1

SR.NO. STAGE TOPIC PAGE NO.

1. I INTRODUCTION 3

2. I ABOUT PEPSI 6

3. I MISSION & VISION 7

4. I ORGANISATIONAL VALUES 8

5. I THE MANAGEMENT PROCESS 9

6. II PRODUCT RANGE 26

7. II GROWTH 28

8. III SWOT ANALYSIS 29

9. III GLOBAL APPEAL 30

10. III EMPLOYEE ATTRACTION / 31

RETENTION
11. III SALARY & COMPENSATION 32

12. III PEPSI Co & PESTICIDES 34

13. III SCOPE FOR IIPM STUDENTS 37

14. III ARTICLES 39

2
Profile of the Company

Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W.
Lay, Chairman and Chief Executive Officer of Frito-Lay found PepsiCo, Inc., through the
merger of the two companies.

CEO INDRA K. NOOYI

Mumbai Head Office:

Registered Office: Off Sion Road, Chembur, Mumbai-400 088.

Tel-2556 4001.

3
 INTRODUCTION
It all began in 1886, when a tree legged brass kettle in Hohn Styth pemberton’s backyard in

Atlanta was brewing the first P of marketing leged. Unaware the pharmacist has given birth

to a caromel colored syrup, which is now the chief ingredient of the world’s favorite drink.

The syrup combined with carbonated the soft drink market. It is estimated that this drink is

served more than one thousand million times in a day.

Pemberton & Robinson laid the first foundation of this beverage when an average nine drinks

per day to begin with, upping volumes as sales grew.

In 1894, this beverage got into bottle, courtesy a candy merchant from Mississippi. By the

1950’s Colas was a daily consumption item, stored in house hold freezes. Soon were born

other non- cola variants of this product like orange & Lemon.

Now, the soft drink industry has been dominated by three major player – (1) The New York

based Pepsi co. Inc.(2) The Atlanta based coca cola co. (3) The united Kingdom based

Cadbury Schweppes.

Though out the glove these major players have been battling it. Out for a bigger chunk of the

ever-growing cold drink market. Now this battle has begun in India too. India is now the part

of cold drink war. Gone are days of Ramesh Chauhan,

India’s one time cola king and his bouts of pistol shooting. Expect now to hear the boon of

cannons when the Coca Cola & Pepsi co. battle it out for, as the Jordon goes a bigger share of

throat. By buying over local competition, the two American Cola giants have cleared up the

arena and are packing all their power behind building the Indian franchisee of their globe

girdling brands. The huge amount invested in fracture has never been seen before. Both

players seen an enormous potential in his country where swigging a carbonated beverage is

still considered a treat, virtually a luxury.

4
In colas, Pepsi is already market leader and in certain cities like Delhi, Pepsi outlets are on

one side & all the other colas put together on the other. While coke executive scruff at Pepsi’s

claims as well as targets, industry observers are of the view that Pepsi has definitely stolen a

march over its competitor coke.

Apart from numbers, Pepsi has made qualitative gains. The foremost is its image. This image

turnaround is no small achievements, considering that since it was established in 1989, taking

the hardship route prior to liberalization and weighed down by export commitments.

Now, at present as there are three major players coke, Pepsi and Cadbury and there is stiff

competition between first two, both Pepsi and coke have started, sponsoring local events and

staging frequent consumer promotion campaigns. As the mega event of this century has

started, and the marketers are using this event – world cup football, cricket events and many

more other events.

The success of soft drink industry depends upon 4 major factors viz.

 Availability

 Visibility

 Cooling

 Range

AVAILABILITY

Availability means the presence of a particular brand at any outlet. If a product is now

available at any outlet and the competitor brand is available, the consumer will go for that.

VISIBILITY

Visibility is the presence felt, if any outlet has a particular brand of soft drink say- Pepsi

cola and this brand is not displayed in the outlet, then its availability is of no use. The soft

5
 drink must be shown off properly and attractively so as to catch the attention of the

consumer immediately.

COOLING

As the soft drinks are consumed chilled so cooling them plays a vital role in boosting up the

sales. The brand, which is available chilled, gets more sales then the one which is not, even

if it is more preferred one.

RANGE

This is the last but not the least factor, which affects the sale of the products of a particular

company.

Range availability means the availability of all SKU (Stock Keeping Units).

