JAIPURIA INSTITUTE OF MANAGEMENT

BUSINESS ISSUES

SUBMITTED BY :

SAMEERA RAHMAN - 122

RICHA SHARMA FS- 036
NEETIKA AGARWAL - 082
NISHI SHWETA - 089
POONAM NARWANI- 092
NEHA AHUJA - 083
HISTORY

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.
 VALUE CHAIN OF PEPSICO

The Pepsico’S tagline Performance with Purpose means delivering sustainable growth
by investing in a healthier future for people and our planet.They are trying their best to
continue building a portfolio of enjoyable and wholesome foods and beverages ,trying to
find innovative ways to reduce the use of energy, water and provide a great workplace for
their associates.

Nowdays, many companies are talking about ‘water risk’ and how to manage it, because
many sectors utilizes large volume of water in their direct operations-within
processing/manufacturing. So, it becomes more challenging to develop innovative
solutions to improve water use efficiency. At Pepsico , they use a formalized training
tool Water recon ( for Resource Conservation), which helps the manufacturing facility

measure all the water use streams in the plant , and then assigns a relative cost to those
streams.

They are actively working with farmers to promote sustainable agriculture and
developing new packaging alternatives in both snacks and beverages to reduce their
impact on the environment.

They are taking to refresh their brands across the entire beverage category which would
enable them to accelerate their top- line growth and also improve their profitability .They
will use their R&D capabilities to develop low- and zero-calorie beverages that taste
great and add positive nutrition such as fiber, vitamins and calcium.i

The combination of snacks and beverages—with their high-demand global and

local brands—makes PepsiCo an essential partner for large format
as well as small-format retailers. They will increasingly
use this portfolio and the high coincidence of consumption
of these products through integrated offerings (products,
marketing and merchandising) to create value for consumers
and deliver greater top-line growth for retailers. They also will
be accelerating Power of One supply chain and back-office
synergies in many regions to improve profitability and
enhance customer service.

They have stressed more on nutrition regarding use of whole grains, fiber, fruits ,vitamins
and minerals which would enable customers to choose the nutritional benefits of healthier
foods and beverages .