With the population focusing on healthy and nutritious food items, PepsiCo must reinvent its product line to remain relevant and in sync with the times. In conclusion it can be said that while PepsiCo does face threats from political instability and economic downturns, an improved, health-oriented product line and sustainable business practices can help the global giant maintain its top position in the market and even expand into newer territories, Contact Us | Privacy Policy | Terms of Service, Final Thoughts of PESTLE Analysis of PepsiCo, What is a Press Release?

The year 1965 witnessed an outstanding merger of Pepsi-Cola and Frito-Lay, which the founder's called it a 'marriage made in heaven'. The growth trajectory of PepsiCo partially relies on how the company addresses these external factors identified by the PESTLE analysis. SWOT & PESTLE.com (2022). Do you want us to design a market survey or write a market research report as per your specific requirements? Snacks. Therefore, the brand should be careful about the condition of labor in other countries. According to a report byMacroTrend, Pepsis annual revenue was68.557billion dollars by the end of 2020, and it has risen3.8%. PepsiCos business is partly dependent on technologies. With rising health concerns regarding fast foods and carbonated drinks, PepsiCo has seen its share of profits sliding in recent years. PepsiCo has already taken steps in this direction with the release of diet versions of their drinks which are lower in sugar and calorie content. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Governments are external factors that impose requirements on PepsiCo. The pandemic ofCovid-19has caused a global economic recession worldwide. For CCPA and GDPR compliance, we do not use personally identifiable information to serve ads in California, the EU, and the EEA.

Like the target marketing onGoogle,Facebook, and Instagram, they would help the company to reach the young audience on the new digital platforms.

We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. food, snack and beverage corporation that operates across the continents. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.

News like bad working conditions and unfair employees treatment could tarnish the companys reputation. The moderate rate of regulatory change gives opportunity for PepsiCo to grow with the expectation that its current strategic decisions will satisfy regulatory requirements in the long term. You can use the following in your reference section in order to give credit to the source. The customer market is avoiding these things and they prefer to buy healthier products. They dont support any brand that pollutes the environment. Also, PepsiCo can exploit the benefits of knowledge management systems to support its various business processes, such as product innovation and strategic decision-making. Judging by sheer volume, PepsiCo is the largest 'Big victory for farmers: Farmers on revocation of PepsiCos Lays patent BusinessToday - https://www.businesstoday.in/latest/story/big-victory-for-farmers-farmers-on-revocation-of-pepsicos-lays-patent-314675-2021-12-07, 5. towards building an enduring legacy with brands such as Lays, Mountain Dew, Reach thousands of academicians and corporates. Need Strategic Analysis for this company? As the various macro-economic factors continue to change across the world, this PESTLE analysis of PepsiCo aims to study the various opportunities that PepsiCo may avail of, together with taking a view of the threats it might have to face in the global marketplace. Such requirements and regulations are evaluated in this element of the PESTEL/PESTLE analysis in terms of their effect on the industrys remote or macro-environment. PepsiCo is an American food and beverage manufacturing multinational company. Pestle analysis of Pepsi. Their Global Brands include likes of Pepsi, Lays, Mountain Dew, Miranda, Tropicana, Fritos, Lipton, Aquafina, Lays, Cheetos, Quaker and many more. Recently the world has seen a cultural shift from the fast-food loving crowds to a population that is more health-conscious than ever. Now the company plans to introduce new products with less sugar in them. The remaining section under "Technology" is available only in the 'Complete Report' on purchase.

