Pepsi Fianl Report Strategic Marketing Management

Sir Imran qureshi [PEPSI STRATEGIC MANAGEMENT]
Assignment
Of
Strategic Marketing
Management
Presented To: Sir Imran Qureshi
Presented By: SlinkyCity
Class: MBA-4 (1 year)
Group Members: Jamil Ahmed

4553
Shakir Mehmood
4552
INTERNATIONAL ISLAMIC UNIVERSITY

ISLAMABAD
DEDICATION
Our beloved teachers & parents, whose blessings

And concentration bring us to this stage
And who trample their inclination and longing
For up holding our studies
ACKNOWLEDGEMENT
　
A
ll the praises and thanks are to ALLAH the most beneficent, ever merciful and kind of day of
judgment. We offer our humblest thanks to our parents and special praise to the HOLY
PROPHET MUHAMMAD (PBUH) whose moral and spiritual teaching a forever source of
guidance and knowledge for humanity as a whole enlightened. I flourished out thoughts toward achieving
high ideas of life.
I feel out first and foremost duty to express my grateful appreciation and thanks to my teacher Sir Imran
Qureshi. His illustrious advice, keen interest, encouragement and constructive criticism were the real
source of inspiration during the completion of the project
Table of Content
Introduction 7
Mission and Vision 10
SWOT ANALYSIS 12
TOWS MATRIX 16
Five Forces analysis 20
CONSUMER ANALYSIS 24
BCG Matrix 26
Marketing Ratios 31
Customer’s Buying Behavior 32
Market Prospective of Competition 40
Aims and Objectives of Company 43
Strategic focus in terms of competition 43
Consumer Profiling Based on Shopping Habits 45
GE Strategies 49
Scorpio Technique 52
PepsiCo
PepsiCo, Incorporated (NYSE: PEP) is a Fortune 500, American multinational
corporation headquartered in Purchase, NY with interests in manufacturing and marketing
a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and
cereal-based snacks, and other foods. Their main product, Pepsi Cola, sells over 100
trillion cans a year.[citation needed] Besides the Pepsi brands, the company owns the brands
Quaker Oats, Gatorade, Frito-Lay, SoBe, Naked, Tropicana, Copella, Mountain Dew,
Mirinda and 7 Up (outside the USA).
Type Public (NYSE: PEP)

Industry Food
Non-alcoholic beverage
Founded New Bern N.C, U.S. (1890)
Founder(s) Caleb Bradham, Donald M. Kendall and Herman W. Lay
Headquarters Purchase, New York, U.S.
Area served Worldwide
Key people Indra Nooyi
(Chairperson and CEO)
Products Pepsi Diet Pepsi
Mountain Dew
AMP Energy
Aquafina
Sierra Mist
SoBe
Starbucks Frappuccino
Lipton Iced Tea
7up
Mirinda
Izze
Tropicana Products
Copella
Naked Juice
Gatorade
Propel Fitness Water
Quaker Oats Company
Lay's
Doritos
Cheetos
Kurkure
Fritos
Rold Gold
Ruffles
Tostitos
Slice
Revenue ▲ US$44.3 billion
Operating income ▲ US$7.3 billion
Net income ▲ US$6.24 billion
Total assets ▲ US$39.8 Billion (FY 2009)[2]
Total equity ▲ US$16.8 Billion (FY 2009)[2]
Employees 203,000 (2010)
Divisions PepsiCo Americas (PepsiCo Ameri Food, PepsiCo Americas
Beverages), PepsiCo International
Website PepsiCo.com
Pepsi International
Pepsi is a carbonated soft drink produced and manufactured by PepsiCo. The drink was
first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The
brand was trademarked on June 16, 1903. There have been many Pepsi variants produced
over the years since 1898.
Indra Nooyi- CEO of PepsiCo
Type Cola
Manufacturer PepsiCo.
Country of origin United States
Introduced 1898 (as Brad's Drink)
June 16, 1903 (as Pepsi-Cola)

1961 (as Pepsi)
Related products Coca-Cola
Fanta
Dr Pepper
7 Up
Irn Bru
Cola Turka
Big Cola
Website http://pepsi.com/
Board of Directors
Our Mission and Vision

"To be the world's premier consumer products company focussed on convenience

food 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."
Our Vision
"To build Pakistan leading total beverage company, delighting consumers by best
meeting their everyday beverage needs, and stakeholders, by delivering
performance with purpose, through our talented people."
PepsiCo Sustainability Vision

"PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate
– environment, social, economic – creating a better tomorrow than today"
Tomorrow better than Today
➢ 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.
Objectives
The objectives that the pepsi company wishes to achieve are that it wants to remain and continue to be
the best or number one beverage company in Pakistan. As pepsi is already the numberone beverage
company in Pakistan but it has to maintain its position power and status to in order to achieve their
target market.
Pepsi’s Brand
Pepsi’s brand is basically is basically “ME” branded. They use the temperament of “ME”. In
contrast to Coke they believe on individual struggle.
SWOT ANALYSIS OF PEPSI
STRENTH
1. Company Image:
It also is a reputable org. and is well known all over the world. Perception of producing a high
quality product.
2. Quality Conscious:
They maintain a high quality as Pepsi Cola International collect sample from its different
production facilities and send them for lab test in Tokyo.
3. Good Relation with Franchise:
Throughout its history it has a good relation with franchisers working in different areas of the
world where they have the production facilities.
4. Production Capacity:
It has the highest production capacity i.e. 60,000 cases per day is not only in Pakistan but also in
South Asia.
5. Market Share:
It has a highest market share i.e. 62% in Pakistan and leading a far step head from its
competitors.
6. Large No. of diversity businesses:
This is also its main strength as it ahs diversity in many businesses such as
i. Pepsi beverages
ii. Pepsi foods
iii. Pepsi Restaurants.
7. High Tech Culture:
The whole culture and business operating environment at Pepsi-Cola-West Asia has quick
access to a centralized database an they use computers as business tools for analysis and quick
decision making.
8. Sponsorships:
They mainly use celebrities in their advertising campaigning like Imran Khan, Wasim Akram,
and Waqar Younas etc. Also sponsor social activates programs like music etc.
Management Experienced, broad base of interests and knowledge Large size may lead to
conflicting interests
Product Line Unique, tastes good, competitive price, and convenient New one calorie products
have no existing customer base, generic brands can make similar drinks – cheaper
WEAKNESS
1. Decline in taste:
During the last years, it was published in Financial post that there has been big complaints from
the customers with regard to the bad taste that they experienced during the span of six months.
2. Political Franchises:
Such as in Pakistan, Hamayun Ahkhtar is its franchisee who has a strong political support from a
political party which is in opposition. In; their era in government less taxes are imposed on them
but relation increases as they come in opposition. So the selection is not appropriate as this thing
is harmful to their image as well as the strategies.
3. Short term Approach:
They have a lack of emphasis on this in their advertising such as currently when they losses the
bid for official drink in the 96 cricket world cup. They started a campaign in which they
highlight the factor such as “nothing official about it”.
4. Weak Distribution:
They lack behind in catering the rural areas and just concentrating in the urban areas.
5. Low consumer knowledge:
Unable to maximize local consumer knowledge.
6. Lack of soft drink:
Lack of soft drink “know-how” as a result of diversified business units and generalist managers
• Marketing Diverse & global awareness May lose focus, may not be segmented enough
• Research& Development Continuous efforts to research trends and reinforce creativity.
May concentrate too much on existing products, intrapreneuralship may not be
welcomed.
OPPORTUNITIES
1. Increase Population:
As almost in all over the world growth rate is increasing which in turn increases the demand of
products and necessities and especially in Asia the market is growing at a faster rate as compare
to other continents. So they have to attract new entrants.
2. Changing social trend:
As in all over the world people are rushing towards fast food and beverage because of life which
has become much faster, it provide the company a favor to capture this fast moving market with
its take away product.
3. Diversification:
They may enter in garments business in order to promote their brand mane, by making sports
cloths fro players which represent their name by wearing their clothes.
4. Distribution of snack foods:
Opportunity to distribute Pepsi snack foods in the future.
• Competitive Distinctive name, product and packaging in with regards to its markets. Not
entirely patentable, constant attack by competitors.
THREATS
1. Imitators:
They also have a problem of imitators as receives complaints from customers that they find take
product in disguised of Pepsi’s product.
2. Government Regulation:
They face problem if government employ taxes on them which force them to raise the price of
their product.
3. Corporation’s shortage problem:
Again this is also a serious threat from it suppliers as if supplier is unhappy with the company.
He may reduce the supply and exploit the company. This action will surely affect the production
process.
4. Non-carbonated substitutes:
Non-carbonated substitutes, such as juices and tea brands are maintaining a strong foothold in
the market.
5. Political instability:
The big threat to Pepsi in Pakistan is Political instability and civil unrest.
6. Threat of labor strikes:
External threat of labor strikes and power outages in Pakistan.
Economic Consumer income is moderate, more tend to eat out, convenience is important to
consumers. Very elastic demand, almost pure competition.
Legal/ Regulatory Opportunity to win hearts through social responsibility Opposite is also
possible
SWOT MATRIX (TOWS MATRIX)
What is a SWOT Matrix (TOWS Matrix)?

