Report topic: A business plan for Pepsi.

Submitted by:

Md. Sakib Hossain Reg.no: 15202007

Program: Bachelor of business administration

Course name: International business

Course code: IBS 301

Submitted to:
Barnali Nandi

Course instructor, BBA department.

University of Asia Pacific.

Submission Date: 5th September, 2018

 Table of content:

Number Topic name

1 Letter of transmittal

2 Acknowledgement

3 Executive summary

4 overview of the company

5 Mission statement of PepsiCo

6 Vision statement of PepsiCo

7 Marketing mix of PepsiCo

8 Business model of PepsiCo

9 Competitors

10 Swot analysis

11 Global Business divisions

12 conclusion
 1.Letter of transmittal
To
Barnali Nandi
Course instructor, BBA department.
University of Asia Pacific.

Subject: Submission of report.

Dear Madam,
It is great and immense pleasure for us that we have the opportunity to
submit the report on” A marketing plan for Pepsi”. As part of our BBA
course requirement, we have prepared this report on the basis of the
knowledge we gathered from our knowledge and we like to express our
sincere gratitude to you for your continuous support and guidance.

We have concentrated our best efforts to achieve the objectives of the

study and hope that our endeavor will serve the purpose. However, we will
always be ready to provide any further clarification that you may require.

Sincerely yours,

Name : ID:

Md. Sakib Hossain 15202007

 2. Acknowledgement:
We would like to thank the PepsiCo company as we made a report on one
of their product, all those web sites from where we collect information
about Pepsi, our team member and a special thanks to our respective
teacher Barnali Nandi for giving us this opportunity to represent our idea
and for giving us the right direction, motivation and for helping us to
complete our report.

3.Executive Summary:
This report provides an analysis and evaluation of the Marketing
Strategy for Pepsi. Methods of analysis include Market Segmentation,
Market Targeting, and Market Positioning of Pepsi. Into this analysis we
have tried to show how Pepsi segment their market basing on different
variables. Their target market which they serve. We also discuss about
Pepsi’s internal and external environment. Their Position in the market and
how do they differentiate themselves to make a position in their customer
mind, their strategy of positioning in market we tried to give a positioning
statement of Pepsi and ended the whole report with a conclusion and a
recommendation.
4.overview of the company:
PepsiCo, Inc. is one of the world's top consumer product
companies with many of the world's most important and valuable
trademarks. Its Pepsi-Cola Company division is the second largest
soft drink business in the world, with a 21 percent share of the
carbonated soft drink market worldwide and 29 percent in the
United States. Three of its brands--Pepsi-Cola, Mountain Dew,
and Diet Pepsi among the top ten soft drinks in the U.S. market.
The Frito-Lay Company division is by far the world leader in salty
snacks, holding a 40 percent market share and an even more
staggering 56 percent share of the U.S. market. In the United
States, Frito-Lay is nine times the size of its nearest competitor
and sells nine of the top ten snack chip brands in the supermarket
channel, including Lay's, Doritos, Tostitos, Ruffles, Fritos. Frito-Lay
generates more than 60 percent of PepsiCo's net sales and more
than two-thirds of the parent company's operating profits. The
company's third division, Tropicana Products, Inc., is the world
leader in juice sales and holds a dominant 41 percent of the U.S.
chilled orange juice market. On a worldwide basis, PepsiCo's
product portfolio includes 16 brands that generate more than
$500 million in sales each year, ten of which generate more than
$1 billion annually. Overall, PepsiCo garners about 35 percent of
its retail sales outside the United States, with Pepsi-Cola brands
marketed in about 160 countries, Frito-Lay in more than 40, and
Tropicana in approximately 50. As 2001 began, PepsiCo was on
the verge of adding to its food and drink empire the brands of the
Quaker Oats Company, which include Gatorade sports drink,
Quaker oatmeal, and Cap'n Crunch, Life, and other ready-to-eat
cereals.