About PEPSI

PepsiCo is the 18th largest American Company with its worldwide operations in 190

countries. The company is possibly the largest employer.

PepsiCo has set up a fully integrated operation in India- manufacturing, research and

development, marketing, distribution, covering fruit/vegetable processing, exports, snack

foods, beverages and restaurants, including franchising of beverage territories for beverage

business and restaurants it has set up a holding company to further accelerate growth in the

future through new initiatives and

6
joint ventures. PepsiCo started its operations in India in 1989 with the formation of Pepsi

Foods Limited.

Starting from a Zero base, Pepsi, today, enjoys a leadership in Cola category. The company’s

beverage brands are Pepsi, 7Up, Mirinda Lemon, Mirinda Orange, Slice, Tropicana Product,

Aquafina, Diet pepsi, pepsi can. Pepsi services all retailers at least thrice a week and in

summer, very often, twice a day.

MISSION STATEMENT:

"To be the world's premier consumer products company focused on convenience foods and

beverages. We seek to produce healthy financial rewards to investors as we provide

opportunities for growth and enrichment to our employees, our business partners and the

communities in which we operate. And in everything we do, we strive for honesty, fairness

and integrity."

VISION:

"PepsiCo's responsibility is to continually improve all aspects of the world in which we

operate – environment, social, economic – creating a better tomorrow than today."

Our vision is put into action through programs and a focus on environmental stewardship,

activities to benefit society, and a commitment to build shareholder value by making PepsiCo

a truly sustainable company

7
THE ORGANISATIONAL VALUE OF PEPSI:

Management Process in PepsiCo

8
Sales Team
Customer Demand Form
(C.D.F)
Product Availability Management
(P.A.M)

Manufacturing Packaging &

Dispatching

Quality Control

According to the above chart, a research is made by the Sales Team regarding the market
situation i.e. what is the demand of the product, consumer likes and dislikes and so on. After
this the information is given to the Product Availability Management. Again this
information is send to Manufacturing Team through customer demand form. The
manufacturing team holds meeting daily at 10 am every day and decides.

1) What to produce.
2) How to produce.
3) How much to produce.

After producing the products the samples of these products are send to Quality Control
Department for inspection and examination of these samples. After getting positive signals
from the Quality Control Department, the manufacturing team does the packing &
dispatching process.

9
Cleaning Process in PepsiCo:
The cleaning process of the bottles involves two methods i.e.

1) Pre rinse method.

2) Pre form method.

Cleaning Process

Pre-rinse Pre-form

Pre soak Blown (85d.c)

(1% 50-55d.c)

Rinse (Chlorine 1.2ppm water)

Main soaks (S.U.)
(3% 75-80d.c)

Hydro
(1.2% 50d.c)

Pre final rinse jet Final rinse jet

10
Explanation:

The cleaning process of the bottles in PepsiCo involves two methods which are Pre-rinse
and Pre-form method. Pre-rinse method is used for glass bottles whereas Pre-form method
is used for plastic bottles. There are several steps involved in Pre-rinse method as compared
to Pre-form method.

Taking Pre-rinse method into consideration, it involves the following steps:

 In the pre- rinsing method the empty bottles are collected from the shop. The bottles
that are collected come in a very bad condition. So after collecting, these bottles are
minutely examined and then the crack glass bottles are thrown out.

 After examination, the uncracked glasses are pre soak at 50-55 degree celcious (1%).

 Then these glass bottles are cleaned with S.U. soap, which is manufactured by H.L.L
Company. This step called as Main soak. In this step the bottles are cleaned for 7
minutes at 75-80 degree celcious (3%).

 Then these bottles are cleaned with water at 50 degree celcious.

 Then the bottles undergo pre final and final rinse jet stage. In this way the pre-rinse
method gets completed and the glass bottles are ready for filling process.

11
Explanation of Pre-form method:

The second method of cleaning the bottles is the Pre-form method. This is a short process of
cleaning the bottles as compared to Pre-rinse method and this method is applicable to plastic
bottles only.

The pre-form method involves the following method:

 The small tubes as shown in the diagram are blown at 85 degree celcious. As a result
these tubes are converted into big bottles. Then these bottles undergo through a
heating process where the bottles are given same size and shape.

 In the second step the bottles are rinse with chlorine water (1.2 ppm).

 In the last step the plastic bottles undergo final rinse jet stage and thereby the process
gets completed.

