Project of Pepsi Final

8/10/2019 Project of Pepsi Final

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Project of Pepsi

Submitted to:-

Miss SADIA BAWER

Submitted by:-Zimmal Ilyas

Somia Anwar

Akasha umer

M. Sajawal

Umer Ijaz

Saad Mehmood


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Table of Contents

Introduction

History

Mission statement

Vision statement

Roles and objectives of organization

Marketing strategies of organization

Organizational structure

Products of organization

Competitors of organization

SWOT analysis of organization

PEST analysis of organization


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Introduction and History

Introduction:-

Pepsi International is a world renowned brand. It is a very well organized multinational

company, which operates almost all over the world. They produce, one of best carbonated drinksin the world. Pepsi is a symbol of hygiene, quality and service, all over the world. Pepsi is

producing Cola for more than 100 years and it has dominated the world market for a long time.

Its head office is in New York.

The History of Pepsi-Cola

Refresh your Pepsi-Cola history! Over 100 years running and going strong!

1893--Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with

many different soft drink concoctions; patrons and friends sample them at his drugstore soda fountain.

1898--One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated water, sugar,vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898. Pepsi-Cola receives its first

logo.

1902--The instant popularity of this new drink leads Bradham to devote all of his energy to developing

Pepsi-Cola into a full-fledged business. He applies for a trademark with the U.S. Patent Office,

Washington D.C., and forms the first Pepsi-Cola Company.


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The first Pepsi-Cola newspaper advertisements appeared in the New Bern Weekly Journal.

1903--"Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a rented warehouse; he

sells 7,968 gallons of syrup in the first year of operation.

Pepsi's theme line is "Exhilarating, Invigorating, and Aids Digestion."

1904--Bradham purchases a building in New Bern known as the "Bishop Factory" for $5,000 and

moves all bottling and syrup operations to this location. Pepsi is sold in six-ounce bottles. Sales increase

to 19,848 gallons.

1905--Pepsi-Cola's first bottling franchises are established in Charlotte and Durham, North Carolina.

Pepsi receives its new logo, its first change since 1898.

1906--Pepsi gets another logo change, the third in eight years. The modified script logo is created with

the slogan, "The Original Pure Food Drink."

1907--Pepsi-Cola Company continues to expand; the company's bottling network grows to 40

franchises. Pepsi-Cola sells more than 100,000 gallons of syrup.

Pepsi trademark is registered in Mexico. Syrup sales rise to 104,026 gallons.

1908--Pepsi-Cola becomes one of the first companies to modernize delivery from horse drawn carts to

motor vehicles. Two hundred fifty bottlers in 24 states are under contract to make and sell Pepsi-Cola.

1909--Automobile race pioneer Barney Oldfield endorses Pepsi-Cola in newspaper ads as "A bully

drink...refreshing, invigorating, a fine bracer before a race."

1910--The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina.

1920--Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you."

1923--Pepsi-Cola Company is declared bankrupt and its assets are sold to a North Carolina concern,

Craven Holding Corporation, for $30,000.

1928--After five continuous losing years, Megargel reorganizes his company as the National Pepsi-Cola

Company, becoming the fourth parent company to own the Pepsi trademark.

1931--U.S. District Court for Eastern District Virginia declares the National Pepsi-Cola Company

bankrupt, the second bankruptcy in Pepsi-Cola history..

1933--By the end of the year, Guth's new Pepsi-Cola Company is insolvent. In a series of moves, he

acquires Megargel's interest in the company, giving himself 91% ownership of Pepsi.

1934--A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales, the company

begins selling its 12-ounce drink for five cents (the same cost as six ounces of competitive colas 1936--

Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000.


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1938--Walter S. Mack, Jr., V.P. of Phoenix Securities Corporation is elected President of the Pepsi-Cola

Company

1939--The "Pepsi & Pete" comic strip introduces the "Twice as much for a nickel" theme in

newspapers.

1940--Pepsi-Cola Company makes advertising history with "Nickel, Nickel," the first advertising jingle

ever broadcast nationwide on radio.

1941--The New York Stock Exchange trades Pepsi's stock for the first time.

1943--Pepsi's theme line becomes "Bigger Drink, Better Taste."

1948--Corporate headquarters moves from Long Island City, New York, to midtown Manhattan.

1950--Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steele's wife, Hollywood movie

star Joan Crawford, is instrumental in promoting the company's product line.

Pepsi receives its new logo, which incorporates the "bottle cap" look. The new logo is the fifth in Pepsi

history.

1953--"The Light Refreshment" campaign capitalizes on a change in the product's formula that reduces

caloric content.

