SWOT ANALYSIS OF PEPSI

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SWOT ANALYSIS OF PEPSI COMPANY NAME-RUPRAJ SAHA INSTITUTE-BRAINWARE COLLEGE OF PROFESSIONAL STUDIES COURSE-BBA

Transcript of SWOT ANALYSIS OF PEPSI

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SWOT ANALYSIS OF PEPSI COMPANY

NAME-RUPRAJ SAHAINSTITUTE-BRAINWARE COLLEGE OF PROFESSIONAL STUDIESCOURSE-BBA

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SWOT ANALYSIS OF PEPSI COMPANY

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WHAT IS SWOT ANALYSIS?SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune.

THE FULL FORM OF SWOT ISS-STRENGTH>CHARACTERSTICS OF THE BUSINESS OR PROJECT TEAM THAT GIVE IT AN ADVANTAGE OVER OTHERS

W-WEEKNESS>ARE CHARACTERSTICS THAT PLACE THE TEAM AT A DISADVANTAGE RELEATIVE TO OTHERS

O-OPPORTUNITI>EXTERNAL CHANCES TO IMPROVE PERFORMANCES IN THE ENVIRONMENT

T-THREATS>EXTRNAL ELEMENTS THAT CAUSE TROUBLE OF THE BUSINESS

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DIAGROUM OF SWOT ANALYSIS

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INTRODUCTIONPEPSI IS A CARBONATED SOFT DRINKS PRODUCED &

MANUFACTURED BY PEPSICO .THE DRINK WAS FIRST MADE IN THE 1890 PHRAMICST CALEB BRADHAN IN NEW BERN ,NORTH CAROLINA .THE BRAND WAS TRADEMARKED ON JUNE 16,1903 .THEY HAVE BEEN MANY PEPSI VARIENTS PRODUCED OVER THE YEAR SINCE 1898.IN 1903 BRADHAM MOVED THE BOTTLING OF PEPSI COLA FROM HIS DRUGSTORE TO A RENTED WAREHOUSE.BRADHAN 7968 GALLONS OF SYRUP.THE NEXT YEAR PEPSI WAS SOLD IN SIX OUNCE BOTTLE AND SALES INCREASED 19,848 GALLONS.IN 1926 PEPSI RECIVED HIS FIRST LOGO REDESIGN SINCE THE ORIGINALDESIGN OF1905

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SHORT DETAILS

TYPE>> PUBLICINDUSTRY>>FOODS &BEVARGESFOUNDERD>>NORTH CAROLINA.US (1965FOUNDER(S)>>DONALD KENDALL&HERMAN LAYHEADQUATER>>NEW YORK.US

KEY PEPOPLE>>INDRO NOYY(CHAIRMAN &CEO)PRODUCTS>>>>COCA COLA/BRU COLA/TURKA BIG

COLA

REVENUE>>>US$ 66.504 billion (2011)NET INCOME>>US$ 6.462 billion (2011)TOTAL ASSETS>>US$ 72.882 billion (2011)TOTAL EQUITY>>US$ 20.899 billion (2011)EMPLOYEES>>297,000 (2011)

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PRODUCT OF PEPSI COMPANY

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CURRENT POSITIONPEPSI CO IS THE SECOND LARGEST FOOD & BEVEREGE COMPANY IN THE WORLD.ITS MANUFACTURES MARKETS AND SELLS VARIOUS OF SALTY ,SWEET& GRAIN BASED SNACKS. CARBONATED & NON CARBONATED BEVERAGES PEPSI CO SEEKS TO ACHIEVE GROWTH & LONG TERM VALUE IN ITS OPERATIONAL ACTIVITIES BY CREATINGCOMPETITIVE ADVANTAGES THROGH NEW PRODUCT INNOVATION……..IN 2006 PEPSI ACQUIREDIZZE BEVERAGE COMPANY NAKED JUICE AND STACYS PITA CHIPS COMPANY IN THE US ,STAR FOODS IN POLAND& BLUEBIRD FOODS IN NEW ZEALAND.IT HAS EXPANDED ITS PRESENCE NON CARBONATED DRINKS AS WELL AS SNACKS.

