PEPSI BOTTLING GROUP, INC
One Pepsi Way
Somers, NY 10589
www.pbg.com
914-767-6000
October 5, 2009
Mr. William R. Kohler
College of Business Administration
University of Illinois at Chicago
S. Morgan St. (M/C 243)
Chicago, IL 60607-7123
Dear Mr. Kohler:
The attached report, requested by Mr. William R. Kohler as part of the requirements of the
BA 200 course, describes the impact of a Customer Appreciation Weekend on sales for Pepsi
Bottling Group, Inc. We are confident you will find the results of this study useful in evaluating
a new proposal to increase sales.
This study was designed to examine the impact on sales in two areas:
 Showing appreciation to our Top Five clients
 Promoting our product to our clients
Primary research consisted of evaluations of our annual reports to determine who our Top Five
clients are and online sources to determine the location of the Customer Appreciation Weekend.
Secondary research sources included online sources. Results of this research, discussed more
fully in this report, indicate that sales can be improved by showing appreciation to our Top Five
clients.
We would be pleased to discuss this report and its conclusion with you at your request. My
partner and I thank you for your confidence in selecting our company to prepare this
comprehensive report.
Sincerely,
Salvador Garcia
Elizabeth Lawal
Executive Summary
This report proposes a customer appreciation weekend designed for our top five clients. We will
take our top five clients and their guests to Niagara Falls located in Ontario, Canada. By taking
our top five clients on this appreciation weekend, we plan to thank them for investing in our
company and build a stronger relationship.
Business Profile
Pepsi Bottling Group (PBG) is the world’s largest manufacturer, seller, and distributor of Pepsicola beverages. The PBG separated from its parent company PepsiCo, Inc. in 1999, and
accounted for fifty-five percent of Pepsi-Cola beverages sold in the United States and thirty-two
percent worldwide in that year. The company grosses almost $14 billion in annual sales.
Major Considerations
For this report, we had many considerations such as the location, the clients to invite, and the
activities to schedule. The location had to be exciting enough to take a group of twelve, but also
relaxing enough for them.
The process of writing this report was challenging due to the amount of information that needed
to be added. For this report, the information was written in a clear and concise manner, focusing
on only the main points.
Based on this report, taking our top five clients on an appreciation weekend will strengthen our
relationship with them. By doing so, our clients will be persuaded to invest more in our
company, thus increasing our profits, and also theirs.
We recommend that the weekend should be in a location outside of the U.S. This allows for the
clients to fully enjoy their vacation. The weather will also be cooler considering the warmer
weather in the U.S.
This weekend will not only improve sales for Pepsi Bottling Group, it will also serve as an
opportunity to appreciate our top five clients. By doing so, we hope to build our credibility and
to also increase the sales for our top five clients. This report proposes the weekend along with the
expenses, the clients invited along with their guests, and the weekend itenary.
INTRODUCTION
This report proposes a customer appreciation weekend designed for our top five clients. We will
take our top five clients and their guests to Niagara Falls located in Ontario, Canada. By taking
our top five clients on this appreciation weekend, we plan to thank them for investing in our
company and build a stronger relationship. We also plan to pitch new ideas and products to our
clients that will make them invest more. Without our top five clients, our sales would decrease,
therefore affecting our overall revenue and credibility.
Niagara Falls is a place of relaxation. It is a place to enjoy the wonders of found in nature. It is
an escape from the daily routine of the city. Niagara Falls has many tourists’ attractions to keep
our clients and their guests occupied. The customer appreciation weekend will start promptly at
noon on June 3, 2010 and will run through Monday morning on June 7, 2010. The first week of
June provides comfortable weather in a rather cool location. Also, with warmer weather, our
clients are more likely to sell more beverages.
Our top five clients are:
 Linda Hefner- Sam’s Club , Michael T. Duke- Wal-Mart
 W. Craig Jelinek- Costco
 Craig Herkert- SUPERVALU. INC
 Bruce L. Everette- Dominick’s
 Greg D. Wasson- Walgreen Co.
Based upon the annual report from 2008, our top five clients makeup thirty-two percent of our
revenue. Due to the investments of our clients in the company, planning an appreciation weekend
for them will strengthen the relationship. It will encourage them to keep investing in our
company. By maintaining a strong relationship, we establish credibility. We show our interest to
continue working with them and they in turn will trust us with their business. This customer
appreciation weekend can be delivered for less than $125, 000.