When Caleb D. Bradham concocted a new cola drink in the 1890s,

his friends' enthusiastic response convinced him that he had
created a commercially viable product. For 20 years, 'Doc'
Bradham prospered from his Pepsi-Cola sales. Eventually, he was
faced with a dilemma; the crucial decision he made turned out to
be the wrong one and he was forced to sell. But his successors
fared no better and it was not until the end of the 1930s that
Pepsi-Cola again became profitable. Seventy years later, PepsiCo,
Inc. was a mammoth multinational supplier of soft drinks, juices,
and snack food. PepsiCo's advance to that level was almost
entirely the result of its management style and the phenomenal
success of its television advertising.

5.Mission statement:
“Our mission is to be the world's 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.”

6.Vision statement:
"PepsiCo's responsibility is to continually improve all aspects of
the world in which we operate - environment, social, economic -
creating a better tomorrow than today."

Our vision is put into action through programs and a focus on

environmental stewardship, activities to benefit society, and a
commitment to build shareholder value by making PepsiCo a truly
sustainable company.

7.Marketing mix:
PepsiCo’s marketing mix has evolved over time, especially
because of the effects of mergers and acquisitions. The marketing
mix or 4Ps (Product, Place, Promotion & Price) is the combination
of strategies and tactics that the firm uses to implement its
marketing plan. In this regard, PepsiCo employs various strategies
and tactics based on its array of products and brands. The
differences among markets also require variations in approaches
used in the marketing mix. However, despite these variations,
PepsiCo’s marketing mix has a number of general characteristics
that define the company’s general corporate approaches to its
marketing plan implementation. PepsiCo remains effective and
globally successful in this aspect

PepsiCo’s Products
PepsiCo's product mix as of 2015 (based on worldwide net
revenue) consists of 53 percent foods, and 47 percent beverages.
On a worldwide basis, the company's current products lines
include several hundred brands that in 2009 were estimated to
have generated approximately $108 billion in cumulative annual
retail sales.

The primary identifier of a food and beverage industry main

brand is annual sales over $1 billion. As of 2015, 22 PepsiCo
brands met that mark, including: Pepsi, Diet Pepsi, Mountain
Dew, Lay's, Gatorade, Tropicana, 7 Up, Doritos, Brisk, Quaker
Foods, Cheetos, Mirinda, Ruffles, Aquafina, Naked, Kevita, Propel,
Sobe, H2oh, Sabra, Starbucks (ready to Drink Beverages), Pepsi
Max, Tostitos, Mist Twst, Fritos, and Walkers.

Place:
PepsiCo uses a global network for distributing its products to
consumers. Venues for distribution and sale are considered in this
element of the marketing mix. PepsiCo’s places for distribution

are as follows:

1.Retailers

2.Online merchandisers

Most PepsiCo products are available at retailers, such as

supermarkets, grocery stores, and convenience stores. However,
customers can access PepsiCo-licensed merchandise like tumblers
and t-shirts through retailers and their websites. Based on this
element of the marketing mix, PepsiCo’s places for distributing its
products are mostly non-online retailers.

Promotion :
PepsiCo promotes its products to attract target customers. This
element of the marketing mix covers the marketing
communications strategies and tactics that the company uses to
reach its customers. The following are the tactics in PepsiCo’s
promotional mix, arranged according to significance:

1.Advertising

2.Sales promotion

3.Direct marketing

4.Public relations

Advertising is PepsiCo’s primary tactic for marketing

communications. For example, the company is popularly known
for using celebrity endorsers to promote its products on TV, radio,
print media, and online media. The firm also advertises through
business signs it sponsors or gives to stores and other
establishments. PepsiCo occasionally applies sales promotions,
such as package deals or discounts. Also, the company’s local
offices sometimes implement direct marketing through
agreements to provide products to organizations at wholesale
prices. Furthermore, PepsiCo uses public relations through
financial assistance and sponsorships, such as in sports events.
This element of the marketing mix indicates that advertisements
are the main determinant of PepsiCo’s ability to communicate
with target customers and promote its products.