12
Quality process in Pepsi-Cola Company

At Pepsi-Cola, quality, taste and consumer are given highest priorities. Great care is taken by
the company to ensure that the brands of Pepsi-Cola deliver the best taste and satisfaction to
the consumer. Continuous efforts are been made at each and every stage in order to enhance
the quality of the products.

Ingredients for soft drinks are Kola nuts, vanilla beans, flavor oils, citrus, water, sugar and
co2. Among these ingredients water, sugar and co2 and very important ingredients. So best
technology and care is been taken to improve the quality of the water, sugar and co2. There
are procedures and steps followed by the company in order to purify the water, sugar and co2.
There are certain standard procedures given by the company that in U.S.A which has to be
followed by all the plants in order to enhance the quality of the products.

In case of Mangola drink, when the drink filled in the glass bottles then it is dipped in hot
water. The temperature of the water is 90 degree celcious. As Mangola does not contain
carbon this process is followed in order to kill the microbes. Where as in case of other soft
drinks, carbon is present and therefore the above process is not followed. The procedures that
is required for the purification of water, sugar and carbon has been explained in the
flowchart.

13
Water storage and purify tank:

The diagram given below shows the water standardization process.

14
Flowchart for Water standardization:

Water

Chlorine (6.8ppm)

Sand Filter (S.F)

Activated Carbon Filter (A.C.F)

To remove

Chlorine

Polisher (candle filter)

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 5m

1m

Ultraviolet rays

Bevg. H2O

Explanation:

Initially the water is collected from BMC and it is stored in a tank. The sample of this water
is send to the U S lab and the instructions to treat the water are given by them. According to
their instruction they follow the following process:

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  The water is collected from the B.M.C and it is stored in the tank. After storing in the
tank chlorine is added which a cleaning agent at 6.8 ppm.

 After adding chlorine the water passes through Sand Filter.

 Then this water undergoes through Activated Carbon Filter. This done in order to
remove chlorine from the water.

 After passing through Activated Carbon Filter, it undergoes through polisher. This
polisher is called as Candle Filter.

 Then the water passes through 5-micron and 1-micron. This is done in order to
remove fine particles of chlorine.

 Finally, water passes through Ultraviolet rays and at the end we get pure water.

In the above it has been seen that for purifying the water it undergoes through various types
of filters. So these filters play an important role in the purifying process. So great care is
taken by the company for the maintenance of the filters. The filters are cleaned or replaced as
and when required.

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Sugar standardization tank:

The diagram given below shows the sugar standardization process.

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Flowchart for Sugar standardization:

Sugar

Sugar dissolving
Tank+H2O (80d.c. 30 min)

Filter Acid

Filter Press (80d.c.)

P.H.E (25d.c.)

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 Sugar syrup +conc.
salt & flavors.

F. Sugar

Explanation:

In India there is no industry producing sugar specifically for soft drinks. So the company has
to prepare the sugar in the factory itself and for making the sugar they has to follow certain
procedures by which they can prepare sugar especially for soft drinks. The procedures for
preparing sugar are as follows:

 Initially the sugar poured into a tank and then water is added to it. The sugar is
dissolve with water at 80 degree celcious for 30 min.

 Then the sugar is treated with filter acid.

 Then it undergoes through filter press at 80 degree celcious.

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  After this process, Pre Heating Process takes place, where sugar is heated at 25 degree
celcious.

 Finally, the sugar syrup is prepared in which concentrated salt and flavour is added. In
this way flavoured sugar is formed.

The concentrated flavour is kept at a room temperature of 5-10 degree celcious. And the
place where the sugar is added with concentrated flovour the room temperature is 20-25
degree celcious.

Flowchart for Carbon-di-oxide standardization:

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 Co2

99.9%

Vaporized

Filter

Co2

Explanation:

 99.9% of carbon-di-oxide is vaporized, then it is filtered for seven minutes and carbon
dioxide for the beverage is prepared.

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  When the water and sugar are treated they are mixed in a 3 phase mixing pump with
carbon-di-oxide.

Explanation with the help of a chart:

In the chart it can be seen that the water and flavoured sugar are mixed together at a
proportion of 1:4/1:5 and it is mixed with carbon-di-oxide in a 3 phase mixing pump. All this
activities takes place in Beverage House.

