PROJECT REPORT ON SWOT ANALYSIS OF PEPSI CO

Submitted in Partial Fulfillment of the Requirement of B.Com (Hons-IIIrd Year)

UNDER THE GUIDANCE OF: MS. HIMANI (FACULTY OF COLLEGE)

SUBMITTED BY: ADITI ROLL NO. 276 SECTION: J

SHRI RAM COLLEGE OF COMMERCE, NEW DELHI

DECLARATION
I hereby declare that the present research project entitled SWOT A !"#$%$ &' P()$% C&*, submitted to Shri Ram College of Commerce, Delhi, is an original piece of work and is not submitted to any other university.

Student Signature ADITI ROLL NO. 276 B. COM (H) III/0 Y(!/

Signature of roject !uide" MS. HIMANI (F!+,"-# &' C&""(.()

AC1NOWLEDGEMENT
#y minor project report SWOT A !"#$%$ &' P()$% C&*, has become successful because of the helping hand by the courteous people mentioned below, without their inspiration, help, continuous guidance and co$operation% I could not have succeeded in this project.

&ith deep sense of gratitude I acknowledge the encouragement and guidance received by guide M$. H%2! % (F!+,"-# &' C&""(.(). I convey my heartful affection to all those people who helped.

ADITI ROLL NO. 276 SECTION: J

TABLE OF CONTENT

3.

INTRODUCTION 'bjectives of the study Research #ethodology (imitations

2.

PROFILE OF PEPSI CO )istory *mergence Company Structure

4.

INTERNAL AND E5TERNAL ANALYSIS OF PEPSI CO

6.

ANALYSIS AND INTERPRETATION $ SWOT ANALYSIS

CONCLUSION AND RECOMMENDATION

BIBLIOGRAPHY

INTRODUCTION M(! % . &' /($(!/+8

Research in common parlance refers to a search of knowledge. Infact, research is an art of scientific investigation. +he ,dvanced (earners Dictionary of Current *nglish lays down the meaning of research as -a careful investigation or en.uiry especially through search for new facts in any branch of knowledge/. Redman and #ory define research as a -systemi0ed effort to gain new knowledge/. ,ccording to Clifford &oody research compromises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organi0ing and evaluating data, making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Research is thus, an original contribution in the e1isting stock of knowledge making for its advancement.

O9:(+-%;($ &' /($(!/+8

+o gain familiarity with a phenomenon or to achieve new insights into it. +o portray accurately the characteristics of a particular individual, situation or a group. +o determine the fre.uency with which something occurs or with which it is associated with something else. +o test a hypothesis of a casual relationship between variables.

T#)($ &' R($(!/+8

D($+/%)-%;( ;$. A !"#-%+!"" Descriptive research includes surveys and fact finding en.uiries of different kinds. +he major purpose of this research is description of state of affairs, as it e1ists at present.

A))"%(0 ;$. F, 0!2( -!"" ,pplied research aims at finding a solution for an immediate problem facing a society or a business organi0ation, whereas fundamental research is mainly concerned with generali0ations and with the formulation of a theory.

<,! -%-!-%;( ;$. <,!"%-!-%;(" 2uantitative research is based on the measurement of .uantity or amount. It is applicable to phenomena that can be e1pressed in terms .uantity. 2ualitative research is concerned with .ualitative phenomena relating to or involving .uality or kind.

C& +()-,!" ;$. E2)%/%+!": Conceptual research is that related to some abstract, ideas or theory. hilosophers and thinkers to develop mew concepts or to reinterpret the e1isting ones generally use it. &hereas, *mpirical research relies on e1perience alone often without due regard for system and theory. It is data based research, coming up with conclusions, which are capable of being verified, by observation or e1periment.

3. THROUGH <UESTIONNAIRES:=
+his method of data collection is .uite popular in case of big en.uiries. It is being adopted by private individuals, research workers, private and public organi0ations and even by government. It is free from the bias of the interviewer. In this method usually a .uestionnaire is sent to the person concerned with the re.uest to answer the .uestions and return the .uestionnaire. , .uestionnaire consists of number of .uestions printed or typed in a definite order on a form or set of forms.

