Enviromental Scanning

PepsiCo is one of the largest U.S based food and beverage companies. With a strong heritage. What is now, PepsiCo was first established in the late 1800’s. What started as a small one-man operation has grown into a food and beverage megabrand, with strong competition from both sectors of the food and beverage industry. With fierce competition from companies such as Coca-Cola, Kraft foods and ConAgra, PepsiCo must continue to innovate while providing customers with quality products that are priced competitively to remain relevant.

The Coca-Cola company has been in business since its inventor began selling it in drug stores in 1886 (The Coca-Cola Company, 2009). Pepsi-Cola was invented a short time later in 1898, but at the time it was called “Brad’s drink.” It was later renamed Pepsi-Cola in 1902 (Butler, 2006). Since those early days when the sodas were invented, Coca-Cola and Pepsi have been in competition with each other for the domination of the world’s soda market. Over the course of more than a century, sales have continued to rise for both companies, and they both consistently earn a profit. Both companies

By consulting the above graphs and charts it can be concluded that Pepsi has been a strong competitor to Coke and that throughout history they have been performing at comparable rates. Each has a similar background and customer base, but there are some differences between the two companies and their individual performance overall. It is clear that Pepsi holds a major stake in the market and is somewhat ahead of Coca-Cola in market share and productivity. Although both companies appear to be competing neck-to-neck Pepsi appears to be performing at a slightly higher rate than Coke, despite the popularity of both. Coke is wildly popular and is considered an American institution, but many seek different tastes and this is where Pepsi has been taking some of the market share as some consumers opt for Pepsi as their choice of beverage.

PepsiCo is the 3rd largest manufacturer of food and beverage products with a total just shy of 30 billion dollars in sales, while Coca Cola is the 5th largest manufacturer of food and beverage products with a total of 21.5 billion in sales. The products that both PepsiCo and Coke Cola concentrate their manufacturing efforts on are products that are easily consumed and/or prepared. Therefore, PepsiCo leads the sales in convenient food and beverage category, sustaining 22% of sales. Coca Cola also has a large percent of total sales in this category coming in under PepsiCo with 12%. One important thing to remember when evaluating PepsiCo and Coca Cola is that although PepsiCo may outperform Coca Cola in a number of key statistics, this is not the case when

With Pepsi having beverage and snacks a competitor of the company will have to have beverage, snacks, and more. The competitor will have to add more just too top Pepsi sales. The company must be a step or two ahead of the game at all

Pepsi is one of the world 's most iconic and recognised brands globally. Always innovating and adapting its strategy to compete with Coca-Cola, they offer a young image to the public by reworking their design to meet with the current consumer needs. Whether it 's through celebrity endorsements or design trends, Pepsi have always aimed to create a relationship with the consumer through humour. To quote their selling point, 'Now is what you make it. ' Today the brand includes three products- Pepsi, Diet Pepsi and Pepsi Max, with the latter being the biggest selling in the UK. Although Pepsi have tried to take different approaches to differentiate themselves from their biggest competitor Coca-Cola, their first beginnings are very familiar.

From their innovative products to their large global involvement, PepsiCo is a company that is constantly growing and shaping the industry. It is a leading food and beverage company that operates as a manufacturing service as it makes it’s own products and distributes them. PepsiCo’s current Chairman is Indra K. Nooyi and their headquarters are in Purchase, New York. The corporation has around 274,000 employees and PepsiCo is regarded very highly on multiple Forbes lists and is extremely popular around the globe. The company PepsiCo was established after the merge of both Pepsi-Cola and Frito-Lay in 1965. The original beverage company, Pepsi-Cola, was created in the late nineteenth century. It is known as a mainly beverage focused company, but there are many more brands and products associated with PepsiCo other than beverages and it has an extremely diverse portfolio. Some of their brands are Gatorade, Doritos, Quaker, and Lay’s. PepsiCo is regarded as having monopolistic competition despite Pepsi and Coke indefinitely controlling the beverage industry, making it extremely difficult for others to join the industry. These two companies have large tension between each other and product differentiation is a large part of their respective competitive strategies. Although their products are not much different from each other, they are perceived to differ from each other in order to persuade consumers to lean towards either company.

