ISMS Academy for Advance Learning Pune Maharashtra - India

Marketing Research on PepsiCoMarch 9, 2012

Sanjay Kumar

Statement of Authenticity I certify that the work submitted in regard to this assignment is my own and wherever the works of others have been used to support my work, the credit has been dully acknowledged.

Student Email: Kumarsanjay.isms@gmail.com

Date: March 1, 2012

Research L01, L02

Professional Development for Strategic ManagersExtended Diploma in Strategic Management & LeadershipISMS Academy for Advance Learning, Pune Maharashtra - India Table of contents

Sl. No 1 2 3 4 5 Executive Summary Introduction Research question

Particulars -----------

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Explain the factors that contribute to the process of successful research question selection.

Objective

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Professional Development for Strategic ManagersExtended Diploma in Strategic Management & LeadershipISMS Academy for Advance Learning, Pune Maharashtra - India Executive Summary:

Research Pepsi Co ltd. Link:- www.pepsico.com Type:- public Type of industry:-Foods beverages Founder:-North Carolina, united state of America 1965 Founder:-Donald Kendall, Herman lay Headquarter:-New York, united states Areas served:-World wide Total Employees:- 294,000 CEO:-Ingra Noyil Net Income in 2010:-us $ 6.338 billion Divisions:-PepsiCo America Foods, PepsiCo America beverages, PepsiCo Europe, Asia, Middle East & Africa.

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Professional Development for Strategic ManagersExtended Diploma in Strategic Management & LeadershipISMS Academy for Advance Learning, Pune Maharashtra - India

Introduction

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Professional Development for Strategic ManagersExtended Diploma in Strategic Management & LeadershipISMS Academy for Advance Learning, Pune Maharashtra - India

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Professional Development for Strategic ManagersExtended Diploma in Strategic Management & LeadershipISMS Academy for Advance Learning, Pune Maharashtra - India

Objectives: To find out marketing strategy of Pepsi. 2. 3. 4. 5. 6. To analyze the SWOT analysis of Pepsi. To know about customer value of Pepsi. To know about customer perception towards Pepsi brand image To know about customer satisfaction Impact of market strategy on customer

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Professional Development for Strategic ManagersExtended Diploma in Strategic Management & LeadershipISMS Academy for Advance Learning, Pune Maharashtra - India Literature review: In this we can see the how much data is relevant to our research topic. We can see the credibility of data and critical review of data. We check the importance of data. My research topic on Pepsi co, how many countries company is operated. Turnover of the company. How many products of the company. Which strategy they followed etc.

Company Perspectives

PepsiCo's overall mission is to increase the value of our shareholder's investment. We do this through sales growth, cost controls and wise investment of resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.

Key Dates:

1898: Pharmacist Caleb D. Brad ham begins selling a cola beverage called Pepsi-Cola. 1905: Brad ham begins establishing a network of bottling franchises. 1923: Brad ham's company goes bankrupt. 1928: Roy C. Mega gel reorganizes the firm as the National Pepsi-Cola Company. 1931: Company again goes bankrupt and is resurrected by the president of Loft Inc., Charles G. Guth. 1933: The size of Pepsi bottles is doubled, increasing sales dramatically. 1936: Pepsi-Cola Company becomes a subsidiary of Loft. 1939: First national radio advertising of the Pepsi brand. 1941: Loft and Pepsi-Cola merge, the new firm using the name Pepsi-Cola Company. 1964: Diet Pepsi debuts; Mountain Dew is acquired from Tip Corporation. 1965: Pepsi-Cola merges with Frito-Lay to form PepsiCo, Inc., with the two predecessors becoming divisions. 1967: Frito-Lay introduces Doritos tortilla chips to the national U.S. market. 1977: PepsiCo acquires Taco Bell. 1978: PepsiCo acquires Pizza Hut. 1981: Frito-Lay introduces Tostitos tortilla chips. 1986: The Kentucky Fried Chicken (KFC) chain is acquired. 1997: Taco Bell, Pizza Hut, and KFC are spun off into a new company called Tricon Global Restaurants. 1998: PepsiCo acquires Tropicana Products for $3.3 billion. 1999: Pepsi Bottling Group is spun off to the public, with PepsiCo retaining a 35 percent stake. 2000: PepsiCo reaches an agreement to acquire the Quaker Oats Company for $13.4 billion.

