Strategic Marketing of Pepsi

2010
Authorized Dealers - 17 Agencies 62

CHANNELS OF DISTRIBUTION
The Pepsi uses the following two channels for
the distribution of their products.
1. Indirect Distribution
Indirect distribution involves agency holders e.g. Riaz
BottlersPvt. Ltd. Lahore franchise has divided its region i.e.
Lahore andKasur districts in two categories.
Local Zone
These are 62 agencies distributing Pepsi Products(250ml
STD) only around Lahore in their respectiveallocated sub zones.
Out Station Zone
17 dealers have been appointed by the bottlers forf a r
d i s t a n t p l a c e s a n d i n o u t s k i r t s o f L a h o r e a n d Kasur the
dealers involved in direct distribution areonly authorized to sell
250 ml (STD) bottle of Pepsi, Team and Marinda.
38
The Islamia University of Bahawalpur, Rahim Yar KhanCampus

Strategic Marketing of Pepsi

2010
2. Direct Distribution
The factory vehicles operate on 45 direct routes in Lahoreselling nonreturnable bottles Litter, Pet and Can.

SPECIAL POINTS
Other than these some special points are also being looked afterby direct
sales vehicles such hotels restaurants, public parks, bigand reputed super
stores etc. At Avari, Pearl continental,
village,S e a s m a g n i f i c e n c e e t c . P e p s i C o l a d i r e c t l y d i s t r i
b u t e s t h e products.
Promotional Strategies
In Pakistan Pepsi is the most liked soft drink especially by young
generations o t h e P e p s i c o l a c o m p a n y h a s d e v i s e d s u c h m
a r k e t i n g s t r a t e g y w h i c h attracted the m. For this reason
they started monitoring the habits of the generation. What
they saw was that the students were crazy about cricketand
usually liked to idealize them so in order to increase their sales the
Pepsicola company paid high amounts of money to the cricketers
to act as theirspokes men.Some of the most famous cricketers in the
modern era have acted as spokepersons also film stars have been acting
as spoke
persons. T h e P e p s i c o l a c o m p a n y h a s a f t e r d o i n g r e s e a r c
h a l s o h a s i n t r o d u c e d different size of bottles offered at lower
prices so that every one can
affordt h e m . A l s o P e p s i C o m p a n y h a s i n t r o d u c e d o t h e r s
o f t d r i n k s i n c l u d i n g mountain dew, seven up and marinda.
Pepsi company has introduced otherflavors such as Pepsi twist,
Pepsi max diet Pepsi.Pepsi Cola Company has also become official
sponsors of Pakistan cricketand has 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
39

The Islamia University of Bahawalpur, Rahim Yar KhanCampus

Strategic Marketing of Pepsi

2010
As a result of this marketing strategy Pepsi has become the largest seller
of soft drinks in Pakistan and is slowly forming a monopoly in
drinks market.Although many soft drinks like Pepsi have been
introduced such as AmritCola, Quibla Cola offered at lower prices but
none of these drinks have beenable replace it.
Following are the strategies:Comparative Parity Method
:A s w e h a v e a l r e a d y d i s c u s s e d P e p s i p r i c i n g s t r a t e g y
i s d e t e r m i n e d y considera tion the stra tegy of coca cola so
in this case also Pepsi ads are telecasted with the competition in
coca cola which is its direct competitor.
Objective and task methods
When Pepsi introduced any new variant they have advertise
d it heavily.Objective of which is to make a space for new
product in the market. Wehave seen the heavy advertisement of
Pepsi max in previous days.
Seasonal advertisement:
Frequency of the Pepsi ads varies from time to time. When the season is
onPepsi do heavy advertisement especially in ramzan days or eid
occasions butthis advertisement not remain consist. We can hardly
see the ads of Pepsinow as there is winter season.

Strategic Marketing of Pepsi

2010
Authorized Dealers - 17 Agencies 62


CHANNELS OF DISTRIBUTION
The Pepsi uses the following two channels for the distribution of their
products.
1. Indirect Distribution
Indirect distribution involves agency holders e.g. Riaz BottlersPvt. Ltd.
Lahore franchise has divided its region i.e. Lahore andKasur districts in
two categories.
Local Zone
These are 62 agencies distributing Pepsi Products(250ml STD) only
around Lahore in their respectiveallocated sub zones.
Out Station Zone
17 dealers have been appointed by the bottlers forfar distant places and
in out skirts of Lahore andKasur the dealers involved in direct
distribution areonly authorized to sell 250 ml (STD) bottle of Pepsi,
Team and Marinda.
38
The Islamia University of Bahawalpur, Rahim Yar KhanCampus

Strategic Marketing of Pepsi

2010
2. Direct Distribution

The factory vehicles operate on 45 direct routes in Lahoreselling nonreturnable bottles Litter, Pet and Can.

SPECIAL POINTS
Other than these some special points are also being looked afterby direct
sales vehicles such hotels restaurants, public parks, bigand reputed super
stores etc. At Avari, Pearl continental, village,Seas magnificence etc.
Pepsi Cola directly distributes theproducts.
Promotional Strategies
In Pakistan Pepsi is the most liked soft drink especially by young
generationso the Pepsi cola company has devised such marketing
strategy whichattracted them. For this reason they started monitoring the
habits of thegeneration. What they saw was that the students were crazy
about cricketand usually liked to idealize them so in order to increase
their sales the Pepsicola company paid high amounts of money to the
cricketers to act as theirspokes men.Some of the most famous cricketers
in the modern era have acted as spokepersons also film stars have been
acting as spoke persons. The Pepsi cola company has after doing
research also has introduceddifferent size of bottles offered at lower
prices so that every one can affordthem. Also Pepsi Company has
introduced other soft drinks includingmountain dew, seven up and
marinda. Pepsi company has introduced otherflavors such as Pepsi twist,
Pepsi max diet Pepsi.Pepsi Cola Company has also become official
sponsors of Pakistan cricketand has 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

39
The Islamia University of Bahawalpur, Rahim Yar KhanCampus

Strategic Marketing of Pepsi

2010
As a result of this marketing strategy Pepsi has become the largest seller
of soft drinks in Pakistan and is slowly forming a monopoly in drinks
market.Although many soft drinks like Pepsi have been introduced such
as AmritCola, Quibla Cola offered at lower prices but none of these
drinks have beenable replace it.
Following are the strategies:Comparative Parity Method
:As we have already discussed Pepsi pricing strategy is determined
yconsideration the strategy of coca cola so in this case also Pepsi ads
aretelecasted with the competition in coca cola which is its direct
competitor.
Objective and task methods
When Pepsi introduced any new variant they have advertised it
heavily.Objective of which is to make a space for new product in the
market. Wehave seen the heavy advertisement of Pepsi max in previous
days.
Seasonal advertisement:
Frequency of the Pepsi ads varies from time to time. When the season is
onPepsi do heavy advertisement especially in ramzan days or eid

occasions butthis advertisement not remain consist. We can hardly see

the ads of Pepsinow as there is winter season.