Project on Pepsi Cola International

Document Sample
Project on Pepsi Cola International Powered By Docstoc

• We owe our gratitude to Allah Almighty for His blessings and kindness that we were able to accomplish
the challenging task successfully and enthusiastically.

• We acknowledge with deep gratitude the invaluable help extended to us by our respected teacher:
Professor Sajida Nisar whose indispensable and detailed comments and untiring guidance on various
aspects combined with encouragement made us come forth holding this article.

• We would like to thank The Pepsi team for their cooperation in helping us compose these pages.


PepsiCo, Inc. is currently one of the most successful consumer products company in the world with annual
revenues exceeding $30 billion and has more than 480,000 employees. PepsiCo, Inc. began as a successor
to a company incorporated in 1931, known as Loft Inc. Once known as Pepsi-Cola, the company expanded
its business and adopted its current name, PepsiCo, after a merger with Frito-Lay in 1965. This merger
dramatically increased PepsiCo's market potential and set the foundation for the company's tremendous

PepsiCo's products are recognized and are most respected all around the globe. Currently, PepsiCo
divisions operate in three major US and international businesses: beverages, snack foods, and restaurants.
In each of these businesses, PepsiCo has attained a leadership position as being the world leader in soft
drink bottling g, the world largest snack chip producer, and the world largest franchised and company
operated restaurant system. The corporations increasing success has been based on high standards of
performance, marketing strategies, competitiveness, determination, commitment, and the personal and
professional integrity of their people, products and business practices.

PepsiCo's overall mission is to increase the value of our shareholders' investments through sales growth,
investments and financial activities. PepsiCo believes their success depends upon the quality and value of
their products by providing a safe, whole some, economically efficient and a healthy environment for their
customers; and by providing a fair return to their investors while maintaining the highest standards of


PepsiCo's beverage business was founded in 1898 by a pharmacist named Caleb Bradham who created a
special beverage, a soft drink, in the back room of his drug store in New Bern, North Carolina. This new
soft drink called "Brad's Drink" had a unique mixture of kola nut extract, vanilla and rare oils. Caleb began
to advertise his new creation with the theme "Exhilarating, Invigorating, Aids Digestion" and renamed it as

Caleb Bradham began his cola operation in 1902. The Pepsi Cola Company was headquartered in the back
room of his drug store where he packaged the syrup for sale to other soda fountains. The business
increased, and on June 16, 1903, "Pepsi-Cola" was officially registered with the US Patent Office. And as a
result, Caleb Bradham began to franchise Pepsi-Cola to many independent investors. By the end of 1910,
Pepsi-Cola was franchised in 24 states.
Until World War I, Pepsi-Cola Company achieved 17 years of success and a new theme was introduced,
"Drink Pepsi-Cola. It will satisfy you." However, after the war years, Caleb Bradham suffered bankruptcy.
As a result, Pepsi-Cola became a subsidiary to Loft Incorporated, a large chain of candy stores and soda

Today, Pepsi-Cola Company is a major division of PepsiCo's corporate structure. Pepsi-Cola Company
now produces and markets a wide range of beverages to retail, restaurants and food services in more than
191 countries and territories around the world and brings in a annual revenue of $23 billion. There are 200
plants in the US and Canada, as well as, 530 plants throughout the rest of the world, that produces Pepsi-
Cola's beverages.

Since the creation of Pepsi-Cola in 1898, Pepsi-Cola Company has introduced 13 beverages that wear the
Pepsi-Cola trademark. Five of Pepsi-Cola's brand names: Pepsi, Diet Pepsi, Mountain Dew, 7 UP, and
Mirinda, each brings in annual revenue in consumer sales of $1 billion. In 1992, a partnership between
Thomas J. Lipton and Pepsi was formed. This partnership produces, markets, and distributes Lipton Brew,
Lipton Brisk and Lipton Fountain Ice-Tea. And in 1993, Pepsi Max a low calorie cola was created and
introduced only for the international markets. Pepsi Max is now produced in over 40 countries and is the
third largest-selling cola brand outside the US.

PepsiCo is continuing to expand and introduce new alternative beverages in the market. There are four
alternative beverages that are currently being tested in our market today. Mazagran, a cold sparkling coffee
based beverage, Aquafina, bottled water, and a low fat milk shake called Smooth Moos. The latest
beverage was launched on May 22, 1996 in Philadelphia. Pepsi-Kona, a new cola, is a combination of the
Pepsi-Cola flavor and the Kona blend of coffee.

Snack foods

PepsiCo's food business started in 1932 at the birth of both, the Frito-Lay Company, a producer of corn-
chips and H.W. Lay Company, a producer of potato chips. In 1961, the Frito-Lay company merged with the
H.W. Lay Company to form Frito-Lay, Inc. Today, Frito-Lay Inc., is a major division in PepsiCo's
corporate structure. The Frito-Lay Inc., is the worlds number one snack food company in the US and in
most of its 39 international markets.

Frito-Lay manufactures, distributes and markets snacks all over the world. In 1995, Frito-Lay Company
marketed more than 150 varieties of snack food products worldwide and representing over half of the sales
of snack chips in the United States. Some of their products include: Lay's and Ruffles brand potato chips,
Doritos and Tostitos brand tortilla chips, Frito's brand corn chips, Cheetos brand cheese flavored snacks,
Rold Gold brand pretzels, and a variety of dips and sal sas.

Since 1990, in the United States alone, volume has grown 9 percent annually. In 1966, PepsiCo launched
its international snack foods operations. Currently, Frito-Lay's snack products are available in 81 countries
and territories outside North America.


PepsiCo is the largest restaurant system in the world. The restaurant segment is engaged in the operation,
development, franchising, and licensing of Pizza Hut, Taco Bell and KFC concepts. In 1977, Pizza Hut
became a part of PepsiCo and is currently the leader among the pizza restaurant chain in the United States.
Taco Bell, the largest Mexican-style restaurant in the United States, became a part of PepsiCo's restaurant
system in 1978. (Today, Taco Bell operates in 4,800 restaurants in the US and in 94 countries and
territories worldwide. In 1986, KFC joined PepsiCo and is the leading fast-food chicken restaurant in the
US T here are more than 5,000 company operated, franchised, and licensed KFC restaurants in the US.
PepsiCo's restaurants have a record for growth and have produced more than $5 billion in revenues.
PepsiCo restaurant system has more than 8,000 units outside the US and is operated in more than 90

PepsiCo's Food System (PFS) is the corporation's restaurant supply company and is responsible for the
consolidation of many restaurant activities. PFS distributes to Pizza Hut, Taco Bell and KFC, more than $3
billion worth of restaurant equipment and supplies each year. However, in January of 1997, PepsiCo
announced it would be splitting from its restaurant business after being in it for nearly two decades.
PepsiCo is planning to concentrate on its faster growing Frito-Lay and Pepsi businesses.


