Pepsico Strategy

Topics: PepsiCo, Pepsi, Profit margin Pages: 21 (5589 words) Published: April 10, 2011
Executive summary
Pepsi Co is engaged in manufacturing, marketing and distribution of food and beverages which includes carbonated, non carbonated drinks, snacks and grains. Its main competencies are its marketing and distribution network, it does not believe in competing with its competitors but rather defines its own market by selecting their own target audience. It has formulated it strategy in reference to its external environment and internal capabilities. The company selects is own internal strengths and tries to capitalize on them, it also seeks for improving upon its opportunities and find ways to combat its threats. Pepsi being having the second major share in the F&B industry is constantly developing new products to improve its competitive edge and improve its efficiency. The project report talks about market share of the company, internal and external factors affecting its success and strategies adopted by the company to gain maximum share and retain its old customers. The report also emphasizes on performance of the company in comparison to its financial success in previous year, in reference to its competitors and the industry average. Pepsi with the application of BCG has defined its key star product and products which give no revenues, thereby improving and developing strategies which can fetch them more revenues and improve their customer base. The internal resource analysis and the supply chain in reference to the organization has been successful and been able to deliver success to the company by reducing time frame and increasing efficiency. Being well diversified the company’s latest acquisition of Gatorade, Quaker, and Tropicana has been successful strategic decisions for the company ,the company major revenue is from carbonated drinks followed by snacks and Quaker oats. The company keeps on trying to improve its corporate image which is a part of their corporate strategy and vision .Pepsi tries to out beat its competitors by generating customer loyalty and improve upon their strengths by enhancing their innovation and research and development.


Source :

Pepsi Co headquartered in New York is involved in manufacturing and distribution of carbonated drinks and snacks. With well diversified product portfolio and having been sold in more than 500 countries is among the top 500 fortune companies. Indra Nooyi the CEO the Pepsi Co has managed to make Pepsi the second largest company in F&B industry and help it gain maximum share in the market. Pepsi is ventured into snacks, carbonated and non carbonated drinks, mineral water, cereals, snacks such as potato chips and wedges. The company has subsidiaries in more than 13 countries and is increasing its size each year. 1.Company description

1.1.Organizations Mission Statement
At Pepsi the employees are engaged to make Pepsi the leading brand in the sphere of consumer products. They are committed to provide such opportunities for investors where they can find profitable ventures and grow .Pepsi makes sure that every stakeholder of it is happy and satisfied. They ensure that they work in fair and honest manner. (PepsiCo Inc. 2009) Critical analysis: Pepsi’s aim is to gain maximum market share in every product of it’s, by providing best quality to its customers and ensuring that every member who is attached to the company in any manner is happy and contented.

1.2.Pepsi’s Objectives and its subsidiaries
John Enrico the CEO of Pepsi lead to change in objectives of the Pepsi in 1994. He defined the new objectives of Pepsi as follow – 1.Not to compete with Coca Cola in markets which they had captured and focus on markets which were not tapped yet. 2.Increase operations by selling more in grocery stores.

3.Sell businesses which were not making profit and were occurring heavy losses 4.Increase the value of share prices of Pepsi
Following are the subsidiaries of Pepsi...
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