PEPSI –THE FLAGSHIP PRODUCT

The recipe for Pepsi (the soft drink),

was first developed in the 1880s by a

pharmacist and industrialist from New

Bern, North Carolina, named Caleb

Bradham—who called it "Pepsi-Cola"

in 1898. As the cola developed in

popularity, he created the Pepsi-Cola

Company in 1902 and registered a

patent for his recipe in 1903.

ORIGIN

Charles Guth purchased the trademark and

syrup recipe. He himself owned a syrup

manufacturing unit in Baltimore.

He also owned a candy unit called ‘Loft’. He

used Loft’s labs and reformulated Pepsi’s

formula. After winning a lawsuit against Loft’s

shareholders, Guth absorbed Pepsi into Loft

and rebranded it as Pepsi-Cola. Pepsi cola

then launched new products such as Diet

Pepsi and Mountain Dew.

1893: Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drink concoctions.

1898:One of Caleb's formulations, known as "Brad's Drink," is renamed "Pepsi-Cola" on August 28, 1898. Pepsi-Cola receives its first logo.

1902: Bradham applies for a trademark with the U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola Company.

1905:Pepsi-Cola's first bottling franchises are established in Charlotte and Durham,North Carolina. Pepsi receives its new logo.

1923:Pepsi-Cola was bankrupt. Pepsi-Cola trademark sold to Craven Holdings Corporation.

PEPSICO INTERNATIONAL :HISTORY OF PEPSICO

1931:Pepsi-Cola Company was declared bankrupt for the second time and bought by Loft Incorporation.

1934:Pepsi-Cola drink was a hit and to attract even more sales, the company begins selling its 12-ounce drink for five cents.

1958:Pepsi continued to expand, and was now available in 120 countries.

1963:The 12-ounce bottle gives way to the 16-ounce size. Twelve-ounce Pepsi cans are first introduced to the military to transport soft drinks allover the world.

1965:Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and Pepsi-Cola merge, forming PepsiCo, Inc.

1970:Pepsi introduces the industry's first two-liter bottles. Pepsi is also the first company to respond to consumer preference with light-weigh, recyclable, plastic bottles.

1991:Pepsi introduces the first beverage bottles containing recycled polyethylene terephthalate (or PET) into the marketplace. The development marks the first time recycled plastic is used in direct contact with food in packaging.

1992:Pepsi-Cola and Lipton Tea Partnership is formed.

1998:PepsiCo acquires Tropicana Products from Seagram Company Ltd.,the biggest acquisition ever undertakenbyPepsiCo.

2001:PepsiCo merged with the Quaker Oats Company.

BOARD OF DIRECTORS

Victor J. Dzau, M.D. , Ian M. Cook, Sharon Percy Rockefeller , Daniel Vasella, M.D. , Dina Dublon , Ray L. Hunt , James J. Schiro , Shona L. Brown , Shona L. Brown , Lloyd G. Trotter , Indra k. Nooyi , Alberto Weisser , Alberto Ibarguen

LEADERS OF PEPSICO

Indra Nooyichairman/CEO, Pepsico

John ComptonPresident, Pepsico

Brian CornellCEO, Pepsico Am. Foods

Albert P. CareyCEO, Pepsico Am. Beverages

Zein AbdullaCEO, Pepsico Europe

Sadd Abdul-LatifCEO, Pepsico Asia, Middle

East, Africa

Indra Krishnamurthy Nooyi Nooyi joined PepsiCo in 1994 and

was named president and CFO in 2001

Since she started , the company's

annual revenues have risen to 72%

Net profit more than doubled, to $5.6 billion in

2006

She was named the CEO of PepsiCo in 2006

Currently she is ranked as the 10th most powerful

woman in the world

ORGANIZATION STRUCTURE

Pepsico

PepsiCo Americas Foods

(PAF)

Frito-Lay North America (FLNA)

Quaker Foods North America

(QFNA)

Latin America food (LAF)

PepsiCo Americas

Beverages (PAB)

Pepsico International (PI)

EuropePepsiCo Asia, Middle East & Africa (AMEA)

