3. EXECUTIVE SUMMARY :
Pepsi is the world renowned brand. It is a very well organized multinational
company, which operates almost all over the world. In Pakistan It also has proved itself to
be the No.1 soft drink.
Revenues generated PepsiCo in the Pakistan and its eight bottlers Rs91 billion for the
financial year ending June 30, 2013,
Pepsi has a significant market share 65% in the Pakistan and dominated as a market
leader but Pepsi has lost market share due to Coca-Cola sponsorship of Coke
Studio, previous Pepsi market share is almost 75% that’s why management changed
marketing technique and Pepsi associate with music and sponsor a music show.
Now Pepsi launch a new soft drink and the name is “PEPSI PERFECT “ a vitamin-enriched
Pepsi, with 50% less sugar than regular Pepsi, and black in color and flavor stronger than
regular Pepsi.
Pepsi Perfect target market is generally anyone between the ages of 15 to 50 , specially
those peoples they are health concious and those they want to purachase novelty things.
They advertise heavily in Universities and Schools surroundings , TV
channels, Promotions, Sign boards and restaurants.
As far as packaging and distribution concern, packaging is different from the previous
one’s in which staw is built-in in the bottle and distribute this product through it’s 08
bottler in Pakistan. These bottlers are Pepsi's strength. Pepsi has given franchise to these
bottlers. Bottlers, produce, distribute and help in promoting the brand.
4. INTRODUCTION TO THE COMPANY:
Pepsi is the world renowned brand. It is a very well organized multinational
company, which operates almost all over the world. They produce, one of the best
carbonated drinks in the world. Pepsi is a symbol of quality and service, all over the world.
Pepsi is producing Cola for more than 100 years and it has dominated the world market for
a long time. Its head office is in New York.
The market in Pakistan is surely dominated by Pepsi. It has proven itself to be the No.1 soft
drink in Pakistan. Now days Pepsi is recognized as Pakistanis National drink. In 1971, first
plant of Pepsi was constructed in Multan, and from there after Pepsi is going higher and
higher. Pepsi is the choice soft drink of every one. It is consumed by all age groups because
of its taste compared with other soft drinks in the market. Consumer’s survey results
explain the same outcome and Pepsi has been declared as the most wanted soft drink of
Pakistan.
5. MISSION STATEMENT:
“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.”
VISION STATEMENT:
“To be the world's best beverage company”. Being the best means providing outstanding
quality, service, cleanliness and value, so that their every customer is contented and happy
with their products.”
FRANCHISES:
Pepsi Cola International has given franchises all over Pakistan. These companies have
installed their plants in different parts of Pakistan.
Pepsi Cola provides consumers place utility which is, where ever and whenever you want
it, you get it! Pepsi’s channel of distribution is very aggressive according to the
consumers, manufacturers and distributors. Pepsi has 08 different units in different areas of
Pakistan, which make the Pepsi easily available all over the country.
6. COMPETITORS:
Company who directly target your customers.
The marketing concept states that to be successful, a company must provide greater
customer value and satisfaction than its competitors do.
Pepsi has a tough competition with Coca Cola while it faces a little competition with the
local producers etc. The local producers hardly affect the sales of Pepsi in the market.
There are different types of competitor in the market.
Close Competitor:
Pepsi and Coke are close competitors. It means that both have direct competition in the
market, their products such as PEPSI PERFECT & VITAMIN WATER are slightly substitute for
one another. Both the products can influence the market share of one another through
effective strategies.
Distant competitors:
Pepsi cola and Nestle juice are distant competitors of one another. It means that their
products satisfy the same want but they are in indirect competition with one another.
7. Strong Vs Weak:
Coca Cola and Pepsi are strong competitors. In Pakistan Pepsi is the market leader
and Coca Cola is its competitor. The Pepsi makes defense strategies so that it can
maintain its position in the market. While Coca Cola is a challenger and it makes
attack strategies so that it can become the market leader.
Pepsi and Pakola are weak competitors. Pepsi is the market leader and Pakola is the
follower. Pepsi is not in direct competition with the Pakola. It means that Pakola has
little effect on the sales of Pepsi.
SWOT ANALYSIS OF PEPSI:
SWOT Analysis is also called situational analysis which includes strength, weakness,
opportunity and threats. Swot analysis plays a vital role in the growth of a business.
STRENGTHS:
High quality soft drink.
Suitable brand name.
Good/unique Packaging.
Company has a very established name and a good reputation.
Pepsi has large market share than its competitors.
Strong research & development.
8. Pepsi spends a lot of budget on its advertising.
Pepsi has a very vast distribution channel and it is easily available everywhere.
Strong relationship with bottlers.
WEAKNESSES:
Pepsi does not offer any sort of incentive or discount to its retailers.
Pepsi target only young customers in their promotions.
Demand of disposal bottle is declining.
Pepsi tin pack is not available in far off rural areas.
Pepsi is not considering many potential outlets like hotels, college canteens etc.
OPPORTUNITIES:
Increase in consumption of soft drinks by the consumers.
Population growth.
Flexible Goverment policy.
Pepsi have enough funds to expand their business in Pakistan.
Company may start entering rural areas also.
The company may also diversify its business in some other potential business.
Increased interest of people in musical groups, cultural shows and sports has provided
an opportunity for Pepsi to increase its sales through them.
9. THREATS:
The main competitor of the company is the Coca Cola.
Cola drinks are not good for the health so the awareness level of the people is
increasing which is a big threat to the company.
Low purchasing power of the peoples.
Law and order situation has a great impact on company sales.
High inflation in the Pakistan.
Increasing interest rate.
10. MARKET ANALYSIS:
MARKET SEGMENTATION:
PEPSI PERFECT divide the target market in to different groups. They may differ in wants,
resources, locations and buying practices. Through market segmentation companies can
be reached more efficiently and effectively with products and services that match their
unique needs.
PEPSI PERFECT Segmentation is done on the basis of following factors.
GEOGRAPHIC SEGMENTATION:
In geographic segmentation, PEPSI PERFECT market is sub divided on the basis of area.
Region: Regional differences exist in respect of demand for products. For example,
PEPSI PERFECT buyers from Sindh are different from the buyers in Punjab.
Urban/Rural: There are differences in buying behaviour of urban and rural customers.
Accordingly, PEPSI PERFECT marketing strategies designe depending upon their likes,
dislikes, moods, preferences, fashions and buying habits.
11. Locality: PEPSI PERFECT buying is also reflected by the locality within a particular city. For
instance, there are differences in terms of buying patterns of people residing at Korangi
and Defence, within a city.
DEMOGRAPHIC SEGMENTATION:
Company study PEPSI PERFECT market at the different aspects of population. Markets can
be divided on demographic factors like age, gender, education etc. The various
demographic factors are :
Age: Analysing markets by age is to divide the total population into age groups and
analyse the wants and needs of each group.
Income: PEPSI PERFECT Buying patterns depends on income of the consumers. No two
individuals or families spend money in exactly the same way that’s why company launch
economy packs of PEPSI PERFECT.
Family Size: The consumption patterns of PEPSI PERFECT definitely vary with the number
of people in the household that’s why company introduce 1.5 ltr & 2.25 ltr bottles in the
market.
Race: Consumption patterns of PEPSI PERFECT differ on the basis of race because market
research if first 15% peoples purchased & used your product which have company launch
others 85% peoples follow them.
12. BEHAVIOURAL SEGMENTATION:
Buyers are divided into groups on the basis of their response e.g usage rate, user
status, loyalty status, buying motives, and so on.
Usage Rate: One possible way to define target market is by product usage. There can be
heavy users, medium users, light users, and nonusers of Pepsi products. Targeting on the
basis who want to increase consumption by present users and to convince and introduce
new product such as PEPSI PERFECT to nonusers and to become users.
User Status: PEPSI PERFECT market can be segmented on the basis of user status OF Pepsi
products such as: non-user, ex-user, potential user, first-time user, regular-user, & so on.
Readiness Stage: PEPSI PERFECT market can be segmented on the basis of people’s
readiness to buy the product. Some people are well informed and are interested to buy
the product. Some other may be well informed but not interested to buy the product.
Buying Motives: Buyers buy the product with different buying motives such as
economy, convenience, prestige, etc. Accordingly PEPSI PERFECT promotional appeals can
be directed to the target audience.
13. CUSTOMER ANALYSIS:
There are three types of customers.
1. Consumers (Public)
2. Business (Companies)
3. Government (Govt Offices)
Pepsi Perfect main focus is the consumers which are the end users. Company has to
make its marketing strategies keeping in view the consumer buying behavior. To forecast
the behavior of the consumer is a business problem. Physical aspect of the consumer can
be satisfied but it is difficult to satisfy the consumer psychologically. Consumer buying
behavior is affected by certain factors like Cultural factors, Social factors, Personal factors
and Psychological factors. So the producer should keep these factors in Mind while
promoting their product so that they can acquire the customer and increase their market
share.
There are different consumers in a society whose behavior is not the same. Every
consumer has a different perception of different products. Some consumers are
impressed by one quality of the product which may be in the view of other consumer
not that impressive. So to deal with different consumers in a society one should know
about the consumer buying behavior process which may help in making a true picture of
their product in the mind of the consumers.
14. About 75 million cases a year for Pepsi alone; the total beverage market is about 120
million cases of which 65% per cent are Pepsi products; about 20 to 22 per cent Coca-Cola
products and others
Total annual sale of soft drink in Pakistan 120 million.
Pepsi annual sales in Pakistan 75 million.
Market share of Pepsi 65%.
More than 2 millions peoples used Pepsi products daily.
Consumption growth 1.7 % per year.
15. MARKETING STRATEGIES:
PRODUCT:
“PEPSI PERFECT “ a new soft drink will launch by Pepsi, a vitamin-enriched Pepsi, with 50%
less sugar than regular Pepsi, and black in color and flavor stronger than regular Pepsi.
Pepsi company will launch new product extension in the market due to consumers
phychological factors. Thus Pepsi Cola satisfies the consumer’s needs efficiently by
launching a desired product.
Carbonated drinks have become part of the culture in Pakistan and multinational
companies have maintained standards over the years to provide the nation with highquality drinks.
Pepsi is the most popular and leader brand in the Pakistani market and is consumed by
children and adults alike. Pepsi is a responsible corporate brand of Pakistan and have
contributed a lot to the economy.
PRICE:
The amounts of money charged for a product (PEPSI PERFECT). Price of product should be
that which gives maximum benefit to the company and which gives maximum satisfaction
to the customer.
Following factors Pepsi kept in mind while determining the pricing strategy.
Price should be set according to the product demand of public.
16. Price should be that which gives the company maximum revenue.
Price should not be too low or too high than the price competitor is charging
from their customers otherwise nobody will buy your product.
Price must be keeping the view of your target market.
Rates:
250 ml-----------------------------------RS. 25.00/500ml------------------------------------RS. 40.00/1000ml----------------------------------RS. 55.00/1500ml----------------------------------RS. 80.00/2250ml----------------------------------RS. 100.00/PROMOTIONS:
In Pakistan Pepsi is the most liked soft drink especially by young generation for this
reason they started monitoring the habits of the generation. Students were crazy about
cricket and usually liked to idealize them so in order to increase their sales the Pepsi cola
company paid high amounts of money to the cricketers to act as their spokes men.
17. The Pepsi cola company has after doing research also has introduced different size of
bottles offered at lower prices so that everyone can afford them.
Frequency of the Pepsi ads varies from time to time. When the season is on Pepsi do
heavy advertisement especially in ramzan days or eid occasions.
PLACEMENT/DISTRIBUTION:
The Pepsi uses the following two channels for the distribution of their products.
INDIRECT DISTRIBUTION:
In indirect distribution involves agency holders (Franchises).
DIRECT DISTRIBUTION:
The factory vehicles operate & selling bottles.
18. CONCLUSION:
Pepsi launching a new product called as “PEPSI PERFECT” it’s a vitamin en-riched
soft drink due to market trend changed consumers mostly prefer vitamins and
energy drinks instead of soft drinks because consumers are health concious. Pepsi
is a well known company and it has maintained its position well by understanding
the client psychology, by ensuring quality, by keeping economic factors in view and
by advertisements.
SUGGESTIONS:
The marketing world is full of surprises. Who could imagine that Coca Cola would
be overtaken by Pepsi? If Coke could be overrun by Pepsi, it would be no wonder
that Pepsi might be overtaken by some other beverage. The need then is to
combine quality along with that, the reputation of the company has to be kept
robust.
Today we live in a fast moving world where novelty and newness count a lot. Fresh
efforts, newness of approach must remain the principles of a well marketing
strategy. A continuous bombardment in advertisement would convince the clients
that Pepsi is a part of their lives. Pepsi to be an essential ingredient of their life.
