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PepsiCo 2014 Presentation
 

PepsiCo 2014 Presentation

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    PepsiCo 2014 Presentation PepsiCo 2014 Presentation Presentation Transcript

    • Prepared By: 1. 2. 3. 4. 5. 6. 7. 8. Abdul Hadi Anwar Abdullah Mushtaq Asad Khan Khalid Usman Muhammad Irfan Anwar Muneeb Khalid Shehryar Sarwar Sayed Sameer Submitted To: Ahmad Munir Mehar Group Research Assignment
    • Contents: 1. Mission & Visions 2. History 3. Organization Chart 4. Products Details 5. Financial Highlights 6. Marketing Strategies 7. Competitor & its Analysis 8. Sowt Analysis 9. Pest Analysis 10.Conclusion's
    • Mission & Vission Our Mission “Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities 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.’ Our Vision "PepsiCo's responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic – creating a better tomorrow than today." “Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.”
    • Today 2003 History: 1998 1973 1950 1906 1898
    • • In 1893, Pepsi was first introduced as "Brad's Drink", in New Bern,NorthCarolina, United States. • Itwas later labeled asPepsi Cola. • In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, andsales increased to 19,848gallons. • In 1909, automobile race pioneer Barney Oldfield was the first celebrity to endorse Pepsi-Cola.
    • In 1926, Pepsi received its first logo redesign since the original design of 1906. In 1929, the logo was changed again. In 1931, at the depth of the Great Depression, the PepsiCola Company entered bankruptcy. On 1922 and 1933, The Coca-Cola Company was offered the opportunity to purchase the Pepsi-Cola company, and it declined on each occasion. 1959 Crawford was appointed to the Board of Directors of Pepsi-Cola. 1975 Pepsi introduced the Pepsi Challenge marketing campaign .
    •  1996,PepsiCo launched the highly successful Pepsi Stuffmarketing strategy.  2007,PepsiCo redesigned its cans for the fourteenth time.  2008, Pepsi overhauled its entire brand, simultaneously introducing a new logo and a minimalist label design.  2009,"Bring Home the Cup" changed to "Team Up and Bring Home the Cup“ new campaign  2012, Pepsi introduced Pepsi Next, a cola with half the calories of regular Pepsi.  2013, Pepsi for the first time in 17 years reshaped its 20-ounce bottle,
    • Organizational Chart:
    • Pepsi Co Americas Food (PAF) It includes Frito-Lay North America, Quaker all Latin American food. Its snack businesses including the sabritas and game business includes in Mexico. Pepsi Co Americas Beverage Food (PAB) It contain Tropicana and all Latin American beverage. It contain customer management for food service and fountain businesses.
    • Pepsi Co International (PI) It includes all PepsiCo businesses in Uk, Europe, Asia and Middle East. In Uk it declared new product of the year by marketing week magazines. In Asia it strong growth in savory snacks in China and Thailand. In Middle East the Lays brand helped drive to share gains in Turkey.
    • Board of Directors: Shown in photo, left to right:
    • Victor J. Dzau, M.D. Chancellor for Health Affairs, Duke University; President and Chief Executive Officer, Duke University Health System. Ian M. Cook Chairman, President and Chief Executive Officer, Colgate-Palmolive Company . Sharon Percy Rockefeller President and Chief Executive Officer, WETA Public Stations. Daniel Vasella, M.D. Former Chairman and Chief Executive Officer, Novartis AG Dina Dublon Former Executive Vice President and Chief Financial Officer, JPMorgan Chase & Co. Ray L. Hunt Chairman, President and Chief Executive Officer, Hunt Consolidated, Inc. James J. Schiro Former Chief Executive Officer, Zurich Financial Services Shona L. Brown Senior Advisor, Google Inc. Shona L. Brown Senior Advisor, Google Inc. Lloyd G. Trotter Managing Partner, GenNx360 Capital Partners Indra k. Nooyi Chairman and Chief Executive Officer, PepsiCo Alberto Weisser Chairman and Chief Executive Officer, Bunge Limited Alberto Ibargüen President and Chief Executive Officer, John S. and James L. Knight Foundation
    • Products Details:
    • Aquafina Aquafina® bottled water goes through a state-of-the-art purification process so that you get the refreshment your body craves in its purest form Cheetos CHEETOS® Snacks are the playfully mischievous cheesy crunch that add a little lighten-up moment to any day. Proof positive, you simply can’t eat a Cheetos Snack without smiling. The CHEETOS® brand strives to provide consumers with fun times every step of the way Lay's Wherever smiles happen and happiness is celebrated, you’ll find LAY'S® potato chips. From backyard BBQs and birthday parties to 4th of July picnics, LAY'S® chips are there to share the moment. It’s no wonder these deliciously fresh-tasting and perfectly crispy potato chips have been America’s..
