Business Plan for PepsiCo's EVOLVE Protein Drink

This report discusses the launch of PepsiCo's new product EVOLVE, a protein-based drink. It includes market and competitive industry analyses, marketing strategy, financial planning, and the role of entrepreneurship in various types of business enterprises.

Enterprise
and
Entrepreneurship
Task 1 –
Business Plan

Table of Contents
EXECUTIVE SUMMARY.................................................................................................................................3
MAIN BODY .................................................................................................................................................3
The New Business Concept/Business Model.....................................................................................3
Management Team’s Entrepreneurial Expertise. .............................................................................5
Market and Competitive Industry Analyses.......................................................................................8
Marketing Strategy for the new business venture...........................................................................10
Business Sales and Operations Strategy..........................................................................................11
Business Financial Strategy and Risks..............................................................................................12
CONCLUSION.............................................................................................................................................13
REFERENCES ..............................................................................................................................................15

EXECUTIVE SUMMARY
The entrepreneurs are the one who set up their business for various reasons. They are the
ones who take up the high risk in order to start up a new business. The enterprise is a framework
to find out the business opportunities and take the benefit in a view to gain the profit. In order to
start a new business or to gain a profit the company launches the new product for which the
company used to form a business plan. The business plan is a framework which demonstrates the
company’s marketing objective, goals, operational points and financial planning. For this report
the chosen company is PepsiCo Company. They are launching the new product “EVOLVE” the
protein based drink. The PepsiCo company is founded by Caleb Bradham and the headquarter is
in New Bern, North Carolina, United States. For this innovative product they have to plan about
the budget, financial plan, operational working and marketing so they used to develop the
business plan. This report includes the role of entrepreneurship in the various types of business
enterprises, necessity for setting up the sustainable business model in various kinds of
environment and also the skills required by an entrepreneur in order to convert the business idea
into action plan. The effective business plan and the underlying business proposal with the
business plan presentation are also mentioned in this report(Shao, Hu, Cao and et. al, 2020).
MAIN BODY
The New Business Concept/Business Model
The PepsiCo company has launched the new product “EVOLVE” it is a nutrition based
drink which is ready to drink product. This drink is supplied in three flavours that is vanilla bean,
double chocolate and berry medley. The drink contains the vitamin C and zinc which helps in
improving the immune system.
The vision of the company is to deliver the customer, protect an environment as this
activity will help the company to furnish the good returns and also the company's sustainable
growth. The company wants to achieve the success and wants to leave a positive imprint.
The company's mission is to render the delicious, affordable and convenient food and
beverages in order to provide the healthy breakfast and evening treats. The PepsiCo company is

committed to invest for the people, company and the community where they operate their
business in order to enhance the company’s position for the long term sustainable growth.
In a view to fill the market gap, the company has produced the plant based protre9in
drink for the customers. This product helps to strong the immune system of an individuals. This
product is created by the company in order to provide something unique and different to the
customer which also enhance the energy for staying active. The SMART model for the company
helps to demonstrate the business objective which is discussed below:
SMART objectives
 Specific: The PepsiCo company wants to expand their business and to provide the
delicious and complementary beverages and foods to the consumer. Thus, the company
has launched the new product which helps the consumer to boost up their immune
system.
 Measurable: The company forecasts to obtain the company's objective by 2030.
 Achievable: The company can desire to have risen in profit by 30% due to this product
as for this the company has also established a new protein based plant(Le Dinh, Vu and
Ayayi, 2018).
 Realistic: This product consumes the vitamins and other healthy products which are
beneficial for the consumers and it is popular for the muscle milk brand.
 Timely: By the 2030 the company's product will have growth and also achieve maximum
profit by 30%. successfully the company can achieve the objective.
Business Model
The new product “evolve” which is launched by the PepsiCo company. This product is
used by any age of person as this is the energy drink which supports in improving the immune
system. The company is already leading in the market therefore their protein based healthy
product will also get success in the market. The product possesses the vegan protein shake,
products packaging is also an eco-friendly packaging and the green urban spaces. The

