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PR Report

Group 5 SYBBA- ‘B’

Company: PepsiCo

Name Roll No.

Sarthak Bajaj B-005

Siddhartha Gupta B-015

Zoya Kazi B-025

Rohan Negi B-035

Jaineel Shah B-045

Keshav Viswanath B-055

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Table of Content:

Sr.No Topic By: Page

No. 1. Introduction

Keshav Viswanath 3

2. Events/Sponsorship/Promotions

Siddhartha Gupta 6

3. Corporate Citizenship

Jaineel Shah 9

4. CSR Activities

Sarthak Bajaj 13

5. Crisis/Emergencies

Rohan Negi 17

6. PR Agent/PRO

Zoya Kazi 20

7. Social Audit

23

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Introduction

Keshav Viswanath B-055

Background

Pepsi is a carbonated soft drink that is produced and manufactured by PepsiCo. Created and

developed in 1893 and introduced as Brad's Drink, it was renamed as Pepsi-Cola on August

28, 1898, and then to Pepsi in1961.During the typical hot and humid summer of 1898 in New

Bern, North Carolina, a young pharmacist named Caleb Bradham began experimenting with

combinations of spices, juices and syrups to create a refreshing new drink to serve his

customers.

He advertised his new soft drink. People responded, and sales of Pepsi-Cola started to grow,

convincing him that he should form a company to market the new beverage.

At first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon

Caleb recognized that a greater opportunity existed to bottle Pepsi so that people could drink

it anywhere. The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially

registered with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the

theme line "Exhilarating, Invigorating, Aids Digestion."

He also began awarding franchises to bottle Pepsi to independent investors, whose number

grew from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the

following year, and 40 by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24

states.

Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in the

back room of Caleb's pharmacy. Building a strong franchise system was one of Caleb's

greatest achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to

the product's success, provided a sturdy foundation. They were the cornerstone of the Pepsi-

Cola enterprise. By 1907, the new company was selling more than 100,000 gallons of syrup

per year.

Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the

town of New Bern pictured it on a postcard. Famous racing car driver Barney Oldfield

endorsed Pepsi in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer

before a race."

The previous year, Pepsi had been one of the first companies in the United States to switch

from horse-drawn transport to motor vehicles, and Caleb's business expertise captured

widespread attention. He was even mentioned as a possible candidate for Governor. A 1913

editorial in the Greensboro Patriot praised him for his "keen and energetic business sense."

Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with the

slogan, "Drink Pepsi-Cola. It will satisfy you."

Then came World War I, and the cost of doing business increased drastically. By 1921, only

two plants remained open. After five owners and 15 unprofitable years, Pepsi-Cola was once

again a thriving national brand.

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Pepsi through the 20th

century

1902-"Pepsi-Cola" was officially registered with the U.S. Patent Office.

1903-Bradham's advertising praises his drink as "Exhilarating, invigorating, aids digestion."

1905- A new logo appears, the first change from the original created in 1898.

1909- Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity endorser

when he appears in newspaper ads describing Pepsi-Cola as "A bully drink...refreshing,

invigorating, a fine bracer before a race."

1920- Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."

1939- A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a

Nickel" to increase consumer awareness of Pepsi's value advantage.

1940- Pepsi makes advertising history with the first advertising jingle ever broadcast

nationwide. "Nickel, Nickel". Eventually became a hit record and was translated into 55

languages. A new, more modern logo is adopted.

1943- The "Twice as Much" advertising strategy expands to include the theme, "Bigger

Drink, Better Taste."

1953- Americans become more weight conscious, and a new strategy based on Pepsi's lower

caloric content is implemented with "The Light Refreshment" campaign, which later evolves

to incorporate "Refreshing Without Filling."

1961- Pepsi further refines its target audience, recognizing the increasing importance of the

younger, post-war generation. "Now it's Pepsi, for Those who think Young" defines youth as

a state of mind as much as a chronological age, maintaining the brand's appeal to all market

segments.

1963-The post-war baby boom emerges as a social and marketplace phenomenon. Pepsi

recognizes the change, and positions Pepsi as the brand belonging to the new generation-The

Pepsi Generation. "Come alive! You're in the Pepsi Generation" makes advertising history. It

is the first time a product is identified, not so much by its attributes, as by its consumers'

lifestyles and attitudes.