1955--Herbert Barnet is named President of Pepsi-Cola.

1959--Pepsi debuts at the Moscow Fair. Soviet Premier Khrushchev and U.S. Vice President Nixon

share a Pepsi.

1960--Young adults become the target consumers and Pepsi's advertising keeps pace with "Now it's

Pepsi, for those who think young."

1962--Pepsi receives its new logo, the sixth in Pepsi history. The 'serrated' bottle cap logo debuts,

accompanying the brand's groundbreaking "Pepsi Generation" ad campaign.

1963--After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall is named CEO

of Pepsi-Cola Company.

1964--Diet Pepsi, America's first national diet soft drink, debuts.

1965--Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and Pepsi-Cola

merge, forming PepsiCo, Inc.

1970--Pepsi leads the way into metrics by introducing the industry's first two-liter bottles. Pepsi is also

the first company to respond to consumer preference with light-weight, recyclable, plastic bottles.

1974--First Pepsi plant opens in the U.S.S.R.

1976--Pepsi becomes the single largest soft drink brand sold in American supermarkets.


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1977--At 37, marketing genius John Sculley is named President of Pepsi-Cola.

1978--The Company experiments with new flavors. Twelve-pack cans are introduced.

1980--Pepsi becomes number one in sales in the take home market.

1981--PepsiCo and China reach agreement to manufacture soft drinks, with production beginning nextyear.

1982--Pepsi Free, a caffeine-free cola, is introduced nationwide. Pepsi Challenge activity has penetrated

75% of the U.S. market.

1983--Mountain Dew launches the "Dew it to it" theme.

1984--Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New Generation."

1985--After responding to years of decline, Coke loses to Pepsi in preference tests by reformulating.

1986--Chairman Donald M. Kendall retires and is succeeded by D. Wayne Calloway.

1987--Pepsi-Cola President Roger Enrico is named President/CEO of PepsiCo Worldwide Beverages.

1988--Craig Weatherup is appointed President/CEO of Pepsi-Cola Company.

1989--Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation Ahead."

1990--American Music Award and Grammy winner rap artist Young MC writes and performs songs

exclusively for national radio ads for Pepsi.

1991--Craig E. Weather up is named CEO of Pepsi-Cola North America, as Canada becomes part of the

company's North American operations.

1992--Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding "Choice of a

New Generation."

1993--Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi."

1994--New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO Craig

1995--In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the

year's national advertising championship.

1996--In February of this year, Pepsi makes history once again, by launching one of the most ambitiousentertainment sites on the World Wide Web.

1997--In the early part of the year, Pepsi pushes into a new era with the unveiling of the Generation

Next.

1998--Pepsi celebrates its 100th anniversary.


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FOUNDERS OF THE COMPANY

The company was initially owned by late Nawab Saddiq Hussain Qureshi & family till 1989.

The Pepsi International franchise declared the management incompetent, thus, the company was

handed over to a new set of personnel. The factory set up was reorganized & reestablished with

expansion in various sectors. The Pepsi International did this by offering it to Mr. JahangirTareen, who formed up his new team. Mr. Jahangir Tareen is Nephew of General (late) Akhtar

AbdurRehman.

Pepsi was found in 1892.

In 1959 Pepsi Cola was introduced in Pakistan but due to lack of awareness it was unsuccessful

therefore the headquarters decided to windup their business in Pakistan

1963 It came again with much revised Strategy, facing a lot of difficulties in promoting their

product and competing against COCA COLA which was a well-established brand here in

Pakistan and for that reason Pepsi once again went back

1979 Pepsi had secretly promoted its diversified products and carter to all demographic groups of

Pakistan there for within 5 years they emerged as a market leader, having 72% of market share

while COCO COLA had only 28% share. But now its market share has decreased to 8%.

MISSION STATEMENT

"To be the world's premier consumer Products Company focused on convenient foods and

beverages. We seek to produce healthy financial rewards to investors as we provide opportunities

for growth and enrichment to our employees, our business partners and the communities in

which we operate. And in everything we do, we strive for honesty, fairness and integrity."

VISION STATEMENT

"To be the world's best beverage company". Being the best means providing outstanding quality,

service, cleanliness and value, so that their every customer is contented and happy with their

products."


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"To increase the value of their shareholder's investment through sales growth, cost control and

wise investment of resources."

