PepsiCo provides extensive investor relations information on its website. The website includes quarterly earnings reports, stock quotes, leadership bios, and sustainability goals. It also details PepsiCo's community involvement through strategic grants, disaster relief, and volunteer programs. PepsiCo engages investors through various media including videos, social media posts of executive quotes, and an annual shareholder meeting. The organization aims to be financially profitable, well-managed, and ethical to maintain investor trust.
1. PepsiCo
369 Allegheny Blvd, Franklin, PA 16323
1 (800) 433-2652
www.pepsico.com
Company Overview
PepsiCo is a leading global foodand beverage company with numerous brands that are respected
household names throughout the world,including Pepsi, Frito-Lay and Tropicana. PepsiCo’s brands
generate more than $1 billion and spread across 200 countries throughout the entire world.
PepsiCo believes that acting ethically and responsibly is not just the right thing to do, but the right
thing to do forits business. PepsiCo has also been recognized for leadership and performance,
diversity and inclusion, environmental stewardship and supporting the communities in whichwe
live and work” (PepsiCo,2016).
Organization Stock
PepsiCo’s ticker symbolis PEP and current trading price as of 9 p.m. September 29, 2016 is
$108.19, and has a current 60% increase (PepsiCo, 2016). This information can be found housed
under StockQuotes under the Investors tab on PepsiCo’s website.
Assessment of the Organization’s Investor Relations
PublicRelationsTactics
Controlled media
o Website
Pepsico has a website consisted of a ton of valuable information fortheir consumers and
their investors. When yougo onto the website, it is nicely designed and easy to
navigate. There are four tabs at the top: Who We Are, What We Believe, Brands You Love,
Newsroom, and Investors. Under the “WhoWe Are” tab, it allowsyou to read the history,
search through the global brands, and meet the Board of Directors and Committees. Under
the “What We Believe” tab, one will find the overview of the company, mission and values,
goals, letter from the CEO, global citizenship, policies, partnerships, awards, and
information about their sustainability. Under the “Brands YouLove” tab, there is an
overview of all the brands that PepsiCo is consisted of. Under the “Newsroom” tab, there
are videos one can watchand read press releases. Under the “Investors” tab, information
about earnings, events, annual reports, investor contacts, stocks, and shareholding can be
found.
Investors tab
When you first clickon the investors tab, the first headline/box that appears is
“PepsiCo Earnings Q3 2016.” When you clickon it, a PDFpops up of a twenty-seven
page in depth paper about everything one needs to know about the third quarter
2. earnings results. Under the headline news, there is a title called “Featured
Events.” These are different events that have happened and are happening in the
future. For example, one event that is happening at PepsiCo is today, September
29th. One was able to click on the title “Q32016 PepsiCo Earnings.” Three things
popup: webcast, press release, GAAP/Non-GAAP Reconciliation, and transcript. The
webcast is available to anyone whowould like to join and attain more information
about PepsiCo’s earnings. When you clickthe link “Webcast,” it will bring youto a
page to sign up in order to participate. It asks you foryour first and last name, e-
mail, company (if there is one), country,and occupation. There is also a sentence
after submit that says “Submitting this form indicates youracceptance of the Privacy
Statement. There is information about the Investors Contacts, it includes overseas
contactas well as contacts in the United States. PepsiCo also includes on their
website the SEC Filings. These are reviews of PepsiCo’s filings with the U.S.
Securities and Exchange Commission.
o Annual Shareholders’ Meeting
PepsiCo holds annual shareholders’ meetings for their shareholders. There is a press
release and a transcript that is available for the publics to read.
o Social media
PepsiCo utilizes three main social media platforms whichare Instagram, Twitter, and
Facebook. PepsiCo promotes their brands on social media platforms by sharing recipes
about their products, using hashtags to engage their followers,and using creative waysto
inform their publics on what PepsiCo is doing in their company. After researching about
their social media, PepsiCo includes tweets on their twitterabout the about the Quarterly
Earnings. The tweet read “$PEP CEO@IndraNooyion Q3#PEPearnings: image attached.”
o Videos (digital media)
PepsiCo also takes advantage of creating fun animated videos forthe publics to understand
more about their quarterly earnings. The videos are easy to read, short, and
informational. The videos are posted on their website and also on their social media. Since
it is on their social media, it will direct more traffic to their website. Overall, having the
videos posted everywhere,it is more convenient.
