ACKNOWLEDGEMENT

We owe our gratitude to Allah Almighty whose shower of blessings and kindness has

been on us through out the working on these pages. It is His help that we finally able to

compile this document.

We are indebted to our respected teacher Mr. Jawad Saleem who’s indispensable and

intricate comments on various aspects conjoined with motivation made us come forth

holding such as project.

INTRODUCTION TO THE COMPANY

Pepsi International is a world renowned brand. It is a very well organized multinational

company, which operates almost all over the world. They produce, one of best carbonated

drinks in the world. Pepsi is a symbol of hygiene, quality and service, all over the world.

Pepsi is producing Cola for more than 100 years and it has dominated the world market

for a long time. Its head office is in New York.

MISSION STATEMENT

“To be the world's premier consumer Products Company focused on convenient foods

and beverages. We seek to produce healthy 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.”

VISION STATEMENT

“To be the world's best beverage company”. Being the best means providing

outstanding quality, service, cleanliness and value, so that their every customer is

contented and happy with their products.”

“To increase the value of their shareholder’s investment through sales growth, cost

control and wise investment of resources.”

FACTS ABOUT THE COMPANY

1. Pepsi is a USA based public company whose stocks are available in New York.

2. Mountain Dew, acquired by Pepsi-Cola in 1964, switches its advertising and package

graphics room hillbillies to action-oriented scenes.

3. The third Mountain Dew slogan appeared in 1973 "Put A Little Yahoo in Your Life."

4. PepsiCo acquired Pizza Hut, Inc. Pizza Hut was founded in 1958 by Dan and Frank

Carney.

5. Taco Bell is was acquired by Pepsi. Taco Bell was established in the mid 1960s by

Glen Bell.

6. PepsiCo purchased Kentucky Fried Chicken, the leader in the quick service chicken

market. KFC was founded by Colonel Harland Sanders. Colonel Sanders began

franchising the company in 1952. KFC was spun off along with Pizza Hut and Taco Bell

businesses as Tricon Global Restaurants, Inc. in 1997.

7. PepsiCo purchases Seven-Up International, the third largest franchise soft drink

operation outside the United States

INTRODUCTION TO THE COMPANY

Pepsi International is a world renowned brand. It is a very well organized multinational

company, which operates almost all over the world. They produce, one of best carbonated

drinks in the world. Pepsi is a symbol of hygiene, quality and service, all over the world.

Pepsi is producing Cola for more than 100 years and it has dominated the world market

for a long time. Its head office is in New York.

MISSION STATEMENT

“To be the world's premier consumer Products Company focused on convenient foods

and beverages. We seek to produce healthy 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.”

VISION STATEMENT

“To be the world's best beverage company”. Being the best means providing

outstanding quality, service, cleanliness and value, so that their every customer is

contented and happy with their products.”

“To increase the value of their shareholder’s investment through sales growth, cost

control and wise investment of resources.”

FACTS ABOUT THE COMPANY

1. Pepsi is a USA based public company whose stocks are available in New York.

2. Mountain Dew, acquired by Pepsi-Cola in 1964, switches its advertising and package

graphics room hillbillies to action-oriented scenes.

3. The third Mountain Dew slogan appeared in 1973 "Put A Little Yahoo in Your Life."

4. PepsiCo acquired Pizza Hut, Inc. Pizza Hut was founded in 1958 by Dan and Frank

Carney.

5. Taco Bell is was acquired by Pepsi. Taco Bell was established in the mid 1960s by

Glen Bell.

6. PepsiCo purchased Kentucky Fried Chicken, the leader in the quick service chicken

market. KFC was founded by Colonel Harland Sanders. Colonel Sanders began

franchising the company in 1952. KFC was spun off along with Pizza Hut and Taco Bell

businesses as Tricon Global Restaurants, Inc. in 1997.

7. PepsiCo purchases Seven-Up International, the third largest franchise soft drink

operation outside the United States

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 companies well as its external threats and opportunities.

The marketing mix is driven by the 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 more

brand loyal customers.

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

Pepsi is an international company and it has a very strong position

internationally.

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 available

everywhere.

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, college

canteens etc.

OPPORTUNITIES

Company may start entering rural areas also.

The company may also diversify its business in some other potential

business.

Increased interest of people in musical groups, cultural shows and sports

has provided an opportunity for Pepsi to increase its sales through them.

THREATS

The main competitor of the company is the Coca Cola.

At the international level, Pepsi has a very strong competition with Coke.

Coke has started its advertisements more effectively to increase their

demand and 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.

