Final Project Report of Pepsico

Embed Size (px)

Citation preview

  • 7/29/2019 Final Project Report of Pepsico

    1/55

    1

    INTRODUCTION

    Modern age is full of competition. Today only way of success is your continuous efforts towards

    the growing market needs and in satisfying them. It is the marketer job to know what the market

    speaks i.e. the ever changing needs of the customer through market research & adopt them

    fruitfully. It is must for all the companies to make policies according to the customers and the

    govt. Today to succeed for any organization has to target its customer needs, to create a culture

    in the organization i.e. market conscious & responsive to customer needs.

    Soft drinks industry has become big business in India in recent years.

    The soft drink business underwent major change with the entry of PEPSI and re-entry of COCA-

    COLA in India in the late 80s when Parley with brands like Thumsup, Limca & Gold spot was a

    clear leader. Coca-Cola took up the product line of parley in 1993-94; today both brands are the

    Indians favorite soft drinks.

    PEPSICO. HEADQUARTERS

    Pepsico. Inc. World Headquarters is located in New York City. The seven-building headquarters

    complex was designed by Edward Durrell Stone, one of America's foremost architects. The

    building occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture

    Gardens, a world acclaimed sculpture collection in a garden setting.

    The collection of works is focused on major twentieth century art, and features works by masters

    such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti,

    Arnaldo Pomodoro and Claes Oldenberg. The gardens were originally designed by the world

    famous garden planner, Russell Page. The grounds are open to the public, and a visitor's booth is

    in operation during the spring and summer.

  • 7/29/2019 Final Project Report of Pepsico

    2/55

    2

    About PepsiCo

    History

    PepsiCo India Region: Leadership through Performance with Purpose

    PepsiCo entered India in 1989 and in a short period of 20 years has grown into the largest and

    one of the fastest growing food & beverage business in the country. PepsiCo Indias growth has

    been guided by PepsiCos global vision of Performance with Purpose. This means that while

    businesses maximize shareholder value, they have a responsibility to all the stakeholders

    including the communities in which they operate, the consumers they serve and the environment

    whose resources they use.

    Large investor: One of the largest US multinational investors in the country with an investment

    of over $1 billion, PepsiCo India provides direct and indirect employment to over 1,50,000

    people across the country. Its beverage and snack food business is supported by 36 beverage

    bottling plants, (13 company and 23 franchisee owned) and three food plants. PepsiCo Indias

    diverse portfolio includes iconic brands like Pepsi, Lays, Kurkure, Tropicana 100%, Gatorade,

    Quaker and young but immensely popular and fast growing brands such as Nimbooz and Aliva.

    No.1 food & beverage business in India: PepsiCo India has not only grown to become the

    countrys largest food and beverage business but has also become a powerful and consistent

    driver of PepsiCos global growth. Over the last two years, India's beverage and foods businesses

  • 7/29/2019 Final Project Report of Pepsico

    3/55

    3

    have been the largest volume growth contributors to PepsiCo across the globe. PepsiCo India has

    been frequently recognized for its industry-leading human resource practices, indovations,

    corporate values, and talent, and was one of the five top marketers of the country in 2009.

    A third of PepsiCo India's portfolio today comprises healthier products: PepsiCos portfolio

    reflects its commitment to nourish consumers with a diverse range of fun and healthy products,

    making the healthful choice an easier choice. As PepsiCo grows, the portfolio transformation

    will continue with a systematic plan to reduce added sugar, sodium and saturated fats in its

    products. Today, the portfolio includes several healthier treats like Quaker Oats, Tropicana

    juices, rehydrator Gatorade, Pepsi Max and Cheetos Whoosh. PepsiCo was the first in India to

    introduce the use of healthier oils for its snacks -- Lays Potato chips, Kurkure and Cheetos.

    Model partnership with over 22,000 farmers: PepsiCo has pioneered and established a model

    of partnership with farmers and now works with over 22,000 happy farmers across ten states.

    More than 45% of these are small and marginal farmers with a land holding of one acre or less.

    PepsiCo Indias farming program has improved their livelihoods and incomes by providing

    assured buy back of their produce at pre-agreed prices thus insulating them from open market

    price fluctuations. PepsiCo provides 360 degree support to the farmer through quality seeds,

    extension services, disease control packages, bank loans, weather insurance, and latest

    technological practices.

    Global leader in water conservation: In 2009, PepsiCo India achieved a significant milestone,

    by becoming the first business in the PepsiCo system to achieve Positive Water Balance

    (PWB). This means that it replenishes more water than it consumes in its manufacturing

    operations. This has been validated by Deloitte Consulting. PepsiCo is leading a pioneering

    initiative to replace transplanting of paddy with direct seeding technology which has helped

    reduce water consumption in paddy cultivation by over 30% and has also cut down GHG

    emissions by 75%. In 2010, PepsiCo India saved 10.1 billion litres of water through various

    initiatives. For water related environment initiatives, PepsiCo India has received numerous

    awards such as CII National award for water management, Water Digest award for water

    practices and Golden Peacock award for water conservation among others.

  • 7/29/2019 Final Project Report of Pepsico

    4/55

    4

    Care for the environment: Following its success in water conservation, the company is now

    focused on reducing its carbon footprint. Nearly 30% of its energy is today generated from

    renewable sources such as rice husk boilers and wind turbines. Initiatives such as agriculture

    waste boilers in our plants, installation of wind turbines, reduction of use of chemicals, reductionin weight of packaging and film used in product packaging, reduction in weight of metal

    crowns/polypropylene caps for plastic bottles, conversion of potato waste into bio gas help

    reduce load on the environment. PepsiCo India also partners NGOs and local administrations in

    three states of India to recycle household solid waste in an endeavor to keep cities clean. Its

    award-winning "waste to wealth" recycling program reaches 450,000 families.

    Exemplary employment practices: PepsiCo India believes in providing employment and

    growth opportunities to local talent. Its College of Leadership, ensures early identification of

    talent, and employees focused development through critical experiences. PepsiCo strongly

    believes in Winning with Diversity and Inclusion. PepsiCo has been offering employment to

    women employees at the same employment terms and equal growth opportunities as men. Today

    women comprise more than 25% of the companys leadership team in India. PepsiCo India

    currently employs over 100 differently-abled people and has won the prestigious Hellen Keller

    award from the National Centre for Promotion of Employment for Disabled People (NCPEDP).

  • 7/29/2019 Final Project Report of Pepsico

    5/55

    5

    Mission and Vision

    Mission

    Our mission is to be the world's premier consumer products company focused on convenient

    foods and beverages. We seek to produce financial rewards to investors even 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

    PepsiCo's responsibility is to continually improve all aspects of the world in which we operate

    environmental, social, economiccreating a better tomorrow than today.

    Our vision is put into action through programmes and a focus on environmental stewardship,

    activities to benefit society and a commitment to build shareholder value by making PepsiCo a

    truly sustainable company.

    Performance with Purpose

    At PepsiCo, we're committed to achieving business and financial success while leaving a

    positive imprint on societydelivering what we call Performance with Purpose.

  • 7/29/2019 Final Project Report of Pepsico

    6/55

    6

    Our approach to superior financial performance is straightforwarddrive shareholder value. By

    addressing social and environmental issues, we also deliver on our purpose agenda, which

    consists of human, environmental, and talent sustainability.

    PepsiCo Values & Philosophy

    Values and philosophy are a reflection of the socially and environmentally responsible

    company we aspire to be. They are the foundation for every business decision we make.

    Commitment

    We are committed to delivering sustained growth through empowered people acting responsibly

    and building trust.

    What it Means

    Sustained Growth is fundamental to motivating and measuring our success. Our quest forsustained growth stimulates innovation, places a value on results and helps us understand

    whether today's actions will contribute to our future. It is about the growth of people and

    company performance. It prioritizes both making a difference and getting things done.

  • 7/29/2019 Final Project Report of Pepsico

    7/55

    7

    Empowered People means we have the freedom to act and think in ways that we feel will get

    the job done, while adhering to processes that ensure proper governance and being mindful of

    company needs beyond our own.

    Responsibility and Trust form the foundation for healthy growth. We hold ourselves both

    personally and corporately accountable for everything we do. We earn the confidence others

    place in us as individuals and as a company. By acting as good stewards of the resources

    entrusted to us, we strengthen that trust by delivering on our promises and remaining committed

    to succeeding together.

