2. 1
Table of Contents
Topic No. Topic Page No.
1 Introduction 2
2 Developmental History 4
3 Mission & Vision Statement 4
4 LOGO Evolution 5
5 Financial Health 5
6 Business Divisions 6
7 Core Business Areas 6
8 Business Practices 9
9 Latest happenings 11
10 Impact of COVID-19 12
11 SWOT Analysis 13
12 Recommendations 14
13 Conclusion 14
3. 2
INTRODUCTION.
epsiCo, Inc. is an American multinational food, snack and beverage corporation headquartered
in Harrison, New York, in the hamlet of Purchase. PepsiCo has interests in the manufacturing,
marketing, and distribution of grain-based snack foods, beverages, and other products. PepsiCo
products are enjoyed by consumers more than one billion times a day in more than 200 countries and
territories around the world.
Pepsi was first introduced as "Brad's Drink", in New Bern, North Carolina, United States, In 1893 the
pharmacy of Caleb Bradham, who made it at his drugstore where the drink was sold. It was later labeled
Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought
to create a fountain drink that was delicious and would aid in digestion and boost energy.
(Pepsistore.com)
In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse. That
year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales
increased to 19,848 gallons. In 1909, automobile race pioneer Barney Oldfield was the first celebrity to
endorse Pepsi-Cola, describing it as "A bully drink...refreshing, invigorating, a fine bracer before a race."
The advertising theme "Delicious and Healthful" was then used over the next two decades. In 1926,
Pepsi received its first logo redesign since the original design of 1905. In 1929, the logo was changed
again.
On three separate occasions between 1922 and 1933, The Coca-Cola Company was offered the
opportunity to purchase the Pepsi-Cola company, and it declined on each occasion.
In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up a blind tasting
between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the majority of participants picked
Pepsi as the better tasting of the two soft drinks. PepsiCo took great advantage of the campaign with
television commercials reporting the results to the public.
In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By 2002, the strategy was
cited by Promo Magazine as one of 16 "Ageless Wonders" that "helped redefine promotion marketing"
In 2007, PepsiCo redesigned its cans for the fourteenth time, and for the first time, included more than
thirty different backgrounds on each can, introducing a new background every three weeks.
P
4. 3
In late 2008, Pepsi overhauled its entire brand, simultaneously introducing a new logo and a minimalist
label design. The redesign was comparable to Coca-Cola's earlier simplification of its can and bottle
designs. Pepsi also teamed up with YouTube to produce its first daily entertainment show called Pop tub.
This show deals with pop culture, internet viral videos, and celebrity gossip.
Pepsi also has sponsorship deals in international cricket teams. The Pakistan cricket team is one of the
teams that the brand sponsors. The team wears the Pepsi logo on the front of their test and ODI test
match clothing.
The PepsiCo headquarters are located in the neighborhood of Purchase New York, in the town of
Harrison, New York. It was one of the last architectural works by Edward Durell Stone. At one time PepsiCo
had its headquarters in 500 Park Avenue in Midtown Manhattan, New York City. In 1956 Pepsico paid $2
million for the original building. PepsiCo built the new 500 Park Avenue in 1960.
FIGURE 1 PEPSICO WORLD HEADQUARTERS
5. 4
DEVELOPMENT HISTORY
1960 to 1965
In the early 1960s, the company product line expanded with the creation of Diet Pepsi and purchase of
Mountain Dew. In 1965 Pepsi-Cola merged with Frito-Lay, Inc., the maker of snack foods such as Fritos,
Doritos, Lay’s potato chips, and Rold Gold pretzels.
1977 to 1986
The newly enlarged company diversified further with the purchase of three restaurant chains—Pizza Hut,
Inc. (1977), Taco Bell Inc. (1978), and Kentucky Fried Chicken Corp. (1986; now called KFC)—and Seven-
Up International (1986), but in 1997 the restaurant chains were spun off into a new, separate company
called Tricon Global Restaurants, Inc.
1993 to 2001
In 1993 PepsiCo introduced Aquafina bottled water into market. PepsiCo acquired the Tropicana and Dole
juice brands from the Seagram Company in 1998, and in 2001 it merged with the Quaker Oats company to
form a new division, Quaker Foods and Beverages.
2008 to 2011
In 2008 it bought a controlling interest in JSC Lebedyansky, Russia’s largest juice manufacturer, and three
years later it completed its acquisition of Wimm-Bill-Dann Foods. Those investments helped make PepsiCo
the largest food and Beverage Company in Russia.
