COMPETITOR ANALYSIS

PepsiCo Background

PepsiCo is a world leader in convenient foods and beverages, with the revenue of

$307.2 millions by 2004 and $367.1 millions by 2009 with 163,000 employees.

The company consists of Frito-Lay North America, PepsiCo Beverages North America,

PepsiCo International and Quaker Foods North America. "Pepsi cola" was started in 1898 by

“Caleb Bradham”. This was the second company introduced in soft drinks field. The pioneered

company was “Coca-Cola” which was started in 1886 in Atlanta by Dr. John S. PepsiCo is 44 years

old company. It was formed by the merge of Pepsi Cola and Frito-Lay in 1965.

Now PepsiCo brands are available in more than 200 countries in the world. The world’s

headquarters of PepsiCo is situated in New York, USA. It occupies 144 acres in the city.

In 1969, Pepsi Company introduced the modern red & white modern packing technology to

make the packs attractive. In the same year Frito-Lay introduced fungus brand onion

flavoured snacks in to the market.

In 1970, Pepsi introduced the industry’s first two liter bottles. Pepsi is the first company to

respond to consumer preference with light weight, recyclable plastic bottles used for drinks.

In 1971, Andral E.Pearson is appointed as the president of PepsiCo and he was in that

position up to his retirement 1984.

In 1972, Don Kendrall announces agreement making that PepsiCo was the first foreign

product sold in U.S.S.R. is given the exclusive rights to improve the sales of Stolichnaya

Russian Vodka in U.S.

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In 1973 & 74, PepsiCo became the first American product to be produced and sold in former

Soviet Union.

In 1975, Pepsi lite, with destructive lemon taste is introduced as an alternative to traditional

diet kolas.

In 1776, PepsiCo adopts the worldwide business code of conduct. PepsiCo became the single

largest selling soft drink brand sold in U.S super markets.

In 1979, PepsiCo started its reach and technology center in Vallah, New York, USA. This

increased sales of the company. In this year they introduced 12 packs cans.

In 1980 & 81, in these years PepsiCo food service international was formed to focus on

overseas development of restaurants, and fitness centers for the health development of the

employees of the company.

In 1982, PepsiCo introduced the caffeine free colas, first time in to the market.

In 1983, the bottler hall of fame is established to recognize the achievement and dedication

of international bottlers.

In 1984, Diet Pepsi was reformulated with 100%natural sweet, slice and diet slice are also

introduced in to the market. The “space cans” were introduced in to the market successfully.

In 1986, the largest North American transportation company “North America Van Lines

(NAVL) was merged with Pepsi to improve the distribution channels of the company. The

second plant was started in China.

In 1987, the new headquarters of PepsiCo was moved to New York, USA.

In 1988, PepsiCo is recognized along graphical lines East, West, South and central regions,

each with its own president and senior management staff.

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In 1989, Pepsi Company introduced share power stock option program for all employees

becoming the first large corporation tool award stock options through virtually all full time

employees.

In 1990, Pepsi Company was named as one of the most admired corporations by the fortune

magazine’s top 10 for the two successive years. Pepsi reentered in India with the

collaboration with “Punjab Agro Industries Corporation (PAIC)”.

In 1991, Pepsi Company was named as one of the most admired corporations by the fortune

magazine’s top 10 for the third year also.

In 1993, PepsiCo started its distribution of Lipton’s line of ready to dink tea national wide.

PepsiCo introduced Pepsi max, a soft drink with unique blend of sweeteners that delivers

maximum cola taste in a no sugar product.

In 1994, Pepsi introduced Aquafina bottled water into test market and got great success.

In 1995, Pepsi Company introduced 7up ice cola in to its product line. In the same year Lay’s

brand potato chips were launched in 20 markets of the world.

In 1996, Pepsi Company started its website WWW.pepsi.com and it started its operations

throughout the world.

In 1997, Pepsi Company announced plans to spin off its restaurants business as an

independent publicly traded company and sold its food distribution company to focus on its

core beverages and snack food business.

In 1998, Pepsi Cola celebrates 100th anniversary with first world wide Bottlers conference

held in Hawaii, the event is held during the same time as first Bottlers conference. Pepsi

Company introduced 2lit bottles in to the market.

In 1999, Aquafina became official beverage sponsor of all American Soccor Stars victory

tour. Sprite was introduced in to the market and got success.

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In 2000, Pepsi Company launched new beverages line of fruit drinks like Apple, strawberry,

peach papaya, pink lemonade, and strawberry melon grime citrus.

In 2001, Pepsi Company announced a new joint venture in Egypt combining the salt snack

operations of chip, the current market leader and tasty foods, which is owned by Pepsi

Company.

MILESTONES OF PEPSI

2000-2008 Milestones:

2000 Milestones:

Pepsi- Cola revives its “Pepsi Challenge” advertising campaign. Challenge includes Pepsi

One and Diet Coke as well as well as regular cola.

Pepsi –Cola team up with yahoo Inc., the biggest web navigation company, in a multimedia

marketing campaign aimed at teens and young adults.

