Pepsico Case Study Essay

From its humble beginnings as a ‘mom-and-pop’ beverage manufacturing company to its current business as a strong subsidiary of its parent corporation, the Coca-Cola Company, Glacéau has consistently maintained its position as a leading brand within the enhanced bottled water and soft drink markets.1 Coinciding with Glacéau’s decision to expand its product distribution to the entire United States in 2000, the company released a new line of refreshing beverages now known internationally as Vitaminwater.2 Since its inception, Vitaminwater has impressively become much of its own brand, now offering nearly twenty flavors that are available via commercial bottles, fountain drink stations, and Coca-Cola Freestyle machines.3 In addition to its wide variety of consumption options, Vitaminwater also has zero-calorie variations that tailor to the company’s more health-conscious consumers. The mere existence of a no-calorie alternative provides valuable insight into Glacéau’s willingness and ability to hone in on, explore, and target specific market segments that are relevant to its product line.

PepsiCo is a global food and beverage corporation based in United States. Company received its current name in 1965, through the merger of Pepsi-Cola with Frito Lay Inc. PepsiCo makes, markets, sells and distributes more than 40 brands. A range of worldwide famous brand names includes Pepsi, Mountain Dew, Lay’s, Doritos, Quaker, Tropicana, Tostitos, Walkers, Cheetos, Ruffles, Fritos and others. PepsiCo generated net revenues of more than USD 65 billion in 2013, where 35% of revenue from developing and emerging markets (PepsiCo Annual Report). Pepsi products are available in more than 200 countries. The company has its own bottling manufacture and distribution facilities. Pepsi-Cola Company division is the second largest carbonated soda business in the world and the Frito-Lay division is the world’s leader in snacks business. The Frito-Lay generates more than 65% of PepsiCo 's net sales and more than 2/3 of the PepsiCo operating

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

Selling beverage and food in a globalized and growing market can mean a lot of opportunities for firms. PepsiCo has invested a lot in BRIC countries in hopes of expanding its market share, as these countries are currently the fastest growing food and beverages markets in the world. If PepsiCo is successful this will mean a significant increase in its revenues and global market share. Another positive to this is that this may mean it will be able to rely less on the US market. Due to changes in lifestyle and an increase in

PepsiCo operates six global divisions, including: North America Beverages (NBA); Frito-Lay North America (FLNA); Quaker Foods North America (QFNA); Latin America; Europe Sub-Saharan Africa (ESSA); and Asia, Middle East & North Africa (AMENA). FLNA’s net revenue was about 21% of PepsiCo’s total net revenue in both 2013 and 2012. QFNA’s net revenue was about 4% of PepsiCo’s total net revenue in each of 2014, 2013 and 2012. LAF’s net revenue was about 12% of PepsiCo’s total net revenue in each of 2014, 2013 and 2012. PAB’s net revenue was about 32% of PepsiCo’s total net revenue in both 2014 and 2013, and 33% in 2012. Europe’s net revenue was about 20%, 21% and 20% of PepsiCo’s total net revenue in 2014, 2013 and 2012, respectively. AMEA’s net revenue was about 10% of PepsiCo’s total net revenue in each of 2014, 2013 and 2012.

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 management believed that international markets are the company’s greatest opportunity for growth. * Expected that by 2012, China and Brazil would be the two largest international markets of snacks.

PepsiCo is a big manufacturer, marketer and distributor of snacks, foods and beverages. Hence, company’s

PepsiCo International markets and sells the North American product brands abroad, and in additional markets and sells the Mirinda, Walkers, Sabritas, Gamesa, etc. and several others in multiple countries (over 200). Each of these subsets of brands are developments of unique products tailored to each geographical culture it is marketed to.

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.

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).

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,

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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.

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