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Originally copied from Amir Hayat Data Files. . . .

MBA 3824-FMS/MBA/F08

International Islamic University, Islamabad

zinddage@yahoo.com

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HISTORICAL BACKGROUND

Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The
drink is the invention of Caleb Bradham (left), a pharmacist and drugstore owner in New
Bern, North Carolina.
In the late 1890's, he had been experimenting with Coca and Kola extracts in the
syrup form. By mixing this syrup with carbonated water, he produced a very pleasing
beverage that not only tasted good but also made his customers and friends feel good. He
promoted it as a cure of dyspepsia (indigestion).

Initially called Brads Drink by his local friends, the drink was formally titled
PEPSI COLA in 1898. By 1902 the syrup was so popular that Caleb was devoting most
of time in the preparation, packaging, marketing, advertising, and overseeing the
distribution of it to other pharmacies. His sales increased rapidly and in1904 he bought
the Bishop Mill and converted it into his bottling plant for Pepsi Cola. In 1907, he
purchased adjoining land and built a three-story addition to the factory to
serve as office space for his new company.

By the end of 1909 Caleb Bradham had 250 franchises in 24 different states, his
businesses continued to grow till 1920 when volatile sugar prices caused the beginning of
the rapid decline in his fortune. Bankruptcy was declared in March, 1923 and the PEPSI
formula passed through the series of folding companies until 1931, when Loft Candy
Company in New York purchased it. In 1934, Pepsi began offering twice as much soft
drink for the same 5-cent price and sales soared.

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Pepsi Cola's profits reached at a total of $2, 1 million in 1936. In the early1940s
Pepsi started its campaign throughout the country. During the 1950s Pepsi crossed the
boundaries from United States to the USSR (now known as Russia) under the leadership
of Hatcher Barnet as the president of the company.

In the 1960s, Pepsi targeted young adults calling them “Pepsi Generation”. First
Can Pepsi and Diet Pepsi were also introduced during the same lime, which went all over
the world. Then the Frito Lay and Pepsi Cola merged to become Pepsi Company
Incorporation.

In the 1970s Pepsi opened its first plant in the USSR and became the single largest
soft drink brand in America. In 1977, acquisition of Pizza Hut was Pepsi first foray into
restaurants and the firm strengthened its position by Taco Bell in 1978 and Kentucky
Fried Chicken in 1986. In the early 1980s Pepsi entered the frontiers of China for the
production of soft drinks. In 1984, Pepsi's advertisement took a dramatic change as Pepsi
became "The Choice of a New Generation" and the Pepsi went to space in "space can".

In the 1990s Pepsi went global and its profits surpassed billions. In 1993 Pepsi
started using recycled plastic bottles and also established a partnership with Lipton Tea
manufacturers. During the same period of time Pepsi Foods International and Pepsi Cola
International merged, creating the Pepsi Co. Foods and Beverages Company. In 1996
Pepsi made the in-story by launching the most ambitious entertainment site on the World
Wide Web by the name of "PEPSI WORLD". It also announced its agreement with
Pizza Hut, Taco Bell and KFC to form Tricon Global Restaurants, the largest restaurant
company in the world. And in the 1998 the company celebrated its lOO11' anniversary,
and introduced Pepsi Cola the first one caloric drink.

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After the 100 years of establishment, Pepsi is still making efforts to retain its standards
and its impression throughout the world.

Pepsi scored its biggest sales in soft drinks but enjoying its large profits in snack foods.

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PEPSI IN PAKISTAN

INDUSTRY OVERVIEW

The term "Industry" refers to large manufacturing companies such as the


multinational car companies. The term "Industry" has further been divided into three
broad categories: Primary, Secondary, and Tertiary.

Primary Industries are the industries responsible for the extraction of natural
resources. They comprise of agriculture, hunting, fisheries, and forestry, mining and
quarrying.

Secondary Industries engage in the manufacturing and production of goods,


Secondary industries include businesses of construction, manufacturing of clothes, metal
products etc. They also include utilities that provide services such as gas, water, and
electricity,

Tertiary Industries comprise of those companies that are involved in the service
sector. This category includes businesses of retailers (clothes, food, and soon), banks,
insurance companies, hotels, restaurants, lawyers, doctors, teachers, etc.

In Pakistan the beverage industry is not as competitive as compared to the beverage


industry of the developed countries. In Pakistan Pepsi and Coca-Cola are the two major
shareholders of the beverage industry. To make these soft drinks highly competitive the
companies use latest technology to create year round availability and ever-lasting
impression on the minds of the consumers. The two companies, especially, in the soft
drink industry use the latest equipment in order to maintain their quality standards and
make their customers satisfied.

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Companies operating in the soft drink industry need to keep in mind the technology, the
competition, the changing demand and supply conditions, and the rules and regulations
laid down by the government. Keeping in mind these factors, Pepsi introduced a new
technique of making the soft drink using the Post Mix Machine. The machine is also
called Fountain Pepsi because the Pepsi produced by this method is very chilled and
refreshing.

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COUNTRY OVERVIEW

Throughout the world the two brands, Pepsi and Coca-Cola, have changed the
living standards of the people. Whether at school, college, university, home, or picnic,
people prefer to drink these drinks.

If we compare Pakistan with the other countries then it is a clear picture that Pepsi
has shown a great potential for growth in this region, whereas the situation in much more
different in the wrest of the world. The reason behind this success, particularly in
Pakistan, is excellent marketing with the blend of professional approach by the
administration and the management. Huge advertisements were made to create awareness
both through electronic and print media, whereas Coca-Cola suffered in this context.

The production plants of Pepsi are installed in ten different areas in order to fulfill
the increasing demand for the drink. These areas include Islamabad, Peshawar,
Gujranwala, Lahore, Faisalabad, Multan, Sukkur, Karachi, Quetta, and Gadoon. The most
successful of these plants are of Gujranwala and Faisalabad that sold 15 million cases in
the year 2000.

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LOCAL MARKET GROWTH

Local market growth signifies that what the position of different products is in the
local market, which products have captured more market share as compared to the other
products, and what type of products the consumers prefer etc.

In the area of Rawalpindi and Islamabad, Pepsi has been able to capture the maximum
market share, which is 90 percent, and the company, Haidri Beverages, has a market
share of 85 percent. The biggest competitor of the product, Coca-Cola, has failed to make
a significant impression in the market and has been able to capture a market share of only
10 percent. The Shahi Beverages, the franchisers of Coca-Cola, has a market share of
only 15 percent.

Total Market Share:

Haidri Beverages Percentage Share Shahi Beverages Percentage Share


PEPSI 90 % COCA-COLA 10 %

MIRINDA 55 % FANTA 45 %

TEEM 15 % SPRITE 85 %

7-UP 100 % No Substitute

COMPANY OVERVIEW

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HISTORICAL BACKGROUND

Haidri Beverages Private Limited is one of the companies that are working under
the license of Pepsi Cola International. It was established in 1982 and is located in
Capital Development Authority's industrial triangle on Kahuta road.

In the beginning of their operations, franchise rights were given in the areas of
Kashmir, Hazara, Northern Areas, Rawalpindi District and the Attock District.

The company started its operations by initially launching Pepsi and Mirinda in
bottles of 250 milliliters- Then to increase their product line, the company introduced

Teem for the first time in 1984 in the authorized area of franchise. In 1986, the company
also took initiative by introducing one-liter glass bottles in the area of Rawalpindi and
Islamabad.

Till the 1990s, Coca-Cola dominated the market but then Pepsi was able to capture a
greater percentage of the market share. The reason behind this success was the company's
highly professional sales force, brilliant marketing strategies, and the excellent standards
of quality.

In the year 1991, the areas of North Western Frontier Province (NWFP) established
their own separate plant in Peshawar, by the name of Northern Bottling Company (NBP).

Non-returnable glass bottles (NRPT) were launched in 1992 to give as wide range of
options to its target customers. The company started its Post Mix operations in 1996 and
the company now has 182 Post Mix machines in the entire franchise area.

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In 1985, they added Teem and in 1997, another very popular drink 7-UP became a part of
Haidri Beverages that gave added market share in the lemon-lime to the organization.

Presently the company, which is fairly young enough, is enjoying 85 percent of the
market share in the area of Rawalpindi and Islamabad and overall 75 percent of the
market share in the entire country.

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MISSION STATEMENT

“We work to increase the value of our shareholder’s


investment. We do this through sales growth, cost control
and wise investment of resources. We believe that our
commercial success depends upon offering quality and value
to our consumers and customers, providing products that
are safe, wholesome, economically efficient and
environmentally sound. We also strive to provide a fair
return to our investors while adhering to the highest
standards of integrity.”

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TARGET MARKET

The target market of Pepsi is young generation. According to Mr. P. S. Tariq, the
target market of Pepsi also includes the child who is able to pronounce Pepsi as "Bebsi".

It attracts its target market by using different techniques or different strategies.


Following are some of the plans that the organization uses.

• By opening Cricket Clubs for the young generation in which the organization hire
famous cricketers like Imran Khan, and Wasim Akram. These cricketers clubs
serve two purposes. The first is that the younger generation is provided with an
opportunity to learn playing cricket. The other is that through these clubs, the
cricketers as well as the young generation come closer to Pepsi.

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• Another way of attracting their target market is by sponsoring famous celebrities
like Junaid Jamshed, Strings and Haroon. These singers are famous among a
majority of individuals and when they perform in the concerts sponsored by
Pepsi, they also serve as a promotional tool for the organization.

• In order to attract its target market, Pepsi also provides scholarship to students
who belong to poor families and are performing the best in their respective fields.

• Another way used by the organization to attract their target audience is that they
arrange educational trips of institutes. Then they provide the students with
information regarding their working conditions and environment, their methods of
production, and the technology used etc. at the end of the trip, the organization
provides the students with the stickers of Pepsi, their posters, foot rulers, pencils,
note books, and a broacher about the history of Pepsi.

• The organization also introduces many different schemes in which the participants
can win different gifts like a CD player, T-shirts, bikes, free return tickets etc.

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Thus in this way Pepsi keeps on bringing new and attractive packages for its target
market to keep them in touch with PEPSI.

