Preview

Case Study Pepsi

Good Essays
Open Document
Open Document
9665 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case Study Pepsi
11
CASE STUDY PEPSI
GROUPE ASSINGMENT

INTRODUCTION Pepsico, inc.is one of the most successful consumer products companies in the world. Its operates from Australia. Pepsi-cola company, the second largest soft drink business and Tropicana products. The main products of the company comprises of different soft drinks brand includes pepsi,pepsi light ,pepsi max,7up,mountain dew,etc..The company consists of: Frito-Lay Company, the largest manufacturer and distributor of snack chips; Pepsi-Cola Company, the second largest soft drink business and Tropicana Products. In order to promote their pepsi brand, the marketing division of the company has been able to utilize different marketing strategy in order to competitive in the market place. PepsiCo, Inc. is one of the most successful consumer products companies in the world, with 2000 revenues of over $20 billion and 125,000 employees. PepsiCo brands are among the best known and most respected in the world and are available in about 190 countries and territories.iIn 2000, PepsiCo has a reported net sale of $20,348 and a comparable net sale of $20,144 in comparison to its 1999’s net sales of $20,367 and $18,666 respectively. PepsiCo has increased its comparable net sale of 8% in 2000 while it had an increase of 15% in 1999. This reflects the increasing rate is going slower. On the other hand, PepsiCo’s interest expense declines 39% showing that the company is significantly lower average debt level. Back to 1999, the report shows that the company’s interest expense dropped 8%, which indicates that the company is performing well in managing its financial strategies. in adittion,the different approaches of promotional campaigns have been imposed so as to make the products more appealing to the target market and to make these products marketable. They market their products in pizzahurt,fried chicken restorent.in this

You May Also Find These Documents Helpful

  • Better Essays

    Xacc280 Financial Analysis

    • 1828 Words
    • 8 Pages

    The Coca-Cola company has been in business since its inventor began selling it in drug stores in 1886 (The Coca-Cola Company, 2009). Pepsi-Cola was invented a short time later in 1898, but at the time it was called “Brad’s drink.” It was later renamed Pepsi-Cola in 1902 (Butler, 2006). Since those early days when the sodas were invented, Coca-Cola and Pepsi have been in competition with each other for the domination of the world’s soda market. Over the course of more than a century, sales have continued to rise for both companies, and they both consistently earn a profit. Both companies have expanded into new product markets in more recent years. They have chosen to invest their earnings in new ventures like bottled water, snack foods, and iced tea, and they each strive to continue increasing their profits in many ways. In order to maintain this continued growth in the coming years, these companies are both in need of investors who will fund their efforts.…

    • 1828 Words
    • 8 Pages
    Better Essays
  • Best Essays

    The objective of this paper is to compare the major players in the beverage/soft drink industry, Pepsi Co. & Coca Cola Co. This paper will give you sound information on which company to invest in as well as taking a deeper look at both companies over all. My analysis will be made based on the company’s income statements, horizontal, vertical analysis, balances sheets and financial statement ratios. This along with other information should give you a clear picture of which company is the best company to invest in.…

    • 1756 Words
    • 8 Pages
    Best Essays
  • Satisfactory Essays

    Pepsi America Case Study

    • 578 Words
    • 2 Pages

    1. The following listed factors made PepsiAmericas to adopt a more aggressive attitude towards the utilization of transaction data to run the business.…

    • 578 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Fin/370 Pepsico Essay

    • 1555 Words
    • 7 Pages

    Pepsi like many companies needs to grow to continue to make money. This is a broad statement and works the same for every business operating in any market. Pepsi has recognized this need and has come up with a few initiatives to make this happen. Pepsi decided that the best way to make their company stronger was to build up their current brands and make their distribution practices more streamline and economic. Pepsi has dedicated more than $500 million dollars for this purpose and plans to continue to report positive growth because of this initiative. The plan is to increase the marketing in North America and make the already iconic beverages more of a household name. The thinking behind this is that if the products are in the consumers face, they will be more likely to purchase the products Pepsi offers ensuring positive growth for the shareholders. Although Pepsi has decided to back the most known brands, Pepsi will still continue to bring new snacks and beverages to the market because different factors affect the consumption of the already strong branded products. Because upper level management knows that consumer wants and tastes play a large role in how the public buys snacks, Pepsi has committed to make changes to respond to customer wants and changing tastes in different areas.…