1964- A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.

1969- "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation

advertising strategy. Youth and lifestyle are still the campaign's driving forces, but with

"Live/Give".

1976-"Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving national

mood.

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1983- The soft drink market grows more competitive, but for Pepsi drinkers, the battle is

won. The time is right and so is their soft drink. It's got to be "Pepsi Now!"

1984- "Pepsi. The Choice of a New Generation" announces Michael Jackson, in the first two

commercials of the new campaign. The two spots quickly become "the most eagerly awaited

advertising of all time."

1987- After an absence of 27 years, Pepsi returns to Times Square, New York, with a

spectacular 850-square foot electronic display billboard declaring Pepsi to be "America's

Choice".

1989- "The Choice of a New Generation" theme expands to categorize Pepsi users as "A

Generation Ahead!"

1995- In a new campaign, the company declares "Nothing else is a Pepsi" and takes top

honors in the year's national advertising championship.

1998–1999: "It’s the cola" (100th anniversary commercial)

The New Age

2002- "Change the World" (Japan)

2009–present- "Yeh hai youngistaan meri jaan"

2011–present- "Change the game" (India, Bangladesh & Pakistan for the 2011 Cricket World

Cup)

2012- "Change The Game"

2013- "Oh Yes Abhi" (India)

As of January 2012, 22 of PepsiCo's product lines generated retail sales of more than

$1 billion each, and the company's products were distributed across more than 200 countries,

resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second

largest food & beverage business in the world. Within North America, PepsiCo is ranked (by

net revenue) as the largest food and beverage business.

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Events/Sponsorship/Promotions

Siddhartha Gupta B-015

Promotion: Pepsi Stuff

Pepsi Stuff was a major loyalty program launched by PepsiCo, first in North America on

March 28, 1996 and then around the world, featuring premiums — such as T-shirts, hats,

denim and leather jackets, bags and mountain bikes — that could be purchased with Pepsi

Points through the Pepsi Stuff Catalog or online. Customers could acquire points from

specially marked Pepsi packages and fountain cups. Additional points were sold both by

Pepsi and by consumers, the latter mainly enabled by eBay. The Pepsi Stuff promotion ended

December 31, 2008.

Points were distributed on 4 billion packages and billions of cups and millions of consumers

participated. Pepsi Stuff continued to run throughout North America due to consumer and

bottler demand, and was eventually expanded to include Mountain Dew and other drinks, and

into many international markets.

Pepsi Stuff was one of the first major consumer promotions to feature a dedicated interactive

Web site. Celebrities like Andre Agassi, David Beckham, Beyoncé, Britney Spears, and the

Spice Girls appeared in TV, print, and Internet advertising promoting Pepsi Stuff. PepsiCo

produced over 200 million catalogs each year, billions of Pepsi points, and an extensive line

of free merchandise. This increased Pepsi’s sales significantly prompting people to purchase

Pepsi in order to get free merchandise. This was a very effective promotional campaign soon

to be emulated by other companies.

Different products had codes worth different point values; single bottles generally had one

point while can 12-packs had two and 24-packs had four. Codes from Pepsi NFL Kickoff 12-

packs were worth four points. Items available for redemption through the promotion ranged

in value from 5 points (MP3 song download) to 175 points (Vintage Pepsi logo hoodie

sweatshirt). Customers could also redeem points for entry in various sweepstakes.

.

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Event: World Water Week

World Water Week, 2012-Pepsi received Industry Water award.( PepsiCo was recognized for

the unparalleled steps it has taken to conserve water across its business operations and

agricultural supply chain)

Entering its twenty-second year, World Water Week in Stockholm attracts global

representation from public, private and intergovernmental organizations that work to identify

responses and potential solutions to changes impacting water and food security. Hosted by

the Stockholm International Water Institute (SIWI), the event is the leading global focal point

of water sustainability dialogue and exchange - creating a forum for advanced partnerships

and ideas. PepsiCo is excited to participate in World Water Week as a Gold sponsor and

laureate of the prestigious Industry Water Award.