ORGANIZATIONAL STRUCTURE

Organizational structure is the formal pattern of interactions and coordination


designed by management to link the tasks of individuals and groups in achieving
organizational goals. Haidri Beverages has a Managing Director on top and there are
three General Managers (Marketing, Administration, and Technical). These departments
are further divided into marketing, MIS, Shipping, Security and Production etc.

EQUAL EMPLOYMENT OPPORTUNITY

In Pepsi, there is equal employment opportunity. For example; there are 35


female quality control inspectors, 2 female telephone operators, 1 camera room
operator, 1 receptionist, and 8 disabled persons. People from minorities and from
different provinces are also working with this company.

MOTIVATIONAL TECHNIQUE

The Human Resource Department of Pepsi Company gives following incentives and
benefits to motivate their workers.
∗ Job security
∗ Pay allowances
∗ Promotion to next designation which is purely on merit.
∗ Annual performance appraisal.
∗ The workers are offered Pepsi at Rs. 3 and Meal (every type of meal) is available
at Rs. 10.
∗ Hajj incentives.

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∗ Free dispensary.
∗ Every person has incurrence policy.
∗ Cash rewards.
∗ Bonuses.

TRAINING

Training is given to every employee for further grooming and for enhancing
their skills. For this purpose, courses are conducted, seminars are arranged, and different
workshops are held.

MACROENVIRONMENT

ECONOMIC AND BUSINESS CONDITIONS

Rate of interest also affects the sales and prices of Pepsi. At high rate of
interest, the company straight away raises their prices. At low rate of interest, reverse
takes place.
In Ramazan, they offer many schemes and benefits to the consumers. Due to
offering their bottles at low prices their profit doesn’t match their target. So to
compensate this, they increase their production and sales, in this way not only the
consumer is getting benefit but the company also succeeds in achieving the target.

POLITICAL

Political activities also have a great impact on the sales of Pepsi. Whenever there
is a change in the government, the activities of Pepsi Company also get affected. For
example, in Benazir’s government the excise duty was fixed. Many companies including
Pepsi took a great advantage out of it.

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They increased their production and earned lot of profit. But when the Nawaz
Sharif‘s government came, the policy of supervision had to be followed by everybody.
This means that they had to pay the excise duty at any cost. Pepsi pay their excise duty to
the bank before distribution.

There are specific laws and regulations which the Haidri Beverages face for the
production of their product that is there are certain taxes which are defined by the
government of PAKISTAN. For the clearance of the product they deposit certain amount
of money in the National Bank and the provides them a receipt which they show to
Deputy Superintendent, and 3 Inspectors who check the receipt and then give the
authorities a certificate for the clearance of the product.

Pollution Control
Pepsi takes special care for the environment. For the pollution control, it
has taken special measures like:
In production department, the main burner does not release smoke.
Wasted water is filtered and purifies and then release into Swaan River.
On daily basis, all bottles are disposing off by special workers.
Smoking is not allowed within the premises.

FINANCIAL ENVIRONMENT

Financial environment plays a significant role in the up bringing of any


service or product and availability and non-availability of funds creates an impact on the
success and failure of the product or services. Haidri beverages gather funds from two
different types;

The organization generates funds on their own as the sales of the product
proceeds.
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They take loan from Khyber Bank which announce specific markup for the
manufacturing of the product

ENVIROMENTAL

Lacking unlimited supplies of potable water, Pakistan has to depend on the


desalination processes of brackish water and seawater to satisfy the ever-increasing
demands.
These demands are expected to reach the 756 MGD (millions gallons per day)
only for Karachi city in the year 2005. Apart from Karachi, for the coastal areas of
Balochistan and Sindh, the only answer appears to be seawater desalination.

The beverage company, Pepsi Cola stepped into the market. In 1996, one RO
(reverse osmosis) plant was installed at Pepsi Factory, which had a capacity of 150,000
gallons per day. The American Company, Water Link, supplied plant. But the major
contribution in the share of desalination capacity came from textile industries.

Bottled-water Company Pepsi is engaged in a constant search for new water


supplies to feed the insatiable appetite of this business.

CULTURAL ACTIVITIES

Mr. Zein Abdullah, Vice President, Gulf/Pakistan, and Pepsi-Cola International,


a key sponsor of the Festival said: "To promote Pepsi's sponsorship of the event, Pepsi
will be running family pack promotion in Pakistan. Winners of this promotion will have
the opportunity to win a free trip with accommodation to Dubai during the Festival."

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"We will also be launching the first ever Pepsi Sega Middle East Championship,
which will run during the entire duration of the Festival. The Championship will allow
participants from all ages, the opportunity to compete against the clock in a fun and
competitive atmosphere while experiencing the latest hi-tech Sega games," Mr. Abdullah
said. Pepsi will also be producing special Pepsi packages with Dubai landmarks to ensure
that all visitors and residents be left with a great memory of DSF'9

TECHNOLOGY

One of the most dramatic forces shaping people's lives is Technology. Technology
comprises the knowledge, tools, equipment, and work techniques used by the
organization in delivering its products or services. Technology is often an important
factor in strategy implementation because the technological emphasis must fit the
strategic thrust. Organizational strategy, at all levels, must consider the technical
functions of the business,

Technology has the goal of creating and improving artifacts and systems to satisfy
human wants or aspirations.

Success is guided in terms of considerations such as efficiency of performance,


reliability, durability, and cost of production, ecological impact, and end-of-life
disposability.

To stay with the changing technological needs, Haidri Beverages uses latest and
highly advanced technology to produce best quality product. From the stage of washing
bottles Lo the final stage on the conveyer belt, everything is mechanical.

The technology used for the making of the product is imported from United States
of America and at times from different parts of Europe. All the equipment used in the
production of Pepsi and other products involves very little element for error. It not only
saves time but also increases the production rate of the product. Every year due to the
latest equipment, the production capacity of the company is increasing.

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The bottles to be filled with Pepsi are manufactured at Baluchistan Glass Limited
(BGL), and shifted to Pepsi plants in wrapped and sealed form for protection. On its
arrival at the plant, the bottles then go through the process of washing and are rinsed
thoroughly with filtered water before proceeding to the next stage on the conveyer belt.

Then the bottles are inspected with the help of special screen to monitor any
damage on the bottles. There are special tanks that contain the Pepsi material.

This material is in concentrated form and comes from Dubai. This concentrated
material is then dissolved with filtered water and carbon dioxide to produce PEPSI.

The conveyer belt then takes the bottles to be filled up to a required limit. The
bottles that do not fulfill the requirements are discarded. There are 33 inspectors who
check each and every section of the conveyer belt in order to maintain the quality
standards of the product being prepared.

The plant, producing Pepsi and other products, is completely air-tighten to ensure
that the best hygienic and quality standards are being maintained. This provides the
customers to get high quality and a refreshing taste each time they open the bottle.

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COMPANY OBJECTIVES

DETAILED COMPANY OBJECTIVES

In this age of automation and sophistication in management styles with recession


in the market due to certain political conditions in the country and with depressive
economic conditions overall, everybody has to struggle a lot to gel satisfaction.

The main objective of launching Pepsi was to provide a quality product at an


affordable price for the masses. In addition, through an organized and well-coordinated
mannerism, Haidri Beverages wants to capture a greater percentage of the market share
also.

Objectives in term of Market Share

The objective of the organization is "market share growth". Although, the


organization has been able to capture a greater percentage of the market but still they
want to strive for more market share as well as a quality product and service.

Objectives in terms of Sales Volume

The objective of the firm was to sell 8 million cases in the year 2002. The actual
results are still awaited.

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SITUATIONAL ANALYSIS

Successful advertising starts with clear objectives, which are statements of desired
future conditions- An advertising objective might entail pulling people into a retail store,
prompting buyers to call a toll-free number, or changing negative perception about a
company. Advertising objectives are virtually important because they provide direction
for the entire advertising efforts.

Advertising objectives are part of a larger picture, which begins with


organizational objectives, the organization's long-range goals - generally defined in
terms of return on investment or other financial efforts. These objectives are at the top of
a hierarchy in which lower-level objectives must be accomplished in order to reach
higher and higher levels of objectives. Just below the organizational objectives are a
number of functional objectives. The functional objectives of most interest to advertisers
are the marketing objectives, which define targets for marketing performance, usually in
terms of sales, coupled with a financial measure such as profitability.

Just as the organizational objectives are supported by a variety of functional


objectives, so the marketing objectives are supported by a set of lower-level objectives
(each representing a category in marketing mix). Promotional objectives determine how
the specific goals of personal selling, sales promotion, public relations, and advertising
will help the organization meet its marketing objectives. This phase now requires
advertising. Advertising objectives are the desired results of an advertising campaign-

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Each level of the objectives is supported by a strategy, a statement of how those
objectives will be achieved. The marketing strategy explains how the marketing function
will meet its objectives by describing the target markets, the desired position in those
markets, and the proposed marketing mix.

THE MARKETING PLAN

The advertising process gets its start in the marketing plan, a document that
contains four key blocks of information: a situation analysis, the marketing objectives,
the marketing strategy, and the action plan.

SITUATION ANALYSIS
A situation analysis is a review of past and present data that summarizes the
organization's current circumstances and tries to identify trends, forces, and market
conditions that might affect an organization's future prospects. This involves analyzing
both internal and external factors.

Internal Factors

The two categories of internal factors are performance and strategic options. When
analyzing their performance the organization, Haidri Beverages, considers factors like
profitability, market share, production costs, and new product plans. They also consider
such intangible factors such as the management performance, and employee attitudes.
Based on how they have performed in the past and how they might be able to perform in
the future, the company can identify a number of strategy options that take into account
their financial resources, problems with their current strategies, and any other strength
and weaknesses that might affect their ability to execute a chosen strategy.

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External Factors

The external factors in a situation analysis include such elements as customers,


competitors, industries, and government regulations. The major components of customer
analysis include needs, motivations, and segmentation issues. The most critical
psychological factors that the company considers important while designing an
advertisement for their target audience are the needs and motives.

The competitive analysis involves discovering who your competitors are and
determining their objectives, strategies, strengths, and weaknesses. Issues in industry
analysis include growth rates, entry barriers, and distribution system. Distribution can be
a major factor in your advertising strategy. Thus Haidri Beverages pays a special
attention to its distribution network.