    Guiding Principles

    We uphold our commitment with six guiding principles. We must always strive to:

    1. Care for customers, consumers and the world we live in.

    We are driven by the competitive spirit of the marketplace, but we direct this spirit toward

    solutions that benefit both our company and our constituents. Our success depends on a thorough

    understanding of our customers, consumers and communities. To foster this spirit of generosity,

    we go the extra mile to show we care.

    2. Sell only products we can be proud of.

    The true test of our standards is that we are able, without reservation, to consume and personally

    endorse the products we sell. Our absolute endorsement extends to every part of the business,

    from the purchase of ingredients to the point where our products reach consumers.

    3. Speak with truth and candour.

  • 7/29/2019 Final Project Report of Pepsico

    8/55

    8

    We tell the whole story, not just what is convenient to our individual goals. In addition to being

    clear, honest and accurate, we take responsibility for ensuring that our communications are

    understood.

    4. Balance the short term and long term.

    In every decision, we weigh both short-term and long-term risks and benefits. Maintaining this

    balance helps sustain our growth and ensures that our ideas and solutions are relevant both now

    and in the future.

    5. Win with diversity and inclusion.

    We embrace people with diverse backgrounds, traits and ways of thinking. Our diversity brings

    new perspectives into the workplace and encourages innovation, helps us identify new market

    opportunities, develop new products and sustain our commitment to growth through empowered

    people.

    6. Respect others and succeed together.

    We depend on people who can work together, whether in structured teams or through informal

    collaboration. Mutual success depends on mutual respect, for both those within and outside the

    company. While our company is built on individual excellence, the value we attach to teamwork

    and mutual respect turns our goals into accomplishments.

  • 7/29/2019 Final Project Report of Pepsico

    9/55

    9

    Worldwide Code of Conduct

    PepsiCo is committed to 'Performance with Purpose'. Simply put, this means doing business the

    right way: operating responsibly with integrity and with high ethical standards.

    Our Worldwide Code of Conduct embodies those principles. It is PepsiCo's statement of how we

    expect our employees to do business. The Code of Conduct provides guidance for dealing with

    other employees, customers, suppliers, our shareholders, the public and our competitors in an

    ethical and appropriate manner.

    The Code of Conduct, by its very nature, cannot describe every possible situation that our

    employees may experience. What it does provide is the foundation for the Purpose behind ourPerformance.

    Our Worldwide Code of Conduct is available is 34 languages and can be found here.

    Our Code is a blueprint for living our Values.

    Our Code reflects our commitment to protecting Human Rights.

    We encourage all employees, vendors, contractors and customers to speak up about businesssituations that might conflict with the Code.

  • 7/29/2019 Final Project Report of Pepsico

    10/55

    10

    Letter from Indra Nooyi

    Dear Fellow Stakeholders,

    In 2009, PepsiCo made a promise. For the next 10 years, we promised to deliver

    sustainable growth by investing in a healthier future for our consumers, our planet, our associates

    and external partners and the communities we serve.

    This promise is the cornerstone of our 'Performance with Purpose' mission: our belief that our

    financial success Performance must go hand-in-hand with our social and environmental

    responsibilities our Purpose. We call this 'The Promise of PepsiCo', a manifesto that includes

    ambitious global goals 47 commitments in all that will guide our company this decade.

    As the world's second-largest food and beverage business, we have a responsibility to help

    devise solutions to key global challenges where we can have the most impact. We categorize

    these responsibilities in three distinct areas: Human Sustainability addressing diverse and

    complex global nutrition needs; Environmental Sustainability being a good steward of our

    planet's natural resources; and Talent Sustainability creating meaningful employment

    opportunities in the communities where we operate and developing our associates while fostering

    a diverse and inclusive workplace.

  • 7/29/2019 Final Project Report of Pepsico

    11/55

    11

    Our strategy for long-term growth is an integral part of our 'Performance with Purpose' mission.

    In fact, we design our business plans to ensure that the work we do and the investments we make

    have a positive impact on society that's why our 2009 corporate citizenship report is titled

    Performance with Purpose: Investing in Sustainable Growth.

    Challenging economic times are still ahead, but we will not reduce our commitment to

    responsible business, and we are taking action to ensure sustainable, profitable growth across all

    our businesses. Despite many challenges, we see enormous opportunity for continued growth.

    One way is through the game-changing merger transaction with our two anchor bottlers. This

    merger allows us to create a lean, agile organization with an optimized supply chain, a flexible

    go-to-market system and enhanced innovation capabilities. Another critical path to growth is to

    continue to expand our R&D capabilities and increase investments to develop more nutritious

    products that taste great and add positive nutrition such as fiber, vitamins and calcium, among

    other benefits.

    Our 'Performance with Purpose' mission guides the way we conduct ourselves as we continue to

    seek valuable counsel from key external stakeholders like Ceres, the Carbon Trust and global

    experts in the nutrition, science and global health policy communities. Together, these actions

    will help us maintain our long-term commitment to the overall sustainability of our company.

    Human Sustainability

    As the world's nutrition needs continue to evolve, we are committed to encouraging people to

    live healthier by offering a portfolio of both enjoyable and wholesome foods and beverages.

    We're adding more whole grains, nuts, fruits and vegetables while reducing added sugars,

    lowering sodium and saturated fat levels and moving to heart-healthier oils and natural

    sweeteners. We're also embarking on many initiatives to improve calorie labeling, support

    nutrition education, bring physical education to schools and feed malnourished people in lower-

    income communities. Our R&D investment has increased by more than 40 percent over three

    years, helping us step across industry boundaries to address core challenges to make our products

    more nutritious.

  • 7/29/2019 Final Project Report of Pepsico

    12/55

    12

    Environmental Sustainability

    While we continue to make great strides on our portfolio transformation, we are also committed

    to improving the environmental profile of our operations worldwide. Most recently, we opened a

    facility in Chongqing, China, that is designed to use 22 percent less water and 23 percent less

    energy than our existing in-country facilities. In the U.S., our Frito-Lay business developed a

    fully compostable bag for our SunChips multigrain snacks, and the facility in Arizona that

    produces these snacks just received the Environmental Contribution of the Year award at the

    2010 Global Water Awards. One of our goals is to achieve positive water balance across all our

    businesses. For every liter we use, we intend to return one to the Earth. Sound impossible? We

    already did it across our India beverage operations. And India is just one step in our journey.

    Talent Sustainability

    Another crucial element of our promise is our commitment to invest in our associates so they can

    succeed and develop the skills needed to drive our sustainable growth. To advance these

    imperatives, we have made our training and development regimen more robust, providing

    additional experiential learning to build leadership skills and functional capabilities across our

    businesses. Our efforts have earned external recognition in key talent and workplace rankings,

    including Fortune magazine's 'Top Companies for Leaders' list in 2009. We also remain

    committed to strengthening a diverse, inclusive and empowering workplace culture in which all

    our associates can thrive while helping to raise standards of living in the communities in which

    we operate. We are proud of the progress we continue to make, including increasing the number

    of women in management globally, reducing diversity turnover and creating thousands of new

    jobs in growing markets.

    Conclusion

    We've made significant progress toward sustainable growth over the past several years, and as

    we continue to carry out our 'Performance with Purpose' mission, we are poised to deliver on the

    'Promise of PepsiCo'. I look forward to a continued legacy of solid performance, and I'm

  • 7/29/2019 Final Project Report of Pepsico

    13/55

    13

    confident our focus on sustainable growth will go a long way to assuring PepsiCo thrives for

    decades to come.

    Indra K. Nooyi

    Chairman and Chief Executive Officer

  • 7/29/2019 Final Project Report of Pepsico

    14/55

    14

    INDUSTRY PROFILE (INDIA)

    Indra K. Nooyi

    Chairman and Chief

    Executive Officer,

    Indra Nooyi is Chairman and Chief Executive Officer of PepsiCo, which has

    the world's largest portfolio of billion-dollar food and beverage brands,

    including 19 different product lines that each generate more than $1 billion

    in annual retail sales. PepsiCo's main businesses - Frito-Lay, Quaker, Pepsi-

    Cola, Tropicana and Gatorade - make hundreds of nourishing foods and

    beverages that bring joy to consumers in more than 200 countries. With

    nearly $60 billion in revenue, PepsiCo employs 285,000 people worldwide.