Roles and objectives of organization

The roles and responsibilities the organizational managers and leaders play

are at below:-

Management of any organization has the responsibility of setting out the goals and objectives. It

also sets the expectations of how employees are supposed to behave in various situations. As

such, it outlines the overall organization culture. For culture to be effectively maintained in an

organization, managers and leaders must act as followers and also leaders. Commitment and

enthusiasm towards a person or an organization distinguishes effective and ineffective followers

as well as leaders. A healthy organizational culture is based on mutual understanding andcooperation between the employees and the management. For a healthy organizational culture to

be maintained, leaders and managers learn role decision making and law of cash plays in an

organization. At PepsiCo, the managers and leaders have identified the relationship that exists

between themselves and the employees. In this company, the leaders and managers usually use

information elements in supporting the employees' decision making for improvement of the

working condition. Employee's involvement in decision making especially in regard to their

working conditions and environment is a key to ensuring that a healthy culture is developed in an

organization. This approach is highly utilized at PepsiCo by leaders and managers. At PepsiCo,

managers and leaders involve all levels of management as well as the employees on the decision

making process and they always encourage open and participatory decision making process.

Ensuring that resources are only applied to activities expected to bring great returns and enhance

the products value to the customers is also another role played by leaders and managers at

PepsiCo. Leaders and managers at PepsiCo participate in the allocation of products and

throughout the production process to the final stage of determining the price of a commodity. A

healthy organization culture is created and maintained through active participation of top

management. For leaders and managers to be able to achieve successful organizations, they must

follow the set objectives by leading the employees, initiating necessary changes, creating a

shared vision and need monitor progress and mobilize commitment among employee. Managers

encourage the, employees to pursue the set goals while leaders have the role of giving thespecific direction for achievement of these goals. Managers and leaders at PepsiCo blend this

roles well a strategy that have ensure continued profitability of this company. To ensure creation

and maintenance of a healthy organizational culture in maintained at PepsiCo, leaders and

managers jointly perform the management function which includes planning, budgeting,

evaluating and facilitating of organizational resources. At PepsiCo the management is charged

with the role of formulating plans regarding available assets and resources required for product


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development through to marketing of finished products. Managers come up with the plans for

fulfilling productivity goals and also give the production methods. While formulating these

plans, employees are consulted and their views incorporated in the overall plans of the company.

Marketing Strategies of Pepsi

The keys to reaching its goals are to concentrate its resources on growing its current businesses

and acquiring related companies to broaden its product line. An ongoing battle for market share

has existed for over 75 years. Company has tried a number of strategies to gain a sustainable

competitive advantage.

These strategies included:

Introducing new soft drink products

Diversification

Aggressive advertising campaigns

Pepsi must identify and implement the strategy best suited to gain the competitive advantage in

the soft drink industry on a world-wide basis.


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ORGANIZATIONAL STRUCTURE

Pepsi follows a traditional corporate organizational structure. It is an enormous international

company, and follows a top down structure. Pepsi is organized much the way that many other

large companies are organized. Pepsi Companys organization is divided into four areas covering

Asia, Africa, Europe and America. These four subdivisions are further narrowed among thecountries in these continents. The inter- organization structure of the company has different

divisions. The manufacturing plant makes the bottles, the distributors deliver to the suppliers,

and the suppliers sell it to the retailers and finally to the consumers. These supplychains in

different countries are controlled by one main headquarter situated in New York, USA.

PRODUCTS OF ORGANIZATION

The soft drinks market in Pakistan enjoys dynamic growth in both volume and value terms.

Carbonated drinks have become part of the culture in Pakistan and multinational companies have

maintained standards over the years to provide the nation with high-quality drinks. Rural areas of

Pakistan have driven sales of carbonated drinks to new heights as more than 60 percent of the

population resides in rural areas and young consumers are more attracted to advertising. Pepsi isthe most popular and leader brand in the Pakistani market and is consumed by children and

adults alike. Pepsi is a responsible corporate brand of Pakistan and have contributed a lot to the

economy.


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Pepsi has a product line comprised up of carbohydrate drinks, Lays and many other products in

Pakistan. Pepsi's product line satisfies consumer needs because Pepsi produces different types of

soft drinks for different consumers.

The main product of Pepsi Cola Company is Pepsi and its sub brands are Dew, Miranda, 7up,

Aquafina, Pepsi Max. It also diversified into Lays.

Providing their consumers with easy-to-use, convenient and innovative containers are one of

their top priorities. Package introductions they've made over the years include the industry's first

1 liter bottle; Regular, Disposable; Can. Pepsi Co. was the first company to respond to

consumer preference with lightweight, recyclable, plastic bottles. These bottles are made of

polyethylene terephthalate or "PET plastic," which is a form of polyester used to make strong,

lightweight, shatter-resistant bottles.

Pepsi ProductsMountain dew is the most recent addition in the product line of soft drinks which is very

popular especially among the youngsters.


