Bsit 4th On Pepsi

Pepsi cola
Pepsi Cola International

Pepsi Cola Company includes in beverages industry. Pepsi Cola
international is well reputed multinational company which is doing its
business in almost every country of the world. The company is
registered in New York stock exchange U.S.A. to make a better
control over the business the company has given the manufacturing
rights to different companies. Now these companies are producing
the products on the behalf of the company by using their trademark.
To maintain their goodwill in the market the company has a strict
policy while granting the manufacturing rights Pepsi-Cola have
standardized products all over the world (e.g, same in size, shape
and quality). The franchises have to follow all the standards as given
by the company. Even they have the mobile team, which check the
company after 2 or 3 months. Either company is producing products
according to the standerds given by the Pepsi Cola international.
Principles of Marketing 1
Pepsi cola
Shamim & company

History:
Shemim & company was established in 1967 as a private limited
company. It started its business in 1968. Allah Nawaz Khan Tareen
(Ret. DIG) got licensee of 7-up franchise and was producing only
one product, 7-up. But in 1973, it became Pepsi Cola franchise. Now
a days MD of Shamim and Company is Allah Din Khan Tareen.
Introduction
In Pakistan, at present shemim & company is the largest production
unit out of these 11. Shamim & company covers the area of Southern
Punjab which consist of Multan, Bahawalpur, Bahwalnagar, Dera
Ghazi Khan, Sahiwal, Khenewl, Rajan Pur, Mianwali and Layyah. The
company is properly serving all these areas with quality products.
Mission Statement
“To earn profit by meeting the customers needs with quality products”.
Pepsi cola
Departments
For effective control & to serve these areas more properly the
company has the following departments.
Production Department
This department is responsible for the production of the products
according to the requirements of the customers.
Administration & Personal Department

Administration & personal department deals with the overall matters
of the company and takes different actions for increasing the
performance of the company. This department also carries out
different benefits programs.
Sales / Marketing Department

This department makes different efforts to increase the sales of the
company by sponsoring different social programs and by advertising
their products.
In marketing department, 6 regional sales manager, 19 divisional
sales managers, 15 area sales manager, 90 sales officers and
supervisor.
Pepsi cola
Finance Department
It deals with the financial matters of the company. It collect the
revenues and makes different payments and maintain proper record
of the financial performance of the company’s business to show the
net result in the form of either profit or loss.
General Manager
G. Manager of each department is responsible for the performance of
his department. To carry out his duties more efficiently he has
assistant manager in charges who help him to perform his duties
successfully.
General Manager Operation

To whom report is provided by manager of administration shipping’s
manager and workshop’s manager.
G. Manager Of Technical
Shift incharges, shift chemists and lower level operating employees
report to G. Manager technical.
Pepsi cola
G. Manager Finance
Financial accountant, management Accountant and manager of
management Of information system report to G. Manager finance.
In Pakistan, Shamim & Company is among of top three out of eleven,

in terms size. When frenchise cross a certain volume, plant is
classified as, “maga plant status Pepsi Cola has achieved in 2000.
Organizational structure
CEO
(Chief Executive Officer)
COO
(Chief Operating Officer)
G.M Sales G.M Operation G.M Financial G.M Fianance
Business
90
development
managers
6 RSM 19 DSM 15 ASM Supervisor
Pepsi cola
Objective
To maintain market leadership and to increase market sales. Pepsi
Cola is in Pakistan as compared to its competitors according to
Shamim & company we have to place our position or top whenever
we make policies leaders keep in mind that me are number one in
current market position.
ProductPlanning
Product planning is systematic decision making relating to are
aspects of the development and management of a firm’s product
including branding and packaging. Each product consist of a bundle
of attributes (Features, Functions, benefits and uses) capable of
exchange or use, usually a mix of tangible and intangible forms.”
Product
“A product may be an idea , a physical entity( a good) or a service or
any combination of the three. It exists for the purpose of exchange in
the satisfaction of individual and organizational objectives”.
Pepsi cola
Ways of product according to firm definition

There are three ways of the product according to the firm definition.
a) Tangible product / actual product
b) Augmented product.
c) Generic product.
“A tangible product is a basic physical entity, service or idea. It has
precise specifications and is offered under a given description or
model number”.
Features / Characteristics Of Tangible Product

Color, style, taste, size, weight, durability quality of construction and
efficiency in use one the some tangible product features.
Actual product has 5 characteristics.

 Quality level
 Features
 Design
 Brand name
 Packaging
Example Of Tangible Product

Pepsi Cola its name, parts, styling, features, packaging and other
attributes have all been combined carefully to deliver the core benefit.
Pepsi cola
Augmented Product
“It includes not only the tangible elements of a product but also the
accompanying cluster of image and service features”.
Generic Product
“Focuses on what a product means to the customer, not the seller. It
is the broadest definition and is consistent with the marketing
concept”.
Classification Of Goods
We can classify the goods into 2 classes.
1) Consumer products
2) Industrial products.
Consumer Products
“Consumer products are final consumer goods and services. The use
of the goods or service designates it as a consumer product”.
Category Of The Consumer Product

There are three categories of the consumer product.
1) Convenience product.
2) Shopping product
3) Specialty product
Pepsi cola
4) Unsought product
Convenience Product
“Convenience products are purchased with the minimum effort and
are categorized as staples, impulse products, and emergency
products”.
Staples
“Staples are low priced items that are routinely purchased on a
regular basic”.
Impulse Products
These products are the items that the consumer does not plan to buy
on a specific trip to a store.
Emergency Products
Emergency products are the items purchased out of urgent need.
Shopping Products
Shopping products are those products for which the consumer feel
they lack sufficient information about product alternatives and their
attributes and therefore must acquire further knowledge in order to
make the purchase decision.
Types Of Shopping Products

There are 2 types of the shopping products.
Pepsi cola
1) Attribute based shopping products.