PepsiCo was formed back in 1965 through a merger between Pepsi-Cola Company and Frito Lay, Inc.
PepsiCo has enjoyed success in its earlier years, but of late, profits have been declining. Consider that net
income fell from $1.990 billion in 1995 to $1.865 billion in 1996; this represents a 6% decrease.
Internationally, Pepsi is facing even more problems, with an $846 million loss in 1996. Pepsi plans to
address this problem with an aggressive marketing campaign described later.

PepsiCo's stock, listed under the trading symbol PEP, is found on the New York Stock Exchange, which is
its principal market, as well as on the Amsterdam, Midwest, Swiss, and Tokyo Stock Exchanges. Currently
it has a market capitalization of $55.2 billion, with 1.53 billion shares outstanding, and approximately
207,000 shareholders. The stocks earning per share through the end of 1996 was $.75, which is down 25%
from last year's earnings per share of $1.00 at the end of 1995 . As of July 18, 1997 the 52 week range for
the stock has been from a low of $28 to a high of $39.50. Quarterly cash dividends have been paid since
PepsiCo was formed in 1965, and the dividends per share have increased for 24 consecutive years. Last
year, 1996, PepsiCo paid an annual dividend of $.50, which represents a dividend yield of 1.39%.

The History Of Pepsi-Cola

1893--Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with
many different soft drink concoctions; patrons and friends sample them at his drugstore soda fountain.

1898--One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated water, sugar,
vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898. Pepsi-Cola receives its frist

1902--The instant popularity of this new drink leads Bradham to devote all of his energy to developing
Pepsi-Cola into a full-fledged business. He applies for a trademark with the U.S. Patent Office, Washington
D.C., and forms the first Pepsi-Cola Company.

The first Pepsi-Cola newspaper advertisements appeared in the New Bern Weekly Journal.

1903--"Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a rented warehouse; he
sells 7,968 gallons of syrup in the first year of operation.

Pepsi's theme line is "Exhilarating, Invigorating, Aids Digestion."
1904--Bradham purchases a building in New Bern known as the "Bishop Factory" for $5,000 and moves all
bottling and syrup operations to this location. Pepsi is sold in six-ounce bottles. Sales increase to 19,848

1905--Pepsi-Cola's first bottling franchises are established in Charlotte and Durham, North Carolina.

Pepsi receives its new logo, its first change since 1898.

1906--Pepsi gets another logo change, the third in eight years. The modified script logo is created with the
slogan, "The Original Pure Food Drink."

There are 15 U.S. Pepsi bottling plants. The Pepsi trademard is registered in Canada. Syrup sales rise to
38,605 gallons.

The federal government passes the Pure Food and Drug Act, banning substances such as arsenic, lead,
barium, and uranium, from food and beverages. This forced many soft drink manufacturers, including
Coca-Cola, to change their formulas. Pepsi-Cola, being free of any such impurities, claimed they already
met federal requirements.

1907--Pepsi-Cola Company continues to expand; the company's bottling network grows to 40 franchises.
Pepsi-Cola sells more than 100,000 gallons of syrup.

Pepsi trademark is registered in Mexico. Syrup sales rise to 104,026 gallons.

1908--Pepsi-Cola becomes one of the first companies to modernize delivery from horse drawn carts to
motor vehicles. Two hundred fifty bottlers in 24 states are under contract to make and sell Pepsi-Cola.

1909--Automobile race pioneer Barney Oldfield endorses Pepsi-Cola in newspaper ads as "A bully
drink...refreshing, invigorating, a fine bracer before a race."

1910--The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina.

1920--Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you."

1923--Pepsi-Cola Company is declared bankrupt and its assets are sold to a North Carolina concern,
Craven Holding Corporation, for $30,000.

Roy C. Megargel, a Wall Street broker, buys the Pepsi trademark, business and good will from Craven
Holding Corporation for $35,000, forming the Pepsi-Cola Corporation.

1928--After five continuous losing years, Megargel reorganizes his company as the National Pepsi-Cola
Company, becoming the fourth parent company to own the Pepsi trademark.

1931--U.S. District Court for Eastern District Virginia declares the National Pepsi-Cola Company
bankrupt, the second bankruptcy in Pepsi-Cola history.

The Loft candy company acquires the National Pepsi-Cola Company. Charles G. Guth, president of Loft,
assumes leadership of Pepsi and commands the reformulation of Pepsi-Cola syrup formula.
1933--By the end of the year, Guth's new Pepsi-Cola Company is insolvent. In a series of moves, he
acquires Megargel's interest in the company, giving himself 91% ownership of Pepsi.

1934--A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales, the company
begins selling its 12-ounce drink for five cents (the same cost as six ounces of competitive colas). The 12-
ounce bottle debuts in Baltimore, where it is an instant success. The cost savings proves irresistible to
Depression-worn Americans and sales skyrocket nationally.

Caleb Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies at 66 (May 27th, 1867-February 19th,

1935--Guth moves the entire Pepsi-Cola operation to Long Island City, New York, and sets up national
territorial boundries for the Pepsi bottler franchise system.

1936--Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000.

1938--Walter S. Mack, Jr., V.P. of Phoenix Securities Corporation is elected President of the Pepsi-Cola
Company. Mack, who considers advertising the keystone of the soft drink business, turns Pepsi into a
modern marketing company.

1939--The "Pepsi & Pete" comic strip introduces the "Twice as much for a nickel" theme in newspapers.

Pepsi-Cola Company names Mack as CEO.

The Board of Directors removes Guth from the Pepsi payroll after he plans to personally acquire a
competing cola.