Pricing Strategy:
PepsiCo’s prices are considerably varied because the company has
a wide product mix, which means that it has a large number of
product lines and brands. Approaches used to set prices are
analyzed in this element of the marketing mix. PepsiCo’s main
pricing strategies are as follows:

1.Market-oriented pricing strategy

2.Hybrid Everyday Value pricing strategy

Most of PepsiCo’s products are priced based on the market-

oriented pricing strategy. The company’s objective in using this
strategy is to ensure that its prices are competitive, based on
other firms’ prices and prevailing market conditions. On the other
hand, Hybrid Everyday Value is PepsiCo’s pricing strategy for
some of its products, especially soft drinks. The company’s
objective in using this pricing strategy is to close the gap between
regular/everyday prices and discounted holiday prices. In this
way, PepsiCo expects consumers to buy more of its soft drinks
every day and not just during the holidays.

8.Business model of PepsiCo:

Operations:

PepsiCo's pervasive presence is founded on a broad portfolio of

mega brands each of which generates more than $1 billion in
annual sales. Business is supported by nearly 700 manufacturing
facilities worldwide.

Operations are organized into six business units: Frito-Lay North

America (FLNA); Quaker Foods North America (QFNA); North
America Beverages (NAB); Latin America; Europe Sub-Saharan
Africa (ESSA); and Asia, Middle East and North Africa (AMENA).
NAB, around 35% of sales, makes and markets beverage
concentrates, fountain syrups, and finished goods. Brands include
Pepsi, Gatorade, Mountain Dew, Aquafina, Diet Pepsi, Diet
Mountain Dew, Tropicana Pure Premium, Mist Twst, and Mug. It
also makes ready-to-drink tea and coffee products in conjunction
with Unilever and Starbucks. It also has manufacturing licenses
from Dr Pepper Snapple Group for drink brands Dr Pepper, Crush,
and Schweppes; and from Dole Food for Ocean Spray cranberry
juice.

FLNA, about 25% of revenue, lays about a big spread of branded

snack foods. Its brands include Lay's, Doritos, Cheetos, Tostitos,
Fritos, Ruffles, and Santitas, which it sells to independent
distributors and retailers. In a joint venture with Strauss Group, it
makes and sells Sabra dips and spreads.

The QFNA segment accounts for around 5% of sales and consists

of the manufacture and distribution of cereals, rice, pasta, and
other branded products. Products include Quaker-branded
oatmeal, grits, rice cakes, granola, oatmeal squares, as well as
Quaker Chewy granola bars. It also makes and sells Aunt Jemima
mixes and syrups, Life cereal, and Rice-A-Roni side dishes.

The ESSA segment brings in more than 15% of sales and consists
of the manufacture and sale of its soft drink and snack brands in
Europe and Sub-Saharan Africa. Additional activities include the
marketing and distribution of dairy products including Chudo,
Agusha, and Domik v Derevne.

Latin America and AMENA both account for around 10% of sales
and make, market, and distribute PepsiCo's snack foods and
beverages in the region. Region-specific brands include Toddy,
Manzanita Sol, H2oh! (Latin America) and Kurkure, Chipsys, and
Crunchy (AMENA).

Geographic Reach:

The US accounts for around 55% of PepsiCo sales. Important

international markets for the company include Russia, Mexico,
Canada, and the UK. PepsiCo is also active in emerging and
developing markets, particularly Brazil, China, India, Africa, and
the Middle East.

Sales and Marketing:

To promote its products, PepsiCo uses a combination of sales

incentives, discounts, advertising, and other marketing activities.

PepsiCo's customers include wholesale distributors, grocery and

convenience stores, mass merchandisers, membership stores,
authorized independent bottlers, and food service distributors,
including hotels and restaurants. The company's snacks,
beverages, and other products are brought to market through
direct-store-delivery (DSD), customer warehouse, and distributor
networks. Walmart is its largest customer, accounting for 15% of
its overall sales and about 20% of PepsiCo's North American
business.

