Download - 77626001 Pepsi Cola Pakistan
![Page 1: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/1.jpg)
CASE 3
PEPSI COLA PAKISTAN PREPARED BY: Pankaj Jain (05) Jigar Patel (16) Mitul Patel (17) Jignesh Soni (22)
![Page 2: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/2.jpg)
PEPSICO INC.
• In 1990150 countriesSoft Drinks : Pepsi Cola Company : Pepsi Cola InternationalSnack Foods : Frito Lay Inc. : PepsiCo Foods International
![Page 3: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/3.jpg)
Restaurants : Pizza Hut : Taco Bell : KFC
![Page 4: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/4.jpg)
COMPETITIVE ANALYSIS
• In 1990, Soft Drink Market Share
![Page 5: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/5.jpg)
![Page 6: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/6.jpg)
![Page 7: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/7.jpg)
• Coca-Cola focused solely on beverages• PepsiCo had diversified from the
soft drink business into other food-related lines• A very high-stakes struggle for
brand loyalty
![Page 8: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/8.jpg)
PEPSI COLA PAKISTAN INC.(PCI)
• Divided into 5 functional departments:
FranchisingMarketingSoliciting companies (bottlers)Sales & operationsFinance
![Page 9: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/9.jpg)
MARKET & PRODUCTS• Soft drink business divided into 3 main areas Concentrate producer – PepsiCo, Coca-Cola Bottlers Retailers
• Stages in marketing of carbonated drinksPCI manufacture concentrateBottlers add carbonated water & sweetener and
then sold product through retail stores
![Page 10: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/10.jpg)
• In 1991, the per capita consumption of soft drinks in Pakistan was 12 eight-ounce bottles/year – Lowest in the world
Reason: 250 ml bottle price was PKR 4 1 liter bottle price was PKR 12 Average disposable personal income was
PKR 682 Average per year spending for soft drinks =12*225
ml (1 eight-ounce bottle=225ml bottle)*12/1000
= PKR 32.4 Disposable personal income was low
![Page 11: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/11.jpg)
• PCI’s line of products in Pakistan prior to 7-Up acquisition:
Pepsi Cola(cola)Mirinda (orange)Teem (lemon-lime)
• Coca-Cola’s line of products in Pakistan:Coca-Cola (cola)Fanta (orange)Sprite (lemon-lime)
![Page 12: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/12.jpg)
• Market segments: On-premise Restaurants, Cinemas, Snack bars, Parks, Airlines Accounted for 85% of total Pakistani soft drinks market Take-home Accounted for 15% of total Pakistani soft drinks market
![Page 13: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/13.jpg)
DISTRIBUTION
• 54000 small retail outlets sold soft drinks
• Key Factors Soft drinks were highly substitutable Maintaining cold chain is important
PCI branded refrigerators was one way to
maintain cold chain & it encouraged retail
outlet loyalty
![Page 14: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/14.jpg)
ADVERTISING & PROMOTION
• Advertising – (Theme) For long term brand building
• Promotion – (Scheme) mechanisms for acquiring consumers
• PCI allocated 15% budget for Advertising & Promotion, out of this 60% for Advertising & 40% for Promotion
• Objectives: To achieve volume growth & provide support to its brands
![Page 15: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/15.jpg)
Trade promotion: point-of-purchase displays, incentives to sales force, local events, social work, government campaign-related programsConsumer promotion: price-off discounts, free items with purchase of products, collecting bottle caps to win
![Page 16: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/16.jpg)
![Page 17: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/17.jpg)
BOTTLERS
• Pepsi Cola to expand distribution with low investment began using Franchise System
• Franchise systems main components: Bottlers get exclusive rights to produce,
bottle, price, & sell the product in a
designated area. 10 years tenure with option to renew for
a period of 5 year
![Page 18: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/18.jpg)
Bottlers could distribute other beverages that didn’t compete with pepsi products
Bottlers didn’t have to carry secondary products of producer
![Page 19: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/19.jpg)
Mustafa’s top 3 priorities
• Acquiring 7-Up bottlers
7-Up bottlers feared that their brand could be overshadowed and neglected by Pepsi
• Cloudy Teem
Objective was to move clear Teem consumers to 7-Up or Cloudy Teem
![Page 20: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/20.jpg)
• Brand Portfolio & Marketing PlanPepsi’s advertising & promotion budget
focused on maintaining market share 7-Up’s advertising & promotion budget
focused on building market share Mirinda’s advertising & promotion budget
focused on hold share strategy.
![Page 21: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/21.jpg)
Thematic AdvertisingExpenditures
(Rs in 000)
![Page 22: 77626001 Pepsi Cola Pakistan](https://reader036.vdocument.in/reader036/viewer/2022062308/55cf8ee8550346703b96e3ad/html5/thumbnails/22.jpg)
Promotional AdvertisingExpenditure(Rs in 000)