2. THROUGH INTER>IEWS:=
+he interview method of collecting data involves presentation of oral$verbal stimuli and reply in terms of oral or verbal responses. +his method can be used through personal and if possible through telephone interviews. P(/$& !" % -(/;%(? may be in the form of direct personal investigation or it may be indirect oral investigation. +he method of collecting information is usually carried in a structured way. Such interviews involve the use of a set of predetermined .uestions and highly standardi0ed techni.ues of recording. T("()8& ( % -(/;%(? is not widely used but plays important part in industrial services. It is more fle1ible in comparison to mailing method. It is .uick way of obtaining information and it is relatively cheaper. #oreover, there is a higher rate of response.

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LIMITATIONS OF THE PROJECT

'ne of the basic problems is the time constrain. +he method takes a lot of time and therefore becomes a bit slow. +his method involves the use of only secondary data. +he process can be a little tedious and costly.

PROFILE OF PEPSI CO. C&2)! # S-/,+-,/(

-+he structure of an organisation affects not only productivity and economic efficiency but also the morale and job satisfaction of the workforce./ 4irstly, one must look at what type of company is epsiCo. +o find this, we look at the mission statement. It is clear that it is a profit making company that aims to be the market leader. Secondly, one must identify the major stakeholders. In this case they are the shareholders, managers and employees as detailed below. (astly, one must define epsiCo5s purpose. +his tells us how epsiCo should be structured. #any of these issues have been determined earlier, but for a company like epsiCo it is clear that these matters must also be connected to the fact that they are a multinational company in branded goods.

S-/,+-,/( &' P()$%C&

epsiCo5s structure is paramount to the promotion of a successful strategy, particularly when it is e1panding into unknown territory. It should be simple and cost$effective. Due to the fact that epsiCo5s businesses are not completely unrelated to each other, epsiCo has a hori0ontal differentiation style of business. It would not best serve their interests to have a vertical organi0ational style due to the fact that the epsi drink is served in all the restaurants 6 thus linking each subsidiary .uite distinctively to the others.

epsico

epsi Cola

!atorade

2uaker 'ats

4rito (ay

+ropicana

T8( M,"-%0%;%$%& !" O/.! %$!-%& !" S-/,+-,/(

+his structure is ideal for an organisation that grows with time, which also needs to subdivide their activities in order to deal with the great diversity in products and local needs. ;elow is the specific epsiCo structure"

C8%(' EA(+,-%;( O''%+(/ Steven S. Reinemund

Headquarters
Central support services urchase, 7ew 8ork

G!-&/!0(BT/&)%+! !B<,!C(/ F&&0$ N. A2(/%+! 9Chicago:

F/%-&=L!# E,/&)(B A'/%+!BM%00"( E!$9Swit0erland: F/%-&=L!# I -.9#e1ico:

P()$%C& B(;(/!.($ I -. ! 0 P()$%=C&"! N. A2(/%+! 97ew 8ork:

epsiCo had appro1imately 3<=,>>> employees in ?>>3.+his amount of personnel re.uires many levels in the corporate hierarchy and many people in each layer.+he layout of the company is as follows. +his first layer is the C*' of epsiCo, Steven Reinemund. )e has eight second layers reporting him.

In our research, we could only find one third level officer, but it helps to show how each level is split up by products and by geographic locations. In the fourth level, the individual products start to become prevalent in the corporate hierarchy.

INTERNAL AND E5TERNAL ANALYSIS INTERNAL ANALYSIS

In this section, our analysis will focus mainly on epsi$Cola resources,

capabilities, and competencies to effectively create competitive advantages. 4irst, it is of evidence to mention a major characteristic of the product namely that the taste of the epsi is a standardi0ed one. Conse.uently, is it is not a technically fastidious task to produce the drink% there are not many opportunities for innovation and improvement of the product itself. Conse.uently, the product .uality is not a major concern and does not constitute value added for the company.

In fact, new technologies or research efforts can hardly produce any changes or innovations regarding epsi5s drink. 7evertheless, epsi has to build on customer responsiveness especially on the packaging, image and price of the product.

In other words, the main efforts are directed towards marketing, promotion and distribution and much attention is paid to increase attention in customer response time. +o this e1tent, brand management and brand promotion of reputation for .uality are meant to develop core competences that are perceived by customers as providing benefits and thus, create competitive advantage.