PepsiCo's top five retail customers account for more than 30% of
the company's net revenue in North America.
Strategy:

Key to PepsiCo's growth strategy is to drive sales for its retail

customers by introducing new products and enhancing existing
products through more focus on global research and
development.

The company has moved aggressively to provide healthier drink

and snacks in response to rising consumer health-consciousness
in recent years. It has introduced two new product concepts:
Everyday Nutrition products, which contain nutrients like grains,
fruits, vegetables, and proteins; and Guilt-Free products, which
covers all Everyday Nutrition products in addition to products
with less than 70 calories from sugar per 12 ounces and with low
sodium and saturated fats.

Recent additions to the lineup include LIFEWTR, a premium

bottled water, LEMON LEMON, a low-sugar sparkling lemonade.
About half of the company's revenue comes from healthier drinks
and snacks, up from less than 40% a decade ago.

The health initiatives were driven by Indra Nooyi, the company's

CEO who was due to step down in 2018. The company's revenue
rose to more than $63 billion from $35 billion in her 12-year
tenure. She was to be succeeded by Ramon Laguarta, a 22-year
PepsiCo veteran.

To improve its profitability over the long term, the company also
continues to focus on improving productivity by lowering
overhead costs, utilizing its global scale, getting rid of duplication,
and implementing cost-saving technologies. Beginning in 2014,
PepsiCo has managed to cut costs by $1 billion in four consecutive
years with an immaterial impact on the top line. This was
achieved by increased automation and restructuring global
manufacturing and distribution. It plans to continue the program
until 2019.

Customer Segments:

PepsiCo produces, markets and sells a broad portfolio of

consumer-focused food and drink products. The Company,
however, is not directly consumer-facing, instead serving a range
of commercial customers. PepsiCo’s customers include:

 Food and Beverage Distributors, including independent

distributors and wholesalers

 Foodservice Businesses, including restaurant chains, cafes

and coffee houses, and eateries;

 Retailers, including grocery stores, drug stores,

convenience stores, discount stores, mass merchandisers,
online retailers, and membership stores; and

 Independent Bottlers, to which the Company sells branded

beverages.

PepsiCo serves a global customer base. While the Company’s

principal market is its native US, it also serves customers across
Europe, Asia Pacific, the Middle East, Latin America, and Africa.

Value Propositions:

PepsiCo provides value to its customers in the following ways:

 Its industry standing and reputation, with the Company

established as one of the largest and most recognisable
names in the consumer goods industry, with a track record
for providing efficient and reliable services;

 The efficiency and sustainability of its production and

distribution infrastructure, with the Company utilising
 state-of-the-art facilities to make and deliver products for
customers in a sustainable way;

 The size and quality of its brand portfolio, with the

Company producing and marketing a broad range of
brands, including some of the world’s most popular food
and beverage products, including Pepsi, Mountain Dew,
Doritos, and Lay’s; and

 Its international sales and marketing reach, with the

Company providing consumer goods to a global customer
base, and operating dedicated geographically focused
units for operations across Latin America, Europe Sub-
Saharan Africa, and Asia, Middle East and North Africa.

Channels:

PepsiCo operates a website at www.pepsico.com - as well as a

number of regional and branded websites – through which it
provides information on its various brands, services, and
operating locations. The Company does not operate an online
sales channel for its core business. It does, however, operate an
online store at www.shop.pepsi.com, through which it sells Pepsi-
branded merchandise.

PepsiCo serves its customers directly through its in-house sales

and marketing teams, which are organised by operating segment
and geographic regions. The Company’s products are brought to
market through direct-store-delivery, customer warehouse, and
distributor networks. Some of PepsiCo’s products are delivered
directly from its our manufacturing plants and warehouses to
customer warehouses, with some beverages being distributed by
the Company’s independent bottlers customers through their
own direct distribution channels to retail stores.

