PEPSICO 10 Education

RIVALRY – Intense worldwide completion… primarily with Coca-Cola, DPSG, Kellogg,

Kraft-Heinz, Mondelez, Monster, Nestle, Red Bull, and Snyder’s-Lance.

SUBSTITUTES – water, coffee, tea, bread, competitor products (Coke, etc)

BARRIERS TO ENTRY/EXIT – government regulation of beverages and food products;

access to emerging markets and distribution channels; high capital investment in food
processing factories and bottling plants.

CUSTOMER POWER – Very large supermarket chains and WalMart have significant
bargaining power.

SUPPLIER POWER – Well-integrated supply chain; many suppliers are dependent/captive.

COMPETITIVE ENVIRONMENT
WHO IS PEPSICO?
FRITO-LAY – salty snack foods
Lays, Doritos, Cheetos, Tostitos, Fritos, Ruffles, Santitas, Sabra, Walkers

QUAKER – cereals, rice, pasta

Oatmeal, Granola Bars, Aunt Jemima, Capt.'s Crunch, Life, Rice-a-Roni

BEVERAGES -- carbonated drinks, sports drinks, fruit juices, tea, waters

Pepsi, Gatorade, Mountain Dew, Aquafina, Tropicana, Sierra Mist, Mug
Has joint ventures with Unilever (Lipton) and Starbucks (coffee), and has a licensing
agreement with Dr. Pepper Snapple Group (Dr. Pepper, Snapple, Crush, Schweppes), Dole
(pineapple), and Ocean Spray (cranberries).

More information
CONVENIENCE FOOD COMPETITORS

Market Share
Kellogg
12%

Hershey
17%
PepsiCo
48%

Kraft Foods
23%

PepsiCo Kraft Foods Hershey Kellogg

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PEPSI SOFT DRINKS – MARKET SHARES

Country/Region Beverage Market Shares

Middle East 75 %
India 49
Thailand 49
Egypt 47
Venezuela 42
United States 39
Nigeria 38
China 36
Russia 24