Operational Management

SUBMITTED TO:
Sir Fazal Abbas

SUBMITTED BY:
Sheraz Saleem

129

BBA
Semester 7th
(Evening)

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Our Mission
As one of the largest food and beverage companies in the world, our mission is to provide
consumers around the world with delicious, affordable, convenient and complementary
foods and beverages from wholesome breakfasts to healthy and fun daytime snacks and
beverages to evening treats. We are committed to investing in our people, our company and
the communities where we operate to help position the company for long-term, sustainable
growth.

Target Market
Pepsi perfectly divide the target market in to different groups. They may differ in wants, sources and
buying practices. Through market practices companies can be reached more effectively efficiently with
products and services that manufacture their unique needs.
Sweet refreshing, and full of unnecessary calories, Pepsi and its variety of products continues to be the
drink of choice for many individuals in the covered target market of 18-35 years of olds. Effective
marketing and targeted advertisement has led to Pepsis success as a company and a brand, with products
that reach out to a multitude of beverage drinkers,
The main products of the Pepsi-Cola brand are made to appeal to a variety of individuals and their
differences in taste for their beverage of choice.
Pepsi marketing campaign focuses on youth and lifestyle which drives it forward. As a marketing
strategy, it continues to evolve to reflect youthful generations, while maintaining a firm grasp of the
differences between one generation and the next. Further campaigns include phrases such as Pepsi. The
Choice of a New Generation in 1984, A Generation Ahead in 1989, Be Young, Have Fun, Drink
Pepsi, in 1993, GeneratioNext in 1997, and its current slogan Live For #Now,Pepsi has designed
itself to attract and entertain teens and young adults.

Following are the prouct and services offers by the pepsico.

PepsiCo is one of the most successful beverage and snack food business in the world. PepsiCo started on
1965, during that time Pepsi-Colas CEO and President Donald M, Kendall approached Herman Lay,
Frito-Lays Chairman and CEO with a proposition of merging the two company in providing food and
beverage with complementary products that would give a lesser opportunity for cost sharing, joint
merchandising and knowledge and skill transfer PepsiCo brands are available in nearly 200 countries and
territories

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Pepsico Products List

A list of Pepsico products. They are listed below.

PepsiCo Companies and Products list

PepsiCo companies
* Pepsi-Cola
* Gatorade
* Quaker
* Frito Lay
* Tropicana

Pepsi-Cola Brands Around the World

* Pepsi
* Caffeine Free Pepsi
* Diet Pepsi
* Caffeine Free Diet Pepsi
* Diet Pepsi Max
* Jazz Diet Pepsi
* Diet Pepsi Lime
* Diet Pepsi Vanilla
* Pepsi Wild Cherry
* Diet Pepsi Wild Cherry
* Pepsi ONE
* Mountain Dew
* Diet Mountain Dew
* Caffeine Free Mountain Dew
* Mountain Dew Code Red
* Diet Mountain Dew Code Red
* Mountain Dew LiveWire
* Manzanita Sol
* Mirinda
* Mug Root Beer
* Diet Mug Root Beer
* Mug Cream Soda
* Diet Mug Cream Soda
* Sierra Mist
* Sierra Mist Free
* Slice
Frito Lay Brands
* Lay's potato chips
* Lays Kettle Cooked potato chips
* Wavy Lay's potato chips
* Baked Lay's potato crisps
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* Maui Style potato chips
* Ruffles potato chips
* Baked Ruffles potato crisps
* Ruffles Flavor Rush potato chips
* Doritos tortilla chips
* Baked Doritos tortilla chips
* 3D's snacks
* Tostitos tortilla chips
* Baked Tostitos tortilla chips
* Santitas tortilla chips
* Fritos corn chips
* Cheetos cheese flavored snacks
* Rold Gold pretzels & snack mix
* Funyuns onion flavored rings
* Go Snacks
Gatorade Brands
* Gatorade Thirst Quencher
* Gatorade Frost Thirst Quencher
* Gatorade Ice Thirst Quencher
* Gatorade Xtremo Thirst Quencher
* Gatorade X-Factor Thirst Quencher
* Gatorade Fierce Thirst Quencher
* Propel Fitness Water
Tropicana Brands
* Tropicana Pure Premium juices
* Tropicana Twister juice drinks
* Tropicana Smoothies
* Tropicana Pure Tropics juices
* Dole juices (License)
* Tropicana 100 juices
* Naked Juice
Quaker Brands
* Quaker Oatmeal
* Quaker Instant Oatmeal
* Quaker Oatmeal Breakfast Squares
* Cap'n Crunch cereal

Business Strategy

Food and beverage industries are saturated which means that the barriers to
entry are low. There are usually only two ways to compete in these industries.
One is by being low cost and the other is by being high quality.