Water Sugar CO2

Chlorine (6.8ppm)

S.F Sugar dissolving 99.9%

Tank+H2O (80d.c.
30 min)
To remove A.CF Vapourized
Chlorine. (Filter acid)

Polisher (candle filter) Filter

Filter press (80d.c.)

CO2
5m

P.H.E (25d.c)

1m

Sugar syrup +conc.

Ultraviolet rays salt & flavors

Bevg. H2O F.sugar C.C

Bevg.

23
 1:4 / 1:5
Proportion 3 phase mixing
pump.

Beverage House:

Filling House:

24
In the Filling House the bottles are filled with beverage and then these bottles are sealed and
labeled and goes for packaging.

Products Marketed By PepsiCo:

25
Product range

Aliva
About the Brand
With the launch of Aliva, FritoLay India aims to create a new segment of great tasting baked savoury
crackers.

After Kurkure's enormous success, Aliva marks FritoLay India's creation of yet another category – borrowing
ingredients & textures from biscuits & flavourful experiences from namkeens. Aliva is a product range
developed in India especially for the Indian consumer & is a significant step in the company’s journey of
portfolio transformation towards providing healthier and tasty snacking options in line with local consumer
needs.

• Aliva was launched in June 2009

• Aliva breaks the clutter in the cracker segment with its unique combination of stimulating authentic
Indian flavours & good ingredients like wheat and lentils
• Aliva is a baked product with zero transfats & zero cholestrol
• Aliva is available in two pack sizes – Rs 12 & Rs 5

Kurkure
Brand History
Launched in 1999 , this perfect 'namkeen' snack, fully developed in India, has become the torch bearer of
fun and lovable human quirks. It developed an even stronger identity through celebrity associations with Juhi
Chawla [2003] and Kareena Kapoor [2008], well-known actors in Indian Cinema.

About the Brand

Brand Promise
Kurkure is a crunchy new age namkeen snack brand which symbolizes light hearted fun.

Embodying the spirit of India, Kurkure has found a home in the hearts & minds of all and enjoys the position
of a strong Lovemark brand in India.

Brand Advantage
- Cooked in RBO (Rice Bran Oil), Kurkure has 40% less Saturated Fat, Zero Trans Fats and No Added MSG.

- All the raw materials used in Kurkure comply with the Prevention of Food Adulteration Act and Rules that
govern the manufacture, distribution and sale of Kurkure.
- All ingredients are such that are used daily in all households today for preparation of various edible items.

Lay’s
Brand History

26
 Lay’s - world’s largest and favorite snack food brand, has also steadily established itself as an
indispensable part of the “snacking culture” in India since its launch in 1995.

Lay’s, with its irresistible tastes, international & Indian flavors and young imagery has established itself as a
youth brand and continues to grow in the hearts and mind of its consumer!

Lay’s is a SNACKSMARTTMproduct. Lay’s is made with India’s best quality fresh potatoes, simply sliced and
cooked in Rice bran oil, and then seasoned with delicious flavors!
Lay’s also answers the call of the ever growing ‘health-consciousness’ trend in India. It now has 40% less
Saturated Fat, Zero Trans Fats and no added MSG!

Other brands in the food category are CHEETOS and LEHAR.

BEVERAGES
7UP
Brand History
7UP, the refreshing clear drink with natural lemon and lime flavour was created in 1929. 7UP was launched in
India in 1990 and its international mascot Fido Dido was used for advertising in 1992 to position the brand as
a cool drink for youngsters. Fido became an instant hit with his trendy look, laid back attitude and refreshing
take on life. During the brand’s early years in India, 7UP gained market leader status in the lemon lime
category by being one of the first to be nationally distributed as well as being marketed as a healthier
alternative to other soft drinks.

Brand Advantage
For the past 2 years, 7UP’s ambition as a brand has been to capture and own the lemon refreshment territory
within the clear lime category. Lemon has proven to be a clear and relevant differentiator for the brand.
Further, it has allowed the brand to ladder up to an emotional payoff of uplifting refreshment.

Tropicana
Brand History
Tropicana was founded in Bradenton, Florida, USA, in 1947. And is now enjoyed almost everywhere in the
world. Carefully nurtured for over 50 years, it has matured into one of the most respected beverage brands.
Today it is the World's no. 1 juice brand and is available in 63 countries. Since 1998, it has been owned by
PepsiCo, Inc. Tropicana Premium Gold was re-launched as Tropicana 100% in year 2008

Brand Advantage
Categories in India, Tropicana comes in 2 varieties: 100% Juices (sold as Tropicana 100%) and Juice
beverages & nectars (sold as Tropicana).

