Executive Summary Purpose of this project is to study the strategies which Pepsi is doing in Pakistani market for its

product Pepsi cola. Pepsi International is a world renowned brand. It is a very well organized multinational company, which operates almost all over the world. In Pakistan It also has proved itself to be the No.1 soft drink. Now days Pepsi is recognized as Pakistanis National drink Pepsi's greatest rival is Coca Cola. Coca Cola has an international recognized brand. Coke's basic strength is its brand name. But Pepsi with its aggressive marketing planning and quick diversification in creating and promoting new ideas and product packaging, is successfully maintaining is No.1 position in Pakistan. Pepsi is operating in Pakistan, through its 12 bottlers all over Pakistan. These bottlers are Pepsi's strength. Pepsi has given franchise to these bottlers. Bottlers, produce, distribute and help in promoting the brand. Pepsi also launched its fast food chain KFC i.e. "Kentucky Fried Chicken." We also did analysis of the soft dink industry in Pakistan and world wide. The soft drinks set to become world's leading beverage sector. Global consumption of soft drinks is rising by 5% a year.

Table of Contents Titles Page # 1. Introduction 01 2. Mission and vision statement 01 3. Facts about company 02 4. Pepsi in Pakistan 04 5. Product in spot light 09 6. Market analysis of soft drink 10 7. Pakistani soft drink industry 13 8. Industrial SWOT analysis 14 9. External Environmental factors 16 10. Internal Environmental factors 21 11. Pre-marketing Mix 25 12. Marketing Mix strategies 27

13. Conclusion 39 14. Suggestions 40

INTRODUCTION TO THE COMPANY Pepsi International is a world renowned brand. It is a very well organized multinational company, which operates almost all over the world. They produce, one of best carbonated drinks in the world. Pepsi is a symbol of hygiene, quality and service, all over the world. Pepsi is producing Cola for more than 100 years and it has dominated the world market for a long time. Its head office is in New York.

MISSION STATEMENT "To be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity."

VISION STATEMENT "To be the world's best beverage company". Being the best means providing outstanding quality, service, cleanliness and value, so that their every customer is contented and happy with their products." "To increase the value of their shareholder's investment through sales growth, cost control and wise investment of resources."

FACTS ABOUT THE COMPANY

1. Pepsi is a USA based public company whose stocks are available in New York. 2. Mountain Dew, acquired by Pepsi-Cola in 1964, switches its advertising and package graphics room hillbillies to action-oriented scenes. 3. The third Mountain Dew slogan appeared in 1973 "Put A Little Yahoo in Your Life." 4. PepsiCo acquired Pizza Hut, Inc. Pizza Hut was founded in 1958 by Dan and Frank Carney. 5. Taco Bell is was acquired by Pepsi. Taco Bell was established in the mid 1960s by Glen Bell. 6. PepsiCo purchased Kentucky Fried Chicken, the leader in the quick service chicken market. KFC was founded by Colonel Harland Sanders. Colonel Sanders began franchising the company in 1952. KFC was spun off along with Pizza Hut and Taco Bell businesses as Tricon Global Restaurants, Inc. in 1997. 7. PepsiCo purchases Seven-Up International, the third largest franchise soft drink operation outside the United States

EXECUTIVES Ms.Indra K.Nooyi Chairwoman, Chief Exec. Officer and Pres Mr. Richard Goodman Chief Financial Officer Mr. John Compton Chief Exec. Officer of North America and Member of Liquid Refreshment Beverage Oversight Council Ms. Cynthia M. Trudell Chief Personnel Officer and Sr. VP Mr. Donald M. Kendall Co-Founder

Coke's basic strength is its brand name. is . Pepsi's greatest rival is Coca Cola.com PEPSI PAKISTAN The market in Pakistan is surely dominated by Pepsi. Coca Cola has an international recognized brand. Phone: 914-253-2000 Fax: 914-253-2070 Web Site: http://www. But Pepsi with its aggressive marketing planning and quick diversification in creating and promoting new ideas and product packaging. first plant of Pepsi was constructed in Multan.HEAD OFFICE PepsiCo. Consumer's survey results explain the same outcome and Pepsi has been declared as the most wanted soft drink of Pakistan. NY 10577 United States.1 soft drink in Pakistan. it is a bit sweeter and it contributes greatly to its liking by all. It has proved itself to be the No.Pepsico. It is consumed by all age groups because of its distinctive taste. In 1971. and from thereafter Pepsi is going higher and higher. 700 Anderson Hill Road Purchase. Inc. Compared with other Colas in the market. Pepsi is the most demanded soft drink of every one. Now days Pepsi is recognized as Pakistanis National drink.

