Pepsico: Part I
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The recipe for Pepsi was first developed in the 1880s by a pharmacist named Caleb Bradham. He created the Pepsi-Cola Company in 1902. In 1931, Pepsi was declared bankrupt and bought by Loft Incorporation. In 1965, Pepsi merged with Frito-Lay, forming PepsiCo. PepsiCo has since expanded its product portfolio through acquisitions of brands like Tropicana, Gatorade, and Quaker. Today, PepsiCo is a global food and beverage giant with a diverse portfolio of brands and annual revenues over $70 billion.
Pepsico: Part I
- 3. PEPSI –THE FLAGSHIP PRODUCT The recipe for Pepsi (the soft drink), was first developed in the 1880s by a pharmacist and industrialist from New Bern, North Carolina, named Caleb Bradham—who called it "Pepsi-Cola" in 1898. As the cola developed in popularity, he created the Pepsi-Cola Company in 1902 and registered a patent for his recipe in 1903.
- 4. ORIGIN Charles Guth purchased the trademark and syrup recipe. He himself owned a syrup manufacturing unit in Baltimore. He also owned a candy unit called ‘Loft’. He used Loft’s labs and reformulated Pepsi’s formula. After winning a lawsuit against Loft’s shareholders, Guth absorbed Pepsi into Loft and rebranded it as Pepsi-Cola. Pepsi cola then launched new products such as Diet Pepsi and Mountain Dew.
- 5. 1893: Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drink concoctions. 1898:One of Caleb's formulations, known as "Brad's Drink," is renamed "Pepsi-Cola" on August 28, 1898. Pepsi-Cola receives its first logo. 1902: Bradham applies for a trademark with the U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola Company. 1905:Pepsi-Cola's first bottling franchises are established in Charlotte and Durham,North Carolina. Pepsi receives its new logo. 1923:Pepsi-Cola was bankrupt. Pepsi-Cola trademark sold to Craven Holdings Corporation. PEPSICO INTERNATIONAL :HISTORY OF PEPSICO
- 6. 1931:Pepsi-Cola Company was declared bankrupt for the second time and bought by Loft Incorporation. 1934:Pepsi-Cola drink was a hit and to attract even more sales, the company begins selling its 12-ounce drink for five cents. 1958:Pepsi continued to expand, and was now available in 120 countries. 1963:The 12-ounce bottle gives way to the 16-ounce size. Twelve-ounce Pepsi cans are first introduced to the military to transport soft drinks allover the world. 1965:Expansion outside the soft drink industry begins. Frito- Lay of Dallas, Texas, and Pepsi-Cola merge, forming PepsiCo, Inc. 1970:Pepsi introduces the industry's first two-liter bottles. Pepsi is also the first company to respond to consumer preference with light-weigh, recyclable, plastic bottles.
- 7. 1991:Pepsi introduces the first beverage bottles containing recycled polyethylene terephthalate (or PET) into the marketplace.The development marks the first time recycled plastic is used in direct contact with food in packaging. 1992:Pepsi-Cola and LiptonTea Partnership is formed. 1998:PepsiCo acquiresTropicana Products from Seagram Company Ltd.,the biggest acquisition ever undertakenby PepsiCo. 2001:PepsiCo merged with the Quaker Oats Company.
