marketing plan on pepsico new-mm

MARKETING PLAN PEPSI COLA

ContentsACKNOWLEDGEMENT...........................................................................................................................3

EXECUTIVE SUMMARY...........................................................................................................................3

CHALLENGE............................................................................................................................................3

New product category.......................................................................................................................3

Product line extension.......................................................................................................................3

Incremental Improvement.................................................................................................................3

INTRODUCTION TO THE COMPANY.......................................................................................................3

SIGTUATION ANALYSIS..........................................................................................................................3

COMPANY ANALYSIS..........................................................................................................................3

MISSION STATEMENT....................................................................................................................3

VISION STATEMENT.......................................................................................................................3

MARKET SHARE..............................................................................................................................3

CUSTOMER ANALYSIS........................................................................................................................3

CUSTOMERS:.................................................................................................................................3

CONSUMER DECISION PROCESS:...................................................................................................3

COMPETITORS...................................................................................................................................3

COLLABORATORS...............................................................................................................................3

CLIMATE:...........................................................................................................................................3

ECONOMIC EFFECT ANALYSIS........................................................................................................3

POLITICAL EFFECT ANALYSIS..........................................................................................................3

TECHNOLOGICAL FACTORS:...........................................................................................................3

SOCIAL AND CULTURAL ANALYSIS.................................................................................................3

SWOT ANALYSIS OF PEPSI..................................................................................................................3

STRENGTHS....................................................................................................................................3

WEAKNESSES.................................................................................................................................3

OPPORTUNITIES.............................................................................................................................3

THREATS........................................................................................................................................3

MARKET SEGMENTATION......................................................................................................................3

BEHAVIORAL BASE.............................................................................................................................3

CONGNITIVE BASE.............................................................................................................................3

SELECTED MARKET STRATEGY...............................................................................................................3

PRODUCT...........................................................................................................................................3

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY


BRANDING:....................................................................................................................................3

LOGO.............................................................................................................................................3

PEPSI SLOGAN................................................................................................................................3

PRODUCT LINE...............................................................................................................................3

PACKAGING...................................................................................................................................3

PRICE.................................................................................................................................................3

PRICES OF DIFFERENT BOTTLES.....................................................................................................3

DISCOUNTS....................................................................................................................................3

PLACEMENT/DISTRIBUTION CHANNEL..............................................................................................3

INDIRECT DISTRIBUTION................................................................................................................3

DIRECT DISTRIBUTION...................................................................................................................3

PROMOTIONS....................................................................................................................................3

CONCLUSION.........................................................................................................................................3

SUGGESTIONS........................................................................................................................................3

BIBLIOGRAPHY.......................................................................................................................................3

REFERENCES..........................................................................................................................................3

EVIDENCES.............................................................................................................................................3

VISITING CARDS.................................................................................................................................3



ACKNOWLEDGEMENT

　

We owe our gratitude to Allah Almighty whose shower of blessings and kindness has been

on us throughout the working on these pages. It is His help that we finally able to compile

this document.

We are indebted to our respected teacher Miss Fiaza Rehman who’s indispensable and

intricate comments on various aspects conjoined with motivation made us come forth

holding such as project.



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 drink industry in Pakistan and

worldwide. The soft drinks set to become world's leading

beverage sector. Global consumption of soft drinks is rising by

5% a year.



CHALLENGE

Pepsi is doing new product development on frequent interval of times. The purpose of which is to refresh the brand. By new products and innovative ideas consumers can easily be attracted.

In following ways Pepsi is doing new product development.

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. Lays, kurkuray and aqua fina, fast food restaurants are the examples of new product category.

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.

However Pepsi launch its several variants with a minor difference on frequent interval of time. There have been many Pepsi variants produced over the years since 1903, including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, Pepsi Ice Cucumber and Pepsi White in Japan.

Line Filling

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. So Pepsi had introduced diet Pepsi to fill the gap in their drinks as of then onwards even diabetic people became their consumers.

Incremental Improvement

Pepsi jumbo is an example of incremental improvement made by Pepsi. It was 2.25 liter 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.

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.

