Pepsico Case Study Essay

Many brands and products fall under the PepsiCo umbrella. With over 22 brands generating at least $1 billion in retail sales, including Doritos chips, Quaker oatmeal, Gatorade sports drinks and Mountain Dew soda (Esterl ,2014). Less than half of PepsiCo’s sales are from the sale of soft drinks. Despite the fact that beverage sales make up less than half of all incoming revenue, PepsiCo is often seen as a soft drink manufacturer. (Trefis Team 2015).”

PepsiCo has the potential to encourage consumers into drinking water and eating healthier snacks that they promote. Bottled water is rising and it is a healthy substitute to sugared drinks. Restaurants, clubs and venues are using their beverage to make special drinks. This is where alcohol industries gains more profit to their company. However, with the ability to adjust customer’s demands with new and appealing products it can dominate to success.

PepsiCo is one of the largest carbonated drink producers in the world, archrival Cocal-Cola. Under its soft drink brands, PepsiCo owned Pepsi, Mountain Dew, and the diet alternatives. In addition to carbonated soft drinks, PepsiCo also offers Tropicana orange, Gatorade sport drink, SoBe tea, and Aquafina water for its beverages product lines. PepsiCo also owned Frito-Lay, one of the world largest producers of snack, that offers products such as Lay’s, Dorritos, Cheetos, etc. Quaker Oats, producer of cereals and snack bars, is also a part of PepsiCo. PepsiCo offers many products in the-non alcoholic beverages and breakfast cereals industry. PepsiCo operates its own bottling and distribution facilities, and it produced roughly 50% of its sales in the United States. PepsiCo used three strategies in its annual report: colorful and large fonts of key financial numbers to demonstrate consistent financial results; easy-to-understand charts to show benefits of holding PepsiCo stocks; photos of products to show presents in global market and product growth.

PepsiCo Inc. is an American multinational foods and beverage manufacturer. It is headquartered in Purchase, New York and operates in more than 200 countries around the Globe. It is one of the world's leading brands in the beverages and grain-based snack foods industry. It was incorporated in 1965 in North Carolina by Donald Kendall and Herman Lay. The main product offerings by PepsiCo Inc. include soft drinks, energy drinks, coffee drinks, breakfast bars, cereal, rice snacks, side dishes, sports nutrition, and bottled water. The most recognized brands of the company are Pepsi, Starbucks, Quaker, Lay's, Mountain Dew, Mirinda, Gatorade, Aquafina, Lipton, Frito-Lay, Brisk, Tropicana,

PepsiCo, a global food and beverage leader, is the second largest soft drink business in the world. Initially called ‘Brad 's Drink’, Pepsi was created in 1893 by a pharmacist named Caleb Bradham. In the 1960’s, PepsiCo was established through the merger of Pepsi-Cola and Frito-Lay. PepsiCo today is a world leader in convenient snacks, foods, and beverages, with more than 280,000 employees and revenue reaching over $60 billion (PepsiCo, n.d.).

Increasing customer health consciousness: Most of PepsiCo’s soft drink lines are perceived as unhealthy by consumers (Bhasin, 2017). In an attempt to combat this image PepsiCo under Nooyi’s guidance decided to turn their focus to more health conscious product options (Cooper, 2014). PepsiCo’s move to focus on more healthy products led to startling declines in their U.S. soft drink market share (Cooper, 2014).

PepsiCo believes in expansion through mergers and acquisitions in both Indian and International markets. This way the company can have the advantage of gaining access to competencies and infrastructure without incurring direct costs, overheads and at the same time achieving organic growth.

Pepsico’s vision is to be the worlds premier consumer products company focusing on convenient foods and beverages .

PepsiCo is one of the world’s leading food and beverage companies. As a multi-national corporation, PepsiCo distributes its products in more than 200 countries and territories. PepsiCo has made it their mission to deliver top-tier financial performance while creating sustainable value for all their stakeholders. Their success derives from their global distribution, in addition to delivering for their consumers and customers, protecting the environment, sourcing with integrity, and investing in their employees. In 2015 their net revenue was over $63 billion. PepsiCo has 22 brands; each brand generates more than $1 billion in estimated annual retail sales. Some of the most popular divisions of PepsiCo include: Pepsi, Frito-Lay, Gatorade, Quaker and Tropicana. To better understand PepsiCo’s success we will analyze their role in the environment with suitability and their culture.

Today PepsiCo embraces itself with outstanding 300,000 employees worldwide. It is currently the world leader in convenient beverages, foods and snacks. It has four main branches widely referred to as the Pepsi family. These are: PepsiCo America’s beverages, PepsiCo Europe, PepsiCo America’s food and PepsiCo Asia, Middle East and Africa. Its outstanding leadership in the market has led to PepsiCo introducing more than a 100 brands under its trademark in the market and making its presence in nearly every part of the world. PepsiCo Headquarters are located in Purchase, New York (PepsiCo, 2012).

| * The international markets for colas and snacks continue to grow. In some countries, these have increased in double-digit figures. * Delivering more nutritious

The industry in which PepsiCo produces and distributes its specialty beverages is vast and ever changing. With sales of carbonated soft drinks declining the past five years in a row, PepsiCo needed to look elsewhere to stimulate growth in its core business. PepsiCo thought it had found this growth in the alternative beverage industry. Pepsi expanded its line of beverage to include brands such as Gatorade, Propel, Frappucino, Aquafina, and SoBe. The industry, which experienced massive growth in the mid 2000’s, has seen a more recent decline in sales of 12.3% for it’s specialty beverage segment between 2008 and 2009. This

The soft drinks industry also exhibits heavy competition elevating the buying power of consumers. Although Coca-Cola and Pepsi Companies are the players with much dominance in the soft drinks industry, other players are also broadening their market share every day. Coca-Cola and Pepsi Companies exhibited a combined market share of approximately 90 percent in the 1990s (Yoffie, 2011). However, Coca-Cola and Pepsi Companies today exhibit a market share of 70 percent in combination, with the other companies in the soft drinks industry exhibiting a combined market share of 30 percent (Yoffie, 2011). This heavy competition can be linked to the high availability of substitutes in the soft drinks industry. Although Coca-Cola and Pepsi Companies grew in popularity because of producing Carbonated Soft Drinks (CSDs), CSDs have gradually lost their appeal among consumers since customers are increasingly becoming health conscious. This

The Brand’s products are sold around the world hence the company finds customers all through out the world.. Pepsi manufactures markets and sells beverage concentrates and finished goods under various beverage brands. The company has extended its lineup since inception to offer top-selling choices the consumer demands and evolving lifestyle.

New and emerging flavors, as well as the discovery of new benefits from current flavors, are driving sensory innovation and new opportunities in the positioning and promotion of standard or traditional beverages. Future Flavor Trends in Soft Drinks is a new management report published by Business Insights that provides a comprehensive review of current, new and emerging flavors in the soft drinks sector. This report presents and evaluates the role of flavor and drinks manufacturers in flavor innovation and key flavor trends, and analyzes fast growth flavors in key categories in terms of product launches. Discover the areas of opportunity in soft drinks flavors and understand how these opportunities fit into larger soft drinks industry trends with this new report...