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Objectives of CRM:
Objectives of CRM To simplify marketing and sales process To make call centers more efficient To provide better customer service To discover new customers and increase customer revenue To cross sell products more effectively
About PepsiCo:
About PepsiCo PepsiCo is a leading global snack and beverage company. We manufacture, market, and sell a variety of salty, convenient, sweet grain-based, snacks, carbonated and non-carbonated beverages and foods. Historical Analysis Founder Caleb Bradham Current CEO is Indra Nooyi Pepsi Co Inc. established in 1965 in North Carolina Ceo of PepsiCo Inc. Donald M. Kendall During first five years introduced new products such as Doritos and Funyuns Entered Japan and Eastern Europe markets In Page 1
1992, expanded beyond carbonated beverages via a agreement with Ocean Spray to distribute singleserving juices Tropicana was acquired in 1998 and PepsiCo merged with the Quaker Oats Company, including Gatorade, in 2001. Implemented a number of acquisitions with Taco Bell in 1978, Kentucky Fried Chicken in 1986 and Pizza Hut in 1977
Mission:
Mission To be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity. Values PepsiCo Inc. reflects their values by their commitments Their committed to Sustained Growth Empowered people Responsibility and Trust PepsiCo Inc. commitment is to deliver sustained growth, through empowered people, acting with responsibility and trust.
Strategies:
Strategies Realignment of their organization are into three new business units; PepsiCo America Foods Includes all of their Latin American food and snack business. PepsiCo America Beverages Includes all of our Latin American beverage business PepsiCo International Includes all PepsiCo business in the United Kingdom, Europe, Asia, Middle East and Africa. Financial Objectives Increase our investment in developing markets, make selective investments to continue growing our global snacks business and accelerate our global R&D initiatives to help secure our future innovation pipeline. Produce $1.2 billion in pre-tax savings over the next three years (Productivity for Growth Initiative) Investing to drive additional growth in key developing markets across the world in both Snacks and Beverages. Targeted marketplace investments to further secure our competitive position in developed Snack markets.
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Recommendations:
Recommendations Lay-off about 3300 positions Savings from Productivity for Growth Initiative is going to go into North America Beverages Selected investments will be allocated into key developing markets, and then Snacks in developed markets from marketplace investments and then R&D. Introduce a widevariety of Non-carbonated beverages
SAP announced on Wednesday that global brand leader PepsiCo has selected mySAP Business Suite as the primary business platform for unifying its operations, standardizing business processes and increasing efficiency across its divisions. The US$27 billion convenience food and beverage company produces Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. SAP spokespeople declined to comment the value of the deal in either dollars or seats. However, John Grozier, SAP's vice-president of CRM product marketing, told CRM Buyer in an interview that PepsiCo selected mySAP to kick off of a major business transformation for the company. "Ultimately this is an enterprise-wide decision and the specific plans being worked out right now," he said.
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Big Win
Steve Trotta, software industry analyst at Technology Business Research, told CRM Buyer that he thinks PepsiCo is a great competitive win for SAP because some of PepsiCo's subsidiaries were already running Oracle (Nasdaq: ORCL) for enterprise resource planning (ERP) systems, as well as PeopleSoft and Siebel CRM systems. "PepsiCo was probably fed up with Oracle's inability to execute on the integration of Pepsi's disparate software applications spread across its subsidiaries," Trotta said. "Now its SAP's turn to see what it can do." Paul Greenberg, president of The 56 Group and author of best selling CRM at the Speed of Light, agreed. According to him, the reason for the deal is SAP's NetWeaver platform, the highly efficient architecture that underlies every facet of mySAP. "It's one of the better platforms when data, application and process integration with other non-SAP applications and databases is an issue," he told CRM Buyer.
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NetWeaver Proof
"PepsiCo is proof that consumer product companies are leveraging to NetWeaver to drive up ROI and costs down," said Grozier. NetWeaver is SAP's open integration and application platform for enabling SAP infrastructure. Meanwhile, software analyst Trotta believes that, over the course of the PepsiCo deployment, SAP's mySAP Business Suite will eventually replace the majority of systems that are currently running within PepsiCo and its subsidiaries. "This is certainly a testament to SAP's ability to execute and demonstrate the value that NetWeaver brings to the table," said Trotta.
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Current Customer Relationship Management Systems (CRM) Businesses use customer relationship management systems to capture and integrate customer data from all over the organization, consolidate the data, analyze the data, and then distribute the results to various systems and customer touch points across the enterprise (Laudon, pg 369). These systems are useful in improving sales, marketing, and customer service in a business. For Pepsi, CRM systems play a crucial role in integrating the companies nearly 400,000 across the enterprise. Through the use of CRM System, Pepsi has been able to deliver top-line growth and superior customer service. Pepsis current CRM application has allowed for conversion of former disparate sales systems into an integrated Internet application solution, a 360 degree view of the entire customer base, simplification of the resolution process, accurate and timely deliveries, and reduction of product inventory close time by one to two days. Through the use of real-time customer information, telsel agents, or telemarketers, are able to have up-to-date information on any issues of needs of the customer through their account, allowing for a clear picture of their customers and their relationships with the company. This also allows workers to uncover potential sales opportunities with their customers. The use of real-time information is also used to improve customer interaction and satisfaction through the use of help desks, customer service representatives, and allowing customers themselves access to real-time information. Pepsi uses CRM applications to determine profitable customers, uncover potential sales opportunities, improve customer interactions and relations, and provide the enterprise with up-to-date customer information.
competencies and free up valuable resources to drive growth and innovation, which is essential in today's tough markets (SAP BPO). MySAP does not provide BPO, but SAP supports BPO providers in setting up services that generate sustainable business benefits by reducing costs, lowering risks, and improving process quality.
We would propose PepsiCo to do things as they are doing now, because they are doing a good job, but, like any business, they can never be too careful, especially if PepsiCo continues to encourage more suppliers to enter their domain. PepsiCo needs to keep an information system like MySAP that will integrate all their suppliers to their main needs. PepsiCo needs to also make sure that whatever information they use in the future can accurately predict changing consumer demand.
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