1. PepsiCo. Caroline Duncan Erica Jones Steven Scalsky Brad Townley
Adilene Vasquez

2. Table of Contents PepsiCo Overview
PepsiCo’s “Performance with Purpose”
SWOT Analysis
Industry Analysis
PepsiCo’s Strategy
A PepsiCo Lifestyle
Table of Contents

3. Background Information
1965
PepsiCo, Inc. was established through the merger of Pepsi- Cola and Frito Lay.
Late 1970s and mid 1990s
Expanded via acquisition of businesses
Post 1997
Multiple large-scale acquisitions
Began to extend operations beyond soft drinks and snack foods.
Background Information

4. Major Products

5. PepsiCo Overview

6. Performance with Purpose
Created in 2007
Three main tiers
Human Sustainability
Environmental Sustainability
Talent Sustainability
Performance with Purpose is our goal to deliver sustained value by providing
a wide range of foods and beverages, from treats to healthy eats; finding innovative ways to minimize our impact on the environment and lower our costs through energy and water conservation as well as reduce use of packaging material; providing
a safe and inclusive workplace for our employees globally; and respecting, supporting
and investing in the local communities in which we operate.
**Strive to deliver superior long-term financial performance and sustained shareholder value
Performance with Purpose

7. Continue to refine food and beverages to meet changing consumer tastes
Provide clear nutritional information on all products
Human Sustainability

8. Environmental Sustainability
Help to protect and conserve water supplies
Innovate packaging to minimize the impact on the environment
Work to eliminate solid waste
Environmental Sustainability

9. Talent Sustainability
Create a safe, healthy, diverse and inclusive workplace.
Respect human rights in the workplace across the supply chain.
Talent Sustainability

10. By looking at the financial records (below) for PepsiCo of their revenues for the last 26 years you can see that by implement a new strategy they have dramatically increased their revenues by billions of dollars in just a matter of 4 years. Performance with Purpose was implemented in 2007; you can see that since they created that there has been a steady increase of revenues throughout the years.
PepsiCo’s Financials

11. SWOT Analysis Strengths Weaknesses Opportunities Threats
Product Diversification
Internationally Recognizable Brand
Financially Profitable
Many corporate social responsibility projects
Successful marketing campaigns both nationally and internationally.
A Wide diverse set of employees
Their “Performance with Purpose” initiative
Not many healthy food alternatives provided
Very dependent on Walmart as a distributor
Opportunities
Threats
Many opportunities with becoming environmentally appealing.
Increasing Demand for healthier alternatives
Consumption growth for bottled water and snacks
An ever increasing number of competitors
The rising commodity prices
Continually changing consumer tastes
The increasing water scarcity in the world
SWOT Analysis

12. Coca-Cola
Dr. Pepper/Snapple
Kraft Food Group
Top Competitors

13. The Industry Beverage Industry Food Industry 3 Major Players
Diversify to compete
Entering market is difficult
Food Industry
More Competition
Diverse product line leads to more competitors
The Industry

14. Forces of Change Consumer preference Publicity Competitors
More health conscious
Publicity
Coca-Cola and water consumption
Competitors
New Products
Expansion
Forces of Change

15. Forces of Change Cont. Foreign Markets Government Regulations
Political factors
Russia/Ukraine
Government Regulations
Marketing
Labeling
Production
Safety Standards
Forces of Change Cont.

16. Competitive Forces Rivalries among Existing Competitors
Compete on product differentiation
Taste and Style instead of cost
Diversify Product Line
Acquisitions
Gatorade
Quaker Oats
Able to enter new market segments
Competitive Forces

17. Competitive Forces Threat of new competitors Threat of Substitutes
Very difficult
Brand names dominate this market
PepsiCo and Coca-Cola able to buy out new entrants
Threat of Substitutes
Pepsi deals with substitutes with all of their products
Depend on Brand name and positive reputation
Competitive Forces

18. Competitive Forces Bargaining Power of Suppliers
PepsiCo Bottling Group
Own personal supplier
Provides massive advantage
Bargaining Power of Consumers
No consumer in this market has enough purchasing power to have leverage
Consumer power lies with the price of the product
Price cant be higher than a direct competitor’s price
Competitive Forces

19. Competitive Positions of Companies
Coca-Cola, PepsiCo, Dr.Pepper Snapple Group
3 Major Players
80% of market share between the three
Coca-Cola most dominant in soda industry
PepsiCo has made up the difference with more product variation
Resources, Brand names, Established Relationships
New competitors cant compete with the big three
Competitive Positions of Companies

20. Key Success Factors Consumer Knowledge Brand Loyalty
Competitive Prices
Global Expansion
Product Innovation
Key Success Factors

21. PepsiCo uses distribution capabilities to demonstrate the knowledge of their consumers.
Consumer Knowledge

22. PepsiCo creates and advertises major brands they know consumers will love around the world.
Brand Loyalty

23. PepsiCo established a new operating model to increase speed to market.
Competitive Prices

24. PepsiCo positions the company to grow by trend, region, and category.
Global Expansion

25. PepsiCo focuses on innovating globally by delighting locally.
Product Innovation

26. Industry Attractiveness
Very attractive
Above-average profit prospects
High barriers to entry
Low power to buyers and suppliers
Constrained competition for rivalry
Industry Attractiveness

27. Offering the consumer a variety of choices throughout the day.
PepsiCo's Strategy

28. As of now there are certain times of the day that consumers can only purchase snack items of PepsiCo.
Lets Make PepsiCo a lifestyle. So if a consumer wanted to he/she could have not only PepsiCo options throughout the day but healthy options as well
A PepsiCo Lifestyle

29. Acquiring or Merging with Tyson foods would give the consumer plenty of options during these times. Options of beef, chicken or pork.
They also make many frozen foods and dinners.
Lunch/Dinner?

30. Examples of a PepsiCo Lifestyle
Consumers could go into restaurants that Tyson distributes to KFC, Taco Bell, Pizza Hut to list a few. When they order there meal they not only are having a PepsiCo drink but also food items as well.
This could carry over to the grocery stores as well the consumer could shop healthy buying Lipton tea and Tyson chicken breast products.
Examples of a PepsiCo Lifestyle

31. PepsiCo as well as Tyson foods cater to many sporting venues across the country. We can make it when the consumer walks up to the concession stand. He will be walking away living a PepsiCo Lifestyle. With his PepsiCo beverage and his tasty PepsiCo corndog or Bacon on a stick.
Why Stop There?