“Delicious Delights”
The Healthy Snack You’ll Want to Eat
Business name: PepsiCo, Inc.
Address: 700 Anderson Hill
Purchase, NY 10577
Telephone: (800) 433-2652
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Table of
Contents
Table of Contents ………………………………………………………………………………………………. 2
Executive Summary ……………………………………………………………………………………………. 3
Company Description.……….. …………………………………………………………………………… 5
Strengths/ Weaknesses/ Opportunities………………………………………………………………….6-8
Context of Product………………………………………………………………………………………..8–9
Need for Product/ Target Market………………………………………………………………………..9-10
Pricing of New Product…………………………………………………………………………………… 10–11
Core Competencies……………………………………………………………………………………….12-13
Standards of Performance……………………………………………………………………………… 13-14
References ……………………………………………………………………………………………………..15-16
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Executive Summary
PepsiCo as a company has proven itself to be a dominant player in the food and beverage
industry. From its humble beginnings as only two separate companies to the parent company of
several well known brands around the world, such as Pepsi, Doritos, Fritos, Tropicana products and
Quaker Oats Instant Oatmeal, success has only started. PepsiCo under the direction of Indra Nooyi
has been very successful following its “Performance with a Purpose” initiative. This initiative has
allowed PepsiCo to not only take into consideration the individuals that buy their products but also
the environment they make their products in and the people that make the products they sell.
In a volatile and finicky market where consumers want variations in their snacks companies
such as PepsiCo & Frito Lay have great opportunity to gain competitive advantage over their
competitors. Right now the market is taking on a health food craze. Consumers want snacks that
are healthy for them and packed in proteins not sugars. Coming up with a healthy snack variation
and entering the health food industry is only a logical choice for PepsiCo & Frito Lay. With the
introduction of “Delicious Delights” into the market could mean millions of dollars in profit and a
significant share in the market and ensures that a delicious and affordable alternative to snacking is
available to consumers around the world.
The competition in the healthy food chip market is small, having only a few competitors to
contend with in the market. Competitors such as Hain Celestial Groups Sensible Portions Veggies
Straws and Terra Groups Vegetable Chips, it shouldn’t be hard to become noticed in the market.
These two competitors have shown increased revenue since the introduction of their products into
the market, so grabbing some of that revenue away from them and improving PepsiCo’s profit
shouldn’t be hard if done correctly and at the right price.
The financial projections of this product have yet to fully be determined at this time due to
the ups and downs of the market. The costs of start-up would be small due to the equipment needed
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to make this product are already available through Frito Lay. The only cost the company would
incur would be that of the development of the recipes to make the light backed vegetable or fruit
type chip, and the cost of the raw material inventory they would have to hold. Giving PepsiCo a
product that is in line with the company’s values and mission statement as well as giving the
company a product they can be proud of.
This product could bring PepsiCo a large amount of profits due to the market being on a
health craze right now, “Delicious Delights” is a healthy nutritious snack that not only adults will
love but parents would love to feed to their children.
“Delicious Delights”, the healthy snack you will want to eat.
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PepsiCo’s
Company Description
Mission statement:
As one of the largest food and beverage companies in the world, our mission is to provide
consumers around the world with delicious, affordable, convenient and complementary foods and
beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to evening
treats. We are committed to investing in our people, our company and the communities where we
operate to help position the company for long-term, sustainable growth (“Our Mission and Values |
PepsiCo.com,” n.d.). This mission says it all and allows the company to strive and be committed to
their industry and the world around them. The company envisions that if you make a product that
consumers are eager to buy and your employees are eager to sell, then you already have a
successful brand.
PepsiCo also prides itself on its three pillars of sustainability that form their “Performance