O9$(/;!-%& $ -8/&,.8&,- H%$-&/#

epsi$Cola is still second in the carbonated drinks market and remains in the shadow of Coca Cola in terms of market share, perception and image. )owever,

epsi5s insightful marketing techni.ues 9comic strips, television ads etc@: prevented a fall of its position in the beverage industry.

4rom 3ABC, by using diversification techni.ues and brand management, the company was able to increase its volume of sales and get a stronger market position. 7owadays, epsi5s carbonated beverages division clearly remains

behind the snack division in terms of profitability and share percentage of operation earnings. 'ur impression is that the profits of the snack division help create the illusion that the beverage sector is as successful as the management wishes it to be.

&e observed a definite inferiority comple1 towards Coke that initiated the main motor in the company5s top management philosophy. ,s Roger *nrico wrote in his book about cola war, epsi5s strategy was heavily focused in gaining a better position in the beverage industry by finding new ways to differentiate from Coke and to take advantage of strategic alliances in the market.

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, .uestion is raised by acknowledging the above mentioned facts" how to beat your competitor if you cannot offer a -better/ product. 4or epsi, the answer is efficiency, innovation in marketing techni.ues and customer responsiveness. Dsing less input in the value chain of its primary activities, epsi is able to be more efficient and to attain a lower cost structure.

#oreover, epsiCo built its competitive advantage mainly by achieving greater economies of scale in the sectors of communication, distribution and bottling thus reducing production costs.

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+he aim of the new marketing strategy developed by *nrico was to sharpen the image of epsi. It also contained a specific message directed to young people using e1tensive advertising campaigns on +E and radio. ,s an e1ample, epsi5s innovative marketing was showed to the world when in 3AAB it first recorded a commercial in space.

4urthermore,

epsi kept the consumer5s perception waiting by ac.uiring

#ountain Dew, and creating epsi blue. Improving the .uality of the company5s product offering is consistent with achieving customer responsiveness, as is developing new products with features that e1isting products lack. epsi blue

was in fact not as successful as hoped, yet the product aided in the overall perception of the brand epsi$Cola.

B/! 0% . ED,%-#
;rand loyalty is a buyers5 preference for the products of incumbent company. , company can create brand loyalty through continuous advertising of brand and company names, patent protection of products, product innovation achieve through its research and development programs and emphasis on high product .uality and good after$sales services. It is effective influence in the way in which people perceive the product or the company. ;y creating feelings of warmth, affection and belonging to a product, a firm is able to relate brand to human personalities.

eople prefer to buy brands as they give them personal means and judgment and they offer a .uick and clear guide to a variety of competitive products.

In the beginning of the 3AA>5s

epsiCo management decided to create a

proprietary model applicable to all major epsiCo brands, both domestically and globally focusing on cross$category brand and product specificity. +he goal was to have a single definition of brand e.uity applicable to every product.

, second goal was to strike a balance between sensitivity 9the ability to detect real e.uity changes: and stability 9the absence of spurious or short$term fluctuations:. +he marketing and research management of epsiCo as well as

some of its consumers were interviewed to find out the attributes that contributed to a favorable brand$consumer relationship across product categories and make comparisons with key competitors like Coca$Cola in the soft drinks sector.

epsiCo deployed the *.uitrak brand e.uity model to track its major brands on a global scale in 3AAF, following its success in the DS,.;y late 3AAA, epsiCo had created a brand database consisting of over B,>>> *.uitrak brand e.uity GscoresG.

Results from each tracking wave are distilled and formally presented to senior epsiCo e1ecutives and country managers. Comparisons are made between epsiCo brands, competitive brands, and other global brands by country over time. +his presentation, supplemented with other competitive data, is used to focus managerial attention on how epsiCo brands and marketing programs are performing towards their competitors. &e imagine that this was a successful method of understanding consumer behaviour and also to project the caring epsi$Cola image.

R(0,+% . C&$-$
'ne e1ample illustrates how epsi is always trying to find new ways of reducing costs and increase efficiency. Service technicians for +he epsi ;ottling !roup Inc. 9 ;!: in the D.S. used to generate H million pieces of paper per year while making routine repairs to soda fountains and vending machines. ;ut after a yearlong rollout of wireless handheld computers, that paper mountain has completely disappeared.

+he new system, built around a rugged computer allows

;! to maintain a

virtual inventory of parts on each technicianIs truck thatIs linked to a database accessible by the companyIs eight call centers, , dispatcher can .uickly determine whether one of F>> epsi technicians e.uipped with the Sidearm has the right kind of part needed for a pending job thus increasing customer responsiveness and effectiveness of after$sales service.

