Presentation on pepsico

Presentation On Pepsi

Presented For:

Oral Communication

Presented By:

HINA FATIMASOHAIL KHANSADAF RANIBAKHT ROZA

Presented To:MISS SADIA

IntroductionPepsi is a carbonated soft drink produced and manufactured by PepsiCo, and PepsiCo is the American Multinational Company and world leader in convenient snacks, foods and beverages with revenues of more than $43 billion and over 198,000 employees.

Pepsi has been bringing fun and refreshment to consumers for over 100 years. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1898.

Pepsi can be found in nearly 200 countries around the globe.

WORLD’S HEADQUARTERS

• PepsiCo World Head quarters is located in Purchase at New York.

Indra Krishnamurthy Nooyi , who was ranked No. 11 in Fortune's list of the most powerful women in business, joined the company in 1994 and was named CEO in 2001. She was born in India and has done her education in India . She has been the chief executive of PepsiCo since 2006. During her time, healthier snacks have been marketed and the company is striving for a net-zero impact on the environment. This focus on healthier foods and lifestyles is part of Nooyi's "Performance With Purpose" philosophy.

PEPSI

Ingredients1. Syrup2. Sugar3. Colorings4. Phosphoric acid5. Caffeine6. Citric acid7. Natural flavors

Vision & Mission Statement

Vision Our vision is to be the world's best beverage company.

Being the best means providing outstanding quality, service, cleanliness and value, so that their every customer is contented and happy with their products.

Mission To be the world's premier consumer Products Company

focused on convenient foods and beverages. We seek to produce healthy 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.

Pepsi-Co Brands

Frito-Lay merged with Pepsi-Cola in 1965.Frito-Lay brands account for 59% of the U.S. snack chip industry.The Frito Lay delivers a wide variety of fun and environmentally friendly foods in around 160 countries and territories.

PepsiCo acquired Tropicana in 1998. Today the Tropicana brand is available in 63 countries. Tropicana’s pure and fresh fruit juice in easy to handle packages has attracted the consumers.

PepsiCo merged with The Quaker Oats Company in 2001. Quaker's power-packed line of popular brands expands companies portfolio with a wide range of healthy food choices.

Gatorade sports drinks was acquired by the Quaker Oats Company in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink. Created in 1965 by researchers at the University of Florida for the school's football team, "The Gators," Gatorade is now the world's leading sport's drink.

Other Brands….