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This makes profit margins incredibly thin. So naturally when barriers to entry
are low there will be a lot of competitors. Substitutes would also be high
around the board for food and beverage industry.

When there are lots of competitors customers can easily switch to another
product. However if one product is superior and maybe even a little addictive
then customers may demand that product and their power will be less.
Suppliers in food and beverage are on weaker side.

This is because they are supplying commodities, very general unspecialized

goods that can be found locally and internationally very easily. So switching
suppliers is very easy.

Things like this can give a specific product in an industry a competitive edge
over the competition. Especially when the industry can only compete on price
and quality rather than differentiation.

Core Competency

Product integration and Innovation

The first core competency is their product integration and innovation. PepsiCo is
able to enhance their product line by carrying fruit drinks, Gatorade, and
Frappuccino. This allows them to promote their products and services more
efficiently while being able to reach a much broader group of individuals. Through
integration, they are able to eliminate potential competitors, while creating a more
diverse product line.
Branding & Marketing
Secondly, Pepsis strength lies in its branding and marketing. Pepsi had always
come up with the unique ad campaigns focusing towards its target market. This
uniqueness in advertising and branding has given it a competitive advantage over
its competitors. Pepsi target audience is mostly teens and young adults and their
advertising reflects this in every possible manner. Some of Pepsi successful Ad
campaigns like Yeh dil maange more, Oye Bubbly and Youngistan created a
huge impact on its Target group.
Apart from these, several factors mentioned below have been PepsiCo strength over
the years, and still they are backing up its core competencies in different possible
way.
- Savings resulting from economies of scale.
- Number 1 maker of snacks, such as corn chips and potato chips.
- Merger combined two strong companies, PepsiCo and Quaker Oats.
- Company does more than just soft drinks.
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-

Merger combined more than carbonated and noncarbonated drinks.

Not all PepsiCo products bear the company name.

Levels of strategies
Functional Level
As a company PepsiCo has tremendous opportunities and to capitalize on them
PepsiCo depends on talent of its associates and executive leadership. Therefore
talent sustainability is their main motto. Through this investment in people they
help them in succeeding and developing the skill that are required to move ahead
and to sustain PepsiCo long term growth.

Business level
PepsiCo engages in a low-cost-differentiation strategy by taking advantage of
economies of scale through mass production of its products and by differing their
products through taste and marketing.
Corporate Level
Corporate level strategy revolves around asking, "What business are we going to be
in? What business should we abandon? What types of portfolio businesses should
we hold?" Therefore a large corporation like Pepsi each quarter evaluates their
portfolio businesses (whether it is in beverages, snacks or fast food). After
viewing the performance of each, they decide to either cut activity in one or
increase focus in one.
PepsiCo was US centric three years ago and it had a western Push model of
business. To accelerate global growth PepsiCo restructured its food and
beverages business in America so that it will include other region such as
Canada, Mexico and Latin America.
To accelerate it more PepsiCo created sectors for PepsiCo Europe and PepsiCo
Asia, Middle East and Africa along with the Americas Foods and Americas Beverages
sectors. This helped in leading a new path of innovation and product development.
The acquisition of Quaker oats in last August 2000 was a smart move of
PepsiCo which enabled the synergies between both the companies. After the
acquisition PepsiCo witnessed the growth of 14% in fiscal year 2001. The large
product portfolio and distribution channels of Quaker helped PepsiCo to add more to
its economies of scale.

Marketing strategy of PepsiCo:

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Behind Coca Cola, its marketing strategy is mainly to work within the company,
Performance with a Purpose Strategy. Bring Customers in my promoting a product
that promotes a theory of making the world better- Smart Selling. And focusing on
Business Portfolio Analysis, where to sell their product- International Markets,
making products that fit in customers life style-Customer Relationships.
Smart Selling focusing on what PepsiCo has to offer. PepsiCos financial growths are
fully supported by the brands that they sell. PepsiCos newest initiative is creating
and expanding the macro snack portfolio. With the times changing PepsiCo and
other soft drink companies realized that when people go to have a snack they look
for a drink as well, and with consumers looking for the healthy option soda
companys like PepsiCo were losing customers. PepsiCo introduced the Power of
One in which PepsiCo purchased the two largest bottling groups.