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However Pepsi launch its several variants with a minor difference on frequent interval of time.

There have been many Pepsi variants produced over the years since 1903, including

Dew

Slice

Aquafina

Miranda

7UP

Diet Pepsi

Crystal Pepsi

Pepsi Twist

Pepsi Max

Pepsi Blue

Pepsi Pink

Pepsi Holiday Spice

Pepsi Jazz


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Pepsi Salty Water melon

Pepsi Next

Pepsi Raw

Pepsi One

Pepsi Ice Cucumber

Pepsi Mist

New Product Category

Pepsi which is mainly a company of soft drinks .After establishing a brand in Pakistan Pepsi

came into several new product categories. Lays, Kurkuray and Aquafina, fast food restaurants

are the examples of new product category.


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PepsiCo, Inc. Competition

The PepsiCo challenge (to archrival Coca-Cola) never loses its fizz for the world's #2 carbonated

soft drink maker. Its soft drink brands include Pepsi, Mountain Dew, and their diet alternatives.

Cola is not the company's only beverage: Pepsi sells Tropicana orange juice, Gatorade sports

drink, SoBe tea, and Aquafina water. The company also owns Frito-Lay, the world's #1 snack

maker with offerings such as Lay's, Ruffles, Doritos, and Cheetos. The Quaker Foods unit makes

breakfast cereals (Life, Quaker oatmeal), Rice-A-Roni rice, and Near East side dishes. Pepsi

products are available in 200-plus countries; the US generates 50% of sales. The companyoperates its own bottling plants and distribution facilities.

Top Competitors for PepsiCo, Inc.

These are as below:-

1. The Coca-Cola Company


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2. Mondelez International, Inc.

3. Dr Pepper Snapple

Coca-Cola Versus Pepsi

Competitive Analysis

Brand war is common in traditional media where they compete for attention through

advertisement. But in the age of social media, the bar has been raised by brands because they areno more in control of their messages. Letscheck out comparison.


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Brand, Logo name:


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SWOT Analysis of PEPSI

SWOT Analysis, which is based on thorough review of the business (corporation, product

category competition, customers and products), identities and evaluates the internal strengths and

weakness of the companies well as its external threats and opportunities. The marketing mix isdriven by the results of the SWOT analysis.

STRENGTH:-

Demand of Pepsi is more than its competitors.

Company has a very established name and a good reputation.

Pepsi has large market share than its competitors.

As the target customers of Pepsi is young generation, so Pepsi has more brand loyal customers.

Most of the customers are satisfied with the price of the Pepsi.

Pepsi is an international company and it has a very strong position internationally.

The environment of factory is very good and attractive.

Pepsi spends a lot of budget on its advertising.


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Pepsi has a very vast distribution channel and it is easily available everywhere.

Employees are also motivated.

Pepsi offers many discount schemes for customers time to time.

Pepsi Cola is sponsoring sports, musical concerts, walks.

The location of the Pepsi plant is utilized that all major markets of Lahore are within the reach of

the Pepsi plant within 30-45 minutes.

WEAKNESSES:-

Pepsi does not offer any sort of incentive or discount to its retailers.

Pepsi target only young customers in their promotions.

Crown of the disposable bottle is not good.

Demand of disposal bottle is declining.

Pepsi tin pack is not available in far off rural areas.

Pepsi is not considering many potential outlets like hotels, college canteens etc.

OPPORTUNITIES:-

Company may start entering rural areas also.

The company may also diversify its business in some other potential business.

Increased interest of people in musical groups, cultural shows and sports has provided an

opportunity for Pepsi to increase its sales through them.

THREATS:-

The main competitor of the company is the Coca Cola.

At the international level, Pepsi has a very strong competition with Coke. Coke has started itsadvertisements more effectively to increase their demand and it is a very strong threat for Pepsi.

Cola drinks are not good for the health so the awareness level of the people is increasing which is

a big threat to the company.


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PEST Analysis of PepsiCo

Political Factors

PepsiCo is nonalcoholic beverage and has to follow regulated by FDA with consistency.

Also, it deals in different markets and every market has its own policies and procedures that are

either stringent or either relaxed. Especially cross border situations are very different and Pepsi

has to adapt to these changes accordingly.

PepsiCos competitors use competitive pricing strategy and Pepsi has to always keep this in

mind.

PepsiCo has to also deal with governments focus on stricter water pollution norms and land

acquisition for new factories in different countries.

Economic Factors

Usually whenever there is an economic downturn faced by the economy, companies sales are

badly affected and they have to restructure their strategies.. Also, with falling profits companies

sometimes have to undergo downsizing. Economic scenario has a great influence on any

business. But the economic in 2008 was in Pepsis favor. It resulted in increased sales of its

beverages as people were jobless and were sitting at home, spending more time with family and

friends.


