COMPETITOR ANALYSIS

PepsiCo Background

PepsiCo is a world leader in convenient foods and beverages, with the revenue of $307.2

millions by 2004 and $367.1 millions by 2009 with 163,000 employees.

The company consists of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo

International and Quaker Foods North America. "Pepsi cola" was started in 1898 by “Caleb Bradham”.

This was the second company introduced in soft drinks field. The pioneered company was “Coca-Cola”

which was started in 1886 in Atlanta by Dr. John S. PepsiCo is 44 years old company. It was formed by the

merge of Pepsi Cola and Frito-Lay in 1965.

Now PepsiCo brands are available in more than 200 countries in the world. The world’s

headquarters of PepsiCo is situated in New York, USA. It occupies 144 acres in the city.

 In 1969, Pepsi Company introduced the modern red & white modern packing technology to make

the packs attractive. In the same year Frito-Lay introduced fungus brand onion flavoured snacks in

to the market.

 In 1970, Pepsi introduced the industry’s first two liter bottles. Pepsi is the first company to respond

to consumer preference with light weight, recyclable plastic bottles used for drinks.

 In 1971, Andral E.Pearson is appointed as the president of PepsiCo and he was in that position up to

his retirement 1984.

 In 1972, Don Kendrall announces agreement making that PepsiCo was the first foreign product sold

in U.S.S.R. is given the exclusive rights to improve the sales of Stolichnaya Russian Vodka in U.S.

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 In 1973 & 74, PepsiCo became the first American product to be produced and sold in former Soviet

Union.

 In 1975, Pepsi lite, with destructive lemon taste is introduced as an alternative to traditional diet

kolas.

 In 1776, PepsiCo adopts the worldwide business code of conduct. PepsiCo became the single largest

selling soft drink brand sold in U.S super markets.

 In 1979, PepsiCo started its reach and technology center in Vallah, New York, USA. This

increased sales of the company. In this year they introduced 12 packs cans.

 In 1980 & 81, in these years PepsiCo food service international was formed to focus on overseas

development of restaurants, and fitness centers for the health development of the employees of the

company.

 In 1982, PepsiCo introduced the caffeine free colas, first time in to the market.

 In 1983, the bottler hall of fame is established to recognize the achievement and dedication of

international bottlers.

 In 1984, Diet Pepsi was reformulated with 100%natural sweet, slice and diet slice are also

introduced in to the market. The “space cans” were introduced in to the market successfully.

 In 1986, the largest North American transportation company “North America Van Lines (NAVL)

was merged with Pepsi to improve the distribution channels of the company. The second plant was

started in China.

 In 1987, the new headquarters of PepsiCo was moved to New York, USA.
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 In 1988, PepsiCo is recognized along graphical lines East, West, South and central regions, each

with its own president and senior management staff.

 In 1989, Pepsi Company introduced share power stock option program for all employees becoming

the first large corporation tool award stock options through virtually all full time employees.

 In 1990, Pepsi Company was named as one of the most admired corporations by the fortune

magazine’s top 10 for the two successive years. Pepsi reentered in India with the collaboration with

“Punjab Agro Industries Corporation (PAIC)”.

 In 1991, Pepsi Company was named as one of the most admired corporations by the fortune

magazine’s top 10 for the third year also.

 In 1993, PepsiCo started its distribution of Lipton’s line of ready to dink tea national wide. PepsiCo

introduced Pepsi max, a soft drink with unique blend of sweeteners that delivers maximum cola taste

in a no sugar product.

 In 1994, Pepsi introduced Aquafina bottled water into test market and got great success.

 In 1995, Pepsi Company introduced 7up ice cola in to its product line. In the same year Lay’s brand

potato chips were launched in 20 markets of the world.

 In 1996, Pepsi Company started its website WWW.pepsi.com and it started its operations throughout

the world.

 In 1997, Pepsi Company announced plans to spin off its restaurants business as an independent

publicly traded company and sold its food distribution company to focus on its core beverages and

snack food business.

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  In 1998, Pepsi Cola celebrates 100th anniversary with first world wide Bottlers conference held in

Hawaii, the event is held during the same time as first Bottlers conference. Pepsi Company

introduced 2lit bottles in to the market.

 In 1999, Aquafina became official beverage sponsor of all American Soccor Stars victory tour.

Sprite was introduced in to the market and got success.

 In 2000, Pepsi Company launched new beverages line of fruit drinks like Apple, strawberry, peach

papaya, pink lemonade, and strawberry melon grime citrus.

 In 2001, Pepsi Company announced a new joint venture in Egypt combining the salt snack

operations of chip, the current market leader and tasty foods, which is owned by Pepsi Company.

MILESTONES OF PEPSI

2000-2008 Milestones:

2000 Milestones:

 Pepsi- Cola revives its “Pepsi Challenge” advertising campaign. Challenge includes Pepsi One and

Diet Coke as well as well as regular cola.

 Pepsi –Cola team up with yahoo Inc., the biggest web navigation company, in a multimedia

marketing campaign aimed at teens and young adults.

