Pepsico Diversification Strategy

1990 Words8 Pages
16 October 2012 Draft v1

Seitenzahlen einfügen, Inhaltsverzeichnis einfügen

Pepsico’s Diversification Strategy in 2008
Discussion material
16 October 2012

16 October 2012 Draft v1

Contents
Seitenzahlen einfügen

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

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16 October 2012 Draft v1

2.1 PepsiCo
Overview
Overview n n n n

Acquisitions n Formed in 1965: merger Pepsi-Cola Company & Frito-Lay Inc. America mulinational food & beverage corporation Headquartered in United States, NY Manufacturing marketing & distribution of: – grain-based snack foods – salty snacks – beverages

1980‘ & 1990s
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t -à look in the book

Trends & developments n Market share of snacks in the US 2007

General trends towards: – Healthier ingredients / products – No trans-fat – Vegetable / fruit snacks – Oatmeal products – Smaller packages – New flavors

PepsiCo Kra4 Foods 21% 37% 12% 7% 1% 9% 5% 6% 2% Hershey Kellogg Master Foods General Mills Procter & Gamble Private label Others

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16 October 2012 Draft v1

3.2 Beverage market

Distribution of beverages in the US in 2007 by category PepsiCo managed to perform along with market trend and increased it’s revenues in the growing markets

Tabelle

3% 4%

2%

1%

0%

Carbonated so4 drinks BoKled water Fruit beverages

13% 48%

Isotonic to drink tea Ready to drink tea Flavored and enhanced water Energy drinks

29%

Trends & developments n Market share of carbonated soft-drinks in 2007

General trend goes away from high-calorie beverages and towards healthier and low-calorie beverages Increased demand of bottled water, ready to drink tea and energy drinks Sales of bottled water increased from 4.6bn to 8.8bn in 8 years SoBe Energy drinks only with negligible share in energy drink market Lipton RTD tea increase by 15% between 2006 and
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