HISTORY OF PEPSI COLA

It was first introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by Caleb

Bradham, who made it at his pharmacy where the drink was sold. It was later named Pepsi

Cola, possibly due to the digestive enzyme pepsin and kola nuts used in the recipe.

Bradham sought to create a fountain drink that was delicious and would aid in digestion and

boost energy.

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented

warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold

in six-ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile race

pioneer Barney Oldfield was the first celebrity to endorse Pepsi-Cola, describing it as "A

bully drink...refreshing, invigorating, a fine bracer before a race". The advertising theme

"Delicious and Healthful" was then used over the next two decades. In 1926, Pepsi received

its first logo redesign since the original design of 1905. In the year 1929, the logo was

changed again.

In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered bankruptcy

- in large part due to financial losses incurred by speculating on wildly fluctuating sugar

prices as a result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi

trademark. Eight years later, the company went bankrupt again. Pepsi's assets were then

purchased by Charles Guth, the President of Loft Inc. Loft was a candy manufacturer with

retail stores that contained soda fountains. He sought to replace Coca-Cola at his stores'

fountains after Coke refused to give him a discount on syrup. Guth then had Loft's chemists

reformulate the Pepsi-Cola syrup formula.

During the Great Depression, Pepsi gained popularity following the introduction in 1936 of a

12-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was slashed

to five cents, sales increased substantially. With a radio advertising campaign featuring the

jingle "Pepsi-Cola hits the spot / Twelve full ounces, that's a lot / Twice as much for a nickel,

too / Pepsi-Cola is the drink for you," arranged in such a way that the jingle never ends.

Pepsi encouraged price-watching consumers to switch, obliquely referring to the Coca-Cola

standard of six ounces per bottle for the price of five cents (a nickel), instead of the 12

ounces Pepsi sold at the same price. Coming at a time of economic crisis, the campaign



succeeded in boosting Pepsi's status. In 1937 500,000,000 bottles of Pepsi were consumed.

From 1936 to 1938, Pepsi-Cola's profits doubled.

Pepsi's success under Guth came while the Loft Candy business was faltering. Since he had

initially used Loft's finances and facilities to establish the new Pepsi success, the near-

bankrupt Loft Company sued Guth for possession of the Pepsi-Cola company. A long legal

battle, Guth v. Loft, then ensued, with the case reaching the Delaware Supreme Court and

ultimately ending in a loss for Guth.

PEPSI COLA PAKISTAN

The market in Pakistan is surely dominated by Pepsi. It has proven itself to be the No.1 soft

drink in Pakistan. Now days Pepsi is recognized as Pakistanis National drink. In 1971, first

plant of Pepsi was constructed in Multan, and from there after Pepsi is going higher and

higher. Pepsi is the choice soft drink of every one. It is consumed by all age groups because

of its distinctive taste. Compared with other Cola in the market, it is a bit sweeter and it

contributes greatly to its liking by all. Consumer’s survey results explain the same outcome

and Pepsi has been declared as the most wanted soft drink of Pakistan.

SITUATION ANALYSIS

COMPANY ANALYSIS

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.”

MARKET SHARE

When Pepsi was introduced in Pakistan, it faced fierce competition with 7up, lemon and lime

drinks, which was established during 1968, in Multan. Pepsi introduced its lemon and lime,

"Teem" to compete with 7up. It successfully, after some years, took over 7up, and this

enhanced Pepsi's profits and market share. In Pakistan, Pepsi with 7up enjoys 70% of the

market share where as the coke just has 20% markets share.

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.”

CUSTOMER ANALYSIS

CUSTOMERS:

There are three types of customers

1. Consumer

2. Business

3. Government

Pepsi main focus is the consumers which are the end users. Pepsi has to make its

marketing strategies keeping in view the consumer buying behavior. To forecast the

behavior of the consumer is a business problem. Physical aspect of the consumer can be

satisfied but it is difficult to satisfy the consumer psychologically. Consumer buying behavior

is affected by certain factors like Cultural factors, 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.

There are different consumers in a society whose behavior is not the same. Every consumer

has a different perception of different products. Some consumers are impressed by one



quality of the product which may be in the view of other consumer not that impressive. 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.