,nother way of reducing costs was by investing into the new Computer system -!eneration7et/. 4ollowing from this was the - ep7etSystem/ which serves both, lower cost and customer responsiveness. +his resulted in a more efficient communication system.

E5TERNAL ANALYSIS
In order to understand the marketing strategy of one company it is very important to analyse the environment it is operating within. +he analysis of the environment has a few very important aspects that clearly illustrate how a company like epsi has managed to stay in business for such a long time. +o analyse this clearly, a general rule can be applied to epsiCo.

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If we look at the epsi$Cola Company from the outside, there has been a certain amount of repetitiveness in its development. ;y following the trends and

focusing on how to lower the price as much as possible, they managed to create a successful company. ;y investing in the development of the bottling and distribution sector, epsi found their balance in the market.

+hen in 3A?>5s

epsi$Cola Company failed because they didn5t concentrate

enough energy on branding. &ithin a few years epsi was declared bankrupt twice. ;y the end of the 3AH>5s the company was reorgani0ed from inside and the

marketing policy drastically changed. #ajor investment was now directed towards making people more familiar with the product.

,fter ac.uiring #ountain Dew, new sources of financing and revenue opportunities were needed because the ac.uisition was not an instant success. +herefore, in 3ABC epsi merged with 4rito (ay. In the 3A=>5s the decreasing sales in the beverage market induced the industry to adjust with more aggressive marketing strategy and new products. In fact, Coke marketed a new cola formula, whereas epsi persisted with promotional efforts and improved customer

responsiveness to increase sales volume.

4ollowing these cyclical changes in the marketing policy of the firm 9every ?> years there is a huge turn over:, one could conclude that this is the time for epsiCo5s to readjust. +he circumstances underlying the merger with 2uaker 'ats are significant. 7owadays, the market is rapidly changing and it5s

becoming saturated. +he entrance into potential new markets is more comple1 than ever conse.uently, the only way for the company to e1pand is by gaining market share by mergers or strategic alliances. 4urthermore, the marketing strategies in foreign markets like China and India are e1periencing problems in customer responsiveness. Currently, the beverage sector is following a trend of continuous launch of new products in order to attract new customers. In this sense, the challenge for epsi is to be able to sustain such a trend and conversely, to remain a leader in their market.

1(# F!+-&/$ '&/ S,++($$

+o analy0e the e1ternal environmental impacts, we have to look at the company as an organism that is constantly interacting with its customers, partners, suppliers and competitors. &hen epsi$Cola was created, the management was looking for the recipe for success that would also be matched with the creation of

a uni.ue name and logo. +hus, the whole -cola war/ story was the driving force of every change epsi implemented in its business strategy.

+he creators of

epsi decided to use the same colors and lettering as Coke,

simultaneously promoting and e1panding the same product. In the short run, the strategy worked and allowed epsi to take advantage of Coke5s previous business innovation. )owever, in the long run, epsi would have to build its own

reputation and to differentiate itself from its rival.

;asically at that time, epsi focused on achieving lower cost production in its bottling and distribution units. +herefore, the promotion of their products was put aside by the result of this strategic choice. +he financial crisis commanded important changes with regards to innovation. 4rom being a follower, became the leading innovator. epsi

epsi$Cola previous e1perience revealed that the management did not put much attention on their e1ternal reputation. #oreover, as a leading company, epsi had to be consistent and convinced about their strategy as opposed to follow the competitor5s strategy.

epsiCo beverages operated in a highly competitive market and new solutions were to be found to remain at the edge of the industry. ,s a result, epsi$Cola Company merged with 4rito$(ay, creating the epsi Corporation 9 epsiCo: with operations in different business sectors. epsi also gained important business

leverages by placing their products within their own restaurants. 4inally they decided to change the structure by e1tracting the bottling company from the corporation.

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In this section, we will focus on four elements" political, economical, socio$ cultural and technological environment.

P&"%-%+!" E ;%/& 2( epsiCo is a global corporation. 4or the company that has substantial involvement in the world economy, it is not surprising that epsiCo has been implicated in many political scandals. In 3AA3 epsiCo entered into a joint

venture agreement with #yanmar Company that had ties with the junta challenging the government in place in ;urma. &hen the country was being torn apart by internal military conflicts, the scandal erupted and epsi was suspected of financing the junta. Subse.uently, there was a boycott of all epsi products and the situation alerted the international community because of the human rights violations perpetrated by the junta.