PRODUCTS OF PEPSICO

Pepsi-cola brands

Frito-Lay brands

Tropicana

Quaker brands &

Gatorade brands

PEPSI-COLA BRANDS

CARBONATED BEVERAGES:

▪ Pepsi

▪ Mirinda-orange

▪ Mountain dew

▪ Mountain lemon

▪ 7-up

▪ Soda water(Lehar)

NON-CARBONATED BEVERAGES:

▪ Slice/slice new

▪ 7-up nimbooz

PACKAGED DRINKING WATER

▪ Aquafina

FRITO LAY

Frito-Lay merged with Pepsi-Cola in 1965

Frito-Lay brands account for 59% of the U.S. snack chip industry

Cheetos snacks

Kurkure

Lays potato chips

Lehar

TROPICANA

PepsiCo acquired Tropicana in 1998

Tropicana known for its fruit juices

Quaker & Gatorade

PepsiCo merged with The Quaker Oats Company in 2001

Quaker Oatmeal, Mother's Natural Foods, Quaker Toasted Oatmeal, Quaker Corn Bran, Quaker Oat Bran, Quaker Puffed Rice, Quaker Puffed Wheat

Gatorade is known for sport’s drink

Marketing Strategies

Initial Marketing Strategy

Walter Mack , President of

Pepsi Cola tapped African

American market.

Mack launched new

campaigns such as “Leaders

in their field” showing Blacks

in a positive light

Used Racism as a selling

point to increase sales.

Marketing- Early 19s to 20s

1930-1970 Promotion through beauty pageants, sports, jingles and ads

In 1975, Pepsi introduced the Pepsi Challenge marketing campaign

Change in logo,slogan & packaging to imbibe New spirit in Pepsico products

Launch of highly successful Pepsi Stuff campaign in 1996

Country specific advertising using brand ambassador from different spheres

Marketing Strategy – Early 20s to 2014

Categorization of product as health and fun

Adhering to 4 Ps and 5 Cs of marketing

Creation of customer value

Responsible Marketing

Change is Constant

SUPPLY CHAIN MANAGEMENT

CURRENT MARKET SCENARIO

The $65-billion PepsiCo has earmarked an investment of Rs 33,000

crore ( $5.5 billion) for India till 2020.

PepsiCo's investment comes a year after its rival Coca-Cola announced

plans to devote $5 billion to build capacity here.

It's now looking at launching a new category of convergence products,

which could be a mix or a cross of cereals and milk or juices

Many in the industry say PepsiCo's Rs 160-crore IPL spend for the year

was too much to begin with. Coca-Cola India was not even present for the

bidding for this year.

A source in a leading executive search firm says PepsiCo has poor

management rather than lack of leadership talent.

GROSS PROFIT : $37.84 billion

CSR ACTIVITIES

SWOT ANALYSIS STRENGTH:

• Long history in cola market and strong global

image

• Brand diversification

• CSR projects through PepsiCo Foundation.

• Competency in mergers and acquisitions• Successful marketing and advertising campaign

WEAKNESSES:

• Overdependence on Wal-Mart

• Unavailability of various demanded flavors like

Mountain Dew & Mirinda Lemon

• Much weaker brand awareness and market share

in the world beverage market compared to Coca-

Cola

OPPORTUNITIES:

• Opportunities in international market

• Bottled water consumption growth

• Company has brand equity in the eyes of

customers, so its new products can easily

penetrates in the market

THREAT

• Strong competitors

• Change in customer taste and preferences

• Restrictions made by Govt. agencies that soft

drinks are harmful &non-nutritive

COMPETITORS

▪ Coca-Cola- No.1 beverage company

▪ Mondelez International(Kraft Foods)

▪ Dr. Pepper Snapple Group- DPS is the #3 soda business in North America after #1 Coke and #2 Pepsi.

▪ Nestle a major competitor

Nikhil Ahlawat 2014175 Oindrila Ghosh 2014185 Pooja Gupta 2014195 Pritam Pandey 2014205 Rahul Parate 2014216