COMPANY DESCRIPTION
Pepsi Bottling Group (PBG) is the world’s largest manufacturer, seller, and distributor of Pepsicola beverages. The PBG separated from its parent company PepsiCo, Inc. in 1999, and
accounted for fifty-five percent of Pepsi-Cola beverages sold in the United States and thirty-two
percent worldwide in that year. The company grosses almost $14 billion in annual sales. In
recent years, the PBG has had a US market share for Pepsi brands that is close to forty percent. It
delivers drinks that include Aquafina water, Lipton's Iced Tea, Mountain Dew, Slice, and the
world's number two soft drink, Pepsi-Cola. The PBG’s history falls in line with PepsiCo’s.
COMPANY HISTORY
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1902- The original Pepsi-Cola Co. was founded by Caleb D. Bradham.
1936- Pepsi-cola bottling plants were established in five US states.
1948- Pepsi-Cola began packaging its product in cans as well as bottle.
1950s- Alfred N. Steel, a former Coca-Cola manager, was named chief executive officer.
1959 - Pepsi-Cola was its own bottler in twenty-two major US markets.
1973- Moscow made Pepsi-Cola the sole soft drink company allowed to bottle in the
Soviet Union.
1978- Pepsi Bottling Group was created after following a merger in 1965. The
distribution facility was created in the 1970s.
1988- PBG acquired the third largest independent U.S. bottling operation.
1990s- PBG dissolved and was company owned.
1999- PBG became and independent company and had exclusive rights to manufacture,
and sell, products to local customers in its territories.
August 2009- PepsiCo bought PBG and Pepsi Americas, Inc. and became a fully
integrated beverage business.
CLIENTS
Below are the representatives of our Top Five clients that will be appearing on the Customer
Appreciation Weekend.
Linda Hefner- Sam’s Club
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Executive Vice President and Chief Merchandiser Officer for Sam’s Club (June 2008Present)
Executive Vice President and General Manager of the home business unit for Wal-Mart
Stores U.S (May 2007- June 2008)
Executive Vice President of global strategy and business development at Kraft Foods
(May 2004- December 2006)
Michael T. Duke- Wal-Mart
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President and CEO at Wal-Mart (February 1, 2009- Present)
Executive Vice President of Logistics (September 2005- November 2008)
Senior Vice President of Logistics (July 1995- September 2005)
W. Craig Jelinek- Costco
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Executive Vice President, Chief Operating Officer of Costco (February 2004- Present)
Executive Vice President, Chief Operating Officer-Northern Division of Costco
(September 1995- February 2004)
Senior Vice President, Operations-Northwest Region of Costco (September 1992September 1995)
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Craig Herkert- SUPERVALU, INC
Chief Executive Officer of SUPERVALU, INC. (May 2009- Present)
President and Chief Executive Officerof Wal-Mart (2004- May 2009)
Senior Vice President and Chief Operations Officer of Wal-Mart International (20002004)
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Bruce L. Everette- Dominick’s
Executive Vice President of Safeway, Inc (December 2001- Present)
President of Dominick's Finer Foods, LLC (October 2004- November 2005)
President of Northern California Division of Safeway Inc. (1998-2001)
Greg D. Wasson- Walgreen Co.
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President and Chief Operating Officer of Walgreen Co. (May 2007- Present)
Executive Vice President of Walgreen Co. (October 2005- April 2007)
Senior Vice President of Walgreen Co. (February 2004- October 2005)
PRODUCT AND SERVICES
During the appreciation weekend, our clients will be briefed about our products. We plan to
focus on the major beverages that our company manufactures. These beverages include: PepsiCola, Aquafina water, and Lipton Tea.
Although we will not be discussing any business ventures during the weekend, we hope to
increase sales after this weekend. We will
WEEKEND ITINERARY
Thursday
12:00 PM
Clients depart from respective locations
2:00-4:00 PM
Clients arrive at Buffalo International Airport and transported to
Fallsview Plaza Hotel
5:00-7:30 PM
Downtime
7:30 PM
Dinner at The Keg Steakhouse & Bar
9:30- 11:00 PM
Fireworks and Illumination of Niagara Falls
11:15 PM
Back to the Fallsview Plaza Hotel
The clients will depart from their respective locations at approximately Noon on June 3, 2010.
