Project of Pepsi

Submitted to:Miss SADIA BAWER

Submitted by:Zimmal Ilyas

Somia Anwar
Akasha umer
M. Sajawal
Umer Ijaz
Saad Mehmood

Table of Contents

Introduction
History
Mission statement
Vision statement
Roles and objectives of organization
Marketing strategies of organization
Organizational structure
Products of organization
Competitors of organization
SWOT analysis of organization
PEST analysis of organization

Introduction and History

Introduction:Pepsi International is a world renowned brand. It is a very well organized multinational
company, which operates almost all over the world. They produce, one of best carbonated drinks
in the world. Pepsi is a symbol of hygiene, quality and service, all over the world. Pepsi is
producing Cola for more than 100 years and it has dominated the world market for a long time.
Its head office is in New York.

The History of Pepsi-Cola

Refresh your Pepsi-Cola history! Over 100 years running and going strong!
1893--Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with
many different soft drink concoctions; patrons and friends sample them at his drugstore soda fountain.
1898--One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated water, sugar,
vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898. Pepsi-Cola receives its first
logo.
1902--The instant popularity of this new drink leads Bradham to devote all of his energy to developing
Pepsi-Cola into a full-fledged business. He applies for a trademark with the U.S. Patent Office,
Washington D.C., and forms the first Pepsi-Cola Company.

The first Pepsi-Cola newspaper advertisements appeared in the New Bern Weekly Journal.
1903--"Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a rented warehouse; he
sells 7,968 gallons of syrup in the first year of operation.
Pepsi's theme line is "Exhilarating, Invigorating, and Aids Digestion."
1904--Bradham purchases a building in New Bern known as the "Bishop Factory" for $5,000 and
moves all bottling and syrup operations to this location. Pepsi is sold in six-ounce bottles. Sales increase
to 19,848 gallons.
1905--Pepsi-Cola's first bottling franchises are established in Charlotte and Durham, North Carolina.
Pepsi receives its new logo, its first change since 1898.
1906--Pepsi gets another logo change, the third in eight years. The modified script logo is created with
the slogan, "The Original Pure Food Drink."
1907--Pepsi-Cola Company continues to expand; the company's bottling network grows to 40
franchises. Pepsi-Cola sells more than 100,000 gallons of syrup.
Pepsi trademark is registered in Mexico. Syrup sales rise to 104,026 gallons.
1908--Pepsi-Cola becomes one of the first companies to modernize delivery from horse drawn carts to
motor vehicles. Two hundred fifty bottlers in 24 states are under contract to make and sell Pepsi-Cola.
1909--Automobile race pioneer Barney Oldfield endorses Pepsi-Cola in newspaper ads as "A bully
drink...refreshing, invigorating, a fine bracer before a race."
1910--The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina.
1920--Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you."
1923--Pepsi-Cola Company is declared bankrupt and its assets are sold to a North Carolina concern,
Craven Holding Corporation, for $30,000.
1928--After five continuous losing years, Megargel reorganizes his company as the National Pepsi-Cola
Company, becoming the fourth parent company to own the Pepsi trademark.
1931--U.S. District Court for Eastern District Virginia declares the National Pepsi-Cola Company
bankrupt, the second bankruptcy in Pepsi-Cola history..
1933--By the end of the year, Guth's new Pepsi-Cola Company is insolvent. In a series of moves, he
acquires Megargel's interest in the company, giving himself 91% ownership of Pepsi.
1934--A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales, the company
begins selling its 12-ounce drink for five cents (the same cost as six ounces of competitive colas 1936-Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000.

