...The Business Case: PepsiAmericas (PAS) is the world’s second largest manufacturer and distributor of Pepsi beverages, operating in nineteen mostly Midwestern states in the U.S. (69% of sales), central and Eastern Europe (26% of Sales) and the Caribbean (5% of sales). Net sales in 2008 totaled nearly $5 billion or 20% of PepsiCo’s total US beverage sales. In 2009 a recession hit the U.S. economy, but PepsiAmericas was also faced with two more important long-term challenges: (1) a declining U.S. market for carbonated soft drinks, and (2) increasingly powerful retailers who were squeezing PAS profit margins. In addition, PepsiAmericas product line had moved from 35-40 products in the mid-1990’s to nearly 400 products by 2009. These developments forced PepsiAmericas to embrace a completely new operating model. In the past, distribution was handled by the local delivery person, who “owned” a particular route of retail customer stores. The delivery person would load his/her truck in anticipation of what was needed at each of his/her assigned locations. Over time, the delivery person knew what to expect and could pretty much address customer needs on a day-to-day basis. Each delivery person worked within one of seven regional PepsiAmericas organizations (business units), each servicing its own list of customers and tracking its own data. This old regional system required contracts by store with different PepsiAmericas regions servicing different outlets of the same national...
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...AQUAFINA Introduction: • Aquafina is a brand of bottled water. It was first distributed in Wichita, Kansas in 1994, Aquafina is sold in 12-fluid ounce, 500-milliliter (16.9 fl oz), 20-ounce, 24-ounce, 1 liter, and 1.5-liter bottles. • Aquafina was first launched in USA in the year 1994 and with its unique purification system and great taste, Aquafina soon became the best selling brand in the country. • In India, Aquafina’s journey began with the Bombay launch in 1999 and it was rolled out nationally by the year 2000. On the strength of its brand appeal and distribution, Aquafina has become one of India's leading brands of bottled water in a relatively short span. • The growth of aquafina is increasing day by day. In 2004 it was only 11 % as now in 2008 it has been reached at 22 % and in 2010 its been 26%. • Aquafina is an official sponsor of Olympus Fashion Week, Sundance Film Festival, Tribeca Film Festival, Carolina Panthers, and the PGA. • Aquafina is a brand of bottled water and skincare products manufactured by PepsiCo, Inc. pepsiCo produces several other products under the Aquafina label: Aquafina Aquafina FlavorSplash - Grape Aquafina FlavorSplash - Peach Mango Aquafina FlavorSplash - Raspberry Aquafina FlavorSplash - Strawberry Kiwi Aquafina FlavorSplash - Wild Berry Aquafina Sparkling - Berry Burst Aquafina Sparkling - Citrus Twist HISTORY OF AQUAFINA: TYPE ...
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...1. What drove PepsiAmericas to adopt a more aggressive attitude towards the utilization of transaction data to run the business? a. 2009 recession b. The product line multiplied in a short period of time c. Declining US market for soft drinks d. Chains like walmart, cvs, gas stations preferred high centralized agreements and contracts 2. What investments in information management capabilities were taken in this regard? Why were they obtained and how did they actually contribute? Information System Investment | Information Management Need | Contribution of the System in Operation | Customer relationship management system | Facilitate the capture and retrieval of qualitative information concerning individual customer relationships within the new customer serving structure | Capture the details of the interactions with customers and document past meetings and contract negotiations | SCM system | The need for a complex three tiered distribution platform | Allowed PAS to navigate and optimize 3 tiered platform | Supply chain management | Better enables the management of bottling and distribution | Helps with integrating its core | | | | | | | 3. Establish for yourself a picture of PepsiAmericas before and after the decision to exploit the use of information to inform business processes across the enterprise. PepsiAmericas Before Its Investment in BI | PepsiAmericas After Its Investment in BI | Operations: * Distrubution...
