Presentation

Marketing Strategy
Of
Title!
PPTTemplate.net

PepsiCo

Group Name: Concept

Name

ID

Section

MD. Ashiq Al Faruk

13302008

Md .Mamunur Rashid

13302044

Md .Sakawat Hossain

13302032

Smrity Mony

13202016

Md.Tareq Hasan

12202131

Current Situation
Pepsi-Cola was
invented by
Caleb Bradham
In
1898

Headquarters:
Purchase,
New York,
United States

Current Performance

First quarter
2009 PepsiCos
net revenues of
$8,263 million
were down $70
million from the
same quarter in
2008

PepsiCos total
investment over
the 20092012
periods is $1
billion to bolster
manufacturing

Financial performance

Net Revenues

PepsiCo AMEA
37%

10%
33%

PepsiCo Europe
20%

PepsiCo Americas
Beverages
PepsiCo Americas
Foods

1.James J. Schiro

Corporate Governance
2.Dina Dublon

3.Victor J. Dzau, M.D.

Chief Executive Officer

Consultant, Former Executive Vice

Chancellor for Health Affairs

Zurich Financial Services

President and Chief Financial Officer

Duke University and

62. Elected 2003

President & CEO

Duke University Health Systems

4.Michael D. White

5.Ray L. Hunt

6.Sharon Percy Rockefeller

Chief Executive Officer

Chief Executive Officer

President and Chief Executive Officer

PepsiCo International

Hunt Oil Company

WETA Public Stations

Vice Chairman

and Chairman, Chief Executive Officer

7.Alberto Ibargen

8.Daniel Vasella

9.Arthur C. Martinez

President and Chief Executive

Officer

Chairman of the Board and

Former Chairman of the Board,

Chief Executive Officer

President and Chief Executive Officer

10.Indra K. Nooyi
Chairman of the Board and
Chief Executive Officer

Top Management
Indra K. Nooyi
Chairman of the Board
and
Chief Executive Officer
PepsiCo
Jon Banner
Executive Vice
President,
Communications

Albert P. Carey
Chief Executive
Officer, PepsiCo North
America
Richard Evans
President, ESSA
Category Teams,

Franchise and Po1

7
Sub-Saharan Africa

Jim Andrew
Senior Vice President,
Corporate Strategy and
Chief Venturing Officer
Umran Beba
Senior Vice President,
Chief HR officer for
Human Capital
Management Services
and Operations
Sanjeev Chadha
Chief Executive Officer,
Asia, Middle East and
North Africa

Products

2. External Environment
General
Environment:
Political
and Legal
Forces
Pepsico
operates
in
different countries such
as United States, Europe,
Africa, and Asia. Thus, it
must consider the legal
and labor forces of the
countries in which it
operates

Economic Forces
Economic factors have
some significant impact
on Pepsicos business

Socio-cultural factor
socio-cultural factor
influences its customers
and competitors

Technological factor
Pepsis technological
factor influences its
suppliers

Competitors

10

External Environment
Opportunities
Savory snacks
consumption
growth
Bottled water
consumption
growth.
Increasing demand
for healthy food
and beverages.
Changing social
trend

Threats
Changes in
consumer tastes
Water scarcity
Decreasing gross
profit margin.
Corporations
shortage problem

11

External Environment.
Industry EnvironmentPorters Five factors

10

12

External Environment.
Threat of Substitute
There are many kinds of energy
drink and soda products in the
market

Threats of New Entrants

Entry barriers are relatively low
for beverage industry as there is
already various number of the
company in the market

Rivalry among Existing

Competitors
High diversification from the
competitor like Coca cola
Bargaining Power of Buyers
There are many substitute products
in the market; therefore, customer
has large varieties of product.

Bargaining Power of
Suppliers
Dependence on raw materials,
however, there are a lot of
suppliers available in the market

13

Summary of External Forces

EFAS
Opportunities

Weight

Rate

Weighted
score

Savory snacks consumption growth

10

30

Bottled water consumption growth.

10

20

Increasing demand for healthy food and

15

75

beverages.
Changing social trend

15

60

Rate

Weighted

Threat

Weight

Changes in consumer tastes

15

score
60

Water scarcity

15

75

Decreasing gross profit margin.

