Introduction

Pepsi co, the world number two supplier of cola beverages after coke cola. Pepsi have start
with its cola carbonate drink way back 1898 when it was invented by Caleb Bradham. Today
the company still remain it core business and diversified into many other business such food
and other snacks. It have produced 19 mega brand that each generated about US$1 billion or
more in term of annual retail sales in year 2010. Most of it brands come from breakfast food,
non-alcoholic beverage, salty snacks, juices, sport drinks and Quaker. These items are many
introduced by PepsiCo and acition of small company joint with Pepsi.
Today we can say that PepsiCo have a couples of competitor for different products, such as
Coke Cola, The company which compete with PepsiCo on non-alcoholic braverage. While
PepsiCo tea is compete with Nestle products, and the snacks products are compete with
Krafts.
This purpose of this project is to discuss strategies adopts by PepsiCo in their current markets
(2008) and also what is the strength, weakness, opportunity and threat that need to create
industrial analysis. We also want to compare PepsiCo with its competitor on CPM.

History of PepsiCo
PepsiCo was founded in 1965 via the merger of two major corporations, Pepsi-Cola and Frito
Lay. Subsequently in 1998, Tropicana was acquired to add the family of brands under
PepsiCo. In 2001, the Parent Company made yet another bold step in the merger with The
Quaker Oats Company, which also then included the Gatorade Company. Through the
multiple brand acquisitions and developments PepsiCo is now a leading conglomerate
owning significant market control and brand equity in consumer convenience foods and
beverages. From its humble beginnings over a century ago, Pepsi-Cola has grown to become
one of the best-known, most-loved products throughout the world. Today, the company
continues to innovate, creating new products, new flavours and new packages in varying
shapes and sizes to meet the growing demand for convenience and healthier choices. Their
brands have available more than 200 countries around the world with an increase of revenue
constantly each year about 33%.
PepsiCo have a good organization structure and strategies in term of organizing it products
and management of its acquisition companies. PepsiCo Family comprise with 4 main
company that are Frito-Lay North America, PepsiCo Beverages North America, Pepsi Latin
America Beverages, and Quaker Foods North America. Frito-Lay North America markets
and sells to the subject geographical regions the following well known brands of convenience
foods: Fritos, Lays, Cheetos, Ruffles, Doritos, Rold Gold, Tostitos, Sunchips, Munchies,
Crackerjack, Go Snacks, Quaker Fruit and Oatmeal Bars, Quakers Corn and Rice Snacks, and
even more. Frito-Lay North America sells to the products to its end user is a consumer who

has demand for a snack food, or convenience food. Several of these products are facing new
market changes including a health conscious consumer movement.
Thus, a great diversification of product lines within the PepsiCo Family is The Quaker Oats
Company, merged in 2001, just on the cusp of the health conscious movement. Brands
include Quaker Oats products, Aunt Jemima products, and Rice-a-Roni products. The
Gatorade brand rights are legally owned by this Corporation, yet it is sold and marketed
through PepsiCo Beverages North America. Pepsi Latin America Beverages markets and
sells the North American product brands abroad, and in additional markets and sells the
Mirinda, Walkers, Sabritas, Gamesa, etc. and several others in multiple countries . Each of
these subsets of brands is developments of unique products tailored to each geographical
culture it is marketed to and also suits the to the countries laws.
PepsiCo Beverages North America the company which was originally founded in 1898 by a
North Carolina druggist sells several brands of consumer beverages in the United States and
Canada. The various beverage products span through carbonated soft drinks, juices,
readymade teas, isotonic sports drinks, bottled water, and enhanced waters. The several
established brands include Diet Pepsi, Mountain Dew, Gatorade, Tropicana products,
Aquafina Water, Sierra Mist, Mug, Propel, Sobe, and Dole. Outside of manufacturing and
selling bottled products, the Company manufactures and sells concentrates for some of the
above mentioned brand name beverage products to licensed bottlers.
The Company has also established strategic partnerships with Lipton and Starbucks to create,
market, and sell ready to drink Lipton tea brands and bottled ready to drink Starbucks
Frappuccino drinks. This what it calls as Co-branding strategies partnerships.

