1

Contents 2

 Introduction
 Industry background
 Business model
 Swot analysis
 Porter’s five forces analysis
 It infrastructure
 CRM system overview
 Selected CRM (Sap software)
 Discussion and justification of CRM
Introduction 3

 PepsiCo is one of the globally leading companies in the food and

beverages industry.
 The report is a detailed investigation of the impact and effect of
emerging technologies and information systems on PepsiCo
company.
 The industry background of PepsiCo will provide information about
the formation and future scope of the company. In further
discussion, the business model helps in understanding the business
activities and operations.
 Swot analysis and porter's five forces analysis are also discussed.
The report will move towards IT systems of the companies. The My
Sap CRM system manages the customers and keeps them in a
relationship.
Industry background 4

 In 1965, PepsiCo was established by merging Pepsi-Cola and Frito-

Lay. This happened with the help of these two persons-Donald
Kendall (the CEO of Pepsi-Cola) and Herman Lay (the CEO of
Frito-Lay) to serve the customer globally with an individual
company in the food and beverages industry.
 Pepsi-Cola was started its journey in 1893 (by a pharmacist named
Caleb Bradham) and Frito-Lay was developed in 1961.
 Pepsi-Cola is specialized in its Cola recipe and Frito-Lay is popular
for its corn chips and potato chips.
 In the 1990s, PepsiCo extends its product portfolio by acquisition
with Quaker Oats Company, Tropicana, and Gatorade.
Continue…. 5
 Today PepsiCo is one of the largest companies serving customers
globally and producing numerous products in the food and
beverages industry.
 PepsiCo got 90th position on the Forbes global 2000 list and is
ranked 44th on the fortune 500 lists. It has currently $151.51 billion
in the capital, $70 billion in revenue, and over 285, 000 employees.
 Popular brand are including PepsiCo, Pepsi-Cola, mountain dew,
Lay's, diet Pepsi, Doritos, Tropicana, Gatorade and quaker.
 The company is consisting of seven divisions such as

PepsiCo Frito-Lay North Quaker food Africa, Middle Latin America Europe The Asia
beverages North America North America East, South Asia Pacific,
America Australia/New
Zealand, China
Business model 6
Customer Value proposition; Distribution Customer Revenue stream;
segment;  Efficiency and channels; relationship;  Main portion
 Independent sustainability in the The company deals with  Self-service basis in revenue from some
distributors and products its customers through in- which customer popular brands
wholesalers of food  Quality and size of house sales and purchase and serve mentioned earlier,
and beverages brand portfolio with marketing reams which themselves without  PepsiCo generates
 Food service popular brand are working in different interaction with the revenue by selling
businesses like products like Pepsi, geographic regions. sales staff its food and
restaurant chains, dew, Lay’s and Some Bottlers  Sales teams beverage items. In
cafes, eateries and Doritos distribution channels are distribute and the previous year, it
coffee stores.  Marketing approach also used to retail store promote the generated more than
 Retailers stores to the native and products through the $70 billion in
 Independent bottlers global market use of incentives revenue globally
that sell branded such as volume-
beverages based rebates,
displays,
promotional
campaigns and
product placement
fees.
 Online contacts and
online forums
Continue…
Key activities;
The company operates via
manufacturers on a contract
basis, bottlers and other
third parties to produce,
market, distribute and sell
its large number of products
to the customers.
7
Key partners; Key resources; Cost structure;
 Suppliers and Vendors  Intellectual properties  Product development
such as materials, and brands  Manufacturing
ingredients, services for  Production and logistics  Promotional
production, and infrastructure
distribution of the  Sales and marketing campaigns of brands
products channels  Retention of staff
 Channel partners such  Sales staff
as independent sales
agents and foodservice
distributors
 Alliance partners for
sharing tools, resources
and work on joint
projects
 Joint venture with other
brands
Swot analysis 8

Strengths
 Best global brand
 Powerful strategy
 Market dominance
 Direct store delivery
Weaknesses
 Controversial advertisement
 Perceived as unhealthy products
 Failed products impressions

Opportunities Threats
 Product diversification  Tough competition
 Alliances and partnership  Demographical changes
enhancement  Health consciousness
 New flavors  Govt laws and regulations
Porter’s 5 forces analysis 9

 PepsiCo is a global brand that has increased numbers of external

factors in its industry environment and these are given as

Five forces Description

1 The Coca-Cola Company is the biggest competitor of the PepsiCo company. these are factors that
Competitive creating this competitive environment
rivalry with • Aggressive response of companies (strong force)
• Switching cost is not high (strong force)
PepsiCo
• Various firms are operating (moderate force)

2 Customers are the main priorities of the PepsiCo company. Here the factors that influence the
Bargaining power customers are
of customers • Low switching cost (strong force)
• Availability of substitutes (strong force)
• Access to product information (strong force)
Continue… 10
3 Bargaining The company needs to maintain good relations with the suppliers.
power of • High supply (weak force)
supplier • Forward integration (weak force)
• The moderate size of individual suppliers (moderate force)

4 It is not difficult to develop substitutes for PepsiCo's products regarding the preferences of consumers
Threat of and other variables.
substitutes • High performance off substitutes (strong force)
• Switching cost is low (strong force)
• Availability of substitutes is high (strong force)

5 Although PepsiCo is a strong competitor player in the market these are the factors that may influence it
Threat of Switching cost is low (strong force)
new entry Customer loyalty (moderate force)
Brand development cost (weak force)
It infrastructure 11

 An information system is a system used to assemble, store, process,

and provide information relevant to the company. In this system,
information is available and useful for the company’s members to
perform business activities.
 The CRM system aims to help in simplifying the marketing selling
process for the companies.
 In previous times, the company is using Oracle's People software.
But the latest My Sap software is more beneficial and supportive for
the company.
 This CRM application serves to develop more interaction between
the organization and its customers for better relationships and
services for higher profitability.
CRM system 12
 MySap
 Sap is the existing CRM system of PepsiCo. It suits one of the
global leading brands for uniquely designing its operations, standard
business process, and enhanced efficiency across PepsiCo divisions.
 Oracle to MySap
 The vice president of the CRM system of PepsiCo said that MySap
is useful to remove or displace disparate systems and redundancies
in the processes and provide geographic location visibility.
 The company is also working in trade promotion activities, joint
venture and alliances with other companies with the help of MySap
in the food and beverages industry.
Continue… 13

 The company is also interested in midrange segments in the food

and beverage industry. For this purpose, PepsiCo is in a relationship
with Deloitte Touché Tohmatsu member firm for creating new
packaged software and best service solutions to help in midrange
segments.
 Coca-Cola is partnered with Sap system for direct store delivery of
the products.
 PepsiCo has also worked on it and developed integration between
bottlers back-end IT systems, field representatives, delivery drivers
and services staff to serve the customers
Conclusion 14

PepsiCo is one of the top player in the market of food and beverages. It has an
effective business model to grow and compete in its target market and industry.
Although there are many factors influencing its performance but the company
managing effectively via its wise business and CRM strategies. CRM system has
modified the traditional or usual business process to manage the customers. Sap is
very supportive and helpful; a business solution for the companies to work
nowadays. It is an efficient and effective manner of business operations and
activities. So, it is useful for the companies to manage emerging technologies and or
other influential factors of the business. PepsiCo should keep work on its CRM
system to deliver more extraordinary customer service and customer relationship
management.
References 15
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