Operation function supports business strategies.

Human Sustainability Policies

Quality & Food Safety Programs

PepsiCo is dedicated to producing the safest, highest-quality and best-tasting
beverages and foods in every part of the world. Developing and maintaining robust
food safety programs is how we assure safety for every package, every day in every
market. PepsiCo has detailed internal programs and procedures for food safety.
Below is a summary of our policies, programs and actions designed to keep our
products safe and meeting high quality standards.
PepsiCo Food Safety
PepsiCo has an excellent track record in delivering safe products - this work is
guided by the PepsiCo Food Safety Policy. Our efforts are focused on building a
sustainable food safety program and providing the framework to develop and
sustain food safety of existing brands and new innovation. The scope covers the
design, manufacture and distribution of beverage and food products. Our programs
and procedures apply to all current and future divisions in PepsiCo.
Quality Organization
PepsiCo quality professionals assess product compliance to PepsiCo's Quality Policy.
This program is focused on processes and procedures supporting quality policies
and prioritization of critical risk areas. Our quality agenda is led by quality
professionals in various regions who oversee the following areas:

Food Safety
Innovation (R&D)
Manufacturing Quality
Co-Manufacturing Quality
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SUPPLIER Quality
Plant Quality

Environmental Sustainability Policies

PepsiCo has a number of policies and programs to compliment the PepsiCo Global
Supplier Code of Conduct, which clarifies our global expectations in the areas of
business integrity, labor practices, associate health and safety, and environmental
management. These standards apply to all stages of our upstream value chain and
are meant to be complemented, as appropriate, by additional guidelines,
specifications, and practical tools at the local or regional level, while respecting and
complying with national laws and regulations.
The policies reference global standards and provide PepsiCo SUPPLIERS with our
requirements. As discussed in more detail below, there are five environmental
policies and commitments related to responsible sourcing.
These policies are interconnected, complementary and created to holistically
address the potential issues and challenges in agriculture production and supply
chain. All of our policies, unless otherwise noted, apply to our entire supply chain.

Talent Sustainability Policies

Global Code of Conduct
At PepsiCo, we believe acting ethically and responsibly is not only the right thing to
do, but also the right thing to do for our business. Our Global Code of Conduct is our
road map and compass for doing business the right way. Simply put, we believe that
you do business the right way when you act ethically and consistently with our
values, our Code, our policies and the law. Effective October 1, 2014, PepsiCo
released an updated version of its Global Code of Conduct. The updated Code
addresses regulatory changes and evolving risk areas, and provides specific
guidance on acting ethically and legally while performing work for PepsiCo.
Human Rights Workplace Policy
PepsiCo's Human Rights Workplace Policy is guided by the Universal Declaration of
Human Rights and related international covenants. The principles underlying our
Human Rights Workplace Policy, available in 44 languages, are broadly
communicated as part of the Code of Conduct traini

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Vision statement
To achieve sustainable growth, the company has established a vision with
clear goals.
Profit: Maximizing return to shareowners while being mindful of our overall
responsibilities.
People: Being a great place to work where people are inspired to be the best
they can be.
Portfolio: Bringing to the world a portfolio of beverage brands that anticipate
and satisfy peoples; desires and needs.
Partners: Nurturing a winning network of partners and building mutual
loyalty.
Planet: Being a responsible global citizen that makes a difference.

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Target market of coca cola
Coca Cola Company tries to satisfy the needs of a whole line of different
people. They have drinks that target different, age groups, ethnic groups, sexes,
lifestyles, etc.
Targeting Markets
Coca Cola Company is the worlds leading manufacturer, marketer, and distributor
of soft beverages. Coca Cola uses "Multi-segment" targeting strategy which means
that the company has more than single, well- defined, market segment. It develops
a marketing mix for each of the segments. Coca Cola has more than 400 different
products line, total of 3,500 product mix.
Coca Cola has drinks that targets different age groups, ethnic groups, sexes,
lifestyles, etc. Examples:
-Age- 15-25 years old and 40 plus.
-Gender- targets both genders with wide variety drinks.
Coca Cola designed to satisfy the consumers needs. The company is able to
provide drinks for many different target markets: ages, sexes, and etc. The products
are sold to diverse population all around the world. In our world today, people want
to live healthier lives. Coca Cola recognized this need and begun to produce
different beverages that are satisfying those consumers. Coca Cola products are
purchased by different classes, but mainly by middle to high level class. In addition,
many people today make their purchases decisions based on the companys ethics
and, or social responsibility. Coca Cola gains the trust of its consumers by
contributing to the environment in varies ways.

