Pepsi Value chain analysis

00:00 welcome to notes Matic your favorite

00:02 marketing and business management blog

00:04 today we are going to talk about PepsiCo

00:07 Pepsi is one of the leading soda brands

00:09 in the archrival of Coca Cola we are

00:12 going to present the value chain of

00:14 Pepsi in this video Pepsi is one of the

00:17 two leading brands in the soda industry

00:19 with a global presence and strong global

00:21 sales and distribution network

00:23 apart from being a highly competitive

00:25 brand of non-alcoholic beverages and

00:27 snacks Pepsi is also the strongest rival

00:30 of Coca Cola the company has managed its

00:33 global distribution network with the

00:34 support of distributors and retailers in

00:37 recent years the brand has also expanded

00:39 its product portfolio to include more

00:41 health friendly and snack products while

00:45 the soda industry has grown highly

00:47 competitive sustaining growth now

00:49 requires a consistent focus on product

00:51 quality marketing as well as customer

00:53 engagement however Pepsi has kept

00:56 investing in digital marketing to grow

00:57 customer engagement and retain its

00:59 competitive advantage amidst heavy

01:01 competition from Coca Cola and other

01:03 brands one of the leading factors that

01:06 have supported the growth and success of

01:08 PepsiCo worldwide is its supply chain

01:10 the company has optimized its value

01:13 chain to achieve the best results in

01:14 cater to customer demand with higher

01:16 efficiency Michael E Porter of the

01:19 Harvard Business School introduced the

01:21 concept of the value chain this model

01:24 includes the entire range of activities

01:26 from the procurement of raw material to

01:28 the production marketing sales and after

01:30 sales service each of these stages adds

01:33 value to the final product analyzing the

01:36 value chain and optimizing it helps

01:38 achieve superior results through the

01:40 optimization of their value chains

01:42 companies can increase their operational

01:44 efficiency as well as build new sources

01:45 of competitive advantage the value chain

01:48 includes two kinds of activities primary

01:51 activities and support activities

01:54 primary activities the primary

01:56 activities in Porter's value chain are

01:58 concerned directly with the creation of

02:00 products or services inbound logistics

02:02 inbound logistics refers to the inward

02:05 flow of goods into business which

02:07 includes transport storage and delivery

02:09 pepsi has a global supply chain and its

02:12 sources raw materials from several

02:14 nations around the world the company

02:16 works with thousands of suppliers around

02:18 the world to source raw material and

02:20 primarily agricultural raw material the

02:23 company has established a strong supply

02:25 chain and distribution network the

02:27 integrated logistics function of the

02:29 company plays a key role in the smooth

02:30 operation of inbound logistics and to

02:32 ensure that raw materials flow into the

02:34 system seamlessly in recent years

02:38 PepsiCo has made a lot of investment

02:40 into its existing fleet to make it more

02:41 efficient modernized and

02:43 environment-friendly the company has

02:45 established warehouses at key locations

02:47 worldwide and in close proximity to its

02:49 supplies to reduce transportation and

02:51 logistics related expenses Pepsi also

02:55 uses advanced software for inventory

02:57 management and to manage logistics

02:59 PepsiCo has divided its global

03:02 operations into six areas or

03:03 geographical divisions which include

03:05 frito-lay North America FL na PepsiCo's

03:09 branded food and snack businesses in the

03:11 United States and Canada Quaker Foods

03:14 North America QF na PepsiCo cereal rice

03:17 pasta and other branded food businesses

03:19 in the United States in Canada North

03:22 America beverages now PepsiCo's beverage

03:24 businesses in the United States in

03:26 Canada Latin America PepsiCo's beverage

03:29 food and snack businesses in Latin

03:31 America Europe sub-saharan Africa essa

03:34 PepsiCo's beverage food and snack

03:36 businesses in Europe and sub-saharan

03:38 Africa and Asia Middle East and North

03:41 Africa AM ena PepsiCo's beverage food

03:44 and snack businesses in Asia Middle East

03:46 in North Africa the company has also

03:49 established a large network of offices

03:51 distribution centers warehouses plants

03:53 and other facilities

03:56 outbound logistics concerns the outward

03:58 flow of goods from inside the

04:00 organization or simply put the

04:01 distribution and sales network of a

04:03 company outbound logistics plays a major

04:06 role in the value chain of a company and

04:08 is a critical link whose efficiency

04:09 ensures operational effectiveness and

04:11 business success Pepsi has maintained a

04:15 strong international presence through

04:17 its multi-channel distribution network

04:19 the company brings its products to the

04:21 market to its customers through a mix of

04:23 various sales and distribution channels

04:25 Pepsi primarily uses direct store

04:28 delivery DSD customer warehouse and

04:30 distributor networks to bring its

04:32 products to the market however the kind

04:35 of channel used depends on the needs of

04:37 the customers characteristics of the

04:38 product as well as the local trade

04:40 practices PepsiCo operates the direct

04:44 store delivery systems with the help of

04:46 its bottlers and distributors the DSD

04:48 systems deliver beverages foods and

04:51 snacks to the retail stores where they

04:52 are merchandise by PepsiCo employees or

04:55 the independent bottlers of the company

04:57 the DSD system allows PepsiCo to

04:59 merchandise its products with high

05:01 visibility and appeal which is

05:03 profitable for the company this system

05:05 is most suited for the distribution of

05:07 the products that are restocked more

05:08 often some of the Pepsi products are

05:12 delivered from its manufacturing plants

05:13 and warehouses to the customer

05:15 warehouses the less fragile and

05:17 perishable products with lower turnover

05:19 are mainly distributed through this

05:21 channel PepsiCo also utilizes

05:24 third-party distributors for the

05:26 distribution of several of its products

05:27 the company uses them when it has to

05:30 distribute a large range of products and

05:32 include them on the same delivery

05:33 vehicle the foodservice and vending

05:36 businesses of Pepsi use third-party

05:37 distributors and operators to distribute

05:40 beverages food and snacks to restaurants

05:42 businesses schools and stadiums

05:45 Pepsi is excellent in terms of marketing

05:48 and it is one of the key focus areas in

05:50 its value chain since the company is a

05:52 part of a highly competitive industry

05:53 where marketing is essential to maintain

05:56 demand and sales coca-cola is the

05:58 biggest rival of Pepsi and to maintain

06:00 its competitive position the company

06:02 makes a large investment in advertising

06:04 and promotions each year apart from

06:07 digital channels of promotions including

06:09 social media the company also uses

06:12 outdoor promotions to advertise its

06:13 products and for customer engagement

06:15 video marketing has also played a key

06:18 role in growing the popularity of Pepsi

06:20 brands and products throughout the world

06:23 Pepsi offers a large and diversified

06:25 range of beverages snacks and food

06:27 products the product portfolio of Pepsi

06:30 includes beverages low calories

06:32 beverages as well as a large range of

06:34 healthy snacks and food products a

06:36 highly diversified product portfolio has

06:39 also helped the company find faster

06:41 growth in terms of overall sales and

06:43 revenue thanks for watching

06:46 learn more about Pepsi's value chain

06:48 including support activities by visiting

06:50 the link in the description subscribe to

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