mpob assignment.docx

8/14/2019 mpob assignment.docx

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ASSIGNMENT OF MPOB

ON

pepsico

Submitted to: Submitted by:

Ms. Kamalpreet Simranjeet Kaur

M.B.A. 1st(A)

Roll no: 3318


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Mission of PEPSICO

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 of PEPSICO

"PepsiCo's responsibility is to continually improve all aspects of the world in which

we operate - environment, social, economic - creating a better tomorrow than

today."

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.

Brands

Pepsi-Cola Brands

Frito-Lay Brands

Tropicana Brands

Quaker Brands

Gatorade Brands


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PepsiCo Values & Philosophy

Our Values & Philosophy are a reflection of the socially and environmentally

responsible company we aspire to be. They are the foundation for every business

decision we make.

Our Commitment

We are committed to delivering sustained growth through empowered people

acting responsibly and building trust.

What It Means

Sustained Growthis fundamental to motivating and measuring our success. Ourquest for sustained growth stimulates innovation, places a value on results, and

helps us understand whether today's actions will contribute to our future. It is

about the growth of people and company performance. It prioritizes both making

a difference and getting things done.

Empowered People means we have the freedom to act and think in ways that we

feel will get the job done, while adhering to processes that ensure proper

governance and being mindful of company needs beyond our own.


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Responsibility and Trustform the foundation for healthy growth. We hold

ourselves both personally and corporately accountable for everything we do. We

must earn the confidence others place in us as individuals and as a company. By

acting as good stewards of the resources entrusted to us, we strengthen that trust

by walking the talk and following through on our commitment to succeeding

together.

Guiding Principles

We uphold our commitment with six guiding principles.

We must always strive to:

Care for our customers, our consumers and the world we live in.

We are driven by the intense, competitive spirit of the marketplace, but we direct

this spirit toward solutions that benefit both our company and our constituents.

Our success depends on a thorough understanding of our customers, consumers

and communities. To foster this spirit of generosity, we go the extra mile to show

we care.

Sell only products we can be proud of.

The true test of our standards is our own ability to consume and personally

endorse the products we sell. Without reservation. Our confidence helps ensure


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the quality of our products, from the moment we purchase ingredients to the

moment it reaches the consumer's hand.

Speak with truth and candor.

We tell the whole story, not just what's convenient to our individual goals. In

addition to being clear, honest and accurate, we are responsible for ensuring our

communications are understood.

Balance short term and long term.

In every decision, we weigh both short-term and long-term risks and benefits.Maintaining this balance helps sustain our growth and ensures our ideas and

solutions are relevant both now and in the future.

Win with diversity and inclusion.

We embrace people with diverse backgrounds, traits and ways of thinking. Our

diversity brings new perspectives into the workplace and encourages innovation,

as well as the ability to identify new market opportunities.

Respect others and succeed together.

Our mutual success depends on mutual respect, inside and outside the company.

It requires people who are capable of working together as part of a team or

informal collaboration. While our company is built on individual excellence, we

also recognize the importance and value of teamwork in turning our goals into

accomplishments.


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INDUSTRY OVERVIEW :

The industry is a tight oligopoly with Pepsi and its chief competitor, Coca Cola,

comprising 70% of the total market. The industry for carbonated soft drinks is

characterized by the following five forces:

Porters five forces Chart

Bargaining Power of Supplier

Low

- The input required in this industry is

commodities which is unspecialized.

- Many suppliers availavle locally as well as

in

international market.

- Switiching is easy

Threat of new entrants

Easy to enter - hard to compete

- Threat of new entrants is high in the

industry but survival is very hard.

- Profit margins are very thin so competing .

Bargaining power of Buyers

Medium

- Pricing and quality are the two concern

- Beacuse of immense competition buyers

has the advantage

Threat of substitute product

High

- Being in the food & beverage industry

competiton is very hugh

- Switching is easy for customer

Competition within the industry

very high

- Intense competition within the industry

- Industry is competing on the basis of price

and quality


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SWOT analysis

Strength:

Pepsi has a broader product line and outstanding reputation. Merger of Quaker Oats produced synergy across the board. Record revenues and increasing market share. Lack of capital constraints (availability of large cash flow). Great brands, strong distribution, innovative capabilities. Number of maker of snacks, such as corn chips and potato chips. PepsiCo sells three products through the same distribution channel.Weakness:

Pepsi hard to inspire vision and direction for large global company. Not all PepsiCo products bears the company name. PepsiCo is far away from leader Coca-cola in the international market

demand is highly elastic.

Opportunity:

Food division should expand internationally. Noncarbonated drinks are the fastest-growing part of the industry. There are increasing trend towards healthy foods.


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Focus on most important customer trendConvenienceThreats:

F&B industry is mature. Pepsi is blamed for pesticide residues in their products in one of their

promising emerging market e.g. in India.

PepsiCo now competes with Cadbury Schweppes, Coca-cola, and Kraftfoods (because of their broader product line) which are well-run and

financially sound competitors.

Size of company will demand a varied marketing program; Social, cultural,economic, political and governmental constraints.

CORE COMPETENCIES

Product integration and Innovation

The first core competency is their product integration and innovation. PepsiCo is

able to enhance their product line by carrying fruit drinks, Gatorade, and

Frappuccino. This allows them to promote their products and services more

efficiently while being able to reach a much broader group of individuals. Through

integration, they are able to eliminate potential competitors, while creating a

more diverse product line.


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Branding & Marketing

Secondly, Pepsis strength lies in its branding and marketing. Pepsi had always

come up with the unique ad campaigns focusing towards its target market. This

uniqueness in advertising and branding has given it a competitive advantage over

its competitors. Pepsi target audience is mostly teens and young adults and their

advertising reflects this in every possible manner. Some of Pepsi successful Ad

campaigns like Yeh dil maange more, Oye Bubbly and Youngistan created a

huge impact on its Target group.