Products of coca cola as per USA only

Aquapure

Aquarius

Bacardi Mixers

Bacardi Premium Mixers

Barqs

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Barrilitos

Beverly

Bright And Early

Caffeine-free Barq's

Caffeine-free Diet Coke

Cascal

Chippewa

Citra

Coca-Cola

Coca-Cola Black Cherry Vanilla

Coca-Cola Cherry Zero

Coca-Cola Zero

Coca-Cola Zero Caffeine-Free

Cumberland Gap

DANNON

DASANI

Delaware Punch

diet Barq's

Diet cherry Coke

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Diet Coke

Diet Coke Black Cherry Vanilla

Diet Coke with Lime

Diet Coke with Splenda

Diet Fuze Tea

diet Inca Kola

Diet Master Pour

Jericho

Kinley

Krest

Lift

Master Chill

Master Pour

Mello Yello

Mello Yello Zero

Mezzo Mix

Minute Maid

Minute Maid Enhanced

Minute Maid Fruit Falls

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(And are going on too many)

Products of coca cola as per Pakistan

Coca cola
Diet coke
Sprite
Kinley
Fanta
Minute maid puply
Sprite 3g

Business strategies of coca cola

Strategies
Positioning Strategy
It means that a company tries to give image to its product in the mind of the
customers. To give a true and positive picture of the product is the best positioning.
The company should promote its good points or comparative advantage which it
has over its competitor.
Differentiation Strategy
There are many bases on which a product can be differentiated but Coke has
differentiated its product on the following base:
Product Differentiation: Coke differentiates its product from its competitors on the
basis of brand, quality and taste.
Image Differentiation: Logo is used for image differentiation. Logo is what
establishes a brand name in the consumer mind. It is the brands identification,
signature and image.

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Promotional Strategies
Price Strategy Trade Promotion:
Coca Cola Company gives incentives to middle men or retailers in way a that they
offer them free samples and free empty bottles. By this these retailers and middle
man push their product in the market. That's why coca cola seen more in the
market. They have a good sale in the market because according to the expert which
product seen more in the market that sells more."Seen as sold".

Sale Promotion
Coca Cola Company also does sponsorships with different college and school's cafes
and sponsors their sports events and other extra curriculum activities for getting
market share. Normally they keep their freezers near the entrance of the stores.
Sale Promotion Company also does sponsorships with different college and school's
cafes and sponsors their sports events and other extra curriculum activities for
getting market share.
Distribution Channels
Coca Cola Company makes two types of selling
o

Direct selling

Indirect selling

1. Direct Selling: In direct selling they supply their products in shops by using
their own transports. In this type of selling company have more profit margin.
2. Indirect Selling : They have their whole sellers and agencies to cover all area.
For providing their product in good manner company has provided
infrastructure these includes, Vizi cooler, Freezers, Display racks etc.

Advertisement Strategies
Coca Cola Company use different mediums for advertisement.
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Print media
Pas material
TV commercial
Billboards and holding

Competitive strategies
Coca-Cola is a dominating force in the beverage industry and sets a very high
standard of competition. Research shows that its trademark is recognized by over
94% of the worlds population. There are many factors contributing to Coca-Colas
success:
Marketing:
Coca-Cola was among the pioneers of advertising techniques and styles used to
capture an audience. It was around 1900 when Coca-Cola began presenting their
signature drink as a delicious and refreshing formula. This slogan has been repeated
for over the last 100 years for selling Coke all over the world. The image has been
subconsciously installed in our brain by the advertising campaigns.
Innovation:
Coca-Cola has been able to survive in the ever changing market because of its
ability to systematically innovate and deliver new products. It was apparent that the
market was changing and in order to keep up with these changes, Coca-Cola had to
move from a single core product to a total beverage company. The company began
operating in a decentralized environment that was unfeasible in previous years.
Now Coca- Cola offers nearly 400 different products in and is still dominating the
beverage industry. This is made possible by the companys ability to innovate and
adapt to changing markets.