 Tropicana, in a joint venture with Galaxy Foods Co., introduced an icy smoothie soy milk-and-fruit

drink, made with juice, fruit puree along with soymilk and soy protein.

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  Aquafina brand bottled water became the best-selling brand of single-serve bottled water in US retail

channels.

 Pepsistuff.com, a website for merchandise, discounts and digital music files form biggest names in

movies, music, video games. Apparel and sports is launched in joint promotional with Yahoo.

2001 Milestones:

 Pepsi-Cola Company launched Dole single-serve juices in vending machines, coolers and other

retail outlets throughout the United States.

 Pepsi-Cola’s flagship brand had the new tagline, “The joy Of Pepsi”.

 Tropicana celebrated a company milestone of 300 billion fresh an orange squeezed since the

company began making country’s first ever mass distributed, not-from-concentrate juice in1947.

 Pepsi-Cola launches the bold new Mountain Dew Code Red nationwide in United Sates.

 Tropicana introduced smoothies. A natural juice-based product, smoothies combine fruit juices and

non-fat yogurt into a smooth, filling drink that delivers nutrition, taste and convenience.

 Frito-Lay introduces Lay's Bistro Gourmet potato chips.

 Pepsi-Cola Company introduces a "Pepsi Twist." Regular and diet versions of the crisp new cola

with lemon are entering retail outlets in selected U.S. markets.

 SLAM, the orange brand Mirinda, is launched in Italy.

 On August 2, PepsiCo merges with The Quaker Oats Company, creating a $25 billion food and

Beverage Company focused on the rapidly growing consumer demand for convenience.

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2002 Milestones:

 Aquafina debuts new line of great-tasting enhanced waters. Aquafina Essentials target active, health-

conscious adults in four lightly sweetened varieties including B-Power, Calcium+, Daily C and

Multi-V in 20-oz. bottles.

 Gatorade introduced new Gatorade ICE in three flavors- Orange, Lime and Strawberry.

 Tropicana Pure Premium announced sponsorship of Disney's award-winning show The Lion King.

 Tropicana® Pure Premium® introduces 14-oz. single-serve resalable bottle you can take with you

for the on-the-go- consumers. Diet Pepsi has a new look.

 "Mr. Green," a green-tinted carbonated soft drink with caffeine and ginseng, is launched under

SoBe's New Age beverage line in April.

 Aquafina debuts new line of great-tasting enhanced waters. Aquafina Essentials target active, health-

conscious adults in four lightly sweetened varieties including B-Power, Calcium+, Daily C and

Multi-V in 20-oz. bottles. PepsiCo published Health and Wellness Philosophy.

 Frito-Lay announces plans to introduce Lay's Reduced Fat chips and Cheetos Reduced Fat snacks.

Brand Pepsi has a new look.

 Tropicana introduces a new campaign with the tag line "So pure. So alive. Tropicana Pure

Premium."

 PepsiCo introduced Marathon Kids, a program that encourages kids and their families to be more

physically active and it got huge success throughout the world.

2003 Milestones:

 Pepsi-Cola launches Sierra Mist nationally.

 PepsiCo launches "Get Active/Stay Active" program.

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  Quaker Chewy introduces Quaker Chewy Wholesome Favorites and Quaker Chewy Trail Mix.

 Gatorade unveils In-Car Hydration System for NASCAR Drivers.

 SoBe sponsors U.S. Open Snowboarding Championships.

 Pepsi announces plans to launch Mt. Dew Livewire, an orange drink, this summer.

 Pepsi-Cola signs an exclusive four-year sponsorship deal with the Canadian Hockey Association,

making Pepsi the official soft drink.

 Pepsi announces four-year sponsorship agreement with the UK Football Association.

 Frito-Lay announces new line of snacks made with organic ingredients called "Natural Snacks."

 PepsiCo creates PepsiCo International, the business that will unite all international snack, beverage

and food units in an effort to drive faster growth and improved profitability around the world.

 Pepsi–Cola trademark turned 100 years old.

 Pepsi Vanilla is launched in the United States.

 Tropicana introduced Tropicana 100% Juice Blends.

2004 Milestones:

 PepsiCo Launches 'Health Roads' Wellness Benefit for Associates and Their Families

 PepsiCo's new "Smart Spot" program is featured as an example of the food industry's focus on

health and wellness in today's edition of USA Today.

 Frito-Lay Launches Doritos and Cheetos Halloween Treat Multi-Sacks.

 Frito-Lay's 24-count Multi-Sack variety pack won the Institute of Packaging Professional's (IOPP)

Integrity Award, one of the industry's top awards, at this year's AmeriStar Packaging Awards.

 Frito-Lay Introduces Doritos Black Pepper Jack

 Diet Sierra Mist Become Sierra Mist Free

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  Pepsi-Cola to launch Pepsi Edge, the first full-flavored cola with 50% less sugar, carbohydrates and

calories than regular cola.

 Pepsi Bottling Group (PBG) – PepsiCo's biggest bottler bought Phil Gaudreault ET Fils Ltee, a

Quebec-based Pepsi bottle.

2005 Milestones:

 PepsiCo Celebrates 40th Anniversary.