Mission
Our mission is to be the worlds premier consumer products company focused on convenient
foods and beverages. We seek to produce 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.
This is achieved through sales growth, cost controls and wise investment of resources.
PepsiCo believes that their commercial success depends upon offering quality and value to
their consumers and customers; providing products that are safe, wholesome, economically
efficient and environmentally sound; and providing a fair return to their investors whiled
hearing to the highest standards of integrity

Review of Mission Statement

To continue to offer quality food and beverage products with increasing growth in the
industry and expanding globally.
Our mission has always been to provide a competitive edge by developing the most
convenient and distinguish food and beverage products.
Keeping in mind fair labor practices in all our suppliers factories, while maintaining
a competitive advantage, with the shareholders interests, and company profits in
mind.
We also believe our employees are one of our most important assets.
To increase the responsibility towards the environment by evaluating the impact of
day to day operation and attempts to change operations that have a negative impact.

SWOT Analysis of PEPSICO

Strengths

Diversified it business to other non-alcoholic, Savory Snack and Breakfast

Cereals from world cola domination.
Pepsi have always been number two behind coke cola in supplying cola carbonates
drinks. Today market to be more sustain in the industry, PepsiCo have diversified it
business to food and breakfast cereal. This after the acquisition of Frito-Lay North
America company ,Quaker company and couple more company. Today with
diversified, PepsiCo is one of american leading company in supply of non-alcoholics
beverage, savory snacks and breakfast cereals in it country and to outside US
countries.

Target customer of young generation, who are more loyal to snack and
carbonated drinks
Most of PepsiCo product is mostly target to younger generation, as especially the
snacks and the other carbonats drinks.

Allocated good budget for good advertisement especially to same memorable

slogan that remain in minds of ultimate consumer.
Pepsi always produce good advertisements that have heavily catch slogan, songs and
celebrity endorsement. This needed because Pepsi need to compete with competitors.
Another reason, most consumers would be great Fans to the celebrity that Pepsi
endorsed, due that they will be some sentimental to suits to Pepsi products. Slogan
and advertisement need to change very frequent like 6 month once so that consumer
does not come brought with the products. And also is purposed why PepsiCo needs
always come with the most catching advertisement and slogan that remind the
consumer.

Non- alcoholic beverage is still leading with 51% but Food and snake which have
49%.
In 2010 financial reports, PepsiCo most revenue was from non-alcoholic beverage,
but the food , snacks and Quaker have catch up to 49% compare to 2008 which was
40%. This show that there is good improvement and equal abilities of all Pepsi
products.

Chart 1: From 2010 financial highlight between PEPSICO core products.

American markets are still controls Pepsi revenue that is 53% than country
outside the worlds.
Also in 2010 financial highlight, Pepsi still controls and gets its highest revenue from
American market. This is shown in chart 2.

Chart 1: From 2010 financial highlight between PEPSICO core products.

Frito-Lay North America brings the most net revenue and operating profit that
about 37% total operating profit to Pepsi.
The two chart 3 and 4 show that in 2010, PepsiCo Americas Foods (Frito-Lay North
America) have contribute the higers net revenue and operating profits. This a strength
to pepsico, as before this PepsiCo Americas Beverages was dominating, with 2010 the
food and snaks have improved.

Chart 3 and Chart 4: PepsiCo 2010 Net Revenue and Divisional operating Profit.

Pepsi Net Revenue grew 33% increase 2010.

Pepsi have been constantly maintaining constant net revenue of 33% every year. This
shows a good financial income and there is always an increase year by year. Pepsi
also should look investing to other countries.

Weaknesses

Product is targeted for young generation only.