They will arrive at the Buffalo International Airport between the times of 2:00 to 4:00 in the
afternoon. From there they will be driven 25 miles up Niagara Falls in Canada. Their mode of
transportation is individual luxury sport utility vehicles. The significant differences of arrival
times made it necessary to have individual transportation for each client. Passports are needed
for this international trip but there will be money set aside to provide our clients or their guests
with a passport.
The clients and their guests will arrive at the Fallsview Plaza Hotel to a Two Queen Bed
Fallsview Room. The room overlooks the famous Horseshoe Falls. Both client and guest can
have a separate bed if needed. Each of them will receive gifts placed in the rooms upon their
arrival.
To help our clients and their guests become accommodated, there will be a two and half hours of
downtime. This gives them time to relax from their flights. The downtime also allows them time
to explore the town and take advantage of the local transportation offered to them. Each client
and guest will receive $1000 dollars spending money for the trip.
Dinner will be at The Keg Steakhouse & Bar, nearby the hotel. It is on the ninth floor of the
Embassy Hotel and it overlooks the Niagara Falls. The Keg is an upscale restaurant that attracts
many tourists for the food and the view. This will also be an opportunity to discuss why we
brought our clients on this trip and they can all become familiar with one another.
After dinner, our clients will enjoy a beautiful display of fireworks over the Niagara Falls from
the Minolta Tower. During this time, the Falls are illuminated through midnight. Niagara Falls
wonders tourists at night just as well as during the day.
Friday
9:00 AM
In-Room Breakfast
11:00 AM-2:00PM Boat and Helicopter Tour of Niagara Falls
2:30-3:30 PM
Lunch at the Rainforest Café
3:30-4:30 PM
Downtime
4:45-6:45 PM
White Water Walk
7:00-8:30 PM
Dinner at the Skylon Tower
8:30-10:30 PM
Niagara-on-the-Lake
10:45 PM
Back to the Fallsview Plaza Hotel
Friday morning starts a little early for our clients but they will stay in the comfort of their beds.
Room service will serve breakfast to their rooms.
A boat and helicopter tour of the Niagara Falls begins this day of exploration for our clients. The
tour on Maid in the Mist is the most famous boat ride of the Falls and our clients deserve the best
on this Appreciation Weekend. The helicopter tour provided by Niagara Air Tours will give our
clients a unique view of the Niagara Falls that few experience.
Next, there will be an early afternoon lunch at the Rainforest Café. This provides a great
atmosphere for our clients and allows loosens them up to talk about the tours.
After lunch, our clients will have downtime so they can prepare the next tour. The White Water
Walk is a stroll alongside the powerful rapids located two miles downriver from the Falls. Our
clients will marvel at the relentless power and beauty of nature.
Dinner at the Skylon Tower follows the rapids’ walk. The Skylon Tower is the tallest structure in
Niagara Falls and has award-winning cuisine at the Revolving Dining Room (one rotation per
hour).
To finish the day, our clients will experience a beautiful village called Niagara-on-the-Lake. It is
a beautiful little town filled with rich art galleries, festivals, and other leisure activities.
Saturday
10 A.M.
Breakfast- Creekside Café.
12:00 P.M.
Butterfly Conservatory.
2:00-4:00 P.M.
Lunch-Japanese Restaurant Yukiguni.
5:00-6:30 P.M.
Rolling Meadows Golf Club.
7:00 P.M.
Dinner- Red Chateau.
9:00 P.M.
Arrive back at the hotel.
Our clients will be taken to the Creekside Café for breakfast on the morning of June 5, 2010.
Following the breakfast will be a visit to the butterfly conservatory.
This conservatory features over 2,000exotic butterflies. The pathway is 180meters, with over 50
species of butterfly.
Japanese Restaurant Yukiguni
Our clients will be taken to Japanese Restaurant Yukiguni to lunch. Located in 5980 Fallsview
Boulevard, this restaurant offers a relaxing atmosphere combined with ethnic food.
Our clients will enjoy an 18-hole golfing competition. We will split the groups up evenly so
everyone has a chance to golf. Our clients will also enjoy the cool Canadian weather on this
semi-private golfing area.
At 7:00p.m. our clients will be taken to the Red Chateau. This restaurant offers fine dining in a
quiet setting. This restaurant offers European food made by professional chefs
Sunday
11 A.M.
Brunch- Kriegnoff Gallery- Café.