In August 2009, PepsiCo made a $7 billion offer to acquire the two largest bottlers of its products in North
America: Pepsi Bottling Group and PepsiAmericas. In 2010 this acquisition was completed, resulting in the
formation of a new wholly owned subsidiary of PepsiCo, Pepsi Beverages Company.
MISSION AND VISION STATEMENT
Mission Statement
“Our mission is to be the world's premier consumer Products Company focused on convenient foods
and beverages. We seek 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. And in everything we do, we strive for honesty, fairness and integrity.’
Vision Statement
“Our vision is 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.”
6. 5
LOGO EVOLUTION
Logo is what establishes a brand name in the consumer’s mind. It is the brands identity, signature, and
image. Logo plays a very effective role to improve the product or brand. Pepsi kept on changing its logo
from time to time along with the trade marks.
FINANCIAL HEALTH
For the fiscal year 2019, PepsiCo reported earnings of US$7.314 billion, with an annual revenue of
US$67.161 billion, an increase of 21% over the previous fiscal cycle. PepsiCo's shares traded at over
$109 per share, and its market capitalization was valued at over US$155.9 billion in September 2018.
PepsiCo ranked No. 48 on the 2019 Fortune 500 list of the largest US corporations by total revenue.
Sr.No. Year Fortune 500 Ranking Revenue (B US$) Net Profit (B US$) Employees
1. 2015 41 $ 63.05B $ 5.45B 263,000
2. 2016 44 $ 62.79 B $ 6.32B 264,000
3. 2017 44 $ 63.52B $ 4.85B 263,000
4. 2018 46 $64.66B $ 12.51B 267,000
5. 2019 48 $ 67.16B $ 7.31B 267,000
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BUSINESS DIVISIONS
The structure of PepsiCo's global operations has shifted multiple times in its history as a result of
international expansion, and as of 2016 it is separated into six main divisions: PepsiCo Beverages North
America, Frito-Lay North America, Quaker Foods North America, Latin America, Europe and Sub-Saharan
African, and Asia, Middle East and North Africa. As of 2015, 73 percent of the company's net
revenues came from North and South America; 17 percent from Europe and Sub-Saharan Africa; and 10
percent from Asia, the Middle East, and Africa. PepsiCo and its combined subsidiaries employed
approximately 263,000 people worldwide as of December 2015.
CORE BUSINESS AREAS
Beverages
Carbonated beverages
o Pepsi-Cola, and other brands such as Mountain Dew and Mirinda
Noncarbonated beverages
o Tropicana in the juice category and Aquafina in the bottled water category.
Snack foods
Snack foods
o Lay’s potato chips, Doritos tortilla chips, Cheetos cheese flavored snacks
Health foods
o Quaker oatmeal, Quaker Chewy Granola Bars, Cap’n Crunch cereal
Nutrition brands
o Naked Juices
Pepsi Co
Pepsi Co
Americas
Food(PAF)
Quacker
Foods North
America
Frito-Lay
North
America
Latin
Americas
food
Pepsi Co
Americas
Beverage
Food(PAB)
Pepsi
Americas
Bottling
Pepsi
Bottling
Group
Pepsi Co
International
(PI)
United
Kingdom
and Europe
Middle East,
Africa and
Asia
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PRODUCTS DETAILS
Aquafina
Aquafina® bottled water goes through a state-of-the-art purification process so that you
get the refreshment your body craves in its purest form.
Brisk
The original iced tea with tons of attitude. The one with the bold lemon flavor that kicked
iced tea off the back porch and gave it some street cred.
Cheetos
CHEETOS® Snacks are the playfully mischievous cheesy crunch that add a little lighten-up
moment to any day. Proof positive, you simply can’t eat a Cheetos Snack without smiling.
The CHEETOS® brand strives to provide consumers with fun times every step of the way.
Diet Mountain Dew
All the great taste and intensity of DEW without the calories!
Diet Pepsi
With its light, crisp taste, Diet Pepsi gives you all the refreshment you need - with zero
sugar, zero calories and zero carbs. Light. Crisp. Refreshing. Diet Pepsi. Nothing refreshes
like a Diet Pepsi
Doritos
DORITOS® brand tortilla chips deliver a powerful crunch that unlocks the bold and
unique flavors you crave. The DORITOS® brand is constantly creating new ways to give
you immersive and memorable experiences, to put you in control of the things you
love most.