During the same phase, the organization needs to answer questions like:

∗ What is the forecasted demand?

∗ Is the demand growing or declining?

∗ Who is the actual decision-maker among the customers?

∗ When do the customers buy?

∗ Where do they buy?

∗ Why do they buy?

There are certain factors that affect the consumer buying behavior. These include the
following:

∗ Social and Cultural Factors.

∗ Economic and Business Conditions,

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∗ State of the Technology.

∗ Political Factors.

∗ Financial Environment.

∗ Rules and Regulations.

∗ Demographic Factors

SWOT ANALYSIS

Organizations often structure their situation analysis according to the acronym


SWOT, which stands for strengths, weaknesses, opportunities, and threats. An
organizational strength is an internal capability that the organization can exploit, to
achieve objectives, whereas an organizational weakness is an internal characteristic that
may undermine your performance. An opportunity is an external market situation that
offers potential for helping the organization meets its objectives. In contrast, a threat is an
external element that can develop into a problem and potentially prevent the organization
from achieving a goal or their objective.

Organizations can use SWOT analysis to see how their strengths, weaknesses,
opportunities, and threats compare with those of their competition,

SWOT ANALYSIS OF PEPSI COLA

SWOT analysis is a situation analysis tool that helps the managers to identify
internal strengths and weaknesses, external opportunities, and threats and the potential
impact of these factors on the organizational performance.

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Strengths

The biggest strength of the organization is the brand name of Pepsi, which is
known throughout the world for its excellence.
Maintaining excellent quality by using latest equipment in order to produce best
hygienic product also strengthens the position of Pepsi in the market.

The easy availability of the product throughout the franchised area also acts as
strength for the organization. This is due to the excellent distribution network that
the organization has. It mostly follows Indirect Distribution i.e.

Manufacture -------------- Wholesaler---------------Retailer

However in some places it also follows the direct distribution i.e.,

Manufacturer -------- Company Warehouse-------------- Retailer.

The organization has a team of highly skilled professionals as their sales force.
These people are dedicated and motivated enough to meet any level of demand
and to fulfill the requirements of the organization.
The company enjoys Brand Loyalty, which is a plus point of the organization.
The market share captured by the organization also is a great strength for it.
In order to keep in touch with its target market, the organization uses heavy
advertisements. These advertisements not only entertain the viewers but also are
very effective in delivering the actual message of the advertisement,
The frequency of announcing and introducing different and attractive packages is
also very efficient and effective.

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The company has been able to maintain a well-developed and highly equipped
distribution network, which is the basic factor behind the success of Pepsi
especially in this particular region.
The marketing department of the organization is highly skilled and Quality is the
main issue. This approach used by the organization has been effective in
producing the best results ever.
The organization also has a strong sponsorship.
Pepsi has the biggest production capacity in Pakistan. Only Islamabad alone can
produce more than 80,000 crates a day, while the plants in Lahore, Gujranwala
and Karachi can produce up to 110,000 crates per day.

Weaknesses

A weakness is an internal characteristic that may undermine performance. Haidri


Beverages do not have a lot of weaknesses but there are some areas that have been
ignored by the organization. These include the following weaknesses:

The availability of packages is sometimes difficult for the organization to


maintain.
So far the company has not been able to access the rural areas and this provides an
opportunity for the competitors.
Advertisement is another aspect in which the company lacks behind in the rural
areas.
One perception that really hurts Pepsi is its image as a Jewish organization. It
affects it sales whenever there is an international incident that involves Muslims.

In one aspect in which PCI really needs to work on is the lack of innovation in
advertising. Pepsi for long holds the reputation of making attractive and
innovative advertising. However in recent years it has not been coming up to the

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reputation it has set for itself. Not many new concepts are coming that could
really attract the consumers towards its products.

The failure of its Quetta plant due to the differences among the owners has also
affected the production, distribution and sales of Pepsi in a huge province.

Opportunities

Following are the opportunities available to the organization:

The company has the opportunity to improve its services in the rural areas.

Post mix operations can be expanded from 160 machines to 500 machines in
order to make the product available at all times.
New and innovative products have always acted as an opportunity for the
organization.
Pepsi is bringing up one of its very famous brand Mountain Dew in Pakistan. It is
expecting it to do well in Pakistani market thus helping it to increase its market
share and image.
International Cricket is coming to Pakistan after a long time. The Post 9/11 events
blocked international teams to visit Pakistan for security reasons. Now that the
threats are over, the cricket hungry people of Pakistan are desperate to watch
quality cricket.
Pepsi is hoping to avail this opportunity of advertising through cricket, as it is the
major sponsor of Pakistan Cricket Team.

Threats

The threats faced by the organization that may hinder its performance are as follows:

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The biggest threat for the organization is its competitor Coca-Cola. The
franchisers of Coca-Cola arc reorganizing themselves at the moment. So Pepsi
need to develop a strategy keeping in mind their reorganization.

The government policies and the changing requirements of the customers can
effect the operations of the company.

The major threat coming to Pepsi in coming years is the regrouping and re-
organizing of Coca Cola International. Coca Cola has given the Pakistani
Franchise to Coca Cola Bottlers Pakistan Ltd, which is a subsidiary company of a
Singaporean Group.

This group brings an excellent reputation with it. Coca Cola is investing a lot of
money in its Production capacity and Distribution networks. They have targeted
2004 as come back year hoping to give tough time to all times rival Pepsi.
After 9/11 and Post Iraq events, it has induced local consumers to turn over to
domestic products in order to ban foreign made products in Pakistan. Mecca Cola,
Amrat Cola and Pakola are prospective competitors who wish to take away
market share from Pepsi through their quality, variety and price.

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MARKETING OBJECTIVES

With the situation analysis in place, organizations now have the information that
they require in order to proceed with setting objectives. The marketing objectives are
usually defined in terms of the sales targets, but in some cases, marketers define an
objective that will in turn help meet sales targets.

As mentioned earlier, the objective set by Haidri Beverages is to meet the sales
volume of 8 million cases in the year 2002. In addition to this particular factor, Quality is
the unwritten rule and the unwritten objective of all the operations of the organization.

To be most effective, objectives at any level should meet the following four criteria:

• The objectives are relevant to higher-level objectives.

• They are challenging hut still attainable.

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• They are measurable.

• And they are time specific.

In addition to the above-mentioned criteria, the Haidri Beverages believe that it is


vital that goals at any level have the approval and support of managers higher up in the
organization.

The CEO should not be involved in lower-level marketing and advertising


decisions, but to the extent that lower-level activities depend on and support higher-level
strategic activities, top managers should be aware of them and should be in a position to
help out as needed.

MARKETING STRATEGY

With objectives established, the organization now moves ahead with defining a
marketing strategy. As mentioned earlier, a marketing strategy defines the target markets,
the desired position in each market, and the marketing mix that will persuade those target
markets to part with their money.

POSITIONING

Advertisers can choose among as number of positioning approaches, depending


on what the situation analysis reveals about the strengths of their product, the needs of
their customers, and the action of their competitors.

Following are the positioning options available to the advertisers:

Positioning by product differences.

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Positioning by product attributes or benefits.

• Positioning by product users.

• Positioning by product usage.

• Positioning against a particular competitor.

• Positioning against an entire product category.

• Positioning by association.

• Positioning by problem.

In order to position Pepsi, the organization uses the following techniques,


depending upon different market conditions:

• Positioning by product usage.

• Positioning against a particular competitor.

• Positioning by association.

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PRODUCT

People satisfy their needs and wants with products and services, A product is
anything that can be offered to a market to satisfy a need or want- The concept of product
is not limited to physical objects - anything capable of satisfying a need can be called a
product.

Haidri Beverages is the company that has taken up the franchise to produce Pepsi
for the area of Rawalpindi and Islamabad. The production capacity of the plant is to
produce 73,000 cases of 24 bottles of 250-ml. For this reason the company has three lines
of production to fulfill the ever-growing demand.

The company is producing Pepsi, Mirinda, Teem, and 7-Up of 250-ml, 1 liter
(1000-ml), 1.5 liter (1500-mt), and NNR (the non returnable bottles). In order to provide
a substitute product to the diabetic patients and to increase their product line, the
company started producing Diet 7-UP in 2001.

32
MIRINDA PEPSI

TEEM 7 UP

To maintain its high quality and standards of its product, the


company has a highly equipped lab for testing the quality of carbon dioxide and the level
of sugar in the product.

Pepsi is one of the core products of the organization and the company puts in a lot
of effort to retain its image through its highly professional team. The members of the
organization work day and night making every possible effort to attain the organizational
goals and achieve excellence.

The Regular Pepsi contains carbonated water, high fructose corn syrup, sugar,
caravel color, phosphoric acid, caffeine, citric acid, and natural flavors. The Diet Pepsi
contains carbonated water, caravel color, aspartame phosphoric acid, potassium benzoate
(preserves freshness), caffeine, citric acid, and natural flavors.

33
Diet Pepsi
The research carried out by
the National Institute of Health
(NIH), United States, indicates that
there is no difference in the way children and adults handle caffeine. The study has shown
that caffeine containing food beverages do not have an effect on the hyperactivity or the
attention span of children.

Packaging is another very important factor in the production of any product.


Providing the customers with easy-to-use, convenient, and innovative containers is one of
the company's top priorities.

Product Line

The product line of Pepsi Cola consists of: -

250ml --------------- PEPSI, MARINDA, TEAM, PUP

1000ml -------------- PEPSI, MARINDA, TEAM, PUP

1500ml -------------- PEPSI, MARINDA, TEAM, PUP

NR ---------------- PEPSI, MARTNDA, TEAM, PUP


(Non Returnable)

NEW PRODUCT DEVELOPMENT

34
Mountain Dew will going to be launch on 20th January 2004. It will be of new
design, logo and new look. Target set for the sales of this bottle is Rs.250, 000. On 1 st of
March, its advertisements and commercials will be seen on print media and on electronic
media.

Stages involves in product development

In Haidri Beverages (Pepsi company), following stage will be involved


in the new product (Mountain Dew) development:

∗ Liquid Sampling
At this stage, selected areas of base market will be targeted. Salesmen
will wear the Mountain Dew uniform and will offer free 50ml disposable glass of
Mountain Dew to the people for about one week.

