PEPSICO

Group - 4 Ankur Pandit (206) Jayantwin Katia (224) Meenakshi Shekhar(232)

Mohnish Karjodkar(234)
Mradul Sharma(235) Raminder Singh Sidhu(238)

About PepsiCo
PepsiCo is a world leader in convenience foods and

beverages. Its world renowned brands are available in nearly 200 countries and territories
PepsiCo entered India in 1989 and has grown to become

the countrys largest selling food and beverage companies

PepsiCo India and its partners have invested more than

U.S.$700 million since the company was established in the country in 1989

Mission: To be the world's premier consumer

products company focused on convenient foods and beverages. To produce healthy financial rewards to investors & provide opportunities for growth and enrichment to our employees, business partners and the communities in which we operate & in everything we do, we strive for honesty, fairness and integrity

Vision: To inspire the moments of optimism

through our brands and our actions. To continually improve all aspects of the world in which we operate environment, social, economic - creating a better tomorrow than today.

Brands and Products

Organization Configuration
Diversified Form

Large firm with global presence, having multiple products Each of the sub-divisions acts like an independent entity

that works towards fulfilling the companys stated goals Horizontal linkages between the divisions exist that aid in information sharing across the divisions

Organization Structure
Pre-November 2007 PAB and PAF reported as

PepsiCo North America PepsiCo Europe and AMEA reported as PepsiCo international
Post-November 2007 PAB and PAF report as

individual entities
Current Scenario PepsiCo Europe and

AMEA report as individual entities

Organization Structure
Global Matrix Structure

PepsiCo India Structure

Business Unit CEO/MD

Market Unit General Manager

Marketing Executive Director

Human Resources Executive Director

Operations Executive Director

Legal Executive Director

Finance Executive Director

Innovation General Manager

Business Units Each Business Unit (BU) is headed by a Business Unit General

Manager (BUGM). There are several Market Units under a Business Unit like North India Market Unit (NOMU), East India Market Unit (EAMU) etc. Executive Directors (ED) for each functional unit report to the BUGM.

Reporting Structure

Unit Manager

Territory Development Manager

Marketing Development Manager

Assistant Sales & Distribution Manager Marketing Development Co-ordination

Development Manager

Customer Executive

Sales Executive

Sales and Marketing Department

Sales Trainee

Porters Five Forces Analysis

Strategy

Buyer Supplier New Entrants Substitutes

MODERATE Large amount of volume bought by retailers Growing discount stores , consolidation of grocery stores, buyer power increasing Low bargaining power of end consumers High brand loyalty
LOW Bottler's are locked into contracts Sugar , bottles and cans are homogenous products, can be obtained from many sources Pepsi sales account for a large percentage of the suppliers total revenues LOW Established Brand Barriers to entry are relatively high High advertsing and marketing cost

LOW Pepsi Co products are unique High brand loyalty One category that threatens is that of new age health and energy drinks HIGH Intense rivalry between Coke and Pepsi Leads to a downward pressure on prices High investments in advertising so as to maintain brand loyalty Fight over prices, suppliers, spokespeople, retailspace and most importantly, the taste buds of consumers

Internal Rivalry

Strategy
Miles and Snow : Prospector Strategy
PepsiCo interacts with a highly dynamic and growing environment Innovation is of key importance

Continuously improves its product line Innovative products such as Propel zero calorie enhanced water beverage, Quaker oats

Creative marketing campaigns such as the choose your Lays flavor , acquisitions of bottlers and competitors

Mergers and Acquisitions

Acquisitions 1988- PepsiCo acquired Tropicana 2009- Completed acquisition of Pepsi Bottling Group and PepsiAmericas 2011- Acquisition of Wimm-Bill-Dann (WMD), Russias largest F&B company Joint Ventures 1993- PepsiCo and Unilever formed a Joint Venture resulting in Pepsi Lipton 1994- PepsiCo and Starbucks formed the North American Coffee partnership NACP

Mergers 1965- Pepsi merged with Frito Lays and formed PepsiCo inc. 2001- PepsiCo merged with The Quaker- Oats company.

