SweetHina Pepsi Co

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Presentation On Pepsi

Presented For:Oral Communication

Presented By:

HINA FATIMASOHAIL KHAN

SADAF RANI

BAKHT ROZA

Presented To:MISS SADIA


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Introduction

Pepsi is a carbonated soft drink produced and

manufactured by PepsiCo, and PepsiCo is the AmericanMultinational Company and world leader in convenient snacks,

foods and beverages with revenues of more than $43 billion

and over 198,000 employees.

Pepsi has been bringing fun and refreshment to consumers

for over 100 years. The drink was first made in the 1890s by

pharmacist Caleb Bradham in New Bern, North Carolina. The brand

was trademarked on June 16, 1903. There have been many Pepsi

variants produced over the years since 1898.

Pepsi can be found in nearly 200 countries around the globe.


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WORLDS HEADQUARTERS

PepsiCo World Head quarters is located in

Purchase at New York.


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Indra Krishnamurthy Nooyi , who was ranked No.11 in Fortune's list of the most powerful women

in business, joined the company in 1994 and was

named CEO in 2001. She was born in India and has

done her education in India .

She has been the chief executive of PepsiCosince 2006. During her time, healthier snacks have

been marketed and the company is striving for a

net-zero impact on the environment.This focus on

healthier foods and lifestyles is part of Nooyi's

"Performance With Purpose" philosophy.
http://en.wikipedia.org/wiki/Indra_Nooyihttp://en.wikipedia.org/wiki/Indra_Nooyihttp://en.wikipedia.org/wiki/Indra_Nooyihttp://en.wikipedia.org/wiki/Indra_Nooyihttp://en.wikipedia.org/wiki/Indra_Nooyi


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PEPSI

Ingredients

1. Syrup

2. Sugar

3. Colorings

4. Phosphoric acid

5. Caffeine

6. Citric acid

7. Natural flavors


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Vision & Mission Statement

VisionOur vision is to be the world's best beverage company.Being the best means providing outstanding quality,service, cleanliness and value, so that their every customeris contented and happy with their products.

Mission

To be the world's premier consumer Products Companyfocused on convenient foods and beverages. We seek toproduce healthy financial rewards to investors as weprovide opportunities for growth and enrichment to ouremployees, our business partners and the communities inwhich we operate. And in everything we do, we strive forhonesty, fairness and integrity.


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Pepsi-Co Brands


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Frito-Lay merged with Pepsi-Cola in 1965.Frito-Lay

brands account for 59% of the U.S. snack chip industry.

The Frito Lay delivers a wide variety of fun and

environmentally friendly foods in around 160 countriesand territories.


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PepsiCo acquired Tropicana in 1998. Today the Tropicana

brand is available in 63 countries. Tropicanas pure andfresh fruit juice in easy to handle packages has attractedthe consumers.


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PepsiCo merged with The Quaker Oats Company in2001. Quaker's power-packed line of popular brands

expands companies portfolio with a wide range of healthyfood choices.


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Gatorade sports drinks was acquired by the Quaker OatsCompany in 1983 and became a part of PepsiCo with themerger in 2001. Gatorade is the first isotonic sports drink.

Created in 1965 by researchers at the University of Florida forthe school's football team, "The Gators," Gatorade is now theworld's leading sport's drink.


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Other Brands.


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FINANCIAL ANALYSIS


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Equity Ratio

:

ER= Total Equity x 100

Total Assets

2006 15447 / 29930 x 100=51%

2007 17325/ 34628x 100

=50% 2008 12203 35994x 100

=33%

0

1

2

20062007

2008

Equity ratio


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Current Ratio

CR =Current Assets/ CurrentLiabilities

2006=9130/6860=1.33

2007=10151/7753=1.30

2008=10806/8787=1.22

1.1

1.2

1.3

1.4

20062007

2008

Current Ratio


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DEBT RATIODR= Total Liability x100

Total Assets

2006 14562 / 29930 x 100=48.65%

2007 17394/34628 x 100=50.23%

2008 23888/35994 x 100=66.36%

0.00%

50.00%

100.00%

2006 20072008

DEBT RATIO


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G.P Rate = G.P___

T.Sales

2006 = 19375 x 100 = 55.14%35137

2007 = 21436 x 100n =54.30%

39474

2008 = 22900 x 100 =52.94%

43251

Rate of G.P on Sales

51.00%

52.00%

53.00%

54.00%

55.00%

56.00%

2006 2007 2008

Rate of G.P on Sales


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Debt to Equity RatioDebt to Equity Ratio = Total Liabilities