Aligned with the theme of World Water in 2012, Water and Food Security, PepsiCo is

applying a model of 'doing more, using less' to the entire food chain from growing

ingredients with 'more crop per drop' of water, to manufacturing with less waste, energy and

water use. Ultimately, we are striving for optimum productivity while operating as efficiently

as possible in a resource constrained world.

In addition to sponsoring World Water Week in 2012 and receiving the 2012 Industry Water

Award, PepsiCo will host and participate in several events on subjects include water and

energy efficiency, farm verification programs, and food security. PepsiCo will also

participate in dialogues during the Opening Plenary Session, Founders Business Seminar and

workshop on Governance for Water and Food Security among other program events.

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Sponsorship: IPL

PepsiCo won the rights to be title sponsor of the Indian Premier League for five

seasons, commencing 2013.

The winning bid was for Rs 396.8 crores, followed by Airtel’s offer for Rs 315 crores.

“IPL will be called Pepsi IPL for the next five years. The winning bid is almost

double than what earlier sponsor was giving. DLF were giving 40 crores per year.

Pepsi will be giving 79 crores per year on an average.” Deepika Warrier, Pepsi Foods

marketing head, said: “We are delighted on getting the sponsorship rights to IPL. The

event is the crowning glory of cricket in India. Pepsi has got a very long association

with cricket for 20 years. We have always been game changers when it comes to the

sport.”

The PepsiCo spokesperson, when asked whether the sponsor overvalued the IPL, said:

“We really believe in this property and feel this is a big brand that the BCCI has been

able to build. It’s a brand that rivals sporting brands across the world. I think it’s an

absolutely game changing format.”

She added: “The kind of viewership that the IPL gets in India and across the world is of great

interest to us. The format is very entertaining and all the major international players want to

play in it. The format is going to get better and we are going to take it deeper, reach out more

and take it to schools.” The IPL is being telecast in over 192 countries, informed Shukla.

With this wide reach offered by IPL, Pepsi can surpass their closest competitor Coke.

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Corporate Citizenship

Jaineel Shah B-045

PepsiCo has made a promise to deliver sustainable growth by investing in a healthier

future for our consumers, our associates, our communities & our planet. We deliver on

this promise by striving to meet the goals & commitments we’ve made in four key areas:

Performance, Human Sustainability, and Environment Sustainability & Talent

Sustainability.

1. Environment Sustainability:

PepsiCo’s Global Commitments & India’s Progress:-

i. Water:

Respect the human right to water through world-class efficiency in our operations,

preserving water resources and enabling access to safe water.

ii. Climate Change:

Reduce the carbon footprint of our operations.

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iii. Land & Packaging:

Rethink the way we grow, source, create, package & deliver our products to minimize

our impact on land.

iv. Community:

Respect and responsibly use natural resources in our businesses & in the local

communities we serve.

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2. Human Sustainability

As an industry leader in the food and beverage business, we have a responsibility to

help deliver healthy, nutritious and tasty products to our consumers. We are doing this

by enhancing our product portfolio to deliver products that offer improver nutritional

and functional benefits. Our brands, which include Quaker Oats, Tropicana, Gatorade,

Frito-Lay and Pepsi, are household names that stand for superior quality and great

taste throughout the world. We have committed to reduce the average amount of

added sugar, sodium and saturated fats per serving in key global brands in key

countries, while increasing the amount of whole grains, fruits, vegetables, nuts, seeds

and low-fat dairy in our global product portfolio. Today, our portfolio includes several

healthier options and some hydrating and nourishing products. We are also committed

to responsible marketing and nutrition labelling to improve nutrition education and we

support programmes that promote physical activity and a healthier lifestyle.

Following are the goals which we wish to accomplish in the near future:

i. Increase the amount of whole grains, fruits, vegetables, nuts, seeds and low-fat

dairy in our global product portfolio.

ii. By 2015, reduce the average amount of sodium per serving in key global food

brands, in key countries by 25% compared to a 2006 baseline.

iii. Reduce the average amount of saturated fat per serving in key global food

brands, in key countries, by 15% by 2020, compared to a 2006 baseline.

iv. Display calorie count and key nutrients on our food and beverage packaging by

2012(accomplished).

v. Advertise to children under 12 only products that meet our global science-based

nutrition standards.

vi. Invest in our business and research and development to expand our offerings of

more affordable nutritionally relevant products for undeserved and lower-

income communities.

vii. Expand PepsiCo Foundation and Pepsi Corporate contribution initiatives to

promote healthier communities, including enhancing diet and physical activity

programs.