 PepsiCo launched Quaker Milk Chillers.

 Tropicana Launched All Fruit Smoothies.

 Frito-Lay Launches Quaker Oats in India

 Pepsi Foods Introduced Weight Control Instant Oatmeal

 Pepsi Lime and Diet Pepsi Lime Launch

 Tropicana Twister Soda Launched in April

 PepsiCo international and Lipton came into agreement and introduced new Lipton Original Iced Tea

and New Lipton Iced Tea.

 Tropicana Fruit Wise Campaign Launched.

 PepsiCo Health & Wellness Launches Everyday Smart Moves Magazine.

 Pepsi Celebrates 20th Consecutive Super Bowl With New Diet Pepsi Campaign.

 In selected cities cross the United States, Pepsi distributes more than three million free cans of newly

reformulated Diet Mountain Dew, marking the largest single-day sampling effort in company

history.

 Frito-Lay announces the launch of a new line of snack chips called Lay's Sensations and Tostitos

Sensations.

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  Frito-Lay launches Tostitos Multigrain; new snack brings flavor of four wholesome grains to one of

America's favorite tortilla chips.

2006 Milestones:

 Quaker Snacks Unveils Breakfast Cookies

 Doritos unveils new packaging, including an updated logo

 PepsiCo Launches Pepsi Limon in Peru

 PepsiCo Completes Acquisition of Stacy's Pita Chip Company

 PepsiCo Foodservice Partners With Cracker Barrel to Serve Up Fritos-Branded Menu Item

 PepsiCo Foodservice Pours Two New Account Wins: Famous Dave's of America and Roundtable

Pizza

 Pepsi Celebrates 20th Consecutive Super Bowl With New Diet Pepsi Campaign

 North American Coffee Partnership Launches New Starbucks Beverages, Starbucks Iced Coffee,

Starbucks Iced Coffee Light as well as Strawberries and Creme Frappuccino and Starbucks Double

shot Light

 PepsiCo India re-launches Mirinda

 SoBe Launches New SoBe Life Water

 Cheetos kicks off the biggest marketing campaign in its history with "Undercover Chester," an

integrated communications platform that asks consumers to help Chester Cheetah recover the stolen

recipe for Cheetos

 In selected cities cross the United States, Pepsi distributes more than three million free cans of newly

reformulated Diet Mountain Dew, marking the largest single-day sampling effort in company

history.

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  Frito-Lay announces the launch of a new line of snack chips called Lay's Sensations and Tostitos

Sensations

 Frito-Lay launches Tostitos Multigrain; new snack brings flavor of four wholesome grains to one of

America's favorite tortilla chips.

 Lay's Introduces Hot 'n Spicy KC Masterpiece BBQ Potato Chips.

 Frito-Lay cuts saturated fat in Lay's more than 50% for the health of the consumers.

 Diet Pepsi launches Jazz, a new line of zero-calorie colas available in rich flavors like Black Cherry

French Vanilla and Strawberries & Cream.

 Tropicana debuts Tropicana Pure--a new line of 100% premium juices

 Indra Nooyi named Chief Executive Officer of PepsiCo as of October 1, 2006

 Frito-Lay kicks of its nationwide rollout of Lay's with 100% Pure Sunflower Oil

 PepsiCo announces it will acquire New Zealand snack company Bluebird Foods

2007 Milestones

 PepsiCo signs Maria Sharapova for International endorsement of Gatorade and Tropicana.

 PepsiCo announces new Diversity & Inclusion Leadership Award inspired by Steve Reinemund.

 Aquafina launches Aquafina Alive—a low calorie, vitamin-enhanced water beverage. Fritos Corn

Chips celebrates 75th Anniversary with retro packaging.

 Tropicana launches Tropicana Fruit Squeeze, a 20-calorie drink with real Tropicana fruit juice.

 Lay's launches 'Share the Joy' program to help the Make a Wish Foundation raise funds.

 PepsiCo Announces 25% Dividend Increase and Raises Share Repurchase Target; Nooyi Assumes

Chairman Title.

 EPA Names PepsiCo 2007 ENERGY STAR(R) Partner of the Year.

 PepsiCo Makes Largest Corporate Purchase of Renewable Energy Certificates.

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  Pepsi launches "Design Our Pepsi Can" National Promotion.

 Indra Nooyi receives the Outstanding American by Choice Award.

 PepsiCo makes Fortune magazine's '100 Best MBA Employers' list.

 Indra Nooyi named as 2007 Working Mother 'Best Company for Multicultural Women'.

 PepsiCo wins two awards –Best Environmental/Wildlife Campaign and Best Cause Marketing Event

-- at Fifth Annual Cause Marketing Halo Awards.

 Pepsi wins Webby Award for its execution of the "Best Sports Website"

 PepsiCo earns spot in Black Enterprise Magazine's '40 Best Companies for Diversity'.

2008 Milestones

 PepsiCo Foundation announces two major new grants to Water Partners and Safe Water Network

programs to provide access to safe water and sanitation in developing countries.

 Forbes Names PepsiCo among Its Best Big Companies.

 PepsiCo India Commissions First Remote Wind Turbine to Generate Renewable, Clean Energy.