2) Price based shopping products.
Attribute Based Shopping Products

With the attribute based shopping products, consumers get the
information and then evaluated product features, warranties,
performance, options and other factors.
Price Based Shopping Products

In case of price based shopping products, consumers judge product
attributes to be similar and look around for the least expensive item.
Specially Products
Especially products are the particulars brands, stores and persons to
which consumer are loyal. Consumer is fully aware of their products
and their attributes prior to making a purchase decision. They are
willing to make a significance effort to acquire a brand desired and
will pay a higher price than competitive products, if necessary. In
specially products, substitute are not acceptable.
Unsought Product
“Unsought product that the consumer is not yet aware of or a product
that the consumer is aware of but does not want right now”.
Pepsi cola
Consumer Product
Pepsi Cola’s product is included in consumer product and came
under the category of specially product about which the consumers
are fully aware and are completely loyal with it.
Industrial / Business Products

“Industrial products are the goods and services purchased for use in
production of other goods and services in the operation of a business,
or for resale to other consumer”.
Items included in industrial products.
 Raw material
 Fabricating material and parts
 Installations
 Accessory equipment
 Operating supplies
Raw Material
“Business goods that become part of another tangible product prior to
being processed in any way are considered raw materials”.
raw material includes
 Goods found in their natural state, such as minerals, land, and
products of the forests and seas.
 Agricultural products such as cotton, fruits, livestock and animal
products including egg and raw milk.
Pepsi cola
Fabricating Material And Parts

Business goods that become part of the finished product after having
been processed to same extent fit into the category of fabricating
material and parts.
Installation
Manufactured products that are an organization’s major expensive
and long lived equipment are termed as installation.
Accessory Equipment
Tangible products that have substantial value and are used in an
organizations operations are called accessory equipment. This
category of business goods neither becomes an actual part of
finished product nor has a significant impact on the organizations
scale of operations.
Operating Supplies
Business goods by low dollar value per unit, a short life, and aid in an
organizations operations without becoming part of the finished
product are called operating supplies.
Element Of Product Mix

♦ Product item
♦ Product line
♦ Product mix
Pepsi cola
Product Item
Product item is a specific model, bran, size of a product that a
company sells.
Product line
A group of products that are closely related because they function in
a similar manner, are sold to the same customer groups, are
marketed through the same types of outlets, or fall within given price
ranges.
Product Mix
A product mix is the set of all products offered for sale by a company.
The structure of a product mix has both breadth and depth.
Breadth
Breadth is measured by the number of product lines carried.
Depth
Depth of the product mix is defined by the variety of sizes, colors and
models offered within each product line.
Pepsi Cola
Pepsi cola
Beverages have four product lines with the name of Pepsi Cola
Mirinda, Team and Seven up and its product mix also consist of there
four product lines which shows the width / breadth of Pepsi Cola.
Its depth includes one product item and one product line in the form
of Pepsi Seven Up, Mrinda And Team.
New Product Development Strategy

The development of original products, product improvements, product
modification and new brands through the firms own research and
development efforts.
The stages in the new product development.
Stages In Product Development

1) Idea generation
2) Idea screening
3) Concept development and testing
4) Marketing strategy
5) Business analysis
6) Product development
7) Test marketing
8) Commercialization
Idea Generation
New product development stars with the idea generation which is
defined as the systematic search for new product ideas. A company
Pepsi cola
typically has to generate many ideas in order to find a new goods

ones.
Concept Testing
Testing new product concepts with a group of target consumer to find
out if the concepts have strong consumer appeal.
Marketing Strategy Development

Designing an initial marketing strategy for a new product based on
the product concepts.
Business Analysis
A review of the sales, costs and profit projections for a new to find out
whether these factors satisfy the company’s objectives.
Product Development
Developing the product concept into a physical product in order to
assure that the product idea can be turned into a workable product.
Test Marketing
The stage of new product development in which the product and
marketing program are tested in more realistic and market setting.
Control Test Marketing

Several research firms keep controlled panels of stores that have
agreed to carry new products for a fee.
Pepsi cola
Simulated Test Markets

Companies can also test new products in a simulated shopping
environment. The company or research firm shows ads and
promotions for a variety of products, including the new product being
tested, to a sample of consumers.
Commercialization
Test marketing gives management the introduction needed to make a
final decision about whether to launch the new products the
companies goes ahead with commercialization. It means introducing
a new product into the market.
Product Life Lyele Strategies

The course of a products sales and profits over its life time it involves
five distinct stages.
1) Product development
2) Introduction
3) Growth
4) Maturity
5) Decline
Product Development
It begins when the company finds and develops a new product idea
during product development, sales are zero and the company’s
investment costs mount.
Pepsi cola
Introduction Stage
The product life cycle stage in which the new product is first
distributed and made available for purchase.
Growth Stage
The product life cycle stage in which a product’s sales start climbing
quickly.
Maturity Stage
The stage in the product life cycle in which sales growth slows or
levels off.
Decline Stage
The product life cycle stage in which a products sales decline.
With the reference of the product life cycle, they says that their
product is still at the maturity stage and will never came to the decline
and they say that they are trying to retain this product maturity level
by increasing their market share and by using the other marketing
strategy tools. They claim that they will ever remain at this maturity
level.
Product Mix Strategy