10

30

Corporations shortage problem

10

30

Total

100
11

14

Corporate structure
3. Internal Environment

13

15

Corporate Culture
PepsiCos corporate culture is based on
performance and quality of their products,
services, and social responsibility

Strengths

Extensive
distribution
channel

Successful
marketing and
advertising
campaigns.
Proactive and
progressive

Weaknesses
Low pricing
Weak brand
awareness
Too low net
profit margin.
16

B. Organizational Activities
and
Analysis Operations
Marketing
Logistics

Due to the many

product lines
PepsiCo markets,
there are many
different types of
marketing
strategies, but can
all fall into several
main categories
Finance
As one of the
leading beverage
and food
distributors and
producers in the
world, PepsiCo
obviously has very
strong financial
backing and has
been performing

Research and
Development
For a company
that solely
depends on the
happiness of
the consumer,
PepsiCo invests
in R&D in many
different ways

14

Logistics
Headquarters are
in New York, but
several smaller
headquarters for
each product are
distributed
throughout the
U.S. and the world

HRM
PepsiCo, we
reserve a spot for
you at the
leadership table,
but its up to you
to earn your voice
and make an
impact
17

C. Core competency

Core competency is their product

integration and innovation. Pepsi
had always come up with the
unique ad campaigns focusing
towards its target market

15

18

D. Summary of Internal Forces

IFAS
Strength

Weight

Rate

Weighted

Extensive distribution channel

Successful marketing and advertising

25
15

4
4

score
100
60

campaigns.
Proactive and progressive

10

30

Weight

Rate

Weighted

Weakness
Low pricing

25

score
100

Weak brand awareness.

10

30

Too low net profit margin.

15

30

Total

100
16

19

4. Analysis of strategic factor

Weight

Rating

SFAS

Weighted

Short

Intermedi

Long

Score

Duration

ate

Duration

IFAS +EFAS

Duration

Strengths
1.Extensive distribution channel

25

100

25

100

1.Increasing demand for healthy

15

75

food and beverages.

10

30

1.Water scarcity

15

75

2.Decreasing gross profit

10

30

Weaknesses
1.Low pricing
Opportunities

2.Savory snacks consumption

growth
Threats

margin.

18

20

TOWS Matrix
Strengths

TOWS Matrix

Weaknesses

1.Extensive distribution

1.Low pricing

channel

2. Weak brand awareness.

2. Successful marketing and

3. Too low net profit margin.

advertising campaigns.
3. Proactive and progressive
Opportunities
S-O Strategies
1.Savory snacks consumption Company Can Introduce

W-O Strategies
By Introducing Non-

growth

New Product Or Non-

Carbonated Drinks Pepsi

2. Bottled water consumption

Carbonated Drinks Because

Can Capture Different Age

growth.

It Have Good Brand Equity,

Groups.

3.

Increasing

demand

for

Large Resources

healthy food and beverages.

4.Changing social trend
Threats
1.Changes in consumer tastes

2.Water scarcity
3.

Decreasing

gross

profit

margin.
4.Corporations shortage
problem

19

S-T Strategies
Because Co. Has Financial

W-T Strategies
By improving the taste &

Recourses And Distribution

quality company can

Channel Therefore It Can

reposition its products can

Produce Non-Carbonated

take long term position on

Drinks.

maturity stage.
21

5. Identification of Strategic Issues

20

22

6. Strategic Alternatives
Al-1: PepsiCo adjust future low costs to reflect continuing economic
Pros: consumers shift to less costly drinks and snacks from bottled water and
back to the tap, that make more good relationship to customer more than
competitors.
Cons: PepsiCo products price is down and need more investment.
Al-2: Increase the presence with International acquisitions
Pros: Increase the relationship with local companies in order implement easier
Cons: Needed to hire expertise manager.
Al-3: Forecast the trends and relying on marketing intelligence with extensive
research & development.
Pros: Improve the packaging in order to follow more and more environmental
criteria
Cons: This will require product development costs
21

23

Recommendations
We choose Al-1.becuse PepsiCo adjust future
low costs to reflect continuing economic thats
way consumers shift to less costly drinks and
snacks from bottled water and back to the tap,
that make more good relationship to customer
more than competitors. If they increased their
investment they earn more profit. Their price is
low, but its compiled the profits.

22

24

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25

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