Pepsico entered India in 1989 through a JV with Punjab Agro Ltd. and Voltas

Over the years it has built an expansive beverage and snack foods business

The beverages division includes – 7UP, Aquafina, Duke’s, Gatorade, Mirinda, Mountain Dew, Nimbooz, Pepsi,

Slice &Tropicana

The foods division houses both local and international brands like – Aliva, Cheetos, Kurkure, Lay’s, Lehar Namkeen, Quaker Oats & Uncle Chipps

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.

In everything we do, we strive for honesty, fairness and integrity.

Mission

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.

Key External FactorsWeights (0.0 -

1.0) Rating (1 - 4)Weighted

ScoreOpportunities      

The growing demand for sports drinks, bottled water, and energy drinks 0.18 4 0.72

Growth rate in the carbonated drink market is the largest in Asia when compared to the rest of the world 0.15 2 0.3

Compete aggressively in more than one industry (the salty food industry, and

the breakfast food industry) 0.1 1 0.1Threats      

Fierce competition from Coca-Cola, which has the highest market share 0.16 4 0.64

Customers are getting more conscious and concerned about their eating

habits and general health 0.14 3 0.42Concerns of pesticides in carbonated drinks had an impact on their sales 0.14 3 0.42Excess dependence on supplies of

clean water to avoid contamination 0.08 2 0.16Recessionary conditions lead customers

to finding cheaper local substitutes 0.05 2 0.1Totals 1   2.86

Pepsico Coca Cola

Critical Success Factors

Weights (0.0 - 1.0)

Rating (1 - 4)

Weighted Score

Rating (1 - 4)

Weighted Score

Price Competitiveness 0.15 3 0.45 3 0.45

Product Diversity 0.14 4 0.56 4 0.56

Product Quality 0.13 4 0.52 4 0.52

Customer Loyalty 0.12 3 0.36 4 0.48

Sales Distribution 0.12 4 0.48 3 0.36

Advertising 0.11 4 0.44 4 0.44

Company Image 0.11 4 0.44 4 0.44

Financial Position 0.07 3 0.21 3 0.21

Market Share 0.05 3 0.15 4 0.2

Totals 1   3.61   3.66

Key Internal FactorsWeights (0.0 -

1.0) Rating (1 - 4)Weighted

Score

Strengths      

Strong Brand Equity 0.15 4 0.6

Diverse Product Portfolio 0.13 3 0.39

Strong Ad campaigns 0.13 4 0.52

Socially responsible 0.12 3 0.36

Continuous Innovation 0.11 4 0.44

Weaknesses      

Lower customer loyalty 0.14 1 0.14Expensive to develop new products

continuously 0.12 2 0.24Lower market share for Pepsico as a

whole 0.1 2 0.2

Totals 1   2.89

SO Strategies ST Strategies WO Strategies WT Strategies

(O1,O3,S2,S5) Continue to offer variety or product in various brands.

( O2, S2,S5) Expand and focus on the carbonated drinks and beverage segment

(O1,O3,S1,S2) Respond to the growing demand of sports drinks, bottled water, and energy drinks by expanding product market.

(S1, S3, S4, S5,T1) Innovate Pepsi product line with something that is going to differentiate us from Coca-Cola.

(S2,S5,T2,T3,T4) Innovate products by offering healthier alternatives.

(S1,T1,T5) Offer more promotions or discounts to prevent sales from decreasing.

(S4,S5,T2,T3) Develop more environmentally friendly containers.

(S1,S4,T2,T3,T4) Support environmental issues, such as pollution, which causes water contamination.

(W3,O1,O2) Expand Pepsi sodas product in rural areas

(W1,W3,O1,O3)Improve their sales in the beverage segment by responding to the increasing demand for sports drinks, bottled water, and energy drinks.

(W2,T1,T5) Adjust production of bottles with downturn in economy.

(W1,W3,T1) Produce bigger size of bottles and sale them at the same price as the small one.

(W2,T1,T4) Be responsible and cautious towards supplies of water.

(W1, W2,T1,T5) Increase supply chain production by monitoring cautiously employees and improving workers training.

(W1,W3,T1,T3,T4) Increase presence in rural areas and promoting environmental cause.

IFE Scores

 Strong 3.0 - 4.0

Average 2.0 - 2.99

Weak 1.0 - 1.99

EFE Scores

High 3.0 - 4.0

     

Medium 2.0 - 2.99

  Pepsico India  

Low 1.0 - 1.99

     

Division Revenue % Revenue Profit Profit % Market Share Market Growth

Frito-Lay North America $ 13,224.00 31% $ 3,258.00 36% 1 5.42%

Quaker Foods North America $ 1,884.00 4% $ 628.00 7% 1 -0.95%

Latin America Foods $ 5,703.00 13% $ 904.00 10% 1 -3.26%

PepsiCo Americas Beverages $ 10,116.00 23% $ 2,172.00 24% 0.8 -7.51%

Europe $ 6,727.00 16% $ 932.00 10% 0.4 -2.38%

Asia, Middle East & Africa $ 453800 10.6% $ 716.00 8% 0.3 8.97%

PepsiCo India $ 104000 2.4% 430.00 5% 0.2 8.1%

Total $ 43,232.00 100% $ 8,610.00 100%

PEPSICO INDIA

Alternative Strategies IE BCG COUNT

Forward Integration 1 1 2

Backward Integration 1 1 2

Horizontal Integration 1 1 2

Market Penetration 1 1 2

Market Development 1 1 2

Product Development 1 1 2

Related Divesiifcation 1 1

Un Related Diversification 1 1

Horizontal Diversification 1 1

Joint Venture 1 1

Retrenchment 1 1

Divesture 1 1

Liquidation 1 1

Area of Objectives Measure of Target Time ExpectationPrimary

Responsibility

Customers      

Customer Satisfaction Customer Surveys Quarterly HR

Employees      

Improve efficiency Increase in Production Bi-annually OperationsOffer employee

trainingsSurveys to measure

efficiencyYearly HR

CSR      

Eco-friendly company

Increased usage of recyclable bottles

Achieving positive water balance

Yearly CEO

Operations      

InnovationNew product developmentAcquisition of new brands

Yearly CEO

Financial      

Reduce cost of production &

increase profitabilityIncome statement Quarterly CFO

Launched slew of indigenous products - such as Aliva, Nimbooz, Kurkure

Used Idea and technology of indigenous products in other markets - eg Nimbooz used to launch a Hibiscus-based drink in Egypt

Used India as a low-cost high-quality benchmark for other PepsiCo regions

Product development and related diversification Strategic Alliance with farmer in Punjab and

other states

Customizing the Supply Chain Strategies ranging from sourcing, procurement and distribution

Market development is a strategy that PepsiCo should apply by expanding in rural areas which have not yet been tapped

Use forward integration to acquire smaller companies in domestic market to increase their market share

Innovative and Captive Advertising build a stronger brand than Coke

Develop a healthier more eco-friendly beverage brand Further Customise its food and beverage products to

suit the requirements of the Indian market.