Operations functions of coca cola

It is an organized process of handling routine and non-routine procedure and
maintenance of tasks to achieve anticipated outcomes.
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The business purpose is accountable for planning, organizing, and controlling the
capitals needed for companys merchandises and services
In 1893 Coca-Cola, which is also known as Coke is a one of the biggest trademark of
freshwater. It is registered in the U.S. In 1886; Coca-Cola's founder was a
pharmacist. At that time American people take the Coke (Coca Cola) is an oral drug.
Lately when Asa Candler (brilliant businessman) bought Coca-Cola and through it
marketing made coke one of the leading dominancy in fresh water .This
transformation image of America during 20th century was huge
He said: customers first "medicine" Coke is actually a beverage and very delicious
and fresh.
This name originates from coca leaves and fruit. These two components has to do a
lot with Coca Cola period as people known Asa Candler as "A man's drug world".
Currently Coca-Cola is a very famous soft drink global company which consist of a
large product line as Coca-Cola Light , diet and lemon etc. Coke has too many
vendors and its distribution is so effective that it serves in almost in all shops and
mostly in summer or hot areas. It has a network of 200 countries worldwide.

Role of an operation management in Coca Cola Company:

The role of an operation management is to deal with the productivity system of
Coca-Cola Company. Here we need to identify its resources and system of
productivity to deal and design with manufacturing products. While considering this
we need to have clear idea of development. Utilization, production, design and
deliverance of objective into task of Operations management. Supply of Operations
management ranges from strategic to strategic and operational levels. Typical
strategic matters include shaping of location of industrial plants and deciding the
construction of networks, designing expertise supply chains.
Role of operation management:
For being an operations manager, there are many responsibilities and authorities
that has to be taken in account for contributing to the effective and efficient
production and manufacturing of services and goods. It also takes full responsibility
on the nature of structure and task. These procedures differ from each other in
terms of following types of operations.
Understanding strategic objectives:
Managers must clearly recognize the goals of a company to make break through
vision of achieving it. The motives that are translated into clear vision helps more in
benefiting the companys operation process as this is one of the highest demand
taken to be accomplished. It also involves interpreting these goals into inferences
for the operation's performance, goals, value, rapidity, dependability, elasticity and
cost.
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Developing an operations strategy: Number of decision making is involve to develop
managers strategy on long term alliances
Designing the operation's products, services and processes:
It involves the physical shape and composition of products and processes.
Planning and controlling: This is to decide what and which operations and resources
are needed to make management get control over the company.
Improving the performance of operation:
Operations managers are likely to repeatedly monitor and progress the overall
performance Cokes operation.

Competitive Advantage
Coca-Cola has a lot competitive advantages. Two of them are Management
expertise, and Market leadership. The Coca-Cola Company delivers the company
with executive helps develop executives capabilities, facts and experience
As Pepsi has a good name but everyone knows "Coke." Their brand is so popular
everywhere which has a major advantage. To imitate Coca-Cola brand is very hard
and costly .all super market and commercial stores are using Coke as its biggest
brand in the country. In UAE the demand of coke is more than Pepsi as coke has
much larger distribution channel and what the only reason they can sustain
competitive advantage. Its trademark is not to be impossible
(jeremiason, 2011 feb 24th)
Analysis and Appraisal of Competitive strategy of Coca-Cola
Market Leadership
Coca-Cola FEMSA is the largest bottler with operations in different parts of the
world.
Business partnerships
FEMSA is occupied together with the Coca-Cola Company for branding our products.
We have to make people that protective to capture imperative growth occasions in
Latin Americas fast-growing.
Cooperative customer relationships
Coca-Cola FEMSA looks to make customers relationship to get the fully deepen
relationship to its customers

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Multi-Segmentation
While implementing a multi-segmentation strategy markets our needs to drive multi
market is very strategic.
Sustainable Development
Sustainable development is a chief pillar of our Companys strategy. It helps in
promoting cultural , in communities health , wellbeing and support of distribution
channels.
Client Value Management to transfer our commercial models we need to identify
and focus on our customers value potential and satisfaction by using VBS
approach. New model is going to made in Brazil, Colombia and Central America.

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