sustainability is maintained by the company as it provides the eco-friendly packaging and protein
shake which attracts customer more to buy. As it is a healthy drink.
Management Team’s Entrepreneurial Expertise.
The entrepreneur is the one who is creative and innovative, starts up their own business in
order to gain the profit and produces a unique product also to fill the gap in the market. The
entrepreneurs are the independent have freedom to take their own decision and have flexibility in
working also. Thus, a firm which is owned and formed by the entrepreneur is termed as
entrepreneurship. Whereas the enterprises are termed as a unit of the organisation or business
organisation where the functioning of a business takes place. The entrepreneurship plays a
various major role in the different types of an enterprises.
The various types of an enterprises are discussed below:
The different types of an enterprises are existing in the market. A major distinguish between
every enterprise is their structure and their legal owners(Funamizu, 2018).
1. Sole Proprietorship: It refers to the single owner of the business who used to run the
business. This considers the small businessman or retailers for example- decorators or
painters. In current scenario, the online business is included in these categories that have
their own business and they are the only one to manage it.
2. Partnership: This refers to the group of individuals who used to share their ownership,
risk as well as profit and the decision making process. It includes the partners which
bring the speciality in the business in order to expand their business. In some cases, the
partners are involved in the manner of hierarchy in which they are the partners in the
form of juniors and seniors.
3. Private Limited Company: These kinds of enterprises possess their own identity and
have legal incorporation. This enterprise has the limited liability and the shareholders are
accountable to appoint the directors who can take the business decisions and check the
operations of the business. Additionally, the managers are responsible to check the day to
day workings.

4. Public Limited Company: In this company the companies shares are generally sell out
to the common people . It is required for this company to follow up the certain legal
criteria & regulations in context with business financial terms, transparency of accounts
and other necessary information. This is the company which considers the interference of
government.
Background profile of top management
 A Ramon Laguarta is a Chairman of BOD & also the CEO at PepsiCo company. Being
a chairman, they pivot the company towards an accelerated growth and also form a new
mission. They belong to the Barcelona and holds a degree of MBA and Masters in
international Management from ESADE Business School in Spain and Thunderbird
School of Global Management.
 ROBERTO ACEVEDO is the executive vice president, officer of chief corporate affair
and chairman of BOD, Pepsi Co-Founder. They have done their graduation from the
Brasilia university in electrical engineering. Through their skills the company get
engaged with the national and international government, regulators and many more
authorities which impacts the company(Bigelow, and Barney, 2021).
Role of an entrepreneurship in relation with enterprises
 Initiator: In the process of establishing the enterprises the entrepreneurship
includes the initiating process. It determines the process of forming an enterprise
and bringing up the new innovative and creative idea.
 Risk Taker: An entrepreneur is the biggest risk taker in the entrepreneurship
process which is performed in an enterprise. It is the only one person who invests
the capital in conversion of their plans into action and also responsible for the
failures.
 Forecasting: The entrepreneurship process involves the forecasting of an
enterprises and it can affect by the changes which occur in the in a business
environment. The entrepreneurship process which is conducted by an

entrepreneur helps to forecast the changes and make the business plan
accordingly.
 Allocator: An allocator is the one who provides the resources in an enterprise.
The necessity of this resources is manpower. Thus the entrepreneurship process is
responsible for hiring the efficient staff in order to carry out the business activities
effectively(Karmeni, Uhlaner and Lucianetti, 2021).
legal form of business and ownership structure.
The PepsiCo is an American multinational company which deals in snacks, food and
beverages. The company was following up the hierarchical organisational structure but after the
global expansion company has changes their ownership structure. The company’s organisational
structure is its market division, which is based on two variable Business & Geography. The
companies organisational structure is given below in regards with market division:
 Frito-Lay
 Latin America Foods
 American Beverages
 Quaker Foods
The another structure followed by company is Functional Corporate Groups/Offices. It refers
to the business function. The company has functioning at their various job locations. The main
objective is to ensure the rapid execution of strategies and policies. The functional of corporate
groups are;
 Communication
 Finance
 Global Operations
 Research and Development
 Government Affairs

 Human Resource
The last Hierarchy followed by company's organisational structure is global hierarchy. This
hierarchy follows the top to down path for communication, monitoring and control. It helps to
minimise the deviations for the strategy and policies(Alayo, Maseda, Iturralde and et. al, 2019).
Apart from all this, legally the company follows the tall hierarchy structure which includes the
market division and global groups.
Market and Competitive Industry Analyses
porter's five forces
Due to the company’s global presence the external factor affects the company’s
environment. The impact of the external factor is explained through this five forces. The porters
five forces of PepsiCo are explained below:
 Competitive rivalry: The biggest competitor for the PepsiCo company is coco cola. The
most of the firms who are in the same industry are aggressive in nature for marketing and

