PepsiCo Situation Analysis Team: C10 Table of Contents Executive Summary…………………………………………………………………………….1 Company Description…………………………………………………………………………..2 Mission and Goals…………………………………………………………………....2-3 PepsiCo SWOT Analysis………………………………………………………………………3 PepsiCo’s Strengths……………………………………………………………………4 PepsiCo’s Weaknesses………………………………………………………………..5 PepsiCo’s Opportunities……………………………………………………………….5 PepsiCo’s Threats……………………………………………………………………...6 Coca Cola SWOT Analysis……………………………………………………………………. Coca Cola’s Strengths………………………………………………………………….. Coca Cola’s Weakness………………………………………………………………... Coca Cola’s Opportunities…………………………………………………………….. Coca Cola’s Threats……………………………………………………………………. Dr Pepper Snapple GroupSWOT Analysis…………………………………………………….. Competitor’s Strengths…………………………………………………………………. Competitor’s Weakness………………………………………………………………... Competitor’s Opportunities……………………………………………………………. Competitor’s Threats…………………………………………………………………... Customer Analysis………………………………………………………………………………. Market & Product Objectives…………………………………………………………………... New Product…………………………………………………………………………….. Perceptual Map………………………………………………………………………….. Appendix………………………………………………………………………………………….. Works Cited………………………………………………………………………………………. EXECUTIVE SUMMARY Company Description PepsiCo has been around about 85 years. The merger of two companies, Pepsi-Cola and Frito-Lay, created PepsiCo. This allowed PepsiCo to expand outside of the beverage market and into snack brands with chips like the original Frito-lays and additions like the Cheetos brand in 1948. As well, as the creation of the Doritos brand in 1966 which was estimated to become the most popular snack chip in the United States (PepsiCo, Our History 2016). In later years PepsiCo continued expanding by acquiring different chip and snack manufacturers as well as merging or partnering with other beverage companies to help expand both nationally and globally. PepsiCo is now a multi-billion dollar company listed on the stock exchange. Mission and Goals PepsiCo mission statement : “As one of the largest food and beverage companies in the world, our mission is to provide consumers around the world with delicious, affordable, convenient and complementary foods and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to evening treats. We are committed to investing in our people, our company and the communities where we operate to help position the company for long-term, sustainable growth” (PepsiCo,Our Goals 2016). PepsiCo has redefined their mission over the years as they expect to continue to grow and expand to different markets. They reinforce their mission statement with their goals. Their goals are to create a healthier relationship with food while conti.

1. PepsiCo Situation Analysis
Team: C10
Table of Contents
Executive
Summary………………………………………………………………
…………….1
Company
Description……………………………………………………………
……………..2
Mission and
Goals…………………………………………………………………..
..2-3
PepsiCo SWOT
Analysis………………………………………………………………
………3

2. PepsiCo’s
Strengths………………………………………………………………
……4
PepsiCo’s
Weaknesses…………………………………………………………
……..5
PepsiCo’s
Opportunities…………………………………………………………
…….5
PepsiCo’s
Threats………………………………………………………………
……...6 Coca Cola SWOT
Analysis………………………………………………………………
…….
Coca Cola’s
Strengths………………………………………………………………
…..
Coca Cola’s
Weakness……………………………………………………………
…...
Coca Cola’s
Opportunities…………………………………………………………
…..
Coca Cola’s
Threats………………………………………………………………
……. Dr Pepper Snapple GroupSWOT
Analysis……………………………………………………..
Competitor’s
Strengths………………………………………………………………
….
Competitor’s
Weakness……………………………………………………………
…...
Competitor’s
Opportunities…………………………………………………………
….

3. Competitor’s
Threats………………………………………………………………
…...
Customer
Analysis………………………………………………………………
………………. Market & Product
Objectives……………………………………………………………
……...
New
Product………………………………………………………………
……………..
Perceptual
Map……………………………………………………………………
……..
Appendix………………………………………………………………
…………………………..
Works
Cited…………………………………………………………………
…………………….