Tropicana, in a joint venture with Galaxy Foods Co., introduced an icy smoothie soy milk-

and-fruit drink, made with juice, fruit puree along with soymilk and soy protein.

Aquafina brand bottled water became the best-selling brand of single-serve bottled water in

US retail channels.

Pepsistuff.com, a website for merchandise, discounts and digital music files form biggest

names in movies, music, video games. Apparel and sports is launched in joint promotional

with Yahoo.

2001 Milestones:

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Pepsi-Cola Company launched Dole single-serve juices in vending machines, coolers and

other retail outlets throughout the United States.

Pepsi-Cola’s flagship brand had the new tagline, “The joy Of Pepsi”.

Tropicana celebrated a company milestone of 300 billion fresh an orange squeezed since the

company began making country’s first ever mass distributed, not-from-concentrate juice

in1947.

Pepsi-Cola launches the bold new Mountain Dew Code Red nationwide in United Sates.

Tropicana introduced smoothies. A natural juice-based product, smoothies combine fruit

juices and non-fat yogurt into a smooth, filling drink that delivers nutrition, taste and

convenience.

Frito-Lay introduces Lay's Bistro Gourmet potato chips.

Pepsi-Cola Company introduces a "Pepsi Twist." Regular and diet versions of the crisp new

cola with lemon are entering retail outlets in selected U.S. markets.

SLAM, the orange brand Mirinda, is launched in Italy.

On August 2, PepsiCo merges with The Quaker Oats Company, creating a $25 billion food

and Beverage Company focused on the rapidly growing consumer demand for convenience.

2002 Milestones:

Aquafina debuts new line of great-tasting enhanced waters. Aquafina Essentials target active,

health-conscious adults in four lightly sweetened varieties including B-Power, Calcium+,

Daily C and Multi-V in 20-oz. bottles.

Gatorade introduced new Gatorade ICE in three flavors- Orange, Lime and Strawberry.

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Tropicana Pure Premium announced sponsorship of Disney's award-winning show The Lion

King.

Tropicana® Pure Premium® introduces 14-oz. single-serve resalable bottle you can take

with you for the on-the-go- consumers. Diet Pepsi has a new look.

"Mr. Green," a green-tinted carbonated soft drink with caffeine and ginseng, is launched

under SoBe's New Age beverage line in April.

Aquafina debuts new line of great-tasting enhanced waters. Aquafina Essentials target active,

health-conscious adults in four lightly sweetened varieties including B-Power, Calcium+,

Daily C and Multi-V in 20-oz. bottles. PepsiCo published Health and Wellness Philosophy.

Frito-Lay announces plans to introduce Lay's Reduced Fat chips and Cheetos Reduced Fat

snacks. Brand Pepsi has a new look.

Tropicana introduces a new campaign with the tag line "So pure. So alive. Tropicana Pure

Premium."

PepsiCo introduced Marathon Kids, a program that encourages kids and their families to be

more physically active and it got huge success throughout the world.

2003 Milestones:

Pepsi-Cola launches Sierra Mist nationally.

PepsiCo launches "Get Active/Stay Active" program.

Quaker Chewy introduces Quaker Chewy Wholesome Favorites and Quaker Chewy Trail

Mix.

Gatorade unveils In-Car Hydration System for NASCAR Drivers.

SoBe sponsors U.S. Open Snowboarding Championships.

Pepsi announces plans to launch Mt. Dew Livewire, an orange drink, this summer.

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Pepsi-Cola signs an exclusive four-year sponsorship deal with the Canadian Hockey

Association, making Pepsi the official soft drink.

Pepsi announces four-year sponsorship agreement with the UK Football Association.

Frito-Lay announces new line of snacks made with organic ingredients called "Natural

Snacks."

PepsiCo creates PepsiCo International, the business that will unite all international snack,

beverage and food units in an effort to drive faster growth and improved profitability around

the world.

Pepsi–Cola trademark turned 100 years old.

Pepsi Vanilla is launched in the United States.

Tropicana introduced Tropicana 100% Juice Blends.

2004 Milestones:

PepsiCo Launches 'Health Roads' Wellness Benefit for Associates and Their Families

PepsiCo's new "Smart Spot" program is featured as an example of the food industry's focus

on health and wellness in today's edition of USA Today.

Frito-Lay Launches Doritos and Cheetos Halloween Treat Multi-Sacks.

Frito-Lay's 24-count Multi-Sack variety pack won the Institute of Packaging Professional's

(IOPP) Integrity Award, one of the industry's top awards, at this year's AmeriStar Packaging

Awards.

Frito-Lay Introduces Doritos Black Pepper Jack

Diet Sierra Mist Become Sierra Mist Free

Pepsi-Cola to launch Pepsi Edge, the first full-flavored cola with 50% less sugar,

carbohydrates and calories than regular cola.

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Pepsi Bottling Group (PBG) – PepsiCo's biggest bottler bought Phil Gaudreault ET Fils Ltee,

a Quebec-based Pepsi bottle.

2005 Milestones:

PepsiCo Celebrates 40th Anniversary.

PepsiCo launched Quaker Milk Chillers.