UncontrolledMedia and Media Relations
o Press Releases and news
On PepsiCo’s website, there is a tab “Newsroom.” Newsroom is made up of “PepsiCo
Live” and Media Resources. PepsiCo Live are stories about the company that
PepsiCo has shared or news coverageon the company. Media Resources consist of
3. press releases, media contacts,and media downloads. However, under the investors
tab, there are only press releases that are related to financial news.
Community Relations
o Corporate Citizenship/Strategic Grants
“Since 2005, PepsiCo, through its Foundation and divisions, has donated more than
$900 million USDin cash and product to agencies” (PepsiCo **).
Sustainability
Under strategic grants, there are three areas of focuswhichinclude human
sustainability, environmental sustainability, and talent
sustainability. Human sustainability encourages a healthy lifestyleand
improves availability for affordablenutrition. Environmental sustainability
focuses on access to water and enhancing sustainable agriculture
capability. Talent sustainability focuses on enabling job readiness and
empowering women and girls. The PepsiCo foundation has continued to
support “Spark-a-Future.” This is a non-profit organization that enables
people to lend money to entrepreneurs in need. PepsiCo has given them a
donation of $1 million.
Los Angeles Plazade la Cultura y Artes
PepsiCo is also partners withthe Los Angeles Plazade la Cultura y
Artes. The PepsiCo also granted them $1 in order to support and develop an
“Editable Teaching Garden” and Culinary Arts Program. Mexican and
Mexican-American are able to learn about nutritional values of fruits and
vegetables.
The Earth Institute Columbia Water Center
The PepsiCo Foundation donated $6 million to The Earth Institute Columbia
Water Center. This program helps design water initiatives to bring safe
water to underserved communities that has little water.
Diplomas Now
PepsiCo “is the founding private-sector investor in Diplomas Now” (PepsiCo,
2016). The program was developed in order to help middle and high
schoolers located in the city so that they are ready to graduate ready or
college or a career.
4. o Community Service and Volunteering
PepsiCorps
PepsiCo started a volunteer program called “PepsiCorps.” PepsiCorps “is a
skill-based volunteer program in which associated fromaround the world
form teams that are deployed to help localcommunities address societal
challenges” (PepsiCo,2016).
Mother Water Cellar Projectin Greater China Region
PepsiCo employees volunteered their hours to help construct a water
purification towerfor a rural school in China in order to support and benefit
over 700 students and volunteers. The employees also offered and provided
a sanitation and health training.
Food forGood
This program was developed by PepsiCo employees to make nutritious
foods more accessible in inner city communities in order to support their
mission. Since the program was started in 2009, there has been 1.6 million
meals served tothe children in the inner city.
o Disaster Relief and Humanitarian Support
Throughout the years, natural disasters occur all around the
world. However, PepsiCo is there to support the ones that lost everything
and need a little help getting back on their feet. PepsiCo Foundation donate
money in order to fund for food and donated supplies like Aquafina water.
o Partnerships
o 2030 Water Resources Group
o American Beverage Association
o Beverage Industry Environmental Roundtable
o Consumer Goods Forum
o FoodDrinkEurope
o Food Industry Asia
o International Council of Beverage Associations
o International Food & Beverage Alliance
o International Life Sciences Institute
o Latin America Conservation Council
o Mexican Council of Consumer Goods Products (ConMexico)
o Snack Food Association
o The Grocery Manufacturers Association
o U.S. Council for International Business
o World Business Council for Sustainable Development
o World Economic Forum
Three Main Investor Relations Concerns
Financiallyprofitable
PepsiCo has a tab forinvestors that leads to financial news, investor contacts,stock information
and more. Each quarter a press release is provided that shows a summary of that quarter's financial
performance, statement of income and cash flowscharts, and more. Evenprovided is a glossary for
those whoare unfamiliar with words PepsiCo uses throughout the press release. PepsiCo has
another unique way of informing potential and current investors by creating a quarterly
performance comic,which provides a quote fromthe CEOand easy to read statistics.