    Mrs. Nooyi was named President and CEO on October 1, 2006 and assumed

    the role of Chairman on May 2, 2007. She has directed the company's global

    strategy for more than a decade and led its restructuring, including the

    divestiture of its restaurants into the successful YUM! Brands, Inc., the

    acquisition of Tropicana and the merger with Quaker Oats that brought the

    vital Quaker and Gatorade businesses to PepsiCo and the merger with

    PepsiCo's anchor bottlers.

    Zein Abdalla

    Chief Executive Officer,

    PepsiCo Europe:-

    Zein Abdalla is chief executive officer of PepsiCo Europe. PepsiCo owns the

    worlds largest portfolio of billion-dollar food and beverage brands,

    including 19 different product lines, each of which generates more than $1

    billion in annual retail sales each. PepsiCos main businesses Quaker,

    Tropicana, Gatorade,Frito-Lay, and Pepsi Colaalso make hund`reds of

    other enjoyable and wholesome foods and beverages that are respected

    household names throughout the world.

    Education:

    . BSc (Hons.), (Electrical Engineering), Imperial College, London

    University,

    London

  • 7/29/2019 Final Project Report of Pepsico

    15/55

    15

    John Compton Chief

    Executive Officer

    PepsiCo Americas Foods

    John Compton is chief executive officer of PepsiCo Americas Foods.

    PepsiCo owns the worlds largest portfolio of billion-dollar food and

    beverage brands, including 19 different product lines, each of which

    generates more than $1 billion in annual retail sales each. Compton assumed

    this role in November 2007, and is responsible for overseeing PepsiCo

    Americas Foods (PAF), which has a food and snack portfolio including

    Frito-Lay North America, Quaker Foods and all of our PepsiCos Latin

    American food businesses including Sabritas and the Gamesa business in

    Mexico. PAF, comprised of 130,000 associates, reported $22 billion in

    revenues in 2010 making it the largest sector of PepsiCos four business

    units. In addition, Compton has responsibility for PepsiCos Power of One

    Retail Sales teams.

    Eric Foss Chief Executive

    Officer Pepsi Beverages

    Company

    Eric J. Foss is Chief Executive Officer of Pepsi Beverages Company (PBC),which represents 75 percent of PepsiCo's beverage business in the U.S.,

    Canada and Mexico. Prior to the merger of Pepsi Bottling Group (PBG)

    with PepsiCo, Eric served as PBG's Chairman and CEO, having been

    named CEO and elected to the PBG Board of Directors in July 2006 and

    elevated to PBG's Chairman in October 2008.Mr. Foss served as PBGs

    Chief Operating Officer from September 2005 to July

    2006. He was named President, PBG North America in 2001 and, prior,

    served as Executive Vice President and General Manager of PBG North

    America beginning in 2000. Mr. Foss joined Pepsi-Cola Company in 1982

    and held a variety of positions with

  • 7/29/2019 Final Project Report of Pepsico

    16/55

    16

    Performance with Purpose

    At PepsiCo, 'Performance with Purpose' means delivering sustainable growth by

    investing in a healthier future for people and our planet.

    As a global food and beverage company with brands that stand for quality and are respected

    household names Pepsi, Frito-Lay, Quaker Oats, Tropicana and Gatorade to name a few

    we will continue to build a portfolio of enjoyable and wholesome foods and beverages; find

    innovative ways to reduce the use of energy, water and packaging; and provide a great workplace

    for our employees. Additionally, we will respect, support and invest in the local communities

    where we operate by hiring local people, creating products designed for local tastes and

    partnering with local farmers, governments and community groups. Because a healthier future

    for all people and our planet means a more successful future for PepsiCo. This is our promise.

    Performance

    To all of our investors, it's a promise to strive to deliver superior, sustainable financial

    performance.

    Human Sustainability

    It's a promise to encourage people to live healthier by offering a portfolio of both enjoyable and

    wholesome foods and beverages.

    Global goals include:

  • 7/29/2019 Final Project Report of Pepsico

    17/55

    17

    Increasing global revenues derived from nutritious products from the present US$ 10billion to US$ 30 billion in the next decade or so.

    Increasing the whole grains, fruits and vegetables, nuts, seeds and low-fat dairy in itsproduct portfolio.

    Reducing the average sodium per serving in key global food brands in key markets by 25percent by 2015.

    Reducing the average saturated fat per serving in key global food brands in key marketsby 15 percent by 2020.

    Reducing the average added sugar per serving in key global beverage brands in keymarkets by 25 percent by 2020.

    PepsiCo India has been at the forefront of leading the human sustainability agenda and some of

    the initiatives include:

    The decision to eliminate the direct sale of full-sugar soft drinks to primary andsecondary schools around the globe by 2012.

    Frito Lay's core products, Lay's, Kurkure, Uncle Chipps and Cheetos are cooked in RiceBran Oil to significantly reduce the saturated fat in these brands by 40%.

    Frito Lay's products are MSG and trans-fat free and contain voluntary on pack nutritionallabeling.

    Breakfast cereal, Quaker Oats, is rich in soluble fibre, beta-glucan, Vitamin B complexand helps in lowering cholesterol.

    The new Lay's Classic Salted has been launched with 25 percent less sodium. Lehar Gluco+ is a lemon-flavored drink with glucose, electrolytes and iron that provides

    instant energy and refreshment to consumers.

  • 7/29/2019 Final Project Report of Pepsico

    18/55

    18

    Tropicana 100 % juice range provides essential nutrition and vitamins. PepsiCo offers products with zero or reduced calories such as Diet Pepsi, Pepsi Max and

    Aquafina packaged water and bulk water.

    Products with reduced sugar or calories such as Diet Pepsi, Pepsi Max and 7UP light.

    Gatorade, the worlds leading sports drink, has valuable re-hydration benefits and isscientifically formulated to quench thirst, replace fluids and electrolytes and provide

    carbohydrate energy.

    Most of PepsiCo's products are available in a range of packages so consumers can selecta size suited to particular occasions and dietary needs.

    Lehar Iron Chusti is an extruded snack and a sweet biscuit that are richly fortified byEDTA iron delivering 25 percent of the RDA of iron and 50 percent RDA of Vitamin B1

    B12 and folate each. The products are made with wholesome local ingredients like

    grains, peanuts and jaggery.

    Aquafina packaged water

    'Mission to Make India Heart Healthy'

    Quaker Oats in association with The Times of India and Apollo Hospitals has started'Mission to Make India Heart Healthy'.

    The aim of the Heart Health Mission is to make Indians heart healthy by raisingawareness about their risk of heart disease. The intention is not to alarm but to forewarn

    people so that they make timely and habitual interventions.

    The Mission encourages people to undergo an online heart health check-up onwww.goodmorningheart.com,The site had seen more than 3 lakh people participate till

    the end of March 2011.

    As part of the mission, Quaker Oats partnered with Chennai Police and Kochi Police. Thepolice force is at a high risk of heart disease as its personnel lead a very stressful lifestyle,

    with irregular work timings and diet schedules. The engagement with Quaker Oats

    included an online health check-up, personalized diet counseling by nutritionists, and a

    Quaker Oats Heart Healthy breakfast for all police personnel.

    http://www.goodmorningheart.com/http://www.goodmorningheart.com/http://www.goodmorningheart.com/
  • 7/29/2019 Final Project Report of Pepsico

    19/55

    19

    Healthy Kids

    PepsiCos Get Active Programmed for Children has seen robust growth and implementation.

    Designed and supported by the PepsiCo Health and Wellness team, the programmes have been

    implemented in schools in collaboration with prominent NGOs, Hriday, Swashrit and the Indian

    Medical Association.

    The central objective of Get Active programmes is: to build awareness among school

    children on the importance of balanced nutrition and regular physical activity for a healthy

    lifestyle.

    Beginning with a Breakfast Makes Me Smart module in 2008 that emphasized the

    importance of a healthy breakfast, and launching a My Pyramid module in April 2009, Get

    Active school programmes promote an understanding of nutrition through active engagement.

  • 7/29/2019 Final Project Report of Pepsico

    20/55

    20

    Get Active believes in combining simplicity with pleasure. The basic principle is simple.

