...PepsiCo's Lays, Kurkure lose market share to local players like Yellow Diamond and Balaji Ratna Bhushan, ET Bureau Nov 23, 2012, 10.04AM IST Tags: Sequoia|private equity|PepsiCo Foods|Pepsi|Nielsen|Market|Lays|Kurkure|ITC|FritoLay India|FritoLay|DFM Foods|chips|Bingo (PepsiCo's Kurkure and Lays…) NEW DELHI: Top snacks maker PepsiCo Foods has started slipping with a slew of smaller and regional brands eating into the market share of its flagship brands Kurkure snacks and Lays potato chips. Kurkure and Lays, which dominate the Rs 9,400-crore Indian snacks market, have begun losing share to regional players such as Gujarat-based Balaji, Indore's Yellow Diamond and DFM Foods' Crax in addition to some variants of ITC's Bingo snacks, which are matching the multinational on pricing, variants and regionalisation. Industry official quoting Nielsen data said both Kurkure and Lays' market shares slipped 2-3% in the April-September period, while some others like ITC's Bingo, Balaji, Parle and even Yellow Diamond have gained. Nielsen data also shows that PepsiCo Foods' ( FritoLay India) share in overall western snacks has slipped to 40% last fiscal from 48% in 2009-10. A PepsiCo spokesperson said the company doesn't comment on market shares, which "fluctuate from quarter to quarter". "This year we have further strengthened our market position in all potato chips, Kurkure, baked snacks and traditional namkeen that we operate in, with more than 25 new launches including...
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...Paulo Nazario, Onur Saka and Juliette Clark International Business Policies and Strategies, Winter Quarter 2011 11/29/11 CASE 11: PepsiCo’s Diversification Strategy in 2008 Page 1 1. BACKGROUND INFORMATION Time Country(s) Involved Key Individuals & frame MileStones Titles 1965- Headquarters in Indra Krishnamurthy 2008 Purchase, New York, Nooyi, Chairman of USA. Operations the Board and CEO (2006-). global in scope. Steven Reinemund (CEO 2001-2006). Roger Enrico (CEO 1996-2001). Donald Kendall and Herman Lay, Founders. Company Type & Size PepsiCo is a publicly traded company, listed on the NYSE, NASDAQ, and as a component of the S&P 500. In 2010 it had 294,000 employees worldwide. As of November 2011, it had a market cap of $101.02 billion. 1965 Merger with Frito-Lay CEO of Pepsi Cola, and engineer of PEPSICO Merger, Donald Kendal Diversification outside snacks and beverages Acquisition of Pizza Hut, Taco Bell, KFC Acquisition of 7UP, Mug Root Beer, SunChips, Introduction of Aquafina - 1993 Portfolio Reconstruction Roger Enrico, CEO (1996-2001) Wayne Colloway, CEO (1986-1996) "Potato chips make you thirsty; Pepsi satisfies thirst." Donald Kendall on merger. 1970s 1980s ‘Balanced three leg stool’ describes Wayne Colloway, however, strategic fit problems occurs 1990s Bottled water business starts. 1997 Due to several strategic fit problems, restaurant businesses have been spun off to form Tricon, later Yum! Brands. FTC’s bans to jointly distribute Gatorade with Pepsi...
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...CSR CASE STUDIES Abbott Laboratories Abbott Laboratories is a global healthcare company with more than 70,000 employees worldwide and operations in over 130 countries. The Chicago-based company develops and produces nutritional products, laboratory diagnostics, medical devices and pharmaceutical therapies. Its vision and mission focus on improving people's lives by providing cost effective healthcare products and services. Abbott Pakistan started operations as a marketing affiliate of Abbott Laboratories in 1948. Today, it has 1,346 employees and two manufacturing facilities at Landhi and Korangi in Karachi. Continuous innovation, research and development at Abbott's worldwide facilities enable Abbott Pakistan to offer products and services focused on improving healthcare in line with the changing needs of its customers. The company is also working on implementing its global CSR standards in Pakistan, and actively supports and participates in disaster relief efforts and activities. “We view our commitment to global citizenship not only as a business responsibility, but also as an opportunity to improve lives around us. Caring is one of our core values and is all about making a difference in people’s lives. We have contributed to improving lives for more than 50 years, while strengthening the company and its communities for future generations,” says Asif Jooma, Managing Director at Abbott Pakistan. Atlas Honda Atlas Honda Limited (AHL) is the leading manufacturer of motorcycles...