As we know most of PepsiCo product is on can be cater for younger generation. Due
to health conscious, most of the carbonate drinks and salty snacks are mostly mend
for younger generation. The older generation are only able to have quaker oats and
some aunty jams products.

Long term debt at 2008 has increase about 53% of previous day.
We notice that PepsiCo long-term debts have increase about 50% more than the
previous year. This is not good effect to the company, as the same year the net income
too have reduce about 10% from the previous year.

On Beverage product, Pepsi is not in control during bottling and distributions of

product in order to control the final quality to the consumer.
As Pepsi have outsource it Bottling for non-alcoholic beverages, this make difficult
for Pepsi to make sure that that the product reaches to consumer is a quality product.
Secondly Pepsi just supplier the syrup for the carbonate drinks, some time the bottling
can make the syrup that been contaminated.

Overdependence on US Markets ~ Consumer switched to stone brands and tap

water that alternative cheaper.
Pepsi been mainly focus to US markets, as the amount sales show that most of Pepsi
revenue is depend on US market. This is not a healthy way, if there is any problem to
US market, Pepsi will be affected the most in financial year of that particular year. It
should be good if Pepsi can globalize it business concentrate more booming markets
such India and China market rather than fully depend to US.

Image Damage Due to Product Recall

In America, pepsi reputation was suffered due to product recall. Aunty

Opportunities

Increase the sale of product around the world

Pepsi have increased it sale of product around the world. Till today there is about 200
countries have been selling all Pepsi products. This is good opportunities to Pepsi.

Investment heavily on expansion to Russia and china with allocation of US $ 500

bil.
We understand that Pepsi is in the negoation to acquire a local product in Russia, thru
this product Pepsi plant to invest USD 1 Billion. In China, Pepsi is trying to compete
with its comparetitor in order to overtake coke that has 47.3% in that market.

Have sponsors many CSR programs, sport, and foundation programs, so that
Pepsi brand can reach worldwide.
Pepsico has undertaken numerous projects and alliance around the world, working
with such groups as the earth institute at Columbia University, the Chinese Womans
Development Foundation, The Energy and resource Institute, Keep American
Beautiful, Exnora, and UNICEF, Divisions within PepsiCo have also initiated projects
to increase use of recycled materials and reduce materials used in packaging.

Changing social trends providing product to all range of age group

PepsiCo is changing it trend by need to produce more products to take care consumer
that are older generation. This such as it sport drinks and Aquafin mineral water.

Internet advertisement to gain customer young around the world

PepsiCo is using YouTube gain free customer by advertising at there. As most of
PepsiCo advertisement are in internet and can be easily seen.

Tie up with more bottlers company to make the business easier.

This is good opportunities that PepsiCo can take the risk such as strike at factory that
can closedown many PepsiCo sales. This happen in India, so to have the risk

prevention, PepsiCo should tie up with more bottling companies so there is no on

major play to a country.

Increase to use house brand product to keep initial cost low.

PepsiCo should have keep
Growing Savory Snack and Bottled Water market in US
Acquisitions & alliances ~more need for business enhasment

Threats

1 Market is driven by consumer taste and health consideration.

1. Beware with local water in developing countries that can contaminate Pepsi
beverages.
2. Government regulation with local law & order has prevented Pepsi to sell it
products.
3. Globally reduce on carbohydrate drinks due to health concern have further
reduce the growth on the drink.
4. Not expense to many part of the world.
5. Not environment friendly in bottling product that can cause global environment
effect
6. Pepsi is competing with major competitors in various segments such as cokecola in beverage, nestle in water and Kraft food
7. World Random Currency fluctuation.