1) Positioning the product
2) Expansion the product
3) Alteration
4) Contraction
Pepsi cola
5) Trading up and trading down
Positioning The Product

Management’s ability to bring attention to a product and to
differentiate it in a favorable way from similar products goes a long
way toward determining that products revenues. Thus management
needs to engage in positioning, which means developing the image
that a product projects in relation to competitive products and to the
firms other products.
Positioning In Relation To A Competitor

For some products the best position is directly against the
competition. This strategy is especially suitable for a firm that already
has a solid differential advantage or is trying to solidify such an
advantage.
Pepsi Cola beverages uses the positioning strategy which is related
to the competitor because it consider that it is market leader, and it try
to present its product quite different in taste, packaging, styles
designing and quality than its competitors such as coca cola, Rc cola
etc. And it always keep an eye on its existing as well as its new
coming competitors that is double cola.
Positioning In Relation To A Product Or Attribute

Sometimes a company’s positioning strategy entails associating its
product with the product class and attribute. Some companies try to
place their products in a desirable class such as made in USA. But
Pepsi Cola does not use such type of positioning strategy.
Pepsi cola
Positioning By Price And Quality

Certain producers and retailers are known for their high prices.
Pepsi –Cola does not to follow the price positioning strategy because
its COO (Chief Operating Officer) says that they have changed the
strategy of giving discounts because they have to changed their
policies by seeing their competitor, but Pepsi-Cola follow the quality
positioning strategy.
Product –Mix Expansion

Product mix expansion is accomplished by increasing the depth with
in a particular and the number of lines of firm offers to customers.
When a company adds a similar item to an existing product line with
the same brand name, this is a line extension.
But Pepsi- Cola neither extends its product line nor expand its
product mix. Still it has its 4-product lines that are Pepsi –Cola,
Mirinda, team and Seven-up.
Alteration Of Existing Products
Rather than developing a completely new product, management
might do well to take a fresh look at the organizations existing
products. After, improving an established product, termed product
alteration can be more profitable and less risky than developing a
completely new product.
Pepsi Cola is an already established company with the big market
share, and it changes its policies to maintain the establishment of its
products and market share by keeping the eye on its competitors,
strategies and policies.
Pepsi cola
Product Mix Contraction

Product mix contraction is carried out either by eliminating an entire
line or by simplifying the assortment within a line. But Pepsi Cola
does not use the product mix contraction because its all product lines
have created a strong and un-volatile able images in the consumers
mind.
Trading Up And Trading Down

The product strategies of trading up and trading down involve a
change in product positioning and an expansion of product line.
Trading up
It means adding a higher price product line to attract a broader
market. Also the seller intends that the new products prestiges will
help the sale of its existing lower price products.
Trading Down
It means adding to company’s product line. The firm expects that
people who cannot afford the original higher price product or who see
it as too expensive will buy the new lower price one. The reason is
that the lower price product carries same of the status and some of
the other more substantive benefits of the higher price item.
In Pepsi Cola there is no such type of product differentiation on the
basis of price. Price may differ due to the quantity level.
Pepsi cola
For example: The price of 250 ml bottle is Rs. 8. The price of 1liter
bottle is Rs. 30 in case of non-returnable bottle and 1.5 liter bottle’s
price is Rs. 45.
Branding
An important part of product planning is branding, the procedure a
firm follows in researching, developing and implementing its brands.
As already noted, a brand is a name term design or symbol that
identifies the products of a seller or group of seller.
There are four types of brand designation.
Brand Name
“Brand name is a word, letter, group of words or letters that can be
spoken. Pepsi-cola has introduced its product lines under the same
brand name that is PEPSI”.
Brand Mark
“Brand mark is a symbol, design, or distinctive colouring and lettering
that can not be spoken”.
Pepsi cola
Trade Characters
Trade character is a brand mark that is personified.
Trade Mark
“A trade mark is a brand–name, brand mark or trade character or
combination there of, that is given legal protection”.
So that trade mark of the Pepsi can be a symbol or the brand name
ie Pepsi.
Reason Of Branding
According to Pepsi-Cola, branding is very necessary due to following
reasons.
♦ Pepsi-cola products can easily be identifiable than that of their
competitors. A customer can order a product by name instead of
description.
♦ Customers are assured that they are demanding a certain level of
quality product and people believe that they are getting the
comparable quality. If the same brand is recorded.
♦ They believe that the well branded legally protected product is
directly identified by the customers and leave the positive good
image in customer mind.
♦ They believe that well branded product is a well known product.
♦ Branding the product is necessary to build the long lasting image.
In consumer mind so as the people become brand loyal. They say
that 95% of the customer are brand loyal.
Pepsi cola
♦ They believe that they enhance their product prestige and social
visibility through brand name. And furthermore they are enhancing
this social visibility through sales promotion techniques by
highlighting the brand –name of Pepsi.
♦ Due to the brand–name, Pepsi –Cola has built a good and
remarkable image in consumer mind. So people feel less risk at
the time of purchasing the Pepsi-Cola products and towards it
people show the positive and favourable attitude.
♦ Even for there all products their brand name is same but they
believe that branding segmentize the markets by creating tailored
image.
♦ Cooperation from distribution intermediaries is greater for well
known brands. A strong brand also may enable the producer to
exert more control in the distribution channel.
♦ A brand may be used to enter a new product category.
♦ According to Pepsi-Cola through branding, it is very easy to sell
out their product –lines, because the people believe such type of
legal and quality proved symbols to reduce their purchasing,
social, psychi and price risks.
Brands Philosophy
When Pspsi Cola developing a brand strategy, needs to determine
its branding philosophy. This philosophy outlines the use of
Pepsi cola
manufacturer, dealer and in generic brands as well as the use of

family or individual branding.
Manufacturer brands (national brands)