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... 318 DEVKUMAR MISTRY 327 JINALI SHAH 337 HISTORY Founded in the year 1980, by Mr Abhinav mistry, White‘n’Black is one of India’s most prestigious ad agencies. The founder Mr Abhinav started his career as a cartoonist in the newspaper “Dainik Bhaskar”. On the birth of their son, Dev Kumar, on December 1980, the Mistry family inaugurated their main headquarters in Delhi. As newspapers and pencils were a main part of his life, Mr Mistry decided to name his company White ‘n’ Black. Today the company boasts of a clientele of names such as Coca Cola, Fritolay and many more with the son now holding the reins. CLIENTELE Johnson & Johnson Airtel Axe deodorant Coca cola Fritolay Maruti SX4 Amul Imperial blue soda Jockey Snap deal.com Saffola oil Tropicana Cadbury Airwick L’oreal Parle-G Britannia Parker Raymond SUCCESS We believe that excellence in an organisation stems from its people. It is the talent combined with passion and integrity that makes a place successful. At White ‘n’ Black, the thing we care most about is ‘dedication’. After all, dedication is what touches the hearts and minds of customers. Dedication is what leads to sale. Dedication is what strengthens customer relations. Dedication is something which we create within us to reach the customer. Dedication...
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...PepsiCo analysis: Internal and External Analysis of the Company Suheir Shalabi Missouri Baptist University PepsiCo analysis: Internal and External Analysis of the Company PepsiCo. What people think of it? Do they think it is only beverage drinks’ company? Do they really know that PepsiCo go beyond beverage drinks to add in cookies, chips and may other snacks? Being advanced in more than beverage drinks can explain PepsiCo strategies. According to their web-site, PepsiCo strategies are, Expand the global leadership position of our snacks business. Ensure sustainable, profitable growth in global beverages, unleash the power of "Power of One", rapidly expand our "Good-for-You" portfolio, continue to deliver on our environmental sustainability goals and commitments, cherish our associates and develop the leadership to sustain our growth. (PepsiCo, 2015) In addition to their strategies, PepsiCo develop their mission statement to match out their strategies in order to be able to gain success. As their web-site cited, their mission statement is: 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 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. (PepsiCo, 2015). Most people agree that PepsiCo have competitive...
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...Running Header: Frito-Lay Frito-Lay Capella University MBA 6118 TO: Frito Lays Executive DATE: January 24, 2015 SUBJECT: International Marketing Multinational corporations are transforming themselves by repositioning and rethinking their goods and services to tap into and capture the new global middle-class market. This worldwide economic phenomenon encompasses a huge customer base (International Marketing, 2012). Market research and analysis show that the proposed advertising media for Frito Lays line need to be reprioritized and changed for international expansions. Findings from focus groups and surveys have made it apparent that we need to update our advertising efforts to align them with the international markets of today. Also, it is has become increasingly important to use the Internet as a tool to communicate with our target audience to show our dominance in the snack industry. In attempts to attack the market and the fight against entrance into a new market and the newly fade of health food snacks. One idea that has come up during discussions is for Frito Lay’s to changing the name before entering into newer international markets. Donald Yacktman of Yacktman Funds, has suggested that PepsiCo rename itself Frito-Lay to reflect the growing importance of that business, and others like Nelson Peltz and Relational Investors have agitated for it to uncouple the snacks business from the drag of its beverage operations, has slowed as consumer tastes migrate to...
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...Chaitali Chakravarty, ET TEAM Nov 21, 2001, 10.02pm IST enthused by the profits that fritolay has generated, parent pepsi, is adding more to its snackfood subsidiary. the company is set to roll out a new nut-based snack, nutyumz, nationally. also, plans are afoot to eventually drop lehar from the lehar kurkure brand. sources said that lehar kurkure has been earning a substantial amount for fritolay (it accounts for more than one-third of its total turnover) and it is about time to market it under the kurkure brand alone. sources said that nutyumz will be launched in different flavours. the brand has been innovated for the indian market alone. besides india, mexico is the only other market where pepsi is selling nut-based snacks under a different brand name. in india, nutyumz will be manufactured in the company-owned plant in pune. the fritolay spokesperson confirmed the launch of new brand. sources said pepsi is gung-ho about fritolay as the subsidiary has been making some money, it ended the year 2000 with a rs 4 crore profit, up from rs 3.04 crore earned in the year ending 1999. pepsi's idea is to create new categories to suit indian tastes and pump up the profit figures by at least rs 2 crore by the end of 2002. sources said that after pepsi acquired uncle chipps, it got within its fold an entire constituency. lays and uncle chipps together earn the maximum (around 50 per cent) for fritolay, while cheetos and lehar namkeen are still on the fringes. pepsi is yet to measure up...