Total Stockholders Equity

2006 14562/15447

=0.94

2007 17394 / 17325

=1.0039

2008 23888/12203

=1.95

0

1

2

20062007

2008

Debt to Equity Ratio


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EARNING PER SHARE

EPS=Net Income/No. ofShares

2006

5642/1782=3.16

20075658/1782=3.17

20085142/1782=2.88

2.5

3

3.5

20062007

2008

Earning Per share


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RECEIVABLE TURNOVER

RATIOREC.turnover in days = net sales

Average receivable

2006 35137 / 3725 = 9.43

In Days 365/9.43 =39days

2007 39474 / 4389 =8.99

In Days 365/8.99 = 41days

2008 43251/4683 =9.23

In Days 365/9.23 = 39days

3839

40

41

2006 2007 2008

Receivable turnover in days


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WORKING CAPITAL

WORKING CAPITAL=C.A-C.L

2006=9130-6860=2270

2007=10151-7753=2398

8008=10805-3787=20191800

2000

2200

2400

20062007 2008

working capital


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TIME INTREST EARN

TIME INTREST EARN=

EARNING BEFORE INTREST TAX

INTREST EXP

2006=6989/239=29.24

2007=7631/224=33.32

2008=7021/329=21.34

0

20

40

2006 2007 2008

Time interest earned


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Inventory Turnover ratio

Inventory turnover =

Cost of Goods Sold

Average inventory

2006 15762/ 1926 =8.18

In Days 365/8.18 = 45 DAYS

2008 18038/ 2290 = 7.8

In Days 365/7.8 = 46 DAYS

2009 20351/2522 =8.06 In Days 365/8.06 = 45 DAYS

44.4

44.644.8

45

45.2

45.4

45.6

45.8

46

2006 2007 2008

Inventory turnover in days


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COMPETITOR

The main competitor ofpepsiiscoca cola


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COCA COLA THE BRAND KNOWN AROUND THE WORLD.

IT IS THE LARGEST PRODUCER AND DISTRIBUTOR OF THECOLAS IN THE WORLD.

COLA SPENDING A LOT OF MONEY ON THE ADVERTISING

COMPETITORS


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Q: Who has been wining the war?

1950: Coke have 47% and Pepsi have 10%



2000:Coke have 44% and Pepsi have31.4%2006:Coke have 43.1% and Pepsi have 31.7%.

ABOUT THE WINING WAR OF THE

COMPETITION


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MARKETING


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Different Media

Television

Cable food network

Frequency (super bowl,

playoffs)

Vehicles

Public buses

Taxi

Print

Newspaper (food category)Magazines (most popular

ones)

Billboards

Internet


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Media Strategies

Use the media to attract non-Diet Pepsi usersthrough TV, radio

Print adds

Advertise Diet Pepsi during warmer months MaySeptember

The target audience will be exposed to Diet Pepsicommercials for 10 Wks


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Target market

The target market of Pepsi is mostly young

people of ages between 14 & 30. And also

target hotels, restaurants, schools, universities

and stores.

In short generation-y is target market of Pepsi


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BEVERAGES
http://en.wikipedia.org/wiki/File:Pepsi_2009.jpg


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PRODUCTS Mix

( foods & beverages )Beverages mix:

1. Carbonated categories:

- Fun for you portfolio ( Pepsi Cola, Diet Pepsi )

2. Non-carbonated

- Better-for-you and Food-for-you portfolio

- ( Tropicana series )
http://en.wikipedia.org/wiki/File:Pepsi_2009.jpg


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Carbonated Drinks Categories

Pepsi

Diet Pepsi

Caffeine Free Diet Pepsi

Diet Pepsi Max

Jazz Diet Pepsi

Diet Pepsi Lime

Diet Pepsi Vanilla

Pepsi Wild Cherry

Diet Pepsi Wild Cherry

Pepsi ONE

Mountain Dew

Diet Mountain Dew

Mirinda Slice

Aquafina

Aquafina Alive

Aquafina FlavorSplash

Aquafina Sparkling
http://en.wikipedia.org/wiki/File:Pepsi_Max_can.jpg


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Non-carbonated Drinks Category

Tropicana Pure Premium juices

Tropicana Twister juice drinks

Tropicana Smoothies

Tropicana Pure Tropics juices

Dole juices (License)

Tropicana 100 juices

Naked Juice


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MATRIX ANDSTRATEGIES


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SWOT

Strength1. Company has a very established name and a good reputation.