 Employees Lead Effort to Make Chicago Plaza First LEED-Certified PepsiCo Headquarters.

 PepsiCo Honored with 2008 Energy Star Partner of the Year Award.

 PepsiCo Foodservice and Naked Juice Expand Starbucks Presence.

 PepsiCo International's China Foods Wins "China's Top Leaders 2008" Award.

 Wall Street Journal Article Recognizes PepsiCo for Leadership in Employment of People with

Different Abilities.

 PepsiCo and Frito-Lay Join SmartWay in Commitment to Reduce Greenhouse Gas Emissions.

 PepsiCo Beats Coke in Race to Launch New Natural Sweetener (Stevia).

 PepsiCo Commits to Reducing Acryalmide Levels in Potato Chip Products and Restructured Potato

Snacks in California.

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  Subway Names PepsiCo "Vendor of the Year" for Sustainability Leadership.

ORGANISATION STRUCTURE

Managing Director

Finance & Accounts Administration of

Manager Recruitment

Accountant Director of Executives

Sales & Marketing Production

Department Department

Sales Manager

Factory Manager Production

Accounts Manager
Area Sales Manager

Shipping Production
Engineer
Fountain Pepsi Bottles Soft Drink
Quality
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Fountain Manager Accountant Control

There are five elements that comprise an organization structure:

 Specialization of activities

 Standardization of activities

 Co-ordination of activities

 Centralization and decentralization of activities

 Size of the work unit.

The word organization has two common meanings. The first meaning signifies institution or

functional group, and the second one refers to the process of organizing the way of work, which is arranged

and allocated among members of the organization, so that the goal of the organization can be achieved

efficiently. The organizing process involves balancing the company’s need: both for stability o one hand

and change on the other hand. The organization structure gives stability and reliability of its goals. While

altering an organization structure can be a means of adopting and bringing in about a change, which could

otherwise be a source of resistance to change.

Organization structure basically involves analysis of activities to be performed for achieving

organizational objectives grouping them in to various individuals and delegating them with appropriate

authority so that they can carry on their work properly. Organization structure can be defined as an

arrangement and relationship of component parts, which also helps to determine the position of the

company. An organization structure specifies the division of work activities and shows us how different

activities are linked.

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 Organization structure is a basic framework within which the managers’ decision making behavior

takes place. Structure basically deals with relationships. It is an important scientific concept. In dimple

terms it may be defined as a pattern in which various parts or components are interrelated or interconnected.

MARKETING FUNCTION

The success of any enterprise directly depends upon the success of its Marketing function. Is the

main function in this business? It plays a major role. After the production of the soft drinks, the functions of

the Marketing Dept. starts and it continue process. The word marketing is not a simple word; it is of many

complicated activities which should be undergone. The sales persons should have to search for the

opportunities and have to avail the opportunity. One Manager will be appointed to look after the total

marketing activities in that region and some team will be there under the manager to execute the function.

Marketing should be done on two concepts related to the customers psychology, those are;

 Fear of loss

 Hope of gain

That means the marketer will create these feelings in the customer’s mind to market their

products. For example Pepsi launched a promotional activity that see the crown of the bottle and win the

gold coin; it creates these above mentioned feeling. The customer will think that if I am not taking that drink

I may loss that gold coin (or) if I take that drink I can win that gold coin. These two sentences may be

similar to see, but there is a difference in these words. The customer may be attracted towards the product

because of any these two reasons.

The approaches may vary from product to product, time to time, and place to place. The

marketers have to create the need to the customer and have to show the solution for that need. Marketing

Management is the process of planning and executive the conception, pricing and distribution of ideas,

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goods and services to create exchanges with target that satisfy customer and organizational objectives. That

means marketing consists the distribution of soft drinks (distribution channels), promotional activities,

providing the information about the products, advertising of the products and etc.

Pepsi Company is giving the huge publicity about their products introduced in the market and

the products yet to come in to the market. They are using the big film stars, cricket players, tennis players

and etc. as their brand ambassador to attract the people. It creates a psychological feeling that their favorite

name and famed persons are consuming the products then why should I consume the product. The soft drink

companies are spending lots of amount on the advertising. There is always the cold war is going on. To face

the competition they are adopting various methods. The soft drink companies have to maintain good

relations with the distributors, dealers and the retailers, because they can make the profits and can break the

profits to the company. Because of this reason they will take care of these persons.

This business totally depends on the seasons; the sales of the drinks will be in peak level in

summer seasons. In the soft drinks industry without the marketing function they can not run the business. In

this industry the competition is more and uncontrollable, because of this reason the Companies have to think

of competing with the competitors. The Company is appointing the executives to improve their marketing.

The Executives will go to the retailers and explain about the products and the offers that are offered to the

retailers and to improve the business what type of support the Company will provide to the retailers. Some

supervisors will be recruited to supervise the marketing executives whether they are doing their duties

perfectly or not. To look after all the marketing department’s functions on Marketing Manager was recruited

in the top level. In this way the marketing structure will made. Logistics also include the marketing

function. The distribution of the soft drinks looked after by the marketing department only. They will supply

the drinks to the retailers and collect the money and the empty bottles from the retails. If the marketing

department is succeeded in all these functions then it is a successful marketing department. For this the

department will struggle continuously. Some researchers also will be there for the marketing reach in the

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company because if the company is implementing the same strategies for a long time and for all the areas

that many not be suitable for that time and area. For that the research department will do the continuous

research for the new strategies.