- 8. BOARD OF DIRECTORS Victor J. Dzau, M.D. , Ian M. Cook, Sharon Percy Rockefeller , Daniel Vasella, M.D. , Dina Dublon , Ray L. Hunt , James J. Schiro , Shona L. Brown , Shona L. Brown , Lloyd G. Trotter , Indra k. Nooyi , Alberto Weisser , Alberto Ibarguen
- 9. LEADERS OF PEPSICO Indra Nooyi chairman/CEO, Pepsico John Compton President, Pepsico Brian Cornell CEO, PepsicoAm. Foods Albert P. Carey CEO, PepsicoAm. Beverages Zein Abdulla CEO, Pepsico Europe Sadd Abdul-Latif CEO, PepsicoAsia, Middle East, Africa
- 10. Indra Krishnamurthy Nooyi Nooyi joined PepsiCo in 1994 and was named president and CFO in 2001 Since she started , the company's annual revenues have risen to 72% Net profit more than doubled, to $5.6 billion in 2006 She was named the CEO of PepsiCo in 2006 Currently she is ranked as the 10th most powerful woman in the world
- 11. ORGANIZATION STRUCTURE Pepsico PepsiCo Americas Foods (PAF) Frito-Lay North America (FLNA) Quaker Foods NorthAmerica (QFNA) LatinAmerica food (LAF) PepsiCo Americas Beverages (PAB) Pepsico International (PI) Europe PepsiCo Asia, Middle East & Africa (AMEA)
- 12. PRODUCTS OF PEPSICO Pepsi-cola brands Frito-Lay brands Tropicana Quaker brands & Gatorade brands
- 13. PEPSI-COLA BRANDS CARBONATED BEVERAGES: ▪ Pepsi ▪ Mirinda-orange ▪ Mountain dew ▪ Mountain lemon ▪ 7-up ▪ Soda water(Lehar) NON-CARBONATED BEVERAGES: ▪ Slice/slice new ▪ 7-up nimbooz PACKAGED DRINKING WATER ▪ Aquafina
- 14. FRITO LAY Frito-Lay merged with Pepsi-Cola in 1965 Frito-Lay brands account for 59% of the U.S. snack chip industry Cheetos snacks Kurkure Lays potato chips Lehar
- 15. TROPICANA PepsiCo acquired Tropicana in 1998 Tropicana known for its fruit juices
- 16. Quaker & Gatorade PepsiCo merged with The Quaker Oats Company in 2001 Quaker Oatmeal, Mother's Natural Foods, Quaker Toasted Oatmeal, Quaker Corn Bran, Quaker Oat Bran, Quaker Puffed Rice, Quaker Puffed Wheat Gatorade is known for sport’s drink
- 17. Marketing Strategies Initial Marketing Strategy Walter Mack , President of Pepsi Cola tapped African American market. Mack launched new campaigns such as “Leaders in their field” showing Blacks in a positive light Used Racism as a selling point to increase sales.
- 18. Marketing- Early 19s to 20s 1930-1970 Promotion through beauty pageants, sports, jingles and ads In 1975, Pepsi introduced the Pepsi Challenge marketing campaign Change in logo,slogan & packaging to imbibe New spirit in Pepsico products Launch of highly successful Pepsi Stuff campaign in 1996 Country specific advertising using brand ambassador from different spheres
- 20. Marketing Strategy – Early 20s to 2014 Categorization of product as health and fun Adhering to 4 Ps and 5 Cs of marketing Creation of customer value Responsible Marketing Change is Constant
- 22. CURRENT MARKET SCENARIO The $65-billion PepsiCo has earmarked an investment of Rs 33,000 crore ( $5.5 billion) for India till 2020. PepsiCo's investment comes a year after its rival Coca-Cola announced plans to devote $5 billion to build capacity here. It's now looking at launching a new category of convergence products, which could be a mix or a cross of cereals and milk or juices Many in the industry say PepsiCo's Rs 160-crore IPL spend for the year was too much to begin with. Coca-Cola India was not even present for the bidding for this year. A source in a leading executive search firm says PepsiCo has poor management rather than lack of leadership talent. GROSS PROFIT : $37.84 billion
- 24. CSR ACTIVITIES
- 25. SWOT ANALYSIS STRENGTH: • Long history in cola market and strong global image • Brand diversification • CSR projects through PepsiCo Foundation. • Competency in mergers and acquisitions • Successful marketing and advertising campaign WEAKNESSES: • Overdependence on Wal-Mart • Unavailability of various demanded flavors like Mountain Dew & Mirinda Lemon • Much weaker brand awareness and market share in the world beverage market compared to Coca- Cola OPPORTUNITIES: • Opportunities in international market • Bottled water consumption growth • Company has brand equity in the eyes of customers, so its new products can easily penetrates in the market THREAT • Strong competitors • Change in customer taste and preferences • Restrictions made by Govt. agencies that soft drinks are harmful &non-nutritive
- 26. COMPETITORS ▪ Coca-Cola- No.1 beverage company ▪ Mondelez International(Kraft Foods) ▪ Dr. Pepper Snapple Group- DPS is the #3 soda business in North America after #1 Coke and #2 Pepsi. ▪ Nestle a major competitor
- 27. Nikhil Ahlawat 2014175 Oindrila Ghosh 2014185 Pooja Gupta 2014195 Pritam Pandey 2014205 Rahul Parate 2014216