General Company Description

General Company Description

“We have absolute clarity about what we do ‘WE SELL HIGH QUALITY FOOD AND BEVERAGE PRODUCTS.’ Our success will ensure: customers will build their business, employees build their futures, and shareholders build their wealth.” Pepsi merged with Frito-Lay in 1965, Tropicana in 1998, and The Quaker Oat Company, including Gatorade, in 2001. Pepsi is the number one seller in the Pepsi Company.

The brands provide the muscle to build the businesses well into the future. PepsiCo’s brands are among the largest and best known in the world. Every day, more than 500 products are purchased by millions of consumers. Sixteen of brands each sell more than a billion dollars annually at retail. PepsiCo’s revenue has continues to increase over the last few years. The operating profit increases while the net revenue increases.

Pepsi currently has a 26% hold on market share in the soda industry, making them number two behind Coke. Pepsi is the leader in Sports drinks, chilled juice, bottled water, ready to drink tea, and enhanced water. They are number two in energy drinks as well. One of the major problems Pepsi suffers with is Scan Based Trading. Pepsi is in most retail stores and if Pepsi and Coke are on sale at the same store and the same time, cashiers won’t always ring both Pepsi and Coke in separately when a customer purchases both. If a customer purchases 2 cases of Pepsi and 2 cases of Coke, cashiers have rung all 4 cases in as Coke, which means that Coke will receive the profit from all 4 cases. If this happens often, Pepsi will lose a large amount of profit. Pepsi is trying to find a way to improve this problem.

One of the best ways Pepsi has been able to increase their revenue is through the merger of the different companies. They have found many ways to gain access into the stomachs and wallets of their consumers. They have many different varieties of their foods and this has created an even larger target market. Now that Pepsi has merged with such companies as Quaker and Gatorade, their target market has grown to athletes and families. The next step for Pepsi and its merged companies is getting them to work together, especially in sales. They need to show their large selection of products put together in one.

Pepsi’s number one competitor is and has always been Coke. Although in the 2006, Pepsi’s sales nearly doubled Cokes. The gain is less on a five-year basis, but a 1.4% annual edge has allowed Pepsi's total sales to exceed Coke's by nearly 50%. Pepsi has almost 3 times as many employees, larger revenues but less net profit then Coke. Coke makes a larger net profit due to the cost of producing their product. Pepsi could possibly increase their net profit by increasing