supply chine or value chain analysis of Pepsi Co

1.  Company: PEPSICO
 Industry : BEVERAGES AND FOOD PROCESSING
 Founder : Caleb Bradham
 Net Income : 12.51 billion
 CEO : Indra Nooyi
PROFILE

3.  PepsiCo portfolio comprises 22 brands.
 It practices of each brand within PepsiCo
reflect the nature and quantity of raw
materials used.
 One of the innovation that PepsiCo is
exploring is 3D printing.
ex: 3-D printing technology to create
optimal potato chip prototypes.
Primary activities
1. Inbound logistics

4. PepsiCo operations are divided into six
operational segments:
 Frito-lay North America (FLNA): distributing
and branded snacks foods
 Quaker foods North America (QFNA): cereals,
rice, pasta etc…
 Latin America : sells a several snack food in
Latin American market like Marias, Gamesa,
and tostios
2. OPERATIONS

5.  Asia, Middle East & North America
(AMENA): sells of snack food like lay’s,
kurkure etcc.. Through consolidated
businesses.
 Europe & sub-saharian Africa (ESSA): selling
of snack food brands either independently or
with third parties.
 North America Beverages (NAB):selling of
beverages like pepsi, mountain due, tropicana.

6. PepsiCo creates value in outbound logistics via
using multiple product distribution formats.
They follow the three formats of distribution:
 Direct-store-delivery: the products categories
that are re-stocked very often. It provides
merchandizing with maximum visibility and
appeal within stores.
OUTBOUND LOGISTICS

8.  Deliveries to customer warehouses: perishable
products are distributed in this format and
this is most cost-effective format.
 Using distributor network : third party
distribution are needed in order to facilitate
the distribution to locations far from PepsiCo
manufacturing plants and warehouses.

9.  They spend 2.4 billion USD as advertising
budget.
 Use of print, social media, celebrity endorsement
and product placement.
 Marketing message attempts with perceptions
of enjoying life to the full extent, stay active and
spending quality time together with friends and
loved ones.
MARKETING & SALES

10. PepsiCo sells its products to final consumers
only via re-sellers and intermediaries such as
supermarkets, grocery shops, restaurants and
catering business.
they deals with customer service inquires
and questions related to its brands and specific
products via customers service phone no, and
online contact forms available on official
websites.
SERVICES

11. PepsiCo’s generic competitive strategy is
based on the needs to address market pressure
coming from its biggest rivals.
it’s a intensive strategy to ensure long-term
growth
 Cost leadership
 Brand differentation
supporting activities
1. INFRASTRUCTURE

12.  Provide leadership and direction to
employees of the company.
 Maintaining data records of all
employees (HRIS)
 They usually prefers job posting.
HUMAN RESOURCE
MANAGEMENT

13.  Using good quality of machineries and cold
storages.
 New technologies towards packing and
labeling of products.
 Creative innovations and advertisements
 eco –friendly refills and recyclable bottles.
Technology