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3. Talent Sustainability

Our commitment to talent sustainability means we’re continually working to identify,

develop and retain exceptional people. Our people are our greatest strength. They are the

ambassadors of our culture and living examples of our values and commitment to deliver

‘Performance with Purpose’. Our ability to grow year after year is driven by our ability to

attract, develop and retain world-class people.

Our talent sustainability promise is to invest in our associates to help them succeed and

develop the skills needed to drive the company’s growth, while creating employment

opportunities in the communities we serve. We owe our success to the work of our people in

India, who drive our business by nourishing and delighting our Indian consumers’ every day.

We believe in nurturing and inspiring our employees by giving them opportunities to further

develop their skills through focused training and learning interventions.

We promote a safe, caring and supportive working environment. Our Talent Sustainability

commitments help guide our strategy and initiatives to develop our associates and contribute

to better living standards in our communities.

Following are the measures undertaken by PepsiCo:

i. Ensure high level of associate engagement and satisfaction as compared with other

Fortune 500 companies.

‘One Simple Thing’ (OST) – it is a special initiative to support work-life

balance launched in 2010. This initiative provides an opportunity for

employees to discuss with their manager and implement solutions that help

improve work-life balance.

ii. Foster diversity and inclusion by developing a workforce that reflects local

communities.

A national safety audit for women was conducted in 2010. The women’s help

line ‘Sakhi’ was rolled out to all female employees and safety cards were

provided.

iii. Encourage our associates to lead healthier lives by offering workplace wellness

programmes globally.

We continue to introduce new and innovative programmes under our

employee wellness programme. In 2010, we introduced 2 new programmes

which covered 1600+ associates.

iv. Ensure a safe workplace by continuing to reduce lost time injury rates, while striving

to improve other occupational health and safety metrics through best practices.

v. Support ethical and legal compliance through annual training in our Code of Conduct,

which outlines PepsiCo’s unwavering commitment to its human rights policy to treat

every associate with dignity and respect.

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Core CSR Activities – PepsiCo

Sarthak Bajaj B-005

Pepsi’s CSR Activities are divided into 4 parts.

1. Replenishing Water

Conserving the world's most precious asset: Water

PepsiCo India has pioneered several major initiatives to replenish water in communities. Our

goal is to conserve, replenish and thus offset the water used in our manufacturing process

through community water recharge projects and water conservation projects in agriculture.

2009 was a year of immense joy & pride for PepsiCo India. We were able to give back more

water than we consumed, through our various initiatives of recharging, replenishing &

reusing water.

2. PepsiCo Solid Waste Management Programme

PepsiCo India continues to strengthen its Solid Waste Management initiatives in partnership

with Exnora, an environmental NGO. This award winning, income generating partnership

provides a clean environment to more than 450000 people across Pammal, Chennai,

Nagapattinam, Tenkasi and Cuddalore in Tamil Nadu, Sangareddy in Andhra Pradesh and

Panipat, Haryana.

Awards

The unique PepsiCo-Exnora initiative in Pammal was awarded the environmental

Golden Peacock Award for Innovation in 2006.

Zero Solid Waste Centre in Pammal was recognized as a model project by UNICEF in

2007.

PepsiCo- Exnora Waste to Wealth program won the BSE NASSCOM Social and

Corporate Governance Award 2008.

Unique income generating partnership with leading

environmental NGO, Exnora, a pioneer in waste

management.

Community members enjoy the benefits of a clean

environment and are educated on how to recycle waste,

not just relocate it.

Households segregate their bio-degradable waste from

their recyclable waste. Bio-degradable waste is then

converted into organic manure through the process of

vermi-culture.

Recyclable waste such as PET and plastics, waste paper and tetra packs are recycled.

Community awareness programme includes door-to-door campaigns and street plays to

motivate people to segregate organic and inorganic garbage at source to enable recycling.

Every aspect of programme built around Community and Government participation to

help programme evolve into a self sustaining model

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3. Partnership with Farmers

PepsiCo India continues to strengthen its partnerships with farmers across the country to

boost their productivity and income. The plan is to strengthen farmer connect from 21,000 in

2009 to 50,000 by 2012.