    • Lipton Made with natural ingredients, new 100% Natural Lipton Iced Tea unlocks the natural goodness of tea, blending it with delicious flavors to hydrate and refresh you. Tropicana Mountain Dew Tropicana, the strongest name in juices, Mountain Dew exhilarates and quenches extends the PepsiCo portfolio of brands with its one of a kind great taste. with plenty of nutritious, high-quality flavors. Tropicana Products, Inc. is the leading producer and marketer of branded fruit juices. Its products are marketed in the U.S. under a variety of brand names, including... Pepsi Pepsi - the bold, refreshing, robust cola.
    • PepsiCo Mega-Brands PepsiCo, Inc. has 18 mega-brands that generate $1 billion or more each in annual retail sales (estimated worldwide retail sales in billions).
    • Financial Highlights “Running a Company for the long term is like driving a car in a race that has no end. “
    • Financial Highlights International Growth & Revenues         World’s second-largest food and beverage business. We make, market or sell our products in more than 200 countries. More than 49% of our business is generated outside the U.S. In 2010, we achieved our target to increase our revenues outside the U.S. for approximately 30 %. In 2011, we delivered core net revenue growth of 14%. In 2012, the revenue is 1% less than the 2011. During 2012 we undertook a number of significant initiatives that we believe will position us for future success. These initiatives included increasing investment in our iconic global brands; stepping up our innovation program and launching new products like Pepsi Next. In 2013, our revenue increased by 1.5% as compared to 2012, & deliver its planned $900 million in productivity savings during 2013 to reach $3 billion in savings between 2012 and 2014.
    • Financial Highlights 2012 Total Net Revenue 2011 2010 $65,492 $66504 $57,838 Operating Profit FLNA $3,646 $$3,621 $3,376 QFNA $695 $797 $741 LAF $1,059 $1,078 $1,004 PAB $2,973 $3,273 $2,776 EUROPE $1,330 $1,210 $1,054 AMEA $747 $887 $708 Net Revenues PepsiCo AMEA 10% 37% 20% 33% Mix of Net Revenues PepsiCo Europe PepsiCo Americas Beverages PepsiCo Americas Foods 49% 51 % Food Beverage
    • Financial Highlights Critical Accounting Policies  These policies help management to make difficult and subjective judgments regarding uncertainties, and as a result, such estimates may significantly impact our financial results.  The precision of these estimates and the likelihood of future changes depend on a number of underlying variables and a range of possible outcomes.  We applied our critical accounting policies and estimation methods consistently in all material respects, and for all periods presented.
    • Financial Highlights Effect of Foreign Exchange Rate  Financial statements of foreign subsidiaries are translated into U.S. dollars using period-end exchange rates for assets and liabilities and weightedaverage exchange rates for revenues and expenses.  Countries which generates our net revenue for around 50% includes Russia, Mexico, Canada, United Kingdom and Brazil, as a result we are exposed to foreign currency risks.  In 2010 & 2011, favorable foreign currency contributed 1% to net revenue growth, primarily due to appreciation of the euro, Canadian dollar and Mexican peso.  During 2012, unfavorable foreign exchange reduced net revenue growth by 2.5%, primarily due to depreciation of the currencies of Russia, Brazil & Mexico.
    • Effect of Exchange Rate Changes To Date Effected -258 million
    • Financial Highlights
    • Marketing Strategies Global Marketing & Advertisements  The company's global marketing and ad expenses shot up 11% in the first quarter, compared with the first quarter of 2012.  Over the course of a century Pepsi has grown to be an amazing brand both in advertisement and style campaigns, providing top notch strategy plans to kicked out other competitors, which not only includes Billboards, Banners & stickers on Busses & trucks, but also with world class Celebrities !  PepsiCo looks for properties that take a vested interest in a partnership’s success by keeping the company up to speed on new marketing initiatives and other programs where there may be a brand fit.
    • Marketing Strategies Global Marketing & Advertisements  PepsiCo also activates league and team deals with localized in-store promotions.  Social media marketing is becoming increasingly dependent on usergenerated content, meaning reviews, comment, or any other input from customers.  The multi-brand strategy supports the organic role that PepsiCo brands play in the sports experience whether on the field of play or the fan experience.
    • Marketing Strategies Global Marketing & Advertisements  Online Advertisements is a huge “GO” for marketing, & PepsiCo is one of them.  Collect & Win competitions, In this type of events customers’ needs to collect enough points to get the listed gifts. Points can be of any type from Cap of an empty bottle to a empty wrapper of a Lays Chips. This attract customers a lot to buy their product in order to collect the points “We want to reach more consumers in more places at more times than anyone else,”
    • Competitors & its Analysis: PepsiCo
    • PepsiCo The PepsiCo challenge (to archrival Coca-Cola) never loses its fizz for the world's #2 carbonated soft drink maker. Pepsi products are available in 200-plus countries; the US generates 50% of sales. The company operates its own bottling plants and distribution facilities.  -The Coca-Cola Company  -Mondelez International, Inc. Company  -Dr Pepper Snapple Group, Inc. Company Analysis
    • Global Ranking Natures
    • PepsiCo Vs. Coca-Cola 1. Pepsi and Coca Cola are two international soft-drink giants which control most of the soft-drinks beverage business in the world. 2. Pepsi has the following brands under its umbrella: Pepsi, Tropicana, Mountain Dew, Quaker, Aquafina, 7Up, Lays, etc. Coke on the other hand has the following brands: Coca Cola, Coke light, Diet - coke, Kinley water, Kinley Soda, Fanta, Sprite, Thums Up etc. 3. Pepsi and Coke command over 95% of the soft-drink market in India. However Coke continues to outsell Pepsi most areas of the world but in India and Pakistan and some other countries, PepsiCo fares far better than coke.
