sm 2nd assignment

8/3/2019 SM 2nd Assignment

1/21

2ND ASSIGNMENT 3RD SEMESTERMBA (HRM)

ALLAMA IQBAL OPEN UNIVERSITY

ISLAMABAD

ASSIGNMENT NO.2

ON

BUSINESS POLICY AND STRATEGY (887)

Topic:-

Strategy Formulation

Submitted by: ASAD HUSSAIN

Submitted to: SIR M. ZAHID JAMALSB.

Roll No. 508195455.

Mob No. 03335174447.

ASAD HUSSAIN BUSINESS POLICY AND STRATEGY (887)Page 1


2/21


ACKNOWLEDGEMENT

All praises to Almighty Allah, the most Gracious, the most Beneficent and themost Merciful, who enabled me to complete this assignment.

There is always a sense of gratitude one expresses to others for the helpful

and needy service they render during all phases of life. I have completed this

assignment with the help of different personalities. I wish to express my

gratitude towards all of them.

It gives me immense pleasure to express my deep regards and sinceresense of gratitude to Mr. Nabeel Ghazi, Administrator, Pepsi Plant, Lahorefor his support which helped me throughout my assignment.

I would also like to thank my teacher SIR SALEEM JAHANGIR MIRZA for

steering my confidence and capability for giving me insight into assignment

by giving me exposure to the arena of competitive and real world.

Lastly I would like to thank my parents and friends for their constant support

during the duration of my assignment.

Thank You One and All

ASAD HUSSAIN

ROLL NO. 508195455.

MBA (HRM).



3/21


EXECUTIVE SUMMARY

This assignment is a research-oriented activity, which represents both thetheoretical and practical implication of the topic. In the first section of thisassignment, I explain the theoretical aspect of the topic and all major partshas been explained which are involved in the Organizational structure showscommunication flow in the organization presented through communicationmodels to clarify the information path. We are required to study acommunication model for traditional organization in the prospective of totalquality management selected by me in total quality management. Forempirical study, I select Pepsi Cola Company and compare its ways ofOrganizational structure and marketing strategies shows its strategy

formulation according my topic.

CONTENTS:

TITLE PAGE...1



4/21


ACKNOWLEDGEMENT...2

EXECUTIVE SUMMARY..3

CONTENTS....... 4

INTRODUCTION TO THE TOPIC....5

WHAT IS OUR BUSINESS...5

REVIEW OF LETRATURE.6

MISSION STATEMENT .....7

THE PROCESS OF PERFORMING AN EXTERNAL AUDIT...8

DATA COLLECTION --- ECONOMIC FORCES... 10

DATA ANALYSIS....

10

CASE STUDY......

12

MISSION STATEMENT (PEPSI COLA) ..12

VISION STATEMENT (PEPSI COLA)..13

PEPSI IN PAKISTAN...13

INDUSTRIAL SWOT ANALYSIS....14

SWOT ANALYSIS OF PEPSI COLA..15

CONCLUSIONS ...21

RECOMMENDATION / SUGGESTIONS...21

Introduction

What is our Business?



5/21


6/21


Stage 1 of the Formulation of FrameworkIt consists of the EFE Matrix, the IFE Matrix and the competitive profile matrix.Called the input stage, stage 1 summarizes the basic input information

needed to formulate strategies.

Stage 2It is called the Matching Stage, focuses upon generating feasible alternativestrategies by aligning key external and internal factors. Stage 2 techniquesinclude the threats-opportunities-weaknesses-strengths (TOWS) Matrix, theStrategic Position and Action Evaluation (SPACE) Matrix, the Boston ConsultingGroup (BCG) Matrix, the Internal External (IE) Matrix and the Grand StrategyMatrix.

Stage 3It is called the decision stage and involves a single technique, the QuantitativeStrategic Planning Matrix (QSPM). A QSPM uses input information from Stage 1to objectively evaluate feasible alternative strategies identified in Stage 2. AQSPM reveals the relative attractiveness of alternative strategies and thusprovides an objective basis for selecting specific strategies.

The importance of a Clear MissionThe importance of clear mission statement to effective strategic managementis well documented in the literature. A recent study comparing mission

statement of fortune 500 firms performing well and firms performing poorlyconcluded that high performers have more comprehensive missionstatements than low performers. King and Cleland recommend thatorganizations carefully develop a written mission statement for the followingreasons.