Jehangir Tareen. and this enhanced Pepsi's profits and market share. through its 12 bottlers all over Pakistan. Pepsi is operating in Pakistan. Mr. it faced fierce competition with 7up. Akbar Akhtar Khan (Chairman) . For this purpose it has test marketed its mango juice in Karachi for the first time. took over 7up. Bottlers. the company was handed over to a new set of personnel. produce.e." FOUNDERS OF THE COMPANY The company was initially owned by late Nawab Saddiq Hussain Qureshi & family till 1989. In Pakistan. Pepsi has given franchise to these bottlers. EXECUTIVES Board of Directors: Mr. The factory set up was reorganized & reestablished with expansion in various sectors.successfully maintaining is No. Pepsi with 7up enjoys 70% of the market share where as the coke just has 20% markets share. after some years. who formed up his new team. thus. Pepsi introduced its lemon and lime. The Pepsi International franchise declared the management incompetent. "Kentucky Fried Chicken. These bottlers are Pepsi's strength. It successfully. When Pepsi was introduced in Pakistan. distribute and help in promoting the brand. In coming future Pepsi is also planning to enter into the field of fruit drinks. lemon and lime drinks. Pepsi also launched its fast food chain KFC i. Jehangir Tareen is Nephew of General (late) Akhtar AbdurRehman.1 position in Pakistan. "Teem" to compete with 7up. which was established during 1968. The Pepsi International did this by offering it to Mr. in Multan.

Mr. Haroon Akhtar Khan (Chief Executive) Mr.A. Rasheeda Begum Mrs. Saeedullah Khan Paracha Company Secretary Mr. MCB NDFC The Bank of Punjab UBL . Amjad Jhanzeb Khan Bankers Allied Bank of Pakistan Ltd. Gazi Akhtar Khan Mst. Saifullah Khan Paracha Mr. Citibank N. Mudina Akbar Khar Mr.

Mill Kanjawani. Nawa-i-Waqat Building. Lahore. District Faisalabad. Tehsil Samundri. Gulberg II. LHR. Chartered Accountants. 4-Shahrah-e-Fatima Jinnah. Auditor Taseer Hadi Khalid & Co. REGISTERED OFFICE 31 – N. UAN: 111-724-725 . Pakistan. Lane & Mufti.Legal Advisor Cornehus.

MOUNTAIN DEW. (250ml*4 = 1 Liter) .000. FINANCIAL SUMMARY OF THE COMPANY AND PRODUCT In Karachi The Finance Manager was hesitant to supply any of the data as the company is private limited and the competitor Coca Cola is sniffing every inch of information of Pepsi Cola.000 (15 million) crates of all the soft drinks are sold per year all over Karachi. DIET PEPSI. 1 bottle of 1 Liter is taken as 4 bottles of 250ml.VARIOUS PRODUCTS IN PAKISTANI MARKET PEPSI COLA. KURKURE. AQUAFINA. With the help of the dealers and the retailers directly supplied by the Pepsi Cola and some rough figure given by the finance manager we became able to make the product cost of the Pepsi Cola and Estimated Income Statement for the month which comes into market as 9 rupees after going through many hands. LAYS. PEPSI TWIST AND TROPICANA JUICES(introduced in Karachi only). Precisely the exact figures were not given so an estimated income statement and price profit is made under given facts. MIRINDA. 7UP. TEEM. 250ml regular bottle is taken as standard. 15. DIET 7UP.

250.000*24 = 30.000*65% = 19.000.000 bottles sold per month. 30.250.000/12 = 1. PEPSI share is approximately 65%. kurkuray Pepsi twist Pepsi Mountain dew PRODUCT IN SPOTLIGHT: PEPSI .000.500.000. .000 PEPSI Share.000 crates sold per month.15. 1.

74 g Sugar 11.04 g Protein 0 g Caffeine 10 mg Market Analysis of Soft drinks .Type: Pepsi Cola Manufacturer: PepsiCo Country of origin: USA Introduced: 1902 Ingredients: Amount per 100mL Energy 196.5 kJ Fat 0 g Sodium 0.98 mg Carbohydrates 11.

coupled with the scale of carbonates. according to latest data from TGI. some interesting behavioral shifts underlie these figures. the majority of consumers around the world still favor carbonated soft drinks over these alternatives. Now challenging hot drinks to become the largest overall sector. instead choosing 'healthy' products such as fruit juice and bottled water. but many have succeeded at weathering the elements. according to the new 2003 Global Soft Drinks Report from leading drinks consultancy Zenith International. help place soft drinks on track to become the number one beverage sector in 2005. an increase in the number of people choosing diet or low calorie alternatives has contributed to the overall ." commented Zenith Research Director Gary Roethenbaugh. In 11 out of 15 countries analyzed. soft drinks volume is projected to reach 467 billion liters in 2003. well ahead of all other beverage categories. Despite this shift in attitude. The unrelenting advance of bottled water and still drinks. equivalent to 75 liters per person. In many markets.Soft drinks set to become world's leading beverage sector Global consumption of soft drinks is rising by 5% a year. Market share of soft drinks in beverage industry Concern over diet has persuaded many consumers to scale down their consumption of sugary drinks. "Economic and climate variations around the world present complications for all soft drinks companies. Age factor affecting the sales Despite the fact that people in the majority of countries still appear to favor carbonated drinks over the perceived healthy alternatives such as fruit juice and mineral water. it is revealed that consumption of carbonated soft drinks is higher than consumption of fruit juice or bottled mineral water. soft drinks offer a powerful growth proposition. "As a combined category.

Altogether they have around 5 per cent of the market.sustained popularity of fizzy drinks. the total beverage market is about 120 million cases of which 65% per cent are Pepsi products. Pakistani soft drink industry About 75 million cases a year for Pepsi alone. Amrit Cola and Muslim Cola...7 % per year . there is RC and Double Cola which are franchised products. there are so many colas. about 20 to 22 per cent are CocaCola products and Zum Zum cola and Mecca Cola. they did get a little footing especially in the frontier and Islamabad area but still they are not hugely popular Total annual sale of soft drink in Pakistan 120 million cases Pepsi annual sales in Pakistan 75 million Market share of Pepsi 65% Consumption growth 1. Due to the Afghan and Iraq wars.