Manufacturer brands contain the names of manufacturers and
generate the vast majority of sales revenues for most product
categories. Pepsi Cola appeal to a wide range of the consumers,
who desire the low risk of the poor product performance, good
quality, routinized purchase behavior, status and convenience
shopping. According to Pepsi Cola, manufacturer brands are well
known and trusted because quality control is strictly maintained.
Their brand names are identifiable and present distinctive images to
shoppers.
Manufacturers normally produce a number of product alternatives
under their brands. Through the manufactures brand the major
marketing focus of Pepsi Cola is to attract and retain consumers who
are loyal to the firm’s offerings and to control the marketing effort for
the brands.
Private Brands
It contains the names designated by wholesalers or retailers and
account for the significant levels of sales revenues in many product
categories. Dealers secure relatively exclusive rights for their brands
and are usually more responsible for their distribution. Private brands
typically require large total investment.
Wholesalers and retailers are able to sell their items at lower prices
and still obtain higher per-unit profits. The marketing focus of private
Pepsi cola
brands is to attract and retain the customer who are loyal to the
dealer and for the distributor / retailers to exert control over marketing
plan for these brands large wholesalers and retailers now advertise
their brands extensively.
Generic Brands
Generic brand emphasize the names of the products themselves and
not manufacturer and dealers names. Generics appeal to price
conscious, careful shoppers, who perceive them as representing a
very good value, are sometimes willing to accept lower quality, and
often purchase for large families generic brands are sold one
advertised and receive secondary shelf space consumers must
search out these brands. The major marketing goal is to offer low
priced, lower quality items to consumers interested in price savings.
So Pepsi Cola / obtain the manufacturer brand instead of the generic
and private brands.
Packaging
“Packaging is a part of product planning in which a firm researchers,
designs, and produces its packaging.”
The physical container may be a cardboard, metal, plastic or wooden
box; a cellophone, wax paper, or cloth wrapper; a glass, aluminum, or
plastic jar or can; a paper bag; styro foam; some other material; or a
combination of these products frequently have more than one
physical container.
Pepsi cola
But packaging depends upon the product nature as well as structure

means either it is liquid, semi liquid or solid.
In case of Pepsi Cola, they take the packaging designs by
considering what is better for company and what is better or
convenient for the transportation.
For protecting the syrup, Pepsi Cola uses the glass as well as plastic
bottles of different quantity.
Packages of Pepsi Cola

1) 250 ml glass returnable bottle.
2) 175 ml glass returnable bottle.
3) 1 L glass returnable bottle.
4) 1/2 L Pet non returnable bottle
5) 1 L Pet and non returnable bottle
6) 250 ml glass non returnable bottle
7) Post mix (fresh fountain).
From fresh fountain, we can buy the fresh soda of different flavour
such as Pepsi Cola, team, Miranda and seven-up.
A year ago, Pepsi Cola has introduces the tray packaging which was
not useful for the company and retailers, because this packaging
create the leakaging problem during the transportation and the
shopkeeper do not feel convenience in placing of such type of packs.
In their shops so now the Pepsi Cola has introduced the new
packaging design. Pepsi Cola has packed its plastic bottles in
Pepsi cola
cardboard cartons to save such leakaging, due to this packaging its

factory cost has been increased.
Basic Packaging Function

According to coca cola packaging of the product should perform such
type of functions.
♦ Packaging must facilitate product usage. Product disbursement
may be eased through multiple packaging Pepsi Cola offer the
packages that are reuse able one a product is depleted. For
example, in case of 1 L and 1.5L plastic non returnable bottle,
people can use these bottles after depleting the product / liquid.
♦ Through packaging the company and its brand-name are
identified. Pepsi-Cola consider that packaging is an important
method of communication with the consumer packaging also
presents a company and product image and display the product as
well.
♦ At the time of packaging the product, Pepsi-Cola mainly consider
the needs of the wholesales and retailers in its distribution
channel, that makes a product easy to ship, handle and store. At
the time of packaging Pepsi-cola should also thinks the product
that packaging should by durable which allow their contents to
have a reasonable shelf life.
Pepsi cola
Factors Considered In Packaging Decision