HOW Internal and External factors affecting the strategies

Marketers need to be good at building relationships with customers, others in the

company and external links. To do this effectively, they must understand the major

environmental forces that surround all of these relationships. A company’s environment

consists of forces outside marketing that affect marketing management’s ability to build

and maintain successful relationship with the target customers. Every company should

know the vital importance of constantly watching and adapting to the changing

environment. As the world is moving fast today, no one can be certain about the future.

The environment continues to change rapidly. By carefully studying the environment,

marketers can adapt their strategies to meet new marketplace challenges and

opportunities.

Some of the external and internal environmental factors that affect the marketing trend of

the company are as follows:

EXTERNAL ENVIRONMENT

The macro environment consists of the larger societal forces that affect the

microenvironment. The external factors are not under the control of the marketers; they

can just observe them and make strategies in light of these factors. Some of these factors

are given below:

Demographic Factors:

· Age

The requirements of different age groups are different. Pepsi should target

that age group that consumes it the most and make promotional strategies

according to their behavior. So their main target is the young generation.

· Education

A company has to make promotional strategies keeping in view the

customer level. If the percentage of education is high in a country then

through advertisements people can be made well aware of their product

and can convey their message easily. Promotion and education has a direct

relationship.

· Population Distribution

Population distribution means how much [population lives I urban areas

and rural areas. In Pakistan 35 % population resides in urban areas and

65% population lives in rural areas. Pepsi is focusing on urban areas as

people there are more inclined towards such beverage while people in

rural areas are more inclined drinking lassi and desi drinks.

· Population Density

It means number of people in one square km per area. Karachi has the

largest population density and Islamabad has less population density in

Pakistan. Pepsi sales are more in Karachi as compared to the sales in

Islamabad.

ECONOMIC FACTORS:

· Income and Income per Capita

If the income level or per capita income of the people increases, it will

have a positive effect on the consumption of Pepsi.

· Inflation

If the country faces inflationary trend in the market, the price of the Pepsi

will ultimately increase which will lower its demand.

· Consumption Behavior

Pakistan is a consumption oriented society. Due to demonstration effect

the people are more inclined towards consumption than saving. So the

people of Pakistan spent heavily on food items. Hence Pepsi has a good

market share in the present circumstances.

· Income Distribution

It means how much is in the hands of rich and poor class. In Pakistan 10%

rich people posses 93% of wealth and 90% people posses 7% of wealth. If

there is balanced distribution of income in the country, the consumption of

the people will increase hence increasing the sales of beverages as well.

· Payment Mod

As the use of plastic money is increasing the consumption pattern of the

people are increasing. Although it will have a low affect on the

consumption of Pepsi.

· Employment Opportunities

As employment opportunities increase the living standard of the people

increase and the people consume more.

· Aggregate Demand

In case of Pepsi, aggregate demand of the product increases in the season

of summer as the hot weather makes the consumers want to drink more.

· Aggregate Supply

In summer season to cope up with the increasing demand they have to

increase the aggregate supply of their product.

· Economic Policies

Some of the economic policies which can affect the market of Pepsi are

discussed below:

· Fiscal Policy

It is the policy of taxes. If heavy tax is levied on Pepsi then its price will

rise having negative affect on its consumption.

· Monetary Policy

Monetary policy is made to restrict or increase the supply of money in the

market. If policies are made to restrict the flow of money in the market,

inflation can be controlled hence increasing the real income of the people

which will ultimately affect the consumption of Pepsi.

· Price Policy

If price of Pepsi is increased its demand will decrease and vice versa.

· Income Policy

If income of the people will increase their purchasing power will increase

and hence increasing the market share of Pepsi.

PHYSICAL FACTOR:

· Region

Pakistan is divided into different geographical regions. Marketing and

sales of Pepsi is different in different geographical regions. In hot areas its

demand is more.

· City Size

The cities which are densely populated the consumption of Pepsi is more.

· Climate

Pepsi is more suitable for humid or hot weathered countries like Pakistan.

It is a source of refreshment when a person is thirty due to the hot weather.

· Infrastructure

Roads are the basic need for transportation of Pepsi from one place to

another. Pepsi cannot open factories in every city of Pakistan so it has to

transport it to other cities where Pepsi is demanded.

Electricity is the basic necessity for production of any product. Constant

load shedding slows down the process of production which leads to less

production and low market share.

TECHNOLOGICAL FACTORS:

· Research and Development

Through research and development quality of the product can be improved

or better techniques or machinery can be developed which can increase the

production. When technology is advance the supply of the product

increase hence the company experiences growth in their business.