About 75 million cases a year for Pepsi alone; the total beverage market is about 120 million

cases of which 65% per cent are Pepsi products; about 20 to 22 per cent are Coca-Cola

products and Zum Zum cola and Mecca Cola, Amrit Cola and Muslim Cola... there are so

many colas; there is RC and Double Cola which are franchised products. Altogether they

have around 5 per cent of the market. Due to the Afghan and Iraq wars, 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 1.7 % per year

CONSUMER DECISION PROCESS:

Consumer decision process or consumer buying behavior is explained in some steps which

are discussed below:

Need Identification

The consumer is thirsty and he wants to quench his thirst.

Information Search

He will search as to what will satisfy his thirst the most.

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, taste and is pocket friendly.

Selection

After evaluating the product he will select a product.

Purchase

The consumer will buy the selected product.

Post-Purchase Experience:



It is the experience that the consumer gets after using the product. He will use the product

again if he feels that his satisfaction after use is more or equal to the price of the 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, he selects our product

among various substitute products and he feel satisfies so that he retains the use of that

product.

COMPETITORS

Company who directly target your customers.

The marketing concept states that to be successful, a company must provide greater

customer value and satisfaction than its competitors do.

Pepsi has a tough competition with Coca Cola while it faces a little competition with the local

producers like RC Cola, Shandi Cola etc. The local producers hardly affect the sales of

Pepsi in the market.

There are different types of competitor in the market. Some of them in which our product lies

are discussed below:

　 Close Competitor

Pepsi and Coke are close competitors. It means that both have direct competition in the

market, their products are close substitutes for one another. Both the products can influence

the market share of one another through effective strategies made to cope up with their

competitors.

Distant competitors

Pepsi cola and Nestle juice are distant competitors of one another. It means that their

products satisfy the same want but they are in indirect competition with one another.

Strong Vs Weak:



Coca Cola and Pepsi are strong competitors. In Pakistan Pepsi is the market leader and

Coca Cola is its competitor. The Pepsi makes defense strategies so that it can maintain its

position in the market. While Coca Cola is a challenger and it makes attack strategies so that

it can become the market leader.

Pepsi and Shandi Cola are weak competitors. Pepsi is the market leader and Shandi Cola is

the follower. Pepsi is not in direct competition with the Shandi Cola. It means that Shandi

Cola has little effect on the sales of Pepsi.

COLLABORATORS

Pepsi Cola International has given franchises all over Pakistan. These companies have

installed their plants in different parts of Pakistan with these specified areas and names e.g.

City Name of Franchise

Karachi Pakistan Bottlers

Lahore Riaz Bottlers

Faisalabad Punjab Beverage

Multan Shamim & company

Pepsi Cola provides consumers place utility which is, where ever and whenever you want it,

you get it! Pepsi’s channel of distribution is very aggressive according to the consumers,

manufacturers and distributors. Pepsi has 12 different units in different areas of Pakistan,

which make the Pepsi easily available all over the country.

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, Europe, Afghanistan, Middle East and Central Asia. The big advantage for Pepsi in

Pakistan is that it distributes the product through bottlers. So bottlers’ effort also contributes

in the promotion of Pepsi.

CLIMATE:

ECONOMIC EFFECT ANALYSIS

Income and Income per Capita

If the income level or per capita income of the people increases, it will have a positive

effect on the consumption of Pepsi.

Inflation

If the country faces inflationary trend in the market, the price of the Pepsi will ultimately

increase which will lower its demand.

Consumption Behavior

Pakistan is a consumption oriented society. Due to demonstration effect the people are

more inclined towards consumption than saving. So the people of Pakistan spent heavily

on food items. Hence Pepsi has a good market share in the present circumstances.

Income Distribution

It means how much is in the hands of rich and poor class. In Pakistan 10% rich people

posses 93% of wealth and 90% people posses 7% of wealth. If there is balanced

distribution of income in the country, the consumption of the people will increase hence

increasing the sales of beverages as well.

Payment Mod

As the use of plastic money is increasing the consumption pattern of the people are

increasing. Although it will have a low affect on the consumption of Pepsi.

Employment Opportunities

As employment opportunities increase the living standard of the people increase and the

people consume more.