Pepsi-Cola also consider following factors at the time of the taking
decision about the product –packaging.
♦ Pepsi –cola personnel think that package design affects the image
and quality of the product and company. Pepsi-cola consider that
the colour, shape and material all influenced the consumer
perception about the firm and its product.
♦ In family packaging, Pepsi-cola uses a common element on each
package, in a product line.
♦ Pespi-Cola as the international firm uses the standardized
packaging which increase the world –wide recognition. So Pepsi-
cola utilize standard packages whenever possible.
♦ Pepsi Cola uses glass, plastic, cardboard, polythene material to
preserve its product.
It uses the glass and plastic bottles to preserve the liquid,
cardboard material for protect the plastic bottle in cartons and
polythene material to place the bottles into the tray- packing.
♦ Pepsi Cola also consider the package features, which provide it
the competitive advantage. We know that Pepsi Cola is a market
leader so it keep the eyes on each and every competitive
advantage. For example now it has introduced the cardboard
bottle packing.
♦ Pepsi- cola also give importance to the size, colour, and shape of
its packages. It has introduced the medium-sized carboard boxes
with the different traditional colours such as for Pepsi-Cola it us
Pepsi cola
the Blue and red colour. For Mirinda it uses orange and green
colour and for team and seven –up it uses the green colour
packages.
♦ As Pepsi-cola involve in Beverages business, so every bottle has
its individual existence without wrapping.
♦ As Pepsi-cola has its fix rates of bottles so it does not think that
there is any need of preprinted price. About UPC (Universal
Product Code), Pepsi-Cola thinks that as Pepsi-cola is franchi and
it has to sell its products within its surrounding areas so there is
no importance of UPC for its. Main reason of not using “UPC” is
that, it is not in list of exporters.
Price
Price is the amount f money and / or other items with utility needed to
acquire a product price is significant in our economy, in the
consumer’s mind, and in an individual firm value is also important as
a component of value. Value is the ratio of perceived benefits to price
and any other incurred costs. Good value indicates that a particular
product has the kinds and amount of potential benefits such as
quality, image and purchase convenience consumers expect at a
particular price level. A product’s price is a major determinant of the
market demand for it. Price affects a firm’s competitive position and
its market share. To be useful, the pricing objective management
Pepsi cola
selects must be compatible with the over all goals set by the firm the
goals for its marketing program.
There are 3 pricing objectives:
Profit oriented:
 To achieve a target return.
 To maximize profit.
Sales oriented
 To increase sale volume
 To maintain or increase market share
Status oriented
 To stabilize prices
 To meet competition
Pepsi Cola use status quo-oriented pricing objective Pepsi Cola

intended simply to maintain the firm’s current situation that is, the
status quo.
Pepsi Cola adopt status quo pricing goals to avoid price competition
is not necessarily passive in its marketing. Quite the contrary typically
like other status quo-pricing objective companies, Pepsi Cola also
compete aggressively using other marketing mix elements. Product,
distribution, and especially promotion or simply Pepsi Cola use
approach that is non-price competition.
Pepsi cola
Price stabilization often is the goal in industries where products are

highly standardized and in beverage industry, products are
standardized so beverage industry try to attempt price stabilization.
Place
Place planning involves movement and ownership in a channel of
distribution, which consists of channel members. Middlemen are
channel intermediates distribution arrangements very widely. The
choice of a channel is very widely. The choice of a channel is quite
important.
Channel of distribution, which is comprised of all the organizations or
people involved in the distribution process those participating in the
distribution process are known as channel members and may include
manufacturers, service providers, wholesalers, retailers, retailers,
marketing specialists, and / or consumers. When the term middlemen
is used, it refers to wholesalers, retailers, and marketing specialist
(such as transportation firms) that are acting in their roles as
intermediaries between manufactures / service providers and their
consumers. A middleman is an independent business concern that
operates as a link between producers and ultimate consumers or
industrial users. Middlemen can perform channel functions and
reduce costs, provide expertise, open markets and lower risks. The
sorting process coordinates the goals of manufacturers and
Pepsi cola
consumers. Channel choice depends on consumers, the company,

the product, competition, existing channels and legalities.
“Distributions management of the flow of products from manufacturer
our customers and from warehouse to retailers, involving the storage
and transportation of products”. A successful organization is that
which can distribute its products to their customers at the right time
and the right place. Shamim & company has efficient distribution
system because it has divided the whole area into different regions
and have different distributors for performing their activities in these
regions.
All the activities related to distribution and sales is computerized and
whole computer section ahs been made for this purpose. The
process for distribution is given below:
First of all distributors require filled bottles and came up with empty
bottles. Slip is made for this purpose on which no. of empty bottle,
date, name of distributor etc. are recorded. Distributors go to the
computer section where all the credit and debt entries are checked.
Computer operator checks that how much credit will be given to the
distributors according to company policy. After this distributor take the
slip and go to warehouse for supply of filled bottles.
There are some salesmen at each distribution center. Certain area
has been assigned to each salesmen. The concerned sales-man
fulfills the orders of his customer’s e.g. the retailers who purchase the
bottles from them. To meet the urgent demand certain level of safety
stock is also kept at each distribution center especially in their peak
season and on the special days such as Eid days.
Pepsi cola
In a direct channel the manufacturer performs all functions. An

indirect channel uses independents using exclusive, selective or
intensive distribution depends on objectives, middlemen, customers
and marketing.
Pepsi Cola use intensive distribution as it widespread market
coverage, channel acceptance volume sales and profits middlemen
of Pepsi Cola, many in numbers, all types of outlets final customers
of Pepsi Cola many in numbers, connivance, oriented. Pepsi Cola’s
marketing emphasis or mass advertising, nearby location, items in
stock. Wholesaling is the buying / handling of merchandise and its
resale to organizational buyers wholesalers provide functions ranging
from distribution to risk taking. Wholesalers have obligations to their
suppliers and to their customers.
Shamim & company has 140 distributors in whole Multan franchise.
Retailing, the last stage in w channel, includes the activities in selling
to final consumes.
Manufacturers, importers, and wholesalers act as retailers when they
sell products directly to the final consumers. Retailing is an important
aspect of distribution because of its impact on the economy, its
functions in the distribution channel, and its relationships with
suppliers.
In this franchise of Pepsi cola, Shamim & Company, has no. of
retailers more then 30,000. Management of shamim and company
know this thing that retailers are more cost conscious. Due to this
reason, this company offers to retailers, wristwatch on buying of ten
crates and on purchasing two crates, the company give them
Pepsi cola
coupons. For waking their performance effective, the management

also offered discounts to them.
Pepsi cola
Promotion
Promotion is any form of communication used to uniform, persuade
and / or remind people about an organization’s or individual’s goods,
services, image ideas, community involvement, or impact on society.
Promotion planning is a systematic decision making relating to all
aspects of an organizations or individual’s communication efforts.
The Importance Of Promotion