    Calories In = Calories Out.

    Till date, Get Active program has reached over 1 million children in 477 schools across 12 cities

    in India.

    Human Rights Workplace Policy

    Our Human Rights Workplace Policy serves to create and enforce mutual respect for the dignity

    of our people throughout our organization.

    PepsiCo respects the dignity of our workers in the workplace and we work to ensure our

    associates rights to personal security, a safe, clean and healthful workplace, and freedom from

    harassment or abuse of any kind.

    We deal fairly and honestly with our associates regarding wages, benefits and other conditions of

    employment, and recognize our associates right to freedom of association. We do not use

    compulsory or child labour.

    We do not tolerate discrimination and work to ensure equal opportunity for all associates.

    We comply with all applicable laws, regulations, and other employment standards, wherever we

    operate or work.

    We encourage our partners, suppliers, contractors and vendors to support these policies and we

    place substantial value on working with others who share our commitment to human rights.

  • 7/29/2019 Final Project Report of Pepsico

    21/55

    21

    Environmental Sustainability

    To the planet we all share

    It is a promise to be a good citizen of the world, protecting the Earth's natural resources through

    innovation and more efficient use of land, energy, water and packaging in our operations.

    Our business focuses on sustainable growth and relies on the Earth's natural resources every day.

    As our business grows in developed, developing and emerging countries, we remain committed

    to minimizing the impact it has on the environment. We strive to use only methods and tools that

    are scientifically proven, socially responsible and economically sound.

    In India, we operate three ongoing initiatives to better the environment. These are closely linked

    to our business and are areas in which we believe we can make a very positive impact.

    Our initiative to replenish water has been a major success. 2009 was a milestone for uswe were able to achieve a positive water balance, giving back more water than we

    consumed through our various initiatives of recharging, replenishing and reusing water.

    Our efforts to convert waste to wealth have been very fruitful. We have educatedcommunity members on how to segregate and recycle their waste. In a project employing

  • 7/29/2019 Final Project Report of Pepsico

    22/55

    22

    over 500 people, we transform bio-degradable waste into organic manure through vermi-

    culture.

    We have also partnered with farmers across the country to help them boost theirproductivity and income. We have pioneered contract farming, developed robust, high-quality potato seeds, arranged for farmer loans, and aided citrus growers in a variety of

    ways.

    Goals and Commitments

    In 2009, we announced 15 global goals and commitments to guide our work to protect the Earth's

    natural resources through innovation and more efficient use of land, energy, water and packaging

    in our operations. We are focusing our work where we can make the most positive impact (water,

    packaging, climate change and agriculture) and on key policies and partnerships to help provide

    solutions to address the world's environmental challenges.

    Water: Respect the human right to water through world-class efficiency in our operations,

    preserving water resources and enabling access to safe water

    Improve our water use efficiency by 20 percent per unit of production by 2015. Strive for positive water balance in our operations in water-distressed areas. Provide access to safe water to 3 million people in developing countries by the end of

    2015.

    Land and Packaging: Rethink the way we grow, source, create, package and deliver our

    products to minimize our impact on land

    Continue to lead the industry by incorporating at least 10 percent recycled polyethyleneterephthalate (rPET) in our primary soft drink containers in the US, and broadly expand

    the use of rPET across key international markets.

    Reduce packaging weight by 350 million pounds, avoiding the creation of 1 billionpounds of landfill waste by 2012.

    Work to eliminate all solid waste to landfills from our production facilities.

  • 7/29/2019 Final Project Report of Pepsico

    23/55

    23

    Climate Change: Reduce the carbon footprint of our operations

    Improve our electricity use efficiency by 20 percent per unit of production by 2015. Reduce our fuel use intensity by 25 percent per unit of production by 2015. Commit to an absolute reduction in GHG emissions across global operations.

    Community: Respect and responsibly use natural resources in our businesses and in the

    local communities we serve

    Apply proven sustainable agricultural practices on our farmed land. Provide funding, technical support and training to local farmers. Promote environmental education and best practices among our associates and business

    partners.

    Integrate our policies and actions on human health, agriculture and the environment tomake sure they support each other.

    Partnership with Farmers

    At PepsiCo India, we see ourselves as an agriculture company. Since our entry into India in

    1989, we have worked closely with farmers to help improve both their livelihoods and

    agricultural yield. Our journey began with our successful introduction of a high-yielding variety

  • 7/29/2019 Final Project Report of Pepsico

    24/55

    24

    of tomato, and we went on to help paddy farmers increase their crop. Today our ventures into

    crop diversification and the farming of high-quality potatoes and other edibles have transformed

    the lives of thousands of Indian farmers.

    We continue to strengthen our partnerships with farmers across the country to boost their

    productivity and income. We plan to strengthen farmer connect from 21,000 in 2009 to 50,000

    by 2012.

    HELPING FARMERS IMPROVE YIELD AND INCOME

    The companys vision is to create a cost-effective, localized agri-supply chain for its business by:

    Building PepsiCos stature as a development partner by helping farmers grow more and earnmore.

    Introducing new high-yielding varieties of potato and other edibles. Introducing sustainable farming methods and practicing contact farming. Making world-class agricultural practices available to farmers and helping them raise farm

    productivity.

    Working closely with farmers and state governments to improve agri-sustainability and cropdiversification.

    Providing customized solutions to suit specific geographies and locations. Facilitating financial and insurance services in order to de-risk farming.

    THE JOURNEY SO FAR

    Where we stand today, at a glimpse

    Today PepsiCo Indias potato farming programme reaches out to more than 12,000 farmerfamilies across six states. We provide farmers with superior seeds, timely agricultural inputs and

    supply of agricultural implements free of charge.

    We have an assured buy-back mechanism at a prefixed rate with farmers. This insulates themfrom market price fluctuations.

    Through our tie-up with State Bank of India, we help farmers get credit at a lower rate of interest. We have arranged weather insurance for farmers through our tie-up with ICICI Lombard.

  • 7/29/2019 Final Project Report of Pepsico

    25/55

    25

    We have a retention ratio of over 90%, which reveals the depth and success of our partnership. In 2010, our contract farmers in West Bengal registered a phenomenal 100% growth in crop

    output, creating in a huge increase in farm income.

    The remarkable growth has resulted in farmers receiving a profit between Rs. 20,00040,000 peracre, as compared to Rs. 1000020,000 per acre in 2009.

    Contact farming

    PepsiCo pioneered contact farming in India in 1989, when in order to improve the performance

    of a tomato processing plant in Punjab, it imported and tested high-yielding varieties that thrived

    best in India. Consequently, yield improved by over 300% and the length of the tomato season

    more than doubled, resulting in a substantial increase of farmer incomes. Today, the success of

    contact farming has spread and PepsiCo engages with over 22,000 farmers across the country to

    grow a variety of crops. Through this partnership, PepsiCo has transformed the lives of

    thousands of farmers by helping them refine their farming techniques and raise farm

    productivity.

    Our high-quality seed programme

    In order to provide our farmers the best quality potato seeds, PepsiCo collaborated with theThapar Institute of Technology to develop quality potato mini-tubers.

    PepsiCo has also invested in a world-class potato mini-tuber facility at Zahura in Punjab whichhelps getting robust and disease-free seeds to our companys contact farmers.

    Potato farming

    PepsiCo India has introduced world-class, top-quality, high-yielding potato varieties. High-yielding potato seeds have allowed farmers to produce world-class potatoes and obtain

    higher returns.

    We have partnered with more than 11,000 farmers working across Punjab, Uttar Pradesh,Karnataka, Bihar, West Bengal, Gujarat and Maharashtra for the supply of world-class chip-grade

    potatoes.

  • 7/29/2019 Final Project Report of Pepsico

    26/55

    26

    We have partnered with State Bank of India to get soft loans to all our contact farmers, thusreducing their cost of cultivation and saving them from the clutches of moneylenders (higher

    interest rates).

    Replenishing Water

    Conserving the world's most precious asset: Water

    PepsiCo India has pioneered several major initiatives to replenish water in communities. Our

    goal is to conserve, replenish and thus offset the water used in our manufacturing process

    through community water recharge projects and water conservation projects in agriculture.

    2009 was a year of immense pride and joy for PepsiCo India. We were able to give back more

    water than we consumed through our various initiatives of recharging, replenishing and reusing

    water.

