PepsiCo , LTD
PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquarter is in , New York. PepsiCo has interests in the manufacturing,
marketing, and distribution of snacks, beverages, and other products. company’s
products are distributed across more than 200 countries, resulting in
$43.3 billion Based on net revenue, PepsiCo is the second largest food and
beverage business in the world. Indra Krishnamurthy Nooyi has been the chief executive
of PepsiCo since 2006. Approximately 274,000 employees are working
Pepsi was first introduced in United States, in 1893 by Caleb Bradham.
It was renamed Pepsi-Cola in 1898
In 1909, automobile race pioneer Barney Oldfield was the first celebrity to
In 1926, Pepsi received its first logo redesign since
the original design of 1905. In 1929, the logo was changed again.
In their early stages pepsi faces many problems like
bankruptcy and Pepsi’s assets were purchased by Charles Guth, the President of Loft, Inc.
mission of pepsi
mission of pepsi is to be the world’s best consumer products company of foods
and beverages and provide
consumers with delicious, affordable, suitable snacks and beverages. Pepsi seek to produce financial
rewards to investors as they provide opportunities for growth to their
employees. In everything pepsi do, they strive for honesty, objectivity and
of pepsi is to work for benefit of society, and a commitment to build
shareholder value and to deliver top financial performance to their shareholders and to satisfy their customers.
During setting their price pepsi
focuse on two main aspects regarding their price.
What would the
demand of their product in market
What is the
price of their competitor’product.
Pepsi focuses on that the price of our product should not be too
high or too low than the price of their competitors. Otherwise their consumers
switch the brand due to their high prices of the product. Pepsi also took a
survey to collect the information about their product as well as their products
demand in market. They set their price by comparing them with their competitors.
Pepsi basically focuses on their quantity not on their quality. Therefore the
sale of coca cola is very high as compared to the pepsiCo. Price should be set
according to the product demand of public. Pepsi has one department i.e cost
and budget department which take care of the tasks related with the pricing.
It is the most important piece of
marketing. If you perform all other pieces and don’t do promotion then product
might fail. Awaring customer of a product or brand,
generating sales, and creating brand loyalty
in a way that you achieve to persuade them and let them buy your
product. They use these mediums to promote their products.
Pepsi also advertise
their product by printing the logo of pepsi on shirts of international players
of Pakistani cricket team.
To promote their product
pepsi gives different discounts and schemes occasionally to attract their
Pepsi also gives special
offers on ramzan they reduce their prices as well. They also gives different
kind of offers like scratch the code under the cap and win bike or something
which occurs occasionally . Pepsi has given its franchise to bottlers. Pepsi is
operating in Pakistan through these bottlers. Bottlers produce, distributes and
promotes the product. Pepsi has also launched its food chain in KFC They
have well groomed and employees on their counter in Super markets like
Hyperstar and Metro. They hire all famous actors and models in their
advertisements to attract customers.
SWOT analysis of Pepsi:
Pepsi demand is more than its opponents.
Company has a very well-known name and a good
reputation. It is one of the most noticeable and famous brands
in the world in the food and beverage sector.
It has large market share than its opponents.
Pepsi target the young generation, so Pepsi has more
loyal customers. It is also known as the brand of youth.
Customers are satisfied with the price of the Pepsi.
The environment of factory is very good.
Pepsi devotes a lot of budget on its advertising. It
always targets young generation through its ads.
Pepsi has a very huge distribution channel and it is
easily available everywhere. Pepsi has the best supply chain networks in the
world. Its products are available all
over the world.
Employees are also encouraged.
Pepsi offers many discounts for its customers.
Pepsi is supporting sports, musical concerts, which
keeps them in the lime light and thus increasing the brand recall.
of the Pepsi plant is in Lahore within the reach of 30-45 minutes.
Pepsi do not
give any sort of motivation or discount to its sellers.
are only target only in their promotions.
bottle’s cap is not good.
the demand of disposal bottle.
Pepsi tin pack
is not available in rural areas.
Pepsi is not
seeing many possible outlets like hotels, canteens etc.
Pepsi may start
arriving in rural areas too.
Pepsi may also
expand its business in some other possible business.
interest has increased in musical groups, cultural shows and sports have given
Pepsi an opportunity to increase its sales through them.
Coca Cola is
the main opponent of the company.
At the global
level, Pepsi has a tough competition with Coke. Coke has started its ads more
successfully to increase their demand and it is a very strong threat for the
Cola drinks are
dangerous for the health so the consciousness among the people is increasing it
is a big threat to the company. The harmful factor related with its products
can have an effect on the health conscious customers and Pepsi might lose their
is a four dimensional framework which show the multiple segments position, with
regard to its relative market share and industry sale growth rate. BCG matrix
has four component namely, Dogs, Cash Cows, Stars and Question mark.
Those segments fall into the
category of stars, which operates and compete in high sales growth industry and
have high relative market share. Fortunately, PepsiCo has many star segments,
which make sense because it is one of the world largest beverage and food
processing corporation. Pepsi, mountain dew and Tropicana juices comes in this
segment because all these products have high sales and high market shares.
Cash cows are considered to be
those segments which are operating in low industry sales growth rate and have
high market share. Lays chips and Aquafina comes in cash cow segment because
they have low sales growth and high market share
Dogs are considered to be the useless
segments of company. This segment hold the category which have low relative
market share in low sales growth industry. Pepsi max comes in such category
because pepsi max has low market share as well as low sales.
According to BCG matrix; Question
mark are those segments which, operate in high sales growth industry and have
low relative market share. Diet pepsi, Mirinda, 7UP and nimbooz comes in