1940--Pepsi-Cola Company makes advertising history with "Nickel, Nickel," the first advertising jingle
ever broadcast nationwide on radio.

1941--The New York Stock Exchange trades Pepsi's stock for the first time.

In support of the war effort, Pepsi's bottle crown colors change to red, white, and blue.

1943--Pepsi's theme line becomes "Bigger Drink, Better Taste."

1948--Corporate headquarters moves from Long Island City, New York, to midtown Manhattan.

1950--Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steele's wife, Hollywood movie
star Joan Crawford, is instrumental in promoting the company's product line.

Pepsi receives its new logo, which incorporates the "bottle cap" look. The new logo is the fifth in Pepsi

1953--"The Light Refreshment" campaign capitalizes on a change in the product's formula that reduces
caloric content.

1955--Herbert Barnet is named President of Pepsi-Cola.

1959--Pepsi debuts at the Moscow Fair. Soviet Premier Khrushchev and U.S. Vice President Nixon share a
1960--Young adults become the target consumers and Pepsi's advertising keeps pace with "Now it's Pepsi,
for those who think young."

1962--Pepsi receives its new logo, the sixth in Pepsi history. The 'serrated' bottle cap logo debuts,
accompanying the brand's groundbreaking "Pepsi Generation" ad campaign.

1963--After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall is named CEO of
Pepsi-Cola Company.

Pepsi-Cola continues to lead the soft drink industry in packaging innovations, when the 12-ounce bottle
gives way to the 16-ounce size.

Twelve-ounce Pepsi cans are first introduced to the military to transport soft drinks all over the world.

1964--Diet Pepsi, America's first national diet soft drink, debuts. Pepsi-Cola acquires Mountain Dew from
the Tip Corporation.

1965--Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and Pepsi-Cola merge,
forming PepsiCo, Inc.

Frito-Lay and Pepsi Join

In February 1965, the Board of Directors for Frito-lay, Inc. and Pepsi-Cola announced a plan for the merger
of the two companies. On June 8, 1965, the merger of Frito-Lay and Pepsi-Cola Company was approved by
shareholders of both companies, and a new company called PepsiCo, Inc. was formed. At the time of the
merger, Frito-Lay owned 46 manufacturing plants nationwide, had more than 150 distribution centers
across the United States, and was listed on the New York Stock Exchange. In 1998, PepsiCo acquired
Tropicana; and in 2001 acquired The Quaker Oats Company.

Frito-Lay Today

Today, Frito-Lay has more than fifteen $100 million brands: LAY'S®, FRITOS®, CHEE.TOS®, BAKEN-
Bars®, Quakes® and Fruit & Oatmeal Bars®.

Military 12-ounce cans are such a success that full-scale commercial distribution begins.

Mountain Dew launches its first campaign, "Yahoo Mountain Dew...It'll tickle your innards."

1970--Pepsi leads the way into metrics by introducing the industry's first two-liter bottles. Pepsi is also the
first company to respond to consumer preference with light-weigh, recyclable, plastic bottles. The Pepsi
World headquarters moves from Manhattan to Purchase, NY.

1974--First Pepsi plant opens in the U.S.S.R.

Television ads introduce the new theme line, "Hello, Sunshine, Hello Mountain Dew."

1976--Pepsi becomes the single largest soft drink brand sold in American supermarkets.
The campaign is "Have a Pepsi Day!" and a classic commercial, "Puppies," becomes one of America's best-
loved ads. As people get back to basics, Pepsi is there as one of the simple things in life.

1977--At 37, marketing genius John Sculley is named President of Pepsi-Cola.

1978--The company experiments with new flavors. Twelve-pack cans are introduced.

1980--Pepsi becomes number one in sales in the take home market.

1981--PepsiCo and China reach agreement to manufacture soft drinks, with production beginning next

1982--Pepsi Free, a caffine-free cola, is introduced nationwide. Pepsi Challenge activity has penetrated
75% of the U.S. market.

1983--Mountain Dew launches the "Dew it to it" theme.

1984--Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New Generation."

Lemon Lime Slice, the first major soft drink with real fruit juice, is introduced, creating a new soft drink
category, "juice added." In subsequent line of extensions, Mandarin Orange Slice goes on to become the
number one orange soft drink in the U.S.

Diet Pepsi is reformulated with NutraSweet (aspertame) brand sweetener.

1985--After responding to years of decline, Coke loses to Pepsi in preference tests by reformulating.
However, the new formula is met with widespread consumer rejection, forcing the re-introduction of the
original formulation as "Coca-Cola Classic."

The cola war takes "one giant sip for mankind," when a Pepsi "space can" is successfully tested aboard the
space shuttle.

By the end of 1985, the New Generation campaign earns more than 58 major advertising and film-related

1986- 7up international is acquired in Canada.

Pepsi-Cola acquires Mug Root Beer.

1987--Pepsi-Cola President Roger Enrico is named President/CEO of PepsiCo Worldwide Beverages.

Pepsi-Cola World Headquarters moves from Purchase to Somers, New York.

After a 27 year absence, Pepsi returns to Broadway with the lighting of a spectacular new neon sign in
Times Square.

1988--Craig Weatherup is appointed President/CEO of Pepsi-Cola Company.

1989--Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation Ahead."

Chris Sinclair is named President of Pepsi-Cola International.
Pepsi-Cola introduces an exciting new flavor, Wild Cherry Pepsi.

1990--American Music Award and Grammy winner rap artist Young MC writes and performs songs
exclusively for national radio ads for Pepsi. Ray Charles joins the Pepsi family by endorsing Diet Pepsi.
The slogan is "You Got The Right One Baby."

1991--Craig E. Weatherup is named CEO of Pepsi-Cola North America, as Canada becomes part of the
company's North American operations.

Pepsi introduces the first beverage bottles containing recycled polyethylene terephthalate (or PET) into the
marketplace. The development marks the first time recycled plastic is used in direct contact with food in

1992--Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding "Choice of a New

Pepsi-Cola and Lipton Tea Partnership is formed. Pepsi will destribute single serve Lipton Original and
Lipton Brisk products.

Crystal Pepsi: a refreshing, clear soda that is caffine free, has 100% natural flavors, no preservatives and is
low in sodium, goes national.