  • 7/29/2019 Final Project Report of Pepsico

    27/55

    27

    Waste to Wealth

    PepsiCo Solid Waste Management Programme

    PepsiCo India continues to strengthen its Solid Waste Management initiatives in partnership withExnora, an environmental NGO. This award-winning, income-generating partnership provides a

    clean environment to more than 450,000 people across Pammal, Chennai, Nagapattinam,

    Tenkasi and Cuddalore in Tamil Nadu, Sangareddy in Andhra Pradesh and Panipat, Haryana.

    A unique income-generating partnership with leading environmental NGO, Exnora, a pioneer inwaste management.

    Community members enjoy the benefits of a clean environment and are educated on how torecycle waste, not just relocate it.

    Households segregate their bio-degradable waste from their recyclable waste, and the programmerecycles 85 percent of household garbage. Bio-degradable waste is converted into organic manure

    through the process of vermi-culture. This project provides livelihood to more than 500 comunity

    members.

    Recyclable waste such as PET and plastics, waste paper and tetra packs are recycled. The community awareness programme includes door-to-door campaigns and street plays to

    motivate people to segregate organic and inorganic garbage at source to enable recycling.

    Every aspect of the programme is built around community and government participation to helpthe programme evolve into a self-sustaining model.

    The initiative recycled nearly 30,000 tons of solid waste in 2010 that would have otherwise beenrelocated to landfills.

  • 7/29/2019 Final Project Report of Pepsico

    28/55

    28

    Awards

    The unique PepsiCoExnora initiative in Pammal was awarded the environmental GoldenPeacock Award for Innovation in 2006.

    The Zero Solid Waste Centre in Pammal was recognized as a model project by UNICEF in 2007. PepsiCoExnora Waste to Wealth programme won the BSE NASSCOM Social and Corporate

    Governance Award 2008.

    Talent Sustainability

    To the employees of PepsiCo

    It is a promise to invest in them to help them succeed, to work continually to develop and retain

    exceptional people and to create employment opportunities in the communities we serve.

    As PepsiCo continues its journey of sustainable growth, we must continue to hire, retain and

    develop our leadership bench and a highly skilled and diverse workforce. After all, our

    employees are our greatest strength.

    We have an extraordinary talent base across our organization in our manufacturing facilities,

    our sales and distribution organization, our marketing groups, our staff functions and our general

    managers.

  • 7/29/2019 Final Project Report of Pepsico

    29/55

    29

    As we expand our business, we are heightening our focus on ensuring that we maintain an

    inclusive environment and develop the careers of our employees. Our goal is to continue to have

    the leadership talent, capabilities and experience necessary to grow our business well into the

    future.

    Goals and Commitments

    In 2009, we announced 12 new goals and commitments to achieve Talent Sustainability. These

    reinforce our promise to develop our employees. Our commitments include enabling our

    associates to thrive in a diverse, inclusive culture; providing a safe and empowering workplace;

    providing opportunities that strengthen our associates' skills and capabilities; and contributing to

    better living standards in the communities we serve.

    Culture: Enable our people to thrive by providing a supportive and empowering

    workplace.

    Ensure high levels of employee engagement and satisfaction as compared with otherFortune 500 companies.

    Foster diversity and inclusion by developing a workforce that reflects local communities. Encourage our employees to lead healthier lives by offering workplace wellness

    programmes.

    Ensure a safe workplace by continuing to reduce Lost-Time Injury Rates while striving toimprove other occupational health and safety metrics through best practices.

    Support ethical and legal compliance through annual training in our Code of Conduct,which outlines PepsiCo's unwavering commitment to its human rights policy, including

    treating every employee with dignity and respect.

    Career: Provide opportunities that strengthen our employees' skills and capabilities to

    drive sustainable growth.

    Become universally recognized through top rankings as one of the best companies in theworld for leadership development.

  • 7/29/2019 Final Project Report of Pepsico

    30/55

    30

    Create a work environment in which employees know that their skills, talents andinterests can fully develop.

    Conduct training for employees from the frontline to senior management, in order toensure that employees have the knowledge and skills required to achieve performancegoals.

    Community: Contribute to better living standards in the communities we serve.

    Create local jobs by expanding operations in developing countries. Support education through PepsiCo Foundation grants. Support associate volunteerism and community involvement through company-sponsored

    programmes and initiatives.

    At PepsiCo, Performance with Purpose means delivering sustainable growth by investing in a

    healthier future for people and our planet. As a global food and beverage company with brands

    that stand for quality and are respected household names Quaker Oats, Tropicana, Gatorade,

    Lay's and Pepsi-Cola, to name a few we will continue to build a portfolio of enjoyable and

    wholesome foods and beverages, find innovative ways to reduce the use of energy, water and

    packaging, and provide a great workplace for our employees. Additionally, we will respect,

    support and invest in the local communities where we operate, by hiring local people, creating

    products designed for local tastes and partnering with local farmers, governments and

    community groups. Because a healthier future for all people and our planet means a more

    successful future for PepsiCo. This is our promise.

    What is the Promise of PepsiCo

    At PepsiCo, Performance with Purpose means delivering sustainable growth by investing in a

    healthier future for people and our planet. As a global food and beverage company with brands

    that stand for quality and are respected household namesQuaker Oats, Tropicana, Gatorade,

    Lay's and Pepsi-Cola, to name a fewwe will continue to build a portfolio of enjoyable and

  • 7/29/2019 Final Project Report of Pepsico

    31/55

    31

    wholesome foods and beverages, find innovative ways to reduce the use of energy, water and

    packaging, and provide a great workplace for our associates. Additionally, we will respect,

    support and invest in the local communities where we operate, by hiring local people, creating

    products designed for local tastes and partnering with local farmers, governments andcommunity groups. Because a healthier future for all people and our planet means a more

    successful future for PepsiCo. This is our promise.

  • 7/29/2019 Final Project Report of Pepsico

    32/55

    32

    PepsiCo Foundation

    PepsiCo Foundation activities in India

    PepsiCo's philanthropic anchor, PepsiCo Foundation is committed to developing sustainable

    partnerships and programmes that provide opportunities for improved health and inclusion and a

    better environment.

    The total funding for India has been $11mn (200810) The programmes have benefited more than 300,000 people in nine States of India

    The foundation supports projects in the following focus areas:

    Health: Food security; Improved and optimum nutrition;

    Energy balance

    Health Alliance

    Project: This research project focuses on reducing chronic diseases by promoting healthy diets

    and physical activity and controlling tobacco use. The project is being implemented through

    integrated interventions to drive policy and environmental changes.

    Impact: Lower rates of obesity and chronic diseases (cardiovascular problems and diabetes).

    Reach: 12,000 people in Kerala.

    India grant: $1.13mn during 200710.

  • 7/29/2019 Final Project Report of Pepsico

    33/55

    33

    Save the Children

    Project: The project catalyzes community-based interventions to deliver integrated health and

    nutrition solutions to children under 5, young mothers and pregnant and lactating women. Save

    the Children works with community health educators to provide families important information

    about health, nutrition, water, sanitation and hygiene.

    Reach: 100,000 people in Rajasthan. (The project reaches 50,000 beneficiaries including

    children under 5, young mothers and pregnant and lactating women through health and nutrition

    interventions. It reaches another 50,000 people through water and sanitation initiatives.

    India grant: $4.4mn during 200911.

    Environment: Water security; Sustainable agriculture;

    Adaptive approaches to our changing climate

    Earth Institute at Columbia University

    Project: The project tests methods that deliver 'more crop per drop'. This approach focuses on

    water security through water harvesting, recharging, watershed management and innovative

    irrigation practices. It is envisaged that the project will empower private and public communities

    with practical new methods to use water more efficiently both now and in the future. The project

    is developing research, tools, and strategies to improve agricultural income and water usethrough policy reform and private sector contributions to the agricultural value chain in terms of

    market development, technology transfer and risk management.

    Reach: 500 farmers across Punjab and Gujarat.

  • 7/29/2019 Final Project Report of Pepsico

    34/55

    34

    India grant: $1.15mn during 200810.

    Safe Water Network

    Project: This project focuses on providing affordable potable water at the community level by

    harvesting rainwater, installing small water village kiosk purification systems and building

    cisterns and community tanks.

