Pepsico Case Study Essay

The industry in which PepsiCo produces and distributes its specialty beverages is vast and ever changing. With sales of carbonated soft drinks declining the past five years in a row, PepsiCo needed to look elsewhere to stimulate growth in its core business. PepsiCo thought it had found this growth in the alternative beverage industry. Pepsi expanded its line of beverage to include brands such as Gatorade, Propel, Frappucino, Aquafina, and SoBe. The industry, which experienced massive growth in the mid 2000’s, has seen a more recent decline in sales of 12.3% for it’s specialty beverage segment between 2008 and 2009. This

PepsiCo is one of the largest carbonated drink producers in the world, archrival Cocal-Cola. Under its soft drink brands, PepsiCo owned Pepsi, Mountain Dew, and the diet alternatives. In addition to carbonated soft drinks, PepsiCo also offers Tropicana orange, Gatorade sport drink, SoBe tea, and Aquafina water for its beverages product lines. PepsiCo also owned Frito-Lay, one of the world largest producers of snack, that offers products such as Lay’s, Dorritos, Cheetos, etc. Quaker Oats, producer of cereals and snack bars, is also a part of PepsiCo. PepsiCo offers many products in the-non alcoholic beverages and breakfast cereals industry. PepsiCo operates its own bottling and distribution facilities, and it produced roughly 50% of its sales in the United States. PepsiCo used three strategies in its annual report: colorful and large fonts of key financial numbers to demonstrate consistent financial results; easy-to-understand charts to show benefits of holding PepsiCo stocks; photos of products to show presents in global market and product growth.

PepsiCo is one of the world’s leading food and beverage companies. As a multi-national corporation, PepsiCo distributes its products in more than 200 countries and territories. PepsiCo has made it their mission to deliver top-tier financial performance while creating sustainable value for all their stakeholders. Their success derives from their global distribution, in addition to delivering for their consumers and customers, protecting the environment, sourcing with integrity, and investing in their employees. In 2015 their net revenue was over $63 billion. PepsiCo has 22 brands; each brand generates more than $1 billion in estimated annual retail sales. Some of the most popular divisions of PepsiCo include: Pepsi, Frito-Lay, Gatorade, Quaker and Tropicana. To better understand PepsiCo’s success we will analyze their role in the environment with suitability and their culture.

Today PepsiCo embraces itself with outstanding 300,000 employees worldwide. It is currently the world leader in convenient beverages, foods and snacks. It has four main branches widely referred to as the Pepsi family. These are: PepsiCo America’s beverages, PepsiCo Europe, PepsiCo America’s food and PepsiCo Asia, Middle East and Africa. Its outstanding leadership in the market has led to PepsiCo introducing more than a 100 brands under its trademark in the market and making its presence in nearly every part of the world. PepsiCo Headquarters are located in Purchase, New York (PepsiCo, 2012).

PepsiCo, a global food and beverage leader, is the second largest soft drink business in the world. Initially called ‘Brad 's Drink’, Pepsi was created in 1893 by a pharmacist named Caleb Bradham. In the 1960’s, PepsiCo was established through the merger of Pepsi-Cola and Frito-Lay. PepsiCo today is a world leader in convenient snacks, foods, and beverages, with more than 280,000 employees and revenue reaching over $60 billion (PepsiCo, n.d.).

Pepsico’s vision is to be the worlds premier consumer products company focusing on convenient foods and beverages .

From its humble beginnings as a ‘mom-and-pop’ beverage manufacturing company to its current business as a strong subsidiary of its parent corporation, the Coca-Cola Company, Glacéau has consistently maintained its position as a leading brand within the enhanced bottled water and soft drink markets.1 Coinciding with Glacéau’s decision to expand its product distribution to the entire United States in 2000, the company released a new line of refreshing beverages now known internationally as Vitaminwater.2 Since its inception, Vitaminwater has impressively become much of its own brand, now offering nearly twenty flavors that are available via commercial bottles, fountain drink stations, and Coca-Cola Freestyle machines.3 In addition to its wide variety of consumption options, Vitaminwater also has zero-calorie variations that tailor to the company’s more health-conscious consumers. The mere existence of a no-calorie alternative provides valuable insight into Glacéau’s willingness and ability to hone in on, explore, and target specific market segments that are relevant to its product line.

