The document provides a summary of PepsiCo's corporate social responsibility activities in 3 areas: 1. Environment sustainability including goals to reduce water usage, carbon footprint, and minimize land impact through sustainable packaging and sourcing. 2. Human sustainability including commitments to improve nutrition in products and responsible marketing. Goals include reducing sugars, sodium and saturated fats while increasing whole grains and nutrients. 3. Talent sustainability focusing on developing employees and local communities through training and job opportunities. PepsiCo's success is attributed to its people.

1. PR Report
Group 5 SYBBA- ‘B’
Company: PepsiCo
Name Roll No.
Sarthak Bajaj B-005
Siddhartha Gupta B-015
Zoya Kazi B-025
Rohan Negi B-035
Jaineel Shah B-045
Keshav Viswanath B-055
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2. Table of Content:
Sr.No Topic By: Page
No.
1. Introduction Keshav Viswanath 3
2. Events/Sponsorship/Promotions Siddhartha Gupta 6
3. Corporate Citizenship Jaineel Shah 9
4. CSR Activities Sarthak Bajaj 13
5. Crisis/Emergencies Rohan Negi 17
6. PR Agent/PRO Zoya Kazi 20
7. Social Audit 23
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3. Introduction
Keshav Viswanath B-055
Background
Pepsi is a carbonated soft drink that is produced and manufactured by PepsiCo. Created and
developed in 1893 and introduced as Brad's Drink, it was renamed as Pepsi-Cola on August
28, 1898, and then to Pepsi in1961.During the typical hot and humid summer of 1898 in New
Bern, North Carolina, a young pharmacist named Caleb Bradham began experimenting with
combinations of spices, juices and syrups to create a refreshing new drink to serve his
customers.
He advertised his new soft drink. People responded, and sales of Pepsi-Cola started to grow,
convincing him that he should form a company to market the new beverage.
At first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon
Caleb recognized that a greater opportunity existed to bottle Pepsi so that people could drink
it anywhere. The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially
registered with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the
theme line "Exhilarating, Invigorating, Aids Digestion."
He also began awarding franchises to bottle Pepsi to independent investors, whose number
grew from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the
following year, and 40 by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24
states.
Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in the
back room of Caleb's pharmacy. Building a strong franchise system was one of Caleb's
greatest achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to
the product's success, provided a sturdy foundation. They were the cornerstone of the Pepsi-
Cola enterprise. By 1907, the new company was selling more than 100,000 gallons of syrup
per year.
Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the
town of New Bern pictured it on a postcard. Famous racing car driver Barney Oldfield
endorsed Pepsi in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer
before a race."
The previous year, Pepsi had been one of the first companies in the United States to switch
from horse-drawn transport to motor vehicles, and Caleb's business expertise captured
widespread attention. He was even mentioned as a possible candidate for Governor. A 1913
editorial in the Greensboro Patriot praised him for his "keen and energetic business sense."
Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with the
slogan, "Drink Pepsi-Cola. It will satisfy you."
Then came World War I, and the cost of doing business increased drastically. By 1921, only
two plants remained open. After five owners and 15 unprofitable years, Pepsi-Cola was once
again a thriving national brand.
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4. Pepsi through the 20th century
1902-"Pepsi-Cola" was officially registered with the U.S. Patent Office.
1903-Bradham's advertising praises his drink as "Exhilarating, invigorating, aids digestion."
1905- A new logo appears, the first change from the original created in 1898.
1909- Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity endorser
when he appears in newspaper ads describing Pepsi-Cola as "A bully drink...refreshing,
invigorating, a fine bracer before a race."
1920- Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."
1939- A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a
Nickel" to increase consumer awareness of Pepsi's value advantage.
1940- Pepsi makes advertising history with the first advertising jingle ever broadcast
nationwide. "Nickel, Nickel". Eventually became a hit record and was translated into 55
languages. A new, more modern logo is adopted.
1943- The "Twice as Much" advertising strategy expands to include the theme, "Bigger
Drink, Better Taste."
1953- Americans become more weight conscious, and a new strategy based on Pepsi's lower
caloric content is implemented with "The Light Refreshment" campaign, which later evolves
to incorporate "Refreshing Without Filling."