    Reach: 55,000 people across Rajasthan and Andhra Pradesh.

    India grant: $1.1mn during 2008

    Water.org

    Project: The project acts as a catalyst to introduce microfinance to the water and sanitation

    sector and provides household water connections and toilets.

    Reach: 150,000 people in Tamil Nadu, Karnataka, Andhra Pradesh, Orissa and Maharashtra.

    Water.org is one of the Foundation's largest partnerships in terms of reach.

    India grant: $3.64mm during 200810.

  • 7/29/2019 Final Project Report of Pepsico

    35/55

    35

    Brands

    Our goal is to nourish consumers with a range of products that deliver great taste, convenience

    and affordability, from simple treats to healthy offerings.

    Foods

    PepsiCos foods division Frito-Lay is the leader in the branded salty snack market. All its

    products are free of trans-fat and MSG. It manufactures Lays potato chips, Cheetos extruded

    snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The

    companys high-fibre breakfast cereal, Quaker Oats and low-fat and roasted snack options like

    Aliva increase the number of healthy choices available to consumers.

    Kurkure Lays Lehar Namkeen Quaker Oats Uncle Chipps

    http://pepsicoindia.co.in/Brands/Kurkure.htmlhttp://pepsicoindia.co.in/Brands/Kurkure.htmlhttp://pepsicoindia.co.in/Brands/Lays.htmlhttp://pepsicoindia.co.in/Brands/Lays.htmlhttp://pepsicoindia.co.in/Brands/Lehar-Namkeen.htmlhttp://pepsicoindia.co.in/Brands/Lehar-Namkeen.htmlhttp://pepsicoindia.co.in/Brands/Quaker-Oats.htmlhttp://pepsicoindia.co.in/Brands/Quaker-Oats.htmlhttp://pepsicoindia.co.in/Brands/Uncle-Chipps.htmlhttp://pepsicoindia.co.in/Brands/Uncle-Chipps.htmlhttp://pepsicoindia.co.in/Brands/Uncle-Chipps.htmlhttp://pepsicoindia.co.in/Brands/Quaker-Oats.htmlhttp://pepsicoindia.co.in/Brands/Lehar-Namkeen.htmlhttp://pepsicoindia.co.in/Brands/Lays.htmlhttp://pepsicoindia.co.in/Brands/Kurkure.html
  • 7/29/2019 Final Project Report of Pepsico

    36/55

    36

    Aliva

    Beverages

    PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7UP,

    Nimbooz, Mirinda, Slice and Mountain Dew, in addition to low-calorie options such as Diet

    Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drink

    Gatorade and fruit juices such as Tropicana and Tropicana Twister.

    Pepsi 7UP Gatorade Mountain Dew Nimbooz Slice Tropicana Mirinda Aquafina

    http://pepsicoindia.co.in/Brands/Aliva.htmlhttp://pepsicoindia.co.in/Brands/Aliva.htmlhttp://pepsicoindia.co.in/Brands/Pepsi.htmlhttp://pepsicoindia.co.in/Brands/Pepsi.htmlhttp://pepsicoindia.co.in/Brands/7UP.htmlhttp://pepsicoindia.co.in/Brands/7UP.htmlhttp://pepsicoindia.co.in/Brands/Gatorade.htmlhttp://pepsicoindia.co.in/Brands/Gatorade.htmlhttp://pepsicoindia.co.in/Brands/Mountain-Dew.htmlhttp://pepsicoindia.co.in/Brands/Mountain-Dew.htmlhttp://pepsicoindia.co.in/Brands/Nimbooz.htmlhttp://pepsicoindia.co.in/Brands/Nimbooz.htmlhttp://pepsicoindia.co.in/Brands/Slice.htmlhttp://pepsicoindia.co.in/Brands/Slice.htmlhttp://pepsicoindia.co.in/Brands/Tropicana.htmlhttp://pepsicoindia.co.in/Brands/Tropicana.htmlhttp://pepsicoindia.co.in/Brands/Mirinda.htmlhttp://pepsicoindia.co.in/Brands/Mirinda.htmlhttp://pepsicoindia.co.in/Brands/Aquafina.htmlhttp://pepsicoindia.co.in/Brands/Aquafina.htmlhttp://pepsicoindia.co.in/Brands/Aquafina.htmlhttp://pepsicoindia.co.in/Brands/Mirinda.htmlhttp://pepsicoindia.co.in/Brands/Tropicana.htmlhttp://pepsicoindia.co.in/Brands/Slice.htmlhttp://pepsicoindia.co.in/Brands/Nimbooz.htmlhttp://pepsicoindia.co.in/Brands/Mountain-Dew.htmlhttp://pepsicoindia.co.in/Brands/Gatorade.htmlhttp://pepsicoindia.co.in/Brands/7UP.htmlhttp://pepsicoindia.co.in/Brands/Pepsi.htmlhttp://pepsicoindia.co.in/Brands/Aliva.html
  • 7/29/2019 Final Project Report of Pepsico

    37/55

    37

    About the Product

    Pepsi

    PEPSIYEH HAI YOUNGISTAN MERI JAAN

    Brand History

    Pepsi is a hundred-year-old brand loved by over 200 million people worldwide. The largest

    single selling soft drink brand in India, Pepsi is ubiquitous on just about every social occasion.

    Youngistaan loves it. 200 million people worldwide love it. But what has made Pepsi the singlelargest selling soft drink brand in India is actually a formula concocted a century ago in a faraway

    continent.

    1886, the US. Caleb Bradman, a man with a plan formulated a blockbuster of a digestive drinkand decided to call it Brads drink. The potion was to become Pepsi Cola in 1898, and eventually,

    Pepsi in 1903.

    Since its inception, Pepsi has always been at the forefront of the beverage industry and has comeup with revolutionary concepts such as Diet Pepsi, 2l bottles, recyclable plastic cola bottles and

    the enviable My Can.

    Brand Advantage

    Pepsi has become a friend to youth and youth culture. Over generations, youngsters have grownup with Pepsi and have shared an emotional connect with it unlike with any other cola brand. Be

    it parties, hangouts with friends, or just another day at home, a day is never complete without the

    fizz of Pepsi!

  • 7/29/2019 Final Project Report of Pepsico

    38/55

    38

    Pepsi, cricket and Bollywood have been joined at the hip since the colas entry into India. ShahRukh Khan, Sachin Tendulkar, Saif Ali Khan, Amitabh Bachchan, Kareena Kapoor, Priyanka

    Chopra, Virender Sehwag, M.S. Dhoni, John Abraham, Ranbir Kapoor and Deepika Padukone

    are some of the celebrities who have endorsed Pepsi.

    The Pepsi My Can is undoubtedly the most popular cola pack of all time. It is not just a pack buta definitive style.

    QUICK BRAND FACTS

    Flagship brand of PepsiCo. 100 year old brand loved by over 200 million people worldwide. An iconic youth brand in India.

    The single largest selling soft drink brand in India.

    7UP

    7UPMOOD KO DO LEMON KA LIFT

    Brand History

    7UP, the refreshing clear drink with a natural lemon and lime flavour was created in 1929. 7UP

    was launched in India in 1990 and its international mascot Fido Dido was used for advertising in

    1992 to position the brand as a cool drink for youngsters. Fido became an instant hit with his

    trendy look, laid-back attitude and unconventional take on life. During the brands early years in

    India, 7UP gained market leader status in the lemon lime category by being one of the first to be

    nationally distributed besides being marketed as a healthier alternative to other soft drinks.

  • 7/29/2019 Final Project Report of Pepsico

    39/55

    39

    Brand Advantage

    For the past two years, 7UPs ambition as a brand has been to capture and own the lemon

    refreshment territory within the clear lime category. Lemon has proven to be a clear and

    relevant differentiator for the brand. Further, the emotional connect with the idea of upliftment

    through refreshment has led to an impressive payoff for the brand.

    After establishing itself as The Lemon Drink in January 2009, 7UP has continued to build on

    the theme of mood upliftment with its new tagline Mood Ko Do Lemon Ka Lift.

    Did You Know?

    There are many theories for the origin of the 7UP name.

    According to Professor Gary Yu (UCSB) and researchers for the popular Uncle Johns Bathroom

    Reader the name is derived from the atomic mass of Lithium, 7, which was originally one of the

    key ingredients of the drink (lithium citrate).