The Four “P” Components of Marketing Mix:

Marketing mix

Target Market

Product price place promotion

Product Variety List Price Channels Sales Promotion

Quality Discount Coverage Advertising

Design Allowances Assortment Sales Force

Size Credit Terms Location Public Relation

Service Inventory Direct Marketing

Returns Transport

The consistency of the product mix refers to how closely relate the various product lines are in end

use, Production requirements, distribution channels, or some other way. Pepsi Company’s product lines are

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consistent in so far so they are consumer goods that go through the same distribution channels. The lines are

less consistent so far as they perform different functions for the buyers.

These four product-mix dimensions permit the company to expand its business in four ways. It can

add new product line and can add more product variants to each product and deepen its product mix.

Finally, it can pursue more product-line consistency. The future of any product is totally depends on these

aspects. They should introduce the right product with a suitable price in a right place, at the same way the

promotions also should match the place. That means the advertisement should be in right manner.

Product Mix Width & Product line length for Pepsi Malaysia Pvt. Ltd. compared to Coke Company:

Product Mix Width

Soft drinks
Pepsi Coke
Pepsi Coca-Cola
Product Line 7 Up Sprite
Length Orange Mirinda Fanta
Mountain Dew Thumps Up
Lemon Mirinda Limca
Slice Maaza
Diet Pepsi Diet Coke
Evervess Soda Kinely Soda

American Marketing Association defines a brand as: a name, term, symbol, or design, or a

combination of them, intended to identify the goods or service of one seller or group of sellers and to

differentiate them from those of competitors. Thus a brand identifies the seller or maker. Under trademark

law, the seller is granted exclusive rights to the use the local brand name is perpetuity. Brands differ from

other Assets such as patents and copyrights, which have expiration dates.

Product:

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 The marketer has to do the survey to understand the needs and wants of the customer and has to

inform to the production department. Then the R&D department will do the research accordingly. The

production department will produce the product to fulfill the requirement of the customers. All these factors

come under this part of the product mix. Pepsi Company is producing many brands of soft drinks and doing

the marketing of those products. They are taking care of the quality of the products.

Price:

The company will fix the price of a product based on some aspects, those are; Production Cost,

Variable Cost, and some other things and they will finally add their desired profit to that cost and the final

cost of that product will be fixed. This is called the Maximum Retail Price (MRP). This step should be taken

care because the price of the product should be according to its quality, and also should be taken care of the

competitor’s price. If the price is too high when compared to the competitor and not worth of its quality then

the sales of that product becomes difficult and the company will face the losses. The company should also

have to think what will be the return on investment.

Place:

The company should think a lot before launching a product in to the market. They have to identify

where it is better to launch the new product first so that they can get success. Generally every company

selects a specific region to launch their new products, because first they will go for the test marketing before

the mass production of the production. If the customers are satisfied with that product then they will start

the mass production and launch in all areas. In case they found any fault with that product then they will

redesign the product and rectify that problem and re-launch the products.

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 They will take care of the distribution channels also while launching the new product in one area.

They have to design what will be the channel structure and what will be the results of that structure. Pepsi

Company following this structure;

Producer ----- Dealer------ Retailer ------- Customer

Producer-------company dealer------Retailer------Customer

They will also estimate the distribution cost that is transportation cost and will search for the

remedies to reduce the cost of distribution. The company should also think of the inventory, because they

have to stock the goods for sometime and will supply the product to the customers. For this they have to

arrange the warehouses.

Promotion:

In today’s competitive environment, having the right product at the right place, at the right time

may not be enough to be successful. Effective communication with the target market is essential promotion

is the ‘p’ of the marketing mix designed to inform the market place about who you are, how good your

product is and where you can buy it. Promotion is also useful to persuade the customers to try a new product

or buy more of an old product. The promotional mix is the combination of personal selling, advertising,

sales promotion and public relations that uses in its marketing plan. Above the line promotions refers to

mainstream media advertising through common media such as television, radio, transport, billboards,

newspapers and magazines.

The company will offer many things to the traders as well as to the consumers. If the company

will give good schemes to the dealers and the retailers then they will promote that brands and the sales will

be increased. In the same way the companies are also providing many offers to the consumers like:

 Drink Pepsi, see the crown and win foreign trips, cash prize and many more things.

 Drink Pepsi and go to World Cup offer.

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  Drink Sprit and win NOKIA Multimedia Mobiles.

 Drink 7up and win 7 Golden Lemons and many more gifts

In the case of soft drinks the Advertisement is the main promotional activity. The companies are investing

millions of rupees on Ads. They are preparing various types of Ads targeting different category of People.