1961- Pepsi further refines its target audience, recognizing the increasing importance of the
younger, post-war generation. "Now it's Pepsi, for Those who think Young" defines youth as
a state of mind as much as a chronological age, maintaining the brand's appeal to all market
segments.
1963-The post-war baby boom emerges as a social and marketplace phenomenon. Pepsi
recognizes the change, and positions Pepsi as the brand belonging to the new generation-The
Pepsi Generation. "Come alive! You're in the Pepsi Generation" makes advertising history. It
is the first time a product is identified, not so much by its attributes, as by its consumers'
lifestyles and attitudes.
1964- A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.
1969- "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation
advertising strategy. Youth and lifestyle are still the campaign's driving forces, but with
"Live/Give".
1976-"Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving national
mood.
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5. 1983- The soft drink market grows more competitive, but for Pepsi drinkers, the battle is
won. The time is right and so is their soft drink. It's got to be "Pepsi Now!"
1984- "Pepsi. The Choice of a New Generation" announces Michael Jackson, in the first two
commercials of the new campaign. The two spots quickly become "the most eagerly awaited
advertising of all time."
1987- After an absence of 27 years, Pepsi returns to Times Square, New York, with a
spectacular 850-square foot electronic display billboard declaring Pepsi to be "America's
Choice".
1989- "The Choice of a New Generation" theme expands to categorize Pepsi users as "A
Generation Ahead!"
1995- In a new campaign, the company declares "Nothing else is a Pepsi" and takes top
honors in the year's national advertising championship.
1998–1999: "It’s the cola" (100th anniversary commercial)
The New Age
2002- "Change the World" (Japan)
2009–present- "Yeh hai youngistaan meri jaan"
2011–present- "Change the game" (India, Bangladesh & Pakistan for the 2011 Cricket World
Cup)
2012- "Change The Game"
2013- "Oh Yes Abhi" (India)
As of January 2012, 22 of PepsiCo's product lines generated retail sales of more than
$1 billion each, and the company's products were distributed across more than 200 countries,
resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second
largest food & beverage business in the world. Within North America, PepsiCo is ranked (by
net revenue) as the largest food and beverage business.
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6. Events/Sponsorship/Promotions
Siddhartha Gupta B-015
Promotion: Pepsi Stuff
Pepsi Stuff was a major loyalty program launched by PepsiCo, first in North America on
March 28, 1996 and then around the world, featuring premiums — such as T-shirts, hats,
denim and leather jackets, bags and mountain bikes — that could be purchased with Pepsi
Points through the Pepsi Stuff Catalog or online. Customers could acquire points from
specially marked Pepsi packages and fountain cups. Additional points were sold both by
Pepsi and by consumers, the latter mainly enabled by eBay. The Pepsi Stuff promotion ended
December 31, 2008.
Points were distributed on 4 billion packages and billions of cups and millions of consumers
participated. Pepsi Stuff continued to run throughout North America due to consumer and
bottler demand, and was eventually expanded to include Mountain Dew and other drinks, and
into many international markets.
Pepsi Stuff was one of the first major consumer promotions to feature a dedicated interactive
Web site. Celebrities like Andre Agassi, David Beckham, Beyoncé, Britney Spears, and the
Spice Girls appeared in TV, print, and Internet advertising promoting Pepsi Stuff. PepsiCo
produced over 200 million catalogs each year, billions of Pepsi points, and an extensive line
of free merchandise. This increased Pepsi’s sales significantly prompting people to purchase
Pepsi in order to get free merchandise. This was a very effective promotional campaign soon
to be emulated by other companies.
Different products had codes worth different point values; single bottles generally had one
point while can 12-packs had two and 24-packs had four. Codes from Pepsi NFL Kickoff 12-
packs were worth four points. Items available for redemption through the promotion ranged
in value from 5 points (MP3 song download) to 175 points (Vintage Pepsi logo hoodie
sweatshirt). Customers could also redeem points for entry in various sweepstakes.
.
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7. Event: World Water Week
World Water Week, 2012-Pepsi received Industry Water award.( PepsiCo was recognized for
the unparalleled steps it has taken to conserve water across its business operations and
agricultural supply chain)
Entering its twenty-second year, World Water Week in Stockholm attracts global
representation from public, private and intergovernmental organizations that work to identify
responses and potential solutions to changes impacting water and food security. Hosted by
the Stockholm International Water Institute (SIWI), the event is the leading global focal point
of water sustainability dialogue and exchange - creating a forum for advanced partnerships
and ideas. PepsiCo is excited to participate in World Water Week as a Gold sponsor and
laureate of the prestigious Industry Water Award.
