Company Business Introduction
PepsiCo’s mission is to be the world’s premier consumer products company focused on convenient foods and beverages. Also, they have been seeking to produce financial rewards to investors as they provide opportunities for growth and enrichment to their employees, their business partners and the communities in which they operate. The task of PepsiCo is that they strive for honesty, fairness and integrity in everything they do. Operations
There are three business units in the organization. The first one is PepsiCo Americas Foods, which includes Frito-Lay North America, Quaker Foods North America and all of Latin American food and snack businesses, including Sabritas and Gamesa businesses in Mexico. The second one is PepsiCo Americas Beverages, which includes PepsiCo Beverages North America and all of Latin American beverage businesses. The last one is PepsiCo International, which includes all PepsiCo businesses in Europe and all PepsiCo businesses in Asia, Middle East and Africa. So three business units are comprised of six reportable segments, as follows: Customers
The customers of PepsiCo include authorized bottlers and independent distributor, including foodservice distributors and retailers. The normally grant their bottlers exclusive contracts to sell and manufacture certain beverage products bearing our trademarks within a specific geographic area. These arrangements provide the right to charge bottlers for concentrate, finished goods and specify the manufacturing process required for product quality. Distribution Network
Their products are brought to market through DSD (direct-store-delivery), customer warehouse and foodservice and vending distribution networks. The distribution system used depends on customer needs, product characteristics and local trade practices. Their bottlers and distributors operate DSD systems that deliver snacks and beverages directly to retail stores where the products are merchandised by their employees or bottlers. DSD enables to merchandise with maximum visibility and appeal. DSD is especially well-suited to products that are restocked often and respond to in-store promotion and merchandising. Some of products are delivered from manufacturing plants and warehouses to customer warehouses and retail stores. These less costly systems generally work best for products that are less fragile and perishable. Foodservice and vending sales force distributes snacks, foods and beverages to third-party foodservice and vending distributors and operators. This distribution system supplies their products to restaurants, businesses, schools, stadiums and similar locations. Competition
PepsiCo compete against global, regional, local and private label manufacturers on the basis of price, quality, product variety and distribution. In U.S. their chief beverage competitor, Coca-Cola Company, has a larger share of CSD (carbonate soft drink) consumption. In addition, the Coca-Cola Company has a significant CSD share advantage in many markets outside the United States. Further, their snack brands hold significant leadership positions in the snack industry worldwide. These brands face local, regional and private label competitors, as well as national and global snack competitors, and compete on the basis of price, quality, product variety and distribution. Success in this competitive environment is dependent on effective promotion of existing products,
the introduction of new products and the effectiveness of advertising campaigns, marketing programs and product packaging.