Mountain Dew introduces the popular theme line, "Get Vertical."

1993--Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi."

Pepsi-Cola profits surpass $1 billion.

Pepsi introduces an innovative 24-can multipack that satisfies growing consumer demand for convenient
large-size soft drink packaging. "The Cube" is easier to carry than the traditional 24-pack and it fits in the

1994--New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO Craig
Weatherup explaining the relationship between freshness and superior taste to consumers.

Pepsi Foods International and Pepsi-Cola International merge, creating the PepsiCo Foods and Beverages

1995--In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the year's
national advertising championship.

1996--In February of this year, Pepsi makes history once again, by launching one of the most ambitious
entertainment sites on the World Wide Web. Pepsi World eventually surpasses all expectations, and
becomes one of the most landed, and copied, sites in this new media, firmly establishing Pepsi's presence
on the Internet.

1997--In the early part of the year, Pepsi pushes into a new era with the unveiling of the GeneratioNext
campaign. GeneratioNext is about everything that is young and fresh; a celebration of the creative spirit. It
is about the kind of attitude that challenges the norm with new ideas, at every step of the way.
PepsiCo. announces that, effective October 6th, it will spin off its restaurant division to form Tricon Global
Restaurants, Inc. Including Pizza Hut, Taco Bell, & KFC, it will be the largest restaurant company in the
world in units and second-largest in sales.

1998--Pepsi celebrates its 100th anniversary.

PepsiCo. Chairman and CEO Roger A. Enrico donates his salary to provide scholarships for children of
PepsiCo employees.

Pepsi introduces PepsiOne - the first one calorie drink without that diet taste!

2000--Although Pepsi is a great place to work, Steven Truitt (aka 'struitt') takes his skills and hard work
elsewhere (for more money of course!), therefore putting an end to his Pepsi page! For more information
about Pepsi, choose a search engine and search for 'Pepsi' or visit or


Pepsi is known in the marketing world as a convenience product, one that is purchased without much
consideration. So how is it decided which brand of soft-drink to buy? Annually, soft-drinks are a $5 billion
business that is why the techniques for marketing and ensuring Pepsi's purchase are so important.

In response to last year's success of the Pepsi Stuff Campaign, on May 13, 1997 they unveiled "Pepsi Stuff
'97." This is a promotion in which you buy Pepsi products, receive points on the boxes and cans, and then
redeem them for items in their catalogue. Pepsi was very successful last year with this campaign, attracting
over 30 million participants. One major problem though was 21 year old John Leonard taking serious a
television commercial that jokingly offered a military

jet as a prize for 1 billion Pepsi points. Pepsi points were also purchasable, so Leonard rounded up five
investors to purchase enough points to acquire the jet. Pepsi is now involve in a legal battle over this
matter, even though the Pentagon has stated it is not possible to buy one of the jets. Taking into account the
controversy of the jet, Pepsi has taken consideration to offer prizes in "Pepsi Stuff '97" that are legally
attainable. They include "Fantasy Stuff" prizes, such as throwing out the first pitch at a World Series game
or feeding the ball to Shaquille O'neal for a $25,000 slam-dunk.

Success in the soft-drink market also involves forming strategic alliances with companies to capture market
share. Pepsi has secured two major deals this year, one with Warner Brother's International Theaters, and
the other with Major League Baseball. The Warner Brother's alliance gives Pepsi exclusive pouring rights
at all existing and projected Warner Brother's International Theaters. This includes 358 movie screens at 43
theaters in 6 countries, including: Great Britain, Spain, Germany, Portugal, Italy, and Japan. The
significance of this deal according to Vince Gennaro, President of the Fountain Beverage Division at Pepsi,
"Nearly half on the world's movie fans are between the ages of 15 and 24. Together with Warner Brother's,
we intent to inject a whole new dimension of excitement into their regular trip to the multiplex."

Pepsi's five year deal with Major League Baseball gives them exclusive rights to use baseball's trademarks
and team logos in al advertising, packaging, merchandising, and promotions. Pepsi has forged a reputation
as appealing to the teenage audience, which is why Major League Baseball believes its deal with Pepsi will
attract a younger audience, which was partially lost due to aggressive marketing campaigns by pro football
and basketball, as well as the 1994 strike.

"Project Blue" is an international venture the Pepsi hopes will transform its international marketplace
presence. It represents a $500 million investment, including the system-wide conversion of bottles and
cans, coolers and vending machines, as well as trucks and other transports. The new design features a
striking blue "grid" background; bold vertical typography; and a three dimensional globe that evokes the
company's "ball" icon. Currently Coca-Cola is associated with red, which is why Pepsi is attempting to
create brand association and awareness with the color blue. According to John Swanhaus, Pepsi-Cola
Company's Senior Vice President of International Sales and Marketing, "Blue is modern and cool, exciting
and dynamic, and most importantly it's a color that powerfully communicates refreshment. Ultimately, we
believe that owning blue will give us a significant competitive advantage in the marketplace.

Pepsi, with their aggressive marketing, also engage in creative ventures. Three such cases include an
innovative web site, the world's first commercial in space, and buying screensaver ad space in schools. The
web site, called Pepsi World, combines breakthrough technology with powerful content. If features movie
previews, origin al interactive games, first-run articles, new music, digital art, national Net-Promotions and
more. This site allows Pepsi to aggressively market their brand name in a revolutionary way. The site is
constantly being re-invented to remain at the forefront of the Cyberculture.

Pepsi is also breaking ground by filming the world's first commercial in space. It is part of Pepsi's
partnership with the Russian Mir Space Station. For the ad, two cosmonauts film the deployment of a large-
scale replica of Pepsi's new blue can, which was described in the "Project Blue" section. The can itself is
actually a fully orbital spacecraft built by International Space Enterprises.

Products and brands of Pepsi

PepsiCo has hundreds of brands around the world the well known brands of Pepsi are as follows:-

1. Frito-lay brands

2. Pepsi-cola brands

3. Gatorade

4. Tropicana Brands

5. Quaker Brands

Frito-lay brands

Frito-Lay offers a wide variety of fun foods and sensible snacks to satisfy your snacking needs. From
mouth-watering potato chips and corn chips, to hardy pretzels, and savory cookies, Frito-Lay has a snack
for you!


