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PepsiCo SWOT Analysis 2017

PepsiCo is a leading global food and beverage company with a comprehensive portfolio of over 100 brands. It has a wide geographic reach, serving customers in more than 200 countries worldwide. One of PepsiCo's main strengths is its diverse portfolio of popular brands, including Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. Twenty-two of PepsiCo's brands each generate over $1 billion in revenue annually. PepsiCo's brand recognition and reputation are also strengths, as it owns some of the most well-known brands globally, such as Pepsi, Lay's, and Doritos.

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693 views5 pages

PepsiCo SWOT Analysis 2017

PepsiCo is a leading global food and beverage company with a comprehensive portfolio of over 100 brands. It has a wide geographic reach, serving customers in more than 200 countries worldwide. One of PepsiCo's main strengths is its diverse portfolio of popular brands, including Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. Twenty-two of PepsiCo's brands each generate over $1 billion in revenue annually. PepsiCo's brand recognition and reputation are also strengths, as it owns some of the most well-known brands globally, such as Pepsi, Lay's, and Doritos.

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rajneeshpanwar007_29
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PepsiCo SWOT analysis 2017

Company Background

Key Facts

Name

PepsiCo Inc.

Logo

Industries
served

Beverage (Pepsi, Mountain Dew, Gatorade, Sierra Mist)


Food (Quaker Oats, WBD, Rold Gold)
Snack (Lays, Doritos, Cheetos)

Geographic
areas served

Worldwide (more than 200 countries)

Headquarters

Purchase, New York, U.S.

Current CEO

Indra Nooyi

Revenue

US$63.056 billion (2015) 5.4% decrease over US$66.683 billion (2014)

Profit

US$5.452 billion (2015) 16.3% decrease over US$6.516 billion (2014)

Employees

263,000 (2016)

Main
Competitors

The Coca-Cola Company, DPSG, Mondelz International, Monster Beverage


Corporation, Hansen Natural Corporation, National Beverage Corp., Kraft
Foods Group, The Kellogg Company, ConAgra Foods., Nestl S.A., SnydersLance and other beverage, food and snack companies.

PepsiCo business overview from the companys financial report:


We are a leading global food and beverage company with a complementary portfolio of
enjoyable brands, including Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. Through
our operations, authorized bottlers, contract manufacturers and other third parties, we make,
market, distribute and sell a wide variety of convenient and enjoyable beverages, foods and
snacks, serving customers and consumers in more than 200 countries and territories.
Performance with Purpose is our goal to deliver sustained value by providing a wide range of
beverages, foods and snacks, from treats to healthy eats; finding innovative ways to minimize
our impact on the environment and lower our costs through energy and water conservation as
well as reduce our use of packaging material; providing a safe and inclusive workplace for
our employees globally; and respecting, supporting and investing in the local communities in
which we operate.
PepsiCo was again recognized for its leadership in this area in 2014 by earning a place on the
prestigious Dow Jones World Index for the eighth consecutive year and on the North America
Index for the ninth consecutive year.[1]

PepsiCo SWOT Factors


Strengths
1. Comprehensive product portfolio with more than 100 brands serving nearly every
niche in the beverage, food and snack industries.
Commencing operations in 1965, PepsiCo has become the second largest food and beverage
company in the world today. The company earned US$63.056 billion in 2015, second only to
Nestl S.A.. PepsiCo was able to achieve this via strengthening its product portfolio and
offering as many different beverages and foods as possible.
The company sells around 100 different brands, of which 22 have each generated more than
US$1 billion dollars in 2015.[1] In addition, more than 10 brands have generated between
US$500 million and US$1 billion in revenue.
Figure 1. Brand portfolio by worlds largest food and beverage companies

Source: The respective companies official websites and financial reports [1][2][3][4][5]
Figure 2. PepsiCos top earning brands (in US$ billions)

Source: PepsiCo financial report 2011[6]


PepsiCos brand portfolio is highly diversified and only The Coca-Cola Company has more
brands in the beverage, food and snack industries. No competitor has as many high earning
brands as PepsiCo. They each rely on a few main products to earn the majority of their
revenue. This makes them very vulnerable to any changes in their core products markets.
PepsiCo is better equipped to satisfy the needs of its customers with its wide variety of
successful products. The company offers nearly every type beverage or snack and its brands
can often be substituted for each other. For example, Lays can be replaced with Doritos,
Cheetos, Ruffles, Tostitos or Fritos, so if one product doesnt satisfy a consumers needs,
PepsiCo can offer many more choices. Therefore, changes in customer tastes do not affect the
company as severely as they would other companies.
2. Brand recognition and reputation.
PepsiCo owns and markets some of the most recognizable global brands, including Pepsi,
Tropicana, Gatorade, Mountain Dew, Aquafina, Lays, Doritos, Cheetos and many other
popular brands. According to Interbrand[7] and Forbes[8], the Pepsi brand is respectively the
24th and 29th most valuable brand in the world, worth US$19 billion in both rankings lists.

Forbes also identified Frito-Lay as the 38th most valuable brand in the world, worth US$13.1
billion.
Except for Coca-Cola and Sprite, no other non-alcoholic beverage brand besides Pepsi has
been recognized as being one of the top 100 most valuable brands in the world.
Euromonitor measured the most popular U.S. snack brands in 2013 and 6 of the 10 most
popular brands were owned by PepsiCo.[9]
Figure 3. Top 10 Global Snack Brands by Share, based On Retail Value in 2013
Ranking

Brand

% Share

Owner

1.

Lay's

owned by PepsiCo

2.

Doritos

3.6

owned by PepsiCo

3.

Cheetos

2.7

owned by PepsiCo

4.

Pringles

2.3

5.

Ruffles

1.9

owned by PepsiCo

6.

Tostitos

1.6

owned by PepsiCo

7.

Want Want

1.4

8.

Walkers

1.3

9.

Planters

1.2

10.

Jack Links

owned by PepsiCo

Source: Bakery and Snacks [9]


The company sells its products in more than 200 countries, so consumers are aware of
PepsiCos brands all over the world. Owning and selling popular brands also helps PepsiCo
to cross-sell its other brands or introduce new products to the market much more easily.

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