    However, there are numerous other myths explaining the name:

    Its creator named the soft drink after winning at a casino with three rolls of 7 and the letter U. The drink was formulated with seven flavours plus the bubbles from the drinks carbonation (the

    bubbles go up).

    The original bottle contained seven ounces; its creator came up with the name while playing dice. 7UP was the seventh large commercial lemonade brand that tasted the same. Before the formula changed in 2006, a can of 7UP included seven ingredients. The Up in the drinks name might refer to the origin al inclusion of lithium citrate, when it was

    marketed as a patent medicine to cure hangovers.

    The name 7UP was a reference to the Esoteric concept of the Seven Planes, made famous by theInternet series The Arrivals.

    The name came from the seventh-inning stretch 7UP in baseball tradition.QUICK BRAND FACTS

    7UP was created in 1929

  • 7/29/2019 Final Project Report of Pepsico

    40/55

    40

    7UP was launched in India in 1990

    Gatorade

    Brand History

    Gatorade, the Worlds No.1 Sports Drink, was born on the field of sport! Gatorade was launched

    in India in 2004 and over the years, has become an integral part of the kitbags of many leading

    sportspersons. Gatorade has been tried and endorsed in India by the top sports stars and

    professionals, including Sachin Tendulkar, Irfan Pathan, Md. Kaif, S. Sreesanth Ramji

    Srinivasan and Javagal Srinath.

    The Gatorade Story

    In the summer of 1965, a University of Florida assistant coach sat down with a team of

    university physicians and asked them to determine why so many of his players were being

    affected by heat and heat-related illnesses. The researchersDr. Robert Cade, Dr. Dana Shires,

    Dr. H. James Free and Dr. Alejandro de Quesada soon discovered that two key factors were

    causing the Gator players to wilt: the fluids and electrolytes the players lost through sweat were

    not being replaced, and the large amounts of carbohydrates the players bodies used for energywere not being replenished. The researchers then took their findings into the lab, and

    scientifically formulated a new, precisely balanced carbohydrate-electrolyte beverage that would

    adequately replace the key components lost by Gator players through sweating and exercise.

    They called their concoction Gatorade.

  • 7/29/2019 Final Project Report of Pepsico

    41/55

    41

    Brand Advantage

    What is Gatorade?

    Gatorade is an optimal mix of water, carbohydrates and essential mineral salts that get absorbedinstantly to rehydrate, replenish and refuel like no other beverage can.

    Gatorade is unlike any other Beverage or Energy Drink!

    Gatorade quickly restores what the body loses through sweat. Its scientific formulation instantly

    helps the body restore essential minerals, salts, water and energy lost through action and

    exercise. Gatorade thus helps one to stay Stronger for Longer. It contains less than half of the

    sugar that is normally found in energy drinks or soft drinks and even juices.

    Did You Know?

    Water helps, Gatorade transforms. Gatorade is meant for consumption in active, sporty, hot and sweaty conditions. Gatorade is scientifically formulated and athletically proven to quench thirst.

    QUICK BRAND FACTS

    Worlds No. 1 Sports Drink Launched in India in 2004 Available in 3 flavours

  • 7/29/2019 Final Project Report of Pepsico

    42/55

    42

    Mountain Dew

    MOUNTAIN DEWDARR KE AAGE JEET HAI

    Brand History

    The main formula of Mountain Dew was invented in Virginia. The drink was named and first

    marketed in Johnson City, Tennessee and Knoxville, Tennessee in 1948.

    In India, Mountain Dew set the soft drink category ablaze in 2003 with its iconic launch

    campaign Cheetah Bhi Peeta Hai.

    Brand Advantage

    It is a soft drink that exhilarates like no other because of its active, high-energy, extreme citrus

    taste. The idea of daring, challenges, a can do attitude, adventure and exhilaration are deeply

    entrenched in its brand DNA. The brand has always celebrated the bold, adventurous and

    rebellious spirit of youth. This is reflected in the high-adrenaline advertising of the brand and its

    connection to outdoor adventure.

    Did You Know?

    Darr Ke Aage Jeet Hai

    In 2007, the brand was re-launched with a completely new, punchier formulation.

    Communication aimed at forging a strong emotional connect with the audience. Thus began the

    Darr Ke Aage Jeet Hai campaign, which acknowledged that fear was a very real aspect of the

  • 7/29/2019 Final Project Report of Pepsico

    43/55

    43

    world of adventure and Mountain Dewwanted young people to believe in themselves in their

    moment of fear. For beyond fear lay victory.

    QUICK BRAND FACTS

    Mountain Dew was invented in Virginia in 1948. It was launched in India in 2003.

    Nimbooz

    NIMBOOZEKDUM ASLI INDIAN

    Brand History

    Nimbooz was launched in India on the 28th of February 2009. It is the latest addition to the Pepsi

    beverages portfolio.

    Brand Advantage

    The brand delivers very strongly on certain expectations. These are:

    Locally Relevant Taste

    Nimbooz is a great tasting product. It has capitalized on the existing familiarity with and high

    consumption of unpackaged / home-made nimbu pani. It has remained true to its authentic Indian

    Identity by using the traditional Matka (Earthen Pot) and Squeezer in the manufacturing process.

  • 7/29/2019 Final Project Report of Pepsico

    44/55

    44

    Convenience and Great Value

    The product is available in three convenient formats, 350ml PET, 200ml RGB and 200ml Tetra

    at the remarkable price points of Rs15, Rs 10 and Rs 10 respectively.

    Accessibility

    Nimbooz is Indias first nationally available packaged Nimbu Pani.

    Hygienic

    It is just like home-made nimbu pani. You can enjoy its natural and delicious lemony

    refreshment anywhere you go.

    QUICK BRAND FACTS

    Indias first nationally available packaged Nimbu Pani. It was launched in India in 2009.

    Slice

    SLICEPURE MANGO PLEASURE

  • 7/29/2019 Final Project Report of Pepsico

    45/55

    45

    Brand History

    Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to become

    a leading player in the category.

    In 2008, Slice was relaunched with a winning product formulation that made consumers fall in

    love with its taste. With new pack graphics and clutter-breaking advertising, Slice has built a

    powerful appeal.

    Brand Advantage

    With the launch of the Aamsutra campaign in 2008, its winning taste and appealing pack

    graphics, Slice created a great deal of excitement in its category and celebrated the indulgence inmangoes like no other brand had done before.

    While other players have portrayed the mango as a simple and innocent fruit, Slice celebrates the

    sheer indulgence and sensuality involved in consuming a mango. The creative Aamsutra idea

    communicates the experience of extreme sensuous pleasure through the act of drinking Slice.

    Slice was the first brand ever in the Juice and Juice Drinks category to sign on Bollywood diva

    Katrina Kaif as the brand ambassador for Slice.

    In 2009, Slice took the notion of indulgence to a whole new level with the launch of the Slice

    Pure Pleasure Holidays, giving its consumers a chance to win luxurious all-expenses-paid

    holidays to dream European destinations like Paris, Vienna, Greece and Venice.

    QUICK BRAND FACTS

    Slice was launched in India in 1993 Slice Mangola was introduced in 1994

  • 7/29/2019 Final Project Report of Pepsico

    46/55

    46

    Tropicana

    Brand History

    Tropicana was founded in Bradenton, Florida, USA, in 1947. It is now enjoyed almost

    everywhere in the world. Carefully nurtured for over 50 years, Tropicana has matured into one of

    the most respected beverage brands. Widely regarded as the world's no. 1 juice brand, it is today

    available in 63 countries. Since 1998, Tropicana has been owned by PepsiCo, Inc. Tropicana

    Premium Gold was re-launched as Tropicana 100% in 2008.

    Brand Advantage

    Tropicana continues to select the best fruit to manufacture high-quality juices and original

    products, pioneer innovative processes and explore new markets for its products. It is committed

    to fostering healthy lifestyles by ensuring that its products are naturally nutritious and provide

    the daily benefits that one needs.

    In India, Tropicana comes in two categories: 100% Juices (sold as Tropicana 100%) and Juice

    Beverages & Nectars (sold as Tropicana).

    QUICK BRAND FACTS

    Launched in India in 2004. Available in two categories - 100 percent juice and juice-based drinks.

