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Name: Muhammad Yasir Amin

Roll No: 52
Date: 2/12/2019
Submitted to: Dr. Asif Yasin

Department Of Commerce
Institute of Computing BZU MULTAN

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CONTENT

Topic

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no
History_____________________________________________________ 4

 PepsiCo. Headquarters………………………………………………… 5
 Riaz Bottlers Private Limited, Pakistan……………………………….. 5
 Ingredients……………………………………………………………….. 5

Exclusive Summary___________________________________________ 6

 Current Market Situation………………………………………………... 6


 Overall Market Share ……………………………………………………. 6
 Market Description ………………………………………………………. 7
 Slogans ………………………………………………………………….. 7
 Product Review…………………………………………………………. 9

Competitive Review___________________________________________ 9

 Distribution Review………………………………………………………. 9
 Advertisement Review…………...……………………………………… 10

SWOT Analysis______________________________________________ 11

 Strengths…………..……………………………………………………. 12
 Weaknesses……………………………………………………………. 12
 Opportunities………………………………………………………….. 12
 Threats…………………………………………………………………... 12
 Product Life Cycle……………………………………………………… 12

Marketing Objective__________________________________________ 13

 Marketing Strategy ……………………………………………………… 13


 Positioning ………………………………………………………………. 14
 Branding………………………………………………………………….. 15
 Product Strategy………………………………………………………… 15
 Price Strategy…………………………………………………………… 15

Market Research____________________________________________ 16

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 Factors Influencing Consumer Choice ……………………………….. 16
 Budgeting and Controlling ……………………………………………... 17
 Sales Analysis …………………………………………………………… 17
 Market Share Analysis…………………………………………………. 17
 Marketing Profitability Analysis……………………………………….. 18

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Type Cola
Manufacturer PepsiCo.
Country of Origin United States
Introduced 1898 (as Brad’s Drink)
June16, 1903 (as Pepsi-Cola)
1961 (as Pepsi)

Related Products Coca-Cola


RC Cola

History
PepsiCo. Is a world leader in convenient snacks, foods and beverages with revenues of than $39
billion and over 185,000 employees? The company consists of PepsiCo Americas Food (PAF), PepsiCo
Americas Beverages (PAB) and PepsiCo. International (PI). PAF includes Frito-Lay North America,
Quaker Foods North America and all Latin America food and snack businesses, including Sabrina’s and
Games a businesses in Mexico. PAB includes PepsiCo. Beverages North America and all Latin American
beverage businesses. PI includes all PepsiCo. Businesses in the United Kingdom, Europe, Asia, Middle
East and Africa. PepsiCo brands are available in nearly 200 countries and generate sales at the retail level
of more than $98 billion. Some of PepsiCo’s brands names are more than 100 years old, but the corporation
is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi Cold and Frito Lay.
Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade,
in 2001. PepsiCo offers product choice to meet a broad variety of needs and preference from fun for you
items to product choices that contribute to healthier lifestyles.

PepsiCo’s Mission Is:


“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.”

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PepsiCo Headquarters
PepsiCo World Headquarters is located in Purchase, New York. The seven-building headquarters
complex was designed by Edward Durrell Stone, one of America’s foremost architects.

Riaz Bottlers Private Limited, Pakistan


Bottlers (PVT) Limited (RBL) incorporated in Pakistan as a private limited company in 1976. RBL
is the franchise holder of Pepsi cola international with seven brands. Like PEPSI, PEPSI MAX, 7UP,
MARINDA, MOUNTAIN DEW.

They have recently launched Aquafina and they are in process of moving towards some other products.

RBL today is one of the best National Companies in Pakistan. At RBL, they believe that their existence and
success is more than just meeting their business objectives and they are proud of the success that the
company has achieved.

Together their people provide the skills, knowledge and expertise to deliver the quality of service that their
customers expect and upon which they reputation depends.