Aggregate Demand

In case of Pepsi, aggregate demand of the product increases in the season of summer

as the hot weather makes the consumers want to drink more.

Aggregate Supply

In summer season to cope up with the increasing demand they have to increase the

aggregate supply of their product.

Economic Policies

Some of the economic policies which can affect the market of Pepsi are discussed below:

Fiscal Policy

It is the policy of taxes. If heavy tax is levied on Pepsi then its price will rise having

negative effect on its consumption.

Monetary Policy

Monetary policy is made to restrict or increase the supply of money in the market. If

policies are made to restrict the flow of money in the market, inflation can be controlled

hence increasing the real income of the people which will ultimately affect the

consumption of Pepsi.

Price Policy

If price of Pepsi is increased its demand will decrease and vice versa.

Income Policy

If income of the people will increase their purchasing power will increase and hence

increasing the market share of Pepsi.

POLITICAL EFFECT ANALYSIS

Political Stability:

Whenever the government is considered to be stable, the business will flourish. If there

is political stability in the country the policies and strategies made by Pepsi can be

consistent to be implemented. 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.

Mixed Economy

In mixed economy government and private sector both plays their role in developing the

economy of the country. Investment by foreign companies like Pepsi is more likely to

flourish in mixed economy.　

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, the strategies

and activities of the company are different.

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. When

technology is advance the supply of the product increase hence the company

experiences growth in their business.

SOCIAL AND CULTURAL ANALYSIS

Psychographic

It is a combination of demographic and psychological factors. Psychological attributes

mean how you perceive things. The company will focus on the behavior of consumers

and make different changes in their product quantity or quality and in promoting their

product so that they can attract the customers. 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.

Religious

Religious factors can influence the market sales of Pepsi as it happened in 2003 when

the U.S-led attack on Iraq, 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. They will try to show their status

by drinking Pepsi which is known to all as a quality drink.

Media

It is a very important factor for marketing. Media these days is a very effective way of

inspiring people to buy a specific product. A good promotion can boast up sales to a

great extent.

SWOT ANALYSIS OF PEPSI

SWOT Analysis, which is based on thorough review of the business (corporation, product

category competition, customers and products), identities and evaluates the internal

strengths and weakness of the companies well as its external threats and opportunities. The

marketing mix is driven by the results of the SWOT analysis.

STRENGTHS

Demand of Pepsi is more than its competitors.

Company has a very established name and a good reputation.

Pepsi has large market share than its competitors.

As the target customers of Pepsi is young generation, so Pepsi has more brand loyal

customers.

Most of the customers are satisfied with the price of the Pepsi.

Pepsi is an international company and it has a very strong position internationally.

The environment of factory is very good and attractive.

Pepsi spends a lot of budget on its advertising.

Pepsi has a very vast distribution channel and it is easily available everywhere.

Employees are also motivated.

Pepsi offers many discount schemes for customers time to time.

Pepsi Cola is sponsoring sports, musical concerts, walks.

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.



WEAKNESSES

Pepsi does not offer any sort of incentive or discount to its retailers.

Pepsi target only young customers in their promotions.

Crown of the disposable bottle is not good.

Demand of disposal bottle is declining.

Pepsi tin pack is not available in far off rural areas.

Pepsi is not considering many potential outlets like hotels, college canteens etc.

OPPORTUNITIES

Company may start entering rural areas also.

The company may also diversify its business in some other potential business.

Increased interest of people in musical groups, cultural shows and sports has provided

an opportunity for Pepsi to increase its sales through them.

THREATS

The main competitor of the company is the Coca Cola.

At the international level, Pepsi has a very strong competition with Coke. Coke has

started its advertisements more effectively to increase their demand and it is a very

strong threat for Pepsi.

Cola drinks are not good for the health so the awareness level of the people is increasing

which is a big threat to the company.

MARKET SEGMENTATION

It means that you divide the target market in to different groups. Market consists of buyers

and buyers differ in one or more ways. They may differ in wants, resources, locations and

buying practices. Through market segmentation companies divide large, heterogeneous

markets into smaller segments that can be reached more efficiently and effectively with

products and services that match their unique needs.