Slice
Brand History
Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to become a leading
player in the category.

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 In 2008, Slice was relaunched with a 'winning' product formulation which made the consumers fall in love with
its taste. With refreshed pack graphics and clutter breaking advertising, Slice has driven strong appeal within
the category.

Brand Advantage
With the launch of “Aamsutra” campaign in 2008 along with a winning taste & most appealing pack graphics,
Slice created disruptive excitement in the category and celebrated mango indulgence like no other.

Other brands in the beverages category are NIMBOOZ and MOUNTAIN DEW. And
AQUAFINA mineral water.

GROWTH

PepsiCo India has grown its beverage business over 32% in the calendar
year 2009, its highest volume growth in recent years. This makes PepsiCo
the fastest growing beverage company in India for the second year in
succession.

Each one of the company's portfolio of carbonated and non carbonated

brands witnessed robust growth, with Mountain Dew emerging as the
fastest growing beverage brand in the industry for the third successive
year.

India is a top priority market for PepsiCo, a fact underscored by the

company's decision to host its Global board meeting in Mumbai last
November. .

PepsiCo invested aggressively in India in 2009. The investments were

spread across manufacturing, market infrastructure such as coolers, supply
chain and R&D. The company's investments will continue in 2010. It
recently secured clearance from FIPB to inject fresh equity of $200 million
over the next two years.

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SWOT ANALYSIS

As per our findings and survey, we found that the Strengths, weaknesses,
opportunities and threats are as mentioned below:

Strengths:

 R&D for the improvement of products, technology innovation in the production

process is the major strength of PEPSICO
 Competitive advantage of having two clear lime product i.e. 7up & Mountain
Dew
 Economics of scale and economies of scope through large size and
diversification.
 Distribution Network is also one of the biggest strength
 Pepsi’s promotional schemes are far better than the coke

Weaknesses:

 Competitive disadvantage of having single cola product against Coke

 In some cases price matters a lot

Opportunities:

 Stable Legal and political environment that offers good potential for growth
 Income level of customers are rising there by their purchasing power akso
rising
 Population of India is the greatest of opportunity for the industry

Threats:

 One of the major threat that Pepsi is facing not from smaller organization but
from its competitor that is coke
 Somewhere the price of substitute product matter
 Coke market penetration

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GLOBAL APPEAL

PepsiCo entered India in 1989 and has grown to become the country’s largest selling food and
Beverage Company. One of the largest multinational investors in the country, PepsiCo has established
a business which aims to serve the long term dynamic needs of consumers in India.

PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as
well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic
refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options
such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic
sports drinks - Gatorade, Tropicana 100% fruit juices, and juice based drinks – Tropicana Nectars,
Tropicana Twister and Slice, non-carbonated beverage and a new innovation Nimbooz by 7Up. Local
brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.

PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay
products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips, Cheetos extruded snacks,
Uncle Chipps and traditional snacks under the Kurkure and Lehar brands and the recently launched
‘Aliva’ savoury crackers. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and
roasted snack options enhance the healthful choices available to consumers. Frito Lay’s core products,
Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce
saturated fats and all of its products contain voluntary nutritional labeling on their packets.

The group has built an expansive beverage and foods business. To support its operations, PepsiCo has
36 bottling plants in India, of which 13 are company owned and 23 are franchisee owned. In addition
to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants. PepsiCo’s business is based
on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by
this vision every day is visible in its contribution to the country, consumers and farmers.

Establishment
PepsiCo established it's business operations in India in 1989 and has grown to become one of the
country’s leading food and beverage companies. One of the largest multinational investors in the
country, PepsiCo has established a business which aims to serve the long term dynamic needs of
consumers in India.

Investment
PepsiCo India and its partners have invested more than USD1 billion since the company was
established in the country.

Employment
PepsiCo India provides direct and indirect employment to 150,000 people including suppliers and
distributors.
PepsiCo Boilerplate
PepsiCo is one of the world’s largest food and beverage companies, with revenues of nearly $60
billion. PepsiCo offers the world’s largest portfolio of billion-dollar food and beverage brands,
including 19 different product lines that each generates more than $1 billion in annual retail sales. Our
main business - Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade – also make hundreds of
other nourishing, tasty foods and drinks that bring joy to our consumers in more than 200 countries.