1938--Walter S. Mack, Jr., V.P. of Phoenix Securities Corporation is elected President of the Pepsi-Cola
Company
1939--The "Pepsi & Pete" comic strip introduces the "Twice as much for a nickel" theme in
newspapers.
1940--Pepsi-Cola Company makes advertising history with "Nickel, Nickel," the first advertising jingle
ever broadcast nationwide on radio.
1941--The New York Stock Exchange trades Pepsi's stock for the first time.
1943--Pepsi's theme line becomes "Bigger Drink, Better Taste."
1948--Corporate headquarters moves from Long Island City, New York, to midtown Manhattan.
1950--Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steele's wife, Hollywood movie
star Joan Crawford, is instrumental in promoting the company's product line.
Pepsi receives its new logo, which incorporates the "bottle cap" look. The new logo is the fifth in Pepsi
history.
1953--"The Light Refreshment" campaign capitalizes on a change in the product's formula that reduces
caloric content.
1955--Herbert Barnet is named President of Pepsi-Cola.
1959--Pepsi debuts at the Moscow Fair. Soviet Premier Khrushchev and U.S. Vice President Nixon
share a Pepsi.
1960--Young adults become the target consumers and Pepsi's advertising keeps pace with "Now it's
Pepsi, for those who think young."
1962--Pepsi receives its new logo, the sixth in Pepsi history. The 'serrated' bottle cap logo debuts,
accompanying the brand's groundbreaking "Pepsi Generation" ad campaign.
1963--After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall is named CEO
of Pepsi-Cola Company.
1964--Diet Pepsi, America's first national diet soft drink, debuts.
1965--Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and Pepsi-Cola
merge, forming PepsiCo, Inc.
1970--Pepsi leads the way into metrics by introducing the industry's first two-liter bottles. Pepsi is also
the first company to respond to consumer preference with light-weight, recyclable, plastic bottles.
1974--First Pepsi plant opens in the U.S.S.R.
1976--Pepsi becomes the single largest soft drink brand sold in American supermarkets.

1977--At 37, marketing genius John Sculley is named President of Pepsi-Cola.

1978--The Company experiments with new flavors. Twelve-pack cans are introduced.
1980--Pepsi becomes number one in sales in the take home market.
1981--PepsiCo and China reach agreement to manufacture soft drinks, with production beginning next
year.
1982--Pepsi Free, a caffeine-free cola, is introduced nationwide. Pepsi Challenge activity has penetrated
75% of the U.S. market.
1983--Mountain Dew launches the "Dew it to it" theme.
1984--Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New Generation."
1985--After responding to years of decline, Coke loses to Pepsi in preference tests by reformulating.
1986--Chairman Donald M. Kendall retires and is succeeded by D. Wayne Calloway.
1987--Pepsi-Cola President Roger Enrico is named President/CEO of PepsiCo Worldwide Beverages.
1988--Craig Weatherup is appointed President/CEO of Pepsi-Cola Company.
1989--Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation Ahead."
1990--American Music Award and Grammy winner rap artist Young MC writes and performs songs
exclusively for national radio ads for Pepsi.
1991--Craig E. Weather up is named CEO of Pepsi-Cola North America, as Canada becomes part of the
company's North American operations.
1992--Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding "Choice of a
New Generation."
1993--Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi."
1994--New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO Craig
1995--In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the
year's national advertising championship.
1996--In February of this year, Pepsi makes history once again, by launching one of the most ambitious
entertainment sites on the World Wide Web.
1997--In the early part of the year, Pepsi pushes into a new era with the unveiling of the Generation
Next.
1998--Pepsi celebrates its 100th anniversary.

FOUNDERS OF THE COMPANY

The company was initially owned by late Nawab Saddiq Hussain Qureshi & family till 1989.
The Pepsi International franchise declared the management incompetent, thus, the company was
handed over to a new set of personnel. The factory set up was reorganized & reestablished with
expansion in various sectors. The Pepsi International did this by offering it to Mr. Jahangir
Tareen, who formed up his new team. Mr. Jahangir Tareen is Nephew of General (late) Akhtar
AbdurRehman.
Pepsi was found in 1892.
In 1959 Pepsi Cola was introduced in Pakistan but due to lack of awareness it was unsuccessful
therefore the headquarters decided to windup their business in Pakistan
1963 It came again with much revised Strategy, facing a lot of difficulties in promoting their
product and competing against COCA COLA which was a well-established brand here in
Pakistan and for that reason Pepsi once again went back
1979 Pepsi had secretly promoted its diversified products and carter to all demographic groups of
Pakistan there for within 5 years they emerged as a market leader, having 72% of market share
while COCO COLA had only 28% share. But now its market share has decreased to 8%.

MISSION STATEMENT
"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."

VISION STATEMENT
"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."

"To increase the value of their shareholder's investment through sales growth, cost control and
wise investment of resources."

