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Marketing Plan of
PEPSICO
Assignment of Marketing
Saqib Javed
2016
Executive Summary:
BOD's
PEPSI Multan:
Pepsi Multan was incorporated in 1963 but it started its
production in 1967. Allah Nawaz Khan Tareen (Ret. DIG)
got license of 7-UP. But in 1973, it became Pepsi Cola
franchise. Now a day MD of Pepsi Cola Multan is
Alamgeer Khan Tareen son of Allah Nawaz Khan Tareen.
At start Pepsi Multan was having only one production
plant made by Netherlands and was only producing 7-Up
because it was the only brand produced by Parent
Company. In 1973, PEPSI acquired 7-Up in Canada
so the Multan franchise started producing PEPSI and
Marinda along with 7-Up & became PEPSI. Coke was
already operating in the market at the time when
Pepsi Multan established. At that time Coke was
market leader but with the passage of time Pepsi
Multan kept on focusing on chise gaining the market
share. Recently Pepsi has launched a new brand with the
name of Mountain Dew. Now Pepsi Multan is
working with five production plants capable
of producing 100,000 cases per day. Installation
arrangements for two new plants are in process The
plant which was installed at the time of establishment has
now been grounded. Pepsi Multan is currently market
leader with more than 80% of market share. The
company is properly serving all these areas with
quality products. PEPSI Multan is not an ISO certified
company because it is an international drink having their
own standards and there is no export.
BCG Matrix of PEPSICO:
Product:
Pepsi, Pepsi Light, Pepsi Twist, Pepsi Max, Pepsi
Diet, Pepsi One, Pepsi Vanilla, Pepsi Blue, Pepsi Wild
Cherry, 7UP, Diet 7UP, Caffeine Free Pepsi Light,
Mountain Dew (including Diet, Caffeine Free, Code Red,
and Live Wire flavors).
Price:
Pepsi is competitively priced to its major
competitors, offering a better tasting product at a
competitive price.
Promotion:
60% of the marketing funds are spent on advertising.
Primarily TV advertising with radio, magazine, cinema
and outdoor support. Other promotional items include:
point of sale material, consumer premiums (e.g.
clothing, caps, etc), sporting and concert sponsorships.
Place:
PAH/PI own the Pepsi brands. They sell the
concentrate to CSA who manufactures and bottles the
Pepsi products and distributes it to consumers. CSA
distribute Pepsi via various channels e.g. major
supermarket chains, smaller milk bars, restaurants and
fast food outlets (KFC, Pizza Hut and Oporto). Pepsi also
have refrigerated vending machines at various locations
and workplaces.
Strategic Marketing
The Coca Cola Company versus PepsiCo
Market Share:
Pepsi-Cola ranked as the second -best selling soft
drink in American supermarkets in 2015. A consistent
runner-up to Coca-Cola Classic, Pepsi- Cola was joined
by three other PepsiCo products in the year 2000 rankings
Mountain Dew, Diet Pepsi and Caffeine-Free Diet
Pepsi.
PepsiCo ranked second in American CSD market share to
the Coca-Cola Company, holding 31.4% during the same
year. Coca-Cola Classic outsold all soft drinks in America
during the year 2015, netting over USD$ 2 Billion at the
cash register. The Coca-Cola Company maintains the
CSD market as its primary line of business. With
subsidiaries located throughout the globe, Coca-Cola is
easily able to dominate the Global CSD market.
In the year 2015, Coca-Cola generated only 29% of its
operating income in North America, representative of its
large volume of international sales 4 inversely. PepsiCo
maintains lines of business in both the CSD market and
the snack foods market.
According to the Beverage Marketing Corporation
(BMC), Coca-Cola has held command of over half of the
world's CSD market since 1998. On a brand-by-brand
scale, Coca-Cola took five of the top seven spots globally
in 1999, with standard-bearer Coca-Cola holding a 28.6%
share of global CSD volume. Pepsi-Cola was in second
place with a 10.8% share, while PepsiCo's Mountain Dew
placed sixth in terms of global Volume.
Market Penetration:
SWOT Analysis
Strengths:
Company Image:
It also is a reputable organization and is well known
all over the world. Perception is of producing a high
quality product.
Quality Conscious:
They maintain a high quality as Pepsi Cola
international collect sample from its different
productions facilities and send them for lab test in
Tokyo.
Good relation with Franchise:
Throughout its history it has a good relation with
franchisers working indifferent areas of the world
where they have the production facilities.
Production Capacity:
It has the production capacity i.e 60000 bottles per
hour for 250 ml & 21000 bottles per hour for PET
packages is not only in Pakistan.
Market Shares:
It has a highest market share i.e 60% in Pakistan and
leading a far step head from its competitors.
Weaknesses
Declines in Taste:
During the last year, it was published in
financial posts that their has been big complaints from the
customers with regard to the bad taste that they
experienced during the span of six months.
Image as a Franchiser:
Such as in Pakistan, Hamayun Akhtar is its
franchisee that has a strong political support from a
political party, which is in opposition. In their era in
Government less tax is imposed on them but retaliation
increases as they come in opposition. So the selection is
not appropriate as this thing surely harmful their image as
well as strategies. Also some people treat it as a local
industry as compare to COKE because it is the franchise
of PEPSI international.
Weak Distribution:
They lack behind in catering the rural areas and
just concentrating in the urban areas.
Opportunities
Increasing Population:
As almost in all over the world growth rate is
increasing which is turn increases the demand of
product and requirements and especially in Asia
the market is growing at a faster rate as compare
to other continents so they have a new entrants.
Changing Social Trend:
As in all over the world people are rushing
towards fast food and beverages because of life
which has become faster, it provide the company
a favor to capture this fast moving market with
its take away product.
Diversification:
They may enter in garments business in order to
promote their brand name by making sports
clothes for player that represents their name by
wearing their clothes. As well as they have the
opportunity to move towards juices and chips.
Threats
Government regulations:
They face problems if government employee
taxes on them, which force them to raise the
price of their product.
Geographic Segmentation:
World region Asia
Country Pakistan
Cities All cities & rural areas of
Pakistan
Climate Hot & Dry
Density Urban
Demographic Segmentation:
Age 14-50
Gender Male, Female
Family Size 1-2, 3-4, 5+
Family life cycle Married, unmarried
Income Rs 10000+
Occupation From middle class to upper
class
Education School, College, University
Religion All religions
Race Asians
Nationality Pakistan
Psychographic Segmentation:
Social class Middle class, upper class
Life style Actualizes, Fulfilled,
Achievers, strivers,
believers, strugglers and
experience makers.
Behavioral segmentation:
Occasions Parties, birthdays, sports
and regular occasions
Benefits Quality, taste
User status First time user
Loyalty status Strong
Readiness stage Aware, interested
Targeting strategy:
Positioning strategy:
Firstly the Pepsi in America try to position its product for
the society as whole and for the purpose of refreshment,
which can be clearly visible from their advertisement
slogans like-