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Professional Development for Strategic ManagersExtended Diploma in Strategic Management & LeadershipISMS Academy for Advance Learning, Pune Maharashtra - India Company History: PepsiCo, Inc. is one of the world's top consumer product companies with many of the world's most important and valuable trademarks. Its Pepsi-Cola Company division is the second largest soft drink business in the world, with a 21 percent share of the carbonated soft drink market worldwide and 29 percent in the United States. Three of its brands-Pepsi-Cola, Mountain Dew, and Diet Pepsi & mashed among the top ten soft drinks in the U.S. market. The Frito-Lay Company division is by far the world leader in salty snacks, holding a 40 percent market share and an even more staggering 56 percent share of the U.S. market. In the United States, Frito-Lay is nine times the size of its nearest competitor and sells nine of the top ten snack chip brands in the supermarket channel, including Lay's, Doritos, Tostitos, Ruffles, Fritos, and Cheetos. Frito-Lay generates more than 60 percent of PepsiCo's net sales and more than two-thirds of the parent company's operating profits. The company's third division, Tropicana Products, Inc., is the world leader in juice sales and holds a dominant 41 percent of the U.S. chilled orange juice market. On a worldwide basis, PepsiCo's product portfolio includes 16 brands that generate more than $500 million in sales each year, ten of which generate more than $1 billion annually. Overall, PepsiCo garners about 35 percent of its retail sales outside the United States, with Pepsi-Cola brands marketed in about 160 countries, Frito-Lay in more than 40, and Tropicana in approximately 50. As 2001 began, PepsiCo was on the verge of adding to its food and drink empire the brands of the Quaker Oats Company, which include Gatorade sports drink, Quaker oatmeal, and Cap'n Crunch, Life, and other ready-to-eat cereals. When Caleb D. Brad ham concocted a new cola drink in the 1890s, his friends' enthusiastic response convinced him that he had created a commercially viable product. For 20 years, 'Doc' Brad ham prospered from his Pepsi-Cola sales. Eventually, he was faced with a dilemma; the crucial decision he made turned out to be the wrong one and he was forced to sell. But his successors fared no better and it was not until the end of the 1930s that Pepsi-Cola again became profitable. Seventy years later, PepsiCo, Inc. was a mammoth multinational supplier of soft drinks, juices, and snack food. PepsiCo's advance to that level was almost entirely the result of its management style and the phenomenal success of its television advertising. Turning Acquisitive in the Early 21st Century: In October 2000 Enrico, announced that he intended to vacate his position as CEO by the end of 2001 and his position as chairman by year-end 2002. Reinemund was named the heir apparent. Also that month, PepsiCo reached an agreement to acquire a majority stake in South Beach Beverage Company, maker of the SoBe brand. Popular with young consumers, the SoBe drink line featured herbal ingredients and was the fastest growing brand in the burgeoning noncarbonated alternative beverage sector. An even more tempting target soon attracted PepsiCo's attention: the powerhouse Gatorade brand owned by the Quaker Oats Company. Gatorade held an astounding 83.6 percent of the U.S. retail market for sports drinks and was the world leader in that segment with annual sales of about $2 billion. PepsiCo entered into talks with Quaker about acquiring the company for about $14 billion in stock, but by early November the two sides had failed to reach an agreement. Coca-Cola and Groupe Danone quickly came forward to discuss acquiring Quaker. Coke came exceedingly close to signing a $15.75 billion takeover agreement, but the company's board pulled the plug on the deal at the last minute. Danone soon bowed out as well. At that point, PepsiCo re entered the picture, and in early December the firm announced that it agreed to acquire Quaker Oats for $13.4 billion in stock. This appeared to be quite a coup for PepsiCo as it would not only bring on board the valuable Gatorade brand and make PepsiCo the clear leader in the fast-growing noncarbonated beverage category, it would also add Quaker's small but growing snack business, which included granola and other bars as well as rice cakes. Quaker's non-snack food brands--which included the flagship Quaker oatmeal, Life and Cap'n Crunch cereals, Rice a Roni, and Aunt Jemima syrup--did not fit as neatly into the PepsiCo portfolio but were highly profitable and could eventually be divested if desired. In conjunction with the acquisition announcement, Enrico said that upon completion of the merger, he and the head of Quaker, Robert S. Morrison, would become vice-chairmen of PepsiCo, Morrison would also remain chairman, president, and CEO of Quaker, and Reinemund would become chairman and CEO of PepsiCo, thereby accelerating the management transition. At that same time, PepsiCo's CFO, Indra Nooyi, who was the highest