BAKED! CHEETOS Crunchy 100


BAKED! LAY’S BBQ Flavor Potato Crisps

BAKED! RUFFLES Original Potato Crisps

Pepsi-cola brands

Pepsi-Cola most commonly called Pepsi, is a soft drink produced by PepsiCo which is sold worldwide in
stores, restaurants and vending machines. The brand was trademarked on June 16, 1903, though the drink
was first made on August 28, 1898, by pharmacist Caleb Bradham. Similar to Coca-Cola, its major rival,
Pepsi was originally intended to cure stomach pains.

There are several variants of Pepsi, including Diet Pepsi (the most popular variant), Pepsi Vanilla, and
outside the United States, Pepsi Max.


• Pepsi-Cola

• Caffeine Free Pepsi

• Diet Pepsi

• Mountain Dew

• Diet Mountain Dew

• Pepsi Vanilla

• Lipton Brisk (Partnership)

• Lipton Iced Tea(Partnership)

• Dole juices and juice drinks (License)

• Aquafina purified drinking water

• SoBe juice drinks, dairy, and teas


Start your day with the perfect combination of fresh squeezed taste and invigorating nutrition.
Tropicana Pure Premium is not-from-concentrate, which means it's 100% juice with no water added. Plus,
an 8oz glass counts as two servings of fruit* and provides a full day's supply of Vitamin C. So add taste and
nutrition to your morning with a delicious glass today.

Available in a variety of flavors, Tropicana Pure Premium is available in Orange Juice, Grapefruit Juice,
and Orange Juice Blended Flavors. Look for Tropicana Pure Premium in a package size to meet your
needs: 8oz, 10oz, 14oz, 16oz, 32oz, 64oz, 96oz, 128oz and our 59oz Carafe!

• Tropicana Pure Premium juices

• Tropicana Twister juice drinks

• Tropicana Smoothies

• Dole juices (License)


• Gatorade Thirst Quencher

• Gatorade Frost Thirst Quencher

• Gatorade Ice Thirst Quencher

• Gatorade Fierce Thirst Quencher

• Propel Fitness Water

Quaker Brands

You know us by our brands, which have been around for as long as a century. They are symbols of quality,
great taste, and nutrition. Holding No.1 positions in their respective categories are favorites such as Quaker
Oats, Quaker Rice Cakes, Chewy Granola Bars and Rice-A-Roni®. With its Aunt Jemima® brand, Quaker,
a unit of PepsiCo Beverages & Foods, is also a leading manufacturer of pancake syrups and mixes. It is
among the four largest manufacturers of cold cereals with popular brands like Cap’n Crunch® and Life®.


• Quaker Oatmeal
• Life cereal

• Quaker rice snacks (Quakes)

• Quaker rice cakes

Products Available in Pakistan

Mountain Dew is a caffeinated sweet citrus-flavored soft drink produced by PepsiCo, Inc. It was invented
in Marion, VA and first marketed in Knoxville, Tennessee in 1948, and across the United States in 1964.
When removed from its characteristic green bottle, Mountain Dew is bright green-yellow and cloudy.
Unlike lemon-lime soft drinks such as Sprite, 7 Up, or Sierra Mist, Mountain Dew contains concentrated
orange juice. The closest imitator is Coca Cola's Mello Yello

Ingredients Contains: Carbonated water, high fructose corn syrup, concentrated orange juice and other
natural flavors, citric acid, sodium benzoate (preserves freshness), caffeine, sodium citrate, gum arabic,
erythorbic acid (preserves freshness), calcium disodium EDTA (to protect flavor), brominated vegetable
oil, and yellow 5.

Today's marketing target is radically different. The drink is mainly marketed to people in the 20-30 year old
demographic group, and Mountain Dew advertising creates a connection between the drink and extreme
sports. The name Mountain Dew was first trademarked by two brothers, Barney and Ally Hartman, who ran
a bottling plant in Knoxville, Tennessee.

Aqua Fina

Aqua Fina is pure water for drinking. Pepsi uses their own water treatment facilities to purify municipal tap
water used in making soft drinks. Municipal tap water passes through a reverse osmosis process, pushing
already filtered tap water at high pressure through fiber glass membranes to remove even the tiniest
particles. Then carbon filters removed chlorine and any other particles that might give the water any taste
or smell. However all this filtering removed even good particles that killed bacteria. So Pepsi had to add
ozone to the water to keep bacteria from growing. The result is Aqua fina water with no taste or odor. Pepsi
believes that aqua fina will compete with the spring waters already in the market. Further Pepsi licenses its
bottlers to use the Aquafina name and sell them the filtration equipment. Because the process used tap
water that is relatively inexpensive, Pepsi’s aqua fina competes well on price with the spring waters.

Pepsi-Cola, most commonly called Pepsi, is a soft drink produced by PepsiCo which is sold worldwide in
stores, restaurants and vending machines. The brand was trademarked on June 16, 1903, though the drink
was first made on August 28, 1898, by pharmacist Caleb Bradham.

There are many variants of Pepsi, including Diet Pepsi, Pepsi Max, Pepsi Samba, Pepsi Blue and Pepsi


Type Cola

Manufacturer PepsiCo, Inc.

Country of Origin USA Introduced 1903

Related products



Lay's is the brand name for a number of potato chip varieties as well as the name of the company that
founded the chip brand in 1938. Lay's chips are marketed as a division of Frito-Lay, a company owned by
PepsiCo Inc. since 1965. Other brands in the Frito-Lay group include Fritos, Doritos, Ruffles, Cheetos and
Rold Gold pretzels.

As a snack food, the Lay's brands contain very few vitamins and minerals in any variety. At ten percent of
the daily requirement per serving, vitamin C is the highest. Salt content is particularly high, with a serving
containing as much as 380 mg of salt.

A one ounce (28 gram) serving of Lay's regular potato chips has 130 calories and contains ten grams of fat,
with three grams of saturated fat. Kettle cooked brands have seven to eight grams of fat and two grams of
saturated fat but are 140 calories. Lays Natural has nine grams of fat, two grams of saturated fat and 150
calories. Stax typically contain ten grams of fat, 2.5 grams saturated fat and are 160 calories per serving.
Wavy Lays are identical to the regular brand except for a half-gram less of saturated fat in some
combinations. The various brands do not contain any trans fats.