Mission StatementOur Vision is our corporate conscience and helps us to eliminate short termthinking, such as cashing in on demand for our motorcycles by giving quantity

precedence over quality or cutting corners recreational or commercial vehiclesto save a few dollars per unit. It also encourages every employee in ourorganization to be acutely aware of his or her role in satisfying ourstakeholders. Reaching the fine balance between specificity and generality isdifficult to achieve, but is well worth the effort. George Steiner offers thefollowing insight on the need for mission statement to be broad in scope:



7/21


The Nature of an External AuditThe purpose of an external audit is to develop a finite list of opportunites thatcould benefit and threats that should be avoided. As the term finite suggests,the external audit is aimed at developing an exhaustive list of every possible

factor that could influence the business. Rather, it is aimed at identifying keyfactor that could influence the business. Rather, it is aimed at identifying keyvariables that offer actionable responses. Firms should be able to respondeither offensively of defensively to the factors by formulating strategies thattake advantage of external opportunities or that minimize the impact ofpotential threats.

Key External ForcesExternal forces can be divided into five broad categories: (1) economic forces.(2) social, cultural, demographic and environmental forces. (3) political,

governmental and legal forces, (4) technological forces and (5) competitiveforces.Changes in external forces translate into changes in consumer demand forboth industrial and consumer products and services. External forces affect thetypes of products developed, the nature of positioning and marketsegmentation strategies, the types of services offered and the choice ofbusinesses to acquire or sell. External forces directly affect both suppliers anddistributors. Identifying and evaluating external opportunities and threatsenables organizations to develop a clear mission, to design strategies toachieve long term objectives and to develop policies to ahieve annual

objectives.Some organizations survive solely because they recognize and takeadvantage of external opportunities.

The increasing complexity of business today is evidenced by more countriesdeveloping the capacity and will to compete aggressively in world markets.Foreign businesses and countries are willing to learn, adapt, innovate andinvent to compete successfully in the marketplace.Most organizations practice some form of external analysis as part of theirplanning process. Nearly 75% of chieve executive officers of the Fortune 500companies report that their firms perform external analysis and achieve

numerous benefits from doing so. 1 another 16% report that they do not haveorganized external analysis but probably should. Only 1% report that theirfirms do not conduct external audits and have no plans to begin.

The process of Performing an External AuditThe process of performing an external audit must involve as many managersand employees as possible.



8/21


To perform an external audit, a company must first gather competitiveintelligence and information about social, cultural, demographic,environmental, economic, political, legal, governmental and technologicaltrends. Individuals can be asked to monitor various sources of information

such as key magazines, trade journals and newspapers. These persons cansubmit periodic scanning reports to a committee fo managers charged withperforming the external audit. This approach provides a continuous stream oftimely strategic information and involves many individuals in the externalaudit process. Online databases provide another source for gathering strategicinformation, as does use of corporate, university and public libraries.Suppliers, distributers, salespersons, customers and competitors representsother sources of vital information.Freund emphasizes that critical success factors hould be (1) important toachieving long terms and annual objective (2) measurable (3) hierarchical in

the sense that some will pertain to the overall company and others will bemore narrowly focused on functional or divisional areas, a final list of the mostimportant critical success factors should be communicated and distributedwidely in the organization. Both opportunities and threats can be criticalsuccess factors.

Information TechnologyIt has become a powerful tool for conducting and external audit. The quantityand quality of industry and competitive information available to organizationshas increased dramatically in recent years. Advanced computer technology,

telecommunications, data access and storage devices, fax machines, onlinedatabases, graphics and software represent efficient and effective vehicles foridentifying and evaluation opportunities and threats. Effective use of theinternet as the information superhighway is becoming more and moreessential for business success.