Aligned with the theme of World Water in 2012, Water and Food Security, PepsiCo is
applying a model of 'doing more, using less' to the entire food chain from growing
ingredients with 'more crop per drop' of water, to manufacturing with less waste, energy and
water use. Ultimately, we are striving for optimum productivity while operating as efficiently
as possible in a resource constrained world.
In addition to sponsoring World Water Week in 2012 and receiving the 2012 Industry Water
Award, PepsiCo will host and participate in several events on subjects include water and
energy efficiency, farm verification programs, and food security. PepsiCo will also
participate in dialogues during the Opening Plenary Session, Founders Business Seminar and
workshop on Governance for Water and Food Security among other program events.
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8. Sponsorship: IPL
 PepsiCo won the rights to be title sponsor of the Indian Premier League for five
seasons, commencing 2013.
 The winning bid was for Rs 396.8 crores, followed by Airtel’s offer for Rs 315 crores.
 “IPL will be called Pepsi IPL for the next five years. The winning bid is almost
double than what earlier sponsor was giving. DLF were giving 40 crores per year.
 Pepsi will be giving 79 crores per year on an average.” Deepika Warrier, Pepsi Foods
marketing head, said: “We are delighted on getting the sponsorship rights to IPL. The
event is the crowning glory of cricket in India. Pepsi has got a very long association
with cricket for 20 years. We have always been game changers when it comes to the
sport.”
 The PepsiCo spokesperson, when asked whether the sponsor overvalued the IPL, said:
“We really believe in this property and feel this is a big brand that the BCCI has been
able to build. It’s a brand that rivals sporting brands across the world. I think it’s an
absolutely game changing format.”
She added: “The kind of viewership that the IPL gets in India and across the world is of great
interest to us. The format is very entertaining and all the major international players want to
play in it. The format is going to get better and we are going to take it deeper, reach out more
and take it to schools.” The IPL is being telecast in over 192 countries, informed Shukla.
With this wide reach offered by IPL, Pepsi can surpass their closest competitor Coke.
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9. Corporate Citizenship
Jaineel Shah B-045
PepsiCo has made a promise to deliver sustainable growth by investing in a healthier
future for our consumers, our associates, our communities & our planet. We deliver on
this promise by striving to meet the goals & commitments we’ve made in four key areas:
Performance, Human Sustainability, and Environment Sustainability & Talent
Sustainability.
1. Environment Sustainability:
PepsiCo’s Global Commitments & India’s Progress:-
i. Water:
 Respect the human right to water through world-class efficiency in our operations,
preserving water resources and enabling access to safe water.
ii. Climate Change:
 Reduce the carbon footprint of our operations.
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10. iii. Land & Packaging:
 Rethink the way we grow, source, create, package & deliver our products to minimize
our impact on land.
iv. Community:
 Respect and responsibly use natural resources in our businesses & in the local
communities we serve.
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11. 2. Human Sustainability
As an industry leader in the food and beverage business, we have a responsibility to
help deliver healthy, nutritious and tasty products to our consumers. We are doing this
by enhancing our product portfolio to deliver products that offer improver nutritional
and functional benefits. Our brands, which include Quaker Oats, Tropicana, Gatorade,
Frito-Lay and Pepsi, are household names that stand for superior quality and great
taste throughout the world. We have committed to reduce the average amount of
added sugar, sodium and saturated fats per serving in key global brands in key
countries, while increasing the amount of whole grains, fruits, vegetables, nuts, seeds
and low-fat dairy in our global product portfolio. Today, our portfolio includes several
healthier options and some hydrating and nourishing products. We are also committed
to responsible marketing and nutrition labelling to improve nutrition education and we
support programmes that promote physical activity and a healthier lifestyle.