In the Paris Agreement 2016 where different governments of the world have set up strict environmental regulations and heavy fines. It should allow users to connect with local retailers and order the drink. This report is shared in order to give you an idea of what the complete Value Chain Analysis Report will cover after purchase. Pepsi should be careful about the environmental issues and it should use biodegradable plastic for the distribution of its products. Now, the brand has to change its marketing and business strategy. For different referencing styles and detailed guidelines, please click here. Peps would decrease the salt to 1.3%, 1.1% fats, and 12 ounces of sugar in 2025. Holistic Analysis This element of the PESTEL/PESTLE analysis considers the effects of governmental action on companies remote or macro-environment. We do not share your information with anyone. The company has the opportunity to continue enhancing product quality to maximize revenues, with regard to consumers increasingly discriminating attitudes about product quality. This element of the PESTEL/PESTLE analysis shows that PepsiCo must ensure market diversification to achieve stable international growth. The use of unsustainable resources gives the impression that the company doesnt care about the nature and environment. was recently done in the US).

Through extensive research on consumer preferences, cutting edge designs, exciting campaigns and world class partnerships, PepsiCo boasts of building powerful brands. Their iconic black can Pepsi, more popular as Pepsi Zero Sugar or Pepsi Max continued to grow and saw good traction around the globe. Its because some of the people use these soft drinks as an alternative to killing pests in the fields. In 2018, PepsiCo continued to refine their beverage, food and snack portfolio to meet changing consumer demands by reducing added sugars in many of the beverages and sodium and saturated fat in many of their foods and (2007). We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.

Based on this element of the PESTEL/PESTLE analysis, PepsiCo must improve its environmental impact to attract and retain customers, and to stabilize its supply chain.

The carbonated soft drink companies likeCoca-ColaandPepsicould face serious legal issues by the usage of pesticides in their drinks. This report is shared in order to give you an idea of what the complete VRIO Analysis Report will cover after purchase. Fun for You. While regulatory compliance is one facet of the companys legalities, copyright infringement is another factor that it needs to tackle on a regular basis. Some of the prominent competitors of Pepsi are Kraft Foods, Campbell Soup Company,Nestle, Conagra Brands, Unilever, Kellogg, Link Snacks, Red-Bull, Monster Beverage,Coca-Cola, and General Mills. This section is available only in the 'Complete Report' on purchase. PepsiCos supply chain and brand image are linked to environmental concerns. For instance, if the currency of the exporting country is strong, it would reduce company profitability. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. The company has to retarget the market with suitable promotion and marketing campaigns relevant to the age group. PepsiCo and its competitors are subject to legal requirements. As the purchasing power of the people increases, lifestyles become more eclectic, and this may work in favor of consumption of the foods and beverages that PepsiCo markets. The global market presents challenges that threaten PepsiCo while creating opportunities for improvement. This report is shared in order to give you an idea of what the complete Environmental, Social, and Governance (ESG) Analysis Report will cover after purchase. 1. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. It was because of the months of shutdown and lockdown of businesses. if you want to learn about internal factors, check out the swot analysis of Pepsi. People are becoming very conscious about the environment and nature. This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. BIM Implementation: PESTEL Drivers & Barriers (Cross-national Analysis).

We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. A stable government together with a developed (or even developing) economy can help PepsiCo climb the profits charts to success.

Intense competition in beverages segment, 1.

Advancements in artificial intelligence can help the company optimize their Cultural shift from carbonated drinks to healthy beverages, 1.

PepsiCo has succeeded in maintaining an excellent track record of consecutive dividend increase for 46 years. The laws and regulations of different governments are different. This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. UCF Research Guides. Grow your business. PESTLE Analysis. The annual sale of Pepsi declined and the net profitability of the company has reduced by approximately43.23%in 2020. Customized Solutions Currently, Pepsi has employed267000employees to manage various operations of the brand worldwide. PepsiCo has to navigate through government regulations and tax laws in order to maintain a profitable operation. Key Performance Indicators (KPI's) Report. This report is shared in order to give you an idea of what the complete Segmentation, Targeting and Positioning (STP) Analysis Report will cover after purchase. A change in the customers lifestyle, purchasing behavior, and attitude affect the sale and revenue stream of the company. Most importantly, the position of the dollar in the currency exchange market in other countries.