The World Wide Web (WWW) is a global network available via the internetwhereby an individual or firm can place information or advertisements forconsumption by others around the world or jut within a corporation. Unlikeother cyberspace services, web pages can contain both text and non textitems, including should clips, graphics and even movies. Having a Website in

cyberspace can allow large savings in paper, copying, phone and postage. Thesavings in advertising can be even higher. A web browser such as Netscapecommunications Navigator on the personal computer can allow anyone to lookat what is stored on any web server in the world.Getting on the web is quite simple and inexpensive and can be the differencebetween formulation strategies based on the up-to-date rather than out-of-date, information. Consultants are readily available to provide assistance. If



9/21


you design your web-pages so well that consumer demand increases for yourproduct or service, you may decide to add to your information and / oradvertisements and move them out of your web site and over the internet.Doing this begins to be costly but ht e additional revenue4s may more than

offset the costs.With both private and corporate connections to the web proliferating, firmsmust take for granted that every computer on the planet can reach andinteract with almost any other. Security and privacy are becoming more andmore of a concern. Linking a firms computer to cyberspace opens it topotentially millions of largely unidentified visitors, some of whom may haemalicious, criminal or otherwise unethical intent. Verification that senders orreceivers on the internet are who they say they can be challenge a competitorcould bombard your system with false messages and information. The rangeof products and measure designed to enhance computer security is increasing

daily.Software is now available that can generate a new pass-ward every fewminutes, encrypt all outgoing messages with secret codes or keystrokes oreven block unwanted traffic arriving to your computer from the internet.Given the current rate of development in telecommunications and officetechnology. Video conferences may become a major substitute for somebusiness air travel soon. What impact will IT have on our industry over thenext five to ten years products and services, markets and productioneconomics?

The era of the mainframe computer is giving way to a proliferation of

affordable microcomputers that are almost as powerful. This trend is creatinga new basis for competition in virtually all industries and has generated newbuyers, suppliers, products and services. The microcomputer revolutionespecially represents an opportunity for innovative young companies.Entrenched industrial leaders face more competition than over from smallfirms using advanced microcomputer technology.

Data Collection --- Economic ForcesEconomic factors have a direct impact on the potential attractiveness ofvarious strategies. For example, if interest rates rise, then funds needed for

capital expansion become more costly or unavailable. Also, as interest ratesrise, discretionary income declines and the demand for discretionary goodsfalls. As stock prices increase, the desirability of equity as a source of capitalfor market development increases. Also, as the market rises, consumer andbusiness wealth expands. Trends in the dollars value have significant andunequal effects on companies in different industries and in different locations.For example, the pharmaceutical, tourism, entertainment, motor vehicle,



10/21


aerospace and forest products industirds benefit greatly with the dollars allagainst the yen, franc and mark. Agricultural and petroleum industries arehurt by the dollars rise against the currencies of Maxico, Brazile, Venezueland Australia, social, cultural, demographic and environmental changes have

a major impact upon virtually all products, services, markets and customers.Small, large, fox profit and nonprofit organizations in all industries are beingstaggered and challenged by the opportunities and threats arising fromchanges in social, cultural, demographic and environmental variables. Social,cultural, demographic and environmental trends are shaping the wayAmericans live, work, produce and consume. New trends are creating adifferent type of consumer and consequently, a need for different products.

Data Analysis

The Internal Factor Evaluation (IFE) MatrixThis strategy-formulation tool summarizes and evaluates the major strengthsand weaknesses in the functional areas of a business and it also provides abasis for identifying and evaluating relationships among those areas. Intuitive

judgments are required in developing an IFE Matrix, so the appearance of ascientific approach should not be interpreted to mean this is an all powerfultechnique. A thorough understanding of the factors included is more importantthan the actual numbers.IFE Matrix can be developed in Five Steps:-1. List critical success factors aas identified in the internet audit process. Use

a total of from 10 to 20 internal factors, including both strengths andweaknesses. List strengths first and then weaknesses. Be as specific as

possible, sung percentage, rations and comparative numbers.

2. Assign a weight that ranges from 0.0 (not important) to 1.0 (all important)

to each factor. The weight assigned total given factor indicates the relative

importance of the factor to being successful in the firms industry. Regardless

of whether a key factor is an internal strength or weakness, factors considered

to have the greatest effect on organizational performance should be assigned

the highest weights. The summation of all weights must total 1.0.3. Assign a 1 to 4 rating to each factor to indicate whether that factor

represents a major weakness (rating 1), a minor weakness (rating 2), a minor

strength (rating 3) or a major strength (rating 4). Rating are thus company

based, whereas the weights in step 2 are industry based.