The government also reduced other applicable taxes to promise more profits not only for soft drinks manufacturers already in the market but also to attract potential soft drinks manufacturers to invest in Pakistan. Tax reductions proved extremely beneficial to the soft drinks market in Pakistan and certainly encouraged and attracted multinational companies to invest in the country's soft drinks industry. The government also decided to tax the beverage industry on capacity of production rather than on actual production and that brave move encouraged soft drinks manufacturers to maximize production and reduce prices . Carbonates have become part of the culture in Pakistan and multinational companies have maintained their standards over the years to provide consumers with high-quality carbonated drinks. especially in rural areas. Both Rooh Afza and Jam-e-Shirin are traditional sandalwood drinks in Pakistan which are highly regarded by consumers. These drinks can be found in every home in Pakistan.Industrial SWOT analysis Strengths: The soft drinks market in Pakistan enjoyed dynamic growth over the review period in both volume and current value terms. Carbonates dominate the market in both the ontrade and off-trade with the lion's share of sales. throughout the summer and are the mainstay of liquid concentrates Opportunities: The government of Pakistan has reduced excise taxes to encourage soft drinks manufacturers and importers. Off-trade sales of carbonates are higher than those of the on-trade but both achieved strong growth over the review period Weaknesses: Liquid concentrates and powder concentrates are both seasonal categories in the market and their sales peak in the summer in Pakistan.

Previously bottled water was targeted only at major cities where consumers are more health-conscious and aware of the difference between bottled water and tap water.Threats: Increasing health and hygiene awareness among Pakistanis has greatly increased sales of fruit/vegetable juice products. Company has a very established name and a good reputation. Both the government and the media have started health awareness campaigns to make Pakistanis realize that consumption of fruit/vegetable juice is as essential as eating food. which is based on thorough review of the business (corporation. SWOT Analysis of PEPSI SWOT Analysis. . Nowadays. customers and products). health and hygiene awareness has also led to increased sales of bottled water in Pakistan. health-conscious rural inhabitants also drink bottled water due to health concerns. STRENGTH Demand of Pepsi is more than its competitors. identities and evaluates the internal strengths and weakness of the companies well as its external threats and opportunities. Pepsi has large market share than its competitors. On the other hand. The marketing mix is driven by the results of the SWOT analysis. product category competition. Fruit/vegetable juices are doing very well in both urban and rural areas.

walks. Pepsi Cola is sponsoring sports. WEAKNESSES Pepsi does not offer any sort of incentive or discount to its retailers.As the target customers of Pepsi is young generation. Pepsi spends a lot of budget on its advertising. musical concerts. Pepsi target only young customers in their promotions. Pepsi has a very vast distribution channel and it is easily available everywhere. so Pepsi has more brand loyal customers. Employees are also motivated. Crown of the disposable bottle is not good. Pepsi is an international company and it has a very strong position internationally. The environment of factory is very good and attractive. . The location of the Pepsi plant is utilized that all major markets of Lahore are within the reach of the Pepsi plant within 30-45 minutes. Most of the customers are satisfied with the price of the Pepsi. Pepsi offers many discount schemes for customers time to time.

Demand of disposal bottle is declining. OPPORTUNITIES Company may start entering rural areas also. Pepsi has a very strong competition with Coke. THREATS The main competitor of the company is the Coca Cola. college canteens etc. Pepsi is not considering many potential outlets like hotels. HOW Internal and External factors affecting the strategies . cultural shows and sports has provided an opportunity for Pepsi to increase its sales through them. At the international level. Increased interest of people in musical groups. Cola drinks are not good for the health so the awareness level of the people is in creasing which is a big threat to the company. The company may also diversify its business in some other potential business. Coke has started its advertisements more effectively to increase their demand and it is a very strong threat for Pepsi. Pepsi tin pack is not available in far off rural areas.

To do this effectively. Some of the external and internal environmental factors that affect the marketing trend of the company are as follows: EXTERNAL ENVIRONMENT The macro environment consists of the larger societal forces that affect the microenvironment. marketers can adapt their strategies to meet new marketplace challenges and opportunities. Every company should know the vital importance of constantly watching and adapting to the changing environment. So their main target is the young generation. By carefully studying the environment. Some of these factors are given below: Demographic Factors: Age The requirements of different age groups are different. As the world is moving fast today. If the percentage of education is high in a country then through advertisements people can be . A company's environment consists of forces outside marketing that affect marketing management's ability to build and maintain successful relationship with the target customers. they can just observe them and make strategies in light of these factors. Pepsi should target that age group that consumes it the most and make promotional strategies according to their behavior. The environment continues to change rapidly.Marketers need to be good at building relationships with customers. others in the company and external links. Education A company has to make promotional strategies keeping in view the customer level. The external factors are not under the control of the marketers. they must understand the major environmental forces that surround all of these relationships. no one can be certain about the future.