THE COMPANY’S VOLUME GREW BY 5.5% IN 2006COMPARED WITH 2005 IN 2007,THE COMPANY PLANS TO EXPAND ITS MARKET SHARE THROUGH FURTHER JOINT VENTURE.IN THE YEAR 2009 COMPANY HAS ITS REVENUEUPTO 43.2BILLION US $ & ITS NET INCOME WAS 8.04BILLION US $

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IMPORTANT DIALOGUES OF PEPSI”S ADVERTISEMENT

1939-1950>"Twice as Much for a Nickel“

1990-1991>"Yehi hai right choice Baby, Aha“

1999-2006> “Yeh dil mange mor”

2006-2007>"Why You Doggin' Me"/"Taste the one that's forever young“

2002> “Change the World"

2009>"Yeh hai youngistaan meri jaan"

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STRENTH BRANDING>ONE OF THE PEPSI CO TOP BRAND IS OF COURSE

PEPSI,ONE OF THE MOST RECOGNIZED BAND IN THIS WORLD.AS OF 2008 ,IT RANKED 26th AMONG TOP 100 GLOBAL BRANDS.PEPSI CO BRANDS ARE DIET PEPSI/GATORADE MOUNTAIN DEW,/LAYS POTATO CHIPS/TROPICANA BEVARAGE/ etc……THE STRENGTH OF THESE BRANDS IS EVIDENT IN PEPSI CO IN OVER 200 COUNTRIES….

DISTRIBUTION>THE DISTRIBUTION PROCESS OF PEPSI COMPANY IS A VERY GOOD POINT OF THIS COMPANY.IT DELIVER ITS PRODUCTS DIRECT MANUFACTURING PLANTS & WAREHOUSES TO CUSTOMER WAREHOUSES & RETAIL STORES..THIS PART OF A THREE PRONGED APPROACH WHICH ALSO INCLUDES EMPLOYEES MAKING DIRECT STORE DELIVERIES OF SNACKS & BEVARGES & THE USE OF THIRT PARTY DISTRIBUTION SERVICES.

RELEATIONSHIP SELLING>THE STRONG POINT OF THIS COMPANY IS RELEATIONSHIP SELLING…THEY GET TO KNOW THEIR CUSTOMERS EACH & EVERYONE AND THEY CAN EASILY KNOW THEIR CONSUMER DEMAND,TASTE& PREFERANCE ETC

KNOWLEDGE>THEIR COMPETITORS ARE RETAILERS &PUSHING BOXES .THEY KNOW THE SYSTEMS,NETWORK,CONNECTIVITY PROGRAMMS & DATA MANAGEMENT.

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ONE OF THE MOST POPULAR & GLOBALLY RECOGNIZED BRANDS IN FOODS & BEVERAGE.SO GOODWILL IS ONE OF THEIR STRENGTH POINT.

PEPSI ALWAYS REFRESH THEIR PROJECT AND LAUNCHING THEIR NEW IDEA TO CREATE NEW PRODUCT FOR THE CONSUMERS..THEY ALWAYS USE NEW TECHNOLOGY TO THEIR BUSINESS FIRM FOR MAINTAINING THEIR IMAGE IN THE MARKET.

EXCELLENT BRANDING ADVERTISEMENT GOOD MARKETING WITH GLOBAL CELEBRITY AS BRAND AMBASSADOR IS VERY IMPORTANT SITE FOR PEPESI CO…

TIE UP WITH MANY SPORTS EVENTS,MUSIC CONCERN etc…

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MARKET SHARE POSITION

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OPERATING PROFIT SCEENARIO

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WEEKNESS OVERDEPENDS ON US MARKET>

DESPITE ITS INTERNATIONAL PRESENCE .52% OF ITS REVENUE ORIGINATED IN THE US.SOMEHOW THIS CONCENTRATION BECAME A CAUSE OF LABOUR UNREST,STRIKES,& IMPACT OF CHANGING ECONOMIC CONDITION.SO,IT’S A BURNING WEEKNESS POINT OF PEPSI COMPANY.

IMAGE DAMAGED DUE TO BAD PRODUCT>RECENTLY SOME OF PEPSI COMPANY”S PRODUCTS ARE NOT VERY GOOD.SOME INSECTS & MANY OTHER ELEMENTS WERE FOUND IN BOTTLE OF PEPSI…SO ALL THIS INCIDENT DAMAGED THE PEPSI’S GOODWILL & ALSO THEIR IMAGE.

LOW PRODUCTIVITY>IN 2008 PEPSI CO HAD APPROXIMETLY 198000 EMPLOYEES.ITS REVENUE PER EMPLOYEES $214,439 WHICH IS LOWER THAN ITS COMPETITORS.THIS MAY INDICATES COMPERITIVELY LOW PRODUCTIVITY ON THE PART OF PEPSI CO EMPLOYEES

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THE MAJOR STORES IN VARIOUS CITY FOR EARNING HIGH PROFIT THEY SALE THE PRODUCTS OF PEPSI COMPANY IN A HIGH PRICE TO THE CONSUMERS…AS A RESULT SOME OF THE CONSUMERS ARE NOT ABLE TO PURCHASE THE PEPSI’S PRODUCT….SO IT IS A WEEKNESS POINT FOR PEPSI COMPANY…..

