Arab Academy for Science, Technology & Maritime Transport

Master of Business Administration Program (MBA)

MARKETING MANAGEMENT

Marketing Management Midterm

PRESENTED TO : Dr. Raafat Youssef Shehata

Prepared by : Mohamed Serageldin Mohamed Aly /
Group 2J / Wednesday
Agenda:
Introduction
PepsiCo Vision

PepsiCo Mission

SWOT Analysis

PESTEL analysis

Growth strategies (Ansoff)

Competitive strategies (Porter)

Future objectives for 2022

Introduction
PepsiCo, Inc. is a global food, snack and beverage company
founded in 1919

Pepsi, portfolio included 22 brands

Pepsi, Inc. reports sales of $510 million and has 19,000 employees.

PepsiCo believes that its performance is

fundamentally connected to its agenda of
purpose, which represents the
commitment to give back to communities
as the company grows.

Currently, PepsiCo has divisions which operate in three major US and international businesses:
beverages, snack foods, and restaurants.
Introduction
PepsiCo has attained a leadership position

leader in soft drink bottling world largest snack chip producer

World largest franchised and company operated restaurant system

The cooperation’s increasing success has been based on

High standards marketing

competitiveness Determination Commitment
of performance strategies

personal and professional integrity of their people, products and business practices
PepsiCo vision :

PepsiCo's responsibility is to
continually improve all aspects of the
world in which we operate -
environment, social, economic -
creating a better tomorrow PepsiCo Mission:
than today."
  Our mission is to be the worlds premier consumer
products company focused on convenient foods
and beverages. we seek to produce 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.
1st : Strength (Internal)
2nd: Weaknesses (Internal)
• Strong brand image
• Low penetration outside the
• Broad product mix
Americas.
• Extensive global production
• Limited business portfolio.
network
• Weak marketing to health-
• Extensive global distribution
conscious consumers.
network
SWOT
4th : Threats (External)
3rd : Opportunities (External)
• Aggressive competition
• Low penetration outside the
• Healthy lifestyles trend
Americas.
• Environmentalism
• Limited business portfolio.
• Increasing of awareness of harmful
• Weak marketing to health-conscious
use of soda products
consumers.
• Fluctuation of sugar price affect
production
PESTEL analysis:
1st :Political factors: 2nd: Economic Factors: 3rd: Socio-cultural factors:
• Being non-alcoholic beverage that
• Non alcoholic beverage, has to • Economic downturn deals worldwide & differences of
follow regulated by FDA with • Falling profits needs cultures the world wide.
consistency. downsizing • In advertising campaigns like some
• Deals in different markets and • 2008 was in Pepsi’s favour. countries have religious festivals
• Solid waste management program
every market has its own It resulted in increased sales
affects the operations at Pepsi.
policies and procedures • Fuel prices greatly affect • Waste disposable
• Competitors use competitive PepsiC0’s transport costs • Pepsi has an implementation of SAP
pricing strategy • Availability of labour software and wind power
• Government’s focus on stricter manufacturing in India
water pollution norms and land • Pepsi introduced plastic bottles and
cans and came up with innovative
acquisition for new factories in
and newer designs.
different countries.
PESTEL analysis:

4th : Technological Factors: 5th : Ecological Factors: 6th :Legal Factors:

• Moderate research and development • PepsiCo’s supply chain and brand • Genetically modified organisms
(R&D) investments in the industry, image are linked to environmental (GMOs) are now increasingly
• PepsiCo can exploit the benefits of concerns. regulated worldwide, particularly in
knowledge management systems to • Consumers are now pushing Europe. PepsiCo has the opportunity
support its various business companies like PepsiCo to improve to reduce its use of GMO ingredients
processes, such as product their sustainability standing. to satisfy these regulations.
innovation and strategic decision- • PepsiCo can improve its waste • PepsiCo can improve products to
making. disposal strategies, such as recycling, address regulations about product
• In addition, an increase in the to gain more support from customers. safety and health effects.
number of automated processes in Climate change poses a threat to • The moderate rate of regulatory
the company can enhance business PepsiCo’s supply chain. change gives opportunity for PepsiCo
performance. • PepsiCo can further diversify its to grow with the expectation that its
• PepsiCo must include new global supply chain to minimize risk current strategic decisions will satisfy
technologies as tools to improve exposure to climate change. regulatory requirements in the long
business competitiveness. • PepsiCo must improve its term.
environmental impact to attract and • PepsiCo can focus on product
retain customers, and to stabilize its innovation to comply with
supply chain. regulations.
PepsiCo’s PESTEL Analysis – Recommendations