1:00-2:00 P.M.
Relaxation hour.
2:00-6:00 P.M.
Shopping time.
7:00 P.M.
Watermark Restaurant.
9:00 P.M.
Arrive at the hotel.
On the morning of Sunday, June 6 2010, our clients will enjoy a brunch at Krieghoff GalleryCafé. The brunch will start at 11:00 a.m. and end at 1:00p.m. This café offers a quiet and
relaxing atmosphere combined with Cornelius Krieghoff’s paintings.
Our clients will have an hour to relax form 1:00pm to 2:00p.m.
At 2:00p.m. our clients will be given $500 to spend at any location of their choice. The shopping
day will end at 6:00p.m. and our clients and their guests will be given a personal car along with a
chauffer.
Our clients will be taken to the Watermark Restaurant.
The Watermark Restaurant overlooks the Niagara Falls. At night, fireworks are in display around
the Falls. The restaurant attracts many tourists due to its interior and its view of the Falls
FINANCIAL REVIEW OF EXPENSES
Airfare. …………………………………………………………………….…$16, 278.00
Hotel room. ………………………………………………………………..…. $3, 702.00
Transportation. ……………………………………..…………………………..$4,133.50
Gifts ………………………………………………………………………..…..$3, 850.00
Dining…………………………………………………………………….…….$ 9,676.76
Entertainment…………………………………………………………...………$ 8,871.00
** Passports……………………………………………………………….…….$ 1,440.00
During the customer appreciation weekend, our guests will be given $500.00 each. This amount
will be used for shopping by the clients. During the four-day weekend, the clients will have
downtime to visit any location of their choice and spend the $500.00 given to them.
** The passports will only be accounted for if the clients need a passport for the weekend. The
estimated cost will be $120.00 per person.
Expenses
Entertainment
19%
Airfare
36%
Dining
21%
Gifts
8%
Airfare
Hotel Room
Transportation
Hotel Room
7%
Transportation
9%
Gifts
Dining
Entertainment
CONCLUSION
Based on this report, we plan to improve our profit. Our top five clients will also notice an
increase in profit by investing more in our company. This weekend will also be used to
appreciate our clients for their constant investment in Pepsi Bottling Group. Based on the budget,
we plan on taking our clients to Niagara Falls. The four-day weekend will include many
activities as well as relaxation time for our clients. All expenses will be paid and our clients will
be given sufficient consideration.
Appendix
Exhibit 1
Airfare (roundtrip, first class seats, nonstop flight)………………………….$16, 278.00
Atlanta, Georgia………………………………………………………………..$ 2,492.00
Chicago, Illinois………………………………………………………………..$ 3,330.00
New York City, New York……………………………………………………$3,200.00
Raleigh, North Carolina……………………………………………………….$ 3,128.00
Columbus, Ohio……………………………………………………………….$ 2,732.00
Seattle, Washington……………………………………………………………$ 1,396.00
Hotel room (Fallsview Plaza Hotel)………………………………………….$3, 702.00
Transportation (arrival from and departure to airport)………………………..$1, 449.00
Transportation (used for outings)……………………………………………..$ 2,684.50
Gifts (customized watches)……………………………………………………$3, 850.00
Dining………………………………………………………………………….$ 9,676.76
Room Service…………………………………………………………$ 947.35
Keg Steakhouse……………………………………………………….$ 1,337.70
Rainforest Café………………………………………………………..$ 755.95
Minolta Tower…………………………………………………………$ 1,141.30
Creekside Café…………………………………………………………$ 312.38
Eastside Mario’s Italian Eatery……………………………………….$1,280.57
Japanese Restaurant Yukiguni…………………………………………$ 1,028.45
Red Chateau……………………………………………………………$ 1,185.00
Krieghoff Gallery-Café…………………………………………………$ 437.49
Watermark Restaurant………………………………………………….$ 1,250.67
Entertainment……………………………………………………………………$ 8,871.00
Rolling Meadows Golf Club……………………………………………..$ 345.00
Shopping………………………………………………………………….$ 6,000.00
Air tour……………………………………………………………………$1,180.00
Boat tour………………………………………………………………….$146.40
Niagara on the Lake………………………………………………………$1,200.00
Exhibit 2
Niagara Falls
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