Helping farmers improve yield and income

The company's vision is to create a cost-effective, localized agro supply chain for its business

by:

Strengthening farmer connect from 21,000 in 2009 to 50,000 by 2012.

Building PepsiCo's stature as a development partner by helping farmer grow more and

earn more.

Introduction of new high yielding varieties of Potato, Oats, Citrus and others.

Introduction of sustainable farming methods and contract farming.

Making world class agricultural practices available to farmers.

Working closely with farmers and state governments to improve agri sustainability,

crop diversification and enhance farmer incomes.

Helping farmers refine their farming techniques and raise farm productivity.

Customized solutions to suit specific geographies and locations.

Facilitate financial and insurance services so as to de-risk farming.

a) High Quality Seed Program

In order to provide its farmers "The best quality potato seeds", PepsiCo collaborated with the

Thapar Institute of Technology to develop quality potato mini-tubers.

PepsiCo has also made an investment in a world class potato mini-tuber facility at Zahura in

Punjab which helps getting robust and disease-free seeds to its contract farmers.

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b) Contract Farming

Partner In Progress Model

PepsiCo has pioneered the concept of contract farming under which the company transfers

agricultural best practices and technology and procures the produce at a pre-agreed price.

A 27-acre research and demonstration farm was set up in Punjab to support the

initiative to conduct farm trials of new varieties of potato, chilli, corn, peanut and

other crops.

PepsiCo India's technical team implemented a high quality seed programme to deliver

early generation and disease-free seeds to farmers.

c) Potato Farming

The Impact

World class, top quality, high-yielding potato varieties introduced.

High yielding potato seeds have enabled farmers to produce world class potatoes and

procure higher returns.

PepsiCo India has partnered with more than 11,000 farmers working across Punjab,

U.P., Karnataka, Bihar, West Bengal, Gujarat and Maharashtra for the supply of

world class chip-grade potatoes.

Partnered with State Bank of India to get soft loans to all its contract farmers to

reduce their cost of cultivation and save them from the clutches of money lenders

(higher interest rates).

PepsiCo India has also partnered with 1,200 farmers in Rajasthan to cultivate barley in a tie-

up with the United Breweries Group.

d) PepsiCo Citrus Project

The PepsiCo and PAGREXCO (Punjab Agri Export Corporation) partnered to start a Citrus

Development initiative in 2002, marked a step forward in PepsiCo's commitment to

diversification of agriculture and improvement in quality of life for farmers.

The Impact

Initiative has emerged as one of the most successful models of public-private

partnerships in Indian agri-business and would create a localized supply base for

citrus juice for Tropicana business.

Project played a significant role in introducing a less water intensive alternative to

crops such as paddy.

Today, farmers can choose from 16 varieties of rootstock and 34 varieties of citrus,

largest collection at a commercial nursery.

Technical support and expertise were extended to the Punjab Government to set up

two fruit processing plants in Hoshiarpur and Abohar - prime citrus growing areas in

Punjab.

Each plant is capable of processing multiple fruits and capable of acting as a catalyst

for farmers to adopt horticulture.

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4. Healthy Kids

Get Active programs have a central objective: to raise awareness on the importance of

balanced nutrition and regular physical activity for a healthy lifestyle among school children.

Starting with a Breakfast Makes Me Smart module in 2008 that emphasized the importance

of healthy breakfast to the My Pyramid module launched in April 2009, Get Active school

programs promote learning nutrition through active engagement.

Get Active believes in combining simplicity and enjoyment. The basic principle is simple &

to establish the fundamentals of Calories In = Calories Out.

The programs have yielded great results. A look at the Highlights:

2008

Get Active reached 250,000 children across 6 metros and 240 schools in 2008 - a

significant 150% rise over 100,000 children across 2 metros in 2007

Partnerships with key NGOs and organizations & Swashrit, Hriday Shan and the

Indian Medical Association

Participation in School/Institutions' Fests and Events

Prestigious schools like Modern School, Delhi organized a program to enhance

nutrition awareness and the importance of 'Power Breakfast' among children - a first

for the school. Scottish High School and Rotary Club also organized similar events

The Healthy Lifestyle Exhibition gave visibility to 1000 children from Delhi

2009

Get Active reached 300,000 children across 10 cities and 350 schools in 2009

PepsiCo's Get Active & a Good Nutrition and

Active Lifestyle Program for Children -has seen

robust growth and implementation.