Tropicana Launched All Fruit Smoothies.

Frito-Lay Launches Quaker Oats in India

Pepsi Foods Introduced Weight Control Instant Oatmeal

Pepsi Lime and Diet Pepsi Lime Launch

Tropicana Twister Soda Launched in April

PepsiCo international and Lipton came into agreement and introduced new Lipton Original

Iced Tea and New Lipton Iced Tea.

Tropicana Fruit Wise Campaign Launched.

PepsiCo Health & Wellness Launches Everyday Smart Moves Magazine.

Pepsi Celebrates 20th Consecutive Super Bowl With New Diet Pepsi Campaign.

In selected cities cross the United States, Pepsi distributes more than three million free cans

of newly reformulated Diet Mountain Dew, marking the largest single-day sampling effort in

company history.

Frito-Lay announces the launch of a new line of snack chips called Lay's Sensations and

Tostitos Sensations.

Frito-Lay launches Tostitos Multigrain; new snack brings flavor of four wholesome grains to

one of America's favorite tortilla chips.

2006 Milestones:

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Quaker Snacks Unveils Breakfast Cookies

Doritos unveils new packaging, including an updated logo

PepsiCo Launches Pepsi Limon in Peru

PepsiCo Completes Acquisition of Stacy's Pita Chip Company

PepsiCo Foodservice Partners With Cracker Barrel to Serve Up Fritos-Branded Menu Item

PepsiCo Foodservice Pours Two New Account Wins: Famous Dave's of America and

Roundtable Pizza

Pepsi Celebrates 20th Consecutive Super Bowl With New Diet Pepsi Campaign

North American Coffee Partnership Launches New Starbucks Beverages, Starbucks Iced

Coffee, Starbucks Iced Coffee Light as well as Strawberries and Creme Frappuccino and

Starbucks Double shot Light

PepsiCo India re-launches Mirinda

SoBe Launches New SoBe Life Water

Cheetos kicks off the biggest marketing campaign in its history with "Undercover Chester,"

an integrated communications platform that asks consumers to help Chester Cheetah recover

the stolen recipe for Cheetos

In selected cities cross the United States, Pepsi distributes more than three million free cans

of newly reformulated Diet Mountain Dew, marking the largest single-day sampling effort in

company history.

Frito-Lay announces the launch of a new line of snack chips called Lay's Sensations and

Tostitos Sensations

Frito-Lay launches Tostitos Multigrain; new snack brings flavor of four wholesome grains to

one of America's favorite tortilla chips.

Lay's Introduces Hot 'n Spicy KC Masterpiece BBQ Potato Chips.

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Frito-Lay cuts saturated fat in Lay's more than 50% for the health of the consumers.

Diet Pepsi launches Jazz, a new line of zero-calorie colas available in rich flavors like Black

Cherry French Vanilla and Strawberries & Cream.

Tropicana debuts Tropicana Pure--a new line of 100% premium juices

Indra Nooyi named Chief Executive Officer of PepsiCo as of October 1, 2006

Frito-Lay kicks of its nationwide rollout of Lay's with 100% Pure Sunflower Oil

PepsiCo announces it will acquire New Zealand snack company Bluebird Foods

2007 Milestones

PepsiCo signs Maria Sharapova for International endorsement of Gatorade and Tropicana.

PepsiCo announces new Diversity & Inclusion Leadership Award inspired by Steve

Reinemund.

Aquafina launches Aquafina Alive—a low calorie, vitamin-enhanced water beverage. Fritos

Corn Chips celebrates 75th Anniversary with retro packaging.

Tropicana launches Tropicana Fruit Squeeze, a 20-calorie drink with real Tropicana fruit

juice.

Lay's launches 'Share the Joy' program to help the Make a Wish Foundation raise funds.

PepsiCo Announces 25% Dividend Increase and Raises Share Repurchase Target; Nooyi

Assumes Chairman Title.

EPA Names PepsiCo 2007 ENERGY STAR(R) Partner of the Year.

PepsiCo Makes Largest Corporate Purchase of Renewable Energy Certificates.

Pepsi launches "Design Our Pepsi Can" National Promotion.

Indra Nooyi receives the Outstanding American by Choice Award.

PepsiCo makes Fortune magazine's '100 Best MBA Employers' list.

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Indra Nooyi named as 2007 Working Mother 'Best Company for Multicultural Women'.

PepsiCo wins two awards –Best Environmental/Wildlife Campaign and Best Cause

Marketing Event -- at Fifth Annual Cause Marketing Halo Awards.

Pepsi wins Webby Award for its execution of the "Best Sports Website"

PepsiCo earns spot in Black Enterprise Magazine's '40 Best Companies for Diversity'.

2008 Milestones

PepsiCo Foundation announces two major new grants to Water Partners and Safe Water

Network programs to provide access to safe water and sanitation in developing countries.

Forbes Names PepsiCo among Its Best Big Companies.

PepsiCo India Commissions First Remote Wind Turbine to Generate Renewable, Clean

Energy.

Employees Lead Effort to Make Chicago Plaza First LEED-Certified PepsiCo Headquarters.