They are preparing the Ads very innovatively in the way to attract the customers and against their

competitor. Through the Ads the company will create the feeling in the customers mind that this drink is

good and should go for that drink only. Many customers will go for same brands because of the influence of

the advertisements only. Some Ads will hurt the ego feeling of the customers and through that way also they

will attract the customers. In these ways promotional activities plays a vital role in the sales increase of a

product as well as it will create a brand image in the customers mind.

Comparison of the Slogans of the Pepsi and Coca - Cola:

The slogans are very important for the advertising purpose. The slogans will attract the

customers a lot. The slogans will give the views and the intentions of the company that what they want to

share with the customers. We can say slogan is an appeal to the customers about the products of the

company. Pepsi and Coke have very different targeting strategies. Pepsi is promoting itself as something

new , young and hip, which seems a little odd aver 100 years. Coke is tuning itself as the original, the

authentic and appealing to a sense of traditional one. Pepsi has always targeted the youth market more

aggressively than Coke. The companies have been changing their Logos continuously to attract the new

customers. They are trying to create the new image and look to their Companies through changing the

Advertisements taglines.

Slogans of Pepsi Company Slogans of Coke Company

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1903 – Exhilarating, invigorating, Aids 1886 – Drink Coca-Cola

Digestion. 1904 – Delicious and Refreshing

1907 – Original Pure Food Drink 1905 – Good All the Way Down

1909 – Delicious and Healthful 1906 – The Drink of Quality

1915 – For All Thirst-Pepsi-Cola 1906 – The great National Temperance

1919 – Pepsi-Cola-it makes you Scintillate 1907 – Delicious Coca-Cola, Sustain,

1920 – Drink Pepsi-Cola. It will satisfy you Refreshes, Invigorates.

1928 – Pepsi you Up! 1908 – Sparkling-Harmless as Water and

1932 – Sparkling, Delicious. Crisp as Frost.

1934 – Refreshing and Healthful 1909 – Delicious, wholesome, Refreshing

1939 – Twice As Much For A nickel Too 1910 – It Satisfies

1943 – Bigger Drinks, Better taste. 1911 – It’s time to Drink Coca-Cola

1949 – Why taken less When Pepsi is best? 1912 – Demand the Genuine-Refuse

1950 – more Bounce to the Ounce Substitutes.

1950 – The light Refreshment 1913 – The Best beverage Under the Sun

1954 – Refreshing without Filling 1914 - Demand the Genuine by Full Name

1958 – Be Sociable, have a Pepsi 1916 – just One Glass Will Tell You

1961 – Now It’s Pepsi, for those who think 1917 – Three Million A Day

Young. 1919 – Quality Tells the Difference

1963 – Come Alive! You’ve in the Pepsi 1920 – Drink Coca-Cola with Soda

Generation. 1922 – Thirst knows no Season

1967 – Pepsi Pours it on 1923 – Refresh Yourself

1969 – You got a lot to live and Pepsi got a 1924 – Pause and Refresh Yourself

Lot to give. 1925 – The Sociable Drink

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1973 – Join the Pepsi People, feeling free 1926 – Stop at the Red Sign

1975 – Have a Pepsi Day 1927 – Around the Corner from Anywhere

1978 – Catch the Pepsi Spirit 1928 – A Pure Drink of National Flavours

1981 – Pepsi Got your Taste for life. 1929 – The Pause that Refreshes

1983 – Pepsi now! 1930 – Meet Me At the Soda Fountain

1984 – Pepsi, the choice of a new 1932 – Ice-Cold Sunshine

Generation. 1933 – Don’t Wear A Tired, Tired Face

1992 – Pepsi, Have it! 1934 – Carry a Small Back to Work

1993 – Be Young, Have Fun, Drink Pepsi 1935 – All Trails Lead to Ice-Cold

1995 – Nothing else is a Pepsi Coca-Cola

1999 – The joy of Cola. 1936 – What Refreshment Ought to be

1938 – The Best Friend Thirst Ever had

1939 – Make Travel more Pleasant

1940 – Bring in Your Thirst and Go Away

Without it.

1941 – Completely Refreshing

1942 – Refreshment that Can’t be

Duplicated.

1943 – The only think like Coca-Cola is

Coca-Cola itself. It’s the real thing.

1944 – How About A Coke

1945 – Passport to Refreshment

1947 – Coke knows no season

1949 – Coca-Cola…. Along the highway to

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 Anywhere.

1951 – Good food and Coca-Cola just

Naturally go together.

1954 – For people on the go

1956 – Feel the difference

1957 – Sign of a Good Taste

1958 – The cold, Crisp taste of Coke

1959 – be really refreshed listen to Connie

Francis

1960 – Relax with Coke

1961 – Coke and food-Refreshing new feel.

1962 – Coca-Cola Refreshes you best.

