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THE PEPSI-COLA STORY

THE PEPSI-COLA STORY. Group 2: Laura Nathalia Fransiska Dewi Diah Ayu Lestari Zakky Zamrudi. Background Story.

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THE PEPSI-COLA STORY

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  1. THE PEPSI-COLA STORY Group 2: Laura Nathalia FransiskaDewi DiahAyu Lestari ZakkyZamrudi

  2. Background Story • Summer of 1898, a young pharmacist Caleb Bradham looking for ways to attract people to his pharmacy invented the beverage now known around the world as Pepsi-Cola. After the first advertisement the sales of the new soft drink began to go up. • Throughout its existence Pepsi adjusted its marketing strategies trying to keep up with the social and economic conditions of its consumers. • The breakthrough move by Pepsi was made in the late 1950s to capture the market of new generation of baby boomers. Its best known advertisement slogans such as “You’re in the Pepsi Generation”, “Have a Pepsi day” or “You’ve got a lot to live, Pepsi’s got a lot to give” set a new standard for advertising.

  3. Objectives, Measures, Targets, and Initiatives Financial: Covers the financial objectives of an organisation and allows managers to track financial success and shareholder value. Customer: Covers the customer objectives such as customer satisfaction, market share goals as well as product and service attributes. Internal Processes: Covers internal operational goals and outlines the key processes necessary to deliver the customer objectives. Learning Growth: Covers the intangible drivers of future success such as human capital, organisational capital and information capital.

  4. Objectives, Measures, Targets, and Initiatives Objectives, Measures, Targets, and Initiatives What the strategy is to achieve in that perspective.  Strategic objectives How progress for that particular objective will be measured.  Measures  Targets The target value sought for each measure.  Initiatives What will be done to facilitate the reaching of the target.

  5. Particular areas of focus Customer service New products New markets Customer retention Customer satisfaction

  6. Merger & Acquisition Policy Between the late-1970s and the mid-1990s, PepsiCo expanded via acquisition of businesses outside of its core focus of packaged food and beverage brands • Pepsi-Cola decided to back up their positions by investing in a fast food restaurants and snack industry. • The first merger was PepsiCo resulted from the merger of Pepsi-Cola and Frito Lay’s, Inc. in 1965. • Todays, Pepsico has grown of the largest consumers product company with its famous brand name such as

  7. Product R&D • Knowing how important innovations are to the constantly changing environment in which consumers become more spoiled than ever, PepsiCo as always chooses the right strategy. • The succession was caused by the well analyzed of the customer segment and targeting. • Through the acquisition and merger, PepsiCo also get the benefit from the company product line. • PepsiCo's product mix as of 2012 (based on worldwide net revenue) consists of 63 percent foods, and 37 percent beverages.

  8. Pricing Policy • PepsiCo’s president believes that the size will help them provide very reasonable prices through mass production. • Pricing strategy: • Product line pricing • Product-bundling pricing • some policy that was made by PepsiCo to cut cost was: • Buying Bottling Company to cut cost • Scan Based Trading System

  9. Marketing Strategy • PepsiCo is considered one of the world’s premier marketers. • Several factor of marketing strategy succession:

  10. PepsiCo Marketing Mix Beverage Products Food Snacks Other Food Products  inexpensive and recyclable plastic bottles cutting overhead to maintain price PepsiCo is primarily a US based company Has been its multinational division around the world Using the great positioning Create the brand ambassador for Hollywood artist

  11. Products Distribution • Currently Pepsi is one of the best, with serving over a million retail customers. • in the process of testing the new “Scan Based Trading System” which is a new model for handling direct store delivered products. The system is expected to cut supply costs and build sales trough improved stock positioning.

  12. NON-ALCOHOLIC BEVERAGE INDUSTRY • There are several factor why non-alcoholic beverage has grow rapidly at that time:

  13. INTERNATIONAL OPERATIONS • PepsiCo, one of the leading global marketers, derives nearly 30 % of its sales from overseas. • The reason is PepsiCo is known for its adaptability to local cultures and tastes • in 1996, for the first time in many years the results of Pepsi’s international operations were in red ink • Historically PepsiCo was much more financially involved in international bottling and production than Coke

  14. PEPSICO: LOOKING AHEAD • PepsiCo’s outlook for the future remains bright due to comprehensive restructuring program and continuing favorable demographic and economic trends around the globe.

  15. Thank You

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