4. EXECUTIVE SUMMARY

5. Company Description
PepsiCo has been around about 85 years. The merger of two
companies, Pepsi-Cola and Frito-Lay, created PepsiCo. This
allowed PepsiCo to expand outside of the beverage market and
into snack brands with chips like the original Frito-lays and
additions like the Cheetos brand in 1948. As well, as the
creation of the Doritos brand in 1966 which was estimated to
become the most popular snack chip in the United States
(PepsiCo, Our History 2016). In later years PepsiCo continued
expanding by acquiring different chip and snack manufacturers
as well as merging or partnering with other beverage companies
to help expand both nationally and globally. PepsiCo is now a
multi-billion dollar company listed on the stock exchange.
Mission and Goals
PepsiCo mission statement :

6. “As one of the largest food and beverage companies in the
world, our mission is to provide consumers around the world
with delicious, affordable, convenient and complementary foods
and beverages from wholesome breakfasts to healthy and fun
daytime snacks and beverages to evening treats. We are
committed to investing in our people, our company and the
communities where we operate to help position the company for
long-term, sustainable growth” (PepsiCo,Our Goals 2016).
PepsiCo has redefined their mission over the years as they
expect to continue to grow and expand to different markets.
They reinforce their mission statement with their goals. Their
goals are to create a healthier relationship with food while
continuing to grow the business (PepsiCo, Our Goals 2016).
They plan to do this by renewing their goals in the focus areas
of products, planet, and people. They have set a number of
goals for each of their focus areas like the plan to reduce added
sugars, reduce saturated fats, reduce salt, and increase positive
nutrition in their products. They also have planned to do things
like reduce carbon emissions, achieve zero waste to landfill, and
advance respect for human rights which affect the planet and
people. This shows us that PepsiCo is not only focusing on
doing what they can within their industry but also that they are
taking their social responsibility seriously.
Another important thing is that PepsiCo is not trying to
completely change their products to the point where they don’t
taste the same or you cannot get a salty tasty snack when you
want but by adding healthier snacks they are trying to enter into
a different market and allow people to have options. This way
you will know that PepsiCo has whatever you want or need.
Taste is a big factor in a snack purchase, according to 66% of
baby boomers and 53% millennials in a survey by consultancy
Alixpartners (PepsiCo, Our Goals 2016). This still has not
stopped the CEO of PepsiCo Indra Nooyi to turn the company
into a health juggernaut which is why pepsi has aligned their

7. goals and their vision to improving their products, planet, and
people.
PEPSICO SWOT ANALYSIS
Pros
Cons
Internal
Strengths
-Strong market position
-Well known brands and variety of products
-Strong presence in many markets
Weaknesses
· Consumer confidence
External
Opportunities
-Increasing local-focus
-Creating healthier choices for consumers
Threats
-Rising competition
-Water quality and shortage
-Rising labor wages in the United States
Strengths:
PepsiCo is one of the best known brands globally and this is a
strength for the company because it allows the company to

8. dominate their market with their brand. PepsiCo has a variety of
products that are sold throughout the United states along with
other countries that set PepsiCo ahead of their competitors.
Some of the company’s products are top products in their
respective markets such as the Lays and Doritos brands
(PepsiCo, Inc. 2015). The amount of variety that the company
has and the status of the brand help PepsiCo to be a strong
competitor in the industry and help make its future profitable.
Weaknesses:
On the other hand PepsiCo has faced a lot of struggles due to
cutting corners or making unethical decisions. The company has
faced a number of lawsuits globally starting since the 2000s.
Some of the lawsuits were less serious than others but
nonetheless they can affect the company's future growth
especially when implementing new products. Two of the more
serious lawsuits were due to additives in Pepsi Beverages that
could cause harm to the human body including cancer. The
company also had a lawsuit filed against them because they
decided to put labels like “all natural” on their Naked juices.
The purpose of this was so PepsiCo could get into the growing
natural foods market (PepsiCo, Inc. 2015). This can affect the
future of PepsiCo as it leads to its goals in making healthier
foods and entering new healthy food markets because it can and
has reduced consumer confidence.
Opportunities:
PepsiCo has already planned ahead aligning their goals with
opportunities in the market along with looking at the social and
business aspects of the company. Being a global company
makes it hard for a company to rely on one source of raw
materials. PepsiCo plans to increase its local sourcing to help
both facilitate their production process but also to help adapt
their products to each local market. For example if a country
like Japan likes sushi flavored Lays chips then they make the
product for that segment. Another reason for increasing their
local focus is to help keep the materials fresh and maintain the
quality of their products.(PepsiCo, Inc. 2015) PepsiCo has also