∗ Distribution Channels
The Distributors will sell it to selected retailers at special discount.

∗ Sales Force
Special incentives will be given to the salesmen, if they achieve the
respected targets.

∗ Empty Injections
Every distributor will be given empty containers. The distributors will
then give that to their retailers.

35
PEPSI LOGOS

A logo is a very important part of any product. The image of the product in the
minds of the consumers depends much on the Logo. Pepsi is a very old company that
started its business in late 19th century. It has traveled and transformed with the passage
of time. Hence its logo has also evolved in the last 108 years. Pepsi has always projected
itself as a brand that is original, modem and novel.

36
Pepsi got its first logo in 1898 when it got a brand name. At that time, it was of only
one colour i.e. Red. It persisted to the same pattern till 1950s with only some minor
improvement and changes in style and shape. In 1950 it included another colour Blue into
its logo that appeared as a stripe on the corner along with Red. In 1962 it got a whirling
two coloured ball. That became so popular that it still exists in the new logos of Pepsi.

HISTORY OF PEPSI LOGOS

Pepsi changed many logos with the passage of time, just to give a new look to its
product and to avoid people getting bored of it. PCI has a plan to change the logo again
next year. The new logo is planned to be a surprise.

The logo of Pepsi Cola also signifies the success behind the product. Its logo is
very colorful and unique. The trade mark of Pepsi Cola was formally registered in the
year 1903 and in 1906; Pepsi was given the name of "The Original Pure Food Drink".
Pepsi kept on changing the design of its logo keeping in view the environmental trends
but the basic theme behind these was kept the same. In 1941, to support the war efforts,
the color of Pepsi bottles and logo were changed to red, white, and blue.

37
Different logos used by Pepsi at different times.

PRICE

38
Price is the amount of money the customers are willing to pay to obtain that
particular product.

Providing quality products at the lowest possible price had always been one of the
main concerns of Pepsi. One of the ways by which the company has been able to assist
this effort is by increasing the use of inexpensive and recyclable plastic bottles.

In Pakistan, the Pakistan Beverages Manufacturers Association (PBMA) fixes the


prices of commodities in view of the taxes laid down by the government, the excise duty,
sales tax, and the cost of the production material, the overhead cost, and the profits.

The government policy, at times, makes a lot of difference as the government may
increase the freight charges, the prices of glass, or the prices of steel. Thus the overall
price of the product also gets affected.

The price of Pepsi Cola is very reasonable as compared to other drinks and the
management makes every effort to make the product at the lowest possible cost but the
highest quality.

The price of a single 250ml bottle of Pepsi Cola in the market is Rs. 8.00
The price of a single 1000ml bottle of Pepsi Cola in the market is Rs. 25.00
The price of a single 1500ml bottle of Pepsi Cola in the market is Rs. 45.00

The price line is as follows; -

39
Manufacturers ————> Distributors ————> Retailers ————> Customers

Rs. 153 ——————— Rs. 162 —————— Rs. 1PO ————— Rs. 192

Rs. 9.00 Rs. 8.00 Rs. 22.00

∗ All the prices are subjected to 1 case=24 bottles (250ml each).


∗ All the expenditure charges are included e.g. cost of production, cost of
material, transportation, distribution cost, cost duty, petrol, and then profit.

The price of the bottle is very reasonable as compare to the other drinks with respect to
quality

PLACE
40
Place includes the company activities that make the product available to target
consumers.

Pepsi Cola is placed in the market according to the extent of the target market
located in that particular geographical area. Haidri Beverages place their product in the
market with the help of its indirect distribution network.

The retail stores are spread all around the franchised area in order to ensure the
availability of the product all the year round. The major retail stores located in Islamabad
and Rawalpindi are in the Blue Area, Jinnah Super Market, Super Market, and in almost
every sector of Islamabad. The entire Rawalpindi Cantonment and the entire city as well
have many retail outlets where Pepsi is available in abundance.

The distribution network also works according to the promotional campaign or the
season. For example, in the cricket season the company tries to make the product
available in areas where Cricket is being played. In 1996 (World Cup Cricket), the
company distributed its product to a greater extent in the areas that were near to the
cricket stadiums. In addition to this, special stalls were arranged for the Pepsi lovers
outside the stadiums.

The first vehicle used by Pepsi in United States


for the purpose of distribution.

PROMOTION
41
Promotion means activities that communicate the merits of the product in order to
persuade the target customers to buy it.

Promotion plays a vital role in the success or failure of a product. Promotion of the
right product at the right time is an ideal situation for a company. Pepsi is one of those
products on which the franchisers spend millions of Dollars/Rupees for its promotion.

Haidri Beverages invest a huge amount of money on the promotional campaigns of


Pepsi. There are different ways of promoting a product through retailing, personal selling,
and advertising. The company strongly emphasizes on advertisements as the other two
methods area not much effective in attracting the attention of their target audience-

The advertisements by Pepsi are not liked in Rawalpindi and Islamabad but are
popular throughout Pakistan. Enormous efforts have been put into the promotional efforts
in order to make an everlasting impression on the mind of the customers-Innovations are
being made in order to advertise the product strongly.

Advertising is a form of mass selling, employed when the use of direct person to
person selling is impractical, impossible, or simply inefficient.

Advertising can be carried out through numerous and varied channels. The
channels usually used in developing countries include newspapers, consumer magazines,
television, direct mail, radio, business publications, and outdoor advertising. A wide
range of advertising media has been developed from sources whose potential importance
was formally ignored. At first, the delivery trucks were printed plainly, but now they
often carry institutional or product messages, as do many shipping cartons.

42
Haidri Beverages uses the electronic media, the print media, and on-ground
advertisements as a source of their advertisements. The company has allocated Rs. 1 on
each carton, which they produce, for advertisements. The more the cases sold, the greater
the advertising budget will be.

The Pepsi International handles the advertisements on the electronic media. The
organization has hired the facilities of a Dubai based advertising company. This company
casts different celebrities that have been sponsored by Pepsi (Pepsi) in their
advertisements for the electronic media of Pakistan.

Print media is also used as a source of advertisement. The present advertisements


by Pepsi and the new upcoming schemes are advertised through this medium. This type
of medium is also inexpensive as compared to the electronic media.

The franchisers heavily rely on the on-ground advertisements. There are different
types of advertisements like corrugated, plastic signs, wall chalking, and the tin boards.
Another new form of on-ground advertisement is called Mega Signage. This mode of
advertisement is very expensive but very effective as well.

Pepsi is one of those mega products whose advertisements are placed on the Mega
Signage. Mega Signage is a large piece of cloth called skin on which the company's
message, logos or pictures are imprinted. The skin is then stretched and is then applied on
the large tin board. The Mega Signage board used by Pepsi is placed at the Blue Area
(Islamabad), Karachi Square (Rawalpindi), and Murree Road (Rawalpindi). The total cost
on these signboards totals Rs. 300,000.

In addition to these advertisements schemes, Pepsi also sponsors many sports events
and the biggest example of such events is the cricket World Cup. The success of such
schemes increases the output or the production of the product and helps in developing a
competitive edge over the other soft drinks.

EXECUTION OF THE SCHEME

43
D day Fixed day (Execution day. Launching day)
D-3 day Checking of stock of all distributors, and issuing of new stocks.
Poster work

D-l day

Banner

D-l day (late night)

Supply of stocks

D-l day

Electronic media breakout

D day

Closing of scheme

The company gives two days for their recollection of the goods. They also give three
days to their distributors.

Total time period of the scheme


Maximum 30 days and less

Example of the Scheme

UTC == Under the Crown Scheme

44
Like in the world cup there are digits under the crown of the bottles like 1,2,3 etc.
if this is the case then for the limited amount of winners or for the greater output one
number from these digits are controlled by the company like in the world cup days
number 1 is controlled by the company.

Results of the Promotional Scheme

• Incremental volume
• Competitive edge

By all these kind of schemes the output of the product increases or they develop a
competitive edge over the other soft drink makers.

The PCB's biggest helper has been Pepsi Cola International Company for quite
some time now, who according to the board's chief has always come up with its support
for such activities. The international beverage maker has a long association with the
Pakistan Cricket Board being the official sponsors of the country's cricket team.
Pepsi cricket camps and coaching clinics have come a long way to promote the game at
the grass roots level and have effectively provided opportunities to many youngsters to
come forward and prove themselves, who would otherwise have gone unnoticed.
That the PCB-Pepsi relationship has proved financially viable to both the parties is just
one beneficial aspect of this relationship. Cricket gurus and lovers will admit that Pepsi
have always been the leaders in creating a national euphoria at almost all cricket ventures
of the country be it a local or international occasion.
Now that the countdown to the sport's most prestigious event, the ICC Cricket
World Cup 2003, has begun Pepsi Cola International (PCI) has made a very successful
effort to kick-start the cricket euphoria in the country. Being the global partners of the
ICC cricket World Cup in South Africa this time around their interest in the event has
quite a different shade.

They have again stood shoulder to shoulder with the PCB to boost the morale of
our national team who are passing through a rough patch while playing in South Africa.
45
After losing the one-day series and the first Test, the team definitely needed a pat on the
shoulder, besides other rectifying measures of course, as a morale booster.
Leaving the other rectifying measures related to playing techniques etc. to the board, the
official sponsors of our team have taken the responsibility of patting their shoulder at this
preparatory stage to the World Cup. Country Manager PCI, Sarfaraz Rehman, says that
the brand had always been synonymous with cricket in Pakistan and in more ways than
one had promoted the game at all levels.
The company, he says is proud to be the ICC partners in this event and being the
main sponsor have organized a number of marketing activities in connection with CWC
2003 for millions of cricket lovers across Pakistan. These activities have been specially
designed to act a morale booster to our cricket heroes as well, so that they get charged
and bring the world cup home once again, he adds.