Promotion and education has a direct relationship.made well aware of their product and can convey their message easily. Due to demonstration effect the people are more inclined towards consumption than saving. Population Density It means number of people in one square km per area. Inflation If the country faces inflationary trend in the market. ECONOMIC FACTORS: Income and Income per Capita If the income level or per capita income of the people increases. Consumption Behavior Pakistan is a consumption oriented society. Pepsi sales are more in Karachi as compared to the sales in Islamabad. Karachi has the largest population density and Islamabad has less population density in Pakistan. So the people of Pakistan spent heavily . it will have a positive effect on the consumption of Pepsi. In Pakistan 35 % population resides in urban areas and 65% population lives in rural areas. Population Distribution Population distribution means how much [population lives I urban areas and rural areas. Pepsi is focusing on urban areas as people there are more inclined towards such beverage while people in rural areas are more inclined drinking lassi and desi drinks. the price of the Pepsi will ultimately increase which will lower its demand.

Economic Policies Some of the economic policies which can affect the market of Pepsi are discussed below: . the consumption of the people will increase hence increasing the sales of beverages as well. In Pakistan 10% rich people posses 93% of wealth and 90% people posses 7% of wealth. Although it will have a low affect on the consumption of Pepsi. Aggregate Demand In case of Pepsi. Hence Pepsi has a good market share in the present circumstances. aggregate demand of the product increases in the season of summer as the hot weather makes the consumers want to drink more. Payment Mod As the use of plastic money is increasing the consumption pattern of the people are increasing.on food items. Employment Opportunities As employment opportunities increase the living standard of the people increase and the people consume more. If there is balanced distribution of income in the country. Income Distribution It means how much is in the hands of rich and poor class. Aggregate Supply In summer season to cope up with the increasing demand they have to increase the aggregate supply of their product.

In hot areas its demand is more. If policies are made to restrict the flow of money in the market. If heavy tax is levied on Pepsi then its price will rise having negative affect on its consumption. PHYSICAL FACTOR: Region Pakistan is divided into different geographical regions.Fiscal Policy It is the policy of taxes. Price Policy If price of Pepsi is increased its demand will decrease and vice versa. Marketing and sales of Pepsi is different in different geographical regions. Income Policy If income of the people will increase their purchasing power will increase and hence increasing the market share of Pepsi. inflation can be controlled hence increasing the real income of the people which will ultimately affect the consumption of Pepsi. City Size . Monetary Policy Monetary policy is made to restrict or increase the supply of money in the market.

Constant load shedding slows down the process of production which leads to less production and low market share. It is a source of refreshment when a person is thirty due to the hot weather.The cities which are densely populated the consumption of Pepsi is more. Infrastructure Roads are the basic need for transportation of Pepsi from one place to another. If there is political stability in the country the policies and strategies made by Pepsi can be . When technology is advance the supply of the product increase hence the company experiences growth in their business. Electricity is the basic necessity for production of any product. POLITICAL AND LEGAL FACTORS: POLITICAL STABILITY: Whenever the government is considered to be stable. the business will flourish. Climate Pepsi is more suitable for humid or hot weathered countries like Pakistan. Pepsi cannot open factories in every city of Pakistan so it has to transport it to other cities where Pepsi is demanded. TECHNOLOGICAL FACTORS: Research and Development Through research and development quality of the product can be improved or better techniques or machinery can be developed which can increase the production.

Social Responsibility Pepsi's social responsibility is to provide its customers with clean and hygienic product so to do this they have increased the use of disposable bottles. the strategies and activities of the company are different. Laws Formulation Government has given copy rights to Pepsi so that another company cannot sell their product by the name of Pepsi. The countries where laws are formulated.consistent to be implemented. The company will focus on the behavior of consumers . Foreign companies are also keen to invest in those countries which are politically stable where they have no fear of decline in their market share or shut down due to sudden change of government. Psychological attributes mean how you perceive things. Investment by foreign companies like Pepsi is more likely to flourish in mixed economy. SOCIAL AND CULTURAL FACTORS: Psychographic It is a combination of demographic and psychological factors. Mixed Economy In mixed economy government and private sector both plays their role in developing the economy of the country.

INTERNAL ENVIRONMENT CUSTOMERS: There are three types of customers . Religious Religious factors can influence the market sales of Pepsi as it happened in 2003 when the U. They will try to show their status by drinking Pepsi which is known to all as a quality drink. wide sections of society in Pakistan have banned American multinationals Coke and Pepsi Social Status Pepsi is a well renowned brand. People who are brand conscious will not drink beverages of lesser known brands such as Amrat cola.and make different changes in their product quantity or quality and in promoting their product so that they can attract the customers. A good promotion can boast up sales to a great extent. Media these days is a very effective way of inspiring people to buy a specific product. Keeping in view that the behavior of different consumers is not alike they have to make their marketing strategies in accordance with their requirements so that they are convinced to buy the product. Media It is a very important factor for marketing.S-led attack on Iraq.