9. seen a chance to expand to a new healthy food market by
creating new healthier products as well as lowering the “bad
stuff” like high amounts of salts and saturated fats in their
current products.
Threats:
In recent years the greatest threats to the company have been
rising wages for employees in the United States, rising
competition, and the lack of water supply and quality. As in any
company the increase in labor cost decreases funds in other
categories such as in marketing or R&D for PepsiCo to develop
new methods to make their products healthier and safer. Which
in turn also affects the competition aspect of the company
because other companies who solely produce natural products
does not have to worry about distributing their funds evenly to
create growth for the company. Lastly the drought in countries
throughout the US like in California and the quality of water in
Michigan affect the company because it makes them be more
aware of how much water they are using to make their products.
PepsiCo has been good about this so much that they made it part
of their goals to have a positive impact on the water issue by
doing things like reusing as much water as possible.
COCA-COLA SWOT ANALYSIS
Pros
Cons
Internal
Strengths
· Brand Value $77,839 billion
· World’s Largest Beverage company
· Strong marketing and advertising
Weaknesses
· Focus on carbonated drinks
· Lack of diversification
Negative publicity
External
Opportunities

10. · Growth beverage consumption in emerging markets.
· Increasing bottles water demand
Healthy diversification
Threats
· Scarcity of water
· Changes in consumer preferences
Coca Cola Strengths:
In 2011 Coca Cola was awarded with the “Highest Brand Equity
Award” because of its vast global presence and unique brand
identity. This makes Coca Cola one of the costliest brands with
the highest brand value. In the beverage industry there are only
2 big competitors, Pepsi and Coca Cola. Out of these 2 Coca
Cola is the clear winner as its presence stretches to more than
200 countries around the world. Coca Cola’s presence is also
due to its strong marketing and advertising strategies, unlike
Pepsi where it is constantly changing its image to target the
younger age group. Coca Cola on the other hand targets all age
groups. They also do a good job of targeting well-known
celebrities to help market their brand.
Coca Cola Weaknesses:
Coca Cola’s biggest competitor is Pepsi however, Pepsi had
moved away from the soda only model of revenue. Pepsi has
developed other types of revenue such as lays chips and other
foods. Coca Cola has yet to develop any of these. People have
also becomes extremely concerned with the link between
carbonates drinks and obesity and diabetes. These drinks create
a negative view in the public eye as they contribute the obesity
epidemic and haven’t suggested a healthier solution yet.
Coca Cola Opportunities:
Developing countries such as India have extremely hot
summers, which results in the doubling in consumption of cold
drinks. Also, within these developing countries hygiene has
become a major factor and has led to the increase in packaged
drinking water. Coca Cola can also improve and produce

11. healthy beverages and good in the future which will obviously
boost its revenue.
Coca Cola Threats:
Water is Coca Cola’s biggest threat as they were recently
suspected of using pesticides however; even greater is that the
scarcity of water is on the rise. With the growing concern over
climate change people are beginning to blame beverage
companies for its vast consumption of water. If water were to be
regulated in anyway they could experience a serious decrease in
their revenue. Coca Cola is constantly facing threats from
indirect competitors such as Starbucks, and other chains that
offer a healthy alternative. These alternatives are not big
competition for Coke but they do enough to put a dent in the
beverage market. Energy drinks such as Red Bull and Gatorade
are also indirectly stealing some of the market share.
DR PEPPER SNAPPLE GROUP SWOT ANALYSIS
Pros
Cons
Internal
Strengths
Largest independent bottler in the United States.
Weaknesses
Invest most heavily in key brands rather than new products.
External
Opportunities
Producing products that are targeted towards healthier
consumers.
Threats
Most products are not as internationally known.
Strengths:
Dr Pepper Snapple Group is one of the dominating beverage
companies, and the largest independent bottler in the United

12. States. The group markets over 50 kinds of refreshment, and has
the longest history in the field, producing the first soft drink in
1783. The group focuses on a variety low or no calorie products
that corresponds to their belief it lead to a healthy lifestyle, and
is a belief many in the consumer market are leaning towards.
The group also creates distribution agreements with appealing
new products that allows them to enter new markets with low
risk and capital investments (Dr Pepper Snapple Group, 2017).
Weaknesses:
Though the group continues to acquire many new products, and
enter new markets, it focuses more on investing in its current
brand products and how to alter them to correspond to changing
trends in the market. Trends are changing rapidly, investing in
the alteration of current brand products will eventually lead to a
point where that product will not be able to fit the market’s
needs. As such, new products would need to replace them (Dr
Pepper Snapple Group, 2017).
Opportunities:
Trends with consumers are continuing to shift towards healthier
products, especially in the soft drinks market. Maintaining their
wide range of low or no calorie products such as teas,
carbonated waters, and other healthy options gives the group the
opportunity to expand their market presence. This opportunity is
not limited to the North American market, but internationally as
well (Dr Pepper Snapple Group, 2017).
Threats:
Many of the products produced, or sponsored by Dr Pepper
Snapple Group are, largely, only known in the North American
market, not internationally. By solely focusing their efforts on
that market, the group is hindering the expansion of their
products. Competitors are already ahead, taking advantage of
such opportunities, and are outsourcing products internationally
(Dr Pepper Snapple Group, 2017).
CONSUMER ANALYSIS
Market Segmentation