Environment Analysis
Task Environment
Raw Material
Subject to the harvest of the raw material

Market Sector
Highly competitive markets Satisfy the requirements and needs of the customers

Human Resource Sector

The company is seeing an attrition rate of over 20 per cent Launched an initiative under the name 'I Care' which is specially designed for its sales force Launched a new Programme called 'Infinite Possibilities to retain employees

International Sector
PepsiCo has made significant investments in the emerging market Vulnerable to any instability in these markets More than 45 percent of its revenue in 2010 came from outside United States

General Environment
Demographic Influence

Target customers for PepsiCo is young adults Attractive site targeted at entertaining teens and young people
Government Sector Subject to various laws such as food and drug laws, advertising and deceptive marketing practices regulations Subject to environmental laws, such as laws relating to the regulation of water rights and treatment Economic Conditions Subject to cost of procurement and availability of the raw material, labour Vulnerable to variation in fuel prices Socio-Cultural Sector

Contract farming, Solid waste management Replenishing the water that it uses for its beverages is an important concern for PepsiCo
Technology Sector Introduction of cans and plastic bottles in place of glass ones has given more importance to technology State of the Art Plants and advertisements

Balanced Scorecard

Financial Measures

Net revenue grew by 33% Core division operating profit rose by 23% Core EPS which grew by 12%, Annual dividend up by 7% Share repurchases and dividends to the tune of $8 billion. 19 of PepsiCos brands generated more than $1 billion retail sales

Customer Measures

Independent bottlers - bottler funding, advertising support, new product support, and vending and cooler equipment placement Independent distributors and retailers- volume based rebates, product placement fees, promotions and displays Retail consumer incentives- coupons, price discounts and promotional offers

Learning & Growth Measures

Employees can create their own Career Development Action plan for the year Internal job portal- transparency, maximum growth opportunities MQPI- Judge managers - feedback, recognize and reward achievements

Internal business process measures

Formed the Global Nutrition group- provide Good-for-you products Use of blended rice bran oil in India, a 40 % decrease in saturated fat in products Direct seeding of rice that saved 7.8 billion litres of water in 2010

Environment framework
SIMPLE UNSTABLE COMPLEX Unstabl e Moderate Uncertaint y Uncertain PepsiCo
Customer Preferenc es

Competitive strategy

STABLE

Certain

Moderate Uncertainty

Complex

Govt legislation

Economy , Technology

Culture
Guiding Principles
Care for our customers, our consumers and the world we live in

Sell only products we can be proud of

Speak with truth and candor

Balance short term and long term

Win with diversity and inclusion

Respect others and succeed together

Insiders View
PepsiCos culture encourages initiative, risk taking and access to decision makers The casual and collegial environment is headed by senior management eager to hear the questions and ideas of their more junior colleagues PepsiCo is into diversity,

PepsiCo really wants one type of person, someone who will put their job before their family or personal life The culture is deliberately geared to churn people - the workload is extreme, your job is everything, and personal needs are frowned upon PepsiCo has instituted a number of work family programs to ease the strain of corporate life including flex-time and work at home arrangements Pepsi is a great place to make a name for yourself with a wide open career track, but only if you are prepared to make personal sacrifices

To protect Earths natural Supporting resources through innovation and our planet... more efficient use of land, energy, water and packaging in PepsiCos Achieve positive water operations. balance in water distressed areas
Use at least 10% rPET in its primary soft drink containers in the U.S., and increase its usage across the globe. Reduced weight of its packaging, reduce landfill waste volume Improve electricity utilization, fuel use intensity by 25 % by 2015.

is good for business.

Providing people with choices...

To provide people with healthy and enjoyable food and beverages.

Formed the Global Nutrition group- provide Good-for-you products Reduce saturated fat by 15% & Sugar content by 25% by 2020 Reduce sodium content in food products by 25% by 2015

To develop affordable, nutritionally relevant products for underserved and

lower-income communities. Eg. Fortified snack in Andhra Pradesh

is good for business.

To invest in its associates to help Investing them succeed and develop the in our people... skills needed to drive companys growth and create employment opportunities.
Ensure safe working conditions, improve occupational health

and safety metrics through best practices

of its employees to help them achieve high performance Eg. WorkSmart and MangeSmart series by PepsiCo India

Provide training programs to improve the skills and knowledge

OST- to improve work life balance; BOLT- Learning & Development

Best company for leadership development in India by Great Places to Work Institute

is good for business.

Supply Chain Management

Inbound Logistics

Service Operations Outbound Logistics Marketing & Sales Margin

Customer Relationship Management

Operational CRM approach Analytical CRM approach Collaborative CRM approach

E- Commerce
Refreshing the world campaign 2011

Path-Break from Traditional Marketing and CRM strategy.

PepsoCo Refreshing The W@RLD

Recommendations
Increased attention towards enhancing employee satisfaction
Persist with Human sustainability Environmental sustainability Projected as a 'youth only' brand Increased attention on emerging markets Reduce dependence on bottlers

Thank You