 Following are the goals which we wish to accomplish in the near future:
i. Increase the amount of whole grains, fruits, vegetables, nuts, seeds and low-fat
dairy in our global product portfolio.
ii. By 2015, reduce the average amount of sodium per serving in key global food
brands, in key countries by 25% compared to a 2006 baseline.
iii. Reduce the average amount of saturated fat per serving in key global food
brands, in key countries, by 15% by 2020, compared to a 2006 baseline.
iv. Display calorie count and key nutrients on our food and beverage packaging by
2012(accomplished).
v. Advertise to children under 12 only products that meet our global science-based
nutrition standards.
vi. Invest in our business and research and development to expand our offerings of
more affordable nutritionally relevant products for undeserved and lower-
income communities.
vii. Expand PepsiCo Foundation and Pepsi Corporate contribution initiatives to
promote healthier communities, including enhancing diet and physical activity
programs.
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12. 3. Talent Sustainability
Our commitment to talent sustainability means we’re continually working to identify,
develop and retain exceptional people. Our people are our greatest strength. They are the
ambassadors of our culture and living examples of our values and commitment to deliver
‘Performance with Purpose’. Our ability to grow year after year is driven by our ability to
attract, develop and retain world-class people.
Our talent sustainability promise is to invest in our associates to help them succeed and
develop the skills needed to drive the company’s growth, while creating employment
opportunities in the communities we serve. We owe our success to the work of our people in
India, who drive our business by nourishing and delighting our Indian consumers’ every day.
We believe in nurturing and inspiring our employees by giving them opportunities to further
develop their skills through focused training and learning interventions.
We promote a safe, caring and supportive working environment. Our Talent Sustainability
commitments help guide our strategy and initiatives to develop our associates and contribute
to better living standards in our communities.
 Following are the measures undertaken by PepsiCo:
i. Ensure high level of associate engagement and satisfaction as compared with other
Fortune 500 companies.
 ‘One Simple Thing’ (OST) – it is a special initiative to support work-life
balance launched in 2010. This initiative provides an opportunity for
employees to discuss with their manager and implement solutions that help
improve work-life balance.
ii. Foster diversity and inclusion by developing a workforce that reflects local
communities.
 A national safety audit for women was conducted in 2010. The women’s help
line ‘Sakhi’ was rolled out to all female employees and safety cards were
provided.
iii. Encourage our associates to lead healthier lives by offering workplace wellness
programmes globally.
 We continue to introduce new and innovative programmes under our
employee wellness programme. In 2010, we introduced 2 new programmes
which covered 1600+ associates.
iv. Ensure a safe workplace by continuing to reduce lost time injury rates, while striving
to improve other occupational health and safety metrics through best practices.
v. Support ethical and legal compliance through annual training in our Code of Conduct,
which outlines PepsiCo’s unwavering commitment to its human rights policy to treat
every associate with dignity and respect.
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13. Core CSR Activities – PepsiCo
Sarthak Bajaj B-005
Pepsi’s CSR Activities are divided into 4 parts.
1. Replenishing Water
Conserving the world's most precious asset: Water
PepsiCo India has pioneered several major initiatives to replenish water in communities. Our
goal is to conserve, replenish and thus offset the water used in our manufacturing process
through community water recharge projects and water conservation projects in agriculture.
2009 was a year of immense joy & pride for PepsiCo India. We were able to give back more
water than we consumed, through our various initiatives of recharging, replenishing &
reusing water.
2. PepsiCo Solid Waste Management Programme
PepsiCo India continues to strengthen its Solid Waste Management initiatives in partnership
with Exnora, an environmental NGO. This award winning, income generating partnership
provides a clean environment to more than 450000 people across Pammal, Chennai,
Nagapattinam, Tenkasi and Cuddalore in Tamil Nadu, Sangareddy in Andhra Pradesh and
Panipat, Haryana.
 Unique income generating partnership with leading
environmental NGO, Exnora, a pioneer in waste
management.
 Community members enjoy the benefits of a clean
environment and are educated on how to recycle waste,
not just relocate it.
 Households segregate their bio-degradable waste from
their recyclable waste. Bio-degradable waste is then
converted into organic manure through the process of
vermi-culture.
 Recyclable waste such as PET and plastics, waste paper and tetra packs are recycled.
 Community awareness programme includes door-to-door campaigns and street plays to
motivate people to segregate organic and inorganic garbage at source to enable recycling.
 Every aspect of programme built around Community and Government participation to
help programme evolve into a self sustaining model
Awards
 The unique PepsiCo-Exnora initiative in Pammal was awarded the environmental
Golden Peacock Award for Innovation in 2006.
 Zero Solid Waste Centre in Pammal was recognized as a model project by UNICEF in
2007.
