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PepsiCo is a world leader in convenient snacks, food and beverages with revenues of more than $39 billion and

over 185,000 employees worldwide in 2009. PepsiCo has attained a leadership position as being to next to Coca Cola in a soft drink bottling. Their business profit is increasing rapidly due to a high standard of performance, marketing strategies, competitiveness, determination, commitment, and the personal and professional integrity of their people, products and business practices.

Pepsi is one of the oldest soft drink beverage brands in Bangladesh since 1976 and came with the cola-flavored Pepsi, the clear-flavored 7up, the orange-flavored Mirinda and later introduced the mango-flavored Slice and citrus-flavored carbonated soft drink Mountain Dew. Pepsi is manufactured by Transcom Bangladesh limited in Bangladesh. The company is the exclusive PepsiCo Franchisee for Bangladesh. Transcom Bangladesh Limited committed to delivering sustained growth in Bangladesh and move towards dominant Beverage Company, delighting & nourishing every Bangladeshi, by best meeting their everyday beverages needs & stakeholders by delivering performance with the purpose, though talented people and successful marketing strategies.

Strengths
1. Product diversity. PepsiCo has several hundreds of brands, which include: carbonated and noncarbonated drinks, water, savory and whole grain-based snacks. Product diversification strengthens PepsiCo because it doesnt have to rely on few key products or seasonal sales and isnt significantly affected by changes in customer tastes. 2. Extensive distribution channel. PepsiCo products are served to more than 10 million stores per week in more than 200 countries. 3. CSR. The firm recognizes its role in a society and engages in education, recycling, water usage reduction, obesity fighting and other projects through PepsiCo Foundation, thus increasing its brand awareness and customer loyalty. 4. Competency in mergers and acquisitions. The key to PepsiCo growth is its successful mergers and acquisitions of beverage, bottling and snacks companies. PepsiCo acquired such brands as Gatorade, Tropicana, Doritos, Quaker Oats and many others. 5. 22 brands earning more than $1 billion a year. The company doesnt have to rely on one or two of its product to bring most of the revenues. Instead, Pepsi has 22 brands that contribute significantly to its income, serving different industries and satisfying various consumer tastes. 6. Successful marketing and advertising campaigns. More than $2 billion spent on advertising over 2012 resulted in PepsiCos growing market share over its main competitors, including Coca Cola Company, which spent even more on advertising. 7. Complementary product sales. In its annual financial report, PepsiCo revealed one of its studies results that about 30% of customers who buy its snacks also buy its beverages. PepsiCos decision to diversify its product range is firms competitive advantage too. 8. Proactive and progressive. According to New York Times food industry writer Melanie Warner, PepsiCo, by many critics, is considered to be most proactive and progressive food company.

Weaknesses
1. Overdependence on Wal-Mart. More than 13% of PepsiCo revenues come from WalMart store chain. Wal-Mart has a significant buyer power and can easily dictate prices over PepsiCo leaving it with very small margins. In addition, if PepsiCo would lose WalMart it would lose 13% of its revenue and competitive advantage. 2. Low pricing. PepsiCo usually prices its products lower than its competitors. Low price is associated with low quality and PepsiCo products are usually perceived as ones. 3. Questionable practices. PepsiCo is using and selling tap water but places view of mountains on its water bottle labels, thus deceiving people that it is mountain spring water when it is not. PepsiCo has also been criticized for using water in India with higher than allowed amount of pesticides in it.

4. Weak brand awareness. The Coca Cola has the largest share market of beverages in the world and much stronger brand awareness than Pepsi, placing it at competitive disadvantage. 5. Too low net profit margin. PepsiCos net profit margin is 9.7% compared to Coca Colas 18.55% and Nestls 11%.

Opportunities
1. Growing beverages and snacks consumption in emerging markets. PepsiCo has made large investments in BRIC countries to expand its market share as these countries represent the fastest growing food and beverages markets in the world. If PepsiCo is successful it will increase its revenues and global market share significantly. In addition, it will be able to rely less on US market. 2. Increasing demand for healthy food and beverages. Due to many programs to fight obesity, demand for healthy food and beverages has increased drastically. PepsiCo has an opportunity to further expand its product range with beverages and snacks that have low amount of sugar and calories. 3. Further expansion through acquisitions. So far, PepsiCo has been successful in acquiring other companies and adding new growing brands to its portfolio. 4. Bottled water consumption growth. Consumption of bottled water is expected to grow both in US (PepsiCos largest bottled water market) and the rest of the world. 5. Savory snacks consumption growth. The same opportunity PepsiCo has in growing its revenue selling snacks as this market is also expected to grow.

Threats
1. Changes in consumer tastes. Consumers around the world become more health conscious and reduce their consumption of carbonated drinks, drinks that have large amounts of sugar, calories and fat. 2. Water scarcity. Water is becoming scarcer around the world and increases in both cost and criticism for PepsiCo over the large amounts of water used for production. 3. Decreasing gross profit margin. PepsiCos gross profit margin was decreasing over the past few years and may continue to decrease due to higher water and other raw material costs. 4. Legal requirements to disclose negative information on product labels. Some researches show that particular ingredients, consumed in extra large quantities, in some of PepsiCo products could cause cancer. For this reason, many governments consider to pass legislation that requires disclosing such information on product labels. Products containing such information may be perceived negatively and lose its customers. 5. Strong dollar. More than 50% of PepsiCos income is from outside US. Due to strong dollar performance against other currencies PepsiCos income should fall.

6. Increased competition from Snyders. Snyders increase its US savory snacks market share by 1.6% and almost all of it was taken from PepsiCo.

SWOT Analysis 1. Large network of exclusive stores and service centres 2. High Top of the mind recall, especially for the Mid market segment 3. Different sub-brands under the brand Titan have been successful in their positioning based on Demographic segmentation 4. One of the worlds top five and Indias biggest watch manufacturer 5. Titan watches are exported in over 40 countries 1. Premium category Titan brands like Xylys have been camouflaged by the Titan brand Image of being a mid-market player 2. Havent penetrated the global market as some other international watch makers 1. India is an under penetrated market for watches 2. Global expansion and tie-ups with global watch and Jewellry brands 1. Broad Target segment may lead to lack of focus in Brand strategy 2. Stiff Competition faced by foreign brands, particularly in the premium segment Competition 1. Timex 2. Casio 3. Citizen

Strength

Weakness Opportunity

Threats

Competitors

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