In some jurisdictions PepsiCo collaborates with third-party

vending and foodservice distributors and sales agents. The
Company also markets products through joint ventures, including
Lipton tea products in partnership with Unilever, and co-branded
juice products in partnership with China’s Tingyi.

Customer Relationships:
PepsiCo makes some sales of merchandise on a self-service basis,
with customers able to purchase and organise delivery of certain
Pepsi-branded products without interacting with members of
PepsiCo’s sales personnel.

PepsiCo sales are principally made through its direct sales teams,
which work closely with customers to establish the details of sales
agreements. The Company seeks to establish longstanding
relationships with its customers, providing financial incentives to
assist in the distribution and promotion of its products, including
incentives include volume-based rebates, product placement
fees, promotions, and displays. PepsiCo typically grants
independent bottlers exclusive contracts to sell and manufacture
certain beverage products within a specific geographic area.

Customers can contact PepsiCo – as well as specific PepsiCo

brands – with support queries, over the phone or via online
contact forms. The Company also operates social media accounts
with Facebook, Twitter, Pinterest, Instagram, and LinkedIn,
through which it can interact directly with customers.

Key Activities:

PepsiCo is a food and beverage consumer goods company. The

Company, through its operations, bottlers, contract
manufacturers and other third parties, is engaged in producing,
marketing, distributing and selling a range of beverages, foods
and snacks, across more than 200 countries worldwide. PepsiCo is
organised into six divisions: Frito-Lay North America; Quaker
Foods North America; North America Beverages; Latin America;
Europe Sub-Saharan Africa; and Asia, Middle East and North
Africa.

The Company's brands portfolio includes a number of high-profile

brands, such as Agusha, Amp Energy, Aquafina, Aquafina
Flavorsplash, Aunt Jemima, Cap'n Crunch, Cheetos, Chester's,
Chipsy, Chudo, Cracker Jack, Diet Pepsi, Diet Sierra Mist, and
Domik v Derevne.

Key Partners:
PepsiCo collaborates with a range of partners throughout the
production and distribution of its products, and across its six
operating divisions. These partners include:

 Supplier and Vendor Partners, including suppliers of

materials, ingredients, tools, and services, which support
the Company’s production, marketing, and distribution
operations;

 Channel Partners, including a range of independent sales

agents and foodservice distributors that assist in
extending the Company’s marketing and sales reach in
certain jurisdictions;

 Strategic and Alliance Partners, including companies and

organisations across multiple sectors with which the
Company shares tools and resources and collaborates on
joint projects; and

 Joint Venture Partners, comprising a range of companies

with which the Company jointly markets products through
mutually-owned entities.

As noted above, PepsiCo has joint venture distribution

partnerships with Unilever and Tingyi. The Company has recently
launched a partnership with Senomyx to identify and develop
additional sweet taste ingredients, and has a distribution
partnership with home-carbonation company SodaStream
International.

Key Resources:

PepsiCo’s key resources are its intellectual properties and brands,

its manufacturing and logistics infrastructure, its sales and
marketing channels, its partnerships, and its personnel.

PepsiCo owns numerous trademarks which it considers to be

essential to its worldwide operations, including various brand
names, such as Pepsi, 7UP, Mountain Dew, Quaker, and
Tropicana. The Company also holds a number of patents.
Searches of records published by the US Patent and Trademark
Office identified a number of patent applications filed in PepsiCo’s
name, including applications entitled ‘Display screen portion with
icon’, ‘Multi-flavor valve’ and ‘Beverage dispense valve controlled
by wireless technology’.

Cost Structure:

PepsiCo incurs costs in relation to the development of its

products, manufacture and transport of its products, the
operation of its sales and distribution channels, the
implementation of marketing and advertising campaigns across
its multiple brands, the management of its partnerships, and the
retention of its personnel.