1965 – Something more than a soft drink

1966 – Coke…After Coke…After Coke

1970 – it’s the real thing listen to the

Carpenters

1971 – I’d like to buy the world a Coke

1976 – Coke Adds life

1979 – Have a Coke and Smile

1984 – Just for the taste of it (Diet Coke)

1985 – We’ve got a taste for you

(new Coke)

1986 – Catch the Wave (New Coke)

1987 – You can’t beet the real thing

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 1989 – Can’t beat the feeling

1990 – Can’t beat the real thing

1993 – Always Coca-Cola

2001 - Thanda Matalab Coca-Cola

2003 – Coca-Coal Enjoy

When we compare the total slogans of the two companies we can first understand that Coke

Company frequently changed its Slogans, some times trice and trice a year. But in case of Pepsi Company is

not changing its slogans frequently. The slogans of Pepsi are not realistic and the company is exaggerating

the features of the drinks and the company. Coke Company prepared its slogans in a realistic way and which

is nearer to the features of the drinks and the company. Now Pepsi Company is not using any slogans for its

drinks. Coke Company also not using the slogans that much frequently because the present day customers

are taking care of the features of the product, taste of the products and packing of the products not the

slogans of the Company.

Comparison of the Logos of Pepsi and Coke:

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25
 From the above picture we can observe that from origin itself Pepsi Company has been changing

its Logos but Coke Company has not at all changed its Logo form the beginning. From this we can

understand that Pepsi Company has been trying to create some place in a differently with its new Logos

where as Coke Company tried to fix the same Logo as brand name. Previously the name of Pepsi is Pepsi-

Cola, and now it is changed to Pepsi. The reason for changing the Logos of Pepsi continuously was it

merged many of the largest Food Companies with Pepsi like Tropicana, Fritos Lay and Galaxy Co. and etc.

every time when merged with any Company it changed its Logos, because of this reason Pepsi became the

largest food based products producer in the world. Coke Company is confined to the soft drink production

only. As Coke Company has not changed its Logo, it is totally fixed in the minds of the people of the world.

The people of the world have some what confusion on the Logo of Pepsi Company as it changed its Logos

Continuously.

Even though Pepsi Company changed its Logos continuously, it has not changed its slogans that

much frequently. But in case of Coke Company, it has not at all changed its Logo but changed its slogans

very frequently, sometimes thrice and trices a year. From this it is concluded that Pepsi Company tried to

create a brand image of the Company in the minds of the customers using its different Logos but the same

Slogans about the products. But in case of Coke Company it tried to create a brand image of the Company

with the same Logo and different Slogans about the products. In this manner the two giant Companies in the

soft drinks industry compared and differentiated with each other.

This cola wars became very common to the soft drink Companies. Soft drinks became a part

of every day life of the people in all over India and other countries of the world. The pop culture has made

resisting the temptation of sugar based carbonated beverages virtually impossible for most. The soft drink

war between Pepsi and Coke keep on going and increasing day by day. They are using the different

techniques to attract the customers towards their products mainly the cola products. The cola products are:

Pepsi Coke

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 Pepsi Coca-Cola

Thumps up

Coke Company has the two cola brands, whereas Pepsi has only one brand of cola. Pepsi Company

is using excellent marketing strategies, such as celebrity appearances to sell their products where as Coke’s

realistic approach has placed them at the top of the soft drink industry, mainly in the case of cola sales. We

can observe the cola war through the Advertising of the two companies in the television. They prepare the

Ads to compete with one another. They will hire the famous persons and the celebrities for their Ads. They

will invest lots of amount on advertising. Through the advertising only the sales of the soft drinks are in

creased. Even though Pepsi trying to get the No-1 place in the soft drinks industry the statistics have shown

that they are not able to get that position when compared to Coke Company for the past few years.

In case of Advertising Pepsi dominated Coke because most of the customers are attracted toward

the Pepsi Company’s Ads only not to the Coke Company’s Ads because Pepsi is spending more on

advertising preparation when compared to Coke Company. Pepsi Company is using the famous celebrities

when compared to Coke Company and this increases the influence of the advertising on the customers. Both

companies are conducting their operations successfully in more than 200 countries in the world. The war is

going on in every country all over the world. Pepsi changed its Logos frequently 9 times from its origin but

Coke Company has not at all changed its Logos, this is a great thing that we can observe.

HR FUNCTION

Respect for Our Employees:

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 We believe our most important strength is our employees. We seek to provide a work environment

where all employees have the opportunity to reach their full potential and contribute to PepsiCo's success.

We emphasize personal integrity and believe long-term results are the best measure of an employee’s

performance. PepsiCo respects the human rights and the dignity of all employees. We endeavor to treat our

employees fairly and honestly. We strive to maintain a safe, secure and healthy workplace and it is against

our policy to use forced or child labor. We also strive to follow all applicable employment laws and

regulations. We are committed to equal opportunity in all aspects of employment for employees and

applicants. This means providing a workplace free from any form of discrimination or harassment,

including sexual harassment. We seek to create a work environment where people feel comfortable and

respected, regardless of individual differences, talents or personal characteristics. Our objective is for the

diversity of our employees to reflect the diversity of the population wherever we operate and for the

performance of all employees to be judged fairly and based on their contribution to our results. PepsiCo

encourages an inclusive culture, which enables all employees to do their best. This means us:

 Welcome and embrace the strengths of our differences,

 Treat each other with respect and fairness, and

 Foster an atmosphere of trust, open communications and candor.

We recognize the needs of individuals to achieve professional and personal balance in their lives.