PepsiCo remains one of the strongest companies in the food and beverage industry. This
PESTEL/PESTLE analysis indicates that the company has many opportunities and a number of threats
regarding its growth and international expansion. The following are some of the key points that PepsiCo
must address based on the results of the analysis:

Expansion in developing economies

Product innovation to address concerns on quality

and health effects

Business sustainability

Supply chain diversification

Growth Strategies (Ansoff):

This framework helps the companies in identifying the new opportunities related to growth. It also helps
in analyzing the companies on the basis of product and market with opportunities
sells existing products in the new products will be introduced
PepsiCo develop fruit
existing market by the company in existing
juices and partnership
PepsiCo is selling market with Unilever and
its beverage Pepsi Starbucks for producing
in the current tea and coffee and offer
market their juice. Mineral
water Aquafina was also
considered as Product
Development

PepsiCo has expanded introducing new product for

its business according new markets
to the different regions
and separate it among
Pepsi Euro, Pepsi PepsiCo has changed
supports existing products of itself from the
Africa, Pepsi America,
Pepsi Middle east and
the company in new markets traditional beverage
Pepsi Asia firm into food
company
Competitive strategies (Porter):
Michael Porter has given Generic Strategies through which the business
organizations can gain competitive advantage over the competitor in
the market.

Those three strategies are Cost leadership, Differentiation and Focus Strategy.

PepsiCo is utilizing two

strategies of these Generic
Strategies
for achieving competitive
advantage:

1st: Differentiation.

2nd : Cost Leadership.

1st : Differentiation 2nd : Cost Leadership

Differentiation allows the business organization to PepsiCo is also utilizing low cost strategy, which
differentiate their products from the competitors in is focused on the reduction of cost, through which
the market. the company can enhance the financial
In order to achieve differentiation PepsiCo utilizes performance which will further enhance the
broad differentiation as the strategy in order to competitiveness of the PepsiCo in the market.
achieve competitive advantage over the
competitors in the market. In order to compete with Coca Cola, PepsiCo
Differentiation strategy allows the PepsiCo to offers low prices to the consumers, due to the bulk
attract more and more consumers towards the production which leads to economies of scale, and
different features of the products. also decrease the operating costs of the
One of the ways in which PepsiCo is differentiating production facilities. Sometimes PepsiCo also
its products is by its packaging, which attracts the provides the consumers with promotional offers
consumers on the basis of value that it gives to the which have discounted prices.
consumers.
PepsiCo brand Lays are being marketed as healthy
snack, as the products have less amount of
saturated fat, which differentiate it from other
substitute products in the market and provides
competitive advantage to the company.
Future Objectives for Brand awareness :

2022 • As important as it is to connect with customers

online, it also essential to have a good digital
marketing strategy in place. One reason why
Customer Satisfaction: Pepsi is still top of mind is that their digital
campaigns always make a mark on their target
market. Their 20-minute long ‘Bring Home
• PepsiCo's ambition is to enable better
Happiness’ campaign, for example, became so
nutrition at scale by continuing to develop a viral that people watched it more than a billion
broader portfolio of food and beverage times.
choices and increasing access to great- • Their packaging and quality should especially
tasting, nutritious options. be noted as Pepsi continues to innovate.
• PepsiCo offers more choices to help meet
Updating their designs regularly has helped
consumer demand for flavor and keep their customers happy while drawing in
convenience as part of a balanced diet, new ones at the same time. They do this
through acquisitions and partnerships. In because they know that attractive packages and
early 2021, PepsiCo joined with Beyond having more options can help drive more sales.
Meat, Inc. to launch The Planet Partnership
and expanded their portfolio.
• by reducing added sugars, sodium and
saturated fats across their portfolio. 71% of
their foods portfolio contains ≤1.1 grams of
saturated fat per 100 Calories.