SUBMITTED TO: DR.

ISHFAQ KHAN

UNETHICAL PRECTICES
OF PEPSI

Shamsher ali mirza

BB

Introduction:
Pepsi International is a world renowned brand. It is a very well organized
multinational company, which operates almost all over the world. They produce,
one of best carbonated drinks in the world. Pepsi is a symbol of hygiene, quality and
service, all over the world. Pepsi is producing Cola for more than 100 years and it
has dominated the world market for a long time. Its head office is in New York
Pepsi Cola Pakistan
The market in Pakistan is surely dominated by Pepsi. It has proven itself to be
the No.1 soft drink in Pakistan. Now days Pepsi is recognized as Pakistanis National
drink.In 1971, first plant of Pepsi was constructed in Multan, and from there after
Pepsi is going higher and higher. Pepsi is the choice soft drink of every one. It is
consumed by allege groups because of its distinctive taste. Compared with other
Cola in the market, it is a bit sweeter and it contribute
S greatly to its liking by all. Consumers survey results
Explain the same outcome and Pepsi has been declared as the most wanted soft
drink of Pakistan

Business Environment:
Environmental Sustainability means finding innovative ways to cut costs and
minimize our impact on the environment through energy and water conservation as
well as reduced use of packaging material.

Situational Analysis:
Strength
1. One of the most popular and globally recognized brands in foods and
beverages
2. One of the most diversified product portfolio
3. Popular subsidiary brands like Frito Lay, Gatorade, Pepsi, Quaker,
Tropicana, and Yum! Brands, etc.
4. Global reach with presence in over 200 countries
5.An employee strength of around 300,000 people
6. CSR through PepsiCo Foundation, which works in the sector of
education, health, water conservation, education etc.

7. Pepsi Refresh Project that funds new ideas or ventures that have the
potential to benefit the society

Weakness
1. Strong competition in the aerated drinks segment from Coca Cola
means high brand switching
2. Cases against products have been blown out of proportion, thereby
affecting brand image

Opportunity
1. Increase penetration into developing countries and capture their
market
2. Increase its product portfolio by acquisition of other brands
3. To expand the Yum! Brands eatery in untapped countries and regions
like tier 2 cities
4. To improve its brand image by involving in more CSR activities to
benefit the locals

Threats
1. Health consciousness amongst people can take a toll on its aerated
drinks and snacks food markets
2. Compliance with different government regulations and norms in
different countries
3. Inflation, economic slowdown and instability causes decline in the
purchasing power of consumers
4. Strong competition from other brands in each segment of its operation

Ethical Conduct:
All PepsiCo employees are expected to embrace the principles of our
Code and:

show respect in the workplace;

act with integrity in the marketplace;
ensure ethics in our business activities; and
Perform work responsibly for our shareholders.

Unethical Conduct:
Hi Tavares, this is not the first time Pepsi Company is associated with
unethical behavior. I can recall in year 2007 Pepsi was involved with false
advertising. Pepsi was selling its Aquafina brand of bottled water under
the assumption that Aquafina is sourced from mountain spring water.
Although the bottle itself did not have the words spring water, Pepsi
used a great marketing gimmick to deceive consumers. Aquafina brand
was sold in a bottle with a clean, blue label showing images of snowcapped mountains and the claim, "Pure water, perfect taste". That's the
image created by PepsiCos Aquafina brand of water, and many consumers
leaped to the incorrect conclusion that Aquafina is sourced from mountain
spring water. In reality, Aquafina comes from tap water, the same water
we get when we turn on our kitchen faucet. Of course, Aquafina is filtered,
purified and perhaps even enhanced with trace amounts of added
minerals, but it's certainly not mountain spring water, it's just processed
tap water, nothing more. PepsiCo only agreed to the truth on their bottled
water labels after being pressured by Corporate Accountability
International (CAI), a non-profit organization that helps protect consumers
from corporate abuse. PepsiCo bottled water issue brought to light the
apparent deceptive practices of some of the largest suppliers of bottled
water products. By avoiding the honest labeling of the source of their
water while relying on snow-capped mountain imagery, these companies
quietly mislead consumers into thinking their water products were from a
pristine, natural source such as a mountain spring. Corporate
Accountability International rallied consumers from around the world to
complain to PepsiCo about their labeling of Aquafina, and thousands of
consumers slammed PepsiCo's phone lines so hard that the company was
forced to shut down call center operations. Pepsi executives reportedly
held an emergency meeting and made a decision to add the phrase,
"Public...

Conclusion:
Pepsi is a well renowned company and it has maintained its position well
by understanding the client psychology, by ensuring quality, by
introducing ingenuity
in products, by enlarging its product base, by keeping economic factors in
view and by intense and jazzy advertisements. Whenever and where ever

there is a spotlight event, Pepsi must figure in, like the one day
international cricket matches between India and Pakistan many other such
Occasions. The key word for success in the Marketing World is to remain
in the spotlight and that is what Pepsi is doing.

Recommendations:
The first recommendation that I would make to PepsiCo is that they should
focus more on creating products that can be considered healthy
alternatives to their customers. People these days are looking for ways to
eat better and stay healthy, and PepsiCo has barely tapped into that
market potential. PepsiCo can go about this in two ways: 1. creating new
brands that provide healthy snacks or beverages, and 2. making their
existing products more healthy. Overall, this focus will give PepsiCo an
edge in an environment where unhealthy snacks and beverages are
starting to become less and less profitable every day.