Financial Analysis
Financial Ratio for 3 years 2008-2010
Remarks/
Comment

Years

2010

2009

2008

Liquity Ratio
Current Ratio
Quick Ratio
Activity Ratio

1.11
0.89

1.44
1.14

0.81 Good
0.65 Not good

Inventory Ratio
Average Receivable
Ratio
Profitability Ratio
Gross Profit Margin
Net Profit Margin
Solvency Ratio
Debt ratio

16.51
17.15
17.15 time
times
times Good
39.90Days 39.04Days 39.52Days good

0.14%
0.11%

0.19%
0.14%

0.68

0.56

0.16% Poor
0.12% Poor
0.66 Not Good

Liquidity Analysis
The current ratio is indication that company is good to paying obligation although the in 2010
the ratio have drop. In the Quick ratio, it show that after minus out the inventory which have
not sell, company is in the bad condition, as ratio have decrease.
Activity Ratio
The inventory turns over ratio shows that it takes 17 times to replenish with new products. It
shows that the sales of PepsiCo are good and maintaining the constant replenish.
As average account receivable show that it take almost 1 month for the products to get back it
return. This is consider the norm of industry, while in PepsiCo it shows that past three year
the average account receivable is constant.
Solvency Ratio
The solvency for PepsiCo is very low, but it has increased in 2010. These show that company
have taken a new obligation in term to increase its business operations. PepsiCo need to be
careful not let the ratio increase, need tp payback it debt constantly until it mature.
Profitability Ratio
The Gross Profit Margin with respect to the previous year is decreased and poor in the ratio
analysis its maybe the production cost increases which is not earn favourable profit. While
the net profit after tax shows that the same of gross profit margin. Overall all the analysis of
profitability ratios interpret that it a poor conditions for the company.

Overall reviews
The overall performance of PepsiCo is getting on a good track. The total turnover of the
company has registered a increase of US $ 119 Billion increase in world sales. We also notice
there were an increase in short term loan to further expand. That is the reason its liquidity
ratio and activate ration is low. There are still constant sales as it inventory and average
account receivable show that sales are still good. With the increase in capacity on account of
expansion projects being undertaken by the company, it is expected that the company would
be in a position to maintain the growth in future years.

The External Factor Evaluation (EFE) Matrix

Increased the sale of product outside US

0.08

Weighted
Score
0.32

Investment heavily on expansion to Russia and China with

allocation of US $ 5 bil.

0.08

0.24

Have sponsors many CSR programs, sport, and foundation

communitiee programs, so that Pepsi brand can reach
worldwide.

0.06

0.18

Changing social trends providing product to all range of age

group

0.04

0.08

Internet advertisement to gain customer young around the

world (youtube)
Tie up with more bottlers company to make the business
easier
Increase to use house brand product to keep initial cost low.
Growing Savory Snack and Bottled Water market in US
Acquisitions & alliances ~more need for business
enhasment

0.04

0.12

0.01

0.03

0.04
0.07

2
3

0.08
0.21

0.09

0.27

No

4
5
6
7

Opportunities

Weight

Rating

No

Threats

Market is driven by consumer taste and health consideration.

0.09

0.27

Beware with local water in developing countries that can

contaminate Pepsi beverages.

0.09

0.36

Government regulation with local law & order has prevented

Pepsi to sell it products.

0.04

0.08

Globally reduce on carbohydrate drinks due to health

concern have further reduce the growth on the drink.
Not expended to many part of the world. (third world
country)

0.05

0.1

0.02

0.04

Not environment friendly in bottling product that can cause

global green house effect
Pepsi is competing with major competitors in various
segments such as coke-cola in beverage, nestle in water and
Kraft food

0.02

0.04

0.08

0.32

Raising of commodity prices, affecting the cost of our raw

materials and energy

0.04

0.12

World Random Currency fluctuation ~ Venevela currency

and US dollar
Total

0.06

0.12

5
6
7

2.98

10

The Internal Factor Evaluation (IFE) Matrix

No

Strength

Weight

Rating

Weighted
Score

Diversified it business to other non-alcoholic, Savory Snack

and Breakfast Cereals from world cola domination.