The baked variety feature 1.5 grams of fat per one ounce serving, and have no saturated fat. Each serving
has 110 to 120 calories. Lay's Light sevings are 75 calories per ounce and have no fat.

Cheetos are a crunchy, cheese-flavored snack made from cornmeal introduced by Frito-Lay in 1948, and
currently sell about one billion bags per year in a number of countries. In some markets they are popular
enough that the word "Cheetos" is often used as a generic term for any similar cheese puffs snack food, but
it is, in fact, trademarked by the Frito-Lay company.

Cheetos are made in many different styles. There are "Crunchy Cheetos", which are fried. Some Cheetos
are baked in ovens; for instance, Cheetos Puffs, Cheetos Twists, Cheetos Paws, and Cheetos Whirls are all
"finished dryed" in very large throughput ovens.

Crunchy Cheetos with a sandwhich


Mirinda is a brand of soft drink, originally produced in Spain, available in fruit varieties including orange,
grapefruit, apple, strawberry, pineapple, and grape. It is part of a beverage area often referred to as the
flavor segment, which is comprised of carbonated or non-carbonated fruit-flavored beverages. Today, it is
likely that the orange flavor of Mirinda comprises the majority of Mirinda sales world-wide.

The name "Mirinda" originally means "admirable, wonderful"

Mirinda is owned by PepsiCo and is primarily commercialized outside of North America. It competes with
Coca-Cola's Fanta brand and with flavor brands local to individual countries. As with most soft drinks,
Mirinda is available in multiple formulations depending on the taste of individual markets.

Mirinda's primary formulation is as an artificially flavored beverage, however it has been produced in the
past with a percentage of fruit juice, usually due to local tax benefits tied to non-artificial juice ingredients.


Pepsi spends a huge amount on its promotions. The promotions of Pepsi include advertisements
Sponsorships of sporting events, musical shows and many more. The Objectives of Pepsi are:

1. Build strong brand equity.

2. To make sure that target consumer relates the ads with company products

3. To make the brand exciting for the target consumers.

It was all due to Pepsi heavy advertisements that consumers related Pepsi as an official sponsor for world
cup, 85% people associated Pepsi with cricket versus 54% for the coke. 80% consumers said that Pepsi
commercials are more attractive versus 28% for coke. 77% consumers said that Pepsi ads are more trendy
then only 22% for coke.

Advertisements of Pepsi

Pepsi spends a huge budget on advertisements. It uses celebrities from all around the world to promote its
products. Some of the entertainment celebrities used by Pepsi in the world includes:

1. Shahrukh Khan

2. Kareena Kapoor
3. Priyanka Chopra

4. Amitabh Bachan

5. Saif Ali Khan

6. Britney Spears

7. Ricky Martin

8. Reema

9. Jackie chen

10. Steven seagal

Some of the sport celebrities used by Pepsi in the world are:-

1) Inzamam ul haq

2) David Beckham

3) Meradona

4) Jeff Gordon

5) Ronaldenio

6) Roberto Carlos

Britney joins the Pepsi generation

Pop icon Britney Spears, 19, has signed a sponsorship deal with Pepsi.

The singer of Oops... I Did It Again and Baby One More Time will appear in Pepsi commercials and the
company will sponsor her next tour.

Michael Jackson earned a reported $5m (£3.4m) for his Pepsi collaboration in 1984.

Speaking at Pepsi headquarters in Purchase, New York, Spears called previous Pepsi endorsers like
Jackson, soul singer Aretha Franklin, country star Faith Hill and Ray Charles "all of my heroes".

"It's such an honor," she said. "I'm a big fan of Pepsi products and Pepsi commercials.

Dawn Hudson, Pepsi's senior vice president of strategy and marketing, said: "Britney is on the cutting edge
of contemporary, popular entertainment.

"She's youthful, inventive, optimistic and fun-loving - the ultimate fit with brand Pepsi."
Other sponsorship deals

Spears' deal is likely to be more in line with current star sponsorships such as golfer Tiger Woods, who will
reportedly earn $100m (£68.75m) over five years in a contract with Nike sports clothing.

Wimbledon winner Venus Williams has also just signed a contract reportedly worth $40m (£27.5m) with

Other Pepsi promoters include British pop stars Robbie Williams, The Spice Girls and Boy zone.

Pepsi secure one of the most lucrative sponsorships in sport

Pepsi Sponsors Pakistan Indian Cricket Series

Pepsi Beverages International announces contract to become Official FA Partner

The future of English football was enhanced today, as Pepsi announced a valuable partnership with the
Football Association to invest in the rising stars of the nation's game. As Official FA Partner in the
development of Youth Football, Pepsi will provide funding dedicated to supporting the emergence of the
David Beckhams' of the future.

This deal provides Pepsi with the platform to be at the heart of the national game for four years, up to and
including World Cup 2006. Pepsi joins this groundbreaking partner scheme alongside Carlsberg,
Nationwide, Umbro and McDonalds.

As FA Partner in Youth Football, Pepsi will become title sponsors to the FA Youth Cup and FA County
Youth Cup. Through this innovative scheme, Pepsi will support the new National Football Centre and the
long-term development of football at every level.

"Investing back in football is a key part of Pepsi's strategy. We have beneficial alliances with Manchester
United and Real Madrid, and strong long-term partnerships with players such as England captain David
Beckham," commented Karen Goffe, Director of Marketing, Pepsi UK. "We are passionate about providing
unique experiences and access through these relationships, and believe that this helps establish our position
as the number one soft drink in football."

"We are delighted to have a brand with the global stature of Pepsi supporting English football," said Paul
Barber, Director of Marketing and Communications of the Football Association. "Their investment will be
vital in sustaining the Football Association's work within the structure of youth football. This is a good day
for the nation's game."

"I am pleased for all sorts of reasons that Pepsi is to become an FA sponsor," said David Beckham, Captain
of the England Football Team. "I have worked with them on a personal level for over 5 years and really
respect their enthusiasm for football."

"Today's announcement is very important for the future of English football," commented England manager
Sven Goran Eriksson. "Pepsi's investment in the Football Association will ensure a sound structure for the
development of youth talent throughout England."

