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 diversificationin 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.
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.
Introduction to PepsiCo International
One of America’s favorite soft drinks, Pepsi-Cola, didn’t make it to the Taste test stage, several
times. The ability of the product to survive several bankruptcies, numerous management
changes, and major internal squabbles made it an even stronger player in the bid for consumer
taste acceptance.
Our story begins with the birth of Caleb D. Bradham in 1867. Bradham was born in Chinquapin,
North Carolina in 1867. Chinquapin is a rural community about forty miles south of New Bern,
North Carolina. New Bern is a seaport town which was first settled in 1710 by Swiss and
German emigrants.
Caleb Bradham attended the University of North Carolina and the University of Maryland
Medical School. While at the University of Maryland, he worked part-time in a local drug
store. When his fathers’ business failed in 1891, Caleb dropped out of medical school and
decided to open a drug store of his own in New Bern. This drug store was the first home of
Pepsi-Cola, and it was located at Middle and Pollock Streets in New Bern.
Caleb formulated the Taste that Beats the Others cold in his new drug store, and in 1893, he
began selling “Brad’s Drink”, which among other claims, was to be a cure for dyspepsia.
In 1898, Caleb Bradham bought the name “Pep Cola” for $100 from a company in Newark, New
Jersey that had gone broke. He then changed the name of his new drink from “Brad’s Cola to
Pepsi-cola, and persuaded a neighbor who was an artist to create the first Pepsi-Cola logo.
Bradham applied to the state of North Carolina and to the U.S. Patent Office for a trademark on
the name Pepsi-cola in 1902. He also issued ninety-seven shares of stock for his new company,
and was ready to supply Pepsi to an eagerly awaiting world.
This is how Pepsi Cola Started his journey from United States of America.
In 1948 the company moved it’s head quarters to New York City , where it is still based, and by
the early 1950s, under the leadership of CEO Alfred Steele- whose wife was actress Joan
Crawford – Pepsi was being advertised more as being a part of modern life style than as a
bargain.
Pepsi’s worldwide expansion led to the formation of separate international division in 1954, and
in 1959 when the Vice- President Nixon provided Soviet President Kruschev with a sample,
Pepsi become the hit of the Moscow world’s Fair -Auguring Pepsi’s becoming the first American
producer ever to license for manufacture in Soviet union, fifteen years later.
Pepsi generation” in 1963 become both the name for the baby boom generation and an
advertising theme still in use today .It was in 60s too, that Diet Pepsi and Mountain Dew were
added to the company’s product line, and PepsiCo was formed with the merger of Pepsi Cola and
Frito-Lay.
During the 1970s the initiation program of strategic acquisitions -Pizza Hut in 1977, Taco Bell in
1978, and KFC in !986-resulted in Pepsi CO’s becoming the world’s largest restaurant company.
The company’s tradition of innovation carried into the 80s and now in 90s, Pepsi’s always
introducing new products. Like it introduces, Slice, the first ever soft drink with real fruit juice in
80s and Pepsi Max a sugar free cola drink in 90s.
In advertising, It was Pepsi who first thought of using stars like Michael Jackson Michael J. Fox
and Lionel Richie in its promotion campaigns.
Introduction to Pepsi Cola Pakistan
in 1959 Pepsi Cola was introduced in Pakistan but due to lack of awareness it was unsuccessful
therefore the headquarters decided to windup their business in Pakistan
1963 It came again with much revised Strategy, facing a lot of difficulties in promoting their
product and competing against COCA-COLA which was a well-established brand here in
Pakistan and for that reason Pepsi once again went back
1979 Pepsi had secretly promoted its diversified products and carter to all demographic groups of
Pakistan there for in within 5 years they emerged as a market leader, having 62% of market share
while Coca-Cola had only 32% share.
Pepsi-Cola is one of the best soft drink in the world. The company has operated continuously for over 40
years offering a range of quality products Pepsi, Diet Pepsi, Miranda, 7UP, Diet 7UP, Mountain Dew.