13. PepsiCo uses segmentation to analysis the behavior of the
consumers for their products. They divide the population into
groups that fit into certain characteristics that would help
PepsiCo to target the audiences. An example used by PepsiCo
includes the product of Diet Pepsi “which is positioned as a
carbonated drink that contains less sugar among of sugar
compared to Pepsi-Cola and other soft drinks.” (Dudovisky
2016) After doing multiple research, PepsiCo noticed the target
audience of most of their consumers. Using the four
segmentation of geographic, demographic, behavioral and
psychological segmentations, the table provided below
demonstrates the targeted audience that most likely will
purchase a product from PepsiCo. (Dudovisky 2016)
Needs and Wants from PepsiCo
PepsiCo has done an amazing job in finding the needs and wants
from its customers. An example of this includes the healthy
product brands vs the well known brands the company is known
for. The company has tried to sell a more healthier brand of
their products to their consumers but the customers of their
products have been loyal and purchased the products they have
enjoyed for many years. One of the reasons that affects the
PepsiCo products is based on tastes. Estrel reports that “Taste is
the biggest factor in a snack purchase, according to 66% of
baby boomers and 53% of millennials in a March survey by
consultancy Alixpartners.” (Estrel 2016) Another example on
how PepsiCo determines their products is based on the sales on
whether they grow or decline. Healthy products such as the mid
calorie level Pepsi Next and Quaker Yogurt have fizzled in
sales while more well known brands such as Doritos and Lay’s
Chips have actually increased in sales. Another factor includes
the cost for the production where natural and organic products
are much costlier and harder to develop. PepsiCo has been
trying to earn a good reputation by offering healthier products
but “The world's biggest food companies have been trying to
ramp up healthier offerings for years, but consumers haven't
given up their love for all things sweet and salty.” (Estrel 2016)

14. While PepsiCo still offer their well known products that help
them generate revenue for years, PepsiCo still try to offer new
products that could provide more healthier options such as the
Baked Lay’s Chips and Diet Pepsi that contain less calories and
sodium.
Dudovskiy, John. "PepsiCo Segmentation, Targeting and
Positioning." Research Methodology. N.p., 9 May 2016. Web. 8
Mar. 2017.
Esterl, M. (2016, Dec 11). PepsiCo wants to sell healthy food,
consumers want chips; the food and beverage giant says it wants
to make more 'good for you' snacks, but much of its revenue
growth comes from high-fat, high-salt standbys such as doritos
and cheetos. Wall Street Journal (Online)
MARKETING & PRODUCT OBJECTIVES
Pepsico. is one of the leading foods and Beverages Company in
the world. Its headquarters are in New York, United States. Its
products are sold in more than 200 countries in the world
making it the second most renowned organization in the
beverage industry after Coca cola. The two compete in all
market segments of the food industry. Its products range from
soft drinks, snacks, bottled water, sports nutrition products and
energy drinks. Other new products are reported to be in the
pipeline and will be rolled out to consumers with time once
complete.
The company’s current market is teenagers and young adults
who have been the major consumers of its products since its
launch. They consume almost 70% of its products annually and
generate high profits for the company in the process. The
company’s majority consumers are bases in the United States,
where it is located, with the rest in countries spread all over the
world. In Africa and parts of Asia, the company controls small
sections of the beverages sector compared to Europe and
America.