 PepsiCo- Exnora Waste to Wealth program won the BSE NASSCOM Social and
Corporate Governance Award 2008.
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14. 3. Partnership with Farmers
PepsiCo India continues to strengthen its partnerships with farmers across the country to
boost their productivity and income. The plan is to strengthen farmer connect from 21,000 in
2009 to 50,000 by 2012.
Helping farmers improve yield and income
The company's vision is to create a cost-effective, localized agro supply chain for its business
by:
 Strengthening farmer connect from 21,000 in 2009 to 50,000 by 2012.
 Building PepsiCo's stature as a development partner by helping farmer grow more and
earn more.
 Introduction of new high yielding varieties of Potato, Oats, Citrus and others.
 Introduction of sustainable farming methods and contract farming.
 Making world class agricultural practices available to farmers.
 Working closely with farmers and state governments to improve agri sustainability,
crop diversification and enhance farmer incomes.
 Helping farmers refine their farming techniques and raise farm productivity.
 Customized solutions to suit specific geographies and locations.
 Facilitate financial and insurance services so as to de-risk farming.
a) High Quality Seed Program
In order to provide its farmers "The best quality potato seeds", PepsiCo collaborated with the
Thapar Institute of Technology to develop quality potato mini-tubers.
PepsiCo has also made an investment in a world class potato mini-tuber facility at Zahura in
Punjab which helps getting robust and disease-free seeds to its contract farmers.
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15. b) Contract Farming
Partner In Progress Model
PepsiCo has pioneered the concept of contract farming under which the company transfers
agricultural best practices and technology and procures the produce at a pre-agreed price.
 A 27-acre research and demonstration farm was set up in Punjab to support the
initiative to conduct farm trials of new varieties of potato, chilli, corn, peanut and
other crops.
 PepsiCo India's technical team implemented a high quality seed programme to deliver
early generation and disease-free seeds to farmers.
c) Potato Farming
The Impact
 World class, top quality, high-yielding potato varieties introduced.
 High yielding potato seeds have enabled farmers to produce world class potatoes and
procure higher returns.
 PepsiCo India has partnered with more than 11,000 farmers working across Punjab,
U.P., Karnataka, Bihar, West Bengal, Gujarat and Maharashtra for the supply of
world class chip-grade potatoes.
 Partnered with State Bank of India to get soft loans to all its contract farmers to
reduce their cost of cultivation and save them from the clutches of money lenders
(higher interest rates).
PepsiCo India has also partnered with 1,200 farmers in Rajasthan to cultivate barley in a tie-
up with the United Breweries Group.
d) PepsiCo Citrus Project
The PepsiCo and PAGREXCO (Punjab Agri Export Corporation) partnered to start a Citrus
Development initiative in 2002, marked a step forward in PepsiCo's commitment to
diversification of agriculture and improvement in quality of life for farmers.
The Impact
 Initiative has emerged as one of the most successful models of public-private
partnerships in Indian agri-business and would create a localized supply base for
citrus juice for Tropicana business.
 Project played a significant role in introducing a less water intensive alternative to
crops such as paddy.
 Today, farmers can choose from 16 varieties of rootstock and 34 varieties of citrus,
largest collection at a commercial nursery.
 Technical support and expertise were extended to the Punjab Government to set up
two fruit processing plants in Hoshiarpur and Abohar - prime citrus growing areas in
Punjab.
 Each plant is capable of processing multiple fruits and capable of acting as a catalyst
for farmers to adopt horticulture.
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16. 4. Healthy Kids
PepsiCo's Get Active & a Good Nutrition and
Active Lifestyle Program for Children -has seen
robust growth and implementation.
Designed and supported by the PepsiCo Health
& Wellness team, the programs have been
implemented in schools in collaboration with
prominent NGOs & Hriday, Swashrit and the
Indian Medical Association.
Get Active programs have a central objective: to raise awareness on the importance of
balanced nutrition and regular physical activity for a healthy lifestyle among school children.
Starting with a Breakfast Makes Me Smart module in 2008 that emphasized the importance
of healthy breakfast to the My Pyramid module launched in April 2009, Get Active school
programs promote learning nutrition through active engagement.
Get Active believes in combining simplicity and enjoyment. The basic principle is simple &
to establish the fundamentals of Calories In = Calories Out.