0.1

0.4

Target customer of young generation, who are more loyal to

snack and carbonated drinks
Have allocated good budget for good advertisement
especially to same memorable slogan that remain in minds
of ultimate consumer

0.07

0.21

0.09

0.27

Non- alcoholic beverage is still leading with 51% but Food

and snaek which have 49%.*

0.05

0.15

American markets are still controls Pepsi revenue that is

53% than country outside the worlds.
Frito-Lay North America brings the most net revenue and
operating profit that about 37% total operating profit to
Pepsi.
Pepsi Net Revenue grew 33% increase 2010.
Weakness
Product is targeted for young generation only.
Long term debt at 2008 has increase about 53% of previous
day.

0.05

0.15

0.04

0.12

0.08

0.24

0.1

0.1

0.08

0.16

0.1

0.2

0.15

0.15

0.09
1

0.09
2.24

6
7

No
1
2
3

4
5

On Beverage product, Pepsi is not in control during bottling

and distributions of product in order to control the final
quality to the consumer.
Overdependence on US Markets ~ Consumer switched to
stone brands and tap water that alternative cheaper.
Image Damage Due to Product Recall
Total

11

COMPETITIVE PROFILE MATRIX (CPM)

As a world number two beverage and food producer and distributor developed in the late 19th
century, PepsiCo is in a dominant market position that has little qouts about new competitors
in the market. Its main concerns remain are its top competitor, Coca-Cola who the main
dominator in the beverage market. There is another external competitor that is Kraft who
controls the local(USA) and international market share of beverages and Cheese &
Foodservices, Convenient Meats, Grocery and Snacks & Cereals. In addition, market
penetration, acquisitions and mergers of current mid-size beverage companies could prove to
be an external threat to Pepsi Co.
In the following section before we could compute the competitive profile matrix for PepsiCo,
we discuss a bit on Coca-Cola and Kraft will be detailed according to their financial
statements, management schemes, marketing campaigns and recent acquisitions.

This company have begun serving a delicious and refreshing sparkling beverage 125 years
ago in Atlanta, Georgia. The first moment of refreshment came a thirst for more that
continues to this day. The company have more than 500 brands and 3,500 beverage products.
It sells 1.7 billion servings per day in over 200 countries.
Coke Cola have good financial year in 2010, its net revenue is US$ 35,119 and its net income
is US$11,809. These far more better that PepsiCo financial income for 2010.
Coke Cola have been growing its business in every operating countries, It trademarks coke
volume have increase 9% and while its sprite volume to have increase 14%. Coke Cola
flagship have grown about 26 % while the lasted country Coke cola have invested is Russia
which achieved a year to year incremental.
It other non-carbonate beverage drinks, Del Valle is now the leading juice drink brand in the
Latin American, while leo commands a leading position in brazil market. While in pacific
Asia its Minute Maid Pulpy is the first billion dollar brand launched from an emerging nation
of China have increase its popularity.
Coca Cola have always support many sport organization in many big sport function such as
FIFA world cup, It famous coca cola cup in mexico. They also have sponsor many humanity
and charity function thru the country it supply its products.

12

Kraft food is currently the leading North American foods and beverage provider. The
company have operation more than 75 countries around the worlds, while it sales have reach
more than 170 countries. The company have 223 manufacturing and processing facility
around the worlds and employed about 127,000 employee worlds wide. The company have
about 11brands that achieve US$ 1 billion dollar of revenue. In 2010, the company have US $
49, 207 of net revenue, and it net income was US $ 4110.
The company have sponsor number of humanity programs, as part of it corporate social
responsibility. The company also have take necessary action in maintain global environment
on it organization such as reduce 174 million pound of packaging, it reduce 17% of green
house gases, cut around 15% of energy it used, reduce water uasage about 32% and many
other element that can affect the environment.
With this we can determine the comparative profile matrix for PepsiCo by comparing with its
two large competitors. That is Kraft and the Coco cola company.