15. Currently the company is targeting new markets and consumers
by pushing into the health sector. It has introduced Tropicana
and Quaker food operations, which account for over a third of
its new products segment. It has also introduced new products
in China and U.S markets to compete with health food products
in the two regions. China is one of the countries with the
highest population growth rates in the world hence making it
the main target market. It has also introduced new low-calorie
fruit puree snacks set to be distributed in Tropical market
regions.
The company is doing this by working with its target audience
and hope the launch will be a success. They believe new health
products could generate high markets and increase its market
share in the world. This could increase the company’s profit
that is the aim of any organization when operating. This product
targets the older generations that are made up individuals over
the age of 45 years who value their health and wellbeing hence
do not consume most of its beverage products due to health
concerns.
The company also takes up new markets by doing merging with
the existing organizations in the regions that control a large
portion of the market share. The organizations sell Pepsi Co.’s
products and operate under its name. The owners of the
acquired organizations are paid to do this by the company.
Pepsico. offers a range of products that are targeting people
from all age groups and are available in almost all parts of the
world. Some of the company’s revised products range from soft
drinks to health foods. The soft drinks include Pepsi cola,
Mountain Dew, Sierra Mist, IZZE, Naked Juice, Ocean Spray
and Lipton. In internal markets, its products are Fiesta Miranda,
Manzanita Sol and Kas Mas. The oldest product in this category
is the Pepsi cola that was introduced when the company was
starting out. Today the product is available in different
varieties, which are Pepsi Wild Cherry, Caffeine-Free Diet
Pepsi and Caffeine-Free Pepsi. It also has a number of energy
drinks that are used by sports athletes and young people in most

16. cases.
Some of the company’s other products include Sierra Mist,
Fritos, Starbucks ready to drink beverages, Brisk, walkers, 7Up,
Cheetos and Mirinda.The company is in its pilot stage of rolling
out new health products in both domestic and international
markets with a view of getting new consumers on board from
various market segments. Some of them include Quaker foods,
Gatorade and Tropicana product lines.
Pepsi Co.’s positioning in the global markets has been boosted
by a number of factors in the recent years which have not only
boosted its sales but also increased its market share. Some of
these factors include its low-cost production costs of soft drinks
which enabled it to provide drinks at a relatively lower price
compared to its main competitor Coca-cola. The company’s
efficient management on production and performance also
boosted its profits and this has been maintained for an extended
period. Its strong distribution channel target is to make sure all
beverages of within reach of customers once one orders for
them. They have established distribution schemes that range
from direct store delivery to customer channel distributor which
acts like a third party when providing products.
The company is recognized in almost every part of the world
including countries such as Pakistan and Bangladesh which are
hard to reach and even harder to market and sell products in due
to poor governance. The company also owns products in other
countries that use its trademark sign. This move has made it
popular in other countries and regions where new market
entrance is extremely hard.
The company’s popularity according to a recent market survey
is also growing compared to its competitors in the different age
groups. This is graphically shown in the perceptual map in
appendix A.2.
According to the map, Pepsi products grew in popularity among
the young consumers in the last five years compared to Coke
whose popularity grew amongst the older generation. This

17. shows the majority consumers preference on the beverage
products from the two largest competitors in the world. (
Zameenzad, 2013)
Appendix
A.1
Segmentation Type
Criteria
PepsiCo Target
Geographic
Region

18. Density
Domestic/International
Urban/Rural
Demographic
Age
Gender
Life-Cycle Stages
Income
Occupation
15-45
Males/Females
Bachelor, Single, Young Couple with no children
Average to Above Average
Students, Employees
Behavioral
Loyalty Degree
Benefits
Personality
User Status
Hardcore/Softcore loyals
Refreshment, good taste, spending time, satisfaction
Easygoing/determined
Regular users
Psychological
Social Class
Lifestyle
Working Class, Middle Class
Aspirer, Succeeder, Explorer
A.2 Perceptual Map

19. WORKS CITED
Balance. (2017, March 8). Retrieved from Dr Pepper Snapple
Group:
https://www.drpeppersnapplegroup.com/company/balance
History. (2017, March 8). Retrieved from Dr Pepper Snapple
Group:
https://www.drpeppersnapplegroup.com/company/history
Strategy. (2017, March 8). Retrieved from Dr Pepper Snapple
Group:
https://www.drpeppersnapplegroup.com/company/strategy
PepsiCo, Inc. SWOT Analysis. (2015). PepsiCo, Inc. SWOT
Analysis, 1-10.
PepsiCo Our Goals. (2016). Retrieved 03 01, 2017, from
PepsiCo.com:
http://www.pepsico.com/Purpose/Performance-with-
Purpose/Our-Goals
PepsiCo. (2016). Our History. Retrieved 03 01, 2017, from
PepsiCo.com:
http://www.pepsico.com/Purpose/Performance-with-
Purpose/Our-Goals
Zameenzad, A. (2013). Pepsi and Maria. New York: Arcadia
Books.
Dudovskiy, John. "PepsiCo Segmentation, Targeting and
Positioning." Research Methodology. N.p., 9 May 2016. Web. 8
Mar. 2017.