PepsiCo’s people are united by our unique commitment to sustainable growth, called Performance
with Purpose. By dedicating ourselves to offering a broad array of choices for healthy, convenient and
fun nourishment, reducing our environmental impact, and fostering a diverse and inclusive workplace

30
culture, PepsiCo balances strong financial returns with giving back to our communities worldwide.
For more information, please visit www.pepsico.com.

Brand Facts
PepsiCo nourishes consumers with a range of products from tasty treats to healthy eats that deliver
enjoyment, nutrition, convenience as well as affordability

Beverages

PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Nimbooz,
Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and
nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade,
Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice.
Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of
brands.

Foods

PepsiCo’s food division, Frito-Lay, is the leader in the branded salty snack market and all
Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips,
Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar
brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack
options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s,
Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated
fats and all of its products contain voluntary nutritional labeling on their packets.

Employee attraction/ retention

� During 2006, 87% of employers experienced challenges in attracting employees, and 66%
had employee retention challenges. Half of
the employers had an increase in employee turnover in 2006.

� The degree of difficulty in attracting and retaining employees varies considerably by

functional area and management level.

� The most effective attraction strategy was offering competitive base salaries, and the top
reason for employee turnover was dissatisfaction with cash compensation.

� Although 91% of employers are taking initiatives to ensure compensation and benefits
programs are competitive, about two thirds of employers are (or will be) coaching/developing
managers and encouraging/enabling a work/life balance.

� Two-thirds of employers expect to have challenges in attracting employees in the next

few years, while one-half of employers expect retention challenges. A majority of employers
expect to meet these challenges in 2007.

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Tools Used To Attract New Employees
Strategy % of Orgs.

Competitive base salary 94%

Opportunities for advancement within the organization 79%
Work/life balance 77%
Competitive benefits program 71%
Flexible work schedule 52%
Retirement plan 35%
Short-term incentive program 33%
Long-term incentive program 30%
Profit-sharing program 25%
Flexible benefits program 17%
Other 11%

Rank
Main Reason For Employee Turnover Based
Based
OnResearch1
OnOpinion2
Dissatisfaction with cash compensation 1st 2nd
Lack of career opportunity offered by the organization 2nd 1st
Lack of recognition and praise 3rd 3rd
Dissatisfaction with work/life balance 4th 4th
Dissatisfaction with corporate culture 5th 5th
th
Dissatisfaction with benefits provided by the organization 6 6th

Salary compensation plan

Employees in the PEPSICO company are been well placed and salaried, these are the some of
the salaries that have paid to the employees.

Salaries in USD Avg. Salary $40k $60k $80k$ 100k

Senior Food Scientist

15 PepsiCo Salaries $76,260 $65k-------$93k

Intern - Hourly

10 PepsiCo Salaries $19.15/hr $17-$22

Senior Analyst

8 PepsiCo Salaries $70,000 $47k------------$85k

Finance Manager

8 PepsiCo Salaries $101,638 $92k------$115k

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Analyst

6 PepsiCo Salaries $56,850 $45k---$75k

Sales Representative

6 PepsiCo Salaries $49,500 $42k--$60k

Production Supervisor

6 PepsiCo Salaries $58,500 $53k-$65k

Account Manager

5 PepsiCo Salaries $76,800 $50k------------$100k

Financial Analyst

5 PepsiCo Salaries $60,400 $50k---$78k

Assistant Marketing Manager

4 PepsiCo Salaries $90,250 $67k------$108k

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PepsiCo and Pesticides

Accusation against PepsiCo:

 On August 5th, 2003 a Delhi-based non-government organization, Centre for Science

and Environment published that 12 soft drinks sold in and around the capital contain a
deadly cocktail of pesticides residues.

 According to the tests conducted by the Pollution Monitoring Laboratory of CSE, all
samples to the tests contained residues of four extremely toxic pesticides and
insecticides that are lindaine, DDT, malathion and chlorprifos. The members who
conducted this test were Dr. H.B. Mathur, Dr. Sapna Johnson and Avinash Kumar.

 According Dr. Mathur, these pesticides includes carcinogens which can cause cancers
and reduce bone mineral density.

 Pesticides found in Pepsi products were Diet Pepsi, Mountain Dew, Lehar Pepsi
and Miranda Orange.

