In: Business and Management

Submitted By dellikado
Words 3312
Pages 14
Joson, Gerard Gio R.

Case analysis no. 11 – Pepsico’s Diversification Strategy In 2008
December 5, 2011

Pepsico is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products.

PepsiCo is a world leader in convenient foods and beverages, with revenues of about $25 billion and over 142,000 employees. The company consists of the snack business of Frito-Lay North America and the beverage and food businesses of PepsiCo Beverages and Foods, which includes PepsiCo Beverages North America (Pepsi-Cola North America and Gatorade/Tropicana North America) and Quaker Foods North America. PepsiCo International includes the snack businesses of Frito-Lay International and beverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly 200 countries and territories.

Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCo’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people.

Our mission is 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.

Company Highlights:

- IIR awards PepsiCo Strategic Insights with 2011 Marketing Research EXPLOR…...

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...How will the initiative affect sales PepsiCo is one of the largest billion-dollar food and beverage company that include several different product that generates more $1 billion in annual retail sales. PepsiCo has acquired several products such as snack foods, nuts, and juices. Therefore, these have given PepsiCo business opportunities to expand their sales to the international trade market. In additional these business opportunities come with different kind of risk factors in the product sales. For example, PepsiCo has commitment to offer consumer’s small portion sizes in their snacks foods. The sale impact of this small size snacks was decrease by 2%. PepsiCo is continually improving the nutrition contents and promoting their products so consumers can make healthy choices. In addition PepsiCo has launched different flavors beverages in Brazil, Mexico, and Asia. In Asia, the sale decreases because people strong prefer beverages that contain natural ingredients that contain pure sugar crane. In addition the excess inventory that the warehouse in Asia had impact on PepsiCo finances. PepsiCo response was reducing the sale prices of these flavored beverages and provides flavored beverages with pure sugar crane. Another initiative that affects the sales in PepsiCo was recycling bottles and the partnership with U.S.EPA’s Climate Leaders. The impact for producing bottles that contained 20% less plastic and being 10% smaller was working with suppliers to find suitable......

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