,t the end of the 3AA>5s epsiCo was charged in the D.S. of violating the labor and minimum wage conditions set by I('. In 3AAC they were fined JAC <A3 on the basis of violations of labor conditions and then in 3AA= they were penali0ed J3>F.>>> for minority discrimination. 'ther political affairs were also brought to the public arena. ;etween speculations and the truth, one thing is sure" the connections to the &atergate affair and the Kennedy assassination led to a lot of free publicity for epsi.

E+& &2%+ E ;%/& 2( +he economical segment is the second element to be analy0ed. It is indisputable that epsiCo is one of the worldwide leaders in the snacks and beverage industry. ,ll available information made it clear that epsiCo is a profitable corporation. +he fact that they had some crises means they are apt to change in the modern market. +his segment of the company was already e1plained before and will be discussed in the ne1t chapters as well so we won5t elaborate further here.

S&+%&=+,"-,/!" E ;%/& 2( +urning to the socio$cultural element epsiCo was always researching new ways to approach its customers. +he involvement in the humanitarian actions is necessary for the image of international corporations. +he other aspects are much more interesting since they are more recent. ,s it was already mentioned, the main consumer group for epsi is teenagers. It was just a matter of time before the company entered with its policy to market them within the educational system. Some see it as bad thing, whereas some support it. It is a fact that there are good and bad elements, but nevertheless this progress cannot be stopped.

&hat did epsi actually doL +hey started with the scholarship program, which is common practice. +han the idea e1panded and the musical education program was initiated. It was supported because it was fun and educating at the same time. 4inally the company started to financially help schools in need, by buying computers and other facilities. ,t this point, the problem emerged. +he scheme for financial support meant that the schools had to place epsi signs on the

buildings, in the halls or on their homepages. Can this policy really be beneficial for educationL 7evertheless, people connected to the educational system are objecting. &hyL ;ecause the cola war has just found another battlefield" school desks.

T(+8 &"&.%+!" E ;%/& 2( (ast, but not least, technology. &hat kind of technology are we talking aboutL +echnology that makes the drink and the one that makes the drinks containers. *1ternally there is a small problem, which has the potential to develop. +he problem is with plastic waste. +his is already a huge problem in the D.S. and it is becoming an issue in *urope as well. +he fact that plastic packaging is the cheapest and most practical material is not a good enough reason anymore. +he larger market is demanding new solutions.

+he second problem is even more recent" how is the beverage produced and what are the ingredients usedL ;iological awareness will soon reach the point when the ingredients and their production will have to be transparent to the consumers. ;ioengineering is target enemy number one in the ?3st century. &ill epsi be lucky in this area, as it was with drugs at the beginning of ?>th centuryL

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&hen talking about specific influences the most important thing to mention are the competitors. In the case of epsi$Cola, this is the biggest and the most

interesting aspect. Discussing carbonated drinks and epsi beverages cannot be done without mentioning Coke and the cola war. &as that really a -war/L It was a struggle for the market place and it had a large public impact. Due to the circumstances, both companies now know it is beneficial to have a cola war. )owever, there are other companies that are successfully disrupting the old order of the beverage market. +he most prominent one is Cott. It is a small firm that started at the end of the B>5s with the distribution of carbonated drinks in 2uebec and it has been growing surprisingly fast in the last few years. )ow the market will be reorgani0ed is still not clear, but the last two annual reports show the following" Figure No.1
YEAR C&2)! #

2EE7
NET NET RE>ENUES INCOME In billions of dollars 9J:

2EE6
NET RE>ENUES NET INCOME

PepsiCo (Beverages with snacks) PepsiCo Beverages Internationa l Coca Cola Company C!""

?>,3<< J

?,3=H J

?B,AHC J

?,BB? J

C,>AC J M ?CN of epsiCo ?>,<C= J >,AA J

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3>,<<> J M HAN of epsiCo

3,>< J

H,BA3 J >,>?C J

?>,>A? J 3,AA J

H,BAB J >,HAA J

+here are no doubts that Coca$Cola remains the largest player at this moment. Coca$Cola is not yet seriously jeopardi0ed as a beverage producer, but epsiCo could have some problems as their beverage sector is still divided between epsi ;everages &orldwide, +ropicana and 2uaker 'ats. Cott5s market tactics appear to be the improved version of epsiCo and Coke5s, so it is going to be interesting to follow the development of the market.

