This document provides an overview of PepsiCo Inc. including: - It was founded in 1965 through the merger of Pepsi-Cola Company and Frito-Lay, Inc. and is now a global food and beverage company. - Its portfolio includes Frito-Lay snacks, Pepsi-Cola drinks, Quaker foods, and Gatorade. - The company aims to provide convenient foods and beverages while ensuring local relevance and encouraging healthy lifestyles.

1. CASE STUDY
Submitted By :- Bhupesh Bindal
PRN :- 12030141087
Class :- MBA-IT(B)

2. Brief Introduction
• PepsiCo Inc . is an American multinational corporation
headquartered in Purchase, New York, United States,
with interests in the manufacturing, marketing and
distribution of grain-based snack foods, beverages, and
other products
• Traded as : NYSE PEP S&P 500 Component
• Key people : Indra Nooyi (Chairman & CEO)
• Founders : Donald Kendall, Herman Lay
• Industry : Foods, Beverages
• Founded : North Carolina, U.S. (1965)

3. History
• The recipe for Pepsi, the soft drink, was first developed in
the 1880s by a New Bern, North Carolina pharmacist and
industrialist, Caleb Bradham, who named it "Pepsi-Cola" in
1898.
• As the cola developed in popularity, he created the PepsiCola Company in 1902 and registered a patent for his recipe
in 1903.
• PepsiCo was formed in 1965 with the merger of the PepsiCola Company and Frito-Lay, Inc. PepsiCo has since
expanded from its namesake product Pepsi to a broader
range of food and beverage brands, the largest of which
include an acquisition of Tropicana in 1998 and a merger
with Quaker Oats in 2001—which added
the Gatorade brand to its portfolio.

4. Mission and Vision
• Their mission is to be the world's premier consumer
products company focused on convenient foods and
beverages, 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.
• Vision is to 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.

5. BRANDS
• Pepsi-Cola Brands
• Soft Drinks
• Frito-Lay Brands
• Snacks
• Tropicana Brands
• Juices
• Quaker Brands
• Cereals
• Gatorade Brands
• Energy Drinks

6. Business Model
Key Resources
-Employees
-Raw Materials
Key Competitors
-Coca Cola
-Nestle
Vendors
-local vendors
Value Proposition
Diversity
Local Relevance
Customer
Values
Healthy Customer
Partners in terms of Contract
-Pizza Hut
-McDonalds
Cost Structure
-costs on advertisements
-sponsorship
Revenue Stream
-By selling their products

7. Value Proposition
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Distributing global brands while ensuring local relevance
Strengthening advantaged local supply chain and go-to-market capabilities
Encouraging people to live balanced and healthy lives
Win with diversity and Inclusion.
Focussing in Efforts at the intersection of Business Interest and Public
Interest.

8. Strategies
Our strategies for growth position PepsiCo well for the future:
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Build and extend our macro-snacks portfolio
Sustainably and profitably grow our beverage business worldwide
Unleash the power of the Power of One
Expand our nutrition businesses
Ensure excellent financial performance
The company started a new market strategy to sell their Pepsi Cola product in Mexico, stating
that about one third of the population has difficulty pronouncing "Pepsi". They started
manufacturing and selling their product under the label 'Pécsi
Our businesses are poised for top-tier operating and financial performance,
including cash returns, enabled by:
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Geographic flexibility
Portfolio flexibility
Go-to-Market flexibility
Importance to retail customers
Management strength

9. Towards Healthier World

10. Management Structure

11. Brief Financials
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Revenue : US$ 66.504 billion
Operating income : US$ 9.633 billion
Net income : US$ 6.462 billion
Total assets : US$ 72.882 billion
Total equity : US$ 20.899 billion
Revenue in the fourth quarter of 2011 for Pepsi increased $20.2 billion.
The gain was driven by both rising volume and higher prices.
Sales volume of snack brands increased 8% for both the fourth quarter and the year.
Beverage volume increased 3% for the quarter and 5% for the year.

12. Sales Data

13. Corporate Social Responsibilities
• PepsiCo is leading company in Environmental Issues.
Goal by 2015
» Reduce water consumption by 20%
» Reduce electricity consumption by 20%
» Reduce fuel consumption by 25%
• CAP Foundation
» Partner in training and provide alternate livelihood options for
Tsunami affected communities in Andhra Pradesh and Tamil Nadu.
• International Labour Organisation
» Partner in creating and implementing its HIV/AIDS Workplace Policy

14. SWOT Analysis
Strengths
Weaknesses
Branding
Presence in over 200 countries
Overdependence on Wal-Mart
Diversification
Overdependence on US Markets
Direct distribution from manufacturing plants and
warehouses to customer warehouses and
Low Productivity
retail stores
SWOT
Opportunities
Threats
Broadening of Product Base
Decline in Carbonated Drink Sales
International Expansion
Potential Negative Impact of Government Regulations
Growing Savory Snack and Bottled Water market in
US
Intense Competition
Potential Disruption Due to Labour Unrest