Pestle Analysis
A PESTEL ANALYSIS BY
Judit Baksa
Gergely Csaba
Brian Fellers
Iulian Ion
Tamas Orbán
company background
• Pepsi-Cola Company was founded in 1898
• Today, PepsiCo is a world leader in convenient
•
•
•
•
snacks, foods and beverages
Revenues of more than $43 billion
Over 198,000 employees
Merged with PepsiAmericas and Pepsi Bottling
Group in 2009
Major brands among others:
•
Pepsi, Tropicana, Mountain Dew, Dole, Lipton, Starbucks, 7UP,
Lay's, Doritos, Gatorade, etc.
political factors
• Competitive product and pricing pressures
• Lack of unified policy on regulation of marketing
•
to children varies considerably across Europe, only few countries have specific rules covering food marketing
Pressure from civil organizations on legislation, media and producers - especially if targeted to children: •
•
•
to decrease or ban sales in schools decrease advertisement or use product placement to link product to cartoon characters
economic factors
• World in recession
•
•
•
•
Hectic USD - EUR (and other foreign currency) rates
Inflation
Fluctuating raw material prices
People tend not to spend so much money
• Taxation
•
•
High VAT in EU
‘Environmental tax’ on packaging
• Shopping center mania in CEE
• Higher demand for soft drinks during summer
• M&A
social factors
• Increase in the use of non-TV marketing
•
•
•
•
•
•
•
Schools are becoming marketing channels for food advertising
Aging population
On the go lifestyle
Tendency to eat / drink more healthy
Conscious about green packaging – recycling
Slow food movements (Western Europe)
Preference for “local” products (Eastern Europe)
•
relevance of global beverages and snacks
technological factors
• Operations
•
•
Implementation of SAP Software
Wind-powered manufacturing in India
• Product
•
Healthier products – pushed by CEO Nooyi in order to conform to her ‘Performance with Purpose’ idea – Pepsi has
Judit Baksa
Gergely Csaba
Brian Fellers
Iulian Ion
Tamas Orbán
company background
• Pepsi-Cola Company was founded in 1898
• Today, PepsiCo is a world leader in convenient
•
•
•
•
snacks, foods and beverages
Revenues of more than $43 billion
Over 198,000 employees
Merged with PepsiAmericas and Pepsi Bottling
Group in 2009
Major brands among others:
•
Pepsi, Tropicana, Mountain Dew, Dole, Lipton, Starbucks, 7UP,
Lay's, Doritos, Gatorade, etc.
political factors
• Competitive product and pricing pressures
• Lack of unified policy on regulation of marketing
•
to children varies considerably across Europe, only few countries have specific rules covering food marketing
Pressure from civil organizations on legislation, media and producers - especially if targeted to children: •
•
•
to decrease or ban sales in schools decrease advertisement or use product placement to link product to cartoon characters
economic factors
• World in recession
•
•
•
•
Hectic USD - EUR (and other foreign currency) rates
Inflation
Fluctuating raw material prices
People tend not to spend so much money
• Taxation
•
•
High VAT in EU
‘Environmental tax’ on packaging
• Shopping center mania in CEE
• Higher demand for soft drinks during summer
• M&A
social factors
• Increase in the use of non-TV marketing
•
•
•
•
•
•
•
Schools are becoming marketing channels for food advertising
Aging population
On the go lifestyle
Tendency to eat / drink more healthy
Conscious about green packaging – recycling
Slow food movements (Western Europe)
Preference for “local” products (Eastern Europe)
•
relevance of global beverages and snacks
technological factors
• Operations
•
•
Implementation of SAP Software
Wind-powered manufacturing in India
• Product
•
Healthier products – pushed by CEO Nooyi in order to conform to her ‘Performance with Purpose’ idea – Pepsi has