this report‚ we review PEP’s history‚ global footprint‚ key strategies and business drivers then evaluate its two core divisions’ competitive positions separately using Porter’s five forces analysis (Porter 1997). Given the split nature of PEP’s core businesses‚ we believe it is more appropriate to contrast the beverage division with The Coca-Cola Company (KO) and the food division with the likes of Kraft (KFT)‚ Heinz (HNZ) and General Mills (GIS). History‚ global footprint and breakdowns PEP evolved
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single-serving refrigerated beverages consumed on the premises. Small distributors were‚ they aggregated into a mighty marketing force. Quaker CEO William D. Smithburg had bought Stokely-Van Camp in 1983‚ mainly for its Gatorade‚ then a $90 million sports drink. Even though he drew criticism‚ Smithburg turned Gatorade into a billion dollar brand. Quaker Oats bought Snapple in 1993 for an extravagant $1.7 billion dollars even though industry leaders thought it was only worth $700 million. Smithburg’s
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vegetables‚ nuts‚ whole grains and lowfat dairy into its product line ● develop new artificial salts and low or nocalorie sweeteners ● expand and triple the sales of its healthier product lines‚ including Naked juice ‚ Tazo tea‚ Tropicana and Quaker. Recently‚ PepsiCo Inc ‚ the maker of Pepsi and FritoLay snacks…‚ has raised its annual dividend by 4 percent to $2.15. This also was 40th consecutive annual dividend increase of the company. Besides‚ the company has expected to return more than $6 billion to shareholders since
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They saw the relationship between snacks food‚ soft drinks and fast food. They acquired Pizza Hutt‚ KFC and Taco Bell. PepsiCo also acquire Quaker‚ and other drinking products. Because they were becoming such a fast growing organization‚ they restructure the company into four different divisions; Frito Lay North America‚ PepsiCo Beverages North America‚ Quaker Oats North America‚ and PepsiCo International. They also enter international market by acquiring or via partnering with already established making
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Frito-Lay In 1997‚ publicly traded company to focus PepsiCo on food and beverages. The world’s largest snack and beverage company in 2006 In 2006‚ PepsiCo has approximately $35billion net revenue The company is broken into four business divisions: ◦ Frito-lay North America Frito-Lay North America manufactures‚ markets‚ sells and distributes salty and sweet snacks. Products manufactured and sold in North America include Lay’s and Ruffles brand potato chips‚ Doritos and Tostitos brand tortilla
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Strength Pepsi has a broader product line and outstanding reputation. Merger of Quaker Oats produced synergy across the board. Record revenues and increasing market share. Lack of capital constraints (availability of large free cash flow). o Great brands‚ strong distribution‚ innovative capabilities o Number one maker of snacks‚ such as corn chips and potato chips PepsiCo sells three products through the same distribution channel. For example‚ combining the production capabilities
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Marketing Plan Jessica Gahtan‚ Nick Hung‚ Ricky Wu‚ Harris Khan Executive Summary Nu-oats‚ a snack bar‚ is a product line extension of Nutella chocolate hazelnut spread. Leveraging the worldwide reputation of the existing brand as well as the expertise of the parent company (Fererro). The bar will be launched in the Canadian market and its marketing communications will be targeting 8-11 year old active children. Nu-oats is appealing because of its great taste‚ energy-boosting effect‚ and lack of artificial
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Frito Lay In 1930‚ two men in different parts of the United States began companies that would eventually come to control the international snack food market. One-named Doolin purchases were made from corn dough used for centuries by Mexicans to bake bread. Fascinated with the product‚ Doolin sold his ice cream business and purchased the corn chip producer’s business for one hundred dollars. The brand‚ Frito‚ was created in the kitchen of his mother‚ along with the early production of the corn chips
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PepsiCo Inc.‚ profitability ratios | | | Dec 29‚ 2012 | Dec 31‚ 2011 | Dec 25‚ 2010 | Dec 26‚ 2009 | Dec 27‚ 2008 | Return on Sales | | Gross profit margin | 52.22% | 52.49% | 54.05% | 53.51% | 52.95% | Operating profit margin | 13.91% | 14.48% | 14.41% | 18.61% | 16.09% | Net profit margin | 9.43% | 9.69% | 10.93% | 13.75% | 11.89% | Return on Investment | | | | | | Return on equity (ROE) | 27.71% | 31.29% | 29.86% | 35.38% | 42.47% | Return on assets (ROA) | 8.28%
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develop a coherent marketing mix for their brand new breakfast cereal product aimed at children under the age of 16 in the UK to compete with cereal products from Kellogg’s and Quaker. Product - organic granola bars Competitors Quaker Oats Chewy Granola Bars and Nature Valley Crunchy Quaker Oats Chewy Granola Bars Quaker Oats has presently a selection of granola bars that have 8g of whole grains that contain no high fructose corn syrup. The granola bars is available in boxes of 8 with 18 bars. The
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