Analysts believe Pakistan to be an enormously growing potential market as per capita

consumption there is as low as 14 bottles per year.
Pepsi is very popular in Pakistan and it holds about 60% in the soft-drink market. Pepsi Cola
International, a remarkable name in the cola industry is running its business in Pakistan through
different distributors.
Pepsi-Cola has eight franchises in Pakistan their names are as follows.
1. Riaz Bottlers Lahore
2. Pakistan Beverages Karachi
3. Punjab Beverages Faisalabad
4. Shamim & Co Multan
5. Naubahar Beverages Gujranwala
6. Haideri Beverages Islamabad
7. Northern Beverages Peshawar
8. Sakhar Beverages
Punjab Beverages working under the supervision of PCI Pepsi Cola International in the
Faisalabad Area. The distribution area of Punjab Beverages is up to District Khushab.
It has 7 distributors to distribute their products.
They are producing almost every product of Pepsi Cola which is available in Pakistan. Punjab
Beverages is located in Nisar Colony near Samundri Road Faisalabad.
It has a vast of network of distribution in his territory. There is rule of Pepsi Cola International
that products of any franchise of Pepsi cannot go to other territory because every franchise has
their own limit so they has to distribute their products in areas. If someone goes against this rule
then huge fine is implemented on that franchise by Pepsi Cola International.
Logo History of Pepsi
The logo of the Pepsi-Cola company is one that is known in households throughout the world. Its
distinctive red, white and blue colors can be found in nearly every gas station, grocery store and
restaurant out there. The logo, however, has gone through many changes over the years. This
article will explain where it started and how it changed over the years to become the logo
that everyone knows to this day.
Pepsi was originally created and marketed by Caleb Bradham in 1898. The drink, which he
created in his own house, was sold under the name “Brad’s Drink.” He then, seeking a broader
audience, changed the name to Pepsi-Cola. He did this to identify with two important ingredients
in the drink, mainly Pepsin(a digestive enzyme) and kola nuts. As his drink became ever more
popular, Caleb moved his production facility out of his house into a rented warehouse. There, in
order to make a name for himself, he came up with the first Pepsi Logo which is found above.
Then, in 1905 and 1906, Pepsi’s logo was redesigned to be more identifiable to the customer
base. The logo created in 1906, shown above, lasted the company until 1940. Then, in 1940, the
CEO of Pepsi had the idea to create a logo on the bottle cap. This started a tradition that lasted
for decades.
Pepsi-Cola, seeking to show support for the United States and capitalize on patriotic feelings,
introduced the iconic red, white and blue colors onto their products. This logo became wildly
popular and, to this day, the color scheme is the same. Then, in 1973, Pepsi introduced the
“boxed-in” Pepsi logo. Pepsi then experimented with several different color schemes throughout
the 1990’s. The Pepsi Globe, the official term for the round Pepsi logo, started getting greater
and greater emphasis within the logos during this time. Then, in 2003, Pepsi did away with their
script entirely and focused solely on the globe.
The current Pepsi logo, which is found above, shows how Pepsi is trying to draw in new
customers by using imagery to denote freshness. Notice the condensation and ice on the Pepsi
Globe. This logo, far more than the others, is seeking to draw in new customers by giving an
impression of refreshment. This goes along well with their latest slogan of “Pepsi, choice of
every generation”

4P’s of Marketing
Product
There are seven product lines of Pepsi Pakistan named as Pepsi, 7up, Miranda, Dew, Sting, Slice
and Aquafina. Pepsi also owns Frito Lay which is producer of world’s famous snacks lays and
Kurkure. Pepsi introduced new products last year (2018) which are Miranda Green Cream and
7up Mint. Pepsi also planning to introduce Slice Juice new flavors in Pakistani Market which are
apple and orange flavors. One of the best thing about products of Pepsi-Cola is that Sting is the
market leader of his types still there is no substitute of Sting from any competitor, Sting is that
star product of Pepsi which is available on every shop of cold drinks.
Price
Prices of the products are set by franchises of the Pepsi which are producing in Pakistan. There is
no instruction given by Pepsi Cola International to set the prices, because they know that
franchises know better about market conditions of cold drinks than anyone else. Franchises use
the strategy of penetration pricing, which is the kind of pricing in which company first lowers the
price according to the market situation and their competitors pricing. Mostly prices of Pepsi are
lower than their competitors.
Place
In the placement section of products, they deliver their products from warehouse to the
distributor and then rest is depend upon the distributor. Salesman of the Pepsi is given to
distributor by Franchise of Pepsi to take care of things and make representation of Pepsi.
Distributor loads the stock from warehouse of the Pepsi and store it on their place.
Distributor buys from Pepsi at specific price and then keep a price difference about profit and
sell it as retail marginal price to the retailer. Company do not prefer the stockers and traders
business from distributor.