PepsiCo operates six global divisions, including: North America Beverages (NBA); Frito-Lay North America (FLNA); Quaker Foods North America (QFNA); Latin America; Europe Sub-Saharan Africa (ESSA); and Asia, Middle East & North Africa (AMENA). FLNA’s net revenue was about 21% of PepsiCo’s total net revenue in both 2013 and 2012. QFNA’s net revenue was about 4% of PepsiCo’s total net revenue in each of 2014, 2013 and 2012. LAF’s net revenue was about 12% of PepsiCo’s total net revenue in each of 2014, 2013 and 2012. PAB’s net revenue was about 32% of PepsiCo’s total net revenue in both 2014 and 2013, and 33% in 2012. Europe’s net revenue was about 20%, 21% and 20% of PepsiCo’s total net revenue in 2014, 2013 and 2012, respectively. AMEA’s net revenue was about 10% of PepsiCo’s total net revenue in each of 2014, 2013 and 2012.

| * PepsiCo management believed that international markets are the company’s greatest opportunity for growth. * Expected that by 2012, China and Brazil would be the two largest international markets of snacks.

PepsiCo is a large global company that has many strengths and advantages. One of Its main strengths is that its product range is diverse; this means that it doesn’t rely on a few key products or seasonal sales and isn’t significantly affected by changes in customer tastes. PepsiCo also has an extensive distribution channel

With inclusion of 22 major brands worldwide, Pepsi is one of the world’s leading food and Beverage Company with $ 22 billion retail sales annual and over $66 billion net revenue in the year 2013 alone. The portfolio provides more choices for the customers, extending to lower costs, more productivity, enhancements and trust among the masses. The brand Pepsi is world famous for initiating the carbonated soft drink and up till this moment, the brand continues to uphold the legacy of the drink its ancestors introduced in much more excitement and variation.

PepsiCo is the second most popular beverage company in the world, according to PepsiCo (2008). This company has an outstanding marketing brand name. PepsiCo sponsors numerous sporting events and has a wide variety of consumers. This product is in competition with the first popular beverage company Coke-Cola. This company evaluates every year on a strategic plan by using SWOTT analysis to manage their products to learn the internal and external factors of the marketing business.

PepsiCo is a big manufacturer, marketer and distributor of snacks, foods and beverages. Hence, company’s

New and emerging flavors, as well as the discovery of new benefits from current flavors, are driving sensory innovation and new opportunities in the positioning and promotion of standard or traditional beverages. Future Flavor Trends in Soft Drinks is a new management report published by Business Insights that provides a comprehensive review of current, new and emerging flavors in the soft drinks sector. This report presents and evaluates the role of flavor and drinks manufacturers in flavor innovation and key flavor trends, and analyzes fast growth flavors in key categories in terms of product launches. Discover the areas of opportunity in soft drinks flavors and understand how these opportunities fit into larger soft drinks industry trends with this new report...

Pepsi Company produced Pepsi-Cola product for 65 years before they diversified into the production of food items and brands (“The Pepsicola Story”). They produced chips brands like Lay’s, Doritos, Fritos, Cheetos which became popular among the children and young adults. They also produced Quaker oats (“The Pepsicola Story”). In fact, Pepsi’s largest profit or income comes from food brands (“Pepsi’s 22 Billion Dollar Brand”). Lay’s is the second most profitable brand in the Pepsi Company. In 2011, due to its popularity and consumer acceptance, Lay’s generated an income of $9 billion from sales worldwide (“Pepsi’s 22 Billion Dollar Brand”). Another food brand, Doritos, posted large profits to become the second most profitable food brand (“Pepsi’s 22 Billion Dollar Brand”). “Pepsi’s 22 Billion Dollar Brand” article reported that Doritos broke the $1 billion sales in the early 1990’s and this brand’s popularity has continued to grow at a rate of 7.25%. The Quaker Oats brand differs from the other