The programs have yielded great results. A look at the Highlights:
2008
 Get Active reached 250,000 children across 6 metros and 240 schools in 2008 - a
significant 150% rise over 100,000 children across 2 metros in 2007
 Partnerships with key NGOs and organizations & Swashrit, Hriday Shan and the
Indian Medical Association
 Participation in School/Institutions' Fests and Events
 Prestigious schools like Modern School, Delhi organized a program to enhance
nutrition awareness and the importance of 'Power Breakfast' among children - a first
for the school. Scottish High School and Rotary Club also organized similar events
 The Healthy Lifestyle Exhibition gave visibility to 1000 children from Delhi
2009
 Get Active reached 300,000 children across 10 cities and 350 schools in 2009
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17. Crisis/Emergencies Faced by PepsiCo
Rohan Negi B-035
1. Syringe in My Pepsi Introduction
In 1993, PepsiCo (Pepsi), the leading beverage
company in the world, faced a crisis in the US market,
which could have put the future of the company and
its brand Diet Pepsi in jeopardy. On July 10, a Seattle
TV channel reported that a man and his wife in
Tacoma, Washington, had found a syringe in a can of
diet Pepsi. This was soon followed by a spate of
reports that claimed that consumers had found objects
such as a wood screw, a bullet, a cracked vial, and a
broken sewing needle in the Diet Pepsi cans. Within
no time, 52 such cases were reported from 23 states in
the US.
Problem Statement:
PepsiCo was entering their peak sales season when the tampering incidents were reported.
The news media was creating panic among PepsiCo’s constituencies by frequently displaying
a visual of a Diet Pepsi can with a hypodermic needle next to it, bringing to mind “AIDS or
hepatitis… and that’s pretty scary,” according to Ann Ward, Pepsi’s Manager of Public
Relations (Magiera, “What Went Right”). PepsiCo was confident that their product was safe.
(The PR response for the same will be seen further in the presentation)
The result:
The rumors fizzled out within two weeks
following multiple arrests by the FDA for
filing false reports. Diet Pepsi sales fell by
2% during the crisis. The scare cost Pepsi
some $25 million in lost sales and higher
marketing costs, and another $10 million in
increased coupon. The situation required an
aggressive defense because PepsiCo hadn't
done anything wrong. If the company
remained quiet & complacent the damage
could have been far worse.
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18. 2. Pepsi: Mouse in my Mountain Dew
 Mountain Dew, a yellow drink that is packed with caffeine, is consumed by thousands
of people each day.
 The drink’s manufacturer is PepsiCo which was sued by Ronald Ball of Wisconsin.
Ball claims in a lawsuit back in 2009 that when he opened a can of Mountain Dew
that he purchased from a vending machine, something inside the can did not taste
right. Ball then claims that he spit out a dead mouse.
 The lawsuit documents show that Ball is seeking damages of $50,000 or more. The
lawsuit also says that Ball sent the mouse to Pepsi, which ultimately destroyed it.
 Pepsi dismissed the case based on testimony from an expert who claimed that the acid
used to bottle the drink would have caused the body of the mouse to become jelly.
The expert, Lawrence D. McGill, who holds a PhD. in veterinary pathology said “if a
mouse is submerged in a fluid with the acidity of Mountain Dew, after 4 to 7 days in
the fluid the mouse will have no calcium in its bones and bony structures, the mouse’s
abdominal structure will rupture, and its cranial cavity (head) is also likely to
rupture… By 30 days of exposure to the fluid, all of the mouse’s structures will
disintegrate to the point where the structures (excepting possibly a portion of the tail)
will not be recognizable and, therefore, the animal itself will not be recognizable.
Instead, after 30 days in the fluid, the mouse will have been transformed into a ‘jelly-
like’ substance.”
 The expert also indicated the mouse he examined was no older than four weeks old at
the time of death.
 Another ingredient used in Mountain Dew is brominated vegetable oil (BVO), which
is banned from use in Japan and Europe, but allowed in small quantities of beverages
like Squirt, Fanta Orange, and Mountain Dew., "If a mouse is submerged in a fluid
with the acidity of Mountain Dew," the mouse would "between four days to at most
seven days in the fluid, the mouse will have no calcium in its bones and bony
structures."