Fritos
The popularity of FRITOS® Corn Chips has put the snack in a class of its own. From small
towns and family barbecues to parties in the big city, this classic snack is a true icon. The
hearty chip even inspired the creation of another American classic, FRITOS® Chili Pie.
Gatorade
Available in over 80 countries, Gatorade's line of performance drinks adds over 40
years of rehydration and sports nutrition research to the PepsiCo portfolio.
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Lays
Wherever smiles happen and happiness is celebrated, you’ll find LAY'S® potato chips. From
backyard BBQs and birthday parties to 4th of July picnics, LAY'S® chips are there to share
the moment. It’s no wonder these deliciously fresh-tasting and perfectly crispy potato chips
have been People’s top priority from a long time.
Lipton
Made with natural ingredients, new 100% Natural Lipton Iced Tea unlocks the natural
goodness of tea, blending it with delicious flavors to hydrate and refresh you.
Mirinda
Mirinda is here to be your carefree laugh out loud partner. The bold fruity taste and the
vibrant fizz will remind everyone; don’t take life too seriously. Enjoy the sensorial fruity
Mirinda experience with Orange, Citrus, Green Apple, and Strawberry, Tangerine and
Pomegranate flavors. Release Mirinda....
Mountain Dew
Mountain Dew exhilarates and quenches with its one of a kind great taste.
Pepsi
The brand leader of PepsiCo. The bold, refreshing, robust cola.
Pepsi MAX
Pepsi MAX is the only soda with zero calories and maximum Pepsi taste!
Quaker
Quaker's family of brands includes household names you know and love. These consumer
brands which deliver great taste, nutrition, quality and variety, have been around for as long
as 130 years. Ninety-two percent of our U.S. brands hold the number-one or number-two
position in their respective...
Ruffles
Chip lovers have come to know that ― Ruffles Have Ridges! The thick ridges of RUFFLES®
Potato Chips help hold more great potato chip flavors and stand up to the thickest dips.
10. 9
Tostitos
TOSTITOS® tortilla chips are made for dipping. Whether it’s a couple of friends gathered to watch
the game or a giant backyard barbecue, TOSTITOS® are the must-have chips—the ultimate salsa
and dip delivery system.
Tropicana
Tropicana, the strongest name in juices, extends the PepsiCo portfolio of brands with plenty of
nutritious, high-quality flavors. Tropicana Products, Inc. is the leading producer and marketer of
branded fruit juices.
BUSINESS PRACTICES
Product Diversity
From its founding in 1965 until the early 1990s, the majority of PepsiCo's product line consisted of
carbonated soft drinks and convenience snacks. PepsiCo broadened its product line substantially
throughout the 1990s and 2000s with the acquisition and development of what its CEO deemed as
"good-for-you" products, including Quaker Oats, Naked Juice, and Tropicana orange juice. Sales of such
healthier-oriented PepsiCo brands totaled $10 billion in 2009, representing 18 percent of the company's
total revenue in that year. This movement into a broader, healthier product range has been moderately
well received by nutrition advocates; though commentators in this field have also suggested that
PepsiCo market its healthier items as aggressively as less-healthy core products.
In response to shifting consumer preferences and in part due to increasing governmental regulation,
PepsiCo in 2010 indicated its intention to grow this segment of its business, forecasting that sales of
fruit, vegetable, whole grain, and fiber-based products will amount to $30 billion by 2020. To meet this
intended target, the company has said that it plans to acquire additional health-oriented brands while
also making changes to the composition of existing products that it sells.
Sustained Growth
PepsiCo expects its employees to have a vision of sustained growth. It’s a skill that harnesses other skills
such as innovation, ambition, and determination.
PepsiCo believes that one of the critical keys to long term success is to have a long term plan. And the
employees must have the vision and value of sustained growth, not just for themselves but for the
company as well.
Empowered People
PepsiCo is an organization that believes in giving freedom and autonomy to its employees, given that
they work within the organization’s governance.
In order to survive at PepsiCo, employee empowerment is a critical skill. The company values people
who can get the job done correctly with minimum guidance.
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Responsibility and Trust
PepsiCo expects its employees to be responsible and trustworthy. The company believes that these two
core values are of the utmost importance leading to the growth of the company.
All employees are expected to execute all activities responsibly, keeping in mind the company policy and
general rules and regulations. It builds the company’s trust in them.
Anti-Bribery
PepsiCo prohibits any form of corruption in our business dealings. You must not pay bribes to anyone,
anywhere, for any reason. You may not accept anything of value that might affect your objectivity in
doing your job. Employees should never offer, directly or indirectly through a third party, anything of
value to obtain or retain business decisions or secure an unfair business advantage.
