pepsico alam word

SR.SAJJAD UL AZIZ QADRI_____________________________________________________________________________________

PepsiCo• HISTORY OF PEPSI COLA

In 1893 Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drinks. In 1898, one of Caleb's formulations, known as "Brad's Drink" a combination of carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola". On August 28, 1898, Pepsi-Cola received its first logo. In 1902, he applied for a trademark with the U.S. Patent Office, Washington D.C., and formed the first Pepsi-Cola Company. 1905, Pepsi-Cola's first bottling franchises were established in Charlotte and Durham, North Carolina. In 1906, Pepsi gets another logo change, the third in eight years. The modified script logo is created with the slogan, "The Original Pure Food Drink". In 1920, Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you". In 1923, Pepsi-Cola Company was declared bankrupt and its assets were sold to a North Carolina concern, Craven Holding Corporation, for $30,000.

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 honesty, fairness and integrity.

Proposed Mission

Our mission is to be the world's premier consumer products company focused on convenient foods and beverages through stores as well as our website. (1,2. 3,4) 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. (5,8,9) And in everything we do, we strive for honesty, fairness and integrity. (6,7)

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M. com Roll #09 MINHAJ UNIVERSITY LAHORE


Customer

Products or Services

Markets

Technology

Concern for survival, profitability, and growth

Philosophy

Self-Concept

Concern for public image

Concern for employee

Vision StatementPepsiCo'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.

Proposed VisionPepsiCo, in association with smaller brands, offers a wide variety of products from beverages to snacks at low cost.

External AssessmentOpportunities

1. Opening in market for less costly products2. Growth opportunities in developed countries as well as international nonestablished countries 3. Pepsi recently reacquired ownership of its two largest bottlers, Pepsi Bottling Group (PBG) and PepsiAmericas (PAS)4. Compete in more than one industry (non-alcoholic beverage industry, the salty or savory snack food industry, and the breakfast food industry)

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5. Growth in the carbonated drink market is the largest in Asia and Europe6. The world's demand is experiencing a growth with the sports drinks, bottled water, and energy drinks

Threats1. Fierce competition from Coca-Cola, which owns the largest piece of the market share2. The downturn in economy, which lead customers to shift away from bottles of water to tap water.3. Because of the recession, customers are finding cheaper alternatives to the national brands.4. Customers are getting more conscious and concerned about their eating habits and general health. 5. Campaign against plastic containers has impacted the sale of bottled beverages 6. Highly dependent on supplies of clean water, to prevent contamination

CPM

Critical Success factors Weights Rating Weighted Score Rating Weighted Score Rating Weighted Score0.0 to 1.0 1 to 4 1 to 4 1 to 4

0 0 0Advertising 0.12 4 0.48 4 0.48 3 0.36Price Competitiveness 0.11 3 0.33 3 0.33 2 0.22Product Diversity 0.1 4 0.4 4 0.4 3 0.3Market Share 0.1 3 0.3 4 0.4 2 0.2Company Image 0.12 3 0.36 4 0.48 3 0.36Customer Loyalty 0.12 4 0.48 4 0.48 3 0.36Financial Position 0.09 3 0.27 3 0.27 2 0.18Sales Distrubution 0.08 2 0.16 4 0.32 4 0.32Product Quality 0.09 4 0.36 4 0.36 3 0.27Global Expansion 0.07 3 0.21 4 0.28 3 0.21Totals 1 3.35 3.8 2.78

Dr. Pepper Snapple GroupPepsi Co. Coca Cola

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EFE

Key External Factors Weights RatingWeighted

Score

0.0 to 1.0 1 to 4

Opening in market for less costly products 0.05 2 0.1

Growth opportunities in developed countries as well as international

unestablished countries 0.08 3 0.24

Pepsi recently reacquired ownership of its two largest bottlers, Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) 0.05 1 0.05

Compete in more than one industry (non-alcoholic beverage industry, the salty or savory snack food industry, and the breakfast food industry) 0.13 4 0.52