Their programs during the cricket bonanza include consumer promotions, a


special cricket pack, World Cup Song, and cricket programmes on television. They have
already undertaken a special tour of the World Cup Trophy to Pakistan that ended on
December 30.
Outlining the marketing activities, the Marketing Director PCI Khalid Alvi says
that a thorough and comprehensive marketing strategy is being pursued to build hype for
Pepsi and for the cricket in the country. These activities will ignite the national cricket
fever. On the details of the strategy he says that by linking cricket to the African way of
life they have tried to give a better understanding of the African continent.
Working on the connection of wild animals, visuals of jungles and Zulu
civilization, the concept of 'Safari' overrides the whole campaign. Marketing Manager
PCI, Salman Danish says that Pepsi's media campaign while taking 'Safari' as the main
theme focuses on 'World Cup Cricket Safari', Pepsi 'Pace Attack Bottles' and Pepsi
'Civilization'.

The 'Pace Attack Bottles' campaign specially focuses on Pakistanis bowling


strength and boosts the image of two Ws (Wasim and Waqar) and Rawalpindi Express
46
(Shoaib Akhtar) as the world’s most dreaded pace attack. Advertising expert Taher A.
Khan, the chairman Interflow Communications, says that these campaigns will trigger a
passion for cricket during the World Cup leaving a lasting impression on public.
So the PCB-Pepsi partnership is turning out to be a beneficial one for the Pakistan cricket
as well and pundits of the game here say this relationship must continue and flourish
more for a bright future of the cricket.

ADVERTISING OBJECTIVES

47
ADVERTISING PLAN

Just as advertising operates in the larger context of the total marketing


efforts, the advertising plan is developed in the context of the marketing plan. The
advertising plan presents an analysis of the advertising situation along with a reiteration
of the previously established marketing objectives and marketing strategy. It then outlines
the objectives and strategy specific to advertising, along with details about messages,
media plans, ties to sales promotion or special events, the advertising budget and some
sort of timeline or calendar that shows key dates in the upcoming campaign.

ADVERTISING OBJECTIVES

The process of setting advertising objectives is one of the most challenging


in the field of advertising. The difficulty in setting meaningful, realistic advertising
objectives stems from a two-part problem. First, the effect of advertising on sales cannot
always be measured, because most advertisers conduct a variety of marketing activities
simultaneously, each directed towards increasing sales. Thus if the advertisers cannot
identify the contribution that advertising makes to the sales of the product, it is an unfair
burden on advertising to expect it to generate a certain number of sales- As a result many
advertisers set communication objectives for their advertising, not sales objectives. And
the second part of the problem is that setting communication objectives is easier said than
done.

Haidri Beverages define their advertising objectives in term of communication


objectives, which define advertising performance in terms of how well a given
communications goal has been achieved.

Advertising creates ads with a variety of purposes in mind. From getting people up
off the couch to call a toll-free number to simply reinforce attitudes they already have

48
about a product or a company. The advertising objectives that the company has
established should relate to the purpose of the activity.

There are two purposes that the advertisements by Haidri Beverages serve. The
first is to "relate the product to needs". This is a less direct form of an advertisement.
Such ads try to draw a link in the potentials buyers' minds between the products and their
needs. A keys purpose of such ads is to get the product known and have it accepted. The
objectives for such ads can be measured in terms of how effectively they convince the
target audience that the product will satisfy their needs.

One of the more challenging objectives used by the organization and that can be
assigned to an ad is to modify the target audience's attitudes.

CREATIVITY
49
One of the most important, enjoyable, and fascinating topics in advertising is
creativity, the ability to produce original ideas or original ways of looking at existing
ideas. Another way to look at creativity is as the ability to draw connections between
previously unrelated ideas.

In order to be effective and efficient Pepsi develops its mass media and creative
strategy in parallel.

CREATIVE STRATEGY

The creative strategy is the plan that defines three advertising efforts: the art
direction, the artistic design of the ad; the production values, the various audio and visual
components and stylistic touches that make up the ad; and the copy platform, a checklist
providing the background information that the copywriter and art director need to craft
the ad.

MANAGING ADVERTISING EFFORTS

Pepsi Cola International is one of the most successful and innovative


campaigners of Advertising efforts. Pepsi Cola International runs its business in the
country through franchisers (Bottlers). Bottlers are only responsible for manufacturing,
bottling, and a limited marketing through retailers. Franchisers require Pepsi's name and
formula (concentration insured by PCI itself) and in return offer a fixed percentage of
their profit to PCI. Pepsi Cola International is responsible for planning and implementing
the marketing efforts in collaboration with the franchisers. In the following we see how
Pepsi manage advertising efforts through planning, organizing implementing and
controlling with respect to advertising.

Planning & Organizing

50
Pepsi Cola International (PCI) is responsible for planning its advertising efforts.
They either carry the advertising campaigns of the regional office in Dubai or
independently plan their campaigns, keeping in view the trends of the domestic market.
They plan the campaigns according to the upcoming products or prize schemes according
to the market desires and trends.

Now the question arises where PCI does get its finances from? The answer to that is, the
franchisers give a fixed percentage of there revenues to PCI which is set in accordance
with the respective sales. A promotional budget of Rs.2/- if offered to PCI for preparing
& running new and maintaining old advertisement along with government taxation. For
example, Haidri Beverages sell approx. 80,000 bottles a day; hence it offers PC Rs.
160,000/- daily. One of the most recent prize scheme planned by PC was Pepsi Kya
number Hai? This scheme was planned by the creative minds in Pepsi Cola
International, while ads and marketing efforts executed by Interflow Communications
Pakistan (Pvt.) Ltd. However franchisers may as well plan and organize their own
advertising/marketing efforts, which involve retailers. Franchisers are independent in
planning any activity that may increase their sales, but only on local scale.

Implementing & Controlling

After a scheme is planned, PCI sets a date on which it will be launched. This
date is called the D-Day and every activity is planned in accordance with the D-Day. The
marketing representatives of PCI brief the GMs Marketing of the Franchisers. They hand
over the handbills, posters and banners to the franchisers on D-15 day (15 days before D-
Day). If the scheme involves crowns, then it is seeded (put in the crowning machine) on
D-10 day.

There are two types of crowns for that, known as Common Crowns and
Controlled Crowns. The winning number crowns are controlled by PCI itself and thus are

51
known as Controlled Crowns. PCI representatives seed these crowns under their own
supervision. Common crowns are seeded everyday without much care.

All the media mainly Television, Radio, Newspapers, Magazines etc are
covered and funded by the PCI. While Franchisers take care of pasting banners,
posters on the retailing outlets and installing Billboards on important and key locations of
the city. For example, in the recent Pepsi Kya Number Hai? Scheme, the D-Day was
supposed to be July1. 2003.

Therefore the scheme posters were handed over to Haidri Beverages Co on June
15, 15 days in advances of launching of the scheme while seeding was done on June 20.
In order to inform the people about the scheme, short TV commercials were ran on air
seven days in advance and on newspapers, it were printed 5 days in advance. This was
done to attract the consumers about the scheme and to create excitement among masses.
Therefore everything is made ready long before the D-Day so that scheme could run
smoothly without any mishaps.

SELLING STYLE

Advertisers, agencies, and individual campaigns can take on definite


personalities. There are two basic styles available but no particular style or personality is
inherently better; the choice is made according to the nature of the product, the
competition, the market and economic conditions, and the target audience.

Hard-sell advertising is just like it sounds, pounding at the audience with demands
to "buy now!" or promises of being the best, the greatest, the most wonderful product in
the world.

Soft-sell advertising is the stylistic opposite of hard sell; soft sell takes a more
subtle approach to persuasion and motivation in an effort to build desire for the product.
52
Soft-sell ads do not usually demand particular audience behavior; indeed, such ads rarely
appear to urge people to buy at all. Pepsi-Cola usually uses the soft-sell advertising

THE APPEALS

Every successful ad works because it makes an effective appeal to some need or


desire in the people who view, read, or listen. The advertising appeal is an attempt to
draw a connection between the product being advertised and some need or desire the
audience feels.

Appeals fall into two categories: logical appeals, also known as rational appeals,
aim for the buyer's head, and emotional appeals aim for the buyer's heart. Pepsi-Cola
usually uses emotional appeals, but depending upon the market conditions, sometimes
uses the logical appeals.

Following are the appeals used by Pepsi-Cola in their advertisements:

∗ Price or Value Appeals:

Promising to give buyers more for their money is one of the most
effective appeals that can be used, particularly in term of audience recall. A value
appeal can be accomplished in several ways: lowering the price and making people
aware of the new price, keeping the price the same but offering more, or keeping
the price and the product the same and trying to convince people that the product is
worth whatever price the company charges.

∗ Star appeals and Testimonials:

53
The public's fascination with superstar athletes and entertainers is
the foundation of the celebrity endorsement ad.

The presumed pull of the star appeal is that people like to identify with their
favorite stars and will therefore be positively influenced by a star's appearance in
an ad. The presence of the star may also catch people's attention when they are
flipping through a magazine or through television channels.

∗ Sensory Appeals:

Many ads aim right for one or more of the five senses of taste, touch,
vision, smell, and hearing. When you see a shot of Pepsi, for example, and reach
for your car keys, an appeal to your sense of taste is at work.

THE PRINT COPY

Copywriters are responsible for every word seen in the print ads, whether the
words are in a catchy headline or in the fine print at the bottom of the page. The three
major categories of copy are headlines, body copy, and slogans.

Headlines

The headline, also called heading or a head, constitutes the dominant line or lines of
copy in an ad. Headlines are typically set in larger type and appear at the top of the ad.

54
Copywriters can choose from a variety of headline types, each of which performs a
particular function. In case of print media, Pepsi prefers to use the Benefit Headlines, the
statement of the key customer benefits.

Body Copy

The second major category of copy is the body copy, which constitutes the words in
the main body of the ad, apart from the headlines, photo captions and other blocks of text.
The importance of body copy varies from ad to ad, and some ads have little or no body
copy. Ads for easy-to-understand products, for instance, often rely on the headline and a
visual such as a photograph to get their point across. In contrast, when the selling
message needs a lot of supporting detail to be convincing, an ad can be packed full of
body copy.

As with headlines, body copy can be built around several different formats. Pepsi
usually uses the straight-line copy. This is the copy that takes off from the headline and
develops the selling points from the product.

