1. Presentation On PepsiPresented For:Oral Communication Presented To: MISS SADIA Presented By: HINA FATIMA SOHAIL KHAN SADAF RANI BAKHT ROZA
2. IntroductionPepsi is a carbonated soft drink produced andmanufactured by PepsiCo, and PepsiCo is the AmericanMultinational Company and world leader in convenient snacks,foods and beverages with revenues of more than $43 billionand over 198,000 employees.Pepsi has been bringing fun and refreshment to consumersfor over 100 years. The drink was first made in the 1890s bypharmacist Caleb Bradham in New Bern, North Carolina. The brandwas trademarked on June 16, 1903. There have been many Pepsivariants produced over the years since 1898.Pepsi can be found in nearly 200 countries around the globe.
3. WORLD’S HEADQUARTERS• PepsiCo World Head quarters is located in Purchase at New York.
4. Indra Krishnamurthy Nooyi , who was ranked No.11 in Fortunes list of the most powerful womenin business, joined the company in 1994 and wasnamed CEO in 2001. She was born in India and hasdone her education in India . She has been the chief executive of PepsiCosince 2006. During her time, healthier snacks havebeen marketed and the company is striving for anet-zero impact on the environment. This focus onhealthier foods and lifestyles is part of Nooyis"Performance With Purpose" philosophy.
6. Vision & Mission Statement VisionOur vision is to be the worlds 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. MissionTo be the worlds 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.
7. Pepsi-Co Brands
8. Frito-Lay merged with Pepsi-Cola in 1965.Frito-Laybrands account for 59% of the U.S. snack chip industry.The Frito Lay delivers a wide variety of fun andenvironmentally friendly foods in around 160 countriesand territories.
9. PepsiCo acquired Tropicana in 1998. Today the Tropicanabrand is available in 63 countries. Tropicana’s pure andfresh fruit juice in easy to handle packages has attractedthe consumers.
10. PepsiCo merged with The Quaker Oats Company in2001. Quakers power-packed line of popular brandsexpands companies portfolio with a wide range of healthyfood choices.
11. Gatorade sports drinks was acquired by the Quaker OatsCompany in 1983 and became a part of PepsiCo with themerger in 2001. Gatorade is the first isotonic sports drink.Created in 1965 by researchers at the University of Florida forthe schools football team, "The Gators," Gatorade is now theworlds leading sports drink.
12. Other Brands….
13. FINANCIAL ANALYSIS
14. Equity Ratio: ER= Total Equity x 100 Total Assets Equity ratio 2• 2006 15447 / 29930 x 100 =51% 1• 2007 17325/ 34628x 100 0 =50% 2006• 2008 12203 35994x 100 2007 2008 =33%
15. Current Ratio• CR =Current Assets/ Current Liabilities Current Ratio• 2006=9130/6860=1.33 1.4 1.3• 2007=10151/7753=1.30 1.2 1.1• 2008=10806/8787=1.22 2006 2007 2008
16. DEBT RATIODR= Total Liability x100 DEBT RATIO Total Assets• 2006 14562 / 29930 x 100=48.65% 100.00% 50.00%• 2007 17394/34628 x 100=50.23% 0.00%• 2008 23888/35994 x 100=66.36% 2006 2007 2008
17. Rate of G.P on SalesG.P Rate = G.P___ T.Sales Rate of G.P on Sales2006 = 19375 x 100 = 55.14% 56.00% 35137 55.00% 54.00%2007 = 21436 x 100n =54.30% 53.00% 39474 52.00% 51.00%2008 = 22900 x 100 =52.94% 43251 2006 2007 2008
18. Debt to Equity RatioDebt to Equity Ratio = Total Liabilities Total Stockholder’s Equity• 2006 14562/15447 Debt to Equity Ratio =0.94 2• 2007 17394 / 17325 1 =1.0039 0• 2008 23888/12203 2006 2007 2008 =1.95
19. EARNING PER SHARE• EPS=Net Income/No. of Shares• 2006 5642/1782=3.16 Earning Per share 3.5• 2007 5658/1782=3.17 3 2.5• 2008 2006 2007 5142/1782=2.88 2008
20. RECEIVABLE TURNOVER RATIOREC.turnover in days = net sales Average receivable• 2006 35137 / 3725 = 9.43 Receivable turnover in days In Days 365/9.43 =39days 41• 2007 39474 / 4389 =8.99 40 In Days 365/8.99 = 41days• 39• 2008 43251/4683 =9.23 38 2006 2007 2008 In Days 365/9.23 = 39days
21. WORKING CAPITAL• WORKING CAPITAL=C.A-C.L working capital• 2006=9130-6860=2270 2400• 2007=10151-7753=2398 2200 2000• 8008=10805-3787=2019 1800 2006 2007 2008
22. TIME INTREST EARN• TIME INTREST EARN=• EARNING BEFORE INTREST TAX INTREST EXP Time interest earned• 2006=6989/239=29.24 40• 2007=7631/224=33.32 20• 2008=7021/329=21.34 0 2006 2007 2008
23. Inventory Turnover ratioInventory turnover = Inventory turnover in days Cost of Goods Sold Average inventory 46• 2006 15762/ 1926 =8.18 45.8• In Days 365/8.18 = 45 DAYS 45.6• 2008 18038/ 2290 = 7.8 45.4• In Days 365/7.8 = 46 DAYS 45.2• 45• 2009 20351/2522 =8.06 44.8• In Days 365/8.06 = 45 DAYS 44.6 44.4 2006 2007 2008
24. COMPETITOR• The main competitor of pepsi is coca cola
25. COMPETITORS COCA COLA THE BRAND KNOWN AROUND THE WORLD.IT IS THE LARGEST PRODUCER AND DISTRIBUTOR OF THECOLAS IN THE WORLD. COLA SPENDING A LOT OF MONEY ON THE ADVERTISING
26. ABOUT THE WINING WAR OF THECOMPETITIONQ: 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%.
28. Different MediaTelevision PrintCable food network Newspaper (food category)Frequency (super bowl, playoffs) Magazines (most popular ones)VehiclesPublic buses BillboardsTaxi Internet
29. 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
30. 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
32. 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 )
34. 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
35. MATRIX ANDSTRATEGIES
36. SWOT• Strength 1. 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.
37. SWOT Cont’• Weaknesses 1. 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 retailers 7. Political Franchises 8. Not all the PepsiCo products bear the company name
38. SWOT Cont’• Opportunities 1. Demand of Pepsi is more than its competitors. 2. Increase in population 3. 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 foods 10. Diversification
39. SWOT• Threats 1. Tough rivalry among competitors 2. 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 regulations 5. Law & order situations of the country 6. Non-Carbonated Substitutes 7. Political Instability 8. Threat of Labor Strikes 9. Shortage of resources 10. Shortage of electricity
40. TWOS Matrix Of PepsiWe have discussed SWOT analysis of Pepsi-Coin our previous slides and now here we aregoing to discuss the TOWS Matrix of Pepsi-Co.
41. 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
42. 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
43. 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.
44. 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.
45. 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
46. External Factors Evaluation• It is based on thorough review of the Economic, Demographic, Technological, Political & Legal, Social & Cultural Factors.• Its include Opportunities & Threads
47. 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.