2. Pepsi has large market share than its competitors.

3. As the target customers of Pepsi is young generation, so Pepsi hasmore brand loyal customers.

4. Pepsi is an international company and it has a very strong positioninternationally.

5. The environment of factory is very good and attractive.

6. Pepsi spends a lot of budget on its advertising.

7. Pepsi has a very vast distribution channel and it is easily availableeverywhere.

8. Employees are also motivated.

9. Pepsi offers many discount schemes for customers time to time.10. Pepsi Cola is sponsoring sports, musical concerts, walks.


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SWOT Cont

Weaknesses1. Pepsi does not offer any sort of incentive or discount to its

retailers.

2. Pepsi target only young customers in their promotions.

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

4. Pepsi is not considering many potential outlets like hotels,

college canteens etc.

5. Unavailability of all products of Pepsi at the same time at the

same outlet.

6. Offering low margins to its retailers

7. Political Franchises

8. Not all the PepsiCo products bear the company name


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SWOT Cont

Opportunities1. Demand of Pepsi is more than its competitors.

2. Increase in population

3. Company may start entering rural areas also.

4. The company may also diversify its business in some other potentialbusiness.

5. Increased interest of people in musical groups, cultural shows andsports has provided an opportunity for Pepsi to increase its salesthrough them.

6. Increasing demand of beverages among young generation will increasegrowth rate in this industry.

7. Usage of products among target market consisting young generation

has been increasing day by day.8. Changing Social Trend

9. Distribution of snack foods

10. Diversification


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SWOT

Threats1. Tough rivalry among competitors

2. Cola drinks are not good for the health so the awareness level ofthe people is in creasing which is a big threat to the company.

3. Economic downfall might bring meaning full damages.4. Government regulations

5. Law & order situations of the country

6. Non-Carbonated Substitutes

7. Political Instability

8. Threat of Labor Strikes9. Shortage of resources

10. Shortage of electricity


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TWOS Matrix Of Pepsi

We have discussed SWOT analysis of Pepsi-Co

in our previous slides and now here we are

going to discuss the TOWS Matrix of Pepsi-Co.


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SO Analyses & Developing Strategies

S6+O1 S6=Pepsi spends a lot of budget on its advertising

O1=Demand of Pepsi is more than its competitors Pepsi has a budget capacity to avail or maintain its products demand.

Advertising/Promotional Strategy in order to maintain or increase itsdemand.

S7+O3 S7=Pepsi has a very vast distribution channel and it is easily available

everywhere.

O3=The company may also diversify its business in some otherpotential business

Pepsi has a strong and wide distribution channel which will help inplacement of new products also.

Product diversification


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ST Analyses & Developing Strategies

S6+T1+T2 S6=Pepsi spends a lot of budget on its advertising

T1=Tough Rivalry Compaction

T2= 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.

Pepsi has a huge budget for advertising. Advertising/Promotional Strategy in order to place its positioning step ahead among its

competitors. Awareness Campaigns in order to increase people awareness about products benefits while

using its brand.

S4+T3+T9 S4=Pepsi is an international company and it has a very strong position internationally.

T3=Economic downfall might bring meaning full damages. (Cost of raw material,purchasing power etc)

T9=Shortage of electricity Wide Target market and huge market segmentation.

Market Development will help to maintain its profits if any undue or uncertain events will occur.

Backward Integration will have its own electricity generation equipments


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WT Analyses & Developing Strategies

W6+T1 W6= Political Franchises


Political Franchises may lead to the conflicts and it could be the strengthfor the competitors.

Forward Integration In order to have its own distribution channels

W7+T1

S4=Not all the PepsiCo products bear the company name.


Promotional Campaign for individual products

Promotional Campaign will help to increase awareness among peopleabout every products of the company.


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WO Analyses & Developing Strategies

W5+O8 W5= Offering low margins to its retailers

O8= Distribution of snack foods

Local brands of snack foods provides higher margins.

Pricing strategywill enhance the retailers interest to stock companys

snack products.

W4+O1

W4=Unavailability of all products of Pepsi at the same time at thesame outlet.

O1=Demand of Pepsi is more than its competitors.

Unavailability of every product might lead bad image on the customerswhich will directly benefits to the competitors.

Placement strategy is more important in order to have every productsof the company at the same outlet.


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Internal Factors Evaluation

It is based on thorough review of the

corporation, product category, competition,

customers, identities and evaluates the

internal strengths and weakness of thecompanies.

Its include Strengths & Weaknesses


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External Factors Evaluation

It is based on thorough review of the

Economic, Demographic, Technological,

Political & Legal, Social & Cultural Factors.

Its include Opportunities & Threads


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