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.

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.

CONGNITIVE BASE

It pushes and pulls the consumer. If the outlook of Pepsi bottle is desirable and it attracts

the consumer, he will buy it even if he isn’t thirsty.

SELECTED MARKET STRATEGY

PRODUCT

The soft drinks market in Pakistan enjoys dynamic growth in both volume and value terms.

Carbonated drinks have become part of the culture in Pakistan and multinational companies

have maintained standards over the years to provide the nation with high-quality drinks.

Rural areas of Pakistan have driven sales of carbonated drinks to new heights as more than

60 percent of the population resides in rural areas and young consumers are more attracted

to advertising. Pepsi is the most popular and leader brand in the Pakistani market and is

consumed by children and adults alike. Pepsi is a responsible corporate brand of Pakistan

and have contributed a lot to the economy.

In marketing, a product is anything that can be offered to a market that might satisfy a want

or need. Until unless the product of the company is not strong in the market it cannot survive

in the longer run.

Pepsi has a product line comprised up of carbohydrate drinks, Lays and many other

products in Pakistan. Pepsi’s product line satisfies consumer needs because Pepsi produces

different types of soft drinks for different consumers.

The most popular product of Pepsi is Pepsi Cola. Due to its good taste Pepsi is a well-known

product. Thus Pepsi Cola satisfies the consumer’s needs efficiently by launching a desired

product.



BRANDING:

Consumer view a brand name as an important part of the product and branding can add

value to the product. A name, term, sign, 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.

LOGO

Logo is what establishes a brand name in the consumer mind. It is the brands identify,

signature, 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.

Pepsi kept on changing its logo from time to time

along with the trade marks.

Evolution of Pepsi logo

　

PEPSI SLOGAN



1909-1939: Delicious and Healthful

1939-1950: Twice As Much For A Nickel Too

1950-1963: The Light Refreshment

1953-1961: Be Sociable

1961-1963: Now It's Pepsi For Those Who Think Young

1963-1967: Come Alive! You're In The Pepsi Generation

1967-1969: Taste That Beats The Others Cold

1969-1973: You've Got A Lot To Live, Pepsi's Got A Lot To Give

1973-1975: Join The Pepsi People Feelin' Free

1975-1978: Have A Pepsi Day

1978-1981: Catch That Pepsi Spirit

1981-1982: Pepsi's Got Your Taste For Life!

1983-1983: Pepsi Now!

1984-now : Pepsi, The Choice Of A New Generation

2000 : The choice of a new generation.

2003 : Zinda Dilon Ki Pehchan.

2006 : Generation next.

PRODUCT LINE

SODA WATER CHIPS JUICES

Pepsi cola Aquafina Lays Tropicana

Teem Kurkure

Mirinda

7up

Dew

Pepsi twist



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 cellophane, 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.

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.

The variants that are offered by Pepsi in terms of size and quantity,

1. 175 ml Mini Bottle(not available now)

2. 250 ml Regular Bottle

3. 300 ml Tin

4. 1000 ml Regular Liter Bottle

5. 1500 ml Disposable Bottle

PRICE

The amounts of money charged for a product or service, or sum of the values that

consumers exchange for the benefits of having or using the product or services. 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.

Following factors Pepsi kept in mind while determining the pricing strategy.



Price should be set according to the product demand of public.

Price should be that which gives the company maximum revenue.

Price should not be too low or too high than the price competitor is charging

from their customers otherwise nobody will buy your product.

Price must be keeping the view of your target market.

The price of Pepsi Cola, despite being market leader is the same as that of its competitor

Coca cola.

Sometimes, 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.

PRICES OF DIFFERENT BOTTLES

Regular bottle e= rupees 12

Non Returnable/disposable= rupees 17

Liter Bottle=rupees 30

1.5 Liter Bottle= rupees 60

2.25 Liter Bottle= rupees 70

DISCOUNTS

Pepsi Cola offers various discounts to those retailers who have the maximum sales of Pepsi

products on daily, monthly and on seasonal basis. Some of the main discounts given to the

retailers are as follows:

Quality Discount

Following are discounts offered by Pepsi.