Roles and objectives of organization

The roles and responsibilities the organizational managers and leaders play
are at below:Management of any organization has the responsibility of setting out the goals and objectives. It
also sets the expectations of how employees are supposed to behave in various situations. As
such, it outlines the overall organization culture. For culture to be effectively maintained in an
organization, managers and leaders must act as followers and also leaders. Commitment and
enthusiasm towards a person or an organization distinguishes effective and ineffective followers
as well as leaders. A healthy organizational culture is based on mutual understanding and
cooperation between the employees and the management. For a healthy organizational culture to
be maintained, leaders and managers learn role decision making and law of cash plays in an
organization. At PepsiCo, the managers and leaders have identified the relationship that exists
between themselves and the employees. In this company, the leaders and managers usually use
information elements in supporting the employees' decision making for improvement of the
working condition. Employee's involvement in decision making especially in regard to their
working conditions and environment is a key to ensuring that a healthy culture is developed in an
organization. This approach is highly utilized at PepsiCo by leaders and managers. At PepsiCo,
managers and leaders involve all levels of management as well as the employees on the decision
making process and they always encourage open and participatory decision making process.
Ensuring that resources are only applied to activities expected to bring great returns and enhance
the products value to the customers is also another role played by leaders and managers at
PepsiCo. Leaders and managers at PepsiCo participate in the allocation of products and
throughout the production process to the final stage of determining the price of a commodity. A
healthy organization culture is created and maintained through active participation of top
management. For leaders and managers to be able to achieve successful organizations, they must
follow the set objectives by leading the employees, initiating necessary changes, creating a
shared vision and need monitor progress and mobilize commitment among employee. Managers
encourage the, employees to pursue the set goals while leaders have the role of giving the
specific direction for achievement of these goals. Managers and leaders at PepsiCo blend this
roles well a strategy that have ensure continued profitability of this company. To ensure creation
and maintenance of a healthy organizational culture in maintained at PepsiCo, leaders and
managers jointly perform the management function which includes planning, budgeting,
evaluating and facilitating of organizational resources. At PepsiCo the management is charged
with the role of formulating plans regarding available assets and resources required for product

development through to marketing of finished products. Managers come up with the plans for
fulfilling productivity goals and also give the production methods. While formulating these
plans, employees are consulted and their views incorporated in the overall plans of the company.

Marketing Strategies of Pepsi

The keys to reaching its goals are to concentrate its resources on growing its current businesses
and acquiring related companies to broaden its product line. An ongoing battle for market share
has existed for over 75 years. Company has tried a number of strategies to gain a sustainable
competitive advantage.
These strategies included:
Introducing new soft drink products
Diversification
Aggressive advertising campaigns

Pepsi must identify and implement the strategy best suited to gain the competitive advantage in
the soft drink industry on a world-wide basis.

ORGANIZATIONAL STRUCTURE
Pepsi follows a traditional corporate organizational structure. It is an enormous international
company, and follows a top down structure. Pepsi is organized much the way that many other
large companies are organized. Pepsi Companys organization is divided into four areas covering
Asia, Africa, Europe and America. These four subdivisions are further narrowed among the
countries in these continents. The inter- organization structure of the company has different
divisions. The manufacturing plant makes the bottles, the distributors deliver to the suppliers,
and the suppliers sell it to the retailers and finally to the consumers. These supplychains in
different countries are controlled by one main headquarter situated in New York, USA.

PRODUCTS OF ORGANIZATION
The soft drinks market in Pakistan enjoys dynamic growth in both volume and value terms.
Carbonated drinks have become part of the culture in Pakistan and multinational companies have
maintained standards over the years to provide the nation with high-quality drinks. Rural areas of
Pakistan have driven sales of carbonated drinks to new heights as more than 60 percent of the
population resides in rural areas and young consumers are more attracted to advertising. Pepsi is
the most popular and leader brand in the Pakistani market and is consumed by children and
adults alike. Pepsi is a responsible corporate brand of Pakistan and have contributed a lot to the
economy.

Pepsi has a product line comprised up of carbohydrate drinks, Lays and many other products in
Pakistan. Pepsi's product line satisfies consumer needs because Pepsi produces different types of
soft drinks for different consumers.
The main product of Pepsi Cola Company is Pepsi and its sub brands are Dew, Miranda, 7up,
Aquafina, Pepsi Max. It also diversified into Lays.
Providing their consumers with easy-to-use, convenient and innovative containers are one of
their top priorities. Package introductions they've made over the years include the industry's first
1 liter bottle; Regular, Disposable; Can. Pepsi Co. was the first company to respond to
consumer preference with lightweight, recyclable, plastic bottles. These bottles are made of
polyethylene terephthalate or "PET plastic," which is a form of polyester used to make strong,
lightweight, shatter-resistant bottles.

Pepsi Products
Mountain dew is the most recent addition in the product line of soft drinks which is very
popular especially among the youngsters.