Promotion is a vital part of marketing. “Word of mouth
communication” occurs when people state opinions to others. Without
sustained positive word of mouth it is difficult for a company to
succeed.
For Pepsi Cola, people have sustained positive word of mouth.
Pepsi Cola also believed on the value of promotion as:
 Establishes an image such as prestige, discount or innovative for
the company and its goods and services.
 Communicates features of goods and services.
 It creates awareness for new goods and services.
 It can reposition the images or uses of faltering goods and
services.
 It generates enthusiasm from channel members.
 It explains where goods and services can be purchased.
 It can persuade consumers to trade up from one good or service to
a more expensive one.
 It alerts consumers to sales.
 It justified the prices of goods and services.
Pepsi cola
 It reinforces loyal consumers.
Types Of Promotion
Four types of promotion are:
 Advertising
 Publicity
 Personal selling
 Sales promotion
Pepsi Cola applied all these four types of promotion.
Advertising
It is paid non-personal communication regarding goods, services,
organizations, people, places and ideas that in transmitted through
various media by business firms, government and other nonprofit
organizations and individuals who are in some way identified in the
advertising message as the sponsor. The message in generally
controlled by the sponsor.
Pepsi Cola also use these following advertising medium, daily
newspaper, weekly newspaper commercial television, cable
television, magazines, Radio business publication, and transmitters.
The basic advertising themes are the product, consumer, and / or
institutional appeals. Pepsi Cola use “The Consumer Related
Theme”, in which good or service uses explained cost benefits of
good or service shown, emphasis on how good or service helps
Pepsi cola
consumer, threatening situation & incentives given to encourage

purchases.
Publicity
It is non personal communication regarding goods, services,
organizations people, places and ideas that is transmitted through
various media but not paid for by an identified sponsor. The message
is generally controlled by the media.
Pepsi Cola also promote its products by using this tool, that is
publicity, of promotions.
Personal Selling
Personal selling uses one to one interactions with buyers. Sales
promotion includes paid supplemental promotion efforts.
Selling in stressed when orders are large, consumers are
concentrated items are expensive, and service is required. Selling
has limited audience high costs per customers, and a poor image. A
manager must oversee personal selling functions.
Sales person compensation can take one of three general formats:
Straight salary, straight commission or a combination of salary and
commission or bonus.
Under a “straight salary plan”, a salesperson is paid a flat amount per
hour week month or year. The advent ages are that both selling and
non-selling tasks are specified and controlled, there is security for
sales people, and expenses are known in advance. The
disadvantages are the Low sales force incentive to increase sales
Pepsi cola
expenses not tied to productivity, and continuing costs even if there

are low sales order takers are usually paid straight salaries.
With a straight commission plan a sales purser’s earnings are directly
related to sales, profits or some other type of performance. The
commission rate is often keyed to a quota, which is productivity
standard for the salesperson. A quota can be based on total sales,
total profit, customers serviced, products sold or another criterion.
The advantages of a strength commission plan are the motivated
sales people no fixed sales person compensation costs and
expenses tied to productivity. The disadvantages are the lack of
control over non-selling tasks performed the instability of a firm’s
dollar expenses and employer earnings, and the risk to employees.
To obtain the advantages of both salary and commission oriented
methods, many firms use elements of each is a “combination
compensation plan”. Such plans balance company control, flexibility,
and employee incentives. Sometimes bemuses are stipulated for
outstanding individual or company performance.
Pepsi cola use combination compensation plan.
Pepsi cola’s supervision encompasses four aspects of sales
management motivating sales personal, measuring performance,
completing non selling tasks and initialing behaviour changes.
Sales Promotion
Sales promotion efforts are greater now then ever before. Many firms
are looking for any competitive edge they can get and this
increasingly involves some kind of sales promotion. The various from
Pepsi cola
of sales promotion are non more acceptable to firms and consumer

then in the past.
Today more consumers look for sales promotions before buying, and
channel members are putting more pressure on manufactures for
promotions. During economic downturns, even more consumers are
interested in value oriented sales promotion. Because of rising costs,
advertising and personal selling have become more expensive in
relation to sale promotion.
Sales promotion lures customers, maintains loyalty, creates
excitement, is often keyed to patronage and appeals to channel
members. Sales promotion may hurt image, cause consumers to wait
for special offers, and shift the focus from the product Pepsi cola offer
for consumer “the crown schemes”. Is it has been given Mercedes to
one consumer and before Pepsi Cola up till now not other its
competitors did propose such big offer. Investment by Pepsi Cola in
market is very high.
For retailers, the company use tools of trade and has been provided
refrigerator to 15,000 shops so that they exclusively sell Pepsi brand.
This company has also provided 10,000 litter racks to shops, 1000
bottle racks to shops 20,000 shops signage (boards etc) 5,000 ice
chest in rural areas. The company also provides cash on credit Rs.
1000 to its financially needed shops.
Some recently offerings by the Shamim & Company to promote its
products to consumers, as sales promotion by shell and Pepsi cola
on purchasing of twenty litter “Super Petrol”, one litter Pepsi bottle will
be free. On Eid event, in holiday inn, 1.5 litter Pepsi and one cake
has been given to each consumer. Pepsi cola also provide such
Pepsi cola
offers as Dubai’s ticket, price discount as in holy Ramzan month, sale