POLITICAL AND LEGAL FACTORS:

· POLITICAL STABILITY:

Whenever the government is considered to be stable, the business will

flourish. If there is political stability in the country the policies and

strategies made by Pepsi can be consistent to be implemented. Foreign

companies are also keen to invest in those countries which are politically

stable where they have no fear of decline in their market share or shut

down due to sudden change of government.

· Mixed Economy

In mixed economy government and private sector both plays their role in

developing the economy of the country. Investment by foreign companies

like Pepsi is more likely to flourish in mixed economy.

· Laws Formulation

Government has given copy rights to Pepsi so that another company

cannot sell their product by the name of Pepsi. The countries where laws

are formulated, the strategies and activities of the company are different.

· Social Responsibility

Pepsi’s social responsibility is to provide its customers with clean and

hygienic product so to do this they have increased the use of disposable

bottles.

SOCIAL AND CULTURAL FACTORS:

· Psychographic

It is a combination of demographic and psychological factors.

Psychological attributes mean how you perceive things. The company will

focus on the behavior of consumers and make different changes in their

product quantity or quality and in promoting their product so that they can

attract the customers. Keeping in view that the behavior of different

consumers is not alike they have to make their marketing strategies in

accordance with their requirements so that they are convinced to buy the

product.

· Religious

Religious factors can influence the market sales of Pepsi as it happened in

2003 when the U.S-led attack on Iraq, wide sections of society in Pakistan

have banned American multinationals Coke and Pepsi

· Social Status

Pepsi is a well renowned brand. People who are brand conscious will not

drink beverages of lesser known brands such as Amrat cola. They will try

to show their status by drinking Pepsi which is known to all as a quality

drink.

· Media

It is a very important factor for marketing. Media these days is a very

effective way of inspiring people to buy a specific product. A good

promotion can boast up sales to a great extent.

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 make its

marketing strategies keeping in view the consumer buying behavior. To forecast the

behavior of the consumer is a business problem. Physical aspect of the consumer can be

satisfied but it is difficult to satisfy the consumer psychologically. Consumer buying

behavior is affected by certain factors like Cultural factors, Social factors, Personal

factors and Psychological factors. So the producer should keep these factors in Mind

while promoting their product so 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. Some consumers are impressed

by one quality of the product which may be in the view of other consumer not that

impressive. So to deal with different consumers in a society one should know about the

consumer buying behavior process which may help in making a true picture of their

product in the mind of the consumers.

CONSUMER BUYING BEHAVIOUR PROCESS:

Consumer buying behavior process is explained in some steps which are discussed below:

· Need Identification

The consumer is thirsty and he wants to quench his thirst.

· Information Search

He will search as to what will satisfy his thirst the most.

· Evaluation of Alternatives

He will now evaluate from the wide range of beverages available to him

that which one of them is suitable to him in terms of quality, taste and is

pocket friendly.

· Selection

After evaluating the product he will select a product.

· Purchase

The consumer will buy the selected product.

· Post-Purchase Experience:

It is the experience that the consumer gets after using the product. He will

use the product again if he feels that his satisfaction after use is more or

equal to the price of the product.

After looking at above mentioned example, we can get an understanding that a product

should be so desirable that whenever a person identifies his need, he selects our product

among various substitute products and he feel satisfies so that he retains the use of that

product.

CONCLUSION

Pepsi is a well renowned company and it has maintained its position well by

understanding the client psychology, by ensuring quality, by introducing ingenuity in

products, by enlarging its product base, by keeping economic factors in view and by

intense and jazzy advertisements.

Whenever and where ever there is a spotlight event, Pepsi must figure in, like the one day

international cricket matches between India and Pakistan many other such occasions. The

key word for success in the Marketing World is to “remain in the spotlight” and that is

what Pepsi is doing.

SUGGESTIONS

The marketing world is full of surprises. Who could imagine that Coca Cola would be

overtaken by Pepsi? If Coke could be overrun by Pepsi, it would be no wonder that Pepsi

might be overtaken by some other beverage. The need then is to combine quality with

ingenuity. Along with that, the reputation of the 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 one’s laurels. Fresh efforts, newness of approach must remain the cardinal

principles of a well orchestrated marketing strategy and the campaign must be relentless.

A continuous bombardment in advertisement would convince the clients that Pepsi is a

part of their lives. In order to live with style, Pepsi ought to be an essential ingredient of

one’s 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 product remain in the market.

It holds a large share of the market and whenever the sales state declining, the company

can improve it by different promotional activities.

Marketers of Pepsi can try to improve sales by improving one or more marketing mix

elements. They can cut prices to attract new users and competitor’s customers. They can

also launch a better advertising campaign or use aggressive sales promotion to improve

the sales. Thus, Pepsi is at its maturity stage.