PepsiCo’s largest costs in 2015 were its cost of sales, which

totaled $28.38 billion, and its selling, general and administrative
expenses, which amounted to $24.89 billion. These costs included
the payment of salaries and benefits to the Company’s global
workforce of 263,000 employees. In 2015 PepsiCo also accrued
research and development costs in the amount of $754 million.

Revenue Streams:

PepsiCo generates revenue through the sale of various consumer

food and beverage products. The Company’s product portfolio
includes a range of high-profile brand name products, including
Pepsi, Diet Pepsi, 7UP, Gatorade, Mirinda, Doritos, Lay’s, Cheetos,
and Ruffles.

In 2015 PepsiCo generated $63.06 billion in revenue, down on the

$66.83 billion recorded by the Company in 2014. The Company’s
largest revenue generator was its North America Beverages
segment, which generated revenue totalling $20.62 billion. This
was followed by the Company’s Frito-Lay North America segment,
which generated $14.78 billion, and the Europe Sub-Saharan
Africa segment, which generated $10.51 billion. None of the
Company’s other operating segments accounted for more than
$10 billion in revenue.
9.Main Competitors:
The Coca-Cola Company, Dr Pepper Snapple Group, Inc.,
Mondelez International, Inc., Hansen Natural Corporation,
National Beverage Corp., Kraft Foods Inc., The Kellogg Company,
ConAgra Foods, Inc., Nestlé S.A. and many other companies.

10.Swot analysis:

Strengths in the SWOT Analysis of PepsiCo :

Brand equity: it is one of the most prominent and famous brands
in the world in the food and beverage sector. It is also known as
the brand of youth. It has a high brand recognition and
reputation. It has a brand valuation of $19.4 billion and it is
ranked 29 in the Forbes most valuable brands list.

Strong Leadership: Under the leadership of Indra Nooyi PepsiCo

has been doing really well. It has managed to stay at number two
position in the complete food and beverage sector only behind
Nestle in that field.

Customer Loyalty: PepsiCo has an extremely loyal customer base.

In its beverage category all its soft drinks have an iconic taste and
that’s why their customers do not prefer to shift brands. They
have emerged as a very strong brand when it comes to juices and
bottled water category. Frito-Lay has been one of the top-selling
brands in the world with brands under it such as Doritos, Lay’s,
Funyuns, Uncle Chips, Cheetos, Tostitos and Walkers. They had
managed to grab 6 slots in the top 10 global snack brands with
topping the charts (all 3 spots) as well.

Strong distribution: Pepsi has a global presence in more than 200

countries providing them with a very good distribution network.

Supply Chain: It has one of the best supply chain networks in the
world, making the products available throughout the world. Apart
from this they also have a very efficient reverse logistics
associated with it.

Tie-Ups: They have tie-ups with sports events and music concerts
which keeps them in the lime light and thereby increasing the
brand recall. They have sponsorships to major sports teams
thereby standing with what the brand is known for, youth and
energy.

Clear target audience: Pepsi, unline Coca Cola has always had a
clear target audience – the young crowd. It always targets
youngsters through its ads and generally the youngsters are
shown to be smarter then the old ones. The message is clear –
Pepsi is the in thing.

Weaknesses in the SWOT analysis of Pepsi :

Competition: It has heavy competition from Coca-Cola in their
soft drinks category. They are always neck to neck with each
other. This competition thereby provides a room for not so loyal
customer base to switch brands quickly.

Products perceived as unhealthy: Most of the soft drinks of the

PepsiCo is perceived as unhealthy.

Product Dependence: They are only present in the food and

beverage industry which may be harmful in the longer run. They
need to diversify their business to other product segments to
become a global leader.
Failed Products: Many failed products such as ‘Crystal Pepsi’
which hurts the brand image of the PepsiCo and thereby giving
room to the competitors to grow.

Brand Ambassadors: Wrong remarks or ill performance by the

famous personalities/celebrities, in turn, might damage the brand
image of PepsiCo as they are the face of the organisation. Over
dependence on celebrities for endorsements is a huge risk.