Financial Accuracy
PepsiCo is trusted as a company that does business with integrity. This is reflected in our commitment to
accurate reporting in our company’s books and records. Employees are expected to Act as an Owner
and be accountable for the accuracy and honesty of the business records, contracts and agreements
that you handle in the normal course of business. One should never falsify, omit, misstate, alter or
conceal any information, or otherwise misrepresent the facts on a company record or encourage or
allow anyone else to do so. All of transactions, no matter what the dollar amount, must be properly
authorized, executed and recorded.
Anti-Money Laundering
Employees must guard against illegal customer or supplier financial transactions for the purposes of
money laundering. Money laundering is the process by which persons or groups try to conceal the
proceeds of illegal activities or try to make the sources of their illegal funds look legitimate. Act as an
Owner and be alert for “red flags,” such as requests from a potential customer or supplier to make
payments in cash or from a nonbusiness account, or other unusual payment terms.
International Trade Controls
As a global company, PepsiCo is subject to numerous international trade laws. If you are involved in the
transfer of goods or services across national borders on behalf of our company or our customers, you
must comply with all applicable laws and company policies regarding international trade restrictions,
regardless of where you are located. If U.S. law conflicts with a local trade law, U.S. law may apply.
Always consult with the Law Department for proper guidance on this subject.
Core Principles
All PepsiCo employees are expected to embrace the principles of the Code. Our Code is the foundation
of our commitment to ethical excellence and provides the policies and guidelines that define how we do
business the Right Way - The PepsiCo Way:
Respect in the workplace
Trust in the marketplace
Fairness in our business relationships
Honesty in business conduct
Purpose in our world
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LATEST HAPPENINGS
PepsiCo targets 100% renewable electricity globally.
PepsiCo is transitioning to 100% renewable electricity globally. We will do this first across our company
owned operations by 2030, with an aim for our entire global operations, including franchisees, by 2040.
“We know the responsibility that comes with our size and scale, so transitioning PepsiCo's global
business operations to 100% renewable electricity is the right step forward to deliver meaningful impact
as we continue to advance our sustainability agenda.”
Jim Andrew
PepsiCo Chief Sustainability Officer
Dada Group and PepsiCo Deepen Strategic Partnership and Launch
China's leading local on-demand delivery and retail platform, and PepsiCo, a global leader in
convenience foods and beverages, announced a new strategic partnership.
The partnership will focus on increasing PepsiCo's market share in the carbonated beverage category by
collaborating on a "flagship" carbonated beverage brand based on refined user operation, online
product supply and trilateral marketing innovation by platform, brand and retailer.
PepsiCo, USAID Launch Five-Year, $20 Million Partnership to Empower Women in Agriculture
PepsiCo (NASDAQ: PEP) announced a new five-year, $20 million partnership with the U.S. Agency for
International Development (USAID) under the Women's Global Development and Prosperity (W-GDP)
Initiative, supporting the global food and beverage leader's efforts to empower women in agriculture
and help build a more sustainable food system. The goal of the project is to drive inclusivity across the
food and beverage industry by demonstrating that actively engaging women as critical drivers of
PepsiCo's sustainable sourcing strategy leads to better business results.
Pepsi generating $100M in sales for Black-owned restaurants
In hopes of raising at least $100 million in sales for Black-owned restaurants over the next five years,
PepsiCo has launched Dig In, a multi-year platform rallying call for consumers to double down on
supporting Black-owned restaurants. The platform also serves as an invitation for Black-owned
restaurateurs to tap into a variety of resources available from PepsiCo including business services,
training and mentorship, according to a company press release. All are ways to support Black-owned
eateries that are facing systemic barriers, which have been worsened by the pandemic
13. 12
IMPACT OF COVID-19 ON BUSINESS
PepsiCo second quarter buffeted by COVID-19 headwinds
Foodservice closures and a slowdown in consumer traffic to convenience stores and gas stations due to
the coronavirus (COVID-19) pandemic hindered PepsiCo, Inc.’s second-quarter performance. The
headwinds pressured the company’s North American beverage business, in particular, which saw
organic sales fall 7% and organic volume fall 10% during the quarter ended June 13.
PepsiCo’s net income fell to $1.7 billion, equal to $1.18 per share on the common stock, during the
quarter from $2 billion, equal to $1.44 per share, during the same period of the previous year.