PepsiCo Honored with 2008 Energy Star Partner of the Year Award.

PepsiCo Foodservice and Naked Juice Expand Starbucks Presence.

PepsiCo International's China Foods Wins "China's Top Leaders 2008" Award.

Wall Street Journal Article Recognizes PepsiCo for Leadership in Employment of People

with Different Abilities.

PepsiCo and Frito-Lay Join SmartWay in Commitment to Reduce Greenhouse Gas

Emissions.

PepsiCo Beats Coke in Race to Launch New Natural Sweetener (Stevia).

PepsiCo Commits to Reducing Acryalmide Levels in Potato Chip Products and Restructured

Potato Snacks in California.

Subway Names PepsiCo "Vendor of the Year" for Sustainability Leadership.

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ORGANISATION STRUCTURE

Finance & Accounts Manager

Administration of Recruitment

Accountant

Managing Director

Director of Executives

Sales & Marketing Department

Sales Manager

Area Sales Manager

Fountain Pepsi Bottles Soft Drink

Fountain Manager Accountant

Production Department

Factory Manager Accounts

Shipping

Production Manager

Production Engineer

Quality

Control

Chemists Chemists

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There are five elements that comprise an organization structure:

Specialization of activities

Standardization of activities

Co-ordination of activities

Centralization and decentralization of activities

Size of the work unit.

The word organization has two common meanings. The first meaning signifies institution

or functional group, and the second one refers to the process of organizing the way of work, which is

arranged and allocated among members of the organization, so that the goal of the organization can

be achieved efficiently. The organizing process involves balancing the company’s need: both for

stability o one hand and change on the other hand. The organization structure gives stability and

reliability of its goals. While altering an organization structure can be a means of adopting and

bringing in about a change, which could otherwise be a source of resistance to change.

Organization structure basically involves analysis of activities to be performed for

achieving organizational objectives grouping them in to various individuals and delegating them

with appropriate authority so that they can carry on their work properly. Organization structure can

be defined as an arrangement and relationship of component parts, which also helps to determine the

position of the company. An organization structure specifies the division of work activities and

shows us how different activities are linked.

Organization structure is a basic framework within which the managers’ decision making

behavior takes place. Structure basically deals with relationships. It is an important scientific

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concept. In dimple terms it may be defined as a pattern in which various parts or components are

interrelated or interconnected.

MARKETING FUNCTION

The success of any enterprise directly depends upon the success of its Marketing function.

Is the main function in this business? It plays a major role. After the production of the soft drinks,

the functions of the Marketing Dept. starts and it continue process. The word marketing is not a

simple word; it is of many complicated activities which should be undergone. The sales persons

should have to search for the opportunities and have to avail the opportunity. One Manager will be

appointed to look after the total marketing activities in that region and some team will be there under

the manager to execute the function. Marketing should be done on two concepts related to the

customers psychology, those are;

Fear of loss

Hope of gain

That means the marketer will create these feelings in the customer’s mind to market their

products. For example Pepsi launched a promotional activity that see the crown of the bottle and win

the gold coin; it creates these above mentioned feeling. The customer will think that if I am not

taking that drink I may loss that gold coin (or) if I take that drink I can win that gold coin. These

two sentences may be similar to see, but there is a difference in these words. The customer may be

attracted towards the product because of any these two reasons.

The approaches may vary from product to product, time to time, and place to place. The

marketers have to create the need to the customer and have to show the solution for that need.

Marketing Management is the process of planning and executive the conception, pricing and

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distribution of ideas, goods and services to create exchanges with target that satisfy customer and

organizational objectives. That means marketing consists the distribution of soft drinks (distribution

channels), promotional activities, providing the information about the products, advertising of the

products and etc.

Pepsi Company is giving the huge publicity about their products introduced in the market

and the products yet to come in to the market. They are using the big film stars, cricket players,

tennis players and etc. as their brand ambassador to attract the people. It creates a psychological

feeling that their favorite name and famed persons are consuming the products then why should I

consume the product. The soft drink companies are spending lots of amount on the advertising.

There is always the cold war is going on. To face the competition they are adopting various

methods. The soft drink companies have to maintain good relations with the distributors, dealers and

the retailers, because they can make the profits and can break the profits to the company. Because of

this reason they will take care of these persons.

This business totally depends on the seasons; the sales of the drinks will be in peak level

in summer seasons. In the soft drinks industry without the marketing function they can not run the

business. In this industry the competition is more and uncontrollable, because of this reason the

Companies have to think of competing with the competitors. The Company is appointing the

executives to improve their marketing. The Executives will go to the retailers and explain about the

products and the offers that are offered to the retailers and to improve the business what type of

support the Company will provide to the retailers. Some supervisors will be recruited to supervise

the marketing executives whether they are doing their duties perfectly or not. To look after all the

marketing department’s functions on Marketing Manager was recruited in the top level. In this way

the marketing structure will made. Logistics also include the marketing function. The distribution of

the soft drinks looked after by the marketing department only. They will supply the drinks to the

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retailers and collect the money and the empty bottles from the retails. If the marketing department is

succeeded in all these functions then it is a successful marketing department. For this the department

will struggle continuously. Some researchers also will be there for the marketing reach in the

company because if the company is implementing the same strategies for a long time and for all the

areas that many not be suitable for that time and area. For that the research department will do the

continuous research for the new strategies.

