Santhosh Pepsi

7/30/2019 Santhosh Pepsi

1/17

PepsiCo Introduction


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PepsiCo

State of the Business

E.Santhosh kumar

M.B.A


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Mission and Vision

At PepsiCo, we believe being a responsible

corporate citizen is not only the right thing to do,

but the right thing to do for our business

"PepsiCo's responsibility is to continually improveall aspects of the world in which we operate-

environment, social, economic - creating a better

tomorrow than today."


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Worlds Second Largest Food

& Beverage Company

PepsiCo AmericasFoods (PAF)

PepsiCo AmericasBeverages (PAB)

PepsiCoInternational (PI)

48% Revenues

56% Division Op. Profit

23% Revenues


29% Revenues


Frito-Lay N.A.

Quaker Foods N.A.

Latin America Foods

UK / Europe

MEA / Asia

Presence in 200 countries with 198,000+ total employees


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PepsiCo Strengths

Large and Vibrant Categories Broad Geographical Footprint

Developing Market Focus in Beverages Global Leader in Snacks

Strong Brands That Are a Part of the Local CultureAdvantaged Supply Chain and Powerful

Go-To-Market Systems


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Strong NEW Track Record of Performance

05 06 07 08 09

05 06 07 08 09

China

India

Russia

Egypt

Thailand

Turkey

12

9

8

6

5

6

9Vietnam

2007 % GDP Growth

Footprint inHigh Growth, Populous Markets

7

Brazil

Argentina

Venezuela

Colombia

Poland

Pakistan

Romania

So. Africa

9

88

7

5

5

5

Population (MM)

1,321

1,110

39

86

27

14247

76

38

164

22

189

48

67

75

10%CAG

R

10%CAGR

10%CAG

R

10%CAGR

$62.0P

B

G+

PA

S

The Acquisition of PBG, PAS will change the Landscape

$61.0

$6.9

$8.0

PB

G

+

P

A

S

$9.5

$8.1

Revenue ($B) OperatingProfit ($B)

PB

G

+

P

A

S

$43.2$43.3


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PepsiCo Products


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9/17

CEO Indras Key Priorities

20% reduction in capital in 09. Every penny a prisoner!

8,300 associates let go on 2008, 09.

Deliver 2010 Annual Operating Plans, both Shareand Profit

Radically improve the competitiveness of our

North America Beverages business.

Relentless Focus on Value, keep our eye on the

value equation for all our products.

Build the foundations for our Future Growth


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Priorities of pepsico Priceis important; however, Best Value is our goal

Best Value procurement process balances pricing, performance, and lifecycle cost for criticalequipment based on our long-term interests and needs

(Customer and Supplier) supply chains goal is to take costs out without impacting margins.

Innovation must provide PepsiCo a sustainable competitive advantage in the market

Suppliers are viewed as Subject Matter Experts and provide us with access to leading edge

innovationits imperative our partners provide us with First Look at innovation

Qualityis key and a fundamental principle of Best Value

Quality goes beyond equipment and performance must ultimately ensure consistency and

integrity of product in the market

Our suppliers must share in our vehement defense, maintenance, preservation, enhancement, and

growth of PepsiCos brands and its image

Performance with a Purpose is fundamental to every aspect of our business

Our suppliers must embrace our vision as well as have their own vision, strategies, and tactics to

ensure optimization of the total supply chainTomorrow > Today

Safety is paramount and not a given, demonstrate, improve, process, and provide documentation,

our most precious resource, our people


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Acquiring Tropicana in 1998, Acquisition with Quaker Oats.

will be a consumercentric advertising campaignwithout any celebrities informed industry sources.Celebrities may come and go but brands are

forever.

PepsiCo said it has formed a team called Power of

One - Americas Council, which handle the drinksand snacks in the Americas, as well as a GlobalSnacks Group, which work on coordinating its

international food operations.


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Architecture about their Terms


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Out of Bounds

Inconsistent Behavior

Negative Energy & Actions

Ignorance to Supplier Issues

Information Balancing

Changing Rules of the Game

Out of Bounds

Proprietary Information ReleasedInsecurity & Process Breakdown

Circumventing the System

Corporate Ignorance

Negatively Influential

Ethical Behavior

Confidentiality

Commitment to Partnership

Innovational & Challenging

Willingness to Invest

Trust & Respect

Sustainability (Economic,

Environmental, and Social)

PepsiCo

Program Development

Systems Criteria for Sustainability

Clear & Unrelenting Expectations

Unified Voice of PepsiCo

Tough but Fair

Good Listeners

We All Need to Know How to Behave, Play, Work Together

Rules of Engagement Overview


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The Power of One Two powerful businesses worth $31B each

Consumption:Planned together

Bought together

Consumed together

Synergies unique to PepsiCo that lead to selling & serviceadvantages and efficient operations:

Common Merchandising

Convenience Store Channel

Demographics

Broad Price PointsPrime-time Merchandising

Distribution Networks

New NFL 10 Year Deal

Source: Q3 Earnings Release, Oct 2011


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30%Facebook/Twitter

25%Campus Representatives

25%YouTube

20%Facebook/Twitter

Budget


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Recent Challenges and Concerns

2012 Pricing Strategy

Commodity inflation and Demand elasticity

Margins & Cost cutting measures

Currency exposure

Investors appealing for a split of Snacks and Beverages Strong growth in snacks business

Strong growth with Tropicana and Gatorade

Weak CSD strategy and culture has impacted PepsiCos overall stock performance

While Coke has increased by about 50%

Over-spending in marketing and advertising Kraft and Sara Lee example


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Documents

Santhosh Pepsi