ASSIGNMENT OF MPOB ON

pepsico

Submitted to: Ms. Kamalpreet

Submitted by: Simranjeet Kaur M.B.A. 1st (A) Roll no: 3318

ABOUT PEPSICO
PepsiCo Inc. is an American multinational food 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 PepsiCola 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 include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001which added the Gatorade brand to its portfolio. Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the company employed approximately 297,000 people worldwide as of 2011. The company's beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions. In 1965, the Pepsi-Cola Company merged with Frito-Lay, Inc. to become PepsiCo, Inc., the company it is known as at present. At the time of its foundation, PepsiCo was incorporated in the state of Delaware and headquartered in Manhattan, New York. The company's headquarters were relocated to its still-current location of Purchase, New York in 1970, and in 1986 PepsiCo was reincorporated in the state of North Carolina. PepsiCo was the first company to stamp expiration dates, starting in March 1994

Mission of PEPSICO
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 and integrity.

Vision of PEPSICO
"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.

Brands
Pepsi-Cola Brands Frito-Lay Brands Tropicana Brands Quaker Brands Gatorade Brands

PepsiCo Values & Philosophy

Our Values & Philosophy are a reflection of the socially and environmentally responsible company we aspire to be. They are the foundation for every business decision we make. Our Commitment

We are committed to delivering sustained growth through empowered people acting responsibly and building trust. What It Means

Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained growth stimulates innovation, places a value on results, and helps us understand whether today's actions will contribute to our future. It is about the growth of people and company performance. It prioritizes both making a difference and getting things done.

Empowered People means we have the freedom to act and think in ways that we feel will get the job done, while adhering to processes that ensure proper governance and being mindful of company needs beyond our own.

Responsibility and Trust form the foundation for healthy growth. We hold ourselves both personally and corporately accountable for everything we do. We must earn the confidence others place in us as individuals and as a company. By acting as good stewards of the resources entrusted to us, we strengthen that trust by walking the talk and following through on our commitment to succeeding together.

Guiding Principles

We uphold our commitment with six guiding principles.

We must always strive to: Care for our customers, our consumers and the world we live in. We are driven by the intense, competitive spirit of the marketplace, but we direct this spirit toward solutions that benefit both our company and our constituents. Our success depends on a thorough understanding of our customers, consumers and communities. To foster this spirit of generosity, we go the extra mile to show we care. Sell only products we can be proud of. The true test of our standards is our own ability to consume and personally endorse the products we sell. Without reservation. Our confidence helps ensure

the quality of our products, from the moment we purchase ingredients to the moment it reaches the consumer's hand. Speak with truth and candor. We tell the whole story, not just what's convenient to our individual goals. In addition to being clear, honest and accurate, we are responsible for ensuring our communications are understood. Balance short term and long term. In every decision, we weigh both short-term and long-term risks and benefits. Maintaining this balance helps sustain our growth and ensures our ideas and solutions are relevant both now and in the future. Win with diversity and inclusion. We embrace people with diverse backgrounds, traits and ways of thinking. Our diversity brings new perspectives into the workplace and encourages innovation, as well as the ability to identify new market opportunities. Respect others and succeed together. Our mutual success depends on mutual respect, inside and outside the company. It requires people who are capable of working together as part of a team or informal collaboration. While our company is built on individual excellence, we also recognize the importance and value of teamwork in turning our goals into accomplishments.

INDUSTRY OVERVIEW :
The industry is a tight oligopoly with Pepsi and its chief competitor, Coca Cola, comprising 70% of the total market. The industry for carbonated soft drinks is characterized by the following five forces:

Porters five forces Chart

Bargaining Power of Supplier Low - The input required in this industry is commodities which is unspecialized. - Many suppliers availavle locally as well as in international market. - Switiching is easy Competition within the industry very high
- Intense competition within the industry

Threat of new entrants Easy to enter - hard to compete

- Threat of new entrants is high in the industry but survival is very hard.
- Profit margins are very thin so competing .

- Industry is competing on the basis of price and quality

Bargaining power of Buyers Medium - Pricing and quality are the two concern - Beacuse of immense competition buyers has the advantage

Threat of substitute product High - Being in the food & beverage industry competiton is very hugh

- Switching is easy for customer

SWOT analysis
Strength:
Pepsi has a broader product line and outstanding reputation. Merger of Quaker Oats produced synergy across the board. Record revenues and increasing market share. Lack of capital constraints (availability of large cash flow). Great brands, strong distribution, innovative capabilities. Number of maker of snacks, such as corn chips and potato chips. PepsiCo sells three products through the same distribution channel.

Weakness:
Pepsi hard to inspire vision and direction for large global company. Not all PepsiCo products bears the company name. PepsiCo is far away from leader Coca-cola in the international market demand is highly elastic.

Opportunity:
Food division should expand internationally. Noncarbonated drinks are the fastest-growing part of the industry. There are increasing trend towards healthy foods.

 Focus on most important customer trend Convenience

Threats:
F&B industry is mature. Pepsi is blamed for pesticide residues in their products in one of their promising emerging market e.g. in India. PepsiCo now competes with Cadbury Schweppes, Coca-cola, and Kraft foods (because of their broader product line) which are well-run and financially sound competitors. Size of company will demand a varied marketing program; Social, cultural, economic, political and governmental constraints.

CORE COMPETENCIES
Product integration and Innovation The first core competency is their product integration and innovation. PepsiCo is able to enhance their product line by carrying fruit drinks, Gatorade, and Frappuccino. This allows them to promote their products and services more efficiently while being able to reach a much broader group of individuals. Through integration, they are able to eliminate potential competitors, while creating a more diverse product line.