The Four “P” Components of Marketing Mix:

Product price place promotion

Product Variety List Price Channels Sales Promotion

Quality Discount Coverage Advertising

Design Allowances Assortment Sales Force

Size Credit Terms Location Public Relation

Service Inventory Direct Marketing

Returns Transport

Marketing mix

Target Market

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The consistency of the product mix refers to how closely relate the various product lines

are in end use, Production requirements, distribution channels, or some other way. Pepsi Company’s

product lines are consistent in so far so they are consumer goods that go through the same

distribution channels. The lines are less consistent so far as they perform different functions for the

buyers.

These four product-mix dimensions permit the company to expand its business in four

ways. It can add new product line and can add more product variants to each product and deepen its

product mix. Finally, it can pursue more product-line consistency. The future of any product is

totally depends on these aspects. They should introduce the right product with a suitable price in a

right place, at the same way the promotions also should match the place. That means the

advertisement should be in right manner.

Product Mix Width & Product line length for Pepsi Malaysia Pvt. Ltd. compared to Coke

Company:

American Marketing Association defines a brand as: a name, term, symbol, or design, or a

combination of them, intended to identify the goods or service of one seller or group of sellers and to

differentiate them from those of competitors. Thus a brand identifies the seller or maker. Under

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Product Mix Width

Product Line Length

Soft drinksPepsi Coke

Pepsi Coca-Cola7 Up SpriteOrange Mirinda FantaMountain Dew Thumps UpLemon Mirinda LimcaSlice MaazaDiet Pepsi Diet CokeEvervess Soda Kinely Soda

trademark law, the seller is granted exclusive rights to the use the local brand name is perpetuity.

Brands differ from other Assets such as patents and copyrights, which have expiration dates.

Product:

The marketer has to do the survey to understand the needs and wants of the customer and

has to inform to the production department. Then the R&D department will do the research

accordingly. The production department will produce the product to fulfill the requirement of the

customers. All these factors come under this part of the product mix. Pepsi Company is producing

many brands of soft drinks and doing the marketing of those products. They are taking care of the

quality of the products.

Price:

The company will fix the price of a product based on some aspects, those are; Production

Cost, Variable Cost, and some other things and they will finally add their desired profit to that cost

and the final cost of that product will be fixed. This is called the Maximum Retail Price (MRP). This

step should be taken care because the price of the product should be according to its quality, and also

should be taken care of the competitor’s price. If the price is too high when compared to the

competitor and not worth of its quality then the sales of that product becomes difficult and the

company will face the losses. The company should also have to think what will be the return on

investment.

Place:

The company should think a lot before launching a product in to the market. They have to

identify where it is better to launch the new product first so that they can get success. Generally

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every company selects a specific region to launch their new products, because first they will go for

the test marketing before the mass production of the production. If the customers are satisfied with

that product then they will start the mass production and launch in all areas. In case they found any

fault with that product then they will redesign the product and rectify that problem and re-launch the

products.

They will take care of the distribution channels also while launching the new product in

one area. They have to design what will be the channel structure and what will be the results of that

structure. Pepsi Company following this structure;

Producer ----- Dealer------ Retailer ------- Customer

Producer-------company dealer------Retailer------Customer

They will also estimate the distribution cost that is transportation cost and will search for

the remedies to reduce the cost of distribution. The company should also think of the inventory,

because they have to stock the goods for sometime and will supply the product to the customers. For

this they have to arrange the warehouses.

Promotion:

In today’s competitive environment, having the right product at the right place, at the

right time may not be enough to be successful. Effective communication with the target market is

essential promotion is the ‘p’ of the marketing mix designed to inform the market place about who

you are, how good your product is and where you can buy it. Promotion is also useful to persuade

the customers to try a new product or buy more of an old product. The promotional mix is the

combination of personal selling, advertising, sales promotion and public relations that uses in its

marketing plan. Above the line promotions refers to mainstream media advertising through common

media such as television, radio, transport, billboards, newspapers and magazines.

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The company will offer many things to the traders as well as to the consumers. If the

company will give good schemes to the dealers and the retailers then they will promote that brands

and the sales will be increased. In the same way the companies are also providing many offers to the

consumers like:

Drink Pepsi, see the crown and win foreign trips, cash prize and many more things.

Drink Pepsi and go to World Cup offer.

Drink Sprit and win NOKIA Multimedia Mobiles.

Drink 7up and win 7 Golden Lemons and many more gifts

In the case of soft drinks the Advertisement is the main promotional activity. The companies are

investing millions of rupees on Ads. They are preparing various types of Ads targeting different

category of People. They are preparing the Ads very innovatively in the way to attract the customers

and against their competitor. Through the Ads the company will create the feeling in the customers

mind that this drink is good and should go for that drink only. Many customers will go for same

brands because of the influence of the advertisements only. Some Ads will hurt the ego feeling of

the customers and through that way also they will attract the customers. In these ways promotional

activities plays a vital role in the sales increase of a product as well as it will create a brand image in

the customers mind.