However Pepsi launch its several variants with a minor difference on frequent interval of time.
There have been many Pepsi variants produced over the years since 1903, including
Dew
Slice
Aquafina
Miranda
7UP
Diet Pepsi
Crystal Pepsi
Pepsi Twist
Pepsi Max
Pepsi Blue
Pepsi Pink
Pepsi Holiday Spice
Pepsi Jazz

 Pepsi Salty Water melon

Pepsi Next
Pepsi Raw
Pepsi One
Pepsi Ice Cucumber
Pepsi Mist

New Product Category

Pepsi which is mainly a company of soft drinks .After establishing a brand in Pakistan Pepsi
came into several new product categories. Lays, Kurkuray and Aquafina, fast food restaurants
are the examples of new product category.

PepsiCo, Inc. Competition

The PepsiCo challenge (to archrival Coca-Cola) never loses its fizz for the world's #2 carbonated
soft drink maker. Its soft drink brands include Pepsi, Mountain Dew, and their diet alternatives.
Cola is not the company's only beverage: Pepsi sells Tropicana orange juice, Gatorade sports
drink, SoBe tea, and Aquafina water. The company also owns Frito-Lay, the world's #1 snack
maker with offerings such as Lay's, Ruffles, Doritos, and Cheetos. The Quaker Foods unit makes
breakfast cereals (Life, Quaker oatmeal), Rice-A-Roni rice, and Near East side dishes. Pepsi
products are available in 200-plus countries; the US generates 50% of sales. The company
operates its own bottling plants and distribution facilities.

Top Competitors for PepsiCo, Inc.

These are as below:1. The Coca-Cola Company

2. Mondelez International, Inc.

3. Dr Pepper Snapple

Coca-Cola Versus Pepsi

Competitive Analysis
Brand war is common in traditional media where they compete for attention through
advertisement. But in the age of social media, the bar has been raised by brands because they are
no more in control of their messages. Lets check out comparison.

Brand, Logo name:

SWOT Analysis of PEPSI

SWOT Analysis, which is based on thorough review of the business (corporation, product
category competition, customers and products), identities and evaluates the internal strengths and
weakness of the companies well as its external threats and opportunities. The marketing mix is
driven by the results of the SWOT analysis.

STRENGTH:Demand of Pepsi is more than its competitors.

Company has a very established name and a good reputation.
Pepsi has large market share than its competitors.
As the target customers of Pepsi is young generation, so Pepsi has more brand loyal customers.
Most of the customers are satisfied with the price of the Pepsi.
Pepsi is an international company and it has a very strong position internationally.
The environment of factory is very good and attractive.
Pepsi spends a lot of budget on its advertising.

Pepsi has a very vast distribution channel and it is easily available everywhere.
Employees are also motivated.
Pepsi offers many discount schemes for customers time to time.
Pepsi Cola is sponsoring sports, musical concerts, walks.
The location of the Pepsi plant is utilized that all major markets of Lahore are within the reach of
the Pepsi plant within 30-45 minutes.

WEAKNESSES:Pepsi does not offer any sort of incentive or discount to its retailers.
Pepsi target only young customers in their promotions.
Crown of the disposable bottle is not good.
Demand of disposal bottle is declining.
Pepsi tin pack is not available in far off rural areas.
Pepsi is not considering many potential outlets like hotels, college canteens etc.

OPPORTUNITIES:Company may start entering rural areas also.

The company may also diversify its business in some other potential business.
Increased interest of people in musical groups, cultural shows and sports has provided an
opportunity for Pepsi to increase its sales through them.

THREATS:The main competitor of the company is the Coca Cola.

At the international level, Pepsi has a very strong competition with Coke. Coke has started its
advertisements more effectively to increase their demand and it is a very strong threat for Pepsi.
Cola drinks are not good for the health so the awareness level of the people is increasing which is
a big threat to the company.

PEST Analysis of PepsiCo

Political Factors
PepsiCo is nonalcoholic beverage and has to follow regulated by FDA with consistency.
Also, it deals in different markets and every market has its own policies and procedures that are
either stringent or either relaxed. Especially cross border situations are very different and Pepsi
has to adapt to these changes accordingly.
PepsiCos competitors use competitive pricing strategy and Pepsi has to always keep this in
mind.
PepsiCo has to also deal with governments focus on stricter water pollution norms and land
acquisition for new factories in different countries.

Economic Factors
Usually whenever there is an economic downturn faced by the economy, companies sales are
badly affected and they have to restructure their strategies.. Also, with falling profits companies
sometimes have to undergo downsizing. Economic scenario has a great influence on any
business. But the economic in 2008 was in Pepsis favor. It resulted in increased sales of its
beverages as people were jobless and were sitting at home, spending more time with family and
friends.