T8( C&=&)(/!-&/$
epsi$Cola as a company, then also as a part of a corporation, had a very simple policy for .uite a long time" those who are not your friends are either your enemies or your future ac.uisitions. +hen in the A>5s the policy changed and epsiCo started to sell off parts of the corporation. &as that because of the low profits, or was it due to the new way of thinkingL diverse areas did they plan to speciali0eL 'ne thing is sure% the mother corporation ac.uired precious co$operators. &hen they e1ited from the restaurant sector, there was an agreement made that ensured the epsiCo products e1clusive placement within the new +ricon !lobal epsiCo disposed of their responsibilities in this area, but still Company. +heir bottling sector, on the other hand, was placed on the stock market as ;!. maintained <>N of the shares. epsiCo was involved in many

T8( I2)&/-! +( &' 9(% . !?!/( &' -8( E ;%/& 2( +o conclude, epsi$Cola is 3>> years old and it has developed within strict

markets, such as China, and also within liberal environments, such as *urope. It is therefore .uite logical to support the analysis of the e1ternal issues, because it is necessary for success.

ANALYSIS AND INTERPRETATION =SWOT ANALYSIS

S-/( .-8$
M!/C(-% . epsi$Cola

Since3AH= promotion has been the major preoccupation of the

company. +heir largest budget goes towards promotion. +he traditional way of promoting is through commercials on +E, radio and newspapers 6 this achieved ama0ing results. &hat5s more, the *.uitrak campaign was an innovative way of marketing their product. +he tendency to find new and impressive ways to attract the customers led epsi$ Cola to invent other ways of promoting which have emerged during the last couple of decades. +he whole internet business, school programs, musical education, computer supply and sending a shuttle designed as a epsi can into orbit made them known world$wide as a leader in marketing. ,ll were sensations in this business, thus confirming their supremacy.

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,t the certain point epsi decided to focus on one small part of the population to sell the product to. It gave great results. If you focus on a certain type of customer it is easier to target this group through marketing. +his is e1plored in detail later.

D%;(/$%'%+!-%& epsiCo ;everages is part of a huge corporation and the result is economies of

scale which bring about large financial advantages. C&2)(-%-%;( P/%+($

+his corporation accounts for large number of diverse competitive products and their production line is very well developed. It is already a fact that epsi$Cola products are cheap and accessible to everyone. Competitive prices are definitely one of the strongest points of this company. F"(A%9%"%-# -& A0:,$- -& N(? T/( 0$ epsiCo beverages have been in the market for more than a century, it passed through many great and as many catastrophic periods during that time. +hey have always followed new trends, but they have learnt to take into consideration the environment. +hat shows that the fle1ibility to adjust to the on$going development of the market is well$handled challenge. T8( R($(!/+8 &' -8( T!$-(

+he taste of the caramel drink is an evergreen in tastes that cannot, and must not, be improved. +he money invested in research for new flavours is obligatory in order for them to continue to make profits. So far, epsiCo has had good, and also bad, e1periences as we described earlier. ,s this is .uite an unpredictable field, the ac.uired e1perience in order to search for the right taste should mean that epsiCo has developed some kind of advantage over other competitors. T/(!-2( -$ &' -8( E2)"&#(($ epsiCo. as corporation and epsi$Cola as its company has one of the most

developed systems of rewarding and educating its employees. +his is the area that many companies are trying to imitate and implement as part of their own structure, so this is clearly another strength.