11/21


4. Multiply each factors weight by its rating to determine a weighted score

for each variable

5. Sum the weighted scores for each variable to determine the total

weighted score for organization.

When a key internal factor is both strength and weakness, the factor shouldbe included twice in the IFE Matrix and a weight and rating should be assignedto each statement.

Case Study

Company Description / Introduction

PepsiCo, Inc. is among the most successful consumer products companies inthe world, with 1999 revenues of over $20 billion and 116,000 employees. Thecompany consists of: Frito-Lay Company, the largest manufacturer anddistributor of snack chips; Pepsi-Cola Company, the second largest soft drinkbusiness and Tropicana Products, the largest marketer and producer ofbranded juice. PepsiCo brands are among the best known and most respectedin the world and are available in about 190 countries and territories. Some of

PepsiCo's brand names are 100 years old, but the corporation is relativelyyoung. PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Colaand Frito-Lay. Tropicana was acquired in 1998.PepsiCo's success is the result of superior products, high standards ofperformance, distinctive competitive strategies and the high integrity of theirpeople. Their overriding objective is to increase the value of their

http://images.google.com.pk/imgres?imgurl=http://www.contrib.andrew.cmu.edu/~bmarrero/pepsi.jpg&imgrefurl=http://www.contrib.andrew.cmu.edu/~bmarrero/&usg=__Nu3Ou_L9bGXzr4m0PxVsKPRcjag=&h=660&w=750&sz=216&hl=en&start=3&tbnid=4tA7L3TivrMSrM:&tbnh=124&tbnw=141&prev=/images%3Fq%3DPepsi%26gbv%3D2%26hl%3Den


12/21


shareholders' investment through integrated operating, investing andfinancing activities. Their strategy is to concentrate their resources on growingtheir businesses, both through internal growth and carefully selectedacquisitions. Their strategy is continually fine-tuned to address the

opportunities and risks of the global marketplace. The corporation's successreflects their continuing commitment to growth and a focus on thosebusinesses where they can drive their own growth and create opportunities.

Mission Statement

"To be the world's premier consumer products company focused onconvenient foods and beverages. We seek to produce healthy financialrewards to investors as we provide opportunities for growth and enrichmentto our employees, our business partners and the communities in which weoperate. And in everything we do, we strive for honesty, fairness andintegrity."

Vision Statement

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

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

PEPSI IN PAKISTAN

The market in Pakistan is surely dominated by Pepsi. It has proves itself to bethe No.1 soft drink in Pakistan. Now days Pepsi is recognized as PakistanisNational drink. In 1971, first plant of Pepsi was constructed in Multan, and

from their after Pepsi is going higher and higher. Pepsi is the choice soft drinkof 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 contributesgreatly to its liking by all. Consumers survey results explain the sameoutcome and Pepsi has been declared as the most wanted soft drink ofPakistan.



13/21


Pepsi's greatest rival is Coca Cola. Coca Cola has an international recognizedbrand. Cokes basic strength is its brand name. But Pepsi with its aggressivemarketing planning and quick diversification in creating and promoting newideas and product packaging, is successfully maintaining is No.1 position in

Pakistan. In coming future Pepsi is also planning to enter into the field of fruitdrinks. For this purpose it has test marketed its mango juice in Karachi for thefirst time.

When Pepsi was introduced in Pakistan, it faced fierce competition with 7up,lemon and lime drinks, which was established during 1968, in Multan. Pepsiintroduced its lemon and lime, "Teem" to compete with 7up. It successfully,after some years, took over 7up, and this enhanced Pepsi's profits and marketshare. In Pakistan, Pepsi with 7up enjoys 70% of the market share where asthe coke just has 20% markets share.

Pepsi is operating in Pakistan, through its 12 bottlers all over Pakistan. Thesebottlers are Pepsi's strength. Pepsi has given franchise to these bottlers.Bottlers, produce, distribute and help in promoting the brand. Pepsi alsolaunched its fast food chain KFC i.e. "Kentucky Fried Chicken.