Ingredients
Pepsi-Cola contains basic ingredients found in most other similar drinks including carbonated
water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine, citric acid and natural flavors.
The caffeine-free Pepsi-Cola contains the same ingredients minus the caffeine.
The original Pepsi-Cola recipe was available from documents filed with the court at the time that the Pepsi-
Cola Company went bankrupt in 1929. The original formula contained neither cola nor caffeine.
Ingredients as seen on products:
Carbonated water, glucose-fructose and/or sugar, caramel color, phosphoric acid, caffeine, citric acid,
flavor.

Amount per 100 ml


Energy 100.5 kJ
Fat 0g

Sodium 0.98 mg
Carbohydrates 11.74 g
Sugar 11.04 g
Protein 0g

Caffeine 10 mg

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Executive Summary
Pepsi Cola, Pepsi Cola beverages business was found at turn of the century by Caleb Braham a
New Bern N.C druggist who formulated Pepsi Cola. Pepsi Cola Company now produces and markets
nearly 200 refreshment beverages to retail, restaurants and food service customers in more than 190
countries and territories around the world and generates revenue of over 18 billion dollars. Although Pepsi
holdings over the years have become diverse in such fields as the snack industry and restaurants industry
this portfolio will discuss its core business and its highly successful business of beverages. The soft drink
industry customer base is probably the widest and the deepest base in a world that is flooded with many
categories. According to Beverage Digest the customer based for soft drinks is whopping 95% of regular
users in United States. This represents a large field of potential customers of Pepsi Cola. Yet although
Pepsi could adjust the majority fallacy to market their product, these terms adopted in Pepsi’s advertising
campaigns are referring to the markets that marketers refer to as Generation X. The Generation X consumer
is profiled to be between the ages of 18 and 29. They have high expectations in life and are very mobile
and active. They adopt a lifestyle of living for today and not worrying about long term goals. Those Pepsi’s
main emphasis on this segment they also have a focus on the 12 to 18 year old market. Pepsi believes if
they can get this market to adopt their product then they could establish a loyal customer for life. Pepsi Cola
is situated in an industry that is dominated by two competitors, Coca-Cola and of course themselves.
Although, Pepsi and Coke basically go after all customers who purchase soft drink beverages Coca-Cola
targets its products as the head of household.

Current Market Situation


Pepsi promote itself as the choice of “New Generation”. Pepsi gets this advantage by implementing
such large marketing projects like “Project Globe”. This marketing plan, which Pepsi spent 637 million
dollars over five years, is to introduce the new rich deep blue coloring of its packaging. The rich deep blue
coloring represents eternal youthfulness and openness. Marketing plans like this made Pepsi one of its
coolest brands recognized among teens in the top five and the only beverage product in this category.
Another competitive advantage that Pepsi has is in their product Mountain Dew. Mountain Dew has grown
a staggering 74.1% over the last five years. Mountain Dew has a 6.3% market share and has recently
become the #4 soft drink in America. At this current pace Mountain Dew will become the first non-cola to
reach the 1billion gallon mark in one year. Pepsi has an advantage as an innovator in their field. They will
be the first soft drink makers to introduce a new one-calorie soda called Pepsi One with, just approved by
the FDA, Ace-K. This new sweetener is slated to be a breakthrough for diet soda in which it limits the after
taste associated with diet soda and brings more cola taste to the product. Pepsi has always been a strong #2
against Coke and have become one of the world’s largest companies. As far as market share Pepsi stands
strong. Here are few vitals of market:

Overall Market Share


 PEPSI COLA 43.9%
 COCA-COLA 30.9%
 DIET PEPSI 5.9%
 DIET COKE 8.5%
 MOUNTAIN DEW 6.3%
 SPRITE 6.2%
 7-UP 2.3%
 MIRANDA 2.8%

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 FANTA 1.0%
Pepsi is situated in an environment that is ever changing and dynamic.

Market Description
Pepsi has become the largest selling soft drink in the world it is likely by people of all ages
belonging to different fields of life belonging to different casts’ religions.
A recent survey shows about 90% of the world population when asked which soft drinks do they prefer
replied Pepsi. When asked for the reason for this liking they replied not only does Pepsi gives them higher
quality but also gives a large variety of other flavors and new drinks.