PepsiCo Distributor Wholesaler

Retailer Consumer

Promotion
When a Product is priced and place at right place then it’s time for promotion of that product.
There are many ways of promoting a product.
Run ads on TV channels is strongest way of promotion of any product. Making an attractive ad
of the product itself is an art and then running it on TV channel is a useful way to introduce a
new product to customers and consumers.
Now a days Social Media has replaced TV channels ads because most of our youth generation is
on social media like Facebook, Instagram and Twitter. Pepsi Social Media fans are much than
any of his competitor.
There are many other ways to promote a new product addition like Print Media, Bill Boards etc.
PepsiCo has started new projects this year one of them is Pepsi Tameer which is a loyalty
program for their retailers. It is a trade loyalty program in which specific PCI exclusive outlets
are being selected in which outlets which sell more Pepsi Products other than our competitors.
They will be selected as per their sales criteria then our Team will visit them to make that shop
will be beautified with PCI banners, gandulas, stickers etc
Those shop who will keep their loyalty will be rewarded with free stock coupons or cash prize.
When retailers will receive their rewards they will be more loyal to Pepsi and do suggestive
selling to the consumer on our behalf.
SWOT Analysis of Pepsi
SWOT helps a company to see itself for better and for worse.
Companies are inherently insular and inward-looking SWOT’s are a means by
which a company can better understand what it does very well and where its
shortcomings are. SWOT’s will help the company size up the competitive
landscape and get some insight into the vagaries of the marketplace.
SWOT analysis has been a framework of choice among many
managers for a long time because of its simplicity and its portrayal of the
essence of sound strategy formulation - matching a firm’s opportunities and
threats with its strengths and weaknesses. Central to making SWOT analysis
effective is accurate internal analysis – the identification of specific strengths
and weaknesses around which sound strategy can be built.
Strengths
 Company Image
 Good Relations with Franchise
 Market Share
 Large no. of diversity business
 Sponsorships
Weakness
 Decline in taste
 Weak Distribution
 Political Franchises
 Low consumer knowledge
 Financial Downfall
Opportunities
 Increasing number of populations
 Change in social trend
 Diversification
 Distribution of Snacks with Drink
Threats
 Imitators
 Govt Regulation
 Substitution of drinks from Competitors
 Threat of Labor Strike
 Growing Health Concern

BCG Matrix of Pepsi Cola

The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help with
long-term strategic planning, to help a business consider growth opportunities by reviewing its
portfolio of products to decide where to invest, to discontinue or develop products. It's also
known as the Growth/Share Matrix.
The Matrix is divided into 4 quadrants based on an analysis of market growth and relative market
share, as shown in the diagram below.
1. Dogs: These are products with low growth or market share.
2. Question marks or Problem Child: Products in high growth markets with low market share.
3. Stars: Products in high growth markets with high market share.
4. Cash cows: Products in low growth markets with high market share.
Stars
 Sting
 Aquafina
Question Marks
 Miranda Green Cream
 7up Mint
 DewMocrary
Cash Cows
 Pepsi Cola
 Mountain Dew
 7up
Dogs
 Sting Yellow
 Slice Juice
 Pepsi Diet