Comparison of the Slogans of the Pepsi and Coca - Cola:

The slogans are very important for the advertising purpose. The slogans will attract the

customers a lot. The slogans will give the views and the intentions of the company that what they

want to share with the customers. We can say slogan is an appeal to the customers about the

products of the company. Pepsi and Coke have very different targeting strategies. Pepsi is promoting

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itself as something new , young and hip, which seems a little odd aver 100 years. Coke is tuning

itself as the original, the authentic and appealing to a sense of traditional one. Pepsi has always

targeted the youth market more aggressively than Coke. The companies have been changing their

Logos continuously to attract the new customers. They are trying to create the new image and look

to their Companies through changing the Advertisements taglines.

Slogans of Pepsi Company Slogans of Coke Company

1903 – Exhilarating, invigorating, Aids

Digestion.

1907 – Original Pure Food Drink

1909 – Delicious and Healthful

1915 – For All Thirst-Pepsi-Cola

1919 – Pepsi-Cola-it makes you Scintillate

1920 – Drink Pepsi-Cola. It will satisfy you

1928 – Pepsi you Up!

1932 – Sparkling, Delicious.

1934 – Refreshing and Healthful

1939 – Twice As Much For A nickel Too

1943 – Bigger Drinks, Better taste.

1949 – Why taken less When Pepsi is best?

1950 – more Bounce to the Ounce

1950 – The light Refreshment

1954 – Refreshing without Filling

1958 – Be Sociable, have a Pepsi

1886 – Drink Coca-Cola

1904 – Delicious and Refreshing

1905 – Good All the Way Down

1906 – The Drink of Quality

1906 – The great National Temperance

1907 – Delicious Coca-Cola, Sustain,

Refreshes, Invigorates.

1908 – Sparkling-Harmless as Water and

Crisp as Frost.

1909 – Delicious, wholesome, Refreshing

1910 – It Satisfies

1911 – It’s time to Drink Coca-Cola

1912 – Demand the Genuine-Refuse

Substitutes.

1913 – The Best beverage Under the Sun

1914 - Demand the Genuine by Full Name

1916 – just One Glass Will Tell You

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1961 – Now It’s Pepsi, for those who think

Young.

1963 – Come Alive! You’ve in the Pepsi

Generation.

1967 – Pepsi Pours it on

1969 – You got a lot to live and Pepsi got a

Lot to give.

1973 – Join the Pepsi People, feeling free

1975 – Have a Pepsi Day

1978 – Catch the Pepsi Spirit

1981 – Pepsi Got your Taste for life.

1983 – Pepsi now!

1984 – Pepsi, the choice of a new

Generation.

1992 – Pepsi, Have it!

1993 – Be Young, Have Fun, Drink Pepsi

1995 – Nothing else is a Pepsi

1999 – The joy of Cola.

1917 – Three Million A Day

1919 – Quality Tells the Difference

1920 – Drink Coca-Cola with Soda

1922 – Thirst knows no Season

1923 – Refresh Yourself

1924 – Pause and Refresh Yourself

1925 – The Sociable Drink

1926 – Stop at the Red Sign

1927 – Around the Corner from Anywhere

1928 – A Pure Drink of National Flavours

1929 – The Pause that Refreshes

1930 – Meet Me At the Soda Fountain

1932 – Ice-Cold Sunshine

1933 – Don’t Wear A Tired, Tired Face

1934 – Carry a Small Back to Work

1935 – All Trails Lead to Ice-Cold

Coca-Cola

1936 – What Refreshment Ought to be

1938 – The Best Friend Thirst Ever had

1939 – Make Travel more Pleasant

1940 – Bring in Your Thirst and Go Away

Without it.

1941 – Completely Refreshing

1942 – Refreshment that Can’t be

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Duplicated.

1943 – The only think like Coca-Cola is

Coca-Cola itself. It’s the real thing.

1944 – How About A Coke

1945 – Passport to Refreshment

1947 – Coke knows no season

1949 – Coca-Cola…. Along the highway to

Anywhere.

1951 – Good food and Coca-Cola just

Naturally go together.

1954 – For people on the go

1956 – Feel the difference

1957 – Sign of a Good Taste

1958 – The cold, Crisp taste of Coke

1959 – be really refreshed listen to Connie

Francis

1960 – Relax with Coke

1961 – Coke and food-Refreshing new feel.

1962 – Coca-Cola Refreshes you best.