W(!C ($$($
S-%"" S(+& 0 B($'ne can say that epsi was born with a -Coke comple1/ and cannot detach itself fully from that. +his is still the major problem that neither the company nor the corporation have yet solved. It doesn5t matter how successful they are and it doesn5t matter how many battles against Coke they have won, the fact remains

that they have invested much energy and money and they still consider themselves S*C'7D ;*S+. N& P/&2&-%& '&/ -8( O-8(/ P()$%C& P/&0,+-$ epsi$Cola is much more than the caramel drink in a white, red and blue painted can, unfortunately people are not aware of that. It is true that customers drink and eat other epsiCo products, but how many of them can tell you that they are actually owned by epsiCoL &e believe very few really know it is epsiCo, or even was ac.uired by the corporation. +hey achieved great branding results with epsi$Cola, yet did not e1plore this area for the other products. A))/&!+8% . -8( N(? M!/C(-$

+his is another weak point in the company. +here is lot of discussion on possible strategies, but not enough results. If Coca$Cola isn5t the first one to enter the new market, then maybe epsi wouldn5t be seen as a -copy/. If epsiCo concentrated their efforts in promoting only epsi$Cola, perhaps they could see some results.

R(+#+"% . epsi$Cola as a company for a long time had a huge number of people and assets

focused bottling. *ven if this pushed them ahead of the pack, they still have the problem of recollecting the containers in order to reuse them. Since ecological awareness is increasing, a bad reputation could be imminent. +he best thing to do is to try to find some solution as soon as possible.

O))&/-, %-%($
NFL S)& $&/$8%) R%.8-$

,s was recently announced, epsiCo signed an agreement for sponsorship in the 74(, the largest football league in the DS. epsiCo will have great coverage at all games, enabling them to target their young and hip market.

U %-(0 A%/"% (F$ D/% C &' C8&%+( epsi$Cola bumped Coca$Cola as the drink of choice on Dnited ,irlines flights.

+his is a guaranteed cash$cow, whilst at the same time beating their main competitor.

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+he increasing si0e of the company demands a varied marketing program. , cookie$cutter approach will no longer work. +his in turn re.uires investment in capital and energy.

M!/C(- T8/(!-$ epsiCo ;everages now have to compete in an aggressive market. 7o longer is

Coca$Cola the only rival. Cott, Schweppes and Kraft are emerging as strong competition.

CONCLUSIONS AND RECOMMENDATIONS

CONCLUSION
'n the basis of the information gathered, following conclusions have been made"

+he Company invests huge amounts of money towards promotional activities. epsi Co have, during the last couple of decades, come up with the most innovative and impressive ways to attract consumers.

+he target group of epsi Co is the younger generation as it has been giving them good results for a long time.

+his corporation accounts for a large number of diverse competitive products. +he products of epsi$Cola are cheap and accessible to everyone and competitive prices have always been one of its strongest points.

 Despite all its efforts and battles epsi Co has won against Coke, the fact remains that they still consider themselves the second best.

RECOMMENDATIONS
,lthough the company has increased its net product sales, it is not a real increase because the sales have increased due to new ac.uisitions and not because of increased sales. +he following recommendations have been made"

3. epsiCo should consolidate its old products and try to increase sales. ;y doing this, epsiCo can concentrate more on the beverage and snack food

industries. +his would lead them to focus more on their core competencies. &ith regards epsi$Cola, the International ;everage sector it is advised that they concentrate on certain geographical areas. Instead of having one division based in 7ew 8ork, epsiCo ;everages International should separate into

several divisions for ,sia, *urope etc.

?. +he international market should be a key area that epsiCo focuses on in the future. It needs to enter the emerging markets before Coca$Cola in order epsi taste is the best.+his needs

to convince the consumers that the

resources and a good management structure in place.

H. It is believed that epsiCo should pursue the Chinese operation in an attempt to compete with Coca$Cola *nterprises. +he Chinese market, is one of the largest markets in the world for epsi$Cola. In order for epsiCo to compete with Coca$Cola *nterprises, they will be re.uired to compete in the global marketplace. 7evertheless epsiCo has been involved in many political

scandals at home and globally. It is suggested that epsiCo should pay more attention to cultural differences, locally and on a governmental level.

<. +he old age of epsi cola vOs Coca$cola has ended. epsi Co also needs to be aware of the other up$and comoing beverage companies, such as Cott. epsi Co succeeded in creating a successful company and a dominant place in the market, which is particularly outstanding due to the fact that they were against a company as important as Coca$cola.

BIBLIOGRAPHY

3. ?. H. <. C. B.

epsiCo Inc web site" www.pepsico.com, epsi,mericas web site" www.pepsiamericas.com epsiStore web site" www.pepsistore.com 8ahooO#arket guide web site" http"OObi0.yahoo.com +he Coca$Cola Company web site" www.coca$cola.com +he Cott web site" www.cott.com