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...omework Questions: 1. What drove PepsiAmericas to adopt a more aggressive attitude towards the utilization of transaction data to run the business? [list] 1. In 2009 a recession hit the U.S. economy and PAS is also affected by the recession. 2. A declining U.S. market for carbonated soft drinks, and PAS need to increase the sales to maintain profitable. 3. Increasingly powerful retailers who were squeezing PAS profit margins. 4. Product line had moved from 35-40 products in the mid-1990’s to nearly 400 products by 2009. Which require PAS to adopt more aggressive attitude to run the business. 5. As Pepsi moved from 35 to 400 products and as the packaging for these products became less uniform, it proved difficult to know about, let alone carry the right mix of products in the truck. 6. Chains like Wal-Mart, CVS Drug Stores, and Mobil Gas Stations, preferred highly centralized procurement arrangements and national contracts. Which PAS can’t meet the requirements. 2. What investments in information management capabilities were taken in this regard? [table – information technology investments and their impacts] IT investments Impacts Supply chain management Better enable the management of bottling and distribution. Be able to create distribution platform for centralized procurement arrangement and national contracts Manufacturing enterprise resource planning system Increasing the availability of manufacturing and delivery information. Enable centralized procurement...
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...International business or Global marketing is growing at a fast rate and there are more than 180 nations-sates in the world with different market and profitable potential. However for an organization to earn sufficient income in the global market it needs to know the right time and form of market entry mode whilst entering International market (Hill, 2003). Therefore this essay will focus and assess the need for an organisation to use a range of modes of entry while entering the international market. In due course it will give an overview on International marketing literature review, views on variety of entry modes, entry selection criteria, examples based on cased studies and conclusion. General Understanding of International marketing refers to marketing of goods and services from one country to another. Producing and marketing of products in more than one country is also termed as international or multinational marketing. But according to Mc Auley (2001) International marketing can be defined quite simply as “the performance of business activities that direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit” much similar to domestic marketing. However Kahler (1983) argues and identifies that “International marketing differs from domestic marketing for one basic reason: it involves doing business with individuals, firms, organizations, and/or government entities in other countries”. The author further argues that the difference...
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...PEPSI CO Strategic Management Key internal and external factor 1. External - Coke would also like to dominate the cola industries - Consumer shift to less costly drinks and snacks - Coke manage to dominate marketing in China by a small margin - Continuing economics problem - Cost of sales and management increased as times changed - Increased in Liability cost ( transportation, tax, raw material ) - Low supplies of fresh and clean water 2. Internal - Cost of production in varies providence - Lack of strong personnel in marketing and administration - Lack of diversities in product offered into the market - 2 separate bottling company - Strength and weakness 1. Strength - Diversities of product - Huge assets around the globe - Create synergy between product categories - Having Indra K. Nooyi - Great marketing and advertisement plan 2. Weakness - Various company involved - rely on independence bottling company - Lack of expert personnel - Different in management and administration for each branch Main Strategies to Success - Bolstering manufacturing and sales in China - Further increase investment in Japan, India, Europe, Mexico and Latin America - Retake ownership of its two largest bottlers - Increase the number of non-carbonated product - Ventured into a conglomerate diversification business - Successfully develop a synergy between product categories ...
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...FOOD & BEVERAGE INDUSTRY PRODUCTION OPTIMIZATION SOLUTIONS FOR RESPONSIBLE AND PROFITABLE OPERATIONS TRENDS & ISSUES IN THE FOOD & Global market forces are driving the continual evolution of the food and beverage industry. Consolidation, changing consumer preferences and increasing government regulations are dramatically impacting manufacturing and business strategy. In this fiercely competitive marketplace, you must offer a greater variety of products to meet consumer demand. At the same time, you must consistently and cost-effectively produce high quality products. To be successful , you need to focus on three key business issues: financial performance, sustainability, and brand equity. FINANCIAL PERFORMANCE In today’s global marketplace, where growth via acquisition is prominent, the key to sustained positive financial performance is the ability to understand and respond to consumer demands and competitive pressures while reducing cost of production. BEVERAGE INDUSTRY SUSTAINABILITY Manufacturers want to have a positive impact on society and the environment. In addition, they want to turn sustainability challenges into business advantages. At the heart of a well-planned sustainability program is the belief that corporate investment in environmental and social responsibility must strengthen business performance to be successful. It must reduce environmental impact, achieve genuine economy in the use of resources, deliver a return on investment, and enhance...
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...PepsiCo, Inc. Nitesh Kalwar June 18, 2010 HOLD Pros: • • Ticker Exchange Industry Sector Classification Market Cap. 52 Week Price range Recent Price Current P/E Projected 2012 P/E 2009 EPS Projected 2012 EPS Dividend Yield Morning Star Ratings Beta PEP NYSE Consumer Staples Beverages (NonAlcoholic) Income & Capital Appreciation $103.67 Billion $52.56-67.61 $64.28 16.34 13.81 $3.81 $5.50 3.00% **** .56 • • • • Broad portfolio in the soft drink, saltysnack market and beverages. Acquisition of bottlers will allow for cost savings and new business opportunities Opportunities for growth in healthy snack, and healthy drink markets; growth in emerging markets Commodity (raw materials) volatility, exchange rate risks Increased bad debt and higher interest rates No high prospects for growth Cons: Porter’s Five Forces: • • • • • Threat of Competition: Moderate Threat of New Entrants: Low Threat of Substitutes: Low to Moderate Power of Suppliers: Moderate Power of Buyers: High Brief Overview PepsiCo, Inc. operates four major businesses: Frito-Lay North America, 31% of sales; Quaker Foods NA, 4%; Latin American Foods, 13% of total revenue, PepsiCo America Beverages, 23% of revenue, Europe, 16% of total revenue, AMEA 13%. PepsiCo recently purchased two of its largest bottling companies for a combined total of $12.6 Billion.1 1 10K 2010 PORTFOLIO CONSIDERATIONS PepsiCo, a consumer staple equity, currently composes 3.39% of the equity value of the EIF portfolio. As...
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...A look into the world of carbonated drinks will lead you straight to two of the biggest suppliers The Coca Cola Company and Pepsi Inc. Both of these companies provide a rich source of services and products but you will always find that consumers are still stuck with the question of which company provides the best overall product. Simply said.. Are you a Coke or Pepsi fan? I will examine both Coca Cola and Pepsi roots and determine which will provide the optimal solution for investors. John Pemberton an Atlanta pharmacist created Coca Cola by accident. In 1886 while in his home mixing some caramel and colored liquid Pemberton tasted what would soon be the first sampling of the future Coca Cola. Pemberton decided to take his mixture to a nearby pharmacy and add carbonated water to change the taste. He was determined this was the next big invention and convinced Jacob’s Pharmacy to allow him to let customers sample his product for five cents a glass. Knowing that the sampling was a success Pemberton took the idea to his friend and bookkeeper Frank Robinson who helped to name and create the signature script for Coca Cola that would be still used to today. During its first year in Jacob’s Pharmacy nine glasses of Coca Cola was served per day. Only two years into its discovery John Pemberton would pass away but his ideas would evolve as did the people involved with Coca Cola’s development (“Heritage timeline,”2012). Soon after Pemberton’s passing Asa Griggs Candler...
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...Memorandum To: Dr. Gordon J. Badovick From: BG Date: January 4, 2012 Re: Coca Cola A Case 1-3 Brief Key Marketing Problem/Opportunity Coke is struggling with growth declines. Its performance in comparison to its key competitor, Pepsi, is unacceptable. There is a critical need to consider options for growth as growth has continued to decline for its core brand, Coca Cola. Strategic Question Which corporate growth strategy would offer the BEST opportunity to improve sales in the future for the Coca Cola Company? Strategic Marketing Alternatives 1. Pursue a product development strategy by creating a line extension off of the core brand Coca Cola. The product is called Coke Plus and will be marketed to those who want more out of their carbonated beverage. Coke Plus has the potential to become a best selling new soda and grow sales for the Company. 2. Pursue a concentric diversification strategy by acquiring Monster Energy from Hansen’s Natural Corporation. Monster Energy is an up and coming energy drink that is gaining sales and share from energy captain, Red Bull. Hansen’s is forward thinking and introducing innovative new products to the market like Monster Assault. The company could share synergies in sales and distribution. 3. Pursue a forward integration strategy by reacquiring CCE and breaking up its assets and resale to smaller bottlers. Smaller, independent bottlers may be content to work on lower margins than publicly...
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...INVESTMENT ANALYSIS OF PEPSI COLA AND COCA COLA PREPARED BY KHALID HAKEEM PRESENTED TO PROFESSOR PETER DATED DECEMBER 10 2012 PEPSI COLA COMPANY A BRIEF HISTORY Pepsi cola 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...
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...This year's Supply Chain Innovation award winner started out to optimize cramped warehouses. It wound up transforming its entire process for building orders and getting them to retailers. Sometimes the way to build a better mousetrap is not by tinkering with the old one but by tossing out altogether and starting afresh. That's essentially what Pepsi Beverages Company, the winner of this year's Supply Chain Innovation award, did with its new direct-to-store delivery model. Pepsi Beverages Company is itself somewhat of a new enterprise. On February 26, 2010, PepsiCo completed its mergers with The Pepsi Bottling Group and PepsiAmericas. PepsiCo's new operating unit, Pepsi Beverages Company, serves the United States, Canada and Mexico. It goes without saying that PBC moves a tremendous amount of product every day. In doing so, executives came to the painful conclusion that with ever growing sales and SKUs, the walls of the company's warehouses and distribution centers figuratively were bursting at the seams. Enter the Warehouse Infrastructure Initiative, which for all practical purposes was an attempt to re-engineer the old mousetrap; in this case, to make it bigger. When all was said and done, that effort was set aside in favor of the highly innovative - and successful - Direct-to-Store Delivery Transformation Initiative. Here are the benefits, according to Timothy Thornton, PBC vice president, supply chain logistics: The distribution strategy that ultimately resulted...
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...Vanessa Eastman Globalization Essay #3 PepsiCo is known around the world as one of the largest companies in the beverage industry, but that is not the only industry that PepsiCo is involved in. Over the years PepsiCo has merged with other companies such as Frito Lay and Quaker to expand their footprint throughout the entire food industry. They now provide not only well known beverages such as Pepsi and Mountain Dew, but also products such as potato chips, oatmeal, and Tropicana orange juice to name a few. These expansions have helped PepsiCo grow to the major corporation that it is today. “Pepsi was first introduced as “Brad’s Drink” in New Bern, North Carolina, in 1893 by Caleb Bradham, who made it at his drugstore where the drink was sold. It was later labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy.” (Pepsi, 2013) “As the cola developed in popularity, Bradham created the Pepsi-Cola Company in 1902 and registered a patent for his recipe in 1903. The Pepsi-Cola Company was first incorporated in the state of Delaware in 1919. The company went bankrupt during the Great Depression in 1931, and on June 8 of that year the trademark and syrup recipe was bought by Charles Guth who owned a syrup manufacturing business in Baltimore, Maryland. Guth was also the president of Loft, Incorporated, a leading candy manufacturer...
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...Chapter 11 Case Study: Pepsi Background of the Company- 1965-PepsiCo, Inc. was established through the merger of Pepsi Cola and Frito-Lay. Caleb Bradham, a New Bern, N.C. pharmacist, created Pepsi Cola in the late 1890s. The 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. LAY COMPANY, formed Frito-Lay, Inc., founded by Herman W. Lay, also in 1932. Herman Lay, former chairman and CEO of Frito-Lay, was chairman of the board of directors of the new company; Donald M. Kendall, former president and CEO of Pepsi Cola, was president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. Major products of the new companies are: Pepsi Cola Company: Pepsi Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948). Frito-Lay, Inc.: Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961). 1966- Doritos brand tortilla chips are introduced. They are destined to become the most popular snack chip in the United States. Pepsi enters Japan and Eastern Europe. 1971- PepsiCo moves from New York City to its new world headquarters in Purchase, N.Y. The new corporate headquarters features a building by one of America's foremost architects, Edward Durrell Stone (19021978), set on a 144acre...
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...Financial Analysis – PepsiCo Inc. In 1893, a pharmacist named Caleb Bradham invented a tonic, which he called "Brad's drink". This drink was carbonated and contained sugar, vanilla, rare oils, pepsin, and cola nuts. Bradham sold his drink at his pharmacy's soda fountain and by 1898, "Brad's drink" had been renamed to Pepsi Cola (Zokawics, 2007). Pepsi existed on the brink of ruin under various owners until Loft Candy bought it in 1931. Its fortunes improved in 1933 when, in the midst of the Depression, it doubled the size of its bottles to 12 ounces without raising the five-cent price. In 1939 Pepsi introduced the world's first radio jingle. Two years later Loft Candy merged with its Pepsi subsidiary and became The Pepsi-Cola Company. PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from just the Pepsi product to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001, which also added the Gatorade brand to its portfolio as well. As of 2009, 19 of PepsiCo's product lines generated retail sales of more than $1 billion each, and the company’s products were distributed across more than 200 countries...
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