FINANCIAL ANALYSIS

Equity Ratio

:ER= Total Equity x

100 Total Assets

• 2006 15447 / 29930 x 100 =51%

• 2007 17325/ 34628x 100=50%

• 2008 12203 35994x 100=33%

2006 2007 2008

00.5

11.5

2

Equity ratio

Current Ratio

• CR =Current Assets/ Current Liabilities

• 2006=9130/6860=1.33

• 2007=10151/7753=1.30

• 2008=10806/8787=1.222006 2007 2008

1.151.2

1.251.3

1.35

Current Ratio

DEBT RATIO

DR= Total Liability x100 Total Assets• 2006 14562 / 29930 x 100=48.65%

• 2007 17394/34628 x 100=50.23%

• 2008 23888/35994 x 100=66.36%2006 2007 2008

0.00%20.00%40.00%60.00%80.00%

DEBT RATIO

G.P Rate = G.P___

T.Sales

2006 = 19375 x 100 = 55.14%

35137

2007 = 21436 x 100n =54.30% 39474

2008 = 22900 x 100 =52.94% 43251

Rate of G.P on Sales

2006 2007 200851.00%52.00%53.00%54.00%55.00%56.00%

Rate of G.P on Sales

Debt to Equity Ratio

Debt to Equity Ratio = Total Liabilities

Total Stockholder’s Equity

• 2006 14562/15447

=0.94

• 2007 17394 / 17325

=1.0039

• 2008 23888/12203

=1.95

2006 2007 2008

0

0.5

1

1.5

2

Debt to Equity Ratio

EARNING PER SHARE

• EPS=Net Income/No. of Shares

• 20065642/1782=3.16

• 20075658/1782=3.17

• 20085142/1782=2.88

2006 2007 2008

2.72.82.9

33.13.2

Earning Per share

RECEIVABLE TURNOVER RATIO

REC.turnover in days = net sales Average receivable

• 2006 35137 / 3725 = 9.43

In Days 365/9.43 =39days

• 2007 39474 / 4389 =8.99

In Days 365/8.99 = 41days•

• 2008 43251/4683 =9.23

In Days 365/9.23 = 39days 2006 2007 200838

39

40

41

Receivable turnover in days

WORKING CAPITAL

• WORKING CAPITAL=C.A-C.L

• 2006=9130-6860=2270

• 2007=10151-7753=2398

• 8008=10805-3787=2019

2006 2007 2008

1800190020002100220023002400

working capital

TIME INTREST EARN

• TIME INTREST EARN=• EARNING BEFORE INTREST TAX

INTREST EXP

• 2006=6989/239=29.24

• 2007=7631/224=33.32

• 2008=7021/329=21.34

2006 2007 20080

10

20

30

40

Time interest earned

Inventory Turnover ratioInventory turnover =

Cost of Goods Sold Average inventory

• 2006 15762/ 1926 =8.18• In Days 365/8.18 = 45 DAYS

• 2008 18038/ 2290 = 7.8• In Days 365/7.8 = 46 DAYS•

• 2009 20351/2522 =8.06• In Days 365/8.06 = 45 DAYS

2006 2007 200844.4

44.6

44.8

45

45.2

45.4

45.6

45.8

46

Inventory turnover in days

COMPETITOR• The main competitor of pepsi is coca cola

COCA COLA THE BRAND KNOWN AROUND THE WORLD.IT IS THE LARGEST PRODUCER AND DISTRIBUTOR OF THE COLAS IN THE WORLD.

COLA SPENDING A LOT OF MONEY ON THE ADVERTISING

COMPETITORS

Q: Who has been wining the war?1950: Coke have 47% and Pepsi have 10% 1970: Coke have 35% and Pepsi have 29%1990: Coke have 41% and Pepsi have 32%2000:Coke have 44% and Pepsi have31.4% 2006:Coke have 43.1% and Pepsi have 31.7%.

ABOUT THE WINING WAR OF THE COMPETITION

MARKETING

Different Media

Television

Cable food network

Frequency (super bowl, playoffs)

VehiclesPublic buses

Taxi

Print

Newspaper (food category)

Magazines (most popular ones)

Billboards

Internet

Media Strategies• Use the media to attract non-Diet Pepsi users

through TV, radio

• Print adds

• Advertise Diet Pepsi during warmer months May – September

• The target audience will be exposed to Diet Pepsi commercials for 10 Wks

Target market

• The target market of Pepsi is mostly young people of ages between 14 & 30. And also target hotels, restaurants, schools, universities and stores.

• In short generation-y is target market of Pepsi

BEVERAGES

PRODUCTS Mix ( foods & beverages )

Beverages mix:1. Carbonated categories:

- Fun for you portfolio ( Pepsi Cola, Diet Pepsi )

2. Non-carbonated- Better-for-you and Food-for-you portfolio - ( Tropicana series )

Carbonated Drinks Categories• Pepsi• Diet Pepsi• Caffeine Free Diet Pepsi• Diet Pepsi Max• Jazz Diet Pepsi• Diet Pepsi Lime• Diet Pepsi Vanilla• Pepsi Wild Cherry• Diet Pepsi Wild Cherry• Pepsi ONE• Mountain Dew• Diet Mountain Dew• Mirinda• Slice• Aquafina• Aquafina Alive• Aquafina FlavorSplash• Aquafina Sparkling

Non-carbonated Drinks Category

• Tropicana Pure Premium juices• Tropicana Twister juice drinks• Tropicana Smoothies• Tropicana Pure Tropics juices• Dole juices (License)• Tropicana 100 juices• Naked Juice

MATRIX AND STRATEGIES

SWOT

• Strength1. Company has a very established name and a good reputation.2. Pepsi has large market share than its competitors.3. As the target customers of Pepsi is young generation, so Pepsi has

more brand loyal customers.4. Pepsi is an international company and it has a very strong position

internationally.5. The environment of factory is very good and attractive. 6. Pepsi spends a lot of budget on its advertising.7. Pepsi has a very vast distribution channel and it is easily available

everywhere. 8. Employees are also motivated.9. Pepsi offers many discount schemes for customers time to time.10. Pepsi Cola is sponsoring sports, musical concerts, walks.