1965 – Something more than a soft drink

1966 – Coke…After Coke…After Coke

1970 – it’s the real thing listen to the

Carpenters

1971 – I’d like to buy the world a Coke

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1976 – Coke Adds life

1979 – Have a Coke and Smile

1984 – Just for the taste of it (Diet Coke)

1985 – We’ve got a taste for you

(new Coke)

1986 – Catch the Wave (New Coke)

1987 – You can’t beet the real thing

1989 – Can’t beat the feeling

1990 – Can’t beat the real thing

1993 – Always Coca-Cola

2001 - Thanda Matalab Coca-Cola

2003 – Coca-Coal Enjoy

When we compare the total slogans of the two companies we can first understand that

Coke Company frequently changed its Slogans, some times trice and trice a year. But in case of

Pepsi Company is not changing its slogans frequently. The slogans of Pepsi are not realistic and the

company is exaggerating the features of the drinks and the company. Coke Company prepared its

slogans in a realistic way and which is nearer to the features of the drinks and the company. Now

Pepsi Company is not using any slogans for its drinks. Coke Company also not using the slogans

that much frequently because the present day customers are taking care of the features of the

product, taste of the products and packing of the products not the slogans of the Company.

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Comparison of the Logos of Pepsi and Coke:

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From the above picture we can observe that from origin itself Pepsi Company has been

changing its Logos but Coke Company has not at all changed its Logo form the beginning. From this

we can understand that Pepsi Company has been trying to create some place in a differently with its

new Logos where as Coke Company tried to fix the same Logo as brand name. Previously the name

of Pepsi is Pepsi-Cola, and now it is changed to Pepsi. The reason for changing the Logos of Pepsi

continuously was it merged many of the largest Food Companies with Pepsi like Tropicana, Fritos

Lay and Galaxy Co. and etc. every time when merged with any Company it changed its Logos,

because of this reason Pepsi became the largest food based products producer in the world. Coke

Company is confined to the soft drink production only. As Coke Company has not changed its Logo,

it is totally fixed in the minds of the people of the world. The people of the world have some what

confusion on the Logo of Pepsi Company as it changed its Logos Continuously.

Even though Pepsi Company changed its Logos continuously, it has not changed its

slogans that much frequently. But in case of Coke Company, it has not at all changed its Logo but

changed its slogans very frequently, sometimes thrice and trices a year. From this it is concluded that

Pepsi Company tried to create a brand image of the Company in the minds of the customers using its

different Logos but the same Slogans about the products. But in case of Coke Company it tried to

create a brand image of the Company with the same Logo and different Slogans about the products.

In this manner the two giant Companies in the soft drinks industry compared and differentiated with

each other.

This cola wars became very common to the soft drink Companies. Soft drinks

became a part of every day life of the people in all over India and other countries of the world. The

pop culture has made resisting the temptation of sugar based carbonated beverages virtually

impossible for most. The soft drink war between Pepsi and Coke keep on going and increasing day

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by day. They are using the different techniques to attract the customers towards their products

mainly the cola products. The cola products are:

Pepsi Coke

Pepsi Coca-Cola

Thumps up

Coke Company has the two cola brands, whereas Pepsi has only one brand of cola. Pepsi

Company is using excellent marketing strategies, such as celebrity appearances to sell their products

where as Coke’s realistic approach has placed them at the top of the soft drink industry, mainly in

the case of cola sales. We can observe the cola war through the Advertising of the two companies in

the television. They prepare the Ads to compete with one another. They will hire the famous persons

and the celebrities for their Ads. They will invest lots of amount on advertising. Through the

advertising only the sales of the soft drinks are in creased. Even though Pepsi trying to get the No-1

place in the soft drinks industry the statistics have shown that they are not able to get that position

when compared to Coke Company for the past few years.

In case of Advertising Pepsi dominated Coke because most of the customers are attracted

toward the Pepsi Company’s Ads only not to the Coke Company’s Ads because Pepsi is spending

more on advertising preparation when compared to Coke Company. Pepsi Company is using the

famous celebrities when compared to Coke Company and this increases the influence of the

advertising on the customers. Both companies are conducting their operations successfully in more

than 200 countries in the world. The war is going on in every country all over the world. Pepsi

changed its Logos frequently 9 times from its origin but Coke Company has not at all changed its

Logos, this is a great thing that we can observe.

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HR FUNCTION

Respect for Our Employees:

We believe our most important strength is our employees. We seek to provide a work

environment where all employees have the opportunity to reach their full potential and contribute to

PepsiCo's success. We emphasize personal integrity and believe long-term results are the best

measure of an employee’s performance. PepsiCo respects the human rights and the dignity of all

employees. We endeavor to treat our employees fairly and honestly. We strive to maintain a safe,

secure and healthy workplace and it is against our policy to use forced or child labor. We also strive

to follow all applicable employment laws and regulations. We are committed to equal opportunity in

all aspects of employment for employees and applicants. This means providing a workplace free

from any form of discrimination or harassment, including sexual harassment. We seek to create a

work environment where people feel comfortable and respected, regardless of individual differences,

talents or personal characteristics. Our objective is for the diversity of our employees to reflect the

diversity of the population wherever we operate and for the performance of all employees to be

judged fairly and based on their contribution to our results. PepsiCo encourages an inclusive culture,

which enables all employees to do their best. This means us:

Welcome and embrace the strengths of our differences,

Treat each other with respect and fairness, and

Foster an atmosphere of trust, open communications and candor.