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Also, fuel prices greatly affect PepsiC0s transport costs as there is a lot of distribution involved.

Availability of labor is another very important economic factor .In some countries the labor is

quite expensive and if its cheap then sometimes labor is not well trained.

Social Factors

Social factors greatly affects Pepsi, as its a non-alcoholic beverage that deals worldwide it has

keep in mind stark and strict differences of cultures the worldwide. Mostly, the social

implications are seen in advertising campaigns like some countries have religious festivals, so

Pepsi has to keep in line with all these festivals and design advertising campaign accordingly to

cash upon the opportunity to the fullest.

Also the solid waste management program affects the operations at PepsiCo. PepsiCo has to be

extra careful when it comes to waste disposable in order to maintain its image of a sociallyresponsible firm.

PepsiCo is one of the few companies that operate almost in every country. PepsiCo has an

implementation of SAP software and wind power manufacturing in India .Also, PepsiCo

introduced plastic bottles and cans and came up with innovative and newer designs.

Technological:

With the technologies coming in, companies have changed their strategies and operations

accordingly. A recent trend that has been seen and something that almost every company is

inclining toward is Social Media.

The social media outburst has led to progressively interactive engagement with the buyers with

continuous comes about so Pepsi has to be aware of all the developments that take place with

keeping in mind the increased use of technology by youth for their benefit how can PepsiCo use

this to maintain and increase its customers loyalty.

PEST Analysis; by analyzing the political , social, environmental and technical aspects, the

company or its competitors can discover new possibilities and can identify the advanced warning

of threats. It shows the possible risks that can be due to change in company environment andallows the company to form accordingly rather than going against it. Furthermore, it gives you

purpose perspective of the new industry that the company goes into in and allows you discover

new places according to the requirement of the industry.

Lastly, it allows the business to avoid projects that have possibilities to fall short, for reasons

beyond control and finally it allows company to discover new markets.


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Balance Sheet for Pepsico, Inc.

Dec 29, 2012 Dec 31, 2011 Dec 25, 2010

AssetsCash And Cash Equivalents 6,297,000,000 4,067,000,000 5,943,000,000Short Term Investments 322,000,000 358,000,000 426,000,000

Net Receivables 7,041,000,000 6,912,000,000 6,323,000,000Inventory 3,581,000,000 3,827,000,000 3,372,000,000Other Current Assets 1,479,000,000 2,277,000,000 1,505,000,000Total Current Assets 18,720,000,000 17,441,000,000 17,569,000,000Long Term Investments 1,633,000,000 1,477,000,000 1,368,000,000Property Plant and Equipment 19,136,000,000 19,698,000,000 19,058,000,000Goodwill 16,971,000,000 16,800,000,000 14,661,000,000Intangible Assets 16,525,000,000 16,445,000,000 13,808,000,000Accumulated Amortization - - -Other Assets 1,653,000,000 1,021,000,000 1,689,000,000Deferred Long Term Asset

Charges

- - -

Total Assets 74,638,000,000 72,882,000,000 68,153,000,000

Liabilities

Accounts Payable 12,274,000,000 11,949,000,000 10,994,000,000Short/Current Long Term Debt 4,815,000,000 6,205,000,000 4,898,000,000Other Current Liabilities - - -Total Current Liabilities 17,089,000,000 18,154,000,000 15,892,000,000Long Term Debt 23,544,000,000 20,568,000,000 19,999,000,000Other Liabilities 6,543,000,000 8,266,000,000 6,729,000,000Deferred Long Term LiabilityCharges

5,063,000,000 4,995,000,000 4,057,000,000

Minority Interest 105,000,000 311,000,000 312,000,000Negative Goodwill - - -Total Liabilities 52,344,000,000 52,294,000,000 46,989,000,000

Stockholders' EquityMisc Stocks Options Warrants -123,000,000 -116,000,000 -109,000,000Redeemable Preferred Stock - - -Preferred Stock - - -Common Stock 26,000,000 26,000,000 31,000,000Retained Earnings 43,158,000,000 40,316,000,000 37,090,000,000Treasury Stock - - -16,745,000,000Capital Surplus 4,178,000,000 4,461,000,000 4,527,000,000Other Stockholder Equity -24,945,000,000 -24,099,000,000 -3,630,000,000Total Stockholder Equity 22,417,000,000 20,704,000,000 21,273,000,000Net Tangible Assets -11,079,000,000 -12,541,000,000 -7,196,000,000

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