 According to CSE chief Sunita Narain in all the samples the level of pesticides
residues exceeded the maximum residue limit for pesticides set down by the European
Economic Commission.

 In all PepsiCo brands, total pesticides on an average were 0.180 mg/litre which is 36
times higher than the EEC limit of total pesticides at 0.0005 mg/l.

 Besides the harmful effect of pesticides found in soft drinks, CSE stated that there are
some ingredients of soft drinks that have adverse impact on health such as artificial
sweeteners, flavouring agents like caffeine, acids like phosphoric acid etc.

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Action Taken After Accusation:

 Health minister Sushma Swaraj announces in Parliament that samples have been
collected. Samples of 15 branded soft drinks from Mumbai, Chennai, Kolkata and
Delhi were subsequently sent for testing to the Central Food Technological
Research Institute (CFTRI), Mysore.

 Orissa government orders tests of soft drinks samples by available facilities in the
state.

 Food and Drug Administration, Nagpur, bans distribution of Pepsi and Coke
products as a “precautionary measure”. Samples were collected and sent to a
laboratory in Pune for testing.

 West Bengal health department decides to test samples at the Public Health
Laboratory and Salt Lake Laboratory.

 Karnataka state government announces intention to test soft drink samples.

Gujarat government also collects samples from plants in Bharauch, Ahmedabad
and Rajkot for testing purpose. Andhra Pradesh government announces to do
‘random testing’ of soft drinks

 Delhi High Court asks government to set up an expert committee and come up with
results of tests in 3 weeks. It also asked the government to review the standards for
soft drinks, and include pesticide norms comparable to the rest of the world.

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 Recommendation

 In case of caffeinated cola drink, the company must mention on the label the amount
of caffeine is added.

 PepsiCo can issue public circular, magazines or a booklet giving information about
the steps taken by them in order to maintain high level of quality.

 The company should conduct random checks making sure that no retail shops are
selling the product that has met its expiry date.

 They can conduct road shows.

 They can put banners or hoarding in public places depicting that the product is safe.

 It is necessary for the company to ensure that when the goods are in transit no
damages takes place. In order words quality must be maintain at the time of
distribution of goods.

 Finally, they can take the help of media such as newspaper, television etc.

SCOPE FOR IIPM STUDENTS

Large Corporations - Large corporations have always had a need for good management.
Therefore, big companies have hired their share of MBA graduates. Think of any major
corporation you know and chances are...they have hired an MBA.

An MBA is a big investment and directly affects your career opportunities - so it is not
something to be taken lightly. Although an MBA does not guarantee you anything, it can

36
enhance your opportunities and opens doors...especially for entry level MBA jobs. The MBA
has a good track record when it comes to careers for MBA graduates.

Working for PepsiCo as Plant HR Manager

Coaching, motivating and developing team members to build a high performing HR team

Developing and maintaining harmonious and progressive employee relations in the plant
through 2 way communication and employee involvement

Making along with the plant manager an adaptive work culture that promotes company
growth

Overseeing that safety, security and housekeeping needs are met in the manner required by
the plant for smooth functioning

Ensure that the HR costs are controlled through appropriate cost reduction techniques

Ensuring effective manpower planning and providing right person for the right job on time

Ensuring smooth on-boarding of new joiners to the Pepsi work culture, processes and
policies

Providing opportunities for and ensuring the growth and development of employees through
training programs and HR interventions

Leading change initiatives in own area and supporting continuous improvement in the plant

Ensuring timely and fair performance appraisal for all employees

Overseeing employee welfare activities to build team spirit and sense of ownership

Ensuring strict adherence to statutory laws

Ensuring adequate, timely administrative/ personnel facilities are provided to the plant
employees

Ensuring accurate, timely, planning, preparation and adherence to department budget

Ensuring minimal turnover and analyzing causes for leaving and addressing them

Continuously learning and upgrading own abilities

Profile

Experience and Qualification

Post graduate degree in Human Resource Management/Social Sciences/ Industrial

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Psychology with 2/3 years in a medium/large sized Manufacturing/Industrial Relations
environment

Skills and Behavioral Attributes

Excellent team management skills

Excellent communication, coaching and influencing skills

High levels of persuasion and facilitator skills particularly directed at senior management
level

Flexibility, adaptability and able to think laterally in different environments

Strong organisation and project management skills

High level of confidence & ability to carry himself

Strong focus on delivery and results with high drive and energy level

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Articles

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