Growth in the carbonated drink market is the largest in Asia and

Europe 0.09 3 0.27

The world's demand is experiencing a growth with the sports drinks,

bottled water, and energy drinks. 0.13 4 0.52

Threats 0

Fierce competition from Coca-Cola, which owns the largest piece of

the market share 0.12 4 0.48

The downturn in economy, which lead customers to shift away from

bottles of water to tap water. 0.05 2 0.1

Because of the recession, customers are finding cheaper alternatives

to the national brands. 0.1 3 0.3

Customers are getting more conscious and concerned about their

eating habits and general health. 0.09 4 0.36

Campaign against plastic containers has impacted the sale of bottled

beverages 0.05 2 0.1

Highly dependent on supplies of clean water, to prevent

contamination 0.06 2 0.12

Totals 1 3.16

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Internal Assessment

Strengths1. Strong brand equity

2. Well-known worldwide

3. Innovating company

4. Ethical, socially responsible, and sustainable company

5. Strong advertising company with more than 40 slogans and songs

6. PepsiCo as the largest part of the market share after Coca-Cola

7. PepsiCo owns a wide variety of smaller brands which able them to offer a large product range from beverages to snacks

Weaknesses1.PepsiCo production is really expansive because of the need to constantly develop new products to meet the changing customers demands

2. PepsiCo is experiencing a lack of focus towards Pepsi sodas

3. PepsiCo is experiencing product recalls

4. PepsiCo has a low employment productivity and a weak distribution

5. PepsiCo depends too much on the US market

6. PepsiCo is far behind Coca-Cola in the international market

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IFE

Key Internal Factors Weights RatingWeighted

Score0.0 to 1.0 1, 2, 3 or 4

Internal Strengths 3 or 4

Strong brand equity 0.12 4 0.48

Well known worldwide 0.06 4 0.24

PepsiCo owns a wide variety of smaller brands which able them to offer a large product range 0.08 4 0.32

Innovating company 0.08 4 0.32

Ethical, socially responsible, and sustainable company 0.05 3 0.15

Strong advertising company with more than 40 slogans and songs 0.07 3 0.21

PepsiCo as the largest part of the market share after Coca-Cola 0.06 4 0.24Internal Weaknesses 1 or 2

PepsiCo production is really expensive because of the need to constantly develop new products to meet the changing costumers demands 0.05 2 0.1

PepsiCo is experiencing a lack of focus towards Pepsi 0.06 2 0.12

PepsiCo is experiencing product recalls 0.12 1 0.12

PepsiCo has low employment productivity and a weak distribution 0.08 1 0.08

PepsiCo depends too much on the US market 0.08 2 0.16

PepsiCo is far behind Coca-Cola in the international market 0.09 2 0.18Totals 1 2.72

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SWOT Matrix

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SO Strategies ST Strategies WO Strategies WT Strategies


BCG

Division Revenue % Revenue Profit Profit % Market Share Market Growth

Frito-Lay North America $ 13,224.00 31% $ 3,258.00 38% 1

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


SO Strategies ST Strategies WO Strategies WT Strategies


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

PepsiCo Americas Beverages $ 10,116.00 23% $ 2,172.00 25% 0.8

Europe $ 6,727.00 16% $ 932.00 11% 0.4

Asia, Middle East & Africa $ 5,578.00 13% $ 716.00 8% 0.3

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

BCG

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SPACE Matrix

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SR.SAJJAD UL AZIZ QADRI_____________________________________________________________________________________Financial Strength rating is 1 (worst) to 6 (best) Ratings

1 4.02 5.03 4.04 4.0

Industry Strength rating is 1 (worst) to 6 (best) FS Total 17.01 6.02 5.03 4.04 5.0

Environmental Stability rating is -1 (best) to -6 (worst) IS Total 20.01 -1.02 -1.03 -1.04 -1.0

Competitive advantage rating is -1 (best) to -6 (worst) ES Total -4.01 -2.02 -3.03 -3.04 -3.07

CS total -11.0

Product qualityCustomer loyaltyCotrol over suppliers and distributors

Demand variablityPrice range from competing productsBarriers to entryPrice elasticity of demand

