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Pepsi group assignment 20110918 final

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pepsico marketing management assignment


  • Boo Siew Yong
  • Leong Shyh Woei
  • Basil Dass
  • Rosalie Wong
  • Lee Chai Hong
  • Jonathan Leong

Marketing Management Group Assignment : PEPSI CO -Performance with Purpose 3. PERFORMANCE WITH PURPOSE

  • PepsiCo believes that its performance is fundamentally connected to its agenda of purpose, which represents the commitment to give back to communities as the company grows.


  • INTRODUCTION : Company Profile and Values
  • SWOT
  • PEST
  • BCG and 5 Forces
  • Product Life cycle
  • Intensive and Integrative Growth Strategies
  • Market Segmentation
  • 4Ps

Marketing Management Assignments 5. Pepsico 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."


  • To be the world's premier consumer products company focused on convenient foods and beverages.
  • Seek to produce financial rewards to investors
  • Provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate.
  • Strive for honesty, fairness and integrity

PepsiCo Mission 7. 8.

  • 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.


  • Roy C. Megargel, a Wall Street broker, bought the Pepsi trademark, business and good will from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation. In 1928, after five continuous losing years, Megargel reorganized his company as the National Pepsi-Cola Company. In 1931, U.S. District Court for Eastern District Virginia declared the National Pepsi-Cola Company bankrupt, the second bankruptcy in Pepsi-Cola history.


  • The Loft candy company acquired the National Pepsi-Cola Company. Charles G. Guth, president of Loft, commandedthe reformulation of Pepsi-Cola syrup formula. 1934 was a landmark year for Pepsi-Cola.The drink was a hit and to attract even more sales, the companybegan selling its 12-ounce drink for five cents (the same cost as six ounces of competitive colas).The 12-ounce bottle debuted, where it was an instant success. The cost savings proved irresistible to Depression-worn Americans and sales skyrocket nationally. In 1941, The New York Stock Exchange traded Pepsi's stock for the first time. In 1964, Diet Pepsi, America's first national diet soft drink, debuted. Pepsi-Cola acquired Mountain Dew from the Tip Corporation in 1964.


  • In 1965, Expansionoutside the soft drink industry began. Frito-Lay of Dallas, Texas, and Pepsi-Cola merged, forming PepsiCo, Inc. Pepsi Cola Company operates in beverages industry. Pepsi Cola international is well reputed multinational company which is doing its business in almost every country of the world. The company isregistered in New York stock exchange U.S.A.to make a better control over the business the company has given the manufacturing rights to different companies.Now these companies are producing the products on the behalf of the company by using companys trademark. To maintain their goodwill in the market the company has a strict policy of granting manufacturing rights. Pepsi Cola have standardized products all over the world (e.g. same in size, shape and quality). Thefranchises have to follow all the standardsgiven by the company.


  • The head office is situated in New York (USA) with units operating in different regions of the world. These are called Business Units and Pakistan is in MENAPak (Middle East, North America and Pakistan). The head office of MENAPak is situated in Dubai (UAE). The local head offices for each country are situated in the respective capitals.

14. 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.
  • Performance with Purpose


  • We understand that companies succeed when society succeeds, and whats good for the world is good for business. Performance with Purpose ensures that this powerful idea is woven into everything we do at PepsiCo. But equally important, it is proving to be a driver of financial performance for theirshareholders today and into the future. We continue to strikethe balance between the short term and the long term through investments inacquisitions, research and development and emerging markets.
  • Summary of Operations
  • Year 20102009
  • Total net revenue$57,838$43,23234%33%
  • Core division operating profit(b) $10,626$ 8,64723%23%
  • Core total operating profit(c)$ 9,773$ 7,85624%
  • Core earnings per share
  • attributable to PepsiCo(d)$ 4.13$ 3.7112%12%

16. SWOT MEN- Strength

  • It has a very strong Top management people withfully experiencedas their leadership- Strong corporate strategies
  • Has full capacity to train the young and their work force to be well equipped
  • Relationship with the local community is an added advantage , as they look into the development for their people as stated in their mission
  • Human Sustainability promise to encourage people to live a healthier life

17. SWOT MONEY - Strength

  • Net revenue grew 33% , 57.9 billion on year 2010
  • Coredivision operating profit rose 23%
  • Operating cash flow up 23%
  • Annual dividend was raised 7%
  • 8 billion was returned to share holder through shareholderrepurchases and dividend
  • Core EPS grew 12% on a constant currency basis


  • Invest more in research and development for more affordable and nutritional products
  • Reduction the use of water by recycling purification system, reuse 75% of water used in production
  • Incorporate use 10% of polyethylene (rPET) in soft drink containers.
  • Acquired many popular brand name product.
  • Offered extensive variety of product lines.
  • Different flavours were created tailor to the country they are sold in.
  • Towards product reformulation reduce salt, eliminate trans fat which diminish calories

SWOT MATERIAL- Strength 19.

  • 2 ndin the world as leading distributor of carbonated drink
  • Has the lead of more than 200 countries with a work force of more than 294000 workers
  • Has established its brand also by social service for example the Haiti issue , India , Africa
  • The largest player in the macro snack category
  • Strong marketing strategies ex using famous celebrity eg Tiger Wood

SWOT MARKET-Strength 20.

  • Supply chain inefficiencies that affect retailers were solved too slow paced
  • Market share was low in the soft drink industry and continued to decline
  • Expansion to new areas was slow
  • Lower sales of non carbonated beverages outside of North America

SWOT - Weakness 21.

  • The acquisition of anchor bottlers in N America and Europe, enable them to drive growth , dynamic future ,more integrated supply chain.
  • With the use of more healthy supplements and health concern , Pepsico can look into more supplement food (Shaklee ).
  • With the use of recycle water, Pepsico can start planning its operations in African thecontigent

SWOT - Opportunities 22.

  • Demand for products was high as they were well recognized
  • Consumers are leaning towards healthier foods
  • Expand further into the international market, the opportunity for growth in developed countries is greater as per capita for consumption in the snacking industry.
  • Consistent growth
  • Further research in innovations to make better-for-you snacks, and to produce sweeteners that would l
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