2003 will see a series of unique football experiences provided by Pepsi. The campaign kicks off with the
'OK Corral' advertising execution, set to launch next month. In the advert, Pepsi brings together some of the
world's greatest football stars including David Beckham and Roberto Carlos thanks to their sponsorship of
Manchester United and Real Madrid and individual deals with selected players.
Slogans of Pepsi

To promote the products of Pepsi the organization uses various slogans.Some of the slogans used in the
various years are as follows:-

Pepsi Slogans

1903 Exhilarating, Invigorating, Aids Digestion

1907 Original Pure Food Drink

1908 Delicious and Healthful

1915 For All Thirsts - Pepsi-Cola

1919 Pepsi-Cola - It Makes You Scintillate

1920 Drink Pepsi-Cola - It Will Satisfy You

1928 Peps You Up!

1929 Here's Health! 1932 Sparkling, Delicious

1933 It's the Best Cola Drink

1934 Double Size

1934 Refreshing and Healthful

1938 Join the Swing to Pepsi-Cola

1939 Twice as Much for a Nickel

1943 Bigger Drink, Better Taste

1947 It's a Great American Custom

1949 Why Take Less When Pepsi's Best

1950 More Bounce to the Ounce 1954 The Light Refreshment

1958 Be Sociable, Have a Pepsi

1961 Now It's Pepsi for Those Who Think Young

1963 Come Alive! You're in the Pepsi Generation

1967 Taste that Beats the Others Cold. Pepsi Pours It On.

1969 You've Got a Lot to Live. Pepsi's Got a Lot to Give
1973 Join the Pepsi People Feelin' Free

1976 Have a Pepsi Day

1979 Catch that Pepsi Spirit

1981 Pepsi's Got Your Taste for Life 1983 Pepsi Now!

1984 The Choice of a New Generation

1992 Gotta Have It 1993 Be Young, Have Fun, Drink Pepsi

1995 Nothing Else is a Pepsi

1997 Generation Next

1999 The Joy of Cola

2001 The Joy of Pepsi

2002 Think Young Drink Young

2003 It's the Cola

2005 Ask For More

2006 Why you Doggin' Me

2008 Pepsify Karo Gay














Mountain Dew slogans since Pepsi purchased Mountain Dew from the TIP Corporation in 1964:

1965 Yahoo Mountain Dew... It'll Tickle Your Innards 1969 Get That Barefoot Feelin' Drinkin' Mountain

1973 Put a Little Yahoo in Your Life

1974 Hello Sunshine, Hello Mountain Dew

1979 Reach for the Sun, Reach for Mountain Dew

1981 Give Me a Dew

1983 Dew it To it

1986 Dew it Country Cool. (Diet Dew also introduced this year)

1992 Get Vertical

2008 Do The Dew

PepsiCo has a corporation-wide commitment to the environment. PepsiCo is committed to providing a safe
and healthy environment for their employees as well as for the community. PepsiCo is dedicated to
designing, constructing, maintaining, and operating facilities that protect their people and their physical
resources. PepsiCo commitment to reducing the impact of their businesses on the environment through
conservation, recycling, and energy use programs that promote clean air and water and reduce landfill

PepsiCo's dedication and commitment to the environment is stated in their "Worldwide Code of Conduct".
The "Worldwide Code of Conduct" defines PepsiCo's commitment based on the following environmental

1. Business is conducted by complying with all applicable laws and regulations and provides a safe and
healthy environment.

2. Minimizing the impact of our businesses on the environment through methods that are socially
responsible, scientifically based and economically sound, such as recycling and conservation.

3. Developing programs that promote clean air and water, energy conservation, and reduce land fill waste.

4. By supporting programs that educate, train and motivate employees to help the environment.

5. By cooperating with different organizations and governments to find solutions that reduces pollution and
by supporting environmental policies


Pricing is one of the four p's of the marketing mix. The other three aspects are product management,
promotion, and place. It is also a key variable in microeconomic price allocation theory.

Pricing is the manual or automatic process of applying prices to purchase and sales orders, based on factors
such as: a fixed amount, quantity break, promotion or sales campaign, specific vendor quote, price
prevailing on entry, shipment or invoice date, combination of multiple orders or lines, and many others.
Automated systems require more setup and maintenance but may prevent pricing errors.
Price is the amount of money and/or other items with utility needed to acquire a product. Every marketing
activity – including pricing should be directed towards a goal. Thus management should decide on its
pricing objective before determining the price itself.

PepsiCo sets the prices of its products according to the prices of its competitors

PepsiCo always try to sell its products at reasonable prices. The products of Pepsi are easily available and
are sold at affordable prices all over the world. The main objective of pepsi is to make its products
available for all classes of people.

Pepsi also sells its products at discount prices at special occasions. For instance PepsiCo reduces the price
of its 2.5l bottle of Pepsi from forty five rupees to forty rupees during the Ramadan and the Eid seasons.
This increases the sales of Pepsi during the Ramadan and Eid seasons. During the summer season the prices
of Pepsi goes high and decreases in the winter season. The increase in the price of Pepsi during the summer
is due to its increase in consumption.

Pepsi sets the prices of its products in accordance with the prices of its competitors mainly the coca cola
company. To increase its sales Pepsi introduced a 2.5L jumbo bottle of Pepsi at 50 R.S. Thus people get an
extra 0.5 L of Pepsi for an increase in just 5 R.S.

In Pakistan the snack products introduced by PepsiCo include Kurkura, Lays and Cheetos. The prices of
these products are relatively low as compared to their rivals. For example a box of Pringles cost about 95
R.S but a large pack of Lays is for R.S 20. Lays has also introduced a smaller pack of R.S 10. Kurkura is a
new product launched by PepsiCo. The introductory price of Kurkura is R.S. 20 and it comes in two
flavors. The Main competitor of Aqua life pure drinking water is Nestle. The prices of nestle drinking water
bottle of volume 500 ml is R.S 10 whereas the price of Aquafina bottle of volume 500 is also R.S 10.
Olpers is the milk introduced by PepsiCo. The main competitors of Olpers milk include good milk, Haleeb,
Nurpur and Nestle. All these fall in the same price line.