At the same time, however, the FMCG giant must be mindful of the latest health regulations that are imposed on it, together with compliance issues. PepsiCo returned $7.5 billion to shareholders through dividends and share repurchases combined. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. In addition, an increase in the number of automated processes in the company can enhance business performance. Quaker 3-minute Oats, Legume based products and Simply brands products were introduced to adapt to the demands for more nutritious and more delicious foods. Other than that, hes a fun loving person. Some of the States in the US have introduced Soda Tax on carbonated soft drink companies likePepsiandCoca-Cola. They helped me with my custom research and delivered before time! We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. The company relies majorly on data and analytics to supply to its retailers globally in more than 200 countries who in turn cater to PepsiCos more than one billion customers daily. The advertisement and marketing campaign for Pepsi usually focus on the young audience.

This report is shared in order to give you an idea of what the complete Technology Landscape and Outlook Report will cover after purchase. !-Keith GrencherBirmingham Business School. This report is shared in order to give you an idea of what the complete Risk Analysis Report will cover after purchase. The soda tax increased the price by 3 cents per bottle. Cuts down my effort to surf through heaps of redundant data.-Alexandra MookiMajor in Business Administration, Carnegie Mellon University, This website has an amazing support team. Changing political landscape of countries can also The merger of two reigning companies, Pepsi-Cola Company and Frito-Lay, Inc. gave birth to PepsiCo in 1965. PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Purchase, New York. However, we may send you emails on our new reports and solutions. The companys Collaborative Planning, Forecasting, and Replenishment (CPFR) team has effectively leveraged big data for increasing efficiency in retail-sales management.

Automation technologies can also help the company We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.

They want a less sugary drink with fewer calories. PepsiCo is a global brand with presence in more than 200 countries and territories and employs approximately 291,000 people worldwide as of July 2021. If it results in the form of health and diet regulations, the company would lose sales and market share. However, the current slowdown of the Chinese economy threatens PepsiCos potential international growth, considering that China is among the biggest economies in the world. Please note that you agree to receive email updates from us on our new reports and solutions. contribute to the rise or fall of PepsiCo, depending on whether the governments Caleb Bradham was the founder of Pepsi and he established the brand in 1893 by the name of Brads Drink. Later he changed it into Pepsi-Cola in 1898, and it became Pepsi in 1961.

Better for You and 3. Together with restrictions on the use of certain ingredients and increasing taxes, PepsiCo certainly has a lot on its legal plate. Consistent marketing and advertisement campaigns are the keys to the success of any business. In 2006, PepsiCos portfolio was predominantly dominated by the third category which was 70% larger than Good for You and Better for You slices combined, but by 2017 end, they have become nearly equal in size. Subsidiaries, Partnerships and Collaborations Report.

We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. The headquarter of the brand is situated in Harrison, New York. PepsiCo can also take advantage of the busy lifestyles of consumers, especially in urbanized and industrializing markets around the world. All Rights Reserved by Barakaat Consulting. This is scope for the company to create a new line of healthier products that can cater to the needs of the current market. A major portion of Pepsis revenue comes from the US and EU markets. PepsiCos performance is directly linked to the economy.

Many of PepsiCos consumers follow sociocultural trends. This report is shared in order to give you an idea of what the complete Stakeholder Analysis Report will cover after purchase. The purpose of the ad was to focus on the Black lives matter movement and social atrocities committed against the black community. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Copyright of PepsiCo SWOT and PESTLE Analysis is the property of Barakaat Consulting. In case you want this report emailed straight into your email inbox, kindly share your details below. The conglomeration aimed at delivering a perfectly salty snack with the best soda under one company PepsiCo. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Leveraging big data for optimization of supply chain, 1.

The Summary report contains the SWOT & PESTLE table contents only.