13

COMPETITIVE PROFILE MATRIX (CPM)

PEPSI CO
Critical Success Factors
Plant Location
Strong Brand Image
Market Share
Products range & Capacity
Innovation
Bottling Investment & distribution
Advertising
Control of Outsource Bottling and supply chain
Company profitabity
Company Management & Resoaurce
TOTAL

Weight
0.05
0.15
0.15
0.11
0.15
0.07
0.05
0.15
0.05
0.07
1

Rating
2
2
3
4
3
2
3
3
1
3

Weighted
Score
0.1
0.3
0.45
0.44
0.45
0.14
0.15
0.45
0.05
0.21
2.74

COKE COLA
Rating
4
4
3
2
4
4
3
4
3
2

Weighted
Score
0.2
0.6
0.45
0.22
0.6
0.28
0.15
0.6
0.15
0.14
3.39

KRAFT
Rating
4
3
3
3
3
3
2
3
2
3

Weighted
Score
0.2
0.45
0.45
0.33
0.45
0.21
0.1
0.45
0.1
0.21
2.95

14

Strategies Planning
Pepsi Co has been consistently living up to its mission and objectives, as they offer the most
valuable products and beverages to their clients. The main areas they need to focus on for
improvement is continuing of recycling of containers. Due to the liquid nature of Pepsis
product, it is necessary that a solid and non-porous container be used to store the products.
This fact leads to the use of plastics, aluminium, and glass as materials for the containers that
Pepsi is stored in. These materials work very well for the purpose of their use, however these
materials do not biodegrade easily. Every day, empty soft drink bottles and cans are thrown
away, rather than recycled. , the boards of Pepsi and Coke passed resolutions for future
container recycling targets.
Today PepsiCo competitor have come out with one biodegrade and a prestigious DuPont
award for Packaging innovation for our Companys PlantBottle
polyethylene
terephthalate (PeT) package, the first plastic beverage bottle in the marketplace today made
from up to 30% plant-based material that is fully recyclable. PlantBottle also won the 2010
Design for recycling award from the institute of Scrap recycling industries, inc.
PepsiCo should increase the use of exclusivity agreements with restaurant chains and college
campuses. Coca-Cola has a majority of exclusivity with restaurant chains including
McDonalds and other major fast food chains. The benefits of exclusivity agreements give
Coca-Cola a major advantage in channel distribution. The major reason Taco Bell was
purchased by Pepsi was to create a new channel for Pepsi to be sold in restaurants. In addition
to restaurants, soft drink manufacturers are willing to engage in "cola wars" to win the rights
to supply all the machines in a given school in return for a commission. The funds go to
support financially starved school programs that could range from buying new library books
to beefing up the computer lab. As reasonly coca cola have launch it next-generation
dispensers, which offer 106 individual drink choices while eliminating 30% of water and
have most innovative design that can attract customers.
The dominance of Coca Cola in the soft drink market has always been considered a major
factor for Pepsi management. As long as Coca Cola continues to retain a dominant market
share, Pepsi should continue to aggressively acquire Coca Cola market share. To have this
PepsiCo need to take action on the next 3 year of strategies planning and it implementation.
Even PepsiCo is world renowned supply of products, but like any other business, there needs
improvement, below is certain criteria that PepsiCo can improve:

Need to be more Human sustainability, which pepsi needs to promise to encourage

people to live balanced and healthy lives. Its all about offering the balance of
portfolio for the consumers to have range of enjoyable and wholesome foods and
beverages. Its about providing people with choices, attractive options to manage their
portions, better nutrition education and compelling programs to encourage physical
activity.