Slogans

The third major category of copy includes slogans, or lag linef, memorable sayings
that convey a selling message. Over the years Pepsi has used such slogans as "The
choice of the new generation", "Ask for more". Slogans are sometimes used as
headlines, but not always. Their importance lies in the fact they often become the most
memorable result of an advertising campaign.

ELEMENTS OF DESIGN

Copy, photographs, actors, logos, and the various other parts make up the ad.
However, the fundamentals of design start working at a level below these pieces, with the
concepts of line, color, texture, shape, direction, size, sound, and space.

55
It is important to understand these design elements so that the organization can
communicate with their art director, and make informed judgments about the ad design.

PRINCIPLES OF DESIGN

These principles provide the guidelines for assembling the design elements in
ways that are both pleasing to the eye and effective as advertising. It is important to
understand these principles because it makes organizations know what makes a design
good. The design principles include balance, proportion, sequence, unity, emphasis, and
the related concepts of tension and surprise.

DESIGNING PRINT ADVERTISING

Designing a print ad is a process of bringing together the copy and the artwork
in a way that best communicates the intended advertising message.

CHOOSING A FORMAT

The format you choose determines how the message is structured. This is not a
question of how pieces are physically located on the page; format determines how the
copy and the artwork are put together to make a point.

Pepsi usually uses the One-Liner Format in its advertisements for the print
media. If organizations can get their point across with one carefully written headline, and
a great photo or illustration, then they choose the one-liner format-

DESIGNING THE PAGE

The first step in designing the ad is to pick the basic page design. Pepsi uses
the basic design of Frame.

56
The frame design emphasizes the headline or body copy by framing it with some
type of artwork. The frame may be as simple and directed as a box around the copy, or it
may be a more complicated arrangement of artwork that surrounds the copy.

Integrating copy into the design of the ad requires a number of artistic steps,
some rather obvious, others subtler. These steps include selecting a type style that
complements the design, deciding where to put the type on the page, and fitting the copy
into the available space. The selection of an appropriate type and placement of the type
depends on the situation and the strategy being used by the organization (i.e., Pepsi-
Cola).

With the exception of the copy-heavy and big-type page designs, the visual is often
the dominant clement in an ad. Even when copy provides all the key selling points, the
reader is often left with an image that was created by the visual.
There are many other tasks that need to be performed by the directors. This includes the
selection of the appropriate visual, coordination of visuals with the copy, and laying out
the page.

DESIGNING TELEVISION ADVERTISING

In addition to reaching the audience with sound and motion, television is


also differ from print ads because they are structured in time, as opposed to being
structured in space. Television ads have a beginning, middle, and an end, whereas print
ads happen all at once.

CHOOSING A FORMAT

As with print advertising, television ads tend to fall into several basic
categories. Most ads fit into problem-solution, demonstration, spokesperson- testimonial,
product presentation, slice-of-life, minidrama, or music an I/stage-show formats.

57
Pepsi has been successful in using formats like problem-solution, product presentation,
and musical/stage-shows formats. The examples include the ads that telecasted Imran
Khan in it (problem-solution), and the ads that featured Strings (musical/stage-show
format).

THE AUDIO & VISUAL ELEMENTS

Every television commercial is constructed from various audio and


visual elements.

Audio Element

The audio portion of a television commercial includes speaking voices, singing


voices, instrumental background music, and sound effects. Pepsi prefers to use sound
effects and jingles in their ads for the broadcast media. Jingles are short songs that carry
advertising messages; they can be either original tunes or adaptations of popular tunes.

Visual Elements

The visual elements of a television commercial consist of everything that the


viewers sees on the screen, whether it is a footage, an animated bunny, or simply a typed
message. The visual elements fall into four categories, and Pepsi prefers to use visual
effects in their advertisements. Visual effects range from simple camera moves and
editing tricks to advanced computer-generated illusions. Thus, while deciding upon the
visuals, Pepsi readily uses the computer-enhanced and computer-generated art-

MEDIA
58
MEDIA OBJECTIVES

The first step in the media-planning process is to set media objectives that
guide the organization in the selection and use of media. Reaching the target audience
and distributing the message are the two areas around which the media objectives are
defined.
Reach is a measure of how many different members of the target audience are
exposed at least once in a given period to a particular media vehicle. Frequency measures
the number of times people in the target audience are exposed to a media vehicle during a
given period, while deciding upon the media objectives, Pepsi not only focuses on
maximum reach but maximum frequency as well.

THE MEDIA STRATEGY

The media strategy describes the course of action that the organization plans to
follow to achieve their media objectives, including the media and individual vehicles they
will use to deliver their message.

The decisions that organizations make as they develop the media strategy revolve around
four broad areas:

∗ Determining geographic scope,

∗ Scheduling the message,

∗ Selecting the media

∗ Calculating cost efficiency.

DETERMINING GEOGRAPHIC SCOPE

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Where should the organization advertise? The advertising and marketing
plans of the organization can help to choose which areas are most important. One
consideration is product availability: organizations do not want to waste their money by
advertising in areas where their product is not available.

Because a product that sells well in one market may not sell as well in another,
organizations need to analyze the product's relative sales strength in various geographic
areas. Two tools are used to compare sales strength in individual markets. Pepsi uses the
tool of Brand Development Index (BDI). BDI is a ratio that measures the relative sales
strength of a given brand in a specific area of Pakistan.

SCHEDULING THE MESSAGE

The second set of decisions faced by the organization revolves around message
scheduling- Decisions about timing, continuity, size, and position of the advertisement
are to be made by the organization in this phase.

Determining Timing

Depending upon the objectives, there are four different ways in which the
message timings can be used. Pepsi tries to reach the people in the target audience when
they are receptive to the medium being used by the organization. For example, Pepsi
advertises to a greater extent during the "Cricket season".

Determining Continuity

Once the organization ahs figured out when to advertise, the next step is to decide
whether to run the message consistently throughout the campaign or concentrate the
message at regular intervals.

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Pepsi uses different patterns of message reception depending upon the market
conditions and the marketing objectives. The most frequent patterns include flickering,
pulsation, and road blocking.

Flickering is used to schedule the message at peak purchasing periods or during


times when the audience is most receptive. In pulsing, organizations maintain a
consistent, relatively low level of advertising throughout the year and add pulses to make
a heavy heavier schedule during peak periods or to answer competitive challenges. In
case of road blocking, the same ad is scheduled on several major television networks at
the same time.

Determining Size/Length and Position

When scheduling the ad, organizations take into consideration its size or
length and its position in the media vehicle. In case of print media, determine how large
your ad will be; the size options vary widely, ranging from a tiny fraction of a page to
several pages.

In case of broadcast media, determine how long the commercial will run; again,
the choices are wide, ranging from a 10-second commercial to a 30- or 60-minute
infomercial.

Depending upon the creative approach used by the organization and the budget
allocation, even small ads can incorporate color, art, and other elements to grab audience
attention.

Another consideration is the position of the ad within each medium. Media usually
charge more when the position is specified by the organization. Thus organizations must
weigh the potential benefits of such positions against the costs.

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SELECTING THE MEDIA

The third set of decisions that the organization may face when developing the
media strategy relates to the selection of the media that should be used to meet the
desired objectives. One or more that one medium can be used in order to achieve the
desired output.

During the same phase, it is very important to understand the media audiences,
i.e., who or how many people will be exposed to that ad. In addition to this factor, it is
very important to understand the media environments. It includes the context for
advertising reception, which includes the content surrounding the ad and the look that the
media create for ad messages.

The most important area that should be considered is the competitor's use of
media. If organizations are able to understand their competitor's media budgets, mixes,
and share of voice, then they are can construct a more effective media strategy that takes
advantage of the weaknesses in competitor's media plans or of the strengths in their own
media plans.

CALCULATING COST EFFICIENCY

Even advertisers with huge budgets need to analyze the cost of using
various media to reach people in their target audiences.

By evaluating the cost and comparing the cost efficiency of each medium, of
each vehicle, and of each media plan under consideration, advertisers can determine the
combination of media, vehicles, and schedules that best meets their objectives.
One calculation used by Pepsi to compare media cost is cost per thousand (CPM), the
cost of reaching 1,000 people in a medium's audience.

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EXPOSURE

Exposure Is The Contact With The Information.


There Are Two Main Kinds Of Exposures:

• Accidental Exposure

• Intentional Exposure

Accidental Exposure

The exposure which occurs all at once is accidental exposure. For example
billboards, television commercial etc. In case of Pepsi the accidental exposure would be
the banners in the market, the billboards hanging on the main roads or the TV
commercials etc- leaflets are also an example of accidental exposure.

Intentional Exposure

Intentional exposure is that exposure in which the customer deliberately


wants the advertisement to be exposed to him. Or in other words the consumer search for
the information he wants like in case Pepsi some people like to watch or waits for the
advertisement on the television during the cricket matches or dramas.

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Commercials
One of the fun things about Pepsi is that it has a very colorful history of using
public figures and entertainers to help promote sales. Here are some of the highlights of
the various marketing strategies and the personnel that were used to promote them.

1909
Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity endorser.

1939
A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as much for a
nickel" to increase consumer awareness of Pepsi's value advantage.

1940
A national jingle is released: "Pepsi-Cola hits the spot/Twelve full ounce that’s a
lot/Twice as much for a nickel, too/Pepsi-Cola is the drink for you." "Nickel, Nickel" will
eventually become a hit record and will be translated into 55 languages.

1950
Hollywood movie star Joan Crawford promotes the company's product line.

1959
Soviet Premier Nikita Khrushchev and U.S. Vice President Richard Nixon meet in the
soon-to-be-famous "kitchen debate" with a Pepsi in plain sight.

1966
The Diet Pepsi musical theme becomes a Top 40 hit.

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1976
"Have a Pepsi day" is the Pepsi Generation's upbeat reflection of an improving national
mood. "Puppies," a 30-second snapshot of an encounter between a very small boy and
some even smaller puppies, becomes an instant commercial classic.

1984
Michael Jackson is the highlight of the year!

1985
Lionel Ritchie leads the parade that includes Tina Turner and Gloria Estefan. Joe
Montana and Dan Marino are part of it, as are Teri Garr and Billy Crystal.
Geraldine Ferraro, the first woman nominated to be vice president of the U.S., stars in a
Diet Pepsi spot as does Michael J. Fox.
By the end of the year, the New Generation campaign earns more than 58 major
advertising and film-related awards. Pepsi's campaign featuring Ritchie is the most
remembered in the country, according to consumer preference polls.