1/10 Discount

I.e. one case of Pepsi is free on buying 10 cases of Pepsi at one time.

2/20 Discount



I.e. two cases of Pepsi are free on buying 20 cases of Pepsi at one time.

Seasonal Discount

Following are discounts offered by Pepsi.

Pepsi also offers seasonal discounts schemes by reducing price in Ramadan and on Eid.

Pepsi also offers trade in allowance for retailers.

PLACEMENT/DISTRIBUTION CHANNEL

The Pepsi uses the following two channels for the distribution of their products.

INDIRECT DISTRIBUTION

Indirect distribution involves agency holders e.g. Riaz Bottlers Pvt. Ltd. Lahore franchise has

divided its region i.e. Lahore and Kasur districts in two categories.

Local Zone

These are 62 agencies distributing Pepsi Products (250ml Sd) only around Lahore in their

respective allocated sub zones.

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, Team and Marinda.

DIRECT DISTRIBUTION

The factory vehicles operate on 45 direct routes in Lahore selling non-returnable bottles

Litter, Pet and Can.

PROMOTIONS

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. For this reason

they started monitoring the habits of the generation. 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.

The Pepsi cola company has after doing research also has introduced different size of

bottles offered at lower prices so that everyone can afford them. Also Pepsi Company has

introduced other soft drinks including mountain dew, seven up and marinda. Pepsi company

has introduced other flavors such as Pepsi twist, Pepsi max diet Pepsi.

Pepsi Cola Company has also become official sponsors of Pakistan cricket and has

sponsored a number of series.

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. Although many soft drinks like

Pepsi have been introduced such as Amrit Cola, Quibla Cola offered at lower prices but

none of these drinks have been able replace it.

Frequency of the Pepsi ads varies from time to time. When the season is on Pepsi do heavy

advertisement especially in ramzan days or eid occasions but this advertisement not remain

consist. We can hardly see the ads of Pepsi now as there is winter season.

CONCLUSION

Pepsi is a well renowned company and it has maintained its position well by understanding

the client psychology, by ensuring quality, by introducing ingenuity in products, by enlarging

its product base, by keeping economic factors in view and by intense and jazzy

advertisements.

Whenever and where ever there is a spotlight event, Pepsi must figure in, like the one day

international cricket matches between India and Pakistan many other such occasions. The

key word for success in the Marketing World is to “remain in the spotlight” and that is what

Pepsi is doing.



SUGGESTIONS

The marketing world is full of surprises. Who could imagine that Coca Cola would be

overtaken by Pepsi? If Coke could be overrun by Pepsi, it would be no wonder that Pepsi

might be overtaken by some other beverage. The need then is to combine quality with

ingenuity. Along with that, the reputation of the company has to be kept robust.

Today we live in a fast moving world where novelty and newness count a lot. One cannot

rest on one’s laurels. Fresh efforts, newness of approach must remain the cardinal principles

of a well orchestrated marketing strategy and the campaign must be relentless. A continuous

bombardment in advertisement would convince the clients that Pepsi is a part of their lives.

In order to live with style, Pepsi ought to be an essential ingredient of one’s life.

The Pepsi is at its maturity stage and the sales of company are not growing very rapidly.

Company is doing a lot of promotional activities to let the product remain in the market. It

holds a large share of the market and whenever the sales state declining, the company can

improve it by different promotional activities.

Marketers of Pepsi can try to improve sales by improving one or more marketing mix

elements. They can cut prices to attract new users and competitor’s customers. They can

also launch a better advertising campaign or use aggressive sales promotion to improve the

sales. Thus, Pepsi is at its maturity stage.

BIBLIOGRAPHY

The following are the reference material where the information is collected.

i) Company website www.pepsico.com

ii) Project Outline

REFERENCES

The person from whom the information is collected.

i) Name Tousif-ur-Rahman Khan

ii) Designation/Position Business Unit Manager

iii) Cell No. 0302-8465226


http://www.pepsico.com/


iv) Email Address [email protected]

EVIDENCES

VISITING CARDS

The visiting cards of the persons relevant to marketing department are attached herewith.


mailto:[email protected]

marketing plan on pepsico new-mm

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