Pepsi Power

8/8/2019 Pepsi Power

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Caleb Bradham was born in 1876 in Nioborn in the United

States.

Began through his work in pharmaceutical.In 1898 Brad discovered important drink for 22 years.

Delicious mix composed of cola plant extract, vanilla, oils

rare.

After 17 years of success the First World War came.Chocolate Factory successful named Charles Roth came

Ranked 21 in the five hundred companies in the United

States of America.


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Frito-Lay North America

PepsiCo's snack food operations had their start in 1932 when

two separate events took place.

-In San Antonio, Texas, Elmer Doolin bought the recipe for anunknown food product a corn chip and started an entirely

new industry. The product was Fritos brand corn chips.

-in Nashville, Tennessee, Herman W. Lay started a business

distributing potato chips. The Frito Company and H.W. Lay

Company merged in 1961 to become Frito-Lay, Inc.

Frito-Lay North America includes Canada and the United

States is PepsiCos largest division in terms of operating

profit.


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PepsiCo Beverages North America

Brand Pepsi is part of a portfolio of beverage brands that includes Carbonated

soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks, isotonic

sports drinks, bottled water and enhanced waters.

In 1992 PBNA formed a partnership with Thomas J. Lipton Co. to selling ready-

to-drink tea brands in the United States.

" South Beach Beverage Company " became a part of PBNA in 2001. To include

fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages

with herbal ingredients.

Gatorade thirst quencher sport drinks was acquired by The Quaker Oats

Company in 1983 and became a part of PepsiCo with the merger in 2001.Carbonated beverages have been flat in recent years while sales of

Noncarbonated beverages have grown steadily.


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PepsiCo International

Pepsi-Cola began selling its products outside the United States

and Canada in the mid-1930s, opening in the United Kingdom

in 1936.

Today, PepsiCo beverages are available in more than 200

countries and territories.

PepsiCo began its international snack food operations in 1966.

Today, products are available in nearly 200 countries.

In the past decade, it has spent nearly $1 billion to developmarkets in Eastern Europe, China, India, Russia.


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Quaker Foods North America

In Ravenna, Ohio, Henry D. Seymour and William Heston had

established the Quaker Mill Company.

The figure of a man in Quaker clothes became the first

registered trademark for breakfast cereal and remains thehallmark for Quaker Oats today.

The first major acquisition of the company was Aunt Jemima

Mills Company in 1926, which is today the leading

manufacturer of pancake mixes and syrup. Gatorade was

acquired in 1983.

PepsiCo merged with The Quaker

Oats Company in 2001.


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Pepsis Mission Statement

To be the world's premier

consumer Products Company

focused on convenient foods and

beverages. We seek to produce

healthy financial rewards to

investors as we provideopportunities for growth and

enrichment to our employees,

our business partners and the

communities in which we

operate. And in everything we

do, we strive for honesty, fairness

and integrity.

Not-exist

ExistExistence

Component

*Customers

*Products & services

*Markets

*Technology

*Growth & survival

*Philosophy

*Self-concept

*Public image

*Concern for employees


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External Factors Evaluation (EFE)Key External Factors WEIGHT RATING WEIGHTED

SCORE

Opportunities

Global increase in demand on fast foods and beverages. 0.15 4 0.6

In US 87% of beverages market is nonalcoholic. 0.10 3 0.3

Growing # of young population. 0.05 3 0.15

Suit a variety of lifestyle & new trend to healthier food. 0.10 3 0.3

Diet soft drinks and energy drinks are growth. 0.10 3 0.3

Top 10 drinks are made by top 3 companies. 0.10 3 0.3

Threats

Wide array of competitors in food industry 0.15 4 0.6

Snake foods and fast food have long associated with high

fat.0.10 3 0.3

Governmental regulations or/ & supports to competitors 0.10 2 0.2

Pollution control . 0.05 3 0.15

TOTAL 1.00 3.2


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Internal Factors Evaluation (IFE)

Strength Weight Rating Weighted score

Brand name recognition. 0.15 4 0.6

Global market leader in snake foods and non-carbonated

beverage.

0.10 4 0.4

Innovate and create differentiated products. 0.10 4 0.4

Pepsi the second most popular soft drink. 0.05 4 0.2

Quaker has reputation for producing healthy good. 0.10 3 0.3

Use some recycled materials to make containers which save

millions of raw materials.

0.05 3

0.15

Weaknesses

Large portion of Pepsi annual sale come from non-healthy

foods and beverages.

0.10 1 0.1

PepsiCo hasnt been able to consistently achieve the 15%

annual increase in earnings.

0.15 1 0.15

WOW (fat free potato chips) Frito-Lay become known for its

tendency to cause abdominal cramps than for being fat-free.

