PEPSI COLAMarketing Research Report6/8/2013

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SUBMITTED BY:

GROUP: C

Areeba Imran L1S12BBAM2018

Imran Khan L1S12BBAM2104

Bilawal Ahmed Saeed L1F11BBAM0033

Hamza Shahid L1S12BBAM2026

Abdullah Tahir L1S12BBAM0047

Syeda Attiya Zehra

Section: A

SUBMITTED TO:

Prof: Shehzad Alam

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Acknowledgement

We are thankful to almighty ALLAH who gave us the ability and the strength for working on this project and gain tremendous knowledge. We would also like to thank our instructor Prof. Shehzad Alam who has been an influential figure for us throughout the project and has helped us with all the problems we encountered.

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Table of Contents

1. Summary 4

2. History 5

3. Pepsi History 6

4. Co. Objectives 7

5. Mission and 6. Vision 8,9

7. Marketing Mix 10

7.1 Product 10

7.2Pricing 10

7.3 Placement 11

7.4 Promotions 11

8. Ramadan Strategy 12

9. Boston Analysis 13

10. Product Life Cycle 14

11. Product Intro 15

11.1 Growth 16

11.2Maturity 16

11.3 Decline 16

12. Swat 17

13 Recommendation 18

14. Conclusion 19

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1. Summary

Our project is based on Pepsi Cola a product of PepsiCo. Our main focus writing this report is the marketing strategy and plans of the company regarding Pepsi Cola. This also includes the product life cycle curve and shows where our product lies according to the Boston consulting group matrix. The SWOT analysis of the company and the recommendations has also been provided.

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1. History

In 1902, Bradham launched the Pepsi-Cola Company in the backroom of his pharmacy and on December 24, 1902 the Pepsi-Cola Company was incorporated in the state of North Carolina. The business began to grow, and on June 16, 1903 “Pepsi-Cola” was officially registered with the U.S. Patent office. At first, he mixed the syrup himself and sold it exclusively through soda

fountain. That first year, Bradham sold 7,968 gallons of syrup, using the theme line “Exhilarating, Invigorating, Aids Digestion.” He also expanded his operation by opening a second Drug Store at the corner of Middle and Broad streets. Caleb soon recognized that a greater opportunity existed to bottle Pepsi so that people could drink it anywhere. In 1905, Bradham began selling Pepsi-

Cola in six ounce bottles and awarded two franchises to Charlotte and Durham, North Carolina. The following year, 15 franchises

were awarded, with another 40 by 1907. In 1910 there were 250 franchises in 24 states and in January of that year the Pepsi Cola

Company held their first Bottler Convention in New Bern.

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52. Pepsi History in Pakistan

1979 Pepsi Cola International offered the Pepsi Franchise to Pakistan Beverage Limited, the Bottlers of Pakola Brands of Beverage in different flavors.

Within 5 years of acquiring the Pepsi Franchise, Pakistan Beverage Limited succeeded in replicating its previous business success in the beverage market by becoming the market leader in soft drinks in Karachi and then later in Hyderabad. The dynamic partnership which was created in 1917 between Pakistan Beverage Limited (PBL) and Pepsi Cola International, indeed, is a force to reckon with in the market which stands true till this day

This great success gradually trickled down to other cities of Pakistan in the south and north, over a period of time, making Pepsi and its brands the most popular drink in the country.

Today, with almost 60acres of accumulative area under manufacturing and warehousing, Pakistan Beverage Limited is one of the most well equipped and well managed Pepsi Cola bottling plant among all Pepsi franchises across the country. Pakistan Beverage Limited currently consists of 5 manufacturing sites which includes the Karachi sites, Yasir Fruit Juice, Hyderabad Plant, Quetta Plant and the Aquafina site.

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3. Company’s Objectives

At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society - delivering what we call Performance with Purpose. Our approach to superior financial performance is straightforward - drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability.

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4. Our Mission

Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce 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.

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5. Our Vision

"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today."

Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

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6. The Marketing Mix

7.1 Product

STBs

7 bottlers across the country

Pakistan bottlers in

Karachi

Raiz bottlers in lahore

Shelf life of product 6 months

7.2 Pricing:

Different focus groups

Different research methods

The pricing is consumer driven

We have a planning team

Our pricing depends on the price of raw

material

We keep distribution margin

We have set a specific profitability margin

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7.3 Promotion:

We have a brand

footprint.

Brand pyramid

Different matters of

insights

Consumer driven

There are two types of promotion strategies

Thematic: by association with big names

E.g. our association with Champions Trophy

Tactical: by keeping in mind different facts and figures

E.g. if there is inflation we change to a particular price pack

Regular TV commercials

For brand building, cars and trucks of company are the main source of

advertisement

AnMs

UTC

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7.4 Placement:

Multiple distributers all over Pakistan

We have different DSRs

Vans

Majorly targeting the youth

7. The marketing strategy during Ramadan: During the month of Ramadan as the sales go down in Pakistan the Pepsi

company has a very affective pricing strategy in which they reduce the price

by 5 rupees and the advertisement is all over the TV and bill boards which

attracts the customers and the sales boost up tremendously.

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8. The Boston Consulting Group Analysis:

According to the Boston consulting group analysis our product Pepsi cola is the cash cow of the company. It is the product all consumers like to have with their food so it is one of the cash cows for PepsiCo.

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9. The product life cycle:

“Stages through which a product passes during its life time are technically termed as the product life cycle.”

10.INTRODUCTION OF PRODUCT This is most risky Critical Tough time Doubtful stages Struggle for market sharing Less profit

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11.1 Growth

Market share increase Less Profit Build relationship with customer Strong hold in Market Production Level increase

11.2 Maturity

At this stage product neither increases nor decreases. Profit is not increasing. Maturity level shows that the product is on its extreme level of its sales. It also called the stable level of production.

11.3 Decline

Declining describes the alarming position of the product characterized by a reduction in sales, market share and profit. Customers start changing their preferences to better substitutes in the market.

11.Pepsi Cola on the Product Life Cycle Curve:

As mentioned on the graph above our product Pepsi cola is in the growth stage on the product life cycle curve, because every year the market share of the product is increasing. When a product is still acquiring market share and has increase in its sales volume every year, then the product is in its growth stage.

12.SWOT |

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13.1 Strengths:

goodwill is the biggest strength Brand range a great brand an eco-friendly company

13.2 Weaknesses:

the taste quality quality difference between the urban and rural

areas the fake bottlers of our product

13.3 Opportunities:

affordability presence of B.brands the people of rural areas like pepsi more than

its competitors because of its sweet taste.

13.4 Threats:

Inflation Price points Presence of B-brands at a certain level set by

the company

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13.Our Recommendations:

PepsiCo being one of the largest company has a competitive edge but it has some demerits also like as we have mentioned that its distribution is not good because of this some fake products are also being sold in the market so they should improve their distribution channel. And they also should also do research on their taste quality especially in urban areas. The customer relationship of PepsiCo also needs some amendments.

14.Conclusion:

PepsiCo is a vast company and is spread all around the world. Pepsi being the major SBU of the company has great importance and is a cash cow for the company. Their marketing strategy for Pepsi is very appreciable. The taglines they use are catchy and catch persons attention at the first glance.

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