Ease of entryGrowth potentialFinancial stabilityProfit potential

Market share

Cash FlowLiquidity

Return on investmentEarnings per share

SPACE Graph

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SPACE Graph

1 2 3 4 5 6

1

2

3

4

5

6

6 5 4 3 2


IE Matrix

Matrix AnalysisAlternative Strategies IE SPACE BCG GRAND CountForward Integration x x x 3Backward Integration x x x 3Horizontal Integration x x x 3Market Penetration x x x 3Market Development x x x 3Product Development x x x 3Related Diversification x x x 3Unrelated Diversification x x x 3Horizontal Diversification x x 2J oint Venture x x 2Retrenchement x 1Divesture x 1Liquidation x 1

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The EFETotal Weighted Scores

High 3.0 to 4.0

Medium 2.0 to 2.99

Low 1.0 to 1.99

Strong 3.0 to 4.0

Weak 1.0 to 1.99

The IFE Total Weighted scoresAverage 2.0

to 2.99

PepsiCo

IE Matrix


QSPM

Key factors Weight AS TAS AS TAS

External 1 to 4 1 to 4Opportunities:

Provide less costly products 0.05 1 3 0.15

Improve presence in established countries and increase international market where they are not already settled 0.08 3 0.24 4 0.32

Pepsi recently reacquired ownership of its two largest bottlers, Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) 0.05 0 0

Compete in more than one industry (non-alcoholic beverage industry, the salty or savory snack food industry, and the breakfast food industry) 0.13 4 0.52 3 0.39

Growth in the carbonated drink market is the largest in Asia and Europe 0.09 1 0.09 4 0.36

The world's demand is experiencing a growth with the sports drinks, bottled water, and energy drinks. 0.13 4 0.52 4 0.52Threats: 0 0

Fierce competition from Coca-Cola, which owns the largest piece of the market share 0.12 3 0.36 3 0.36

The downturn in economy, which lead customers to shift away from bottles of water to tap water. 0.05 1 0.05 4 0.2

Because of the recession, customers are finding cheaper alternatives to the national brands. 0.1 1 0.1 4 0.4

Customers are getting more conscious and concerned about their eating habits and general health. 0.09 4 0.36 0

Campaign against plastic containers has impacted the sale of bottled beverages 0.05 0 1 0.05

Highly dependent on supplies of clean water, to prevent contamination 0.06 0 0

1

Innovate products with

healthier alternative

Improve international

segment

Internal 1 to 4 1 to 4Strengths

Strong brand equity 0.12 4 0.48 4 0.48

Well known worldwide 0.06 3 0.18 4 0.24

PepsiCo owns a wide variety of smaller brands which able them to offer a large product range from beverages to snacks 0.08 4 0.32 2 0.16

Innovating company 0.08 4 0.32 4 0.32

Ethical, socially responsible, and sustainable company 0.05 2 0.1 3 0.15

Strong advertising company with more than 40 slogans and songs 0.07 3 0.21 3 0.21

PepsiCo as the largest part of the market share after Coca-Cola 0.06 4 0.24 3 0.18Weaknesses: 0 0

PepsiCo production is really expensive because of the need to constantly develop new products to meet the changing costumers demands 0.05 1 0.05 2 0.1

PepsiCo is experiencing a lack of focus towards Pepsi 0.06 0 0

PepsiCo is experiencing product recalls 0.12 1 0.12 1 0.12

PepsiCo has low employment productivity and a weak distribution 0.08 1 0.08 1 0.08

PepsiCo depends too much on the US market 0.08 2 0.16 1 0.08

PepsiCo is far behind Coca-Cola in the international market 0.09 2 0.18 1 0.09

1

4.68 4.96

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Strategic Plan

Strategy Market development is a strategy that PepsiCo should apply by expanding in countries

that not already established

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

Product development and related diversification should also be considered while trying to produce and distribute healthier products

Porter's five forces analysis

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Recommendations1. Products decisions : add in Soya drink and Ice cream to increase their product portfolio

and sales revenue

2. Product Decision :Produce a range of Healthy, i.e. Sugar free or diet Alternatives of different brands.

3. Promotion their products through Effecting Marketing and Advertising strategies.

4. Improving production efficiencies through optimal outsourcing of production and integration

5. Market Positioning : The company should modify its advertising strategy and educate the customers about its age-old existence and enhance its brand image. This will appeal to the target customers of middle and older age groups apart from the younger generation in which PEPSI has a good hold.