SWOT Cont’

• Weaknesses1. Pepsi does not offer any sort of incentive or discount to its

retailers.2. Pepsi target only young customers in their promotions.3. Pepsi tin pack is not available in far off rural areas. 4. Pepsi is not considering many potential outlets like hotels,

college canteens etc.5. Unavailability of all products of Pepsi at the same time at the

same outlet.6. Offering low margins to its retailers7. Political Franchises8. Not all the PepsiCo products bear the company name

SWOT Cont’• Opportunities

1. Demand of Pepsi is more than its competitors.2. Increase in population3. Company may start entering rural areas also.4. The company may also diversify its business in some other potential

business.5. Increased interest of people in musical groups, cultural shows and

sports has provided an opportunity for Pepsi to increase its sales through them.

6. Increasing demand of beverages among young generation will increase growth rate in this industry.

7. Usage of products among target market consisting young generation has been increasing day by day.

8. Changing Social Trend 9. Distribution of snack foods10. Diversification

SWOT

• Threats1. Tough rivalry among competitors2. Cola drinks are not good for the health so the awareness level of

the people is in creasing which is a big threat to the company.3. Economic downfall might bring meaning full damages.4. Government regulations5. Law & order situations of the country6. Non-Carbonated Substitutes7. Political Instability8. Threat of Labor Strikes9. Shortage of resources10. Shortage of electricity

TWOS Matrix Of Pepsi

We have discussed SWOT analysis of Pepsi-Co in our previous slides and now here we are going to discuss the TOWS Matrix of Pepsi-Co.

SO Analyses & Developing Strategies

• S6+O1– S6=Pepsi spends a lot of budget on its advertising– O1=Demand of Pepsi is more than its competitors

• Pepsi has a budget capacity to avail or maintain its products’ demand. » Advertising/Promotional Strategy in order to maintain or increase its

demand.

• S7+O3– S7=Pepsi has a very vast distribution channel and it is easily available

everywhere.– O3=The company may also diversify its business in some other

potential business• Pepsi has a strong and wide distribution channel which will help in

placement of new products also. » Product diversification

ST Analyses & Developing Strategies

• S6+T1+T2– S6=Pepsi spends a lot of budget on its advertising– T1=Tough Rivalry Compaction– T2= Cola drinks are not good for the health so the awareness level of the people is in

creasing which is a big threat to the company.• Pepsi has a huge budget for advertising.

» Advertising/Promotional Strategy in order to place its positioning step ahead among its competitors.

» Awareness Campaigns in order to increase people awareness about products benefits while using its brand.

• S4+T3+T9– S4=Pepsi is an international company and it has a very strong position internationally.– T3=Economic downfall might bring meaning full damages. (Cost of raw material,

purchasing power etc)– T9=Shortage of electricity

• Wide Target market and huge market segmentation.» Market Development will help to maintain its profits if any undue or uncertain events will occur.» Backward Integration will have its own electricity generation equipments

WT Analyses & Developing Strategies

• W6+T1– W6= Political Franchises– T1=Tough Rivalry Compaction

• Political Franchises may lead to the conflicts and it could be the strength for the competitors.

» Forward Integration In order to have its own distribution channels

• W7+T1– S4=Not all the PepsiCo products bear the company name.– T3=Tough Rivalry Compaction

• Promotional Campaign for individual products» Promotional Campaign will help to increase awareness among people

about every products of the company.

WO Analyses & Developing Strategies

• W5+O8– W5= Offering low margins to its retailers– O8= Distribution of snack foods

• Local brands of snack foods provides higher margins. » Pricing strategy will enhance the retailer’s interest to stock company’s

snack products.

• W4+O1– W4=Unavailability of all products of Pepsi at the same time at the

same outlet.– O1=Demand of Pepsi is more than its competitors.

• Unavailability of every product might lead bad image on the customers which will directly benefits to the competitors.

» Placement strategy is more important in order to have every products of the company at the same outlet.

Internal Factors Evaluation

• It is based on thorough review of the corporation, product category, competition, customers, identities and evaluates the internal strengths and weakness of the companies.

• Its include Strengths & Weaknesses

External Factors Evaluation

• It is based on thorough review of the Economic, Demographic, Technological, Political & Legal, Social & Cultural Factors.

• Its include Opportunities & Threads

Conclusion

Pepsi is a well renowned company and it has maintained its position well by understanding the client psychology.

• By ensuring quality. • By introducing ingenuity in products. • By enlarging its product base .• By keeping economic factors in view. • By intense and jazzy advertisements.