Introcution & Historical Background

7/18/2019 pakola report 2013
INTROCUTION & HISTORICAL BACKGROUND
Pakola is a line of fruit flavored soft drinks, originally introduced in Pakistan in

1950 by Haji Ali Muhammad. It is produced by Mehran Bottlers (Pvt) Ltd. It is the
first nationally branded soft drink of Pakistan. Hence its name Pakola meaning
'Cola of Pakistan.'
The original green color Pakola ice cream soda is still popular in Pakistan.
However, other Pakola flavours, like Pakola Lychee, have gained popularity.
Another famous type of Pakola is Pakola Orange, which is an orange soda with an
ice cream taste.
It is also available in most Asian shops in the U.K. The drink itself is a very bright
green color, much like the can, and tastes unlike most North American soft drinks.
It has a distinctive and strong taste.
Pakola have also launched their milk. Pakola brand name is owned by Teli Family
and currently Zeeshan Habib is the owner of Pakola carbonated drinks and Yasin
Teli, is the owner of Pakola flavoured milk. Yasin Teli is also the bottler for Pepsi
Co for Sindh and Balochistan province.
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CORPORATE PROFILE
Pakola is one of the most popular brands in Pakistan. The brand was created on 14th August,
1950. As per our slogan, “DIL BOLA …. Pakola”, we believe that Pakola is the heart beat of the
nation and with its amazing taste holds the potential to ride the taste buds of the consumers at
home and abroad. Although the green drink “Pakola Ice Cream Soda” is anonyms with the name
Pakola, but that‟s not all, Pakola gives sensation by bottling other fruity flavors namely Pakola
Orange, Pakola Lychee, Pakola Raspberry, Pakola Fresh Lime and Pakola Vino.
Our Quality Food Safety and Environment Standards

Mehran bottler is the 1st bottling plant is South Asia. Which has been certified to integrated
management system based on (ISO 9001: 2000), (ISO 14001: 1996) and (RVA HACCP)
standard. Our quality and food safety system follows the FDA GMP requirements and codex.
Our products are manufactured under strict CGMP and Hygiene controls.
Our Technical Team

Mehran bottlers has well experienced people in technical side. There experiences and on going
trainings make them more confident and prepare to face all challenges.
Painting the Globe Green

Pakola is Pakistan's national drink but its might is spread all over globe. It‟s the only Pakistani
soft drink which is available in America, Africa, Australia, Afghanistan, Canada, Middle East,
New Zealand and The United Kingdom.
Production
Mehran bottlers operate one of the most modern can filling plant in Pakistan with a filling
capacity of 200 cans per minute. The plant is fully computerized and conforms to the highest
international quality standards. Apart from the above, Mehran Bottlers also operate a bottle
filling plant with a capacity of 240 bottles per minute. The plant can fill both glass and pet
bottles of various sizes.
Distribution
Pakola is distributed nation wide through our network of vehicles and distributors. The company
maintains a fleet of trucks for operations in the Karachi base market.
Human Resource
The company employees 300 personnel at its Karachi plant. Constant efforts are initiated by the
management to train and upgrade the employees and to provide better training and working
environment.
Products of the Company
Carbonated Soft Drink Mineral Water Flavored Milk Based

Beverage
 Pakola Ice Cream-Soda  Vital  Pakola Milk

 Pakola Orange  Ice-Cream-Soda
 Pakola Lychee  Pina Colada
 Pakola Raspberry  Mango
 Pakola Guava*  Rose
 Apple Sidra
 Bubble Up
 Double Cola
 Diet Bubble Up
Analysis of Vision and Mission Statement of the Company
Vision (Actual) “ Pakola has and will fulfill its promise to provide international
quality beverages made with the finest ingredients to its consumers and come up to their
expectations at all costs”.
“ The company mission is to provide its consumer all over the

Mission (Actual)
globe with premium quality beverages with a vast variety that guarantees consumer satisfaction
an also provide opportunities for growth to its employees and the communities in which they
operate”.
ANALYSIS OF MISSION
Component of mission Description Addressed or not?

