 2012 resulted in PepsiCos growing
market share over its main
competitors, including Coca Cola
Company, which spent even more on
advertising.

3. Proactive and progressive

According to New York Times food industry
writer Melanie Warner, PepsiCo, by many
critics, is considered to
be most proactive and progressive food
company.

Weaknesses:
1. Low pricing.
PepsiCo usually prices its products lower
than its competitors. Low price is associated
with low quality and
PepsiCo products are usually perceived as
ones
2. Weak brand awareness.
The Coca Cola Company has the largest
share market of beverages in the world
and much stronger brand
awareness than Pepsi, placing it at
competitive disadvantage

3. Too low net profit margin.

PepsiCos net profit margin is 9.7% compared
to Coca Colas 18.55% and Nestls 11%

Opportunities:
1. Savory snacks consumption
growth.
The same opportunity PepsiCo has in
growing its revenue selling snacks as
this market is also expected to grow.
2. Bottled water consumption
growth.
Consumption of bottled water is expected
to grow both in US (PepsiCos
largest bottled water market) and the rest
of the world

3. Increasing demand for healthy

food and beverages.
Due to many programs to fight obesity,
demand for healthy
food and beverages has increased drastically.
PepsiCo has an opportunity to further
expand its product range with
beverages and snacks that have low amount
of sugar and calories

Threats:
1. Changes in consumer tastes.
Consumers around the world become more
health conscious and reduce their
consumption of carbonated drinks, drinks
that have large amounts of sugar, calories and
fat
2. Water scarcity.
Water is becoming scarcer around the
world and increases in both cost and
criticism for
PepsiCo over the large amounts of
water used for production.

3. Decreasing gross profit margin.

PepsiCos gross profit margin was decreasing
over the past few years and may continue to
decrease due to higher water and other raw
material costs.

Conclusions:
1. PepsiCo is always looking into the future,
trying to make the company most profitable
and suiting to its
4. New policy of the company should be
shareholders.
introduced before the competitors launch
those policies.
2. PepsiCo is also reformulating its
Aquafina Alive water with a new
5. A healthy relationship should be developed
sweetener blend that has fewer calories. by the companys executives with the dealers.
3. More focus on sales of Gatorade

6. All the factors involved in pest analysis

have a great impact on
each and every company. they all are
interconnected with each
other and also leads to a profitable business.

Thanks you: