PepsiCo

We put good people in big jobs before they are ready. Pepsi Co.

GROUP MEMBER:
AUMM-E-HANI MUNIR MARIA UMER SAMARA ZAKAWAT SEHRISH NISAR RAKSHANDA BATOOL FAIZA MUNIR` 1615/FBSA/BSCS/S08 1622/FBSA/BSCS/S08 1629/FBSA/BSCS/S08 1631/FBSA/BSCS/S08 1627/FBSA/BSCS/S08 1618/FBSA/BSCS/S08

SUBMITTED TO: ADNAN SARWER

Acknowledgement
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 Adnan sarwar 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.

TABLE OF CONTENT
INTRODUCTION5 Location of Pepsi.7 Products.8 The History Of Pepsi.9 FINANCIAL INFORMATION15 Level of management..17 MARKETING STRATEGY..18 ENVIRONMENTAL COMMITMENT20 HR Practices in organization 21 Swot Analysis..24 Coke v/s Pepsi-Product27 CONCLUSION..31 RECOMMENDATIONS/SUGGESTIONS31 References 31

INTRODUCTION
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 growth. 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 integrity.

Beverages
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 "Pepsi-Cola." 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 fountains. 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
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PepsiCo's food business started in 1932 at the birth of both, the Frito-Lay Company, a producer of cornchips 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.

RESTAURANTS
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 countries. 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.

Location of Pepsi
22 Zaman Park Upper Mall Lahore Pakistan Ph# (92) 42 6368 727

Pepsi ola actor

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44, Guru Mangat Road, Lahore 54660, Pakistan Ph#

Pepsi Dinning Center

Walton Cantt., Lahore, Pakistan

Riaz Bottlers (PVT) Limited (RBL) incorporated in Pakistan as a private limited company in 1976. RBL is the franchise holder of Pepsi cola international with seven brands. like PEPSI, PEPSI MAX, 7UP, MARINDA, MOUNTAIN DEW.

MISSION "To be the world's premier consumer Products Company focused on convenience foods and
beverages. We seek to produce healthy 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.

VISION
PepsiCos responsibility is to continually improve all aspects of the world I which we operate environment, social, economic creating a better tomorrow than today. Tomorrow > Today

Quality Policy
Make, Sell, and deliver the beverage to the consumer as it was designed, In order to derive preference.

Products

The History Of Pepsi

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 logo. 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 gallons. 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.
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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 12ounce 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, 1934). 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 history.

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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 Pepsi. 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-ETS, RUFFLES DORITOS, FUNYUNS, TOSTITOS, BAKED LAY'S, WOW!, SUNCHIPS, MUNCHIES, OBERTO, ROLD GOLD, GRANDMA'S Cookies and Quaker Chewy Bars, Quakes and Fruit & Oatmeal Bars. Military 12-ounce cans are such a success that full-scale commercial distribution begins.
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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 year. 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 filmrelated awards.

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

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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 refrigerator. 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 Company. 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!).

FINANCIAL INFORMATION
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
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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%.

Organizational value:

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Sustainable Advantage:17

Level of management:
1.CEO. 1.Chairmen. Director . Managers Asst.managers. Supervisiors. Distributors. Workers.

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

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

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

MARKETING STRATEGY
Pepsi use music, which was traditional weapon of teenager to show their rebellion approach.
Pepsi is known in the marketing world as a convenience product, one that is purchased without much consideration 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. 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.
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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.

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. 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. 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.

PLACEMENT
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

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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.

Sponsorship
Pepsi secure one of the most lucrative sponsorships in sport specially in cricket series. 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.

ENVIRONMENTAL COMMITMENT
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 waste. 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 principles: 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.

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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

HR Practices in organization
PepsiCo are committed towards a mode of management that aims at building a workforce that is motivated and aligned to organizational objectives. Planning Job description Interviews Hiring Training

At PepsiCo HR practices are used for the employees, but these practices can be categorized on the following basis: Financial Practices Nonfinancial Practices

Financial Practices

Reward and Recognition Scholarship Program Learn smart( Training and development Occasional Gifts Annual free medical checkup

facilities

Non-financial Practices
Performance Appraisal:

360 degrees for workers

Staff Members

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System of half yearly appraisal review Employee Recognition program Home Visit/Nanhe Sitare Safety related Training Sports day and Annual day Community Development in villages of associates Monthly employee communication Birth day celebration Of employees Idea Acceptance Award Employee of the month

Motivational Impacts of These Practices:

Distribution of similar uniform to all the employees develops the feeling equality to the employees. Scholarship program provided to the kids of associates reduce the financial burden of the studies. One of the important practices which improve the skills of the employees is learn smart and training facility, which encourages them to work confidently. Reward and recognition is a practice which motivate the employees to do some good works apart from their duties. Home visit a practice in which staff members visit the associates house and take the pictures of their kids and these pictures are pasted in plant, which encourages the employees. Visual Recognition is a practice which immerge the feeling of recognition by their bosses after doing some special work.

Objectives of various project sessional/anually

To analyse the impacts of financial HR practices.
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To analyse the impacts of non financial HR practices. To seek the effect of HR practices on employee motivation.

Advantages of HR practices at pepsiCo

The researcher is concentrating on the best use of HR practices for employee motivation. It improves the living conditions, relationship of employers & employees as well as the production & image of a company. Enhances internal capabilities of an organization to deal with current or future change. It influences financial and other performance indicators. Energizes and encourage employees to work. Increase loyalty of employees towards the organization. Attract Man Power Reduce Absenteeism Reduce Turnover

PepsiCo is doing nice effort to motivate their employees. And the practices are made in the form, that it can be effective for the workforce and as well as helpful in achieving the predefine goals of the company.

Learning From Others

Working With a Mentor Teaming with an Expert 360 Feedback Focused Interviews Training & Education Seminars & Conferences Continuing Education Development On The Job: Special Projects Committee Assignments Task Force Participation Lead Person Responsibilities

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 Giving Presentations Preparing Proposals

Health benefits :
PepsiCo's Health benefits help protect you and your eligible dependents from the high cost of medical treatment and ensure that you have access to high-quality care.

Pension
Pension from PepsiCo is an important benefit that can help you make the most of your retirement years. Add Social Security, any benefits payable from other PepsiCo plans as well as personal savings, and you have the formula for a sound financial future. To be eligible to participate in a PepsiCo pension plan, you must be either a full-time employee or a part-time employee working at least 1,000 hours in a year at PepsiCo or a subsidiary of PepsiCo that sponsors the plan.

Beneficiary Designations
An employee, you may designate anyone you choose (including your domestic partner) as your beneficiary under the provisions of the following PepsiCo benefit programs: Basic and Additional Life Insurance Accidental Death & Dismemberment Insurance Pension Plan (provided you elect a form of benefits that provides for a beneficiary)

Swot Analysis
Strength:
1. Company Image: It also is a reputable org. and is well known all over the world, Perception of producing a high quality product. 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.
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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 5. Market Share: It has a highest market share i.e. 62% 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 Younis etc. Also sponsor social activates programmes like music etc.

9.Appealing to young generation 10.Superior Taste

Weakness:
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:

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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. 5. Hard to enter markets occupied by Coca-Cola 6.Lack of novelty in advertising

Threats:
1. Imitators: They also have a problem of imitatiors as receives complaints from customers that they find take product in disguised of Pepsis product. 2. Government Regulation: They face problem if government employ taxes on them which force them to raise the price of their product. 3. orporations 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.

Opportunities:
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:

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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 product. 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.

Coke v/s Pepsi-Product

As seen above both the companies Coke and Pepsi have a number of products. Many of these products are innovations but there are also many products which are brought out just as a competitive product for the other companies. Some of these products that are brought in the market by both the companies to compete against each other are as follows:

Coke

Pepsi

The main dark cola drink of the company which started the rivalry between these companies.

Pepsi version of dark cola which is the major primary competitor to Coke.

Full Throttle is an energy drink brand produced by The Coca-Cola Company. It debuted in late 2004 in North America.

