PCPPI company profile and SWOT analysis.

1. SWOT ANALYSIS
GROUP 3 – ACN3

2. Company Profile

4. • John Clarkin, a native
of Minnesota, USA who
came with the
American forces at the
close of World War II,
brought Pepsi-Cola to
the Philippines.
• He became president
and general manager
of Pepsi-Cola Bottling
Company of the
Philippine Islands Ltd.
upon acquiring a
franchise to bottle
Pepsi in the Philippines
on October 16, 1946.

5. Mission and Vision
We are the beverage company of
choice - preferred by consumers,
trade partners, investors and
employees of the Philippines. As
such, we continuously delight them
by offering quality beverages at best
value, for every drinking occasion.

6. We are a happy team in our
workplace as we build a
sustainable and profitable
business, providing healthy
financial rewards to our
shareholders and opportunities
for growth and enrichment to our
business partners, employees and
the communities where we
operate.

7. Culture and Values
A PCPPI employee has the Passion
to succeed, Excels in what he
does, Professional in all his
dealings, prioritizes Service, and
treasures his Integrity and that of
the Company.

8. Structure President
Executive Vice President for National Sales
Operations
Executive Vice President & Chief Strategy Officer
Chief Executive Officer
Senior Vice President & Chief Financial Officer
Director
Senior Vice President for Manufacturing and Logistics
Director
Senior Vice President for Human Resources, Employee
Director and Industrial Relations, Communications and Legal
Director
Senior Vice President and Senior General Manager for
Central Luzon Operations, North Luzon Operations,
Director Cagayan Valley Operations and Pepsi University
Director
Vice President & Senior GM for Metro Sales
Operations, Southern Tagalog Regional Office, Naga
Plant
Vice President & Senior General Manager for
Mindanao
Vice President & Senior General Manager for Visayas

9. PCPPI has a divisional structure
model headed by their Chairman of
the Board and CEO Hwang Chung
and Partha Chakrabarti as President.
This divisional structure is
appropriate to PCPPI management
to find some synergy among
divisional activities through the use
of committees and horizontal
linkages.

10. Resources
PCPPI takes pride in the
establishment of support systems
and processes to ensure the
development of its employees
through learning and skills
trainings facilitated by qualified
and competent teachers and
professionals.

11. • March 25, 2005
• Provide continuing
education to PCPPI
Employees focusing
on the key function
areas of MAKE-SELL-
DELIVER
• Enhance basic day-to-
day capability of front-
line Employees,
especially Sales
Employees

12. • Enhance managerial and
leadership abilities of managers
and employees with potential
• Instill Company values and
Culture in all Employees
• Maintain a pool of certified
educators, mentors and trainers
from PCPPI, PI and recognized
educational establishments and
learning centers.

14. Strategies
Pepsi-Cola Products Philippines, Inc. strong
performance was driven by the successful
implementation of their strategic moves
which include effectively preserving and
defending their market share in carbonated
soft drinks lines – cola and non-cola and
aggressively tapping the bright growth
prospects of the non-carbonated beverages
product lines, using the fast expanding health
and wealth sector as their growth factor.

15. Source: AC Nielsen as cited by 2TradeAsia,
January 2008
According to an industry report, Coca Cola Bottlers
Philippines Inc. controls about 48.4% of the market
for carbonated soft drinks in the country, followed by
Cosmos Bottlers Corporation with 23.3%, PCPPI with
17.4%, and the remaining 10.9% is shared by the other
small players.