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Professional Development for Strategic ManagersExtended Diploma in Strategic Management & LeadershipISMS Academy for Advance Learning, Pune Maharashtra - India ranking Indian-born woman in corporate America, would become president and CFO. It seemed likely that this new management team would take PepsiCo to new heights in the early 21st century and that the company would continue to be a more and more formidable challenger to arch-rival Coca-Cola.Competitors of Pepsi co:

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Borden Cadbury Schweppes plc Campbell Soup Company Chiquita Brands International The Coca-Cola Company ConAgra Foods Groupe Danone General Mills Golden Enterprises Keebler Foods Company Kraft Foods Nestl S.A Ocean Spray Cranberries 14. The Procter & Ga http://www.fundinguniverse.com/company-histories/PepsiCo-Inc-Company-History.html PepsiCo offers the worlds largest portfolio of billion-dollar food and beverage brands, including 18 different product lines each generating more than $1 billion in annual retail sales. PepsiCo nourishes consumers with a range of products from tasty treats to healthy eats that deliver enjoyment, nutrition, convenience as well as affordability. The group has built an expansive beverage and foods business.

Pepsi Chief Executive Officers Indra K. Nooyi Chairman of the Board, Chief Executive Officer, PepsiCo John C. Compton Chief Executive Officer, PepsiCo Americas Foods Mehmood Khan Chief Executive Officer, Global Nutrition Group and Senior Vice President, Chief Scientific Officer, PepsiCo Zein Abdalla

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Professional Development for Strategic ManagersExtended Diploma in Strategic Management & LeadershipISMS Academy for Advance Learning, Pune Maharashtra - India Chief Executive Officer, PepsiCo Europe Massimo F. dAmore Chief Executive Officer, PepsiCo Beverages Americas Larry Thompson Senior Vice President, Government Affairs, General Counsel and Secretary, PepsiCo Eric J. Foss Chief Executive Officer, Pepsi Beverages Company Saad Abdul-Latif Chief Executive Officer, PepsiCo Asia, Middle East & Africa Peter A. Bridgman Senior Vice President, Controller, PepsiCo Richard Goodman Executive Vice President, PepsiCo Global Operations Cynthia M. Trudell Senior Vice President, Chief Personnel Officer, PepsiCo Albert P. Carey President and Chief Executive Officer, Frito-Lay North America Hugh Johnston Executive Vice President, Chief Financial Officer, PepsiCo Donald M. Kendall Co-founder of PepsiCo

PepsiCo has 19 brands that generate more than $1 billion of retail sales each up from just 11 in 2000. Brands are our lifeblood we invest to sustain and improve brand equity in existing global brands while judiciously focusing on our local and regional brands. In 2010, all of our $1 billion brands grew revenues, thanks in part to our brand-building activities.

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Professional Development for Strategic ManagersExtended Diploma in Strategic Management & LeadershipISMS Academy for Advance Learning, Pune Maharashtra - India Respecting humanitys right to water and other natural resources is a priority for PepsiCo. Thats why we have invested in research, systems and facilities improvements. All of which decrease waste to landfills, create more sustainable packaging, reduce our carbon footprint, lower our energy and water use and improve the efficiency of our operations. Its also why we continue to work with global non-governmental organizations, national governments, local farmers and agronomists to pursue more sustainable growing practices, improve crop yields and support local growing collaborative. These initiatives are simply the right thing to do, and they also demonstrate PepsiCos interest in the development of the agricultural supply chain in emerging markets. To maintain a leadership position in a changing world, we must rethink how we work, implement efficient new ways to collaborate on a global scale and share operational best practices throughout our organization. Our commitment to diversity in the workforce means we understand, firsthand, what our consumers seek in local markets around the world. Equally important is investing in our associates and the communities where they live. The result of these efforts is more ``engaged and productive associates who can seize opportunities to grow the company.

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