Designed and supported by the PepsiCo Health

& Wellness team, the programs have been

implemented in schools in collaboration with

prominent NGOs & Hriday, Swashrit and the

Indian Medical Association.

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Crisis/Emergencies Faced by PepsiCo

Rohan Negi B-035

1. Syringe in My Pepsi Introduction

Problem Statement: PepsiCo was entering their peak sales season when the tampering incidents were reported.

The news media was creating panic among PepsiCo’s constituencies by frequently displaying

a visual of a Diet Pepsi can with a hypodermic needle next to it, bringing to mind “AIDS or

hepatitis… and that’s pretty scary,” according to Ann Ward, Pepsi’s Manager of Public

Relations (Magiera, “What Went Right”). PepsiCo was confident that their product was safe.

(The PR response for the same will be seen further in the presentation)

In 1993, PepsiCo (Pepsi), the leading beverage

company in the world, faced a crisis in the US market,

which could have put the future of the company and

its brand Diet Pepsi in jeopardy. On July 10, a Seattle

TV channel reported that a man and his wife in

Tacoma, Washington, had found a syringe in a can of

diet Pepsi. This was soon followed by a spate of

reports that claimed that consumers had found objects

such as a wood screw, a bullet, a cracked vial, and a

broken sewing needle in the Diet Pepsi cans. Within

no time, 52 such cases were reported from 23 states in

the US.

The result: The rumors fizzled out within two weeks

following multiple arrests by the FDA for

filing false reports. Diet Pepsi sales fell by

2% during the crisis. The scare cost Pepsi

some $25 million in lost sales and higher

marketing costs, and another $10 million in

increased coupon. The situation required an

aggressive defense because PepsiCo hadn't

done anything wrong. If the company

remained quiet & complacent the damage

could have been far worse.

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2. Pepsi: Mouse in my Mountain Dew

Mountain Dew, a yellow drink that is packed with caffeine, is consumed by thousands

of people each day. The drink’s manufacturer is PepsiCo which was sued by Ronald Ball of Wisconsin.

Ball claims in a lawsuit back in 2009 that when he opened a can of Mountain Dew

that he purchased from a vending machine, something inside the can did not taste

right. Ball then claims that he spit out a dead mouse. The lawsuit documents show that Ball is seeking damages of $50,000 or more. The

lawsuit also says that Ball sent the mouse to Pepsi, which ultimately destroyed it. Pepsi dismissed the case based on testimony from an expert who claimed that the acid

used to bottle the drink would have caused the body of the mouse to become jelly.

The expert, Lawrence D. McGill, who holds a PhD. in veterinary pathology said “if a

mouse is submerged in a fluid with the acidity of Mountain Dew, after 4 to 7 days in

the fluid the mouse will have no calcium in its bones and bony structures, the mouse’s

abdominal structure will rupture, and its cranial cavity (head) is also likely to

rupture… By 30 days of exposure to the fluid, all of the mouse’s structures will

disintegrate to the point where the structures (excepting possibly a portion of the tail)

will not be recognizable and, therefore, the animal itself will not be recognizable.

Instead, after 30 days in the fluid, the mouse will have been transformed into a ‘jelly-

like’ substance.” The expert also indicated the mouse he examined was no older than four weeks old at

the time of death. Another ingredient used in Mountain Dew is brominated vegetable oil (BVO), which

is banned from use in Japan and Europe, but allowed in small quantities of beverages

like Squirt, Fanta Orange, and Mountain Dew., "If a mouse is submerged in a fluid

with the acidity of Mountain Dew," the mouse would "between four days to at most

seven days in the fluid, the mouse will have no calcium in its bones and bony

structures."

The result:

The case gained attention only for a

brief period of time but has made

sceptics over the years questions

PepsiCo’s expert’s claims.

PepsiCo damaged its own image with

the pathologist’s statements but no

considerable losses in sales were

experience by it across its various Cola

brands.