Second-quarter sales fell to $16 billion from $16.5 billion the year prior.
Quaker Foods North America business Unit Increased
The Quaker Foods North America business unit increased share performance during the quarter despite
supply constraints on some products.
“Quaker was also able to increase household penetration during the quarter,” Mr. Laguarta said. “And
many of our Quaker's categories have grown even as economies reopened during the later parts of the
quarter with consumers purchasing and incorporating these products into their repertoire of food
consumption. We also have strong plans in place to retain incremental households with marketing and
activation plans across the Quaker portfolio during the balance of this year, including the launch of
Cheetos Mac ‘n Cheese this coming fall.”
PepsiCo Beverages North America
PepsiCo Beverages North America sales fell to $5 billion from $5.3 billion the year prior. Operating profit
during the quarter fell to $397 million from $690 million. Sales declines in the convenience, gas and
foodservice channels more than offset business unit growth in other channels such as grocery, mass
merchandisers and dollar stores, according to the company.
Ensuring the health & safety of consumers & communities
As Covid-19 reduced access to food and other essential goods for communities around the world,
PepsiCo invested more than $60 million globally, and catalyzed an additional $59 million in funding from
others to bring food and other vital resources to the most affected communities. The company is also
providing funding for protective gear for healthcare workers, testing and screening services, and is in the
process of distributing more than 100 million nutritious meals globally to at-risk populations.
14. 13
In Pakistan, within two months of launch, the initiative has served over 10 million meals with the help of
some of the country's most lauded charities in Punjab, Sindh, Baluchistan, Khyber Pakhtunkhwa and
Azad Jammu and Kashmir.
Lending a hand to the government of Pakistan, PepsiCo has promised over $1.4 million worth of
meals and a collaboration with Prime Minister's Ehsaas Rashan Portal, which is run under the Poverty
Alleviation and Social Safety Division.
SWOT ANALYSIS
Strengths Weaknesses
1. Product diversity
2. Extensive distribution channel
3. Corporate Social Responsibility
(CSR) projects
4. Competency in mergers and acquisitions
5. 22 brands earning more than $1 billion
ayear
6. Successful marketing and
advertising campaigns
7. Complementary product sales
1. Overdependence on Wal-Mart
2. Low pricing
3. Questionable practices (using tap
water but labeling it as mountain
spring water)
4. Much weaker brand awareness and
market share in the world beverage
market compared to Coca-Cola
Too low net profit margin
Opportunities Threats
1. Growing beverages and snacks
consumption in emerging markets
(especially BRIC)
2. Increasing demand for healthy food and
beverages
3. Further expansion through acquisitions
4. Bottled water consumption growth
5. Savory snacks consumption growth
1. Changes in consumer tastes
2. Water scarcity
3. Decreasing gross profit margin
4. Legal requirements to disclose
negative information on product
labels
5. Strong dollar
6. Increased competition from Snyder’s
15. 14
RECOMMENDATIONS
There are many things that PepsiCo is doing well at and should consider doing in the future. On the
other hand, there are multiple things that PepsiCo could work on and improve in the future. One
thing that PepsiCo does well and should continue doing in the future is making wise decisions about
mergers and acquisitions. In order to continue to grow their business, PepsiCo should continue to
make successful mergers and acquisitions of beverage, bottling, and snack companies. In addition,
22 brands that PepsiCo owns are currently earning more than $1 billion a year. This means that
PepsiCo does not have to rely on a couple brands to generate a lot of revenue. Instead, PepsiCo has
many brands that help contribute to the overall income of the company. Lastly, PepsiCo has spent a
large amount of money on marketing and advertising campaigns. These campaigns have been
successful and resulted in growing market share over the company's competitors.
PepsiCo could improve their dependence on Wal-Mart. Currently, over 13% of their revenues are
generated by sales in the Wal-Mart stores. Because of this, Wal-Mart can easily demand certain
prices which leave PepsiCo with small profit margins. Going forward, I think that PepsiCo should
decrease their dependence on Wal-Mart by placing more products in other stores that compete
with Wal-Mart. Another improvement PepsiCo could make is their pricing decisions.
CONCLUSION
Pepsi is a well renowned company and it has maintained its position well by;
Understanding the client psychology
Ensuring quality
Introducing ingenuity in products
Enlarging its product base
Keeping economic factors in view
Intense and jazzy advertisements
Also its employees who adhered to the company’s core values and the strategies are the reason
that the company is still at the forefront of the food and beverage industry.