6. Placing Strategy: Rural market being a very potential segment needs very quick and prompt efforts to be taken to capture this high volume market.

7. Pricing : Soft drink is still considered a treat virtually a luxury, so it possible company should cut down its price especially of cans.

8. PR: A company may create favorable impression among the youth if they sponsors small events like college festivals, university programs, school functions, fashion shows, quiz programs etc.

CONCLUSION

As a result, market segmentation is important to companies so that firms can easily enter the market and have a potential growth. If PepsiCo does not target young population in the beginning, it is hard to occupy the market and compete with its competitor which is Coca-cola. Pepsi can continue hire popular celebrities to advertise their products in different market such as David Beckham attracts sport enthusiast and Jay Chou

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attracts youths where this really can boom the sales. Moreover, Pepsi can come out with as many new innovative products as they can depend on countries’ cultures. With this target, Pepsi can enter many countries’ market to gain more profits

Sources Sajjad ul Aziz

"2010 Will be Changing for PepsiCo." Medill Reports Chicago. N.p., n.d. Web. 20 Apr. 2012. <news.medill.northwestern.edu/chicago/news.aspx?id=157896 >.

"Coke vs Pepsi." Coke vs Pepsi. N.p., n.d. Web. 25 Apr. 2012. <http://cokevspepsi.net/>.

" Google Image Result for http://41minds.files.wordpress.com/2011/04/bcggrowthsharematrix.png."Google. N.p., n.d. Web. 22 Apr. 2012. <http://www.google.com/imgres?hl=en&sa=X&rlz=1C1LENN_enUS472US472&biw=1366&bih=677&tbm=isch&prmd=imvnsa&tbnid=VtCOuMODso-oZM:&imgrefurl=http://41minds.com/tag/bcg-matrix/&docid=JDNK6PE50NlOOM&imgur

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"PepsiCo 2009 annual report." PepsiCo. N.p., n.d. Web. 19 Apr. 2012. <www.pepsico.com/Download/PEPSICO_AR.pdf>.

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"PepsiCo Brands | PepsiCo.com." PepsiCo Home | PepsiCo.com. N.p., n.d. Web. 24 Apr. 2012. <http://www.pepsico.com/Brands.html>.

"PepsiCo Investors | PepsiCo.com." PepsiCo Home | PepsiCo.com. N.p., n.d. Web. 25 Apr. 2012. <http://www.pepsico.com/Investors.html>.

"PepsiCo MORE | PepsiCo.com." PepsiCo Home | PepsiCo.com. N.p., n.d. Web. 25 Apr. 2012. <http://www.pepsico.com/Global-Sites/More.html>.

Reppo, Ilya, and Michelle Yan. "PepsiCo Valuation." Leeds-faculty Colorado. N.p., n.d. Web. 14 Apr. 2012. <leeds-faculty.colorado.edu/madigan/4820/Presentations%202010/PepsiCo%20Report.pdf>.

segment. "PepsiCo Valuation." Google. N.p., n.d. Web. 23 Apr. 2012. <http://webcache.googleusercontent.com/search?q=cache:egHCTRx43AYJ:leeds-faculty.colorado.edu/madigan/4820/Presentations%25202010/PepsiCo%2520Report.pdf+PepsiCo+net+revenue+comparative+2007-2009&hl=en&gl=us>

Steve. " Global Cola: 10 Pepsi-Cola Flavors You Can’t Get Here | WebUrbanist ." WebUrbanist | From Urban Art & 3D Graffiti to Abandoned Cities . N.p., n.d. Web. 25 Apr. 2012. <http://weburbanist.com/2010/05/02/global-cola-10-pepsi-cola-flavors-you-cant-get-here/>.

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pepsico alam word

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