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3. Pepsi- Toxic Cocktail

In 2003, a Delhi-based public interest research institution, the Centre for Science and

Environment (CSE), alleged that about a dozen popular soft drinks brands, including Pepsi,

contained dangerously high levels of pesticides and insecticides. At a press conference held

in New Delhi, the CSE claimed that tests carried out at its test centres revealed presence of

four extremely toxic pesticides and insecticides - lindane, DDT, malathion and chlorpyrifos

— in various brands of cola majors.

The NGO found Pepsi contained 36 times the amount of pesticides considered acceptable by

the European Economic Commission (EEC). CSE is the same agency that earlier had exposed

the presence of pesticides in popular brands of bottled water. The Food Products Order and

Prevention of Food Adulteration doesn’t have any provision addressing the issue of standards

for non-alcoholic beverages or soft drinks, the CSE said.

The study found that the total pesticides in PepsiCo brands on an average were 0.0180

milligrams per litre. This is 36 times higher that the EEC limit for pesticides (0.0005 mg/l).

The NGO tested one bottle of Pepsi bought in the US. It was found to be free of such

contaminants.

PepsiCo held a joint press conference with Coke to refute CSE’s claims as well as to threaten

legal action against the centre. They not only disputed CSE’s findings but asserted that the

centre didn’t have the wherewithal to carry out proper tests on soft drinks.

Pepsi was willing to get their products tested by an independent internationally accredited

laboratory.

Effect of this Controversy: The Company has decided to stamp a quality assurance seal

which reads: 'One Quality Worldwide' across all its product labels, a first for a soft drink

giant anywhere in the world. The quality seal will appear on labels of its carbonated

beverages, non-carbs, flavors, Tropicana juices, sports drink Gatorade and Aquafina water.

PepsiCo is also in discussions with its snack foods arm Frito-Lay India to put the same seal

on its snack foods labels. The quality seal seeks to assure Indian consumers that the quality of

PepsiCo's products sold in the country is the same as those sold in the US and other parts of

the world.

Result: Speaking to ET(2007), PepsiCo

India's executive director (marketing) Punita

Lal said: "Since the controversy hit only

India, no other country needs such a quality

assurance. The pesticide issue left the

consumer questioning our quality."Colas

(Pepsi in this case), which used to account

for 60% of PepsiCo India's volumes before

the pesticide issue, now contribute about

40% to the company's total volumes.

Marketing spends on colas, too, are down

from 80% of its annual budgets a couple of

years ago, to 60% at present.

Page | 20

PR AGENT/PRO

Zoya Kazi B-025

PepsiCo has a strategic alliance with two major public relations agencies -

Edelman and Weber Shandwick.

Internal Public Relations of PepsiCo

PepsiCo believes that there should be a mutual trust between the employees and the

company. They found that conversations with employees remain one of the most credible

sources of information about a company - ahead of news coverage, online search or

advertisements.

Pepsi considers its employees

as social ambassadors. Pepsi

has made selected internal

newsletter articles available to

post externally which provides

the employees an opportunity to

share something unique about

the place they work on social

network. Since the newsletter is

published daily by email, it

generates a lot of sharable

content. Employees can also

share articles as the one on

Chief Executive Magazine

ranking PepsiCo #7 among the

best companies for leaders or another about mobile phone vending machine integration at

PepsiCo’s operations in Turkey. PepsiCo is also very careful to focus on making it easy for

employees to share articles they want to share on their own initiative, rather than pushing

them to share on behalf of the company.

Page | 21

Crisis Management by Public Relations Agency

Crisis The Pepsi Corporation faced a crisis in 1993 which started with claims of syringes being

found in cans of diet Pepsi. Pepsi urged stores not to remove the product from shelves

while it had the cans and the situation investigated.

Targeted public

The public that Pepsi was targeting was both internal and external. The internal public

would consist of all Pepsi's employees. It is important that the employees of Pepsi be

confident in the product they their employer is trying to sell. The external public targeted

would consist of any individual or organization who drinks or purchases soda and the

press. The press needed to be targeted in order for Pepsi to maintain a positive outlook

through the media.

Public Relations Campaign

Pepsi was able to communicate with its public effectively because of its PR campaign.