Business 3. Physical aspect of the consumer can be satisfied but it is difficult to satisfy the consumer psychologically. Every consumer has a different perception of different products. So to deal with different consumers in a society one should know about the consumer buying behavior process which may help in making a true picture of their product in the mind of the consumers. . Consumer 2. Consumer buying behavior is affected by certain factors like Cultural factors. Government Pepsi main focus is the consumers which are the end users. Social factors. Personal factors and Psychological factors. So the producer should keep these factors in Mind while promoting their product so that they can acquire the customer and increase their market share. Some consumers are impressed by one quality of the product which may be in the view of other consumer not that impressive. To forecast the behavior of the consumer is a business problem. CONSUMER BUYING BEHAVIOUR PROCESS: Consumer buying behavior process is explained in some steps which are discussed below: Need Identification The consumer is thirsty and he wants to quench his thirst. There are different consumers in a society whose behavior is not the same.1. Pepsi has to make its marketing strategies keeping in view the consumer buying behavior.

taste and is pocket friendly. SUPPLIER: He is the person who provides raw materials to the producers or sellers. Purchase The consumer will buy the selected product. Suppliers form an important link in the company's overall customer value delivery system. he selects our product among various substitute products and he feel satisfies so that he retains the use of that product. They provide . He will use the product again if he feels that his satisfaction after use is more or equal to the price of the product. Selection After evaluating the product he will select a product. After looking at above mentioned example. we can get an understanding that a product should be so desirable that whenever a person identifies his need. Evaluation of Alternatives He will now evaluate from the wide range of beverages available to him that which one of them is suitable to him in terms of quality. Post-Purchase Experience: It is the experience that the consumer gets after using the product.Information Search He will search as to what will satisfy his thirst the most.

1. Material Pepsi Concentrate Caps & Closures Plastic Bottles Manufacturer/ Supplier(s) PepsiCo Inc.E. Pakistan Bottlers (Pvt) Ltd. 4.A. 2. Shandi Cola etc. Approved by PepsiCo China.e. Dubai. COMPETITOR: He is the person who is selling the same type of product in the market. The marketing concept states that to be successful. a company must provide greater customer value and satisfaction than its competitors do. Rising supply costs may force price increases that can harm the company's sales volume. 3. Marketing managers must watch supply availability i. Pepsi has a tough competition with Coca Cola while it faces a little competition with the local producers like RC Cola. Approved from PepsiCo U. Approved from PepsiCo China. PepsiCo International provides raw materials to Pepsi franchises in Pakistan. Gatron Pakistan Limited Galtron Pakistan Limited Balochistan Glass Mills Approved from Approval at the factory Approved form PepsiCo China. The local producers hardly affect the sales of Pepsi in the market. There are different types of competitor in the market.the resources needed by the company to produce its goods and services. Ireland & PepsiCo Factory in Hattar Estate. No. Some of them in which our product lies are discussed below: . supply shortages or delays. Supplier problems can seriously affect marketing. labor strikes and other events can cost sales in the short run and damage customer satisfaction in the long run. The company should monitor the price trends of their key inputs. Glass Bottles Tariq Glass Limited Carbonated Water 5.

Strong Vs Weak: Coca Cola and Pepsi are strong competitors. PRE-MARKETING MIX . Both the products can influence the market share of one another through effective strategies made to cope up with their competitors. Indirect Distribution Indirect distribution involves agency holders e. The Pepsi makes defense strategies so that it can maintain its position in the market. Out Station Zone 17 dealers have been appointed by the bottlers for far distant places and in out skirts of Lahore and Kasur the dealers involved in direct distribution are only authorized to sell 250 ml (STD) bottle of Pepsi. While Coca Cola is a challenger and it makes attack strategies so that it can become the market leader. If items are not properly placed by the distributor. Pepsi is the market leader and Shandi Cola is the follower. It means that Shandi Cola has little effect on the sales of Pepsi. Pepsi is not in direct competition with the Shandi Cola. It means that their products satisfy the same want but they are in indirect competition with one another. Lahore franchise has divided its region i. it will disperse the market. Local Zone These are 62 agencies distributing Pepsi Products (250ml Sd) only around Lahore in their respective allocated sub zones. Team and Marinda. Direct Distribution The factory vehicles operate on 45 direct routes in Lahore selling non-returnable bottles Litter. CHANNELS OF DISTRIBUTION The Pepsi uses the following two channels for the distribution of their products.e. Riaz Bottlers Pvt. their products are close substitutes for one another.Close Vs Distant Competitor Pepsi and Coke are close competitors. Ltd. Pepsi cola and Nestle juice are distant competitors of one another.g. Lahore and Kasur districts in two categories. DISTRIBUTOR: Distributor maintains the image of the product and the sales in the market. Pepsi and Shandi Cola are weak competitors. It means that both have direct competition in the market. Pet and Can. In Pakistan Pepsi is the market leader and Coca Cola is its competitor.

he will buy it even if he isn't thirsty. Targeting is to focus on the target market to attract the customers. CHARACTERISTICS OF TARGET MARKET The target market should have some following features. Comparable The producer should identify that needs of different customers are different. Cognitive Base It pushes and pulls the consumer. Accessible It means that the target market which is focused should be accessible or easily approachable. Through market segmentation companies divide large. Segmentation is done on basis of the previously mentioned external factors and the following: Behavioral Base It is how people perceive a specific product. in short psychological analysis of a product.SEGMENTATION It means that you divide the target market in to different groups. Pepsi all over the world is recognized as a quality drink and therefore people drink it without any hesitation whenever they are thirsty or otherwise. So marketers of Pepsi have made it a drink for all people and for diabetic people they introduced diet Pepsi. Market consists of buyers and buyers differ in one or more ways. heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs. If the outlook of Pepsi bottle is desirable and it attracts the consumer. Profitable The target market should be profitable for the producer. They may differ in wants. It should have a specific size where strategies can be made and implemented. locations and buying practices. resources. Substantial The target Market should be substantial. . TARGET MARKET The market which is focused by the producer is called the target market. Measurable One should be able to measure the demand in the market.