innovation of products therefore the company has the strong impact of this. There iS
more competition rival because it is easy for the consumer to shift on another product as
there is low switching cost. Thus, the company produces a unique product in order to lead
in the market. As the company has to face the strong competition.
 Bargaining power of buyers: the consumers are the top priority for the Pepsi company.
The customer's impact on the industry are explained in this. It is observed that the
consumer can change their preference of one product to other product due to low cost of
other substitute product so the customers has the power to influence the Pepsi company.
The buyers can bargain for the product due to the availability of substitute. In order to
generate high revenue, the company should maximize the satisfaction level of a
consumer.
 Bargaining power of suppliers: The company has maintained the healthy and profitable
relation with the suppliers. The company acquires the rawer material due to which the
bargaining power of supplier is low. Due to the low integration it possesses the limited
control of suppliers. Thus, it indicates the low bargaining power of company(Sexton and
Iskow, 2021).
 Threat of substitutes: There is high chances of availability of substitute product of the
Pepsi company. The customers of Pepsi company can easily shift to other substitute
therefore the company has produced energy drink also in order to hold the consumers.
The external factors create the strong threat of substitute which is faced by the company.
 Threat of new entrants: The company remains the strong as there is chances of new
entrants. The cost of development of brand reduces the risk of new entrants which is
directly competing against the Pepsi Co company. Thus it possesses the moderate force
of new entrant on the Pepsi Co company.
STP (segmentation, targeting and positioning)
The company follows up the multi segment type of positioning and in accordance with
that they target more than one customer at a same time with different product and services. In
order to analyse the market the STP model is used.

Segmentation: This step of marketing model is used to create the different customer segments
based on the criteria. The segmentation considers the four types such as geographical,
demographic, behavioural and psychographic. The PepsiCo company segmenting their
customers according to their gender, age and the products and services offered.
Targeting: this is the second step in the model of marketing. This is used to examine the
segments in order to generate the desired transformation and it is targeted on the reachability,
profitability and size. It refers to the customers concern and also identify the customer’s potential
for the growth in market. The targeted market for this company is majorly teenagers and adult.
Positioning: This is the step in which the firm's product is set different from the competitor’s
product. In relation with PepsiCo company, in order to form the brand, they used the functional
positioning.
Marketing Strategy for the new business venture
Marketing plan of PepsiCo companies evolve drink
PepsiCo company is an American multinational food and beverages company which was
formed in 1965. The marketing plan of a company is discussed below:
Target Market: The targeted market for the new product is teenagers and adults, male or
female. The product is available into three flavours which are most probably liked by the
teenagers and youth. The PepsiCo company itself is brand of youth.
Industry trends: The company has launched new plants in order to form the healthy protein
based drinks. The company is trying to make up the new drinks and shakes which are healthy for
the youth and also discover the new ingredients to add in their portfolio.
Goals: The goal of a company is to deliver the healthy product to consumer and also for the long
term company's sustainability.
Strategies: the company's main focus is on the organisational culture and the emerging markets.
The company grows due to the merger and acquisition.
Marketing budget: the company has devoted their 2.3 billion to 3.5 billion dollars for the
advertisement and promotion annually. The PepsiCo is the strongest brand in the world.

MARKETING MIX
PRODUCT: The company supplies the wide range of products and various brands. The
PepsiCo’s new innovative product is “evolve” drink. It is a nutrition based energy drink.
PRICE: The price of the product is moderate which can be affordable by everyone. Thus the
provide the quality product at reasonable rates. The price of the product is average as the
company is leading in market.
PLACE: The company has strong present them in world wide. They have a strong network of
distribution and also a merchandiser.
PROMOTION: The company used to more emphasis on their promotion due to the intense
competition in the market(Cosenz and Noto, 2018).
Business Sales and Operations Strategy
Sales and operations
The PepsiCo company has adopted the digital platforms in order to offer their product
and services in the market. Through social media platform they can reach to many customers.
The strategy related to sales and marketing is explained below:
 the various promotional activities on social media platform to attract the customers.
 Hire the expertise which can effectively give the guidance for business procedures and
tasks.
 Organising the various programmes & events and be the sponsor partners.
The product provides the benefit to the individual as it helps to enhance the immune system. It is
a healthy energy drink which is a key milestone. The company provides the facility of online
delivery, open a retail outlet, and make the product available and reachable to the consumer.
Business Financial Strategy and Risks
In order to produce a new and innovative product the company finds out the various sources to
raise the fund(Hill, 2020). It includes:

BANK LOAN: The company can take a loan from the bank in a view to develop a new product.
The bank provides the loan for long term as well as short term. It is a secured and easy way to
raise the fund. If company wants to take high amount of loan, then they have to keep some
security with the company.
FRIENDS AND FAMILY: the company can take the loan from their relatives, friends and
family members. If they want to take the short amount of loan for short duration, then they can
take from their own sources. As it is easy to take.
Business risk
A company suffer a loss and leads to the failure is termed as business risk.
 If the product does not leader in the market, then it is a risk for the company.
 If the substitute of a product is available, then it is also causes a risk for the
company(Pan, Li, Chen and et. al, 2020).
Income statement forecast for the company
cash flow statement forecast

CONCLUSION
It is concluded from the report that the PepsiCo company is a leading company in a
market. And the company has produced an innovative product, “EVOLVE” drink. It is a protein
based drink for which the company has established a plant also. In this report the SMART, STP,
marketing and business plan is included regarding the product and company.

REFERENCES
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