Apart from these, several factors mentioned below have been PepsiCo strength

over the years, and still they are backing up its core competencies in different

possible way.

- Savings resulting from economies of scale.- Number 1 maker of snacks, such as corn chips and potato chips.- Merger combined two strong companies, PepsiCo and Quaker Oats.- Company does more than just soft drinks.- Merger combined more than carbonated and noncarbonated drinks.- Not all PepsiCo products bear the company name.

ADVERTISING STRATEGY OF PEPSI

Pepsis target audience are mostly teens and young adults and theiradvertising reflects this in every possible way.

The company changes its advertising strategy and image to reflect thetarget's interests.


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Pepsi makes sure that the advertisements reflect to the target audiencesinterests and nostalgia.

The advertising is mostly creative and has different elements like music andsports

Pepsi.com also plays an important role in advertising and attracts targetaudience by giving access to options like downloads, gaming, music mixing

applications etc..

SIX LONG-TERM RECENT GROWTH STRATEGIES OF

PEPSICO

Pepsico continue to focus on delivering top-quartile financial performance in both

the near term and the long term, while making the global investments in key

regions and targeted product categories to drive sustainable growth. The next

chapter in our growth is founded on six long-term growth strategies:

Expand the Global Leadership Position of Snacks Business.

PepsiCo is the global snacks leader, with the No. 1 savory category share position

in virtually every key region across the globe. It has advantaged positions across

the entire value chain in more than 40 developed and developing regions in which

we operate as we capitalize on local manufacturing and optimized go-to-market


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capabilities in each region, as well as the ability to introduce locally relevant

products using global capabilities. And it has significant growth opportunities as it

expand its current businesses in these regions, extend reach into new

geographies and enter adjacent categories. Importantly, it will continue to make

its core snacks healthier through innovations in heart-healthier oil, sodium

reduction and the addition of whole grains, nuts and seeds.

Ensure Sustainable, Profitable Growth in Global Beverages.

The merger with pepsicos anchor bottlers creates a lean, agile organization in

North America with an optimized supply chain, a flexible go-to-market system and

enhanced innovation capabilities. When combined with the actions it is taking to

refresh its brands across the entire beverage category,Pepsico believe this game-

changing transaction will enable it to accelerate its top-line growth and also

improve its profitability . It continue to see significant areas of global beverage

growth, particularly in developing markets and in evolving categories. It will

invest in those attractive opportunities, concentrating in geographies and

categories in which we are the leader or a close second, or where the competitive

game remains wide open. Additionally, it will use our R&D capabilities to develop

low- and zero-calorie beverages that taste great and add positive nutrition such as

fiber, vitamins and calcium.

Unleash the Power of "Power of One.

" PepsiCo is in the unique position to leverage two extraordinary consumer

categories that have special relevance to retailers across the globe. Its snacks and

beverages are both high-velocity categories; both generate retail traffic; both are


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very profitable; and both deliver exceptional cash flow. The combination of snacks

and beverageswith our high-demand global and local brandsmakes PepsiCo an

essential partner for large-format as well as small-format retailers. It will

increasingly use this portfolio and the high coincidence of consumption of these

products through integrated offerings (products, marketing and merchandising)

to create value for consumers and deliver greater top-line growth for retailers.

We also will be accelerating Power of One supply chain and back-office synergies

in many regions to improve profitability and enhance customer service.

Rapidly Expand "Good-for-You" Portfolio.

PepsiCo currently has a roughly $10 billion core of "Good-for-You" products

anchored by: Tropicana, Naked juice, Lebedyansky, Sandora and our other juice

brands; Aquafina; Quaker Oats; Gatorade (for athletes); the new dairy joint

venture with Almarai; and local "Good-for-You" products and brands. It will build

on this core with an increasing stream of science-based innovation derived from

the R&D capabilities that it have been ramping up over the past couple of years,

as well as from targeted acquisitions and joint ventures. Pepsico will be investing

to accelerate the growth of these platforms, and we will use the knowledge from

these initiatives to improve its core snack and beverage offerings and also to

develop highly nutritious products for undernourished people across the world.

Continue to Deliver on Environmental Sustainability Goals and

Commitments.

Pepsico is committed to protecting the Earth's natural resources and are well on

our way to meeting its public goals for meaningful reductions in water, electricity


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and fuel usage. Its businesses around the world are implementing innovative

approaches to be significantly more efficient in the use of land, energy, water and

packagingand are actively working with the communities in which we operate to

be responsive to their resource needs. In 2009, Pepsico formalized its

commitment to water as a human right, and we will focus not only on world-class

efficiency in its operations, but also on preserving water resources and enabling

access to safe water. Its climate change focus is on reducing carbon footprint,

including a reduction in absolute greenhouse gas emissions through continued

improvement in energy efficiency and the use of alternative energy sources. It

actively work with its farmers to promote sustainable agricultureand we are

developing new packaging alternatives in both snacks and beverages to reduce its

impact on the environment.

Cherish Associates and Develop the Leadership to Sustain Growth.

Pepsico have an extraordinary talent base across our global organizationin its

manufacturing facilities, sales and distribution organizations, marketing groups,

staff functions and with general managers. As it expand its businesses, it is

placing heightened focus on ensuring that it maintain an inclusive environment

and on developing the careers of associatesall with the goal of continuing to

have the leadership talent, capabilities and experience necessary to grow

businesses well into the future. As an example, it is implementing tailored training

programs to provide managers and senior executives with the strategic and

leadership capabilities required in a rapidly changing environment.


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