Slogans
One of the main reasons for the popularity of Pepsi is the use of slogans which they use to
abstract the customers. Different slogans have been used to attract different people of different ages. They
use different slogans in different countries around the world.

Following are some of the slogans used by Pepsi over the years.
1939: “Twice as much as a Nickel’
1950: “More Bounce to the Ounce”
1950: “Any Weather is Pepsi Weather”
1957: “The Light Refreshment”
1958: “Be Sociable, Have a Pepsi”
1961: “Now it’s Pepsi for Those Who Think Young”
1963: “Come Alive, You’re in the Pepsi Generation”
1967: “(Taste that beat the other cold) Pepsi pours it on”
1969: “You’ve got a Lot to live, and Pepsi’s got a Lot to Give”
1975: “Have a Pepsi Day”
1977: “Join the Pepsi People (Feeling Free)”
1980: “Catch That Pepsi Spirit” David Lucas Composer
1981: “Pepsi’s got your taste for life”
1983: “Pepsi Now! Take the Challenge!”
1984: “Pepsi: The Choice of Generation” (Commercial with Michael Jackson, featuring Pepsi version of
Billie Jean)
1986: “We’ve got the Taste” (Commercial with Tina Turner)

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1990: “You have got the right choice baby UH HUH” (sung by Ray Charles for diet Pepsi)
1991: “Gotta have it” /”Chill Out”
1992: “Be Younger, Have fun, Drink Pepsi”
1993: “Right Now” Van Halen Song for the Crystal Pepsi ad
1994: “Double Dutch Bus” Pepsi song sung by Brad Bentz
1995: “Nothing else is a Pepsi”
1996: “Pepsi: There’s nothing official about it”,(During the Wills World Cup (Cricket) held in India/
Pakistan/ Srilanka)
1997: “Generation Next”, “With the Spice Girls”
1998: “Yeh Dil Mangey More”(In Hindi/Urdu meaning “ My Heart Want More” (India/ Pakistan)
1999: “Ask for More”/”The Joy of Pepsi Cola” (Commercial with Britney Spears/Commercial with
Mary J. Blige)
2000: “Aazadi dil ki” (In Hindi meaning “Freedom of Heart”)(India)
2003: “It’s the Cola” / “Dare for More” (100th Anniversary Commercial)
2003: “Yeh Pyas Hai Badi” (In Hindi meaning “This Thirst is too much” ( India)
2005: “Wild Thing/Ask For More” (With Jennifer Lopez & Beyonce Knowles)
2006: “Why you Dogging’ Me” / “Taste the one that’s forever young” Commercial featuring Mary J.
Blige
2007: “More Happy” / “Taste the one that’s forever young” (Michael Alexander)
2008: “Yeh Hai Youngistan Meri Jaan” (India)
2008: “Pepsi Stuff” Super Bowl Commercial by Justin Timberlake
2008: “Pepsi is #1” TV commercial (Luke Rosin)
2008: “Pepsify karo gai!” Commercial (In Urdu meaning “Wanna Pepsify!”) (Pakistan) (Featuring:
Adnan Sami and Annie (Pakistani singer))

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Product Review

Competitive Review
The competitors to the products of the company mainly lie in the non-alcoholic beverage industry
consisting of juices and soft drinks. The key competitors in the industry are as follows:

Coca-Cola
The Coca-Cola challenge is to keep up with archrival, the PepsiCo. Company never ends for the
World’s #2, carbonated soft-drink water. The company’s soft drink includes Coke, Sprite and Fanta. Coca-
Cola is not the company’s only beverage; Coca-Cola sells New Chilled Minute Maid juice brands. Aquarius
sports drink, and Kinley water. Pepsi and Coca-Cola hold together, a market share of 95% out of which
60.8% is held by Coca-Cola and the rest belongs to Peps

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Nestle
Nestle does not give a tough competition to Pepsi as it mainly deals with milk products, baby food
and chocolates. But the iced tea that is Nestea which has been introduced in to the market by Nestle provides
a considerable amount of competition to the products of the Company. Iced tea is one of the closest
substitutes to the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks. The
flavored milk products also have become substitutes to the products of the company due to growing health
awareness among people.

Red Bull
Red Bull in Pakistan is one of the most trusted brands as it has been operating ever since time and
people have laid all their trust in the company and the products of the Company. Red Bull has introduced
an Energy Drink in the market. These products give a strong competition to Maaza and to latest product
Minute Maid Pulpy Orange.

Distribution of Review
Decisions with respect to distribution channel focus on making the product available in
adequate quantities at places where customers are normally expected to shop for them to satisfy their
needs. Depending on the nature of the product, marketing management decides to put an exclusive,
selective or intensive network of distribution, while selecting the appropriate dealers or wholesalers.
 Direct distribution:
 Delivery of post mix cylinders & handling of key accounts: The key accounts are different
wholesalers, restaurants and hotels like Pizza Hut, KFC, and Metro which serve as a place

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for key sale. These are known as national key accounts and are very important in terms of
competition.
 Export parties.
 Indirect distribution:
 Through base market distributors.
 Through Outstation distributors.
Before delivering the product some certain guiding principles are followed for the assessment of
distributor’s capability:
 Applicant must have 20 to 25 vehicles (depending on the area)
 Applicant must have 20,000 cases of empty bottles.
 Applicant must deposit 1,000,000 as a security.

Pepsi Career
“Pepsi sales are next double in the summer months and into early fall. This increase, teamed with
heat of summer can wear a driver down. However, after being on the route for summer you learn to take
care for yourself.

Rise in Popularity
During the great depression, Pepsi gained popularity following the introduction in 1936 of a 12-
ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was slashed in to five cents,
sales increased substantially. With radio advertising campaign featuring the jingle “Pepsi cola hits the spot
/ twelve full ounces, that’s a lot / Twice as much for a nickel, too / Pepsi-Cola is the drink for you.”

SWOT Analysis (Strengths, Weaknesses’, Opportunities and Threats)

Strengths weaknesses
 Brand Strength  Reliant upon line extensions
 Effective stride in new markets  Reliant upon particular carbonated
Results of operations drinks
 Strong existing distribution channels  Brand dilution Entrance into difficult
none core categories
 Saturation of carbonated soft drink
segment
Opportunities Threats
 New product introductions  Strong competition
 Brand is attractive to global partners  Potential health issues
 Free Trade

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Strengths:
Pepsi has been a complex part of world culture for a very long time. The product’s is loaded
with over-romanticizing, and this is an image many people have taken deeply to heart. The Pepsi image is
displayed on T-shirts, hats and collectible memorabilia. This extremely recognizable branding is one of
Pepsi’s greatest strengths. Additionally, Pepsi’s bottling system is one of their greatest strengths. It allows
them to conduct business on a global scale while at the same time maintain a local approach. The bottling
companies are locally owned and operated by independent business people who are authorized to sell
product of the Pepsi Company. Because Cola does not have outright ownership of its bottling network, its
main source of revenue is the sale of concentrate to its bottlers.

Weaknesses:
Weaknesses for any businesses needs to be minimized and monitored in order to effectively achieve
productivity and efficiency in their business’s activities, Pepsi is no exception. Although domestic business
as well as main international markets are thriving. Being addicted to Pepsi also is heath problem, because
drinking of Pepsi daily has an effect on your body after few years.

Opportunities:
Brand recognition is the significant factor affecting Pepsi’s competitive position. Pepsi’s brand
name is known well throughout 94% of the world today. The primary concern over the past few years has
been to get this name brand to be even better known. Packaging changes have also affected sales and
industry positioning, but in general, the public has intended not to be affected by new products. Pepsi’s
bottling systems also allows the company to take advantage of infinite growth opportunities around the
world. This strategy gives Pepsi the opportunity to service a large geographic, diverse area.

Threats:
Currently, the threat of new viable competitors in the carbonated soft drink industry is not very
substantial. The threat of substitutes, however, is a very real threat. The soft drink industry is very strong,
but consumers are not necessarily married to it. Possible substitutes that continuously put pressure on both
Pepsi and Coke include tea, coffee, juice, milk and hot chocolate. Even though Coca-cola and Pepsi control
nearly 40 % of the entire beverage market, the changing health consciousness of the market could have a
serious affect. Of course, both Coke and Pepsi have already diversified into these markets, allowing them
to further significant market shares and offset any losses incurred due to fluctuations in the market.
Consumer buying power is also a key threat in the industry. The rivalry between Pepsi and Coke has
produced a very slow moving industry in which management must continuously respond to the changing
attitudes and demands of their consumers or face losing market share to competitors.

Product Life Cycle


To be able to market its product properly, a business must be aware of the product life cycle of its
product. The standard product life cycle tends to have five phases: Development, Introduction, growth,
maturity and Decline. Pepsi is currently in its maturity stage, which is evident primarily by the fact that
they have a large, loyal group of stable customers.
In foreign markets the product life cycle of is in more of growth stage, Pepsi’s advantage in this area is
mainly due to its establishment of strong branding and it is now able to use this are of stable profitability
to subsidize the domestic Cola wars.

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Marketing Objective
The objective is the starting point of a marketing plan. Objectives should seek to answer the question
“where do we want to go?” The purpose of objectives include:

 To enable the company to control its marketing plan.


 To help to motivate individuals and teams to reach a common goal.
 To provide an agreed, consistent focus all functions of an organization.

All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic and Timed.

 Specific – Be precise about what you are going to achieve.


 Measurable – Quantify your objectives.
 Achievable – Are you attempting too much?
 Realistic – Do you have the resource to make the objectives happen?
 Timed – State when you will achieve the objective?

1. Market Share Objectives:
To gain 60% of the market for soft drinks industry.
2. Profitability Objectives:
To achieve a 20% return on capital employed.
3. Promotional Objectives:
To increase the awareness of the product in the market.
4. Objectives for Survival:
To survive the current market war between competitors.
5. Objectives for Growth:
To increase the size of the worldwide Coca-Cola enterprise by 10%.

Marketing Strategy

Segmentation Variables Data

Geographic
World Region Asia

Country Pakistan

Cities All major cities of Pakistan

Density Urban

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Climate Hot and Dry

Demographic
Age 14-30+

Gender Male, Female

Family size 1-2, 3-4, 5+

Family lifecycle Married, Unmarried

Income Rs.10,000

Occupation From middle class to upper class

Education School, Colleges and Universities

Religion Major religion Islam, Christianity, Hinduism

and small percentage others

Race Asian

Nationality Pakistani

Psychographic
Social Class Middle class, Upper Class

Lifestyle Actualizes, Fulfilled, Believers, Achievers, Strivers,


Experience’s maker and Strugglers.

Behavioral
Occasions Parties, Birthdays, Sports and Regular Occasions

Benefits Quality and Taste

User Status First time user

Loyalty Status Strong

Readiness Stage Aware and Interested

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Positioning
Positioning is the process of creating the image the product holds in the mind of consumers,
relative to competing products. Coca-Cola and Pepsi both make soft drinks; although Coca-Cola may try
to compete, they will still be seen as down market from Pepsi. Positioning helps customers understand
what is unique about the products when compared with the competition. PepsiCo plan further to create
positions that will giver their products greatest advantage in their target markets. Pepsi has been
positioned based on the process of positioning by direct comparison and have positioned their products to
benefit their target market. Most people create an image of a product by comparing it to another product,
thus evident through the famous battles between Coca-Cola and Pepsi products.

Promotion
Branding:
Pepsi utilizes the individual brand strategy as Pepsi’s major products have given their own brand names
for example: Miranda, 7 Up, etc. although they maybe presented as different lines they operate under the
name of Pepsi.
Packaging:
Pepsi has benefited from product with incentives and endorsements on the labeling as a promotional
strategy to increase its volume of sales and revenue.

Product Strategy

Core Benefit:
A drink for refreshment without alcohol.
Actual Product:
Brand Name: Pepsi
Quality Level: Excellent
Design & Packaging: Regular (275 ml), Disposable (500 ml), Regular (1 liter), Disposable (1.5 liter),
Jumbo (2.25 liter).
Feature: Black color with Aspartame (NutraSweet), Sucralose, and Acesulfame Potassium.
Augmented Product: Status (soft drink), Features promoting the website, Remove thirst.

Pricing Strategy
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In Pakistan, Pepsi Cola is being operated by Pakistan Beverages. Pepsi is available in the majority of
stores, outlets and hotels. It has a huge market of customers. Basically it is segmented for the younger
generation of Pakistan but because of its customized offering it is being consumed by different age groups
in our society. The company has offered Pepsi in different quantities and prices in our market. Its market
oriented statement is “Dare for more”.

Prices Quantity

Rs. 25/- 250 ml


Rs. 50/- 500 ml

Rs. 70/- 1 liter


Rs. 90/- 1.5 liter

Rs. 130/- 2.25 liter

In our society Pepsi often reduces its prices during the month of Ramadan and at the time of Eid.
In this way they adopt promotional pricing strategy. Even if you notice on their offerings they are using
product-line pricing strategy as they are offering different quantities with different amount of money. In
different sectors, Pepsi have also adopted segmented pricing strategy as its prices are much higher in
luxurious hotels and other sectors. Its main competitor is Coca-Cola when it comes to soft drinks. Coca-
Cola has also made various efforts through different pricing strategies and offerings but Pepsi have also
responded effectively towards their actions through initiating price cuts at the right time for example, in
the month of Ramadan whenever Coca-Cola reduces their prices, Pepsi also responds through price cuts
and eventually after the period it raises it prices.

Marketing Research
When attempting to implement a new marketing plan a business must address its target market and
conduct the relevant information to insure new marketing plan both differs from the old and its better for
the business. When conducting marketing research a business must first define the problem and then
gather the appropriate information to solve the problem. There are three types of information a business
can gather to solve its problem.
1. Exploratory research which clarifies the problem and searches for ways to address it.
2. Descriptive research is used to measure and describe things like the market potential for a product
and characteristics of the target market.
3. Casual research is used to test a hypothesis about a cause and effect relationship.

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Pepsi through its market research addressed all three types of research to define the problem raised by
shareholders and gathered information to serve their needs.

Factors Influencing Consumer Choice


When making decisions on products a business must look at factors that influence consumer
choice such as psychological factors, Socio factors, Economic factors and Government factors.
Psychological Factors:
Such as motivation, perception, lifestyle, personality and self-concept, learning and attitudes
influences the consumer’s behavior towards a product and Pepsi has addressed this issue by introducing
Diet Pepsi to satisfy different lifestyles.
Socio Cultural Factors:
Such as culture, subculture, socio-economic status, family and reference groups influence the
consumer’s behavior towards a product.
Economic Factors:
Such as Disposable Income and discretionary income. Coca-Cola has addressed this side of the
influence by maintaining a low price on the price of its products.
Government Factors:
Such as new regulations, inflation, interest rates all influence consumer spending and choice.

Budgeting and Controlling


Monitoring and controlling allows the business to check for variance in the budge and actual.
This is important because it allows Pepsi to take necessary actions to meet the marketing objectives.
There are three tools Pepsi should use to monitor the marketing plan. They are following:

1- Sales Analysis

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The sales analysis breaks down total business sales by market segments to identify strengths and
weaknesses in different areas of sales. Sellers of Pepsi products vary from major retail supermarkets to
small corner stores. This gives products maximum exposure to customer at their convenience.

2- Market Share Analysis


Market share analysis compares Pepsi’s business sales performance with that of its competitors.
Pepsi looks to increase its market share by over 60%. With the changes Pepsi is currently undergoing,
they aim to regain an iron fist control of the market. Target market’s various age groups and lifestyles
from high school students to universities and male or female.

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Market Profitability Analysis
This analysis looks at the cost of marketing and the profitability of products, sales territories,
market segments and sales people. There are three ratios to monitor marketing profitability; they are
market research to sales, advertising to sales and sales representatives to sales. The results of these tools
can help Pepsi determine any emerging trends, such as the need for different product. Comparing these
results with actual results gives the business the idea on when to change.

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