The following are notable sociocultural external factors relevant to PepsiCos business: Higher health consciousness is a threat to PepsiCo because of concerns about the sugar, salt, and fat content of its products. It claimed that the company is deceiving the public with wrongful labeling of the ingredients of Naked Juice. This report contains the table contents only. support the proliferation of fast foods and soft drinks, or whether they

2. In this element of the PESTEL/PESTLE analysis, PepsiCo must consider changing its products to overcome the identified threat about carbonated drinks.

increase the efficiency of their production and logistics processes. Things are, however, taking a turn for this giant of the industry. Top Quality.

We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. In case you need the complete report please purchase using the buy options displayed. The song School Khatam ho Raha ha Dosti nai was so touching that it has got more than 7.2 million views by the end of 2020. However, government initiatives against sweetened carbonated drinks are a threat that could reduce PepsiCos revenues from affected segments.

Such an increase in the tax rate would reduce the sales and profitability of the company.

Political factors play a big role in the success of PepsiCo. The company should decrease the sugar level, avoid legal issues, and use biodegradable bottles.

CSPI (Center for Science in the Public Interest) filed a lawsuit against Pepsis brand Naked Juice on the misleading label issue in 2016. Its dividend yield and free cash flow persistently remains quite strong. Its great news for the company that the Indian government has recently decreased corporate taxes by approximately 10%. The pandemic ofcovid-19and the lockdown and shutdown of businesses has increased the influence of e-commerce and online shopping trends. Addressing sustainability and climate change, PepsiCo Segmentation, Targeting and Positioning (STP) Analysis.

This report is shared in order to give you an idea of what the complete Company Overview Report will cover after purchase. The PESTLE / STEEPL / PEST analysis report is a structure used to understand the impact of the current trends and key external factors like political, economic, social, technological, legal and environmental on the macro environment. Consistently strong financials and dividend payout, 1. Using big data analytics and machine learning capabilities, PepsiCo can streamline their R&D processes and launch more targeted, focused marketing campaigns across the entire gamut of digital media. This PESTEL/PESTLE analysis indicates that the company has many opportunities and a number of threats regarding its growth and international expansion. If other states start following the same trend, it would reduce Pepsis sales and revenue. PepsiCo must address the following political factors: Major economies like the United States and Canada are politically stable, thereby presenting growth opportunities for PepsiCo.

However, this external factor also presents the opportunity for the company to improve its products to address such concerns. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Today one of the worlds leading food and beverage company PepsiCo operates along with its accredited bottlers, contract manufacturers and other third parties to successfully sell a wide variety of convenient beverages, foods, and snacks to consumers from over 200 countries and territories globally. This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase.

The multinational food and beverage snacker has substantially outperformed competition, in total returns over the past five years. Keep it up! As we know that PepsiCo is a multinational brand and operating its business across the world. The PepsiCo teams have endeavored hard to produced foods and beverages with lean calories, reduced sodium and minimum saturated fat without compromising on great taste. As a company, PepsiCo is well placed to take advantage of the latest technological disruptions.

For instance, the government of Saudi Arabia and France has increased the taxes on sugar-containing beverages. Changing climatic conditions and an environment-conscious consumer base must inspire PepsiCo to adopt sustainable practices in all facets of its business and fulfill its corporate responsibility. She increased the tax rate on all the imports, exports, and trade with the Chinese made products.

Its good for the company. brands.