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...------------------------------------------------- Abstract: The case, 'Kellogg's Indian Experience' analyzes the causes that led to the failure of the Kellogg breakfast cereal brand in the Indian market. The case examines the measures the company adopted on the marketing front to rectify its mistakes and at the efficacy of these measures. | ------------------------------------------------- Issues: » Enable students to see how mistakes on the pricing, positioning and distribution fronts led to Kellogg's poor performance in the initial stages Market Many people view breakfast as the most important meal of the day. Research shows that 96% of the UK population eat or drink something for breakfast and 49% start the day with ready-to-eat cereals. This signifies a huge change in UK breakfast eating habits over the last twenty years. In 1968 approximately half the population tucked into a cooked breakfast on a regular basis, but, by 1990 this had dropped to an estimated 10%. This change can be attributed to increasingly busy lifestyles and an awareness of the importance of healthy eating. However, hectic lifestyles can mean breakfast is often sacrificed to keeping to a tight timetable. The major challenge facing cereal companies today is to persuade consumers that eating cereals is both convenient and beneficial at breakfast time or at any time of the day. In terms of volume, the UK is the largest consumer of cereals in Europe. In 1999, the market was valued at £944 million...
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...Thompson−Strickland: Strategic Management: Concepts and Cases, 13th Edition 23. PepsiCo’s Acquisition of Quaker Oats Case © The McGraw−Hill Companies, 2002 1 case 23 PepsiCo’s Acquisition of Quaker Oats John E. Gamble University of South Alabama In 2001, PepsiCo was the world’s fifth-largest food and beverage company, with such brands as Lay’s, Tostitos, Mountain Dew, Pepsi, Doritos, Aquafina, and Lipton contributing to revenues of approximately $26 billion. PepsiCo’s revenues had reached $31 billion in 1996, but a new corporate strategy embarked upon in 1997 slimmed the company’s portfolio from a collection of fast-food restaurants, snack foods, and beverages to a sharply focused lineup of convenience foods and beverages. Between 1997 and 1999, CEO Roger Enrico spun off Kentucky Fried Chicken (KFC), Taco Bell, and Pizza Hut as one independent, publicly traded company; created a stand-alone softdrink bottling business through an initial public offering; and entered additional snack and beverage categories with the acquisitions of Cracker Jack and Tropicana. Enrico’s focus on convenience foods and beverages placed PepsiCo in food and beverage categories that grew at twice the 2 percent industry growth rate and gave it a 2-to-1 market share lead over its nearest competitor in the convenience food and beverage industry. Roger Enrico and Quaker Oats Company’s CEO, Robert Morrison, jointly announced on December 4, 2000, that PepsiCo would acquire Quaker Oats...
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...has a long and rich history. The drink is the Invention of CALEB BRADHAM a pharmacist and drug store New Bern North Carolina. The summer of 1898 was hot in New Bern North Carolina. So a young pharmacist named CALEB BRADHAM began experiment with combinations of spices, juices and syrups, to create a refreshing new drink to serve his customers. He succeeded beyond all expectations because he invented the beverage known around the world as Pepsi-Cola. At first the drink was named “Braid’s Drink” Caleb decided to rename It Pepsi-Cola and sales started to grow convincing him that he should Form a company to market the new beverage. PRODUCTS OF PEPSI COMPANY: MOUNTAIN DEW MIST AMP ENERGY DRINKS PEPSI IN BOTTLES AND CANS FRITOLAY WALKERS, BAKED TOSTITOS, DORITOS, LAYS TROPICANA: ORANGE JUICES, GRAPE, TWISTER, DOLE, DOLE SENSATION QUAKER: RICE PILAF CAP’N CRUNCH, RONI MACRONI GATORADE: 12oz to 32 oz Drink SERVICES: Shareholder Information, Buy direct plan, direct deposits of dividends, Dividend reinvestment, optional cash investment MAJOR CUSTOMERS: The customers include authorized bottlers and independent distributors, including foodservices distributors and retailers throughout United States as well as Asia, Middle East, and Africa. COCA COLA: A BRIEF HISTORY OF COCA COLA In May 1886 Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta...
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...Article 2 Sustainable Plant of the Year: Frito-Lay Casa Grande Plant Attains Near Net Zero Efficiency was built into Frito-Lay’s Casa Grande plant a quarter-century ago, but the snack maker takes the facility’s energy- and water-conservation systems to a new level with near net zero. Is it feasible for food or beverage production ever to be resource neutral, consuming no more gas, electricity, water and other utilities than what it generates itself? Perhaps theoretically, but not as a practical matter. Still, placing sustainable manufacturing in the context of assuring resource availability so operational capabilities are maintained, regardless of external disruptions, is intriguing. What would a food plant with net-zero impact look like? A close proximity sprawls across 283 acres of the Sonoran desert in Arizona. Part learning lab, part sustainability showcase, the Frito-Lay facility in Casa Grande is the focus of the snack food manufacturer’s ambitious goal of creating a blueprint for sustained production in a resource-strapped tomorrow. Most of the energy-generation and water-reclamation technology in Casa Grande can be found elsewhere in the Frito-Lay production network, but never before has such a comprehensive infrastructure been created. The result is a plant that pushes the limits of what is possible in energy and water self-sufficiency. Selection of Casa Grande came after an assessment of Frito-Lay’s 37 US facilities by the US Department of Energy’s National Renewable...