STRONG COMPETITION IN THE AREATED DRINKS SEGMENT FROM COCA COLA MEANS HIGH BRAND SWITCHING

CASES AGAINST THEIR BAD PRODUCTS BY THE SOCIETY’S PEOPLE ARE CAUSES FOR DAMAGING THEIR GOODWILL & THEIR BRAND IMAGE

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OPPORTUNITY INTERNATIONAL EXPENSION>

PEPSI CO IN THE MIDST OF MAKING A $1000 MILLION INVESTMENTIN CHINA & A $500 MILLION INVESTMENT IN INDIA.BOTHINITIATIVES ARE PART OF ITS EXPENSION INTO INTERNATIONAL MARKETS & A LISSENNIG OF DEPENDS ON US SALES.THE COMPANY PLANS ON MAJOR CAPITAL INITIATIVE IN BRAZIL & MEXICO….

GROWING SAVORY SNACKS & BOTTLED WATERD MARKET IN US

PEPSI CO POSITIONED WELL TO CAPITALIZE ON THE GROWING BOTTLE WATER MARKET WHICH IS PROJECTED TO BE WORTH OVER $24 MILLION BY 2012.PEPSICO PRODUCTS SUCH AS CHETOS CHIPS,TOSTITOS TORTILLA CHIPS,FROTOS CORN CHIPS,SANITITAS ARE ALSO BENEFITING FROM A GROWING SAVORY SNACKS WHICH IS PROJECTED TO GROW AS MUCH AS 27% BY 2013,REPRESENTING AN INCREASE OF $28 MILLIONS

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INTERNET MARKETING THE INCREASING OF INTERNET MARKETING IS VITAL POINT OF PEPSI’S OPPORTUNITY PART .THEIR CUSTOMER GET MORE HELP&BENEFIT FROM IT. & PEPSI ALSO AS WELL AS GIVES THEM IN BETTER SERVICE FROM THIS SYSTEM.

FOOD DIVISION SHOULD EXPAND INTERNATIONALLY

NEW PRODUCT CAN EASILY ENTERD IN THE MARKET

FOCUSING ON THEIR ADVERTISEMENT THEY ADD THEIR PRODUCT WITH SOME VARIOUS ARTIST & MANY BRAND AMBASADER TO INCREASING THEIR PROFIT.

PEPSI PURCHASE MILLIONS OF POTATOS & FRUITS TO PRUDUCED THEIR CHIPS WHICH INDIRECTLY HELP THE AGRICULTURE SYSTEM…..

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THREATS INTENCE COMPETITION> PEPSI’S ONE OF THE THREATS POINT IS INTENCE COMPETITION .THE COCA COLA COMPANY IS PEPSI CO’S PRIMARY COMPETITORS.BUT OTHERS INCLUDE NESTLE ,GROUP DENONE & KRAFT FOODS.INTENCE COMPETITION MAY INFLUENCE ADVERTISING & SALES PROMOTION INITIATIVE UNDERTAKEN BY PEPSI CO……

DECLINE IN CARBONATED DRINK SALES> SOFT DRINK SALES ARE PROJECTED TO DECLINE BY AS MUCH AS 2.7% BY 2012 DOWN $ 63.49 MILLION IN VALUE.PEPSI CO IN THE PROCESS OF DIVERSIFICATION BUT IT IS LIKELY TO FEEL THE IMPACT OF THE PROJECTED DECLINE…

POTENTIAL DISRUPTION DUE TO LABOUR UNREST> BASED UPON RECENT HISTORY PEPSI CO MAY BE TO STRIKES & OTHER LABOUR DISPUTES .IN 2008 STRIKE OF PEPSI CO DISRUPTED MANUFACTURING & DISTRIBUTION

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OVER 50% SALES OF THE COMPANY SALES COME FROM FRITO LAY THIS IS A THREAT FOR THE COMPANY IF THE MARKET TAKES A DOWNTURN……

PEPSI IS NOW COMPETES WITH CADBURY ,COCA COLA WHICH ARE WELL RUN & FINANCIAL SOUND COMPETITORS…..

LARGE NUMBER OF SUBSTITUES ARE AVAILABLE IN THE MARKET THIS ALSO THREATS FOR PEPSI…

PEPSI IS BLAMED FOR PESTICIDE RESIDUES IN THEIR PRODUCTS IN ONE OF THEIR MOST PROMISING EMERGING MARKET e.g INDIA

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RECOMMENDATIONS PROMOTE THEIR PRODUCT THROUGH GOOD MARKETING

& ADVERTISEMENT

PRODUCT SHOULD BEAR THE BRAND NAME IN THE ADVERTISEMENTS..

TRY TO MAINTAIN THE GOVERNMENT REGULATION AGAINST CARBONATED DRINKS

PRODUCE A RANGE OF HEALTHY SUGAR FREE ALTERNATIVE BRANDS

IMPROVING THEIR BUSINESS STRATEGY…

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THANK YOU

HAVE A NICE DAY