statement
Customers Who are the firm’s customers? yes
Products or services What are the firm’s major products? yes
Markets Geographically, where does the firm no

compete?
Technology Is the firm technologically current? no
Concern for survival, growth, Is the firm committed to growth and yes
and profitability financial soundness?
Philosophy What are the basic beliefs, values, no

aspirations, and ethical priorities of the
firm?
Self-concept What is the firm’s distinctive competence no
or major competitive advantage?
Concern for public image Is the firm responsive to social, community, yes
and environmental concerns?
Concern for employees Are employees a valuable asset of the firm? yes
VISION STATEMENT (PROPOSED)
It is our vision to be the best and leading provider of food and beverage products in Pakistan, and
among the top ten food and beverage companies in the world, by continually challenging present
conventions and always staying a step ahead of the competition.
MISSION STATEMENT (PROPOSED)
It is Mehran Bottlers‟1 mission to be the number one food and Beverage Company in Pakistan
by providing our customers with the highest product quality in terms of taste, experience, and
satisfaction. We will ensure this through an unwavering dedication to the continuous
development of our products and processes ensuring that we remain best in class. We will strive
to hire the most competent and dedicated employees whose work ethic will set the standard in
the industry. We will be paymasters, as we strongly believe that human resource is the only asset
that truly appreciates over time. We will also be a responsible social corporate citizen, and strive
to enhance the quality of life in the markets we serve.
External Factor Evaluation Matrix
Pakola received a score of 1.94 in the external factor evaluation. This means that they are not
currently well equipped to take advantage of opportunities in the external environment, nor
defend against potential threats.
Of the key external factors, the opportunity of health conscious trend in lifestyles got the highest
rating because this has become a huge market which most major players in the industry are
already tapping into with their diet products. Apart from Diet Bubble-up, Pakola is not catering
to this potential gold mine of a market.
Engro‟s entry into the food and beverage market with Olper‟s milk has presented Pakola with a
competitive challenge. Launched a little after Pakola launched its line of milk products, Olper‟s
had the backing of a massive marketing and advertising campaign that clearly communicated
their position and proposition to consumers. Pakola‟s weak branding choices regarding its milk
products reflect this ineffectiveness in communicating to end-users. The company stretched its
Pakola brand name to its UHT milk as well as to its flavored milks, when the name stood mainly
for their ice-cream soda cola drink in the minds of consumers. Therefore, by stretching the brand
name to milk, they create a mental conflict in users, between fizzy carbonated colas, and pure
clean milk. This mistake coupled with ineffective marketing has put Pakola in this situation.
Competitive Profile Matrix
Pakola received a score of 1.95 in the competitive profile matrix. This low figure is
representative of Pakolas‟ inability to leverage its competitive advantage of unique tasting
flavors successfully. This inability stems from the company‟s lack of effective communication of
their offering and its uniqueness. This is one of the major mistakes companies make when
following a differentiation strategy, they assume that consumers will recognize the difference
that they offer. This is exactly the mistake that Pakola has made.
The areas where Pakola has taken a beating are in market share and distribution. From a strategic
viewpoint however, distribution is the area which Pakola should target in the short run if they
hope to achieve any type of success. Advertising programs that are basically demand-building
exercises are useless if the product has little market reach and is not meeting the created demand.
Therefore, before concentrating on marketing activities in the hopes of increasing market share,
Pakola needs to strategically outsource their distribution setup to a distribution company such as
Muller and Phipps, with the expertise in how to effectively increase a company‟s reach into the
market. In due time the company should build up its own sales teams so as to make distribution a
core competency of theirs. Yet they should trust an established distribution company in the short-
run to improve its product availability.
Internal Factor Evaluation Matrix
Pakola received a total score of 1.86 in the internal evaluation. This signifies that the company
has a weak internal system and is not able to effectively manage any of their strengths in a
meaningful manner. Also of their weaknesses, it is worthy to note that their weak distribution
setup had the most weightage.
Therefore, from our internal factor analysis we can form two possible strategies. One is the
formation of a structured and competent distribution network through the enabling of sales force
teams.
SWOT Matrix
Of the several strategies detailed above, we will now focus our discussions towards two of the
main strategies that should be undertaken in the near future;
1. Hire Muller and Phipps to handle distribution concerns
2. Introduce diet versions of current products
By allowing an experienced distribution expert like Muller and Phipps to handle its distribution,
Pakola can instead focus its short-term resources towards the structuring of its organizational
setup.
The issues with Payolas‟ management setup are the root cause of its lackluster strategic business
performance, and must be addressed before the company can expect extended success and
profits.
The second strategy that they can enforce is the introduction of diet versions of their current
product portfolio. By tapping into this market they would be able to hit two birds with one stone.
They would be targeting those consumers whose lifestyles revolve around healthiness, and also
they would be targeting adults who wish not to drink extremely sweet sugary drinks.
SPACE MATRIX
FINANCIAL STRENGTHS (FS) ENVIRONMENTAL STABILITY (ES)
Return on Asset (ROA) 2 Rate of Inflation -3