Value addition: Pepsi is known to have advertisements which are

targeted towards youngsters. However, it is not known to display
Value advertising which is a characteristic of Coca cola. Coca cola
has time and again focused on the positive values of life,
something which Pepsi can learn from them.

Opportunities in the SWOT analysis of Pepsi :

Healthy Options: It should work more on improving the health
implications of their products and make the customer aware of
the same. Diet Pepsi is a positive move towards that direction.

Diversification: Business diversification into different market

segments is a huge opportunity. They have the talent, resources
and financial backing to do the same. This can also be done by
acquisitions.

R&D: Recently PepsiCo came out with healthier options in a soft

drink. To make 7Up by using the substitute of sugar called Stevia.
This can prove to be a game changer. More such research needs
to be done. Focus more on the diet drinks category. They have
recently released a variant of their cola sweetened with Stevia
and sugar called Pepsi Next.

Flavors: A brand which has risen strongly in the recent years is

Paperboat. Paperboat is known for its various flavors such as
watermelon, raw mango etc. Bringing in such flavors even in
carbonated beverage form can help Pepsi attract a larger market.

Threats in the SWOT analysis of PepsiCo :

Competitors: PepsiCo’s main competitors are Coca-Cola, Kraft
foods, Nestle, Dr Peppers Snapple Group and Mondelez.
Health Factor: The unhealthy factor associated with its products
can take a toll on the health conscious customers and might lose
them. This can be clearly seen by the fall of soft drinks sale.

Economic Slowdown: With the recent reforms in the country

PepsiCo might see a drop in its sales due to a cash crunch in the
economy. Other factors such as recession and inflation may also
impact sales of the company.

Government Norms: Different norms of different countries might

prove difficult to handle and compliance with it as well.

11. Global Business divisions:

The structure of PepsiCo's global operations has shifted multiple
times in its history as a result of international expansion, and as of
2016 it is separated into six main divisions: North America
Beverages, Frito-Lay North America, Quaker Foods North
America, Latin America, Europe and Sub-Saharan African, and
Asia, Middle East and North Africa. As of 2015, 73 percent of the
company's net revenues came from North and South America; 17
percent from Europe and Sub-Saharan Africa; and 10 percent
from Asia, the Middle East, and Africa. PepsiCo and its combined
subsidiaries employed approximately 263,000 people worldwide
as of December 2015.

PepsiCo Global Code of Conduct ( "Code") has been revised

effective October 1, 2012 to address changing laws that impact
our business. It is designed to provide our employees with specific
guidance.

Global Code of Conduct: Doing Business the

Right Way
At PepsiCo, they believes acting ethically and responsibly is not
only the right thing to do, but also the right thing to do for their
business.
All PepsiCo employees are expected to embrace the principles of
Code and:

show respect in the workplace;

act with integrity in the marketplace;

ensure ethics in our business activities; and

perform work responsibly for our shareholders.

Our Code remains our roadmap and compass for doing business
the right way.

12.Conclusion:
21st century is marked by intense competition and in this era you
cannot do without continuously experimenting and innovating.
Pepsi is continuously working to make its value proposition more
attractive. In this regard, in the one hand, it has worked to make
its product choices ore suitable for the demands of the new
generation which is more health conscious. Simultaneously, it has
improved the packaging and portion sizes of its products like
making smaller 250 ml plastic bottle sizes of various drinks
available to the customers that suit both their pockets and
choices. Its growth strategy is based on attractive pricing,
attractive packaging and an attractive product strategy that
includes healthy and nutritious products. The brand is
also innovating its supply chain to reduce production costs and
working to keep its environmental impact minimized. The results
from investment in Digital innovation were obvious in 2017 when
it delivered organic revenue growth of 2.3%. The results of 2017
built on the investment the brand had made in all these areas
during the previous five years. It has set ambitious plans for the
future which it has named Agenda 2025 . However, Pepsi and
Coca Cola are engaged in a very tight battle and both are quite
aggressive about their marketing and business growth strategies.