    • 1555 Words
    • 7 Pages
    Better Essays
  • Best Essays

    Marketing Plan for Kickstart

    • 3527 Words
    • 15 Pages

    PepsiCo has world renown brand name, a reputation for solid brands and a deep and wide product line in the international and domestic markets. (Simon & Sullivan, 1993). With revenue of more than $66.5 billion, PepsiCo is a world-wide leader in the beverage industry (Bryson York, 2012; Watling, 1992). According to its annual report, the international brand, innovative capabilities, and strong distribution network define PepsiCo as a market leader and are its strengths (www.pepsico.com; Valentin, 2001). One of the strength identified for PepsiCo is its franchise system (www.pepsico.com). A consistent brand and advertising campaign coupled with a consistent marketing strategy for promoting its brands is also a strength. PepsiCo further has a strong global presence as it sponsors major sporting events (www.pepsico.com). It also has a focus on one of the most important customer trends, i.e., customer satisfaction (Finch, 2012; Valentin, 2001). PepsiCo is ahead of some of its main competitors, for instance Coca-Cola, on both the…

    • 3527 Words
    • 15 Pages
    Best Essays
  • Powerful Essays

    Through this paper Pepsi and Coca Cola will be fully evaluated. A stock market analysis will be presented to a client as part of a professional consultation process. A background of both Pepsi and Coca will be accompanied in order to have a full synopsis of each company. The stock trends will be examined for both investment options. The stock trends will be based from the intial public offering day to January 2, 2012. Current events surrounding both companies will be displayed in order to assist the analysis. Lastly, we will analyze the financial statements of both companies. After a complete review of both companies a recommendation will be made as the better investment opportunity for the client.…

    • 3170 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    Acc 400

    • 406 Words
    • 6 Pages

    BYP13-4 The Coca-Cola Company and PepsiCo, Inc. provide refreshments to every corner of the world. Selected data from the 2004 consolidated financial statements for The Coca-Cola Company and for PepsiCo, Inc., are presented here (in millions).Coca-Cola PepsiCoTotal current assets $ 12,094 $ 8,639Total current liabilities 10,971 6,752Net sales 21,962 29,261Cost of goods sold 7,638 13,406Net income 4,847 4,212Average (net) receivables for the year 2,131 2,915Average inventories for the year 1,336 1,477Average total assets 29,335 26,657Average common stockholders’ equity 15,013 12,734Average current liabilities 9,429 6,584Average total liabilities 14,322 27,917Total assets 31,327 27,987Total liabilities 15,392 14,464Income taxes 1,375 1,372Interest expense 196 167Cash provided by operating activities 5,968 5,054Capital expenditures 755 1,387Cash dividends 2,429 1,329Instructions(a) Compute the following liquidity ratios for 2004 for Coca-Cola and for PepsiCo and comment on the relative liquidity of the two competitors.(1) Current ratio. (4) Inventory turnover.(2) Receivables turnover. (5) Days in inventory.(3) Average collection period. (6) Current cash debt coverage.(b) Compute the following solvency ratios for the two companies and comment on the relative solvency of the two competitors.(1) Debt to total assets ratio.(2) Times interest earned.(3) Cash debt coverage ratio.(4) Free cash flow.(c) Compute the following profitability ratios for the two companies and comment on the relative profitability of the two competitors.(1) Profit margin.(2) Asset turnover.(3) Return on assets.(4) Return on common stockholders’ equity.…

    • 406 Words
    • 6 Pages
    Satisfactory Essays
  • Powerful Essays

    Pepsi-Cola began as a drink developed by a pharmacist named Caleb Bradham in his drugstore in 1893. The soft drink was made to be a tonic to aid in digestion and as a refreshing drink that gives an energy boost. This concoction made of pepsin and kola nuts was originally called “Brad’s Drink” named after its inventor, but was later changed to Pepsi-Cola to be more marketable. Originally, this beverage was sold in drug stores and at soda fountains, but was later sold in bottled form to facilitate mass distribution. The Great Depression was a major setback for many American companies and there was no exception for Pepsi. However, the company strived to remain strong and offered its product for five cents in the mid thirties while touting that their product offered twice as much for half the price of Coke’s product. During this time their ad campaigns and marketing tactics worked and their company continued to remain profitable despite a harsh economic climate. Pepsi marketed its products to virtually everyone, young and old, but they often utilized creative marketing tactics to entice new customers to try their products. In the mid 1940’s Pepsi began a marketing campaign to gain more popularity with African American customers whom the company decided where not getting adequate attention with regards to marketing and advertising. PepsiCo today now has interests in many different brands and product lines. Some of their most notable brands familiar to consumers today are Pepsi-Cola, Frito-Lays, SoBe, Tostitos, Sabra, Near East, Pasta Roni, Sun Chips, Cheetos, Quaker, Doritos, Sierra Mist, and Dole to name a few. There is an even more diverse product portfolio that includes products marketed to international consumers to suit their individual tastes. The major suppliers for Pepsi-Cola Company include packaging…