Pepsi is mostly used by the young generation but it claims that it is moving towards mass marketing. Rural areas of Pakistan have driven sales of carbonated drinks to new . It is the brands identification. Logo is what establishes a brand name in the consumer mind. big or small country. Marketing Mix Strategies PRODUCT The soft drinks market in Pakistan enjoys dynamic growth in both volume and value terms. Some of these strategies which Pepsi follows are discussed below: Mass Marketing Big firms or companies say that everyone is their buyer whether they belong to rural or urban area. signature and image. Carbonated drinks have become part of the culture in Pakistan and multinational companies have maintained standards over the years to provide the nation with highquality drinks. adults and small children etc. quality and taste. To give a true and positive picture of the product is the best positioning. Basis of Differentiation There are many bases on which a product can be differentiated but Pepsi has differentiated its product on the following base: Product Differentiation Pepsi differentiate its product from its competitors on the basis of brand. The company should promote its good points or comparative advantage which it has over its competitors DIFFERENTIATION STRATEGY In order to serve your target market you introduce different things to your product so that your product can be differentiated from other products.MARKETING STRATEGIES There are different marketing strategies which are applied in targeting. POSITIONING STRATEGY It means that you try to give image to your product in the mind of the customers. Image Differentiation Logo is used for image differentiation. rich or poor. Pepsi has kept on changing its logo from time to time.

Due to its good taste Pepsi is a wellknown product. Pepsi Next (available in Japan and South Korea). Pepsi Raw. There have been many Pepsi variants produced over the years since 1903. Pepsi Max. Pepsi X (available in Finland and Brazil). Pepsi Jazz. Pepsi Samba. kurkuray and aqua fina. Pepsi Ice Cucumber and Pepsi White in Japan. Pepsi One. New product development by Pepsi Pepsi is doing new product development on frequent interval of times. Line Filling . The most popular product of Pepsi is Pepsi Cola. Pepsi Blue. Pepsi is a responsible corporate brand of Pakistan and have contributed a lot to the economy. Lays and many other products in Pakistan. However Pepsi launch its several variants with a minor difference on frequent interval of time. fast food restaurants are the examples of new product category. Pepsi Twist. The purpose of which is to refresh the brand. Crystal Pepsi. a product is anything that can be offered to a market that might satisfy a want or need. Pepsi Retro in Mexico. By new products and innovative ideas consumers can easily be attracted. Pepsi's product line satisfies consumer needs because Pepsi produces different types of soft drinks for different consumers. Lays. Pepsi Holiday Spice. In following ways Pepsi is doing new product development. In marketing. Product line extension Mountain dew is the most recent addition in the product line of soft drinks which is very popular especially among the youngsters. Pepsi Gold. Pepsi has a product line comprised up of carbohydrate drinks. New product category Pepsi which is mainly a company of soft drinks After establishing a brand in Pakistan Pepsi came into several new product category. Thus Pepsi Cola satisfies the consumer's needs efficiently by launching a desired product. Pepsi is the most popular and leader brand in the Pakistani market and is consumed by children and adults alike. including Diet Pepsi.heights as more than 60 percent of the population resides in rural areas and young consumers are more attracted to advertising. Until unless the product of the company is not strong in the market it can not survive in the longer run.

It was 2. PRODUCT line SODA Pepsi cola Teem Mirinda 7up Dew Pepsi twist WATER CHIPS JUICES Tropicana Aquafina Lays Kurkure WIDTH Different product line.Pepsi claims that they are doing mass marketing but there was an unfilled gap in the consumers. The diabetic patient can't use the regular Pepsi because of the sugar. Incremental Improvement Pepsi jumbo is an example of incremental improvement made by Pepsi.25 litter bottle introduced few years ago in Pakistan. The purpose of this packing is to offer the Pepsi to a family for one or two time meals. Price of this pack is also kept low so that is can be affordable easily by the consumers. So Pepsi had introduced diet Pepsi to fill the gap in their drinks as of then onwards even diabetic people became their consumers. Soda Diet soda Purified water Chips Juices LENGTH Length includes number of items produced by Pepsi under each appropriate column of .

It is the brands identify. signature. sign. image and more often it is a logo that makes of breaks a product logo plays a very effective role to improve the product or brand. 1500 ml Disposable Bottle BRANDING: Consumer view a brand name as an important part of the product and branding can add value to the product. term. Evolution of Pepsi logo 1909-1939: 1939-1950: 1950-1963: Delicious and Healthful Twice As Much For A Nickel Too The Light Refreshment . symbol or design or a combination of these intended to identify the goods and services of one seller or group of seller and to differentiate them from their competitors. 1. For example in column of soda drink marinda and team etc comes in. 1000 ml Regular Liter Bottle 5. 175 ml Mini Bottle 2. LOGO Logo is what establishes a brand name in the consumer mind. DEPTH The variants that are offered by Pepsi in terms of size and quantity. Pepsi kept on changing its logo from time to time along with the trade marks. 300 ml Tin 4.width. 250 ml Regular Bottle 3. A name.