PepsiCo products Price(Rs) Competitors products Price(Rs)

Pepsi 250ml

12 Coke 250ml 12

Pepsi 500ml 25 Coke 500ml 25

Pepsi 1 liter 30 Coke 1 liter 30

Pepsi 1.5 liter 50 Coke 1.5 liter 50

Pepsi jumbo 60 Coke jumbo 60

Aquafina 500 15 Nestle 500 15

Aquafina 1.5 L 25 Nestle 1.5l 25

Lays small pack 10 Super crisp small 10

Lays large pack 20 Super crisp large 20
Olpers small pack 14 Nestle milk small 14

Olpers large pack 42 Nestle milk large 42

Cheetoos 20 kolson 20

Kurkuray small 5 Slanty Small 5

Kukuray large 10 Slanty Large 10

Mountain dew 250 12

Sprite 250 12

Mountain dew 500 25 Sprite 500 25

Mountain dew 1.5l 50 Sprite 1.5 liter 50

Marinda regular 12 Fanta regular 12


Distribution is movement and product from manufacture to end user. Distribution objective of Pepsi is to
make pepsi available at an arms length i.e whenever we need pepsi it should be there at the stores and
outlets. As 250 ml is a convenience product, Pepsi and its bottlers are making extensive distribution. Pepsi
(Riaz Bottlers) uses the direct distribution method for distribution of its products.

Products are distributed without the help of middleman like distributors. Company owns its distribution
network.Products are distributed by company transport.

Incentives to Distributors

Pepsi gives some incentives to distributors or retailers. Most common are:

1. Free bottles for achieving target.

2. Provides freezers whose sales reaches a specific limit.

3. Rate discount

Credit Facilities

Usually credit facilities are not provided by the companies. Most sales are made on cash bases. The sales
man goes to retailers-outlet, take the empty bottles and replace them with new bottles and get the payments
but the credit facilities are given to few organisations like PIA, SHELL, CALTEX and AVARI. This credit
is short term.
Number of outlets:

In the initial stage the number of outlets were about 1 thousand now there are 15 thousand outlets in lahore.

Target market:

Pepsi targets both young and old. Pepsi claims that their targeted customers are satisfied with the products
and services they offer.

Place is a term that has a variety of meanings in a dictionary sense, but which is principally used in a
geographic sense as a noun to denote location, though in a sense of a location identified with that which is
located there. For instance, much has been written about the "sense of place", a well-known phenomenon in
human society in which people strongly identify with a particular geographical area or location. Another
instance of its use is as an identifier of a location that is noted for a particular characteristic, such as
Stonehenge defining its location as a unique place. It may refer to something as macroscopic as, say, New
York City, or something as specific as a spot on a shelf. However, in most Wikipedia articles that use it as a
link, it is referring to location in a geographic, and not a specific placement, sense.

Since 1982, Pepsi-Cola has conducted a structured program of purchasing quality products and services
from suppliers who are designated as Minority/Women Business Enterprises (M/WBEs).

The steadily increasing business with minority and women-owned firms has improved our company's
supplier base. It has also helped to strengthen the suppliers' firms as well as the minority community
infrastructure with regard to such benefits as employment, training, role-modeling, buying from other
minority and women-owned businesses, and supporting community organizations.

We're extremely proud of what our M/WBE program has accomplished. It has enabled us to enter into
partnerships with hundreds of firms whose contributions to our success have been enormous.

When it comes to business, minority and majority goals are more alike than different. It's up to us to
reaffirm those bonds and to act on them in ways that benefit us all.

Swot Analysis


1. Company Image:

It also is a reputable org. and is well known all over the world. Perception of producing a high quality

2. Quality Conscious:

They maintain a high quality as Pepsi Cola International collect sample from its different production
facilities and send them for lab test in Tokyo.

3. Good Relation with Franchise:

Throughout its history it has a good relation with franchisers working in different areas of the world where
they have the production facilities.

4. Production Capacity:
It has the highest production capacity i.e. 60,000 cases per day is not only in Pakistan but also in South

5. Market Share:

It has a highest market share i.e. 62% in Pakistan and leading a far step head from its competitors.

6. Large No. of diversity businesses:

This is also its main strength as it ahs diversity in many businesses such as

i. Pepsi beverages

ii. Pepsi foods

iii. Pepsi Restaurants.

7. High Tech Culture:

The whole culture and business operating environment at Pepsi-Cola-West Asia has quick access to a
centralized database an they use computers as business tools for analysis and quick decision making.

8. Sponsorships:

They mainly use celebrities in their advertising campaigning like Imran Khan, Wasim Akram, Waqar
Younas etc. Also sponsor social activates programme like music etc.


1. Decline in taste:

During the last years, it was published in Financial post that there has been big complaints from the
customers with regard to the bad taste that they experienced during the span of six months.

2. Political Franchises:

Such as in Pakistan, Hamayum Ahkhtar is its franchisee who has a strong political support from a political
party which is in opposition. In; their era in government less taxes are imposed on them but relation
increases as they come in opposition. So the selection is not appropriate as this thing is harmful to their
image as well as the strategies.

3. Short term Approach:

They have a lack of emphasis on this in their advertising such as currently when they losses the bid for
official drink in the 96 cricket world cup. They started a campaign in which they highlight the factor such
as “nothing official about it”.

4. Weak Distribution:

They lack behind in catering the rural areas and just concentrating in the urban areas.

1. Imitators:

They also have a problem of imitatiors as receives complaints from customers that they find take product in
disguised of Pepsi’s product.

2. Government Regulation:

They face problem if government employ taxes on them which force them to raise the price of their

3. Corporation’s shortage problem:

Again this is also a serious threat from it suppliers as if supplier is unhappy with the company. He may
reduce the supply and exploit the company. This action will surely affect the production process.


1. Increase Population:

As almost in all over the world growth rate is increasing which in turn increases the demand of products
and necessities and especially in Asia the market is growing at a faster rate as compare to other continents.
So they have to attract new entrants.

2. Changing social trend:

As in all over the world people are rushing towards fast food and beverage because of life which ahs
become much faster, it provide the company a favour to capture this fast moving market with its take away

3. Diversification:

They may enter in garments business in order to promote their brand mane, by making sports cloths fro
players which represent their name by wearing their clothes.