Rs. 5. on 1.5 litter. In Abdullah center, Allahdin, in Tusso shop, help in
shop board. Shamim & company don’t want to leave aggressive
policies against its competitors in which main competitor is coca cola
and in others one Rc. cola, double cola local drinks, and to promote
its products.
On the shop board of Tusso, company has to bear cost more then
200000 to maximum display of product, company also investing more
and more so that it can compete with competitors. Due to availability
of fresh fountain machines, the company also promoting its products
in various areas due to these sales promotion, they have increased
their sales as compared to last year.
Market segmentation & target market

Dividing a market into distinct groups of buyers with different needs,
characteristics, or behaviour who might require separate products or
marketing mixes is called market segmentation.
Pepsi cola segments its products as for people of having different
tastes as for example, team, Pepsi, Miranda and 7-up. Pepsi cola is
offering these products so that different needs of consumers fulfill
markets consist of buyers, and buyers differ in one or more ways.
Pepsi cola
Levels of market segmentation

Mass marketing
In which mass producing, mass distributing, and mass promoting
about the same product in about the same way to all consumers.
Segment marketing
In which isolating broad segments that make up a market and
adopting the marketing to match the needs of one or more segments.
Niche marketing
Focusing on sub-segments or niches with distractive trails that may
seek a special combination of benefits.
Micro marketing
The practice of tailoring products and marketing programs to suit the
tasks of specific individuals and location include local marketing and
individual marketing.
a) Local Marketing: Tailoring brands and promotion to the
needs and wants of local customer groups
b) Individual marketing: Tailoring products and marketing
programs to the needs and preferences of individual
customers also labeled “markets-of-one marketing” and
“one-to-one marketing”.
Pepsi cola apply segment marketing level of market segmentation.
Target market is a set of buyers sharing common needs or
characteristics that the company decides to service. According to
Pepsi cola
them, from seven to eight years, new generation is their target

market.
But as consumers perceived that for their each product, target market
is different, for Miranda, children are their target market. For 7-up,
usually patients use this product. For Team, Pepsi new generation is
their target market.
Product position
The way the product is defined by consumers on important attributes
the place the product occupies in consumer’s mind relative to
competing products. Consumers considered Pepsi cola as on top, no
1 position. 95% people are brand loyal of Pepsi cola. To maintain its
position the management of Pepsi cola use management of Pepsi
cola use aggressive polices to maintain its position.
Marketing Environment
The factors and forces outside marketing that affect marketing
management’s ability to develop and maintain successful
transactions with its target customers. The marketing environment
offers both opportunities and threats.
So by Pepsi Cola knows the vital importance of constantly watching
and adapting to the changing environment.
Pepsi cola
Pepsi Colas marketers are responsible for identifying the important

changes in the environment. Managers also feel the need of
observing the outside environment.
Pepsi Colas marketers use the 2 discipline methods for sacking the
environmental changes.
 Marketing intelligence
 Marketing research.
So Pepsi Cola uses the above disciplined methods for collecting the
intonations about the marketing environment marketers also spend
time in the customer and competitor environment.
Pepsi cola’s environment is the combination of 2 major environments.
1) Micro environment
2) Macro environment.
Micro environment
The forces close to the company that affects the ability to serve its
customers the company, suppliers, marketing channel firms,
customer markets, competitors and publics.
The company
In designing the marketing plans, Pepsi cola’s marketing
management takes other company groups such as top management,
finance, research and development, purchasing, manufacturing and
accounting groups into accounts. In this top management sets the
company’s ,mission objectives, broad strategies and policies.
Pepsi cola
Marketing managers make the decisions within the planes made by

the top management and marketing plans must be approved by the
top management before they can be implemented.
Suppliers.
Suppliers provide the resources needed by the Pepsi-Cola to
produce the beverages so suppliers developments can seriously
affect marketing. So marketing managers of Pepsi-Cola watches the
availability supply shortages or delays, labour strikes and other
events can cost sales in the short run and damage customer
satisfaction in longer run.
Raw material of Shamim and company is consist of
concentrate, sugar, empty bottles, ammonia, dioxide, caustic soda
and other chemicals used in production process and lab so for the
selection of supplier they contact different suppliers of the quotations
through phones, faxes etc or some times through daily news paper
company has different suppliers for the supply of sugar and different
chemical bottles etc which are located near the compan7 such as
Shaikhupura, Jhang etc. they rely on co-operative relationship rather
then competitive rations.
So the supply of raw material should be in time due to cooperative
relationship.
Customers
Pepsi cola the need to study its customer markets closely. Consumer
markets consist of individuals and households that buy the goods and
services for personal consumption.
Pepsi cola
Business markets buy the goods and services for further processing
or for use in their production process. Whereas the reseller markets
buy goods and services to resell at a profit. Govt. markets are made
up of government agencies that buy goods and services to produce
public services or transfer the goods and service to other who need
them at the end, international markets consist of there buyers in other
countries, including consumers, producers, resellers and government.
Here shamim & Company has the link with the customer and
resellers market from children to people of every age old age use
Pepsi cola products.
Competitor
No single competitor marketing strategy is best for all companies.
Shamim & company consider its own size and industry position and
compares their with its competitor.
Pepsi cola (Shamim & Company) with the dominant positions in can
industry uses those strategies that the smaller firm can not afford.
Publics
Shamim & Company marketing environment also include the various
public. A public is any group that has an actual or potential interest in
or impact on an organizations ability to achieve its objective.
i) Financial publics
ii) Media publics
iii) Govt. publics
iv) Citizen action public
v) Local action public
vi) General action public
vii) Internal action public
Pepsi cola
Shamim & company can prepare marketing plans for there major
publics as well as for its customer markets.
Macro Environment Of Shamim & Company

