marketing plan on pepsico new-mm
TRANSCRIPT
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
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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
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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.
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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.
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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
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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
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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.”
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“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
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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:
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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:
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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
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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.
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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
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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
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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.
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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:
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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.
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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
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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
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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.
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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
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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
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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.
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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
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iv) Email Address [email protected]
EVIDENCES
VISITING CARDS
The visiting cards of the persons relevant to marketing department are attached herewith.
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