PepsiCo has the opportunity to reduce its use of GMO ingredients to satisfy these regulations. The link between technological change and companies remote/macro-environment is examined in this element of the PESTEL/PESTLE analysis. Itll be different for the UK and the EU depending on their taxes, trade policies, and other regulations. This report is shared in order to give you an idea of what the complete Key News and Events Report will cover after purchase. The company launched an advertising campaign in 2017 and Kendal Jenner was starring in it. It started in Barkley in 2015, Philadelphia in 2017, and then in Boulder Colorado, Seattle in Washington, Oakland, and San Francisco. In the wake of the pandemic, when the consumer demand shifted from unorganized segment to organized segment, PepsiCo India is foraying into the flat-cut and wafer-styled potato chips segment across the country. Pepsi should exploit the current trends and launch its online shopping platform. PepsiCo Inc witnesses double-digit fall in beverage sales in India due to coronavirus - https://www.deccanherald.com/business/business-news/pepsico-inc-witnesses-double-digit-fall-in-beverage-sales-in-india-due-to-coronavirus-860808.html. PepsiCo must develop strategies that enhance its abilities to withstand the external factors in its remote or macro-environment. Using solutions and tools such as Trifacta and Tableau, PepsiCo has significantly reduced end-to-end run time of analysis and reporting. The remaining section under "Strength" is available only in the 'Complete Report' on purchase. The government and health organizations have a soft corner for healthier products. Pepsi is a popular drink in the Indian and Chinese markets. PepsiCos product portfolio which is by and large divided under the following three categories 1. Based on this element of the PESTEL/PESTLE analysis, PepsiCo must align its products and marketing strategies to changes in consumer behaviors. This report is shared in order to give you an idea of what the complete Covid-19 Impact Analysis Report will cover after purchase. With high ASD, your ad post will be displayed across all our 2500+ pages.Grow your business with effective advertisement! On the other hand, climate change poses a threat to PepsiCos supply chain. Leveraging big data for optimization of supply chain: Consumer processed goods (CPG) companies such as PepsiCo need to ensure optimum functioning of their supply chain. Copyright 2022. Gillespie, A. Yuksel, I. Formed by the merger of two companies, namely the Pepsi-Cola Company l. The target demographic of Pepsi has always been young and it ranges from 15 to 44 ages of people. The following ecological external factors are significant to PepsiCo: Consumers are now pushing companies like PepsiCo to improve their sustainability standing. PepsiCo posted a strong performance beating targets for the year ending December 26, 2020 with revenue hitting $70,372 billion, a 5% increase year-over-year. They continue to innovate in this space with shifting consumer tastes and higher demand for more nutritious food and beverages. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. The marketers and the PR team should be sensitive to such issues that their advertisement shouldnt criticize any social group. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Murphey, M., & Gause, R. (1974). PepsiCo Five Forces Analysis (Porters Model), PepsiCos Vision Statement & Mission Statement Analysis, PepsiCos Generic and Intensive Growth Strategies, PepsiCos Organizational Culture Characteristics: An Analysis, PepsiCos Organizational Structure Analysis, PepsiCos Operations Management, 10 Decisions, Productivity, Wendys PESTEL/PESTLE Analysis & Recommendations, Burger King PESTEL/PESTLE Analysis & Recommendations, Harley-Davidson PESTEL/PESTLE Analysis & Recommendations, Home Depot PESTEL/PESTLE Analysis & Recommendations, Whole Foods Market PESTEL/PESTLE Analysis & Recommendations, Starbucks Coffee PESTEL/PESTLE Analysis & Recommendations, Ford Motor Company PESTEL/PESTLE Analysis, Nike Inc. PESTEL/PESTLE Analysis & Recommendations, Sony Corporations PESTEL/PESTLE Analysis & Recommendations, Microsoft Corporations PESTEL/PESTLE Analysis & Recommendations, PepsiCo Announces Strategic Investments to Drive Growth, Political stability in major economies (opportunity), Improved intergovernmental cooperation (opportunity), Government initiatives against carbonated drinks (threat), Economic stability of most major markets (opportunity), Rapid growth of developing economies (opportunity), Higher health consciousness (threat & opportunity), More discriminating attitudes about product quality (opportunity), Moderate R&D investments in the food and beverage industry (opportunity), Improving knowledge management systems (opportunity), Increasing automation in business (opportunity), High focus on business sustainability (opportunity), More complex expectations and standards on waste disposal (opportunity), Regulation on GMO ingredients (opportunity), Health and product safety regulations (opportunity), Moderate rate of regulatory change (opportunity), Product innovation to address concerns on quality and health effects.