  • 7/29/2019 Final Project Report of Pepsico

    47/55

    47

    Did You Know?

    20 oranges=1L Tropicana 100% Orange juice

    8 apples=1L Tropicana 100% Apple juice

    1.25 Kg grapes=1L Tropicana 100% Grape juice

    1.3 Kg Mixed fruits=1L Tropicana 100% Mixed fruit juice

  • 7/29/2019 Final Project Report of Pepsico

    48/55

    48

    Mirinda

    MIRINDAWEEKEND AAYE THO PAGALPANTI CHAYE

    2010 Brand Campaign

    In 2010, Mirinda launched the Weekend Pagalpanti campaign, based on the insight that todays

    youth love to spend fun time with their friends and families on weekends, and any unwanted

    interruption causes annoyance. Mirinda helps young people to enjoy themselves spontaneously

    and drives away all unwanted weekend interruptions. The campaign was launched withinteresting advertising copy, innovative outdoors, radio contests, DTH activation and in-store

    presence.

    Brand History

    Mirinda is an international soft drink brand from Spain that was launched in India in 1991.

    Mirinda has always been about the irresistible taste of oranges that is now synonymous with the

    brand. The message was successfully communicated through our 1996 Mirinda Men campaign,

    the 2000 Taste Pe Atka, Mirindaaaa campaign and the Taste Aisa Chaye Character Fisla Jaye

    campaign of 2003.

  • 7/29/2019 Final Project Report of Pepsico

    49/55

    49

    Mirinda evolved to evoke not just great taste but a lot of fun as well. This was conveyed through

    another spate of memorable campaigns Fun Ka Naya Mantra, Mirindaaaaa starring Asin and

    Zayed Khan in 2007 and the Pagalpanti Bhi Zaroori Hai campaign with Asin in 2008.

    In 2009, orange was established as the core of the brand with the Orange Dikha Toh Mooh

    Bola Mirindaaaaa campaign.

    Brand Advantage

    When we think Mirinda, we think orange. But Mirinda has also launched many other fruit

    flavours. Mirinda Lemon was launched in 1998 with the memorable Zor Ka Jhatka Dheere Se

    Lage campiagn starring Amitabh Bachchan and Govinda. Mirinda has also launched innovative

    flavors like Apple and Batberry.

    In 2008, the brand decided to up the ante and deliver a brand philosophy that would resonate

    even more strongly with consumers. Consequently, Mirinda adopted a bold and vibrant colour,

    great orangey taste and sparkling bubbles that encouraged one to be more carefree, spontaneous

    and playful.

    In an effort to give our consumers a great tasting product that delights continuously, we have

    reformulated and improved the taste of Mirinda, first in 1996, and then in 2002. Whats more,

    Mirinda is now made without any artificial flavour at all!

    QUICK BRAND FACTS

    1991: Mirinda Orange launched in India. 1998: Mirinda Lemon launched in India.

  • 7/29/2019 Final Project Report of Pepsico

    50/55

    50

    Aquafina

    AQUAFINATHE PUREST PART OF YOU

    Brand History

    Aquafina was first launched in the US in 1994. With its unique purification system and great

    taste, Aquafina soon became the bestselling brand in the country.

    In India, Aquafinas journey began with its launch in Bombay in 1999 and it was rolled out

    nationally by 2000. On the strength of its brand appeal and distribution, Aquafina has become

    one of Indias leading brands of bottled water in a relatively short span of time.

    Brand Advantage

    Aquafina goes through a five step state-of-the-art purification process to give consumers pure

    water and perfect taste.

    Aquafina has been built through refreshing and sharp advertising. The What a Body campaign

    has helped the brand to drive premium, modern and youthful imagery in an otherwise

    undifferentiated category.

    Bottled across India in 19 plants, Aquafina is available across more than half a million outlets.

    Catering to diverse consumer needs and occasions, it is available in various pack sizes like

    300ml, 500ml, 1 ltr and 2 ltr bottles and in bulk water jars of 25 ltrs.

  • 7/29/2019 Final Project Report of Pepsico

    51/55

    51

    Aquafina is the face of PepsiCos water conservation initiatives and builds awareness about

    Pepsicos efforts to replenish and restore the water table through its pack labels.

    DISTRIBUTION NETWORK

    PEPSICO has a wide and well managed network of salesmen appointed for taking up the

    responsibility of distribution of products to diverse parts of the cities. The distribution channels

    are constructed in such a way that the demand of customers is fulfilled at the right place and

    the right time when it is needed by them.

    A typical distribution chain at PEPSICO would be:

    Production --- Plant Warehouse --- Depot Warehouse --- DistributionWarehouse ---

    Retail Stock--- Retail Shelf--- Consumer

    The customers of the Company are divided into different categories and different routes, and

    every salesman is assigned to one particular route, which is to be followed by him on a dailybasis. A detailed and well organized distribution system contributes to the efficiency of the

    salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher

    profits to the firm.

    DISTRIBUTION ROUTES

    The various routes formulated by PEPSICO for distribution of products are as follows:

  • 7/29/2019 Final Project Report of Pepsico

    52/55

    52

    Key Accounts: The customers in this category collectively contribute a large chunk ofthe total sales of the Company. It basically consists of organizations that buy large

    quantities of a product in one single transaction. The Company provides goods to

    these customers on credit, payments being made by them after a certain period of

    time i.e. either a month of half a month.

    Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

    Future Consumption: This route consists of outlets of PEPSICO products, wherein aconsiderable amount of stock is kept in order to use for future consumption. The stock

    does not exhaust within a day or two, instead as and when required stocks are

    stacked up by them so as to avoid shortage or non-availability of the product.Examples: Departmental stores, Super markets etc.

    Immediate Consumption: The outlets in this route are those which require stockson a daily basis. The stocks of products in these outlets are not stored for future use

    instead, are exhausted on the same day and might run a little into the next day i.e.

    the products are consumed at a fast pace.

    Examples: Small sized bars and restaurants, educational institutions etc.

    General: Under this route, all the outlets that come in a particular area or an areaalong with its neighboring areas are catered to. The consumption period is not taken

    into consideration in this particular route.

  • 7/29/2019 Final Project Report of Pepsico

    53/55

    53

    DISTRIBUTION SYSTEM

    Direct distribution: In direct distribution, the bottling unit or the bottler partner hasdirect control over the activities of sales, delivery, and merchandising and local account

    management at the store level.

    Indirect distribution: In indirect distribution, an organization which is not part of thePEPSICO system has control on one or more of the distribution elements (Sales,

    delivery, merchandising and local account management)

    Merchandising: Merchandising means communication with the consumer at the pointof purchase to convey product benefit, value and Quality. Sales people and delivery

    personnel both have this responsibility. In certain locations special teams who go into

    business locations to specifically merchandise our products.

    DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS

    The Distribution process mainly consists of three departments:

    Distribution Department: It appoints distributors and establishes a distributionnetwork, processes approved sale orders and prepares invoices, arranges logistics and

    ship products, co-ordinates with distributors for collections and monitors distribution

    stocks and their set-up.

  • 7/29/2019 Final Project Report of Pepsico

    54/55

    54

    Finance Department: It checks credit limits and approves sales orders in compliancewith the credit policy followed by the firm, records collections from distributors,

    periodically reconciles outstanding balances from distributors, obtains balance

    confirmation from distributors and follows up outstanding balances.

    Shipping or Warehousing Department: It dispatches goods as per approved byorder, ensures that stocks are dispatched on a FIFO basis, ensures physical control over

    load out area and updates warehouse stock records in a timely manner.

    BIBLIOGRAPHY

    Name of the books used for the reference and their authors.

  • 7/29/2019 Final Project Report of Pepsico

    55/55

    Principles of Marketing - Philip Kotler

    Research Methodology - Kothari C.R

    Market Research - Sharma D.D.Websites Referred

    http://www.pepsico.com

    http://www.google.com

    http://www.rkg.com

    http://pepsizone.yahoo.com

    http://www.youngistan.com

    http://www.pepsico.com/http://www.pepsico.com/http://www.google.com/http://www.google.com/http://www.rkg.com/http://www.rkg.com/http://pepsizone.yahoo.com/http://pepsizone.yahoo.com/http://pepsizone.yahoo.com/http://www.rkg.com/http://www.google.com/http://www.pepsico.com/