pepsico’s diversification strategy by anika r
TRANSCRIPT
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PepsiCo’s Diversification
Strategy in 2014Anika Rahman
ID: 53; 52D
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Business Model Canvas of PepsiCo
Key Partners Distributors Food and
beverage Manufacturers worldwide
International Food & Beverage associations
Customers Media
Companies
Key Activities Bottling Distribution Producing Marketing
Value Propositions Nutritional foods
and beverages
Customer Relationships Healthy snack
and beverage provider
Customer Segments Enterprises Young worldwide Common people Athletes
Key Resources Product Brand Employees Partner & Retail
Network
Channels Advertisements Global Sales
Cost Structure Marketing tools Designing of products Ingredients and materials
Revenue Streams Product Sales Bulk sales
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Global Organization Chart
PepsiCo
PepsiCo American
Food (PAF)
FritoLay North
America
Quaker Foods North
America
Latin America Foods
PepsiCo American Beverages
(PAB)
Pepsi America Bottling
Pepsi Bottling Group
PepsiCo Internation
al (PI)
UK and Europe
Middle East, Africa
and Asia
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Products of PepsiCo
18 Mega Brands
Each $1 Billion or more
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Pepsi Cola
Gatorade
Diet Pepsi
Doritos
Quaker Foods
7 UP
Aquafina
Tostitos
Walkers Potato Crisps
$0 $5 $10 $15 $20
PepsiCo Mega Brands: Revenue by
Product(billions)
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Milestones: Diversifications 1965: Merger of Pepsi cola and Frito Lay; Named PepsiCo Inc.
1977: Pepsi acquires Pizza Hut & Taco Bell
1986: Pepsi Cola acquires Mug Root beer
1989: PepsiCo acquires Walkers, UK
1990: Acquires Gamesa, Mexico
1991: Joint venture withUnilever tea based drinks
1994: Partnership with Starbucks Ready drink coffee
1998: Acquires Tropicana
2001: Merger with Quaker Oats
2010: Acquire Wimm-Bill-Dann, Russia
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Financial Highlights (2014)
2004 2005 2006 2007 2008 2009 2010 2011 2012 20130
10000
20000
30000
40000
50000
60000
70000
Continuous Increase in Net Revenue (million)
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Financial Growth ( Division-wise) in 2014
21%
4%
13%
32%
21%
10%Frito-Lay North AmericaQuaker Foods North AmericaLatin Americas FoodsPepsiCo America BeveragesEuroPeAsia, Middle East, Africa
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Competitor Analysis
PepsiCo
Dr Pepper
Coca cola
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Competitor Analysis: Global Ranking in 2014
#2
#1
#12
Source: Bevindustry.com
41%
29%
31%
Coca-ColaPepsiCoOthers
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SWOT analysis
Strength
• Extensive distribution channel
• Proactive marketing campaigns
Weakness
• Low price
• Weak brand awareness
Opportunities
• Increasing demand for healthy foods
Threats
• Change in customer taste
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PEST Analysis
Following the regulations and
policies of different markets
Expensive labour in
some countries
Advertising based on
understanding the local society
Advanced techniques applied in
manufacturing
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Planet
People
Profit
Triple Bottom Line
Competitive Advantage
People: Food and beverage to wide range of customersProfit: Continuous financial growth Planet: Maintaining sustainable environment
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Key Takeaways Strategic fits between the operations of new acquisitions and its other businesses' has been maintained
Achieving the greatest possible economies of scale
Shared market research information among divisions to develop new product
Synergies among its business units generated approximately $ I billion annually in productivity
Built value to their shareholders by providing highest dividend
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Thank You!