10/28/2016

PepsiCoSWOTanalysis2016StrategicManagementInsight

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PepsiCoSWOTanalysis2016
OvidijusJurevicius|October19,2016

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CompanyBackground

KeyFacts
Name

PepsiCoInc.

Logo

Industries
served

Beverage(Pepsi,MountainDew,Gatorade,SierraMist)
Food(QuakerOats,WBD,RoldGold)
Snack(Lays,Doritos,Cheetos)

Geographic
areasserved

Worldwide(morethan200countries)

Headquarters

Purchase,NewYork,U.S.

CurrentCEO

IndraNooyi

Revenue

US$63.056billion(2015)5.4%decreaseoverUS$66.683billion(2014)

Profit

US$5.452billion(2015)16.3%decreaseoverUS$6.516billion(2014)

Employees

263,000(2016)

Main
Competitors

TheCocaColaCompany,DPSG,MondelzInternational,Monster
BeverageCorporation,HansenNaturalCorporation,NationalBeverage
Corp.,KraftFoodsGroup,TheKelloggCompany,ConAgraFoods.,
NestlS.A.,SnydersLanceandotherbeverage,foodandsnack
companies.

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PepsiCobusinessoverviewfromthecompanysfinancialreport:
Wearealeadingglobalfoodandbeveragecompanywithacomplementaryportfolioof
enjoyablebrands,includingFritoLay,Gatorade,PepsiCola,QuakerandTropicana.Through
ouroperations,authorizedbottlers,contractmanufacturersandotherthirdparties,wemake,
market,distributeandsellawidevarietyofconvenientandenjoyablebeverages,foodsand
snacks,servingcustomersandconsumersinmorethan200countriesandterritories.
PerformancewithPurposeisourgoaltodeliversustainedvaluebyprovidingawiderangeof
beverages,foodsandsnacks,fromtreatstohealthyeatsfindinginnovativewaystominimize
ourimpactontheenvironmentandlowerourcoststhroughenergyandwaterconservationas
wellasreduceouruseofpackagingmaterialprovidingasafeandinclusiveworkplaceforour
employeesgloballyandrespecting,supportingandinvestinginthelocalcommunitiesin
whichweoperate.
PepsiCowasagainrecognizedforitsleadershipinthisareain2014byearningaplaceonthe
prestigiousDowJonesWorldIndexfortheeighthconsecutiveyearandontheNorthAmerica
Indexfortheninthconsecutiveyear.[1]

SWOT

SWOTanalysisofPepsiCo
Strengths
1.Comprehensiveproductportfoliowithmorethan100brandsservingnearlyeveryniche
inthebeverage,foodandsnackindustries
2.Brandrecognitionandreputation
3.Focusoninnovationandcustomerorientedproducts
4.Oneofthelargestandthemostefficientlyusedadvertisingbudgetsamongbeverage
andfoodcompanies
5.Strongdistributionnetwork,whichenablespartnershipswithsomeofthelargest
beveragebrands

Weaknesses
1.OverdependenceonincomefromWalmartstoresandotherretailers
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2.OverdependenceonsalesfromU.S.market

Opportunities
1.Growingalcoholicbeverageindustry
2.ExpansionofreadytodrinkcoffeemarketinU.S.
3.GrowingRTDteamarketwithmanysmallerbrandsthatcanbeacquiredeasily

Threats
1.Concernsoverobesityandpotentiallydangeroussubstancesmayreducedemandfor
someofthecompanysproducts
2.PoorqualitywateranditsscarcitycouldnegativelyimpactPepsiCosproductioncosts
andcapacity
3.Increasedcompetitioninbeverage,foodandsnackindustriescouldhurtPepsiCos
business
4.TherisingU.S.dollarexchangerate

Strengths
1.Comprehensiveproductportfoliowithmorethan100brandsservingnearlyevery
nicheinthebeverage,foodandsnackindustries.
Commencingoperationsin1965,PepsiCohasbecomethesecondlargestfoodandbeverage
companyintheworldtoday.ThecompanyearnedUS$63.056billionin2015,secondonlyto
NestlS.A..PepsiCowasabletoachievethisviastrengtheningitsproductportfolioand
offeringasmanydifferentbeveragesandfoodsaspossible.
Thecompanysellsaround100differentbrands,ofwhich22haveeachgeneratedmorethan
US$1billiondollarsin2015.[1]Inaddition,morethan10brandshavegeneratedbetween
US$500millionandUS$1billioninrevenue.
Figure1.Brandportfoliobyworldslargestfoodandbeveragecompanies