Leverage 3 Technological Changes -1
Net Income 2 Price Elasticity of Demand -2
Net Asset 3 Competitive Pressure -4
Return on Equity 1 Barrier to entry into the Market -2
Financial Strengths (FS) 2.2 Environmental Stability (ES) -2.4
COMPETITIVE ADVANTAGE (CA) INDUSTRY STRENGTH (IS)
Market Share -2 Growth Potential 5
Product Quality -1 Financial Stability 4
Customer Loyalty -2 Ease of entry into the market 6
Technological know-how -1 Resources Utilization 4
Control over supplier & Distributors -2 Profit Potential 6
Competitive Advantage (CA) -1.6 Industry Strength (IS) 5
Financial strength = +2.2

Environmental stability = -2.4
Competitive advantage = -1.6

Industry strength = +5.0
Y-axis: 2.2 + (-2.4) = -0.2

X axis: 5.0 + (-1.6) = 3.4

SPACE MATRIX FOR PAKOLA
Pakola is positioned towards a competitive approach due to its unique competitive advantage and
the strength of the industry it is operating in.
BCG Matrix
Pakola bubble up
Pakola orange
Blue Ocean Strategy
CONCLUSION
1. Induct a creditable and capable Human Resource Function, capable of

2. Inducting a highly innovative and talented Marketing Department (which
currently does not exist in the organization)
This Marketing Department will:
• Carry out extensive, accurate and decisive market research laying strategic
importance to market intelligence, consumer insight and modern techniques of
marketing based on scientific research, and putting these to strategic use through
effective communication of these decisive elements with the strategic level
management.
• Exert itself to marketing the product to the already brand loyal consumers in
order to consolidate (and in the process also reacquire any of it‟s lost market share)
them while also targeting newer potentially loyal markets in it‟s attempt to gain
market share, but this targeting of the newer markets will only happen once the
„Critical Distribution Issue has been resolved‟ (which is one of the key reasons
why Pakola continues to remain stagnant or reclining when it comes to market
share)
• Outsource its Distribution function to Muller and Phipps, the best in distribution
in Pakistan, temporarily, to make it‟s over -hauling easier to bring about and at the
same time

Introcution & Historical Background

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7/18/2019 pakola report 2013

INTROCUTION & HISTORICAL BACKGROUND

Pakola is a line of fruit flavored soft drinks, originally introduced in Pakistan in

Our Quality Food Safety and Environment Standards

Our Technical Team

Painting the Globe Green

Products of the Company

Carbonated Soft Drink Mineral Water Flavored Milk Based

 Pakola Ice Cream-Soda  Vital  Pakola Milk

Analysis of Vision and Mission Statement of the Company

“ The company mission is to provide its consumer all over the

Component of mission Description Addressed or not?

Markets Geographically, where does the firm no

Philosophy What are the basic beliefs, values, no

VISION STATEMENT (PROPOSED)

MISSION STATEMENT (PROPOSED)

External Factor Evaluation Matrix

Competitive Profile Matrix

Internal Factor Evaluation Matrix

1. Hire Muller and Phipps to handle distribution concerns

2. Introduce diet versions of current products

FINANCIAL STRENGTHS (FS) ENVIRONMENTAL STABILITY (ES)

Return on Asset (ROA) 2 Rate of Inflation -3

Net Income 2 Price Elasticity of Demand -2

Net Asset 3 Competitive Pressure -4

Return on Equity 1 Barrier to entry into the Market -2

Financial Strengths (FS) 2.2 Environmental Stability (ES) -2.4

COMPETITIVE ADVANTAGE (CA) INDUSTRY STRENGTH (IS)

Market Share -2 Growth Potential 5

Product Quality -1 Financial Stability 4

Customer Loyalty -2 Ease of entry into the market 6

Technological know-how -1 Resources Utilization 4

Control over supplier & Distributors -2 Profit Potential 6

Competitive Advantage (CA) -1.6 Industry Strength (IS) 5

Financial strength = +2.2

Competitive advantage = -1.6

Y-axis: 2.2 + (-2.4) = -0.2

Blue Ocean Strategy

1. Induct a creditable and capable Human Resource Function, capable of

This Marketing Department will:

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