The Data Collection --- Industrial SWOT Analysis

Strengths:

The soft drinks market in Pakistan enjoyed dynamic growth over the reviewperiod in both volume and current value terms. Carbonates dominate themarket in both the on-trade and off-trade with the lion's share of sales.Carbonates have become part of the culture in Pakistan and multinationalcompanies have maintained their standards over the years to provideconsumers with high-quality carbonated drinks. Off-trade sales of carbonatesare higher than those of the on-trade but both achieved strong growth overthe review period

Weaknesses:

Liquid concentrates and powder concentrates are both seasonal categories in

the market and their sales peak in the summer in Pakistan. Both Rooh Afzaand Jam-e-Shirin are traditional sandalwood drinks in Pakistan which arehighly regarded by consumers. These drinks can be found in every home inPakistan, especially in rural areas, throughout the summer and are themainstay of liquid concentrates

Opportunities:



14/21


The government of Pakistan has reduced excise taxes to encourage softdrinks manufacturers and importers. The government also reduced otherapplicable taxes to promise more profits not only for soft drinks manufacturersalready in the market but also to attract potential soft drinks manufacturers to

invest in Pakistan. Tax reductions proved extremely beneficial to the softdrinks market in Pakistan and certainly encouraged and attractedmultinational companies to invest in the country's soft drinks industry. Thegovernment also decided to tax the beverage industry on capacity ofproduction rather than on actual production and that brave move encouragedsoft drinks manufacturers to maximize production and reduce prices

Threats:

Increasing health and hygiene awareness among Pakistanis has greatlyincreased sales of fruit/vegetable juice products. Both the government and themedia have started health awareness campaigns to make Pakistanis realizethat consumption of fruit/vegetable juice is as essential as eating food.Fruit/vegetable juices are doing very well in both urban and rural areas. Onthe other hand, health and hygiene awareness has also led to increased salesof bottled water in Pakistan. Previously bottled water was targeted only atmajor cities where consumers are more health-conscious and aware of thedifference between bottled water and tap water. Nowadays, health-consciousrural inhabitants also drink bottled water due to health concerns.

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 companieswell as its external threats and opportunities. The marketing mix is driven bythe results of the SWOT analysis.

STRENGTH

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 morebrand loyal customers.



15/21


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

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

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 availableeverywhere.

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, collegecanteens etc.

OPPORTUNITIES

Company may start entering rural areas also.

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

Increased interest of people in musical groups, cultural shows and sportshas provided an opportunity for Pepsi to increase its sales through them.

THREATS

The main competitor of the company is the Coca Cola.



16/21


At the international level, Pepsi has a very strong competition with Coke.Coke has started its advertisements more effectively to increase their demandand it is a very strong threat for Pepsi.

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

people is in creasing which is a big threat to the company.

INTERNAL ENVIRONMENT

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 makeits marketing strategies keeping in view the consumer buying behavior. Toforecast the behavior of the consumer is a business problem. Physical aspectof the consumer can be satisfied but it is difficult to satisfy the consumerpsychologically. Consumer buying behavior is affected by certain factors likeCultural factors, Social factors, Personal factors and Psychological factors. Sothe producer should keep these factors in Mind while promoting their productso 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. Someconsumers are impressed by one quality of the product which may be in theview of other consumer not that impressive. So to deal with differentconsumers in a society one should know about the consumer buying behaviorprocess which may help in making a true picture of their product in the mindof the consumers.

COMPETITOR:

He is the person who is selling the same type of product in the market.

The marketing concept states that to be successful, a company must providegreater customer value and satisfaction than its competitors do.



17/21


Pepsi has a tough competition with Coca Cola while it faces a little competitionwith the local producers like RC Cola, Shandi Cola etc. The local producershardly affect the sales of Pepsi in the market.

DISTRIBUTOR:Distributor maintains the image of the product and the sales in the market. Ifitems are not properly placed by the distributor, it will disperse the market.

CHANNELS OF DISTRIBUTION

The Pepsi uses the following two channels for the distribution of theirproducts.

Indirect Distribution

Indirect distribution involves agency holders e.g. Riaz Bottlers Pvt. Ltd. Lahorefranchise has divided its region i.e. Lahore and Kasur districts in twocategories.

Local Zone

These are 62 agencies distributing Pepsi Products (250ml Sd) only aroundLahore in their respective allocated sub zones.