AMP is an energy drink produced and distributed by PepsiCo under the Mountain Dew soft drink brand.

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Vault is a carbonated beverage that was released by The Coca -Cola Company in June 2005.

Mountain Dew MDX is an energy drink manufactured and distributed by PepsiCo under the Mountain Dew brand. It was introduced in 2005.

Powerade is a sports drink by The Coca-Cola Company and currently number two in the sports drink market worldwide.

Gatorade is a non-carbonated sports drink marketed by Quaker Oats Company, a division of PepsiCo. Originally made for athletes, it is now often consumed as a snack beverage.

Sprite is a clear, lemon-lime flavored, non-caffeinated soft drink, produced by the Coca-Cola Company. It was introduced to the United States in 1961.

7 Up is a brand of a lemon-lime flavored soft drink.

Minute Maid is a product line of beverages, usually associated with orange juice, but now extends to soft drinks of many kinds. The Minute Maid company is now owned by Coca Cola, and is the world's largest marketer of fruit juices and drinks. It is headquartered in Houston, Texas.

Tropicana Products is an American company based in Bradenton, Florida, USA, which is one of the world's largest producers and marketers of orange juice. It has been owned by PepsiCo, Inc. since 1998.

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Nestea is a brand of iced tea manufactured and distributed by the Nestle company's beverage department in the United States, and by Coca Cola in several European countries, Brazil and Venezuela.

Lipton Original Iced Tea is a readyto-drink iced tea brand sold by Lipton through a worldwide partnership with Pepsi.

Barq's is a brand of root beer notable for being the only major North American root beer to contain caffeine. It has been bottled since the start of the 20th century and is currently sold by the Coca -Cola Company.

Mug Root Beer is a brand name of root beer made by the Pepsi company.

Diet Coke or Diet Coca-Cola is a sugar-free soft drink produced and distributed by The Coca -Cola Company.

Diet Pepsi is a low-calorie carbonated cola. It was introduced in 1964 as a variant of Pepsi-Cola with no sugar.

Kinley is a brand of still or carbonated water owned by The Coca Cola Company.

Aquafina is a non-carbonated produced by PepsiCo.

bottled

water

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Aquarius is a mineral sports drink manufactured by The Coca -Cola Company. It was first introduced in 1983.

All Sport was a sports drink. It is produced by PepsiCo.

Fanta is a soft drink brand owned by The Coca-Cola Company. It is produced and distributed by The Coca-Cola Company's bottlers.

Mirinda is a brand of soft Mirinda is owned by PepsiCo.

drink.

Sprite Ice was the first flavor extension for The Coca-Cola Company's Sprite brand soft drink.

Pepsi Blue is a soft drink made by PepsiCo and launched in mid-2002.

Coca-Cola Blak is a coffee -flavoured soft drink introduced by Coca -Cola in 2006.

Pepsi Cappuccino is a cappuccino flavored carbonated soft drink produced by Pepsico.

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Maaza is a Coca-Cola brand marketed.

fruit

drink

Slice is a line of fruit -flavored soft drinks manufactured by PepsiCo and introduced in 1984.

Limca is a lemon and lime flavoured carbonated soft drink made by Coca cola.

Teem was a lemon-lime-flavored soft drink produced by The Pepsi -Cola Company.

CONCLUSION
Not only at the Head Quarter but also at the plant level HR Practices plays an important role and these practices are responsible for employee motivation and employee satisfaction. Motivation has a great impact on the employee performance. This is only motivation which makes the company better than others because nowadays every one has great technologies and machines but if employees are not motivated then the result could not be as desired.

RECOMMENDATIONS/SUGGESTIONS As a new practice Performance linked bonus should be started. Loading shade should be there in the shipping yard. In the off season Indore games should planned. Some picnics with the staff should arrange. Some reward ceremonies should be organized

References
Website:www.pepsi.com,www.pepsiCo.com Address : Pepsi Cola Distribution Centre:Sirsyed Road, Rwalpindi, Pakistan

Head office :DIRECTOR: Muhammad Asad 22 Zaman Park Upper Mall LahorePakistan Ph# (92) 42 6368 727.
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