0.10 2 0.2

No vision statement. 0.10 2 0.2

Total 1.00 2.7


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Competitive Profile Matrix (CPM1)

Critical

Success factors

weight

Pepsiweighted

Rating score

Coca-colaweighted

Rating score

Cadburyweighted

Rating score

Advertising

Financial position

Market share

Global expansion

Product quality

Customer loyalty

Management experience

E-commerce

Sales distribution

Inventory


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Competitive Profile Matrix (CPM 2)

Critical

Success factors

weight

Frito-Layweighted

Rating score

Kraftweighted

Rating score

Kellogg'sweighted

Rating score

Advertising

Financial position

Market share

Global expansion

Product quality

Customer loyalty

Management experience

E-commerce

Sales distribution

Inventory


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SOWT Matrix

Strengths

1. Brand name recognition.

2. Global market leader in snake foods and

non-carbonated beverage.

3. Innovate and create differentiated

products.

4. Quaker has reputation for producing

healthy good.5. Use some recycled materials to make

containers which save millions of raw

materials.

1. Large portion of Pepsi annual sale come from

non-healthy foods and beverages.

2. PepsiCo hasnt been able to consistently achieve

the 15% annual increase in earnings.

3. WOW (fat free potato chips) Frito-Lay causeabdominal cramps than for being fat-free.

4. No vision statement.

Weaknesses

Threats

1. Wide array of competitors in food industry.

2. Snake foods and fast food have long associated

with high fat.

3. Governmental regulations or/ & supports to

competitors.

4. Pollution control .

Opportunities

1. Global increase in demand on fast foods and

beverages.2. In US 87% of beverages market is

nonalcoholic.

3. Growing # of young population.

4. Suit a variety of lifestyle & new trend to

healthier food.

5. Diet soft drinks and energy drinks are

growth.6. Top 10 drinks are made by top 3 companies.


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SWOT Matrix

-Recycling of beverages cans and use them

in production.(S5,T4)

-Improve brand image (healthier) by

increasing advertising.(S3,S4,T2)

- Eliminate goods associated directly to cause

death.(W3,T2)

W\TS\T

S\O W\O

-Expand the number of differentiated

food & snake. ( s2,s3,o1,o3)

- Market development.(s1,s2,o5,o6)

- Run large propaganda to aware customers for

the importance of healthy food and

drink.(W1,O4,O5)

- Serve different lifestyle people.(W2,O4,O6)


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BCG


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Grand Strategy

Rapid market growth

Weak

Competitive

position

Quadrant I Quadrant I

Product development

Market developmentBackward integration

Market penetration

Strong

Competitive positionQuadrant III Quadrant IV

Slow market growth


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QSPMKey Factors WEIGHT Product Develop

AS TAS

Market penetration

AS TASOpportunities

Global increase in demand on fast foods and

beverages.

0.15 3 0.45 4 0.60

In US 87% of beverages market is nonalcoholic. 0.10 3 0.30 2 0.20

Growing # of young population. 0.05 3 0.15 3 0.15

Suit a variety of lifestyle & new trend to healthier

food.

0.10 4 0.40 3 0.30

Diet soft drinks and energy drinks are growth. 0.10 3 0.30 3 0.30

Top 10 drinks are made by top 3 companies. 0.10 2 0.20 3 0.30

Threats

Wide array of competitors in food industry 0.15 3 0.45 2 0.30

Snake foods and fast food have long associated

with high fat.

0.10 4 0.40 2 0.20

Governmental regulations or/ & supports to

competitors

0.10 1 0.10 1 0.10

Pollution control . 0.05 - - - -

TOTAL 1.00


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QSPM

Strength

Brand name recognition. 0.15 3 0.45 4 0.60

Global market leader in snake foods and non-carbonated

beverage.

0.10 4 0.40 3 0.30

Innovate and create differentiated products. 0.10 4 0.40 3 0.30

Pepsi the second most popular soft drink. 0.05 2 010 3 0.15Quaker has reputation for producing healthy good. 0.10 3 0.30 3 0.30

Use some recycled materials to make containers which save

millions of raw materials.

0.05 - - - -

Weaknesses

Large portion of Pepsi annual sale come from non-healthy

foods and beverages.

0.10 4 0.40 1 0.10

PepsiCo hasnt been able to consistently achieve the 15%

annual increase in earnings.

0.15 3 0.45 3 0.45

WOW (fat free potato chips) Frito-Lay become known for its

tendency to cause abdominal cramps than for being fat-free.

0.10 3 0.30 1 0.10

No vision statement. 0.10 - - - -

Total 1.00 5.55 4.75


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Recommendations

Pepsi company is strong enough and financially sound to be

among the largest companies around the world. We are the

largest seller of snake food & we are the worlds second most

popular soft drink.

We try to be the first most popular soft drink around the world

through market development & market penetration in Eastern

Europe, China, India, & Russia.

In food industry, we trying harder to delight our costumers by

introducing wide variety of snakes and cereals to match theirdifferent lifestyle.

Finally, because your health is important to us, we try to

develop the most healthier food in the world.


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Documents

Pepsi Power