    • 2254 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    Coca-Cola & Pepsi Financial Statement Analysis Team A Frances Sanchez, Herbie Merced, and Javier Urbina ACC 400 Accounting for Decision Making August 22, 2013 Introduction • Comparison of Coca-Cola and Pepsi • Financials from 2004 • Review financial ratios ▫ Liquidity ▫ Solvency ▫ Profitability • Discuss profitability of each company • Which company is the best investment opportunity Coca-Cola & Pepsi Ratios Comparison Liquidity Ratios Current Ratio (Current Assets/Current Liabilities) Coca-Cola Pepsi-Cola 1.10 1.27 ($12,094/$10,971) ($8,639/$6,752)…

    • 357 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    In this paper, you will find financial comparisons on both PepsiCo and the Coca-Cola Corporation. Some increases in certain areas of one company and some decreases in areas of another company. There are vertical analysis, horizontal analysis, and ratios of both the industries. These are still the two leading soft drinks in the industry, and most like will remain the leaders in the upcoming years.…

    • 1990 Words
    • 8 Pages
    Better Essays
  • Satisfactory Essays

    BRIEF HISTORY OF PEPSI

    • 18286 Words
    • 74 Pages

    In this project we have analyzed the different aspects of the worldwide renowned brand name known as Pepsi in this project we have observed the history then we have seen the buying process which the consumers go through when buying the Pepsi. Then we have seen the worth and financial position of Pepsi as a brand in the world and seen its revenues and net incomes currently. We have also gone through the competitors which Pepsi has in the market and what position it holds in the Pakistani market currently.…

    • 18286 Words
    • 74 Pages
    Satisfactory Essays
  • Good Essays

    By the end of 1999, following a multi-year restricting effort, PepsiCo had once again become one of the most successful consumer products companies in the world. In less than four years, it had achieved am 80% increase in net income, on 30% lower sales, and with 75% fewer employees. PepsiCo’s major subsidiaries were the Pepsi-Cola Company, which was the world’s largest manufacturer and distributor of snack chips, and Tropicana Products, the largest marketer of branded juices.…

    • 1759 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    PepsiCo 's success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of their people. Their overriding objective is to increase the value of their shareholders ' investment through integrated operating, investing and financing activities. Their strategy is to concentrate their resources on growing their businesses, both through internal growth and carefully selected acquisitions. Their strategy is continually fine-tuned to address the opportunities and risks of the global marketplace. The corporation 's success reflects their continuing commitment to growth and a focus on those businesses where they can drive their own growth and create opportunities.…

    • 8644 Words
    • 35 Pages
    Powerful Essays
  • Satisfactory Essays

    This report provides an analysis and evaluation of the Marketing Strategy of PepsiCo. Methodsof analysis include Market Segmentation, Market Targeting, Market Positioning, as well as theMarketing Mix of PepsiCo.The research draws attention to the Market Segmentation of PepsiCo. While the soft drink industry has probably the widest and deepest customer base in the world, Pepsi did not use themajority fallacy to market their product. Instead, Pepsi prefers to segment itself as the beveragechoice of the ³New Generation´, Generation Next, or just as the ³Pepsi Generation´. These…

    • 444 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The industry in which PepsiCo produces and distributes its specialty beverages is vast and ever changing. With sales of carbonated soft drinks declining the past five years in a row, PepsiCo needed to look elsewhere to stimulate growth in its core business. PepsiCo thought it had found this growth in the alternative beverage industry. Pepsi expanded its line of beverage to include brands such as Gatorade, Propel, Frappucino, Aquafina, and SoBe. The industry, which experienced massive growth in the mid 2000’s, has seen a more recent decline in sales of 12.3% for it’s specialty beverage segment between 2008 and 2009. This decline in sales is largely attributed to the economic climate of the United States, where consumers are limiting spending on specialty goods that may not be deemed necessity. This new market seemed an attractive choice to stabilize PepsiCo with its premium pricing points and high profit margin, however Pepsi wasn’t the only company with this attractive new market in its sights. Coca-Cola, Red Bull, 5-Hour Energy, and many other companies looked to gobble up percentages of this market as they could.…

    • 977 Words
    • 4 Pages
    Powerful Essays

Related Topics