We also respect employee privacy and will acquire and retain only that employee personal information that

is required for operation of the Company’s business or required by law.

Health and Safety:

PepsiCo is committed to providing safe and healthy work environments at its facilities for all its

employees, visitors, contractors and vendors. It is our policy to provide employees with a drug-free

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workplace. In order to create an environment free from threats, violence and intimidation, we are committed

to a policy of zero tolerance for violence. We are dedicated to designing, constructing, maintaining and

operating facilities that protect our people and physical resources. It is our policy to comply with all

applicable health and safety laws and regulations, provide and require the use of adequate protective

equipment and measures, and insist that all work be done in a safe and responsible manner. It is the

responsibility of each employee to follow all Company policies and procedures related to workplace health

and safety.

Responsibility for Compliance:

All employees are expected to display responsible and ethical behavior, to follow consistently both

the meaning and intent of this Code and to act with integrity on a daily basis. Managers and leaders are

expected to ensure that our business processes and practices reinforce the Code, to serve as positive role

models by establishing and adhering to high ethical standards, and to create an ethical culture by

encouraging and rewarding actions that are consistent with the Code. This Code cannot provide definitive

answers to all questions. For that, we must rely on each person's judgment and integrity. You are

encouraged to seek guidance when a situation may not be clear. Your supervisor, Human Resources

manager or the PepsiCo Law Department will respond to questions and issues of interpretation about this

Code. Waivers of this Code will be reviewed by the General Auditor and General Counsel, and in certain

circumstances by the Board of Directors, and if required, will be appropriately disclosed.

FINANCE FUNCTION

Any company, which has to start and operate its business, has to invest its capital in fixed assets and

floating assets and it also has to meet the daily requirements of the company. However, depending on the

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nature of the business and the product being offered by the company, the ration of investment of capital in

fixed and floating assets differs.

Types of Capital Amount (Million)

Funds employed 60

Working capital 15

Institution finance 40

Protection and Proper Use of Company Assets:

PepsiCo’s technological resources, including computers, voicemail, e-mail and Internet access, are

to be used for proper purposes in a manner consistent with the Code and all other Company policies,

including those related to discrimination, harassment and intellectual property. As with all PepsiCo assets,

these resources are to be used for business purposes. It is generally not PepsiCo’s intent to monitor Internet

access or messages on the voicemail and email systems. However, the Company reserves the right to do so

in appropriate circumstances, consistent with applicable laws and regulations. If you access to PepsiCo.com,

we cam get the information regarding the precautions steps to prohibit unauthorized access to the system.

You should safeguard your passwords or other means of entry. Employees must not reproduce software

assets licensed to PepsiCo, use illegally obtained software or distribute the original software media or

unauthorized copies of software which the Company does not own or license.

Accounts and Record-Keeping

We will continue to observe the most stringent standards in the keeping of our financial records and

accounts. Our books and records must reflect all components of transactions, as well as our own standard of

insisting upon an honest and forthright presentation of the facts. We will ensure that the disclosures we

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make in reports and documents that we submit to the Securities and Exchange Commission and in other

public communications are full, fair, accurate, timely and understandable. It is the responsibility of each

employee to uphold these standards. Appropriate records must be kept of all transactions and retained in

accordance with PepsiCo’s Records Management Policy and Records Retention Schedule. Employees are

expected to cooperate fully with our internal and external auditors. Information must not be falsified or

concealed under any circumstance and an employee whose activities because false financial reporting will

be subject to disciplinary action, including termination.

Financial comparison of Pepsi and Coke:

During 2008, the two companies turned in a remarkable similar set of financial results.

 Pepsi Company generated $20.4 millions throughout Malaysia, whereas Coke Company generated

$20.5 millions. Here Coke Company earned more money when compared to Pepsi in Malaysia. So

Coke dominated Pepsi in terms of the revenue generation.

 Pepsi Company earned $2.2milion in net profit and Coke Company earned $2.2million net profit.

Here the two companies are earning profits equally. So we can understand that these two companies

are competing with each other in an equal position. For this they are adopting new strategies for the

growth of their revenue and the profits.

 Pepsi Company generated free cash flow of $2.9 billion, whereas Coke Company also generated the

same amount of $2.9 million of free cash flows.

Criteria Pepsi Company Coke Company

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 Sales Growth 12.8 % 12.0 %

Gross Margin 69.6 % 61.1 %

Net Margin 10.7 % 10.6 %

Cash-to-Debit ration 0.55 % 0.33 %

Thus, Pepsi Company is either tied or has the edge over Coke in ever category except Gross

Margins. The sales growth rate of Pepsi is growing faster than Coke Company. This is because of the

strategies adopted by the Pepsi Company. Even though 92% of the people through out the world know the

brand name of Coke, they are not able to capture the highest market share when compared to Pepsi. Pepsi

has a better ration of cash versus debt. Pepsi Company is the leader of the snacks producer in the world

having 46% of the total market share and more than seven times the size of its next largest competitor,

whereas Coke has not at all entered in to this field. In this way also Pepsi dominated Coke in the field of

snacks production.

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