15

Environmental sustainability is the next strategic planning that PepsiCo need to

protect the Earths natural resources. PepsiCo need come with its strategic plant
management that investing in a healthier planet by reducing water usage, increasing
recycling levels and minimizing our carbon footprint. PepsiCo need to sustainable
farming and helping communities in order to operate in the areas of water
conservation, efficient agricultural methods and increasing access to safe water. In
doing so, it will be ensuring PepsiCo can continue long into the future and reducing
energy and waste costs, and gaining real credibility with consumers and
policymakers.

Talent sustainability is what PepsiCo need to invest in with their associates. As they
must help employees succeed and develop the skills needed to drive the companys
growth, while also contributing to the local communities where PepsiCo plant situated
around the world. Its about creating an environment where PepsiCo can advance it
marketing and building a diverse workforce that associate and base consumer
satisfaction.

PepsiCo need to capture more of the aging populations market share. As we know
that PepsiCo mostly focused on a younger market hoping to repeat the worldwide
success of Coca-cola didnt in 1980. This where Coco-cola did the brand loyalty with
the generations born after 1980, and this played back to today environment.

PepsiCo need to change their information and layout of their website. This because
after comparing it to competitors we feel that it needs to be simplified and more
innovative.

PepsiCo next imperative is to build and extend their macro snack portfolio. PepsiCo is
the largest player in this category, and they still have tremendous room for growth.
They must have the goal to grow the core salty snack brands that are loved and
respected around the world, while expanding into adjacent categories. Priority also
should continue to grow top products such as Lays, Doritos, Fritos and Cheetos,
while also adding products that are baked, that incorporate whole grains or contain
fruits and vegetables. PepsiCo also will strive to create new flavours in tune with local
tastes, which reflect local culture and traditions. With this they can gain market share,
while continuing to grow the top and bottom line in of their macro snack business.

PepsiCo should have reduce in their health consumes products. This is by reducing
the average amount of sodium, saturated fat, and added sugar per serving in key food
and beverage brands. Also PepsiCo need to display the amount of calories count to all
it product and also key nutrient in every food product, and it easier for consumer to
choose.

16

PepsiCo should improve their beverage business worldwide. As their beverage

business is a large, highly profitable to the company which, account for at least 51
percent of the companys revenues. In this highly competitive category, PepsiCo
goals is to grow the developed market beverage business profitably while continuing
to aggressively invest in fast-growing emerging and developing markets. This done by
doing more promotion in developing markets, entering new market and introducing
beverage that suit the new markets and not empathising with their exiting product but
introducing more. Product such Gatorade and other non calories production should
emphasis more marketing as this product bring more benefit to customers.

PepsiCo should look ways to improve their environment effects that cause by their
products either from the production factories or their end products. This can reduce
global warming effects. Such environmental are the use of water, which consume to
most of PepsiCo products, and should reduce the efficiency of usage water by 20%
per unit of production. PepsiCo should ensure to provide safe water to their business.
Another issue that related to product is on packaging, as we know PepsiCo have no
choice to use materials do not biodegrade easily, but PepsiCo should look ways to
incorporated at least reduce 10% of recycled polythene therepthalate (rpet) in primary
soft drink container which can be done by their competitors. PepsiCo also should try
creating partnership that promotes to increase of recycling of container by 50% in
each year. PepsiCo should also look ways to reduce the packing weight that can cause
creation of 1 billion pound of landfill waste that can safe landfill areas. Another
environmental effect PepsiCo should consider to improve is the usage of electricity
and reduces of green house gas (GHG) from production technologies used. This done
by imposing factory to use LEED technology , phase out old refrigeration systems
with use of hydro fluorocarbon (HFC)-free refrigeration systems and installed more
than 3.5 million intelligent energy management devices that reduce energy
consumption by monitoring the energy use of our refrigeration units. PepsiCo should
spend some investment in research and development (R&D) to advance the use of
climate-friendly cooling technologies.

PepsiCo should build and expand their nutrition business to rapidly grow that is useful
for Good health products. This is another way PepsiCo can emphasis and promotes it
product to older generation which are more held conscious.

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