It has taken much more than simply the brand and product to grow Coca-Cola in the number one leader in the soft drink market. Over the past 100 plus years, Coca-Cola has built a huge network of distribution and manufacturing networks. These collaborations that are superior to all others and all types of relationships are a distinctive competency for Coca-Cola. The way that they organize and plan their contracts has proven to be extremely successful and continues to keep Coca-Cola at the top of the market. They have been able to build relationships with suppliers, buyers, bottlers, manufactures, retailers and consumers that are strengthened by the degree of loyalty from both sides of these relationships. They continue to manage their company

This research paper pinpoints the financial analysis of Pepsi Co, Inc., namely its profitability; liquidity; solvency and operating outcome with respect to its competitors, Coca-Cola Inc., and Dr. Pepper Snapple Group. The upshot of Pepsi’s financial breakdown will assist the soda drink maker to improve its production approach and keep its flagship brand aggressive and competitive.

PepsiCo’s corporate strategy had diversified, in 2008, the company into salty and sweet snacks, soft drinks, orange juice, bottled water, and ready-to-eat drink teas and coffees, purified and functional waters, isotonic beverages, hot and ready-to-eat breakfast cereals, grain-based products, and breakfast condiments. Strategies that kept their brands at the top were tied to new product innovation, close relationships with distribution allies, international expansion, and strategic acquisitions. A new element of PepsiCo’s corporate strategy was product reformulations to make snack

Sections 1 2 3 4 5 6 7 Project Team Our understanding of PepsiCo Market / Industry analysis Financial analysis Portfolio analysis Recommendations Q&A

Year to date the S&P Soft Drink Index fell 3.8% versus a 1.4% rise in the S&P 1500. During 2002, the industry index significantly outperformed the broader market with a decline of 8.0% versus a 22.5% decrease in the S&P 1500. Performances in recent months has been affected by volatility in the shares of Coca-Cola as investors question whether drink volumes and earnings will resume their historical growth patterns. Shares of PepsiCo have also experienced some weakness on concerns of slowing growth. We however expect the industry to outperform the market in the near term with rebounds in growth and margin trends. Sales and earnings for PepsiCo in 2003 are expected to show positive gains, benefiting from favorable material costs and retail pricing in the U.S Domestic unit sales. Volumes in 2003 should benefit from increased penetration into non-traditional distribution channels and growing consumer demand for non- alcoholic

Pepsi Co is engaged in manufacturing, marketing and distribution of food and beverages which includes carbonated, non carbonated drinks, snacks and grains. Its main competencies are its marketing and distribution network, it does not believe in competing with its competitors but rather defines its own market by selecting their own target audience. It has formulated it strategy in reference to its external environment and internal capabilities. The company selects is own internal strengths and tries to capitalize on them, it also seeks for improving upon its opportunities and find ways to combat its threats. Pepsi being having the second major share in the F&B industry is constantly developing new products to improve its

The focused Corporation of the subject strategic proposal is PepsiCo Beverages North America. This company was originally founded in 1898 by a North Carolina druggist. PepsiCo Beverages North America (herein referred to as the ‘Company’) sells several brands of consumer beverages in the United States and Canada. The various beverage products span through carbonated soft drinks, juices, readymade teas, isotonic sports drinks, bottled water, and enhanced waters. Several established brands include Diet Pepsi, Mountain Dew, Gatorade, Tropicana products, Aquafina Water, Sierra Mist, Mug, Propel, Sobe, and Dole. Refer to the Competitor Analysis section for in depth product information and listings.

Pepsi Co 's assignment taken as a whole is to amplify the value of its shareholder 's investment through sales intensification, expenditure gearshift and prudent investment of resources (Bongiorno, 1996, p 71). In this pose, Pepsi believes that its moneymaking triumph depends on providing safe and quality drink to its consumers and customers while adhering to the highest standards of truthfulness. Pepsi Co 's product portfolio encompasses sixteen labels that produce enough cash for the company. The most popular of these brands include Pepsi Cola, and Mountain Dew.