The result:
The case gained attention only for a
brief period of time but has made
sceptics over the years questions
PepsiCo’s expert’s claims.
PepsiCo damaged its own image with
the pathologist’s statements but no
considerable losses in sales were
experience by it across its various Cola
brands.
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19. 3. Pepsi- Toxic Cocktail
In 2003, a Delhi-based public interest research institution, the Centre for Science and
Environment (CSE), alleged that about a dozen popular soft drinks brands, including Pepsi,
contained dangerously high levels of pesticides and insecticides. At a press conference held
in New Delhi, the CSE claimed that tests carried out at its test centres revealed presence of
four extremely toxic pesticides and insecticides - lindane, DDT, malathion and chlorpyrifos
— in various brands of cola majors.
The NGO found Pepsi contained 36 times the amount of pesticides considered acceptable by
the European Economic Commission (EEC). CSE is the same agency that earlier had exposed
the presence of pesticides in popular brands of bottled water. The Food Products Order and
Prevention of Food Adulteration doesn’t have any provision addressing the issue of standards
for non-alcoholic beverages or soft drinks, the CSE said.
The study found that the total pesticides in PepsiCo brands on an average were 0.0180
milligrams per litre. This is 36 times higher that the EEC limit for pesticides (0.0005 mg/l).
The NGO tested one bottle of Pepsi bought in the US. It was found to be free of such
contaminants.
PepsiCo held a joint press conference with Coke to refute CSE’s claims as well as to threaten
legal action against the centre. They not only disputed CSE’s findings but asserted that the
centre didn’t have the wherewithal to carry out proper tests on soft drinks.
Pepsi was willing to get their products tested by an independent internationally accredited
laboratory.
Effect of this Controversy: The Company has decided to stamp a quality assurance seal
which reads: 'One Quality Worldwide' across all its product labels, a first for a soft drink
giant anywhere in the world. The quality seal will appear on labels of its carbonated
beverages, non-carbs, flavors, Tropicana juices, sports drink Gatorade and Aquafina water.
PepsiCo is also in discussions with its snack foods arm Frito-Lay India to put the same seal
on its snack foods labels. The quality seal seeks to assure Indian consumers that the quality of
PepsiCo's products sold in the country is the same as those sold in the US and other parts of
the world.
Result: Speaking to ET(2007), PepsiCo
India's executive director (marketing) Punita
Lal said: "Since the controversy hit only
India, no other country needs such a quality
assurance. The pesticide issue left the
consumer questioning our quality."Colas
(Pepsi in this case), which used to account
for 60% of PepsiCo India's volumes before
the pesticide issue, now contribute about
40% to the company's total volumes.
Marketing spends on colas, too, are down
from 80% of its annual budgets a couple of
years ago, to 60% at present.
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20. PR AGENT/PRO
Zoya Kazi B-025
PepsiCo has a strategic alliance with two major public relations agencies -
Edelman and Weber Shandwick.
Internal Public Relations of PepsiCo
PepsiCo believes that there should be a mutual trust between the employees and the
company. They found that conversations with employees remain one of the most credible
sources of information about a company - ahead of news coverage, online search or
advertisements.
Pepsi considers its employees
as social ambassadors. Pepsi
has made selected internal
newsletter articles available to
post externally which provides
the employees an opportunity to
share something unique about
the place they work on social
network. Since the newsletter is
published daily by email, it
generates a lot of sharable
content. Employees can also
share articles as the one on
Chief Executive Magazine
ranking PepsiCo #7 among the
best companies for leaders or another about mobile phone vending machine integration at
PepsiCo’s operations in Turkey. PepsiCo is also very careful to focus on making it easy for
employees to share articles they want to share on their own initiative, rather than pushing
them to share on behalf of the company.
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21. Crisis Management by Public Relations Agency
 Crisis
The Pepsi Corporation faced a crisis in 1993 which started with claims of syringes being
found in cans of diet Pepsi. Pepsi urged stores not to remove the product from shelves
while it had the cans and the situation investigated.
 Targeted public
The public that Pepsi was targeting was both internal and external. The internal public
would consist of all Pepsi's employees. It is important that the employees of Pepsi be
confident in the product they their employer is trying to sell. The external public targeted
would consist of any individual or organization who drinks or purchases soda and the
press. The press needed to be targeted in order for Pepsi to maintain a positive outlook
through the media.