5. Well-managed
PepsiCo’s leadership information provided to the public is vast, just under the leadership tab
there are 28 bios and headshots of the executive officersof the Company...from PepsiCo CEO Indra
K. Nooyl to PepsiCo President and Chief ExecutiveOfficerof the greater China Region Mike Spanos,
the company provides a plethora of information about who is behind the name. CEOIndra K. Nooyl
doesn’t hide, her photo, information, and quotes are scattered all throughout PepsiCo.com. “Ina
world that is being radically reshaped by sweeping forces of change — fromtechnological
innovation and globalization to resource scarcity, climate change and public health challenges —
how companies make money is just as important as how much money they make” Nooyl said. This
quote is important because it shows where the CEO’s priorities are and it’s not only in “how much”
but “how” PepsiCo makes it money and are they are viewedas a brand.
Ethical
PepsiCo strives forhonesty within the corporation. The company’s website has a letter from CEO
Indra K. Nooyl,where she discusses the 3 pillars of sustainability PepsiCo focuses on, Human,
Environmental and Talent. PepsiCo has a way fornot only associates, but consumers to report
potential violations of the PepsiCo Global Code of Conduct, Speak Up, whichis a 24/7 hotline. Speak
Up is a way for PepsiCo to show independence, proving PepsiCo is accountable fortheir actions.
Advocacy is big for PepsiCo, shown through their stance on Human Sustainability. The company
doesn’t just wantto be knownfor treats but also fornutritional options as well and is continuing to
create healthier choices forconsumers.
Recommendations
One of my recommendations for PepsiCo is to make their information about investing and
investors easier to understand. Under the “Investors” tab, there is so much information that you
don’t know where to start. Not a lot of people know or understand about investing, PepsiCo could
offera page of definitions and goals on where they want the company to be in order formore
people to understand their investor relations.
To make the page easier to navigate, PepsiCo couldcreate separate webpages foreach of the tabs,
filled with information in a less cluttered manner and easier for the user to use the site and take in
the overwhelming amount of information.
Under the Goals tab, PepsiCo talks about Performance withPurpose. Eachgoal performance,
human, environmental and talent is discussed and shown where the company is on trackor not to
completing the goal. The picture provided with all of this information is slightly blurry making it
hard to read. I would like to see a picture withclear text. Also I would’veliked to have been able to
clickon each goal to find the links to more information about each goal instead of having to
navigate through each tab formore information.
PepsiCo does an outstanding job with managing its social media platforms. One improvement that
could be made is to engage more with their followers;it seems that a lot of comments and questions
don’t alwaysseem to be addressed, and it is important foryour publics to know that your
organization is always listening.
6. Proven Maxims
An appeal to an audienceself-interestismostlikelyto beeffective.
For an audience to invest in PepsiCo, it is important to cater to their self-interests. A
member of a public must already be interested in investing with PepsiCo or other brands and
products beforehand, therefore it makes more sense to market the PepsiCo investor relations plan
toward those who are already interested in investments.
Explicitlystatedmessagesandappealstendto producemorebehaviororopinion
changethan explanationsofconceptsortheories.
By explicitly stating the goals of the organization to potential and current investors, it is more
likely that they willbe willing to invest their money with PepsiCo. The more informed about the
company’s goals and hearing their messages makes it more likely forthem to be willing to work
with PepsiCo and invest in the brand. The more they trust what the brand is saying the more likely
they are to trust it financially.
References
PepsiCo. (n.d.). Retrieved September 30, 2016, from http://www.pepsico.com/