PRICE The amount of money charged for a product or service. Pepsi places its customers into some psychological pricing strategies by reducing a high priced bottle and consumers think that they save a lot of money from this. Price should be that which gives the company maximum revenue. Prices of different bottles . As price gives us the profit so this P is very important for business price of product should be that which gives maximum benefit to the company and which gives maximum satisfaction to the customer. or sum of the values that consumers exchange for the benefits of having or using the product or services. The price of Pepsi Cola. despite being market leader is the same as that of its competitor Coca cola. Price should be set according to the product demand of public. Price should not be too low or too high than the price competitor is charging from their customers otherwise nobody will buy your product. 2003 Zinda Dilon Ki Pehchan. 2006 Generation next. Some times. The Choice Of A New Generation 2000 The choice of a new generation.1953-1961: 1961-1963: 1963-1967: 1967-1969: 1969-1973: 1973-1975: 1975-1978: 1978-1981: 1981-1982: 1983-1983: 1984-now: Be Sociable Now It's Pepsi For Those Who Think Young Come Alive! You're In The Pepsi Generation Taste That Beats The Others Cold You've Got A Lot To Live. Following factors Pepsi kept in mind while determining the pricing strategy. Pepsi's Got A Lot To Give Join The Pepsi People Feelin' Free Have A Pepsi Day Catch That Pepsi Spirit Pepsi's Got Your Taste For Life! Pepsi Now! Pepsi. Price must be keeping the view of your target market.

5 Liter Bottle= rupees 50 2. Market Penetration Pricing Policy Prices in beverage industry are determined by the consumer. Otherwise. Pepsi will have to make a strong drive to close all illegal manufacturing and packing of cola carbonated drinks which has become common now-a-days and counterfeit cola replacements can be seen in every market PRICING STRATEGIES Competitionbased pricing approach Pepsi has intense competition with the coca cola the largest soft drink company world wide. That is why Pepsi Cola charges the same prices as are being charged by its competitors. It indicates that counterfeit product is getting prevalent in the market. There are more than ten COLAS in the market and the popular acceptance of Pepsi is creating problems in its way of success.25 Liter Bottle= rupees 60 Analysis of the product in Pakistani market According to a survey conducted by brand award association availability has been declared as the second best contributing factor in the success of Pepsi and it simply indicates that effectiveness of its distribution network which ensures its availability in every far off corner of the country. consumers may go for Coca Cola in case of availability of Pepsi at relatively high price. So its pricing cant exceed too much nor decrease to much as compared to the price of coca cola. Quality has been considered as the lowest rated criterion and it is unusual. Promotional Pricing Policy Pepsi has offered promotional prices very frequently. consumers tend to switch towards a low priced product.Regular bottle e= rupees 10 Non Returnable/disposable= rupees 17 Liter Bottle=rupees 30 1. DISCOUNTS . Especially on some occasion Pepsi reduces its rates. In an economy like that of Pakistan. If price of the Pepsi exceed too much from the coke peope will shift to the coca cola and on the other hand if the price of Pepsi decreases people might get the impression that quality of the Pepsi is also low. Pepsi objective is to target every consumer of the country so Pepsi has to set its prices at such a level which no one can offer to its consumers.5 litter bottle. like in Ramazan Pepsi reduces its rate unto 5 rs on 1. Affordability has been rated as the third best option and indicates consumer's sensitivity to prices of daily consumption items.

The third best is awarded with Return Ticket to Middle East.) 3 bottles free on purchasing every case of Teem and Mirinda. Same of the main discounts given to the retailers are as follows: Quality Discount Following are discounts offered by Pepsi.e. one case of Pepsi is free on buying 10 cases of Pepsi at one time. 3-BF discount is given (i. monthly and on seasonal basis. especially in the off-season duration.e.Pepsi Cola offers various discounts to those retailers who have the maximum sales of Pepsi products on daily. 3 B – F Discount I. some special packs like Pakkora Mix. Every single bottle is sold on the cash basis. Pepsi also offers trade in allowance for retailers. These incentives are in the shape of: Deep Freezers Return Tickets Free Transportation Services. Special Offers Pepsi Cola gives special offers to consumers on special occasions like Ramadan and Eid days instead of decreasing the price of the products. PLACEMENT Placement is accomplished through efficient and sufficient channels of distributions. Seasonal Discount Following are discounts offered by Pepsi. These channels constitute systems of economic institutions through which producers . two cases of Pepsi are free on buying 20 cases of Pepsi at one time. 1/10 Discount I. 2/20 Discount I. Credit There is no credit system in the beverage industry. some times.e.e. INCENTIVES Mainly two types of incentives are given by the Pepsi Cola: Incentive to Retailers Pepsi Cola provide various incentives to retailers on the best sales and achieving the predetermined sales targets. or Free Drinks with Liter Bottles are offered. Incentive to Dealers The best dealer of the year is awarded with a brand new Suzuki Pickup. Pepsi also offers seasonal discounts schemes by reducing price in Ramadan and on Eid. Chat Massala. The second best is awarded with Motor Cycle. in order to increase the sale of Mirinda and Teem.