Discussion Questions
Q.1 How many products do you produce in this Production Plant?
Ans. We almost produce every product of Pepsi Cola which is now available in Pakistan.
From Pepsi Cola to Slice Juice.
Q.2 Are you planning to introduce any new product?
Ans. Yes, we are planning to introduce two new flavors in Slice Juice to compete our
competitor nestle and shezan in the market. We are also aiming to promote sting yellow
again.
Q.3 Do you set prices of your products by yourself or take any instruction from Pepsi Cola
International?
Ans. We set prices of our products by ourselves. We do not take any instruction from Pepsi
Cola international.
Q.4 What is your pricing strategy?
Ans. We use penetration pricing strategy to capture the market and to compete our
competitors.
Q.5 How many competitors do you have?
Ans. Coca-Cola, Gourmet Cola, Shezan and Nestle. We rank our competitors as per our
products line.
Q.6 Do you consider Gourmet as your major competitor?
Ans. No, Coca cola is only our major competitor in Pakistan.
Q.7 In product life cycle where company is falling or declining ?
Ans. In product life cycle our products Pepsi diet and sting yellow are at declining point.
We are planning in 2019 to re promote.
Q.8 What is your products line ?
Ans. We have 7 lines of products including Pepsi, 7up, Dew, Sting, Miranda, Slice juice and
Aquafina. We have 56 SKU (Stock Keeping Units) including 7 lines of products.
Q.9 How do you deliver your products to customers?
Ans. We keep our products in our warehouses and then send our products to our listed
distributors and it is duty of distributors to make them available at retailers.
Q.10 How many warehouses do you for stock storage?
Ans. There are two warehouses of Pepsi-Cola in the Faisalabad City one is at Nisar Colony
and other Roshan Wala Bypass.
Q.11 How many distributors do you have for product disbursement?
Ans. There are seven distributors of who are working under supervision of Punjab
Beverages as name of Pepsi Cola Pakistan.
Q.12 What is your advertising strategy?
Ans. We advertise on social media as well as Print Media. Social media advertising is made
by locally as well as internationally. Print media is controlled by Pakistan Beverages which
is located in Karachi and social media advertising is made by Punjab beverages as well as
Pepsi Cola International.
Vision of Pepsi-Cola
At PepsiCo, we aim to deliver top-tier financial performance over the long term by integrating
sustainability into our business strategy, leaving a positive imprint on society and the
environment. We call this Performance with Purpose.
It starts with what we make— a wide range of food and beverages from the indulgent to the more
nutritious; extends to how we make our products— conserving precious natural resources and
fostering environmental responsibility in and beyond our operations; and considers those who
make them— striving to support communities where we work and the careers of generations of
talented PepsiCo employees.

Mission Statement of Pepsi-Cola

As one of the largest food and beverage companies in the world, our mission is to provide
consumers around the world with delicious, affordable, convenient and complementary food and
beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to
evening treats.
We are committed to investing in our people, our company and the communities where we
operate to help position the company for long-term, sustainable growth.

Learning
 We have learned that Pepsi is lagging in the relation to its customers.
 Pepsi has improved its sales of Pepsi Cola drink from its previous years.
 Pepsi has re-introduced the old package of 1970s and 1908s to capture the customers eye
in the market.
 Pepsi has a star product sting and there is no competitor substitution for this product.
 Pepsi is working on the improving the customers relations.
 Pepsi is working on new hiring fresh blood to improve their sales and get customer
feedback that why sales of Coca-Cola is greater than Pepsi-cola.
 Pepsi is also working on the co-ordination with the retailers and introducing new kinds of
promotions and schemes to give benefit to retailer so that the retailer will benefit the
customer in a way.
 Pepsi is trying new versatile flavors in their present products and launch them so that
customer should not try other drinks.
 Right now Pepsi is doing promotion with Pakistan’s Famous Cab Company Careem to
increase the sales of mother product Pepsi.
 Moreover Pepsi is not lagging in the sales promotion at any stage. Pepsi is spending more
money on marketing strategies than Coca-Cola.
 Pepsi is only big sponsor of Pakistani Cricket Team, Pepsi also promotes many concerts
to capture young generation attention.
Conclusion
In the end conclusion about this project is that Pepsi is lagging in the sales of their cola from
coke just because of their taste. Many imitators are present in the market to defame the name
of Pepsi and spread rumors about Pepsi. As we have observed that Pepsi is not doing good in
relation with retailers and customers who are end users of their products. Retailers are angry
about their sales benefits that coke is offering more discount and they complaint about that
Pepsi do not care about us, If someone needs a chiller from company then he is not getting it
on time and replacement is available in market from competitors.
One of my personal observations about Pepsi is that a retailer has complained that Pepsi sales
and other team do not visit them after targeting a shop making available their products.
We recommend that Pepsi should work on their relations with their distributors because they
usually misbehave with Shop-Keeper and in a way they are representative of Pepsi so they
are defaming the name of Pepsi. Pepsi should also work on taking legal actions against
imitators to stop doing propaganda. Pepsi can be world’s best beverage company in the
world. The only thing they has to do that they should take care of their customers feedback
and taste.