PepsiCo has diversified its business over the years through acquisitions of companies like Frito-Lay, Pizza Hut, Taco Bell, Quaker Oats, and Tropicana. It operates through various divisions including Frito-Lay North America, Quaker Foods North America, PepsiCo Americas Beverages, and international divisions. PepsiCo has experienced continuous growth in net revenue and has maintained strategic and financial synergies between its divisions. Its diversification strategy has allowed it to serve a wide range of customers and maintain a competitive advantage in the food and beverage industry.

1. PepsiCo’s Diversification
Strategy in 2014
Anika Rahman
ID: 53; 52D

2. Business Model Canvas of PepsiCo
Key Partners
 Distributors
 Food and beverage
Manufacturers
worldwide
 International Food
& Beverage
associations
 Customers
 Media Companies
Key Activities
 Bottling
 Distribution
 Producing
 Marketing
Value Propositions
 Nutritional foods and
beverages
Customer
Relationships
 Healthy snack and
beverage provider
Customer Segments
 Enterprises
 Young worldwide
 Common people
 Athletes
Key Resources
 Product
 Brand
 Employees
 Partner & Retail Network
Channels
 Advertisements
 Global Sales
Cost Structure
 Marketing tools
 Designing of products
 Ingredients and materials
Revenue Streams
 Product Sales
 Bulk sales

3. Global Organization Chart
PepsiCo
PepsiCo
American Food
(PAF)
FritoLay North
America
Quaker Foods
North America
Latin America
Foods
PepsiCo
American
Beverages
(PAB)
Pepsi America
Bottling
Pepsi Bottling
Group
PepsiCo
International
(PI)
UK and
Europe
Middle East,
Africa and Asia

4. Products of PepsiCo
18Mega Brands
Each $1 Billion or more

5. $0 $5 $10 $15 $20
Pepsi Cola
Mountain Dew
Gatorade
Lay's
Diet Pepsi
Tropicana
Doritos
Lipton Tea
Quaker Foods
Cheetos
7 UP
Ruffles Potato Chips
Aquafina
Mirinda
Tostitos
Sierra Mist
Walkers Potato Crisps
Fritos Corn Chips
PepsiCo Mega Brands:
Revenue by Product(billions)

6. Milestones: Diversifications
1965: Merger
of Pepsi cola
and Frito
Lay; Named
PepsiCo Inc.
1977: Pepsi
acquires
Pizza Hut &
Taco Bell
1986: Pepsi
Cola acquires
Mug Root
beer
1989:
PepsiCo
acquires
Walkers, UK
1990:
Acquires
Gamesa,
Mexico
1991: Joint
venture with
Unilever tea
based drinks
1994:
Partnership
with
Starbucks
Ready drink
coffee
1998:
Acquires
Tropicana
2001: Merger
with Quaker
Oats
2010: Acquire
Wimm-Bill-
Dann, Russia

7. Financial Highlights (2014)
0
10000
20000
30000
40000
50000
60000
70000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Continuous Increase
in Net Revenue
(million)

8. Financial Growth ( Division-wise) in 2014
21%
4%
12%
32%
21%
10%
Frito-Lay North America
Quaker Foods North
America
Latin Americas Foods
PepsiCo America
Beverages
EuroPe
Asia, Middle East, Africa

9. Competitor Analysis
PepsiCo
Dr Pepper
Coca cola

10. Competitor Analysis:
Global Ranking in 2014
#2
#1
#12
Source: Bevindustry.com
40%
29%
31%
Coca-Cola
PepsiCo
Others

12. SWOT analysis
Strength
• Extensive
distribution
channel
• Proactive
marketing
campaigns
Weakness
• Low price
• Weak brand
awareness
Opportunities
• Increasing
demand for
healthy
foods
Threats
• Change in
customer
taste

13. PEST Analysis
Following the
regulations and
policies of different
markets
Expensive labour
in some countries
Advertising based
on understanding
the local society
Advanced
techniques applied
in manufacturing

14. Planet
People
Profit
Triple Bottom Line
Competitive
Advantage
People: Food and beverage to
wide range of customers
Profit: Continuous financial
growth
Planet: Maintaining
sustainable environment

15. Key Takeaways
Strategic fits between the operations of new acquisitions and its
other businesses' has been maintained
Achieving the greatest possible economies of scale
Shared market research information among divisions to
develop new product
Synergies among its business units generated approximately $
I billion annually in productivity
Built value to their shareholders by providing highest dividend

16. Thank You!