PepsiCo

1. PepsiCo Sebastian Cummings John Dunn Tim Flory Michelle Hubbell Nellie Echevarria Asia Smith Amanda Sullivan

2. Introduction • Headquarters located in Harrison, New York • 5 Brands (Frito Lay, Pepsi, Tropicana, Quaker, Gatorade) • Products can be found in almost 200 countries • 19 products generate over $1 billion in sales • Product mix: 63% food and 37% beverages • Main competitor is Coca Cola

3. History of PepsiCo • Caleb Bradham invented the drink Pepsi in New Bern, North Carolina in 1898 • Patented in 1902 • Incorporated in 1919 in Delaware • Pepsi was purchased by Loft Candy in 1933. • Bottle size increased to 12 ounces compared to 6 ounces • The low cost differentiation strategy was successful, allowing the company to expand in the cola industry. http://www.youtube.com/watch?v=mpXw2sbNg6Q

4. History 1960’s 1970’s Sales passed $3 billion mark More than one Frito-Lay plant opened each year First 2-liter bottle and recyclable plastic bottles Mountain Dew made it on top 10 selling soft drinks and Pepsi was number one Entered Russian market • New Products: Diet Pepsi, Mountain Dew, Frito’s, Lay potato chips, Cheetos, Ruffles, Rold Gold Pretzels, Doritos • Merged with Frito Lay • Introduced red, white and blue packaging • Entered Japanese and Eastern European Markets

5. History 1980’s 1990’s Profits exceeded $1 billion Sales hit $20 billion mark New Products: Sunchips, Expansion of Tostado’s and Cheetos, Aquafina, Wavy Lays Freshness dating Low/No Fat products Launch of official website Purchase of Tropicana • Sales passed $15 billion mark entering top 25 of Fortune 500 • New Products: Tostitos, Caffeine Free Pepsi, Slice and Diet Slice, 7Up, Mug Root Beer • Nutrition Labels • Largest company in beverage industry • Available in 150 countries

6. Industry •Who are the major competitors of PepsiCo? •International market vs. US Market net revenue •What are the some of the brands that competitor sell? •Marketing and advertising strategies used by competitors

7. Mission Statement Mission Our mission is to be the world’s premier consumer products company (3) focused on convenient foods and beverages (2). We seek to produce financial rewards to our investors (5) as we provide opportunities for growth and enrichment to our employees (9), our business partners, and the community in which we operate (1) (8). And in everything we do, we strive for honesty, fairness, and integrity (6). Vision PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic – creating a better tomorrow than today. Our vision is put into action through programs and a focus on environmental stewardships, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

8. Mission Breakdown • Customers: provide opportunities for growth and enrichment to the communities in which we operate • Products or services: focused on convenient foods and beverages • Markets: to be the world's premier consumer products company  • Technology: • Concern for Survival, Growth, and Profitability: seek to produce financial rewards to our investors • Philosophy: In everything we do, we strive or honesty ,fairness, and integrity • Self-Concept: • Concern for Public Image: Seek to produce financial rewards to our investors as we provide opportunities for growth and enrichment to our employees, our business partners, and the communities in which we operate.  • Concern for Employees: provide opportunities for growth and enrichment to our employees

9. Revised Mission Our mission is to be the world’s premier consumer products company (3) focused on convenient foods and beverages (2) while addressing social and environmental issues (7). We seek to produce financial rewards to our investors (5) as we provide opportunities for growth and enrichment to our employees (9),our business partners, and the communities in which we operate (1) (8). And in everything we do, we strive for honesty, fairness, and integrity (6) while protecting Earth’s natural resources through innovation and more efficient use of land, energy, water, and packaging in our operations (4) . Revised Mission Statement Breakdown • Customers: provide opportunities for growth and enrichment to the communities in which we operate • Products or services: focused on convenient foods and beverages • Markets: to be the world's premier consumer products company  • Technology: protecting Earth’s natural resources through innovation and more efficient use of land energy water and packaging in our operations.  • Concern for Survival, Growth, and Profitability: seek to produce financial rewards to our investors • Philosophy: in everything we do, we strive or honesty ,fairness, and integrity • Self-Concept: addressing social and environmental issues • Concern for Public Image: seek to produce financial rewards to our investors as we provide opportunities for growth and enrichment to our employees, our business partners, and the communities in which we operate. • Concern for Employees: provide opportunities for growth and enrichment to our employees

10. Input Matrices

11. External Factor Evaluation Matrix

12. Internal Factor Evaluation Matrix

13. Matching Matrices

14. SWOT Matrix

16. SPACE Matrix Calculations Calculations SP Average: -11/5= -2.2 IP Average: 26/6= 4.33 CP Average: -14/6= -2.33 FP FP Average: 20/6= 3.33 Directional Vector Coordinates: X-axis: .33 + (4.33) = 2.00 Y-axis: -2.2 + (3.33) = 1.13

17. SPACE Matrix CONSERVATIVE AGGRESSIVE -Backward, forward, horizontal integration -Market penetration, market development, product development -Related and unrelated diversification DEFENSIVE COMPETITIVE

18. Boston Consulting Group Matrix

19. Boston Consulting Group Matrix 12.8 14.8 28.9 13.6 4.3 Stars Question Marks Cash Cows Dogs 25.2

20. Internal/External Matrix IFE Total Weighted Scores 4.0 3.0 2.0 1.0 3.0 2.0 1.0 EFE Total Weighted Scores • Hold and Maintain • Market Penetration • Product Development

21. Grand Strategy Matrix Rapid Market Growth * Weak Competitive Position Strong Competitive Position Slow Market Growth

22. Decision Matrices

23. Data Collection Matrix

24. QSPM

26. Recommendations • Healthy Lifestyle Campaign • New products • New packaging • Partnerships • Schools, offices, etc

27. Epilogue Received several awards: “Respect Award” from Gay, Lesbian and Straight Education Network “Best Companies for Multi-Cultural Women” list by Working Mother magazine Listed in the top 20 'Ideal Employer MBA Ranking' in Fortune magazine Paired with CBS to launch first-ever video player packaged in a print ad Kicked off partnership with the NFL Major League Baseball multi-year sponsorship New York Mets and New York Yankees PepsiCo's Doritos and Pepsi Max issued an ad contest $5 Million in Prizes and air time during Super Bowl XLV YouTube - DORITOS® - Pug Attack -- Crash the Super Bowl 2011 Finalist Partner of the new Meadowlands Stadium Home of the New York Jets and New York Giants Burger King Corporation signed multi-year agreement with PepsiCo Exclusive soft drink supplier in more than 1,000 restaurants Latin America and Caribbean region

28. Social Vending System • Debut at National Automatic Merchandising Association’s One Show in Chicago, April 27-29 • Acquired approximately 66% of the outstanding shares of Wimm-Bill-Dann Foods OJSC, Russia's leading branded food-and-beverage company • Donated $1.5 million towards Japan relief and recovery