17. Large market share
Acquisitions and alliances
Customer loyalty
STRENGTHS
Purchasing economies of scale
Worldwide brand recognition
Huge distribution network
Strong market position
Strong brand portfolio
Strong growth in revenues and
profits

18. Business concentration
WEAKNESSES
Smaller market share than
Coca-cola
Inability to substantially
product differentiate
Hard to compete with
Coca-cola – strong brand
identity and customer loyalty

19. Growing bottled water market
Establishing of new branches
OPPORTUNITIES
in the country
Promoting a cleaner
environment
Reducing costs for the
company
Generating income for farmers
Growing population in the
Philippines
Adapting to market trend

20. Sluggish growth of
carbonated
beverages
T H R E AT S
High oil prices
High level of competition
with main rival, Pepsi will lose
market share if rivals adapt to
market trends faster

21. Strengths
• can be described as among the
leading company worldwide
• the company holds large market
share and has allied with South
Korea’s number one beverage
company, the Lotte Chilsung
Beverage Corporation
• continuous customer loyalty and
strong brand portfolio
• PCPPI continues to increase their
distribution network and market
location.

22. Weakness
• the company cannot claim of
being in the top most of the
beverage company due to their
rival Coca-Cola
• Coca-Cola has greater market
share worldwide and also has a
strong brand identity and same
customer loyalty to its market

23. Opportunities
• plant expansion in different locations of
the country
• reducing cost can also be expected thru
some ways such as building Biomass
Facilities for Renewable Energy
• with the growing population, the
company may also be able to extend to
other products such as Bottled Water
and sees opportunities of making health
drinks and be an advantage for them to
be a socially responsible producer.

24. Threats
• there might be a decline or slow
increase of demands for carbonated
beverages
• continuous oil price hike, this entails
an increase in shipping and handling
cost.
• if the company will not grab the
present opportunities their rivals
might be far ahead to them and
probably will gain more market
share

25. Alternative Courses of Action
• Pepsi should focus on increasing sales
nationally to compete effectively with
Coke. They have been beaten badly in some
markets, and need to focus more on “un-
tapped” areas
• Continue to diversify their beverage
selection through acquisitions.
• combat the decreased interest in cola
• a need to ensure that they can
properly manage all of these acquired
companies and should divest those that
show limited potential

26. Alternative Courses of Action
• Develop Imaginative and trendy
advertising.
• Make socially aware campaigns.
• Capitalize on their aggressive
corporate culture in overseas
dealings.
• To combat the weakness of their
current international strategies

27. Recommendation
Based on the research, the best
recommendation is to continue
addressing the opportunities and
risks of the global marketplace and
concentrate the resources on
growing the business, both through
internal growth and carefully
selected acquisitions.

28. Implementation Plan
Prioritize having aggressive promotion
on the market.
to obtain more target customers
and distribution networks
develop the advertisements and
making it trendier can be a better
start
Conduct a study whether having a
Renewable Source of energy will help
the company in reducing cost.

29. Implementation Plan
Create a feasibility study if making new
product lines can be profitable for the
company.
Focus on how to maximize sales and
reduce cost.
Locate more strategic location for
distribution.

30. Evaluation and Control
• Conduct a market research whether
there is a change in brand
patronization of the market.
• The finance department should
interpret the financial statements of
the company if there is probable
increase in profit due to different
factors (reduce in cost or increase in
sales).

31. Evaluation and Control
Evaluation and Control
• Each of the location supervisor must
observe diligent and accurate reports
of their distribution network.
• Make sure that making new product
line can be accepted by the market.
• Developing better product and
packaging.

32. Conclusion
The researchers conclude that the Pepsi-Cola
Products Philippines Inc. performs a great job in
manufacturing, selling and distributing their
products. Although at present, they still cannot
out overpower their number one rival, Coca-
Cola Co., they foresee in the future that their
goal to beat them will be possible. Confident of
having greater investments from foreign big
investors, the company may be able to increase
its production and engaged in other types of
products.

33. Conclusion
Furthermore, the researchers conclude
that there are lots of opportunities
coming for the company. If the company
will focus more on taking actions to use
this opportunities, probably the company
will have more solutions than having
problems.

34. Conclusion
Lastly, knowing the internal and external
environment of the company, the
researchers have assessed those factors
in which the company should focus more
and those which they should attend to as
soon as possible. Having a systematic
evaluation and controlling will give the
company their vision of being in the top
among the beverage companies not just
nationally but also worldwide.

35. Thank You!