1988
Michael Jackson is back.

1990
Fred Savage and Kirk Cameron sign on, as does Joe Montana. Ray Charles and the "Uh-
Huh Girls" sing the praise of Pepsi. Cindy Crawford makes a commercial.

1993
Shaquille O'Neal touts Pepsi products.

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1998
Jeff Gordon is used in spots.

1999
Voices of Marlon Brando, Isaac Hayes and Aretha Franklin are used in a commercial,
which also stars child actress Hallie Eisenberg.
Lucas film teams with Pepsi to create special Pepsi bottles and cans.
An alien, Marfalump, is used in two commercials - "Landing" and "Play Acting".
Ray Charles, Kool and the Gang and the Rolling Stones attend a Pepsi celebration.
President and Mrs. George Bush, Lady Thatcher and Walter Cronkite are photographed
with a Pepsi.

2000
Faith Hill, Sammy Sosa and Ken Griffey Jr. signed deals to endorse Pepsi products.
Hallie Eisenberg and Faith Hill are shown in a "Joy of Cola" ad. Sammy Sosa and Ken
Griffey Jr. also sign endorsement deals.

2001
Britney Spears does a Pepsi commercial during the 2001 Academy Awards. The theme is
"The Joy of Pepsi".
Shakira debuts in a series of new commercials for Pepsi

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Feedback

Though, every ad campaign involves the expertise of Pepsi Cola International, the
feedback is received by the franchisers, because they are the one that come directly in
contact with the consumers. The management of the Bottlers receives the complaints and
claims. The claims of the prizes are sent to PCI for verification, which then releases the
prize cheque. The prize is handed over to the winners through a special ceremony, which
is covered by the media for promotional purposes. However the ultimate feedback comes
with the change in sales. If the sales have increased in result of the campaigns, it is
thought successful and vice versa.

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MARKET SEGMENTATION

Dividing a market into distinct groups of buyers with different needs,


characteristics, or behavior who might require separate products or marketing mixes.
Marketers consist of buyers and buyers differ in one or more ways. They may differ in
their wants, resources, locations, buying attitudes, and buying practices. Through market
segmentation companies divide large, heterogeneous markets into smaller segments that
can be reached more efficiently with products and services that match their unique needs.

MARKET SEGMENTATION OF THE PRODUCT PEPSI COLA IN PAKIST

• GEOGRAPHIC SEGMENTATION

The company of Pepsi Cola is used to segment the market of the


product geographically by focusing their market and attention towards the urban areas
and in the hot summer days because people are interested in spending 9 rupees in getting
a good reasonable drink, which gives them pleasure and reduces their thirst. They have
their dealers in different places in the urban areas to capture the market in order to find
and satisfy their customers.

• DEMOGRAPHIC SEGMENTATION

First of all the company considers every one young in the market
because they consider 5 year old boy as young and 70 year old man as young because
they think that no one in the world consider himself as an aged person but the company in
some case focuses their market and segments their market up to the age from 5 years to
age 45, because people above 45 are hesitant of drinking Pepsi due to its coolness and its
sugar factors. People in between the age 5 to 45 are usually attracted towards the drink
Pepsi due to its flavor and reputation in the market.

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The company also made area wise segmentation and usually moves towards
college, cinemas, restaurants, hotels, where the strength of young people are greater. The
company also focuses towards students of colleges and schools.

• PSYCHOGRAPHIC SEGMENTATION

The company also segments its market with respect to social class,
lifestyles and personalities, They focuses their attention towards lower upper and middle
class because those people afford to drink Pepsi.

• BEHAVIORAL SEGMENTATION

Behavioral segmentation is benefits, occasions, brand loyalty etc.


the company tries to market their product for the occasions like weddings, concerts and
sports events. Now days the demand of Pepsi Cola has increased due to the wedding
ceremonies. So the company tries to attract the customers in such Metropolitan areas. It
also focuses towards the Brand loyal people or the people who are heavy user of Pepsi
Cola. And those people are in the colleges and universities.

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MARKET SEGMENTATION OF PEPSI IN PAKISTAN

SEGMENTATION TYPES/ BASES ILLUSTRATIVE CATEGORY

GEOGRAPHIC
Region All over Pakistan
Population density Mainly Urban as well as rural (at some extent)
Climate Mainly in hot days(summer)
DEMOGRAPHIC
Age 2-65
Gender Male, Female both
Occupation Mainly students & youngsters
Education Universities, colleges and schools
PSYCHOGRAPHIC
Social class Higher and lower middle class, working

Life style Strivers and stragglers


Personality Ambitious, adventurous, active
BEHAVIORAL
Occasions Regular and special both occasions
Benefits Good quality and service
User status Regular user
Usage rate Medium and heavy user
Loyalty status Strong and medium
Readiness stage Interested, desired and intending to buy
Attitude towards product Positive and enthusiastic

RELATIONSHIP BETWEEN SALIENT


BELIEFS ABOUT AN OBJECT AND
ATTITUDE TOWARDS THE OBJECT

Beliefs about Pepsi

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 Pepsi is of black colour,
 Pepsi includes many calories.
 Pepsi is in white bottle.
 Pepsi has gas in it.
 Pepsi includes sugar.
 Pepsi is my favorite drink.
 Pepsi is what my parents like.
 Pepsi has a metallic cap,
 Pepsi is an energizing drink.
 Pepsi results best when chilled.
 Pepsi is economical drink.
 Pepsi is of high quality.
 Pepsi has a unique taste.
 Pepsi reduces acidity,
 Pepsi comes in different sizes.
 Pepsi bottles are very clean.
 Pepsi monogram is very unique,
 Pepsi is a worldwide brand.
 Pepsi has a market share of 86%.
 Pepsi has a competitive edge over Coca Cola.
 Pepsi is choice of a new generation
 Pepsi has a very good distribution network.
 Pepsi use very good advertisement.
 Pepsi has a greater demand as compared to other soft drinks.

Salient beliefs about Pepsi

 Pepsi is of black colour,


 Pepsi is of high quality.
 Pepsi is very economical.
 Pepsi is an energizing drink
 Pepsi has a unique taste.
 Pepsi reduces acidity.
 Pepsi comes in different sizes.
 Pepsi has a market share of 86%.

Attitude towards Pepsi

 Pepsi has a competitive edge over Coca Cola

VARIATION IN THE LEVEL OF ATTITUDES

It is the persons overall evaluation of the concept or how the person thinks about
that product positively or negatively.

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Level of
attitude Examples
concept

Product class Soft Drinks

Brands Pepsi Cola Coca Cola

Model Regular Disposable


250ml 1000ml

Brand/Model
General Drinking Drinking
situation Pepsi in Pepsi in
College Cafe Restaurants

Drinking Drinking
Specific Pepsi in Pepsi in
situation break lunch time

CONSUMER DECISION MAKING PROCESS

There are three components of wheels of consumer analysis:

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 Affect and Cognition.

 Environment.

 Behavior.

AFFECT AND COGNITION:

Affect means feeling and cognition means thinking. When a person saw
something he start developing a feeling towards that thing, this is the affect and when he
or she thinks about that thing this process is called cognition. In case of Pepsi the affect is
very pleasurable. It gives us satisfaction of drinking good syrup, and we start developing
a mental thinking towards its flavor and taste. While drinking Pepsi we always think
about is taste and quality and most of the time we think that we are drinking a very good
drink. These all things are our affect and cognitive behavior.

BEHAVIOUR

The behavior is the way of doing the activities. Like in case of drinking Pepsi, our
behavior is how we open the bottle, how we drink it, how we hold the bottle etc.

ENVIRONMENT
The environment is the atmospheres and settings in which we are drinking
Pepsi. Like if we are drinking Pepsi in the college cafeteria then the environment is the
cafeteria or the other people sitting in the cafeteria.

When we are drinking Pepsi in the car then the environment is the car and the
surroundings of the car, which includes weather, atmosphere, people around us etc.

DECISION MAKING
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By these entire factors a person makes some decisions about the drinking Pepsi
Cola. Whether to use the drink or not or is the quality of the product up to the standards
which he or she wants or not. The end decision will be based on these three factors. So
the wheels of consumer analysis help the consumer to make the right decisions.

AFFECT AND COGNITION

As discussed earlier in this report that affect refers to the feeling of a


person and cognition is the mental thinking process after that feeling. The feeling is may
be of eating, traveling, watching, working etc. In case of Pepsi first of all the person who
wants to drink Pepsi have a certain feeling about that e.g. in the summer season the affect
of drinking Pepsi would be the feeling of coolness and felling comfortable. The thirst of
water is replaced when a person sees Pepsi in the summer season.

The cognitive element is that how a person thinks after drinking the Pepsi, some
people notice its essence, and some enjoy drinking very chilled Pepsi because they think
that Pepsi results best when chilled. Some People notice its gas or feel very light after
drinking Pepsi. Some people think that it is the medicine of acidity, and it reduces the
acidity in the stomach. Some people think after drinking that is the drink pure or not.
Some people start feeling energetic and they think that it reduces their tension and
depression. Some people think that drinking Pepsi with the meal increases its flavor and
taste. Those people who are addicted to it think that without Pepsi they cannot work even
a second and while drinking they think that it creates energy in their body.
These all factors are the cognitive elements of drinking Pepsi.

TYPES OF AFFECTIVE RESPONSES.


There are four main types of affective response.

Emotions
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Specific feelings

Moods

Evaluations

EMOTIONS

By drinking Pepsi some people have different kind of emotions and also
different level of emotions some have high arousal and some have low arousal. But in the
case of Pepsi people who drink Pepsi have a high level of arousal due to its taste, quality
and brand image.

SPECIFIC FEELINGS

Some people develop certain feelings about Pepsi. Some people feels very
great after drinking Pepsi but some people only satisfies their thirst of Pepsi. This is
observed by seeing people in different places. Some people appreciate the drink on every
sip they take and some people only say that it was great.

MOODS

The soft drink Pepsi creates some impact on the moods of the people some people
prefer drinking Pepsi when they are sad or tired to regain their strength and pleasant
mood.