 Public Relations Campaign
Pepsi was able to communicate with its public effectively because of its PR campaign.
Pepsi's PR campaign involved four principles, putting the public safety first, establishing
and fixing the crisis, communicating with the internal and external public on a regular
basis, and taking responsibility for fixing the crisis. The company's strategy was to
reassure the public that this was not a manufacturing crisis. The PR team used specific PR
communication tools to accomplish these principles. The PR coordinator Madeira, used
specific techniques to inform, influence, and motivates the public such as video news
releases (VNR), press releases, charts, audio tapes, diagrams of the production process
and photos for external and internal distribution. The benefit of the VNR was that it
proved to be the most effective approach to communicating with the public. The VNR
was the quickest and most efficient way to communicate Pepsi's message with the public.
Vice President of Public Affairs, Becky Madeira was able to address the news media,
customers, consumers, and employees as well as local Pepsi-Cola bottle with its "One
Clear Voice" approach, which informed the public of proper facts and any new updates as
they arose. This case showed that Pepsi has an effective crisis management team who did
their job. This was displayed through the fact that they earned the respect of their clients
and employees through effective communication.
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22. Role of Public Relations Agency in Corporate Communication
Pepsi Refresh Project – Role of Weber Shandwick & Edelman
Objective :-
The Project drives conversation and builds credibility in the social enterprise and
innovation arenas through a dynamic, real time “campaign” which democratizes the
process of turning ideas into reality, earning more than 3 billion audience impressions to-
date positively enhancing the Pepsi brand.
The Pepsi Refresh Project was designed to give
away more than $20 million in the U.S. to fund
good ideas, big and small, that move
communities forward. With roles clearly
defined by the client, Edelman & Weber
Shandwick collaborated closely& formed a
nearly seamless team to support
implementation and meet the communication
objectives of the Pepsi program. Each month,
Pepsi invites individuals and organizations to submit ideas that they believe will move
communities forward and the public votes to decide who wins.
STRATEGY AND IMPLEMENTATION
Edelman and Weber Shandwick worked with Pepsi and agency partners to create a strong
communications plan to drive media and voting around the launch of PRP:-
• Casted a national spotlight on the implementation of ideas for refreshing change by
announcing the diversion of funds to implement the Project.
• Collaborated with employees, bottling and retail partners to generate local news angles
and to drive awareness.
• Raised awareness and
increased participation at
grassroots level through
Hispanic and English
language press.
• Promoted Refresh
Everything.com as the online
destination, encouraged
individuals to submit ideas
and vote.
• Encouraged online engagement with the Project on Facebook or on Twitter.
• Developed national partnerships to raise broad awareness of the Project to tell stories of
Project impact and reach.
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23. Social Audit: Survey
In a survey answered by 46 randomly selected people, all within the age bracket of 18-25, the
following questions were asked:
1. How often do you drink Pepsi?
2. Which is your favourite brand of soft drinks?
3. What factors influence your choice of beverage?
4. Do you feel Pepsi Co is socially responsible?
5. Does it influence your buying behaviour?
6. Are they Proactive or Reactive in terms of their CSR Campaigns?
7. What campaigns by Pepsi are you aware of?
8. Can you think of any controversies involving Pepsi Co.?
Analysis:
1. Around 19.5% of the randomly selected people never drink Pepsi.
2. Approximately 35% of the people picked Thumbs Up as their favourite as compared
to only 26% who picked Pepsi.
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24. 3. To 87%, taste is the most important factor when choosing a particular brand of soft
drink.
4. When asked if they thought Pepsi was socially responsible, only a mere 13% actually
felt they are, though 47% felt that Pepsi might be.
5. 57% of the people don’t care if Pepsi is socially responsible or not, when they buy
soft drinks.
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25. 6. The intention of this question was to understand what consumers felt about Pepsi’s
CSR in terms of them being Proactive or Reactive.
Though majority doesn’t know, of the remaining, majority feel that Pepsi’s CSR
campaigns are Reactive. Meaning that the company creates campaigns and makes
efforts as a means of countering or reacting to events in its external environment.
7. When asked what campaigns they were aware of, some of the most common
responses were:
- Dil maange more
-Youngistan
-Oh yes abhi
-Change the game
8. The only controversial issue that people seemed to know about was about Pepsi
containing pesticides.
Thank You 
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