Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Presentation on pepsico
1.
2. Presentation On Pepsi
Presented For:
Oral Communication
Presented To:
MISS SADIA
Presented By:
HINA FATIMA
SOHAIL KHAN
SADAF RANI
BAKHT ROZA
3. Introduction
Pepsi 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.
5. 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.
7. 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.
9. 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.
10. 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.
11. 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.
12. 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.
15. 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%
16. 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
17. DEBT RATIO
DR= 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
18. Rate of G.P on Sales
G.P Rate = G.P___
T.Sales
Rate of G.P on Sales
2006 = 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
19. Debt to Equity Ratio
Debt 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
20. 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
21. RECEIVABLE TURNOVER
RATIO
REC.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
22. 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
23. 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
24. Inventory Turnover ratio
Inventory 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
26. COMPETITORS
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
27. ABOUT THE WINING WAR OF THE
COMPETITION
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%.
29. Different Media
Television Print
Cable food network
Newspaper (food category)
Frequency (super
bowl, playoffs) Magazines (most popular
ones)
Vehicles
Public buses Billboards
Taxi Internet
30. 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
31. 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
37. 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.
38. 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
39. 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
40. 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
41. 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.
42. 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
43. 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
44. 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.
45. 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.
46. 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
47.
48. External Factors Evaluation
• It is based on thorough review of the
Economic, Demographic, Technological,
Political & Legal, Social & Cultural Factors.
• Its include Opportunities & Threads
49.
50. 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.
