PepsiCo. - Texas Tech University

PepsiCo. - Texas Tech University

PepsiCo. Caroline Duncan Erica Jones Steven Scalsky Brad Townley Adilene Vasquez PepsiCo Overview PepsiCos Performance with Purpose SWOT Analysis Industry Analysis

PepsiCos Strategy A PepsiCo Lifestyle Table of Contents 1965 PepsiCo, Inc. was established through the merger of PepsiCola and Frito Lay. Late 1970s and mid 1990s

Post 1997 Multiple large-scale acquisitions Began to extend operations beyond soft drinks and snack foods. Expanded via acquisition of

businesses Background Information Major Products PepsiCo Overview Created in 2007 Three main tiers Human Sustainability

Environmental Sustainability Talent Sustainability Performance with Purpose Continue to refine food and beverages to meet changing consumer tastes Provide clear

nutritional information on all products Human Sustainability Help to protect and conserve water supplies Innovate packaging to minimize the impact on the

environment Work to eliminate solid waste Environmental Sustainability Create a safe, healthy, diverse and inclusive workplace. Respect human rights in the

workplace across the supply chain. Talent Sustainability PepsiCos Financials Strengths

Product Diversification Internationally Recognizable Brand Financially Profitable Many corporate social responsibility projects Successful marketing campaigns both nationally and internationally. A Wide diverse set of employees Their Performance with Purpose initiative Weaknesses

Opportunities Many opportunities with becoming environmentally appealing. Increasing Demand for healthier alternatives Consumption growth for bottled water

and snacks Not many healthy food alternatives provided Very dependent on Walmart as a distributor Threats SWOT Analysis

An ever increasing number of competitors The rising commodity prices Continually changing consumer tastes The increasing water scarcity in the world Coca-Cola Dr. Pepper/Snapple Kraft Food Group

Top Competitors Beverage Industry 3 Major Players Diversify to compete Entering market is difficult Food Industry

More Competition Diverse product line leads to more competitors The Industry Consumer preference More health conscious Publicity Coca-Cola and water consumption

Competitors New Products Expansion Forces of Change Foreign Markets Political factors Russia/Ukraine

Government Regulations Marketing Labeling Production Safety Standards Forces of Change Cont. Rivalries among Existing

Competitors Compete on product differentiation Taste and Style instead of cost Diversify Product Line Acquisitions Gatorade Quaker Oats Able to enter new market segments Competitive Forces

Threat of new competitors Very difficult Brand names dominate this market PepsiCo and Coca-Cola able to buy out new entrants Threat of Substitutes

Pepsi deals with substitutes with all of their products Depend on Brand name and positive reputation Competitive Forces Bargaining Power of Suppliers PepsiCo Bottling Group Own personal supplier Provides massive advantage

Bargaining Power of Consumers No consumer in this market has enough purchasing power to have leverage Consumer power lies with the price of the product Price cant be higher than a direct competitors price Competitive Forces Coca-Cola, PepsiCo, Dr.Pepper Snapple Group

3 Major Players 80% of market share between the three Coca-Cola most dominant in soda industry PepsiCo has made up the difference with more product variation Resources, Brand names, Established Relationships New competitors cant compete with the big three Competitive Positions of Companies

Consumer Knowledge Product Innovation Global Expansion Brand Loyalty Competitive

Prices Key Success Factors PepsiCo uses distribution capabilities to demonstrate the knowledge of their consumers. Consumer Knowledge PepsiCo

creates and advertises major brands they know consumers will love around the world. Brand Loyalty PepsiCo established a new operating model to increase speed to market.

Competitive Prices PepsiCo positions the company to grow by trend, region, and category. Global Expansion PepsiCo focuses on innovating globally by

delighting locally. Product Innovation Very attractive Above-average profit prospects High barriers to entry Low power to buyers and suppliers Constrained competition for rivalry Industry Attractiveness

Offering the consumer a variety of choices throughout the day. PepsiCo's Strategy As of now there are certain times of the day that consumers can only purchase snack items of PepsiCo. Lets Make PepsiCo a lifestyle. So if a consumer wanted to he/she could have

not only PepsiCo options throughout the day but healthy options as well A PepsiCo Lifestyle Acquiring or Merging with Tyson foods would give the consumer plenty of options during these times. Options of beef, chicken or pork. They also make many frozen foods and dinners.

Lunch/Dinner? Consumers could go into restaurants that Tyson distributes to KFC, Taco Bell, Pizza Hut to list a few. When they order there meal they not only are having a PepsiCo drink but also food items as well. This could carry over to the grocery stores as well the consumer could shop healthy buying Lipton tea and Tyson chicken breast products.

Examples of a PepsiCo Lifestyle PepsiCo as well as Tyson foods cater to many sporting venues across the country. We can make it when the consumer walks up to the concession stand. He will be walking away living a PepsiCo Lifestyle. With his PepsiCo beverage and his tasty PepsiCo corndog or Bacon on a stick.

Why Stop There?

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