EVALUATIONS

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If the person drinks Pepsi he certainly develop some feelings and evaluate
those feelings that are those feelings are due to the Pepsi or not. These kind of affective
responses are the evaluations.

DISTRIBUTION

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There are two ways of distributions:

DIRECT DISTRIBUTION

Manufacturer Whole sellers Retailers Customer


(Distributors)

INDIRECT DISTRIBUTION

Manufacturer Retailers Customer

DISTRIBUTION OF PEPSI COLA

Pepsi Cola is 100% indirect distribution except post mix.


Every sector has one distributor.

AREA ALLOCATION OF SUB SECTORS

ISLAMABAD

Standing on Faizabad and looking towards Faisal Mosque, Islamabad 1 is on right side
and Islamabad 2 is on left side.

* Two sales managers

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* Four sales officers.

ZONE I
Area included in Zone 1:
MIRPUR
KOTELY
BHlMBER
• One sales manager

• Four sales officers.

ZONE 2
Area included in Zone 2:
HAZARA DIVISION
ATTOCK
HASANABDAL
WAH CANTT
TAXILA

• One sales manager


• Four sales officers.

ZONE 3
Area included in Zone 3:
Murree
Gujar Khan
Rawat

Mandara

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Kahuta

• One sales manager


• Three sales officers.

POST MIX

ONE MANAGER

SALES TECHNICAL

Two sales officers Asst. manager technical


Four sales men six technicians

SALES FORCE
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Pepsi
Unit managers ------------------------>5
TDMs --------------------------------->12
Sales officer --------------------------->75
Vehicles ------------------------------->85

Coca cola

Unit managers ------------------------> 1


TDMs -----------------------------------> 2
Sales officer ---------------------------> 10
Vehicles ------------------------------- > 12

SALESFORCE OBJECTIVES
They have following objectives:

∗ To ensure the monthly, quarterly and annually sales volumes.


∗ To monitor the competitor’s activities.
∗ To ensure smooth running of promotional activities.
∗ To ensure availability of all the products with all the flavors.
∗ To safeguard the integrity of company’s ToTs (tools of trade) i.e. deep freezers,
visi coolers, chess coolers, Pepsi painted ice box, and Pepsi shaped liter stands.
∗ Timely distribution of products to the market.
∗ Proper maintenance of floor stocks.
∗ To place POS material as per company policy.
∗ To find out imitation plant, which make products in the market.
∗ To ensure that no over charging is done by salesmen.

THE COMPETITIVE ENVIRONMENT

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The main competitor of Pepsi Cola is Coca-Cola.

MISSION STATEMENT

"Our mission is to maximize share-owner value over time. In order to


achieve this mission, we must create value for all the constituents we serve, including
our consumers, our customers, our bottlers and our communities. The coca-cola
company creates value by executing a comprehensive business strategy guided by six
beliefs;

 Consumer demand drives every thing.


 Brand Coca-Cola is the core of our business.
 We will serve consumers a broad selection of the nonalcoholic ready- to-drink
beverages they want to drink throughout the day-
 We will be the best marketers in the world
 We will think and act locally.
 We will lead as a model corporate citizen.

The ultimate objectives of our business strategy are to increase volume, expand our share
of worldwide nonalcoholic ready-to-drink beverage sales, maximize our long-term cash
flows and create economic value added by improving economic profits. Ultimately, our
success in achieving our mission depends on our ability to satisfy more of their beverage
consumption demands and our ability to add value for our customers. We achieve this
when we place the right products in the right markets at the right time."
It's products are "Coke. Sprite, Fanta” and these three products have following % market
share:
Coca-Cola 10%
Fanta 45%
Sprite 85%

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Coca Cola Company is the world's leading manufacturer, marketer, and distributor
of non-alcoholic beverage concentrates and syrups, with world headquarters in Atlanta
and Georgia- The Company and its subsidiaries employ nearly 31,000 people around the
world. Syrups, concentrates and beverage bases for Coca-Cola, the company's flagship
brand, and over 230 other company soft-drink brands are manufactured and sold by the
Cola Company or its local subsidiaries are in nearly 200 countries around the world.
There are nearly six billion people in the world who are potential consumers of Coca
Cola's products. And this system has more than 16 million customers around the world
that sell or serve its products directly to consumers.

The Company's management structure consists of five geographic groups plus the
“MINUTE MAID COMPANY”

MINUTE MAID COMPANY

The minute maid company is a company's popular trademarks. Used since


1946, the brand name "Minute Maid" was selected for its appealing alliteration by
employees of the old Minute maid corporation, a I960 acquisition of the Coca-Cola
Company. In 1985, the name was extended to a new U.S. soft drink. Minute Maid orange.
The Minute Maid Company’s products include Minute Maid Premium Orange juice with
calcium. Minute Maid Premium Lemonade feed Tea, minute Maid Coolers, Hi-C Blast
and Five Alive-The Coca-Cola Company has commitment, more than a century old, to
social responsibility through philanthropy and good citizenship. The company's
reputation for good corporate citizenship results from charitable donations, employee
volunteerism, technical assistance and other demonstrations of support in thousands of
communities worldwide.

The Coca-Cola continues to sponsor the world's most exciting sports events. It
has sponsor the Olympic Games since 1928.Their commitment to the environment is
based on the principle that they will conduct their business in ways that protect and
preserve our environment.

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Furthermore, they promote a philosophy of sharing responsibility, where all
participants in the supply chain accept responsibility for the environment impacts
occurring in their specific part of the chain.

Working together with their suppliers, customers, regulators and environmental


partners, they can achieve an effective balance between responsible environmental and
economic stewardship. A few examples of these commitments include:

 Waste reduction,
 Water conservation,
 Water Quality,
 Ozone Protection,
 Regular Audits,
 Packaging & Recycling.

STRENGHTS

∗ Coca-Cola has environmental friendly atmosphere. It reduces pollution in the


environment.
∗ Its management keenly focuses on enhancing value for the customers and helping
them grow their beverage businesses.
∗ They always try to understand each customer's business and needs, whether that
customer is a sophisticated retailer in a developed market or a kiosk owner in an
emerging market.
∗ Special studies of broad interest to soft drink quality assurance are conducted and
shared.
∗ Change of old strategies to reposition their product.
∗ Re-launching of the product in a way to change the shape of the bottles.

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WEAKNESSES

∗ Strong brand recognition of Pepsi in consumer's mind.


∗ Weak advertisement of the product.
∗ Lack of commercials on television.
∗ Low quality of water which is used in a product.
∗ Lack of impressive and attractive out-doors promotion.
∗ The visually impaired members of society are effectively alienated with their text
reading software.
∗ Information seekers with text only browsers or images disabled to speed up
download times and reduce data transfer costs are alienated.
∗ Hi-tech internet devices like PDAs that rely on text are rendered useless.

THREATS

∗ Pepsi has very strong advertisement as compared to Coca-Cola. So Coca-


Cola has to advertise it self in a strong, impressive and attractive way and it
has to hire celebrities in the commercials.
∗ Changes in the non-alcoholic business environment. These include, without
limitation, competitive product and pricing pressures and their ability to gain
or maintain share of sales in the global market as a result of action by
competitors.

OPPORTUNITIES

∗ Increase in advertisement expenditure to attract the people.


∗ Reasonable prices which is easily affordable by its target market.
∗ To involve Pepsi-Co in a joint activity.

∗ To appear more ethical than their competitor.

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∗ Establish Coke as a superior product in the minds of customers

VENDING MACHINES

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Recommendations

Getting the most out of the Pepsi products - including not only improvement to
the products, but new products and new ways to enjoy them - is the goal of any Pepsi
Purist. Here are some ideas which PepsiCo should consider to increase customer
satisfaction.

Self-Cooling Pepsi.

If you've ever seen those chemical packs that the doctors use to provide a
cold compress for a muscle injury, then you could appreciate how cool it would be to
have a similar feature built into a Pepsi container. Buy it warm and take it with you for
hours. Then, about 10 minutes before you want a cold drink, switch on the cold! It would
also be acceptable to have the cooling pack be separate from the can, but the problem is
that the cooling packs could then be used to cool beverages other than Pepsi.

Pepsi-A-Day.

If you like to give the gift of a Pepsi per day to special friends and family.
You don’t want to buy a large pack of Pepsi. You want your special person to get the
fun and pleasure of getting a Pepsi in the mail every day. If one of the self-cooling
packs described above were included, well then the entire better!

Solid Pepsi

Purist Pepsi drinkers often find themselves in situations where food and
drink are simply not practical. In those cases a solid form of a Pepsi is needed. Doris
Day once starred in a movie which was about a product known as VIM - the mint
equivalent of a triple martini. A similar invention is needed for Pepsi purists to allow
the enjoyment of Pepsi in a confined environment - where drinking would be
awkward.

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CONCLUSION

Pepsi has 37% global market share operating in 190 countries. . At every level of
Pepsi Cola Company take great care to ensure that highest standards are met in
everything they do. In their product, packaging, marketing and advertising, they strive for
excellence because they think their customer deserves better quality products. They
promise to work towards improvements in all areas of their organization.

In their manufacturing and bottling process, strict quality controls are followed to
ensure that Pepsi Cola products meet the same high standards of quality that customers
expect from them. They also follow strict quality procedures during manufacturing and
filling of their packages. Each bottle and can goes through inspection and testing process.
Containers are rinsed and quickly filled through a high speed, state of the art process that
helps prevent any foreign material from entering the product. Additional quality control
measures help to ensure the integrity of Pepsi Cola products throughout the distribution
process from warehouse to store shelf.

Pepsi Cola local bottlers determine which products to pack and sell in their
territory based on local consumer demand and other market factors. Pepsi has a big
enough market share to challenge Coca Cola. They have their best balance of promotions,
communicating to their target audience through celebrities like Robbie Williams, David
Bekham, Britney Spears, etc. The Pepsi chart also helps in promoting as the youth like
music. Pepsi is gaining the football market from Coke. Pepsi also promotes on internet,
newspaper, through sponsorships, radios, etc.

Pepsi also promote its products in the supermarkets by keeping discounts like
buy one get one free. It also keeps competition with great prizes which catches the eye of
the consumer.

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