Also, fuel prices greatly affect PepsiC0s transport costs as there is a lot of distribution involved.
Availability of labor is another very important economic factor .In some countries the labor is
quite expensive and if its cheap then sometimes labor is not well trained.

Social Factors
Social factors greatly affects Pepsi, as its a non-alcoholic beverage that deals worldwide it has
keep in mind stark and strict differences of cultures the worldwide. Mostly, the social
implications are seen in advertising campaigns like some countries have religious festivals, so
Pepsi has to keep in line with all these festivals and design advertising campaign accordingly to
cash upon the opportunity to the fullest.
Also the solid waste management program affects the operations at PepsiCo. PepsiCo has to be
extra careful when it comes to waste disposable in order to maintain its image of a socially
responsible firm.
PepsiCo is one of the few companies that operate almost in every country. PepsiCo has an
implementation of SAP software and wind power manufacturing in India .Also, PepsiCo
introduced plastic bottles and cans and came up with innovative and newer designs.

Technological:
With the technologies coming in, companies have changed their strategies and operations
accordingly. A recent trend that has been seen and something that almost every company is
inclining toward is Social Media.
The social media outburst has led to progressively interactive engagement with the buyers with
continuous comes about so Pepsi has to be aware of all the developments that take place with
keeping in mind the increased use of technology by youth for their benefit how can PepsiCo use
this to maintain and increase its customers loyalty.
PEST Analysis; by analyzing the political , social, environmental and technical aspects, the
company or its competitors can discover new possibilities and can identify the advanced warning
of threats. It shows the possible risks that can be due to change in company environment and
allows the company to form accordingly rather than going against it. Furthermore, it gives you
purpose perspective of the new industry that the company goes into in and allows you discover
new places according to the requirement of the industry.
Lastly, it allows the business to avoid projects that have possibilities to fall short, for reasons
beyond control and finally it allows company to discover new markets.

Balance Sheet for Pepsico, Inc.

Cash And Cash Equivalents

Short Term Investments
Net Receivables
Inventory
Other Current Assets
Total Current Assets
Long Term Investments
Property Plant and Equipment
Goodwill
Intangible Assets
Accumulated Amortization
Other Assets
Deferred Long Term Asset
Charges
Total Assets

Dec 29, 2012

Assets
6,297,000,000
322,000,000
7,041,000,000
3,581,000,000
1,479,000,000
18,720,000,000
1,633,000,000
19,136,000,000
16,971,000,000
16,525,000,000
1,653,000,000

Dec 31, 2011

4,067,000,000
358,000,000
6,912,000,000
3,827,000,000
2,277,000,000
17,441,000,000
1,477,000,000
19,698,000,000
16,800,000,000
16,445,000,000
1,021,000,000

5,943,000,000
426,000,000
6,323,000,000
3,372,000,000
1,505,000,000
17,569,000,000
1,368,000,000
19,058,000,000
14,661,000,000
13,808,000,000
1,689,000,000

74,638,000,000
72,882,000,000
Liabilities
Accounts Payable
12,274,000,000
11,949,000,000
Short/Current Long Term Debt 4,815,000,000
6,205,000,000
Other Current Liabilities
Total Current Liabilities
17,089,000,000
18,154,000,000
Long Term Debt
23,544,000,000
20,568,000,000
Other Liabilities
6,543,000,000
8,266,000,000
Deferred Long Term Liability
5,063,000,000
4,995,000,000
Charges
Minority Interest
105,000,000
311,000,000
Negative Goodwill
Total Liabilities
52,344,000,000
52,294,000,000
Stockholders' Equity
Misc Stocks Options Warrants -123,000,000
-116,000,000
Redeemable Preferred Stock
Preferred Stock
Common Stock
26,000,000
26,000,000
Retained Earnings
43,158,000,000
40,316,000,000
Treasury Stock
Capital Surplus
4,178,000,000
4,461,000,000
Other Stockholder Equity
-24,945,000,000
-24,099,000,000
Total Stockholder Equity
22,417,000,000
20,704,000,000
Net Tangible Assets
-11,079,000,000
-12,541,000,000

Dec 25, 2010

68,153,000,000
10,994,000,000
4,898,000,000
15,892,000,000
19,999,000,000
6,729,000,000
4,057,000,000
312,000,000
46,989,000,000
-109,000,000
31,000,000
37,090,000,000
-16,745,000,000
4,527,000,000
-3,630,000,000
21,273,000,000
-7,196,000,000