“The large societal forces that affect the micro environment is called
as macro environment. These forces may by the demographics,
economic, natural, technological, political and cultural forces”.
Demo graphic environment

It is the study of human population in term of size, density, locations,
age, gender, race, occupation and other statistics. The demographic
environment is of major interest to the marketers because it involves
people, and people make up marketers.
Economic environment
Another important factor for shamim & company is economic factor.
The economic environment consist of factors that affect consumer
purchasing power and spending patterns. Same countries have
subsistence economies. In such economy, they consumer most of the
industrial output.
For the containment of its market share, shamim & company also
consider the economic factor.
Pepsi cola
Natural environment
Natural resources that are needed as inputs by marketers or that are
affected by marketing activities. Water is the integral part of its
shamim & company products which the management obtain from the
natural environment.
Technological environment
Technological environment forces that create new technologies
creating new product and market opportunities shamim & company
seek such eppertu8nities to sustain its market leadership and it
always keep an eye on such environmental changes.
Political environment
Lows, government agencies and pressure groups that influence and
limit various organizations and individuals in a give society.
Cultural environment
Cultural change is made up of institutions and other forces that affect
a society basic values, perceptions, preferences and behaviours.
People grow up in a particular society that shape their basic beliefs
and values. They absorb a world view that defines their relationships
with others.
Quality
Pepsi cola
Quality control procedure / system is provided by Pepsi to Shamim &

company which is followed and monitored by Pepsi. After 3 minutes
they check the quality of bottles on each line. Pepsi Cola (shamim &
Co) management said that they have not get the ISO certification
because they do not export their products, even the product has
already built the positive and good image in consumers mind.
Competition
In competition Pepsi cola (shamim & company) is so aggressive.
They want to kill their competitor shamim & company feels that its
competitor is like out.
Pepsi cola
SWOT Analysis
Strength
Pepsi Cola consider that its brand is its strength, according to it, its
brand is like iron. Another strength of Pepsi Cola is its best sale’s
team, its best management, best distribution channel and there are
140 distributors in each and every outlet. Pepsi Cola thinks that its
strong market position and product presentation are also in the favour
of its strength.
Opportunity
For Pepsi Cola, there are many opportunities in the market. In
Mexico, the percapita consumption of bottles is 90 per person per
year. If the availability is close to the customer then it indicates its
opportunity and Pepsi Cola company is trying to achieve this
opportunity.
Weakness
Pepsi Cola management thinks that if it fails to achieve this
opportunity then it will show its weakness.
Threat
They have to make the new policies to retain in the market to save
itself from its competitor.
Pepsi cola
THE END

Bsit 4th On Pepsi

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bsit 4th On Pepsi

Uploaded by

Copyright:

Available Formats

Pepsi cola

Pepsi Cola International

Shamim & company

Administration & Personal Department

Sales / Marketing Department

General Manager Operation

In Pakistan, Shamim & Company is among of top three out of eleven,

G.M Sales G.M Operation G.M Financial G.M Fianance

Ways of product according to firm definition

Features / Characteristics Of Tangible Product

Actual product has 5 characteristics.

Example Of Tangible Product

Category Of The Consumer Product

Types Of Shopping Products

1) Attribute based shopping products.

Attribute Based Shopping Products

Price Based Shopping Products

Industrial / Business Products

Fabricating Material And Parts

Element Of Product Mix

New Product Development Strategy

Stages In Product Development

typically has to generate many ideas in order to find a new goods

Marketing Strategy Development

Control Test Marketing

Simulated Test Markets

Product Life Lyele Strategies

Product Mix Strategy

5) Trading up and trading down

Positioning The Product

Positioning In Relation To A Competitor

Positioning In Relation To A Product Or Attribute

Positioning By Price And Quality

Product –Mix Expansion

Product Mix Contraction

Trading Up And Trading Down

manufacturer, dealer and in generic brands as well as the use of

Manufacturer brands (national brands)

But packaging depends upon the product nature as well as structure

Packages of Pepsi Cola

cardboard cartons to save such leakaging, due to this packaging its

Basic Packaging Function

Factors Considered In Packaging Decision

Pepsi Cola use status quo-oriented pricing objective Pepsi Cola

Price stabilization often is the goal in industries where products are

consumers. Channel choice depends on consumers, the company,

In a direct channel the manufacturer performs all functions. An

coupons. For waking their performance effective, the management

The Importance Of Promotion

 It reinforces loyal consumers.

Pepsi Cola applied all these four types of promotion.

consumer, threatening situation & incentives given to encourage

expenses not tied to productivity, and continuing costs even if there

of sales promotion are non more acceptable to firms and consumer

offers as Dubai’s ticket, price discount as in holy Ramzan month, sale

Market segmentation & target market

Levels of market segmentation

them, from seven to eight years, new generation is their target

Pepsi Colas marketers are responsible for identifying the important

Marketing managers make the decisions within the planes made by

Macro Environment Of Shamim & Company

Demo graphic environment

Quality control procedure / system is provided by Pepsi to Shamim &