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...Introduction Frito Lay Incorporated is the world leader in the snack food industry controlling over 35 percent of the world market and over 60 percent of the market in the United States. Frito Lay Incorporated started in 1961 merging the Frito Company with the H. W. Lay Company creating the largest snack food company in the world. Many of the company’s well known brands include Doritos, Lays, Ruffles, Cheetos Tostitos, Fritos, Smartfood, and Santitas, five of which create a billion dollars in sales or more annually. Frito Lay Inc., the snack food division of PepsiCo makes up about half of the parent company’s revenue and about two thirds of the company’s profits. Last year Frito Lay Inc. generated 48 billion dollars in revenue and employed over 48,000 people. The current role that I hold in the company is Route Sales Representative (RSR). This role consists of what they coin the “heart of the company,” and generates a major share of the company’s revenue. An RSR’s position consists of selling merchandise to the customer, delivering the product, stocking of the product as well as customer service. During the last 10 years the company has changed the pay structure that determines the compensation that each RSR receives. In doing this they have also increased the workload and amount of expectations that have been placed on the shoulders of the employees. During all of the events that were involved with the pay changes, the morale and drive of the employees continued...
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...THESUMMER OF 1898, 1898, THE SUMMER OF AS USUAL, WAS HOT AND HUMID IN NEW BERN, NORTH CAROLINA. SO A YOUNG PHARMACIST NAMED CALEB BRADHAM BEGAN EXPERIMENTING WITH COMBINATIONS OF SPICES, JUICES AND SYRUPS, TRYING TO CREATE A REFRESHING NEW DRINK TO SERVE TO HIS CUSTOMERS. HE SUCCEEDED BEYOND ALL EXPECTATIONS, INVENTING THE BEVERAGE NOW KNOWN AROUND THE WORLD AS ... PEPSI-COLA. 3 PEPSI’S BEGINNINGS PEPSI’S BEGINNINGS Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into a gathering place. Like many pharmacists at the turn of the century, he had a soda fountain in his drugstore, where he served his customers refreshing drinks that he created himself. His most popular creation was a unique mixture of carbonated water, kola nuts, vanilla and rare oils, named “Brad’s Drink” by his customers. Caleb decided to rename it “Pepsi-Cola,” and advertised his new soft drink to enthusiastic customers. Sales of Caleb Bradham (circled) was too focused on serving his customers Pepsi-Cola to pose for this picture. Pepsi-Cola started to grow, convincing him to form a company and market the new beverage. In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent Office for a trademark. An official patent was awarded on June 16, 1903. At first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed—to bottle Pepsi-Cola...
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...Dr Pepper Snapple Group: Fighting to Prosper In a Highly Competitive Market June 2011 Written by Joseph S. Harrison under the direction of Jeffrey S. Harrison at the Robins School of Business, University of Richmond. Copyright © Jeffrey S. Harrison. This case was written for the purpose of classroom discussion. It is not to be duplicated or cited in any form without the copyright holder’s express permission. For permission to reproduce or cite this case, contact Jeffrey S. Harrison (RCNcases@richmond.edu). In your message, state your name, affiliation and the intended use of the case. Permission for classroom use will be granted free of charge. Other cases are available at: http://robins.richmond.edu/centers/center-‐for-‐active-‐business-‐education/research/case-‐network.html Larry Young, President and CEO of Dr Pepper Snapple Group, Inc. (DPS) seemed to be on a roll. Named 2010 Beverage Executive of the Year by Beverage Industry Magazine, he led the company through three very difficult...
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...Theories of Marketing Week 1 – lecture 1 History of marketing 1. Production : supplying markets 2. Selling: convince people that what the organization happen to have is what they need. 3. marketing : let’s ask people what they want and then produce it. What can I make that will serve my customers better? It needs to be something relevant, innovative or unique MKG definition it’s all about sales and market share : it doesn’t say anything about relationship NOW : how can I create value so I will be able to sale more, it’s the only way to survive. To stay alive you need to have a lot of capabilities and tools to survive What is marketing? Marketing includes more than just needs, it’s concerned with providing the right product to the right person at the right moment. That way it creates value. This way it also incorporates innovation. Functions & processes/activities are the things we do to deliver customer value. These can be strategic and tactical. History of marketing thought - philosophy * Production orientation, huge production lines trying to find bigger markets. Its all about efficient distribution. Demand is huge, supply was very small, they didn’t care about colour for example. Marketing was all about getting your product efficiently to the consumer. Marketing is a very contextual science, how do we deal with circumstances, and how do we become successful in these circumstances. * Selling orientation, extra activities...
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