Branding & Marketing Secondly, Pepsis strength lies in its branding and marketing. Pepsi had always come up with the unique ad campaigns focusing towards its target market. This uniqueness in advertising and branding has given it a competitive advantage over its competitors. Pepsi target audience is mostly teens and young adults and their advertising reflects this in every possible manner. Some of Pepsi successful Ad campaigns like Yeh dil maange more, Oye Bubbly and Youngistan created a huge impact on its Target group.

Apart from these, several factors mentioned below have been PepsiCo strength over the years, and still they are backing up its core competencies in different possible way. - Savings resulting from economies of scale. - Number 1 maker of snacks, such as corn chips and potato chips. - Merger combined two strong companies, PepsiCo and Quaker Oats. - Company does more than just soft drinks. - Merger combined more than carbonated and noncarbonated drinks. - Not all PepsiCo products bear the company name.

ADVERTISING STRATEGY OF PEPSI

Pepsis target audience are mostly teens and young adults and their advertising reflects this in every possible way. The company changes its advertising strategy and image to reflect the target's interests.

 Pepsi makes sure that the advertisements reflect to the target audiences interests and nostalgia.

The advertising is mostly creative and has different elements like music and sports

Pepsi.com also plays an important role in advertising and attracts target audience by giving access to options like downloads, gaming, music mixing applications etc..

SIX LONG-TERM RECENT GROWTH STRATEGIES OF PEPSICO

Pepsico continue to focus on delivering top-quartile financial performance in both the near term and the long term, while making the global investments in key regions and targeted product categories to drive sustainable growth. The next chapter in our growth is founded on six long-term growth strategies:

Expand the Global Leadership Position of Snacks Business.

PepsiCo is the global snacks leader, with the No. 1 savory category share position in virtually every key region across the globe. It has advantaged positions across the entire value chain in more than 40 developed and developing regions in which we operate as we capitalize on local manufacturing and optimized go-to-market

capabilities in each region, as well as the ability to introduce locally relevant products using global capabilities. And it has significant growth opportunities as it expand its current businesses in these regions, extend reach into new geographies and enter adjacent categories. Importantly, it will continue to make its core snacks healthier through innovations in heart-healthier oil, sodium reduction and the addition of whole grains, nuts and seeds.

Ensure Sustainable, Profitable Growth in Global Beverages.

The merger with pepsicos anchor bottlers creates a lean, agile organization in North America with an optimized supply chain, a flexible go-to-market system and enhanced innovation capabilities. When combined with the actions it is taking to refresh its brands across the entire beverage category,Pepsico believe this gamechanging transaction will enable it to accelerate its top-line growth and also improve its profitability . It continue to see significant areas of global beverage growth, particularly in developing markets and in evolving categories. It will invest in those attractive opportunities, concentrating in geographies and categories in which we are the leader or a close second, or where the competitive game remains wide open. Additionally, it will use our R&D capabilities to develop low- and zero-calorie beverages that taste great and add positive nutrition such as fiber, vitamins and calcium.

Unleash the Power of "Power of One.

" PepsiCo is in the unique position to leverage two extraordinary consumer categories that have special relevance to retailers across the globe. Its snacks and beverages are both high-velocity categories; both generate retail traffic; both are

very profitable; and both deliver exceptional cash flow. The combination of snacks and beverageswith our high-demand global and local brandsmakes PepsiCo an essential partner for large-format as well as small-format retailers. It will increasingly use this portfolio and the high coincidence of consumption of these products through integrated offerings (products, marketing and merchandising) to create value for consumers and deliver greater top-line growth for retailers. We also will be accelerating Power of One supply chain and back-office synergies in many regions to improve profitability and enhance customer service.

Rapidly Expand "Good-for-You" Portfolio.

PepsiCo currently has a roughly $10 billion core of "Good-for-You" products anchored by: Tropicana, Naked juice, Lebedyansky, Sandora and our other juice brands; Aquafina; Quaker Oats; Gatorade (for athletes); the new dairy joint venture with Almarai; and local "Good-for-You" products and brands. It will build on this core with an increasing stream of science-based innovation derived from the R&D capabilities that it have been ramping up over the past couple of years, as well as from targeted acquisitions and joint ventures. Pepsico will be investing to accelerate the growth of these platforms, and we will use the knowledge from these initiatives to improve its core snack and beverage offerings and also to develop highly nutritious products for undernourished people across the world.

Continue to Deliver on Environmental Sustainability Goals and Commitments.

Pepsico is committed to protecting the Earth's natural resources and are well on our way to meeting its public goals for meaningful reductions in water, electricity

and fuel usage. Its businesses around the world are implementing innovative approaches to be significantly more efficient in the use of land, energy, water and packagingand are actively working with the communities in which we operate to be responsive to their resource needs. In 2009, Pepsico formalized its commitment to water as a human right, and we will focus not only on world-class efficiency in its operations, but also on preserving water resources and enabling access to safe water. Its climate change focus is on reducing carbon footprint, including a reduction in absolute greenhouse gas emissions through continued improvement in energy efficiency and the use of alternative energy sources. It actively work with its farmers to promote sustainable agricultureand we are developing new packaging alternatives in both snacks and beverages to reduce its impact on the environment.

Cherish Associates and Develop the Leadership to Sustain Growth.

Pepsico have an extraordinary talent base across our global organizationin its manufacturing facilities, sales and distribution organizations, marketing groups, staff functions and with general managers. As it expand its businesses, it is placing heightened focus on ensuring that it maintain an inclusive environment and on developing the careers of associatesall with the goal of continuing to have the leadership talent, capabilities and experience necessary to grow businesses well into the future. As an example, it is implementing tailored training programs to provide managers and senior executives with the strategic and leadership capabilities required in a rapidly changing environment.