Out Station Zone

17 dealers have been appointed by the bottlers for far distant places and inout skirts of Lahore and Kasur the dealers involved in direct distribution areonly 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.PRE-MARKETING MIX

SEGMENTATION



18/21


It means that you divide the target market in to different groups. Marketconsists of buyers and buyers differ in one or more ways. They may differ inwants, resources, locations and buying practices. Through marketsegmentation companies divide large, heterogeneous markets into smaller

segments that can be reached more efficiently and effectively with productsand services that match their unique needs.

Segmentation is done on basis of the previously mentioned external factorsand the following:

Behavioral Base

It is how people perceive a specific product, in short psychological analysis ofa product. Pepsi all over the world is recognized as a quality drink andtherefore people drink it without any hesitation whenever they are thirsty orotherwise. So marketers of Pepsi have made it a drink for all people and for

diabetic people they introduced diet Pepsi.

Cognitive Base

It pushes and pulls the consumer. If the outlook of Pepsi bottle is desirable andit attracts the consumer, he will buy it even if he isnt thirsty.

TARGET MARKET

The market which is focused by the producer is called the target market.

Targeting is to focus on the target market to attract the customers.

CHARACTERISTICS OF TARGET MARKET

The target market should have some following features.

Accessible

It means that the target market which is focused should be accessible oreasily approachable.

Substantial

The target Market should be substantial. It should have a specific size wherestrategies can be made and implemented.



19/21


Measurable

One should be able to measure the demand in the market.

Comparable

The producer should identify that needs of different customers are different.

Profitable

The target market should be profitable for the producer.

MARKETING STRATEGIES

There are different marketing strategies which are applied in targeting. Someof these strategies which Pepsi follows are discussed below:

Mass Marketing

Big firms or companies say that everyone is their buyer whether they belongto rural or urban area, big or small country, rich or poor, adults and smallchildren etc. Pepsi is mostly used by the young generation but it claims that itis moving towards mass marketing.

POSITIONING STRATEGY

It means that you try to give image to your product in the mind of the

customers. To give a true and positive picture of the product is the bestpositioning. The company should promote its good points or comparativeadvantage which it has over its competitors

Strategy Implementation

In Pakistan Pepsi is the most liked soft drink especially by young generation sothe Pepsi cola company has devised such marketing strategy which attractedthem. 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 colacompany paid high amounts of money to the cricketers to act as their spokesmen.

Some of the most famous cricketers in the modern era have acted as spokepersons also film stars have been acting as spoke persons.



20/21


The Pepsi cola company has after doing research also has introduced differentsize of bottles offered at lower prices so that every one can afford them. AlsoPepsi 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 andhas sponsored a number of series.

Also Pepsi has donated a lot to the earth quake victims and has launched anumber of prize schemes to attract new customers

As a result of this marketing strategy Pepsi has become the largest seller ofsoft 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 ablereplace it.

CONCLUSION

Pepsi is a well renowned company and it has maintained its position well byunderstanding the client psychology, by ensuring quality, by introducingingenuity in products, by enlarging its product base, by keeping economicfactors in view and by intense and jazzy advertisements.

Whenever and where ever there is a spotlight event, Pepsi must figure in, likethe one day international cricket matches between India and Pakistan manyother such occasions. The key word for success in the Marketing World is toremain in the spotlight and that is what Pepsi is doing.

RECOMMENDATION / SUGGESTIONS

The marketing world is full of surprises. Who could imagine that Coca Colawould be overtaken by Pepsi? If Coke could be overrun by Pepsi, it would beno wonder that Pepsi might be overtaken by some other beverage. The need

then is to combine quality with ingenuity. Along with that, the reputation ofthe 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 ones laurels. Fresh efforts, newness of approach mustremain the cardinal principles of a well orchestrated marketing strategy andthe campaign must be relentless. A continuous bombardment in



21/21


advertisement would convince the clients that Pepsi is a part of their lives. Inorder to live with style, Pepsi ought to be an essential ingredient of ones 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 productremain in the market. It holds a large share of the market and whenever thesales state declining, the company can improve it by different promotionalactivities.

Marketers of Pepsi can try to improve sales by improving one or moremarketing mix elements. They can cut prices to attract new users andcompetitors customers. They can also launch a better advertising campaignor use aggressive sales promotion to improve the sales. Thus, Pepsi is at itsmaturity stage.


sm 2nd assignment

Documents