Pepsi's PR campaign involved four principles, putting the public safety first, establishing

and fixing the crisis, communicating with the internal and external public on a regular

basis, and taking responsibility for fixing the crisis. The company's strategy was to

reassure the public that this was not a manufacturing crisis. The PR team used specific PR

communication tools to accomplish these principles. The PR coordinator Madeira, used

specific techniques to inform, influence, and motivates the public such as video news

releases (VNR), press releases, charts, audio tapes, diagrams of the production process

and photos for external and internal distribution. The benefit of the VNR was that it

proved to be the most effective approach to communicating with the public. The VNR

was the quickest and most efficient way to communicate Pepsi's message with the public.

Vice President of Public Affairs, Becky Madeira was able to address the news media,

customers, consumers, and employees as well as local Pepsi-Cola bottle with its "One

Clear Voice" approach, which informed the public of proper facts and any new updates as

they arose. This case showed that Pepsi has an effective crisis management team who did

their job. This was displayed through the fact that they earned the respect of their clients

and employees through effective communication.

Page | 22

Role of Public Relations Agency in Corporate Communication

Pepsi Refresh Project – Role of Weber Shandwick & Edelman

Objective :-

The Project drives conversation and builds credibility in the social enterprise and

innovation arenas through a dynamic, real time “campaign” which democratizes the

process of turning ideas into reality, earning more than 3 billion audience impressions to-

date positively enhancing the Pepsi brand.

The Pepsi Refresh Project was designed to give

away more than $20 million in the U.S. to fund

good ideas, big and small, that move

communities forward. With roles clearly

defined by the client, Edelman & Weber

Shandwick collaborated closely& formed a

nearly seamless team to support

implementation and meet the communication

objectives of the Pepsi program. Each month,

Pepsi invites individuals and organizations to submit ideas that they believe will move

communities forward and the public votes to decide who wins.

STRATEGY AND IMPLEMENTATION

Edelman and Weber Shandwick worked with Pepsi and agency partners to create a strong

communications plan to drive media and voting around the launch of PRP:-

• Casted a national spotlight on the implementation of ideas for refreshing change by

announcing the diversion of funds to implement the Project.

• Collaborated with employees, bottling and retail partners to generate local news angles

and to drive awareness.

• Raised awareness and

increased participation at

grassroots level through

Hispanic and English

language press.

• Promoted Refresh

Everything.com as the online

destination, encouraged

individuals to submit ideas

and vote.

• Encouraged online engagement with the Project on Facebook or on Twitter.

• Developed national partnerships to raise broad awareness of the Project to tell stories of

Project impact and reach.

Page | 23

Social Audit: Survey

In a survey answered by 46 randomly selected people, all within the age bracket of 18-25, the

following questions were asked:

1. How often do you drink Pepsi?

2. Which is your favourite brand of soft drinks?

3. What factors influence your choice of beverage?

4. Do you feel Pepsi Co is socially responsible?

5. Does it influence your buying behaviour?

6. Are they Proactive or Reactive in terms of their CSR Campaigns?

7. What campaigns by Pepsi are you aware of?

8. Can you think of any controversies involving Pepsi Co.?

Analysis:

1. Around 19.5% of the randomly selected people never drink Pepsi.

2. Approximately 35% of the people picked Thumbs Up as their favourite as compared

to only 26% who picked Pepsi.

Page | 24

3. To 87%, taste is the most important factor when choosing a particular brand of soft

drink.

4. When asked if they thought Pepsi was socially responsible, only a mere 13% actually

felt they are, though 47% felt that Pepsi might be.

5. 57% of the people don’t care if Pepsi is socially responsible or not, when they buy

soft drinks.

Page | 25

6. The intention of this question was to understand what consumers felt about Pepsi’s

CSR in terms of them being Proactive or Reactive.

Though majority doesn’t know, of the remaining, majority feel that Pepsi’s CSR

campaigns are Reactive. Meaning that the company creates campaigns and makes

efforts as a means of countering or reacting to events in its external environment.

7. When asked what campaigns they were aware of, some of the most common

responses were:

- Dil maange more

-Youngistan

-Oh yes abhi

-Change the game

8. The only controversial issue that people seemed to know about was about Pepsi

containing pesticides.

Thank You