The cities in which the Pepsi units are: Lahore Sukkur Karachi Multan Dera Ghazi Khan Islamabad Faisalabad Quetta Hyderabad Sahiwal Hattar Pepsi is an international brand so it also has other units in other countries of the world like America. Middle East and Central Asia. manufacturers and distributors. Pepsi has 12 different units in different areas of Pakistan.deliver goods and services into the hands of their users. Afghanistan. PRODUCT OUTFLOW Pepsi Cola International has given franchises all over Pakistan. which make the Pepsi easily available all over the country. where ever and when ever you want it. Europe. These companies have installed their plants in different parts of Pakistan with these specified areas and names e. CHANNELS OF DISTRIBUTION Direct Distribution . The big advantage for Pepsi in Pakistan is that it distributes the product through bottlers.g. City Karachi Lahore Name of Franchise Pakistan Bottlers Riaz Bottlers Faisalabad Punjab Beverage Pepsi Cola provides consumers place utility which is. So bottlers' effort also contributes in the promotion of Pepsi. you get it! Pepsi's channel of distribution is very aggressive according to the consumers. There are various channels through which Pepsi distributes its output.

Team and Marinda. Lahore franchise has divided its region i. Local Zone These are 62 agencies distributing Pepsi Products (250ml STD) only around Lahore in their respective allocated sub zones. Direct Distribution The factory vehicles operate on 45 direct routes in Lahore selling non-returnable bottles Litter. Ltd. Indirect Distribution Indirect distribution involves agency holders e. 2. SPECIAL POINTS Other than these some special points are also being looked after by direct sales vehicles such hotels restaurants. Riaz Bottlers Pvt. Out Station Zone 17 dealers have been appointed by the bottlers for far distant places and in out skirts of Lahore and Kasur the dealers involved in direct distribution are only authorized to sell 250 ml (STD) bottle of Pepsi.17 Agencies – 62 CHANNELS OF DISTRIBUTION The Pepsi uses the following two channels for the distribution of their products. Pepsi Cola directly distributes the products. At Avari. Pet and Can. Promotional Strategies In Pakistan Pepsi is the most liked soft drink especially by young generation so the Pepsi cola company has devised such marketing strategy which attracted them. village.g. Pearl continental. 1. Lahore and Kasur districts in two categories. big and reputed super stores etc. public parks. For this reason . Seas magnificence etc.e.Indirect Distribution Local Zone Outside Zone Direct Routs – 45 Authorized Dealers .

We can hardly see the ads of Pepsi now as there is winter season. Objective of which is to make a space for new product in the market. . Quibla Cola offered at lower prices but none of these drinks have been able replace it. Objective and task methods When Pepsi introduced any new variant they have advertised it heavily. Pepsi max diet Pepsi. When the season is on Pepsi do heavy advertisement especially in ramzan days or eid occasions but this advertisement not remain consist. Also Pepsi Company has introduced other soft drinks including mountain dew. Also Pepsi has donated a lot to the earth quake victims and has launched a number of prize schemes to attract new customers As a result of this marketing strategy Pepsi has become the largest seller of soft drinks in Pakistan and is slowly forming a monopoly in drinks market. What they saw was that the students were crazy about cricket and usually liked to idealize them so in order to increase their sales the Pepsi cola company paid high amounts of money to the cricketers to act as their spokes men. Some of the most famous cricketers in the modern era have acted as spoke persons also film stars have been acting as spoke persons. seven up and marinda. The Pepsi cola company has after doing research also has introduced different size of bottles offered at lower prices so that every one can afford them. Following are the strategies: Comparative Parity Method: As we have already discussed Pepsi pricing strategy is determined y consideration the strategy of coca cola so in this case also Pepsi ads are telecasted with the competition in coca cola which is its direct competitor. Pepsi Cola Company has also become official sponsors of Pakistan cricket and has sponsored a number of series. Seasonal advertisement: Frequency of the Pepsi ads varies from time to time. Although many soft drinks like Pepsi have been introduced such as Amrit Cola. Pepsi company has introduced other flavors such as Pepsi twist.they started monitoring the habits of the generation. We have seen the heavy advertisement of Pepsi max in previous days.

the company can improve it by different promotional activities. The Pepsi is at its maturity stage and the sales of company are not growing very rapidly.CONCLUSION Pepsi is a well renowned company and it has maintained its position well by understanding the client psychology. by enlarging its product base. The key word for success in the Marketing World is to "remain in the spotlight" and that is what Pepsi is doing. like the one day international cricket matches between India and Pakistan many other such occasions. A continuous bombardment in advertisement would convince the clients that Pepsi is a part of their lives. Pepsi ought to be an essential ingredient of one's life. Thus. The need then is to combine quality with ingenuity. Whenever and where ever there is a spotlight event. by introducing ingenuity in products. by ensuring quality. Marketers of Pepsi can try to improve sales by improving one or more marketing mix elements. Pepsi is at its maturity stage. Company is doing a lot of promotional activities to let the product remain in the market. Fresh efforts. Who could imagine that Coca Cola would be overtaken by Pepsi? If Coke could be overrun by Pepsi. Today we live in a fast moving world where novelty and newness count a lot. the reputation of the company has to be kept robust. newness of approach must remain the cardinal principles of a well orchestrated marketing strategy and the campaign must be relentless. Pepsi must figure in. One cannot rest on one's laurels. It holds a large share of the market and whenever the sales state declining. it would be no wonder that Pepsi might be overtaken by some other beverage. Along with that. . by keeping economic factors in view and by intense and jazzy advertisements. They can also launch a better advertising campaign or use aggressive sales promotion to improve the sales. In order to live with style. SUGGESTIONS The marketing world is full of surprises. They can cut prices to attract new users and competitor's customers.