    • Swot Analysis:
    • Strengths: 1. Extensive distribution channel: PepsiCo products are served to more than 10 million stores per week in more than 200 countries 2. Successful marketing and advertising campaigns. More than $2 billion spent on advertising over 2012 resulted in PepsiCo’s growing market share over its main competitors, including Coca Cola Company, which spent even more on advertising. 3. Proactive and progressive According to New York Times food industry writer Melanie Warner, PepsiCo, by many critics, is considered to be most proactive and progressive food company.
    • Weaknesses: 1. Low pricing. PepsiCo usually prices its products lower than its competitors. Low price is associated with low quality and PepsiCo products are usually perceived as ones 2. Weak brand awareness. The Coca Cola Company has the largest share market of beverages in the world and much stronger brand awareness than Pepsi, placing it at competitive disadvantage 3. Too low net profit margin. PepsiCo’s net profit margin is 9.7% compared to Coca Cola’s 18.55% and Nestlé’s 11%
    • Opportunities: 1. Savory snacks consumption growth. The same opportunity PepsiCo has in growing its revenue selling snacks as this market is also expected to grow. 2. Bottled water consumption growth. Consumption of bottled water is expected to grow both in US (PepsiCo’s largest bottled water market) and the rest of the world 3. Increasing demand for healthy food and beverages. Due to many programs to fight obesity, demand for healthy food and beverages has increased drastically. PepsiCo has an opportunity to further expand its product range with beverages and snacks that have low amount of sugar and calories
    • Threats: 1. Changes in consumer tastes. Consumers around the world become more health conscious and reduce their consumption of carbonated drinks, drinks that have large amounts of sugar, calories and fat 2. Water scarcity. Water is becoming scarcer around the world and increases in both cost and criticism for PepsiCo over the large amounts of water used for production. 3. Decreasing gross profit margin. PepsiCo’s gross profit margin was decreasing over the past few years and may continue to decrease due to higher water and other raw material costs.
    • Pest Analysis: • Political Factors • Economics Factors • Social Factors • Technological Factors
    • Political factors 1. PepsiCo is non alcoholic beverage and has to follow regulated by FDA with consistency. 3. PepsiCo’s competitors use competitive pricing strategy and Pepsi has to always keep this in mind. 2. It deals in different markets and every market has its own policies and procedures that are either stringent or either relaxed. Specially cross border situations are very different and Pepsi has to adapt to these changes accordingly. 4. PepsiCo has to also deal with government’s focus on stricter water pollution norms and land acquisition for new factories in different countries.
    • Economical Factors 1. Usually whenever there is an economic downturn faced by the economy, companies sales are badly affected and they have to restructure their strategies. 2. The economic in 2008 was in Pepsi’s favor. It resulted in increased sales of its beverages as people were jobless and were sitting at home, spending more time with family and friends. 3. Availability of labor is another very important economic factor .In some countries the labor is quite expensive and if it’s cheap then sometimes labor is not well trained. 4. The economic impacts of such movements are serious because these affect the growth.
    • Social Factors 1. Lifestyle has great influence on the use of Pepsi products, and their advertisements are designed accordingly. 2. PepsiCo introduced plastic bottles and cans and came up with innovative and newer designs. 3. Introduction of PepsiCo products in the international market requires an in depth study of the local social structure.
    • Technological Factors 1. With the technologies coming in, companies have changed their strategies and operations accordingly. A recent trend that has been seen and something that almost every company 2. Pepsi is influenced by the modern is inclining toward is Social Media. manufacturing techniques applicable to their business divisions of soft drinks, juices, and snack food. 3. Pepsi has to focus on the latest distribution techniques, and other technological advances in their industry.
    • Conclusions: 1. PepsiCo is always looking into the future, trying to make the company most profitable and suiting to its 4. New policy of the company should be shareholders. introduced before the competitors launch those policies. 2. PepsiCo is also reformulating its Aquafina Alive water with a new 5. A healthy relationship should be sweetener blend that has fewer developed by the company’s executives calories. with the dealers. 3. More focus on sales of Gatorade 6. All the factors involved in pest analysis have a great impact on each and every company. they all are interconnected with each other and also leads to a profitable business.
    • PepsiCo’s Values We are committed to delivering sustained growth through empowered people, acting responsibly and building trust. Thanks you:
    • Any Questions: