Pepsi

BADAL DO ZAMANA

The Choice of a New Strategy

PRESENTED BY

Fahad Abbas Noor-Us-Saba Adeel Jabar

Introduction

Pepsi is a carbonated soft drink soft produced and manufactured by PepsiCo. The drink was first made in the 1890s by pharmacist caleb bradham in New Bern ,North carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi Variants produced over the years since 1898. Pepsi International is a world renowned brand. It is a very well organized multinational company, which operates almost all over the world. They produce, one of best carbonated drinks in the world. Pepsi is a symbol of hygiene, 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.

Vision & Mission Statement

Vision Our vision is 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. 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.

Pepsi In Pakistan

The market in Pakistan is surely dominated by Pepsi It has proves itself to be the No.1 soft drink in Pakistan. Nowadays Pepsi is recognized as Pakistanis National drink. In 1971, first plant of Pepsi was constructed in Multan, and from their after Pepsi is going higher and higher. Compared with other Cola in the market, it is a bit sweeter and it contributes greatly to its liking by all.

SWOT

Strength
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Company has a very established name and a good reputation. Pepsi has large market share than its competitors. As the target customers of Pepsi is young generation, so Pepsi has more brand loyal customers. Pepsi is an international company and it has a very strong position internationally. The environment of factory is very good and attractive. Pepsi spends a lot of budget on its advertising. Pepsi has a very vast distribution channel and it is easily available everywhere. Employees are also motivated. Pepsi offers many discount schemes for customers time to time. Pepsi Cola is sponsoring sports, musical concerts, walks.

SWOT Cont

Weaknesses
1.
2. 3. 4.

5.

6. 7. 8.

Pepsi does not offer any sort of incentive or discount to its retailers. Pepsi target only young customers in their promotions. Pepsi tin pack is not available in far off rural areas. Pepsi is not considering many potential outlets like hotels, college canteens etc. Unavailability of all products of Pepsi at the same time at the same outlet. Offering low margins to its retailers Political Franchises Not all the PepsiCo products bear the company name

SWOT Cont

Opportunities
1. 2. 3. 4. 5.

6. 7.

8.
9. 10.

Demand of Pepsi is more than its competitors. Increase in population 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. Increasing demand of beverages among young generation will increase growth rate in this industry. Usage of products among target market consisting young generation has been increasing day by day. Changing Social Trend Distribution of snack foods Diversification

SWOT

Threats
1. 2.

3.

4.
5. 6. 7. 8. 9. 10.

Tough rivalry among competitors Cola drinks are not good for the health so the awareness level of the people is in creasing which is a big threat to the company. Economic downfall might bring meaning full damages. Government regulations Law & order situations of the country Non-Carbonated Substitutes Political Instability Threat of Labor Strikes Shortage of resources Shortage of electricity

PRESENTED BY

NOOR-US-SABA

Internal Factors Evaluation

It is based on thorough review of the corporation, product category, competition, customers, identities and evaluates the internal strengths and weakness of the companies. Its include Strengths & Weaknesses

External Factors Evaluation

It is based on thorough review of the Economic, Demographic, Technological, Political & Legal, Social & Cultural Factors. Its include Opportunities & Threads

PRESENTED BY

ADEEL JABBAR

TWOS Matrix Of Pepsi

We have discussed SWOT analysis of Pepsi-Co in our previous slides and now here we are going to discuss the TOWS Matrix of Pepsi-Co.

SO Analyses & Developing Strategies

S6+O1

S6=Pepsi spends a lot of budget on its advertising O1=Demand of Pepsi is more than its competitors

Pepsi has a budget capacity to avail or maintain its products demand.

Advertising/Promotional Strategy in order to maintain or increase its demand.

S7+O3

S7=Pepsi has a very vast distribution channel and it is easily available everywhere. O3=The company may also diversify its business in some other potential business

Pepsi has a strong and wide distribution channel which will help in placement of new products also.

Product diversification

ST Analyses & Developing Strategies

S6+T1+T2

S6=Pepsi spends a lot of budget on its advertising T1=Tough Rivalry Compaction T2= Cola drinks are not good for the health so the awareness level of the people is in creasing which is a big threat to the company.

Pepsi has a huge budget for advertising.

Advertising/Promotional Strategy in order to place its positioning step ahead among its competitors. Awareness Campaigns in order to increase people awareness about products benefits while using its brand.

S4+T3+T9

S4=Pepsi is an international company and it has a very strong position internationally. T3=Economic downfall might bring meaning full damages. (Cost of raw material, purchasing power etc) T9=Shortage of electricity

Wide Target market and huge market segmentation.

Market Development will help to maintain its profits if any undue or uncertain events will occur. Backward Integration will have its own electricity generation equipments

WT Analyses & Developing Strategies

W6+T1

W6= Political Franchises T1=Tough Rivalry Compaction

Political Franchises may lead to the conflicts and it could be the strength for the competitors.

Forward Integration In order to have its own distribution channels

W7+T1

S4=Not all the PepsiCo products bear the company name. T3=Tough Rivalry Compaction

Promotional Campaign for individual products

Promotional Campaign will help to increase awareness among people about every products of the company.

WO Analyses & Developing Strategies

W5+O8

W5= Offering low margins to its retailers O8= Distribution of snack foods

Local brands of snack foods provides higher margins.

Pricing strategy will enhance the retailers interest to stock companys snack products.

W4+O1

W4=Unavailability of all products of Pepsi at the same time at the same outlet. O1=Demand of Pepsi is more than its competitors.

Unavailability of every product might lead bad image on the customers which will directly benefits to the competitors.

Placement strategy is more important in order to have every products of the company at the same outlet.

SPACE Matrix
1. Competitive Advantage
Reputation Large Market Share Wide Distribution Channel Customer Loyalty -5 -4 -5 -4 +5 +5 +5 +5 +5 +6 +6 -2 FS+ES = +3 Mean= -4.50

2. Financial Strength
Financially Sound High Return of Capital High Return On Assets Mean= +5

3.Industrial Strength
High industry Growth Rate Potential Industry Increase in Population Increase in use of beverages Mean = +5.5

4. Economic Strength
Economic Stability CA + IS = +1.0 Mean = -2

QSPM

SPACE MATRIX

Conclusion
Pepsi is a well renowned company and it has maintained its position well by understanding the client psychology.

By ensuring quality. By introducing ingenuity in products. By enlarging its product base . By keeping economic factors in view. By intense and jazzy advertisements.