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We recognize the needs of individuals to achieve professional and personal balance in their

lives. We also respect employee privacy and will acquire and retain only that employee personal

information that is required for operation of the Company’s business or required by law.

Health and Safety:

PepsiCo is committed to providing safe and healthy work environments at its facilities for all

its employees, visitors, contractors and vendors. It is our policy to provide employees with a drug-

free workplace. In order to create an environment free from threats, violence and intimidation, we

are committed to a policy of zero tolerance for violence. We are dedicated to designing,

constructing, maintaining and operating facilities that protect our people and physical resources. It is

our policy to comply with all applicable health and safety laws and regulations, provide and require

the use of adequate protective equipment and measures, and insist that all work be done in a safe and

responsible manner. It is the responsibility of each employee to follow all Company policies and

procedures related to workplace health and safety.

Responsibility for Compliance:

All employees are expected to display responsible and ethical behavior, to follow

consistently both the meaning and intent of this Code and to act with integrity on a daily basis.

Managers and leaders are expected to ensure that our business processes and practices reinforce the

Code, to serve as positive role models by establishing and adhering to high ethical standards, and to

create an ethical culture by encouraging and rewarding actions that are consistent with the Code.

This Code cannot provide definitive answers to all questions. For that, we must rely on each person's

judgment and integrity. You are encouraged to seek guidance when a situation may not be clear.

Your supervisor, Human Resources manager or the PepsiCo Law Department will respond to

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questions and issues of interpretation about this Code. Waivers of this Code will be reviewed by the

General Auditor and General Counsel, and in certain circumstances by the Board of Directors, and if

required, will be appropriately disclosed.

FINANCE FUNCTION

Any company, which has to start and operate its business, has to invest its capital in fixed

assets and floating assets and it also has to meet the daily requirements of the company. However,

depending on the nature of the business and the product being offered by the company, the ration of

investment of capital in fixed and floating assets differs.

Types of Capital Amount (Million)

Funds employed 60

Working capital 15

Institution finance 40

Protection and Proper Use of Company Assets:

PepsiCo’s technological resources, including computers, voicemail, e-mail and Internet

access, are to be used for proper purposes in a manner consistent with the Code and all other

Company policies, including those related to discrimination, harassment and intellectual property.

As with all PepsiCo assets, these resources are to be used for business purposes. It is generally not

PepsiCo’s intent to monitor Internet access or messages on the voicemail and email systems.

However, the Company reserves the right to do so in appropriate circumstances, consistent with

applicable laws and regulations. If you access to PepsiCo.com, we cam get the information

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regarding the precautions steps to prohibit unauthorized access to the system. You should safeguard

your passwords or other means of entry. Employees must not reproduce software assets licensed to

PepsiCo, use illegally obtained software or distribute the original software media or unauthorized

copies of software which the Company does not own or license.

Accounts and Record-Keeping

We will continue to observe the most stringent standards in the keeping of our financial

records and accounts. Our books and records must reflect all components of transactions, as well as

our own standard of insisting upon an honest and forthright presentation of the facts. We will ensure

that the disclosures we make in reports and documents that we submit to the Securities and

Exchange Commission and in other public communications are full, fair, accurate, timely and

understandable. It is the responsibility of each employee to uphold these standards. Appropriate

records must be kept of all transactions and retained in accordance with PepsiCo’s Records

Management Policy and Records Retention Schedule. Employees are expected to cooperate fully

with our internal and external auditors. Information must not be falsified or concealed under any

circumstance and an employee whose activities because false financial reporting will be subject to

disciplinary action, including termination.

Financial comparison of Pepsi and Coke:

During 2008, the two companies turned in a remarkable similar set of financial results.

Pepsi Company generated $20.4 millions throughout Malaysia, whereas Coke Company

generated $20.5 millions. Here Coke Company earned more money when compared to Pepsi

in Malaysia. So Coke dominated Pepsi in terms of the revenue generation.

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Pepsi Company earned $2.2milion in net profit and Coke Company earned $2.2million net

profit. Here the two companies are earning profits equally. So we can understand that these

two companies are competing with each other in an equal position. For this they are adopting

new strategies for the growth of their revenue and the profits.

Pepsi Company generated free cash flow of $2.9 billion, whereas Coke Company also

generated the same amount of $2.9 million of free cash flows.

Criteria Pepsi Company Coke Company

Sales Growth 12.8 % 12.0 %

Gross Margin 69.6 % 61.1 %

Net Margin 10.7 % 10.6 %

Cash-to-Debit ration 0.55 % 0.33 %

Thus, Pepsi Company is either tied or has the edge over Coke in ever category except

Gross Margins. The sales growth rate of Pepsi is growing faster than Coke Company. This is

because of the strategies adopted by the Pepsi Company. Even though 92% of the people through

out the world know the brand name of Coke, they are not able to capture the highest market share

when compared to Pepsi. Pepsi has a better ration of cash versus debt. Pepsi Company is the leader

of the snacks producer in the world having 46% of the total market share and more than seven times

the size of its next largest competitor, whereas Coke has not at all entered in to this field. In this way

also Pepsi dominated Coke in the field of snacks production.

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