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Source:Therespectivecompaniesofficialwebsitesandfinancialreports[1][2][3][4][5]
Figure2.PepsiCostopearningbrands(inUS$billions)

Source:PepsiCofinancialreport2011[6]

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PepsiCosbrandportfolioishighlydiversifiedandonlyTheCocaColaCompanyhasmore
brandsinthebeverage,foodandsnackindustries.Nocompetitorhasasmanyhighearning
brandsasPepsiCo.Theyeachrelyonafewmainproductstoearnthemajorityoftheir
revenue.Thismakesthemveryvulnerabletoanychangesintheircoreproductsmarkets.
PepsiCoisbetterequippedtosatisfytheneedsofitscustomerswithitswidevarietyof
successfulproducts.Thecompanyoffersnearlyeverytypebeverageorsnackanditsbrands
canoftenbesubstitutedforeachother.Forexample,LayscanbereplacedwithDoritos,
Cheetos,Ruffles,TostitosorFritos,soifoneproductdoesntsatisfyaconsumersneeds,
PepsiCocanoffermanymorechoices.Therefore,changesincustomertastesdonotaffect
thecompanyasseverelyastheywouldothercompanies.
2.Brandrecognitionandreputation.
PepsiCoownsandmarketssomeofthemostrecognizableglobalbrands,includingPepsi,
Tropicana,Gatorade,MountainDew,Aquafina,Lays,Doritos,Cheetosandmanyother
popularbrands.AccordingtoInterbrand[7]andForbes[8],thePepsibrandisrespectivelythe
24thand29thmostvaluablebrandintheworld,worthUS$19billioninbothrankingslists.
ForbesalsoidentifiedFritoLayasthe38thmostvaluablebrandintheworld,worthUS$13.1
billion.
ExceptforCocaColaandSprite,noothernonalcoholicbeveragebrandbesidesPepsihas
beenrecognizedasbeingoneofthetop100mostvaluablebrandsintheworld.
EuromonitormeasuredthemostpopularU.S.snackbrandsin2013and6ofthe10most
popularbrandswereownedbyPepsiCo.[9]
Figure3.Top10GlobalSnackBrandsbyShare,basedOnRetailValuein2013
Ranking

Brand

%Share

Owner

1.

Lay's

ownedbyPepsiCo

2.

Doritos

3.6

ownedbyPepsiCo

3.

Cheetos

2.7

ownedbyPepsiCo

4.

Pringles

2.3

5.

Ruffles

1.9

ownedbyPepsiCo

6.

Tostitos

1.6

ownedbyPepsiCo

7.

WantWant

1.4

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8.

Walkers

1.3

ownedbyPepsiCo

9.
Ranking

Planters
Brand

1.2
%Share

Owner

10.
1.

JackLinks
Lay's

1
7

ownedbyPepsiCo

3.6

ownedbyPepsiCo

Source:BakeryandSnacks[9]
2.
Doritos

Thecompanysellsitsproductsinmorethan200countries,soconsumersareawareof
3.
Cheetos
2.7
ownedbyPepsiCo
PepsiCosbrandsallovertheworld.OwningandsellingpopularbrandsalsohelpsPepsiCoto
crosssellitsotherbrandsorintroducenewproductstothemarketmuchmoreeasily.
4.
Pringles
2.3
5.

Ruffles

1.9

ownedbyPepsiCo

6.

Tostitos

1.6

ownedbyPepsiCo

Accessthefullanalysis...

BUYPEPSICOSWOT2016
7.
WantWant
Published:March17,2016
8.
Walkers
Format:PDF
Pages:21
9.
Planters
Price:USD$19
10.

JackLinks

1.4
1.3

ownedbyPepsiCo

1.2
1

ReasonstobuythisSWOT

20132016StrategicManagementInsight.Allrightsreserved.

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