Bsiness Strategy of Pepsico

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PROJECT REPORT FOR BUSINESS STRATEGY-1

EVOLUTION OF BUSINESS STRATEGIES AT PEPSICO

Submitted to:Submitted By:
Prof. Sanjany SharanPrashant Sharma
Parul Kapoor
Mohit Madan
Prerna Gupta
Murali Krishna
(Section-A)
(Group – 10)
ACKNOWLEDGEMENT

We take this opportunity to express our gratitude towards Mr. Sanjay Sharan, Department of Marketing, IBS, Hyderabad. We are indebted to him for the expertise and invaluable guidance we have received while working on this project.

Contents

Introduction ………………………………………………………………………………. 1 PESTEL Analysis …………………………………………………………………………..6 SWOT Analysis……………………………………………………………………………10 PORTER Analysis………………………………………………………………………….14 4P @ Pepsi ………………………………………………………………………………….18 Competitive Strategy…………………………………………………………………..20 Recommendations………………………………………………………………………25 New Product Launch…………………………………………………………………..27 Advertisement Strategy………………………………………………………………34 Market Diversification Strategy…………………………………………………..36 HR Strategy…………………………………………………………………………………39 Bottling Strategy…………………………………………………………………………45

INTRODUCTION OF PEPSICO
Pepsi is one of the most well-known brands in the world today available in over 160 countries. The company has an extremely positive outlook for India. This reflects that India holds a central position in Pepsi's corporate strategy. India is a key market for Pepsi co, and at the same time the company has added value to Indian agriculture and industry. PepsiCo entered India in 1989 and is concentrating in three focus areas - Soft drink concentrate, snack foods and vegetable and food processing. Faced with the existing policy framework at the time, the company entered the Indian market through a joint venture with Volta’s and Punjab Agro Industries. With the introduction of the liberalization policies since 1991, Pepsi took complete control of its operations. The government has approved more than US$ 400 million worth of investments of which over US$ 330 million have already flown in. One of PepsiCo's key strategies was to develop a completely local management team. Pepsi has 19 company owned factories while their Indian bottling partners own 21. The company has set up 8 Greenfield sites in backward regions of different states. PepsiCo intends to expand its operations and is planning an investment of approximately US$ 150 million in the next two-three years. 

PESTEL ANALYSIS

PESTLE analysis stands for "Political, Economic, Social, Technological, Legal and Environmental/Ecological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.

PESTEL ANALYSIS FOR SOFT DRINK INDUSTRY

Political -
* Non-alcoholic beverages fall within the food category under the FDA. The government plays a role within the operation of manufacturing these products in terms of regulations. * There are potential fines set by the government on companies if they do not meet a standard of laws. * The following are some of the factors that could cause Pepsi’s actual results to differ materially from the expected results described in their underlying company's forward statement:- * Changes in laws and regulations, including changes in accounting standards, taxation requirements, (including tax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions. * Changes in the non-alcoholic business environment. These include, without limitation, competitive product and pricing pressures and their...
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