Marketing Case Analysis of Pepsico

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Marketing Case Analysis of PepsiCo
Corporate Overview and Financial Performance
PepsiCo, Inc. is one of the most successful consumer products companies in the world, with 2000 revenues of over $20 billion and 125,000 employees. The company consists of: Frito-Lay Company, the largest manufacturer and distributor of snack chips; Pepsi-Cola Company, the second largest soft drink business and Tropicana Products, the largest marketer and producer of branded juice. PepsiCo brands are among the best known and most respected in the world and are available in about 190 countries and territories.

In 2000, PepsiCo has a reported net sale of $20,348 and a comparable net sale of $20,144 in comparison to its 1999’s net sales of $20,367 and $18,666 respectively. PepsiCo has increased its comparable net sale of 8% in 2000 while it had an increase of 15% in 1999. This reflects the increasing rate is going slower. On the other hand, PepsiCo’s interest expense declines 39% showing that the company is significantly lower the average debt level. Back to 1999, the report shows that the company’s interest expense dropped 8%, which indicates that the company is performing well in managing its financial strategies. More details about the financial performance of the company will be discussed in the later part of this paper. Strengths:

-          Ranked 21st in the Fortune 500
-          International sales of $29.3 billion
-          Markets more than 500 varieties of food and beverages -          Distributed in more than 200 countries
-          Third largest food and beverage company in the world -          16 brands produce more than $1 billion annually -          Loft Company purchased Pepsi Cola in 1931. -          Launched first radio jingle in 1939

-          Well diversified
-          Dedicated to growth
-          Frito Lay is the world’s largest seller of snack foods -          Beverages count for 1/3 of carbonated beverages sales...
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