The SWOT Matrix illustrates how management can match the opportunity by facing your
institution with its own strength and weekness to yield four sets of possible strategic
alternatives. The SWOT Matrix framework lends itself to brainstorming to create alternative
strategies that you might not otherwise consider.
How to Perform a SWOT Matrix (TOWS Matrix)?
A firm should not necessarily pursue the more lucrative opportunities. Rather, it may have a
better chance at developing a competitive advantage by identifying a fit between the firm's
strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in
order to prepare itself to pursue a compelling opportunity.
To develop strategies that take into account the SWOT profile, a matrix of these factors can be
constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below:
SWOT / TOWS Matrix
Strengths
Weaknesses
Opportunities
S-O strategies
W-O strategies
Threats
S-T strategies
W-T strategies
Basically four main strategies are proposed:

• S-O strategies pursue opportunities that are a good fit to the companies’ strengths.
These strategies are based on institutional strengths to take advantage of market
opportunities.
• W-O strategies overcome weaknesses to pursue opportunities. These strategies are
based on overcoming institutional weaknesses to take advantage of market opportunities.
• S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability
to external threats. These strategies are based on institutional strengths to avoid market
threats.
• W-T strategies establish a defensive plan to prevent the firm's weaknesses from making
it highly susceptible to external threats. These strategies are based on
overcoming/minimizing institutional weaknesses to avoid market threats.
TOWS MATRIX OF PEPSI
We have discussed SWOT analysis of Pepsi-Co in our previous topic now here we are going to
discuss the TOWS Matrix of Pepsi-Co, keeping in mind its SWOT analysis. Following is the
detailed analysis of Pepsi-Cola TOWS matrix:
‘WT’ ANALYSIS
• One weakness that Pepsi posses is that it has very strong taste it really feels that
something highly toxic going inside the body, where as the same product of the coke is
not much strong.
• They also have a problem of imitators as receives complaints from customers that they
find take product in disguised of Pepsi’s product. During the last years, it was published
in financial post that there has been big complaints from the customers with regard to the
bad taste that they experienced during the span of six months. If they soon pay no
attention towards that this will create a big problem for them.
• Large size may lead to conflicting interests.
• New one calorie products have no existing customer base; generic brands can make
similar drinks – cheaper. It is also big threat for any company people may like or dislike
new launching product.
• Such as in Pakistan, Hamayun Ahkhtar is its franchisee who has a strong political
support from a political party which is in opposition. In; their era in government less
taxes are imposed on them but relation increases as they come in opposition. So the
selection is not appropriate as this thing is harmful to their image as well as the
strategies. So this may become a big threat for the Pepsi.
‘WO’ ANALYSIS
• They have a lack of emphasis on this in their advertising such as currently when they
losses the bid for official drink in the 96 cricket world cup. They started a campaign in
which they highlight the factor such as “nothing official about it”. If they don’t focus on
sudden changing’s in their advertising then they can convert this weakness into
opportunity.
• They lack behind in catering the rural areas and just concentrating in the urban areas.
They should try to increase their distributions and also focus on capturing rural areas;
this will become a big opportunity for them.
• The other big weakness on Pepsi is that they don’t pay any attention towards garments.
They may enter in garments business in order to promote their brand name, by making
sports cloths fro players which represent their name by wearing their clothes. That must
increase the customer and income of the Pepsi.
• High expenses may have trouble balancing cash-flows of such a large operation. The
staff may show dishonesty. They should try to pay much attention towards their cash
flow, and audit there statements on regular basis.
‘ST’ ANALYSIS
• In many countries Pepsi had more expensive products than Coke; such a high price may
limit a lower income family from buying a Pepsi product, therefore which is a big threat
for Pepsi that may Pepsi have to face in the future.
• In foreign countries Pepsi have many branches with different flavors as compare to
Pakistan, which has only 2 or 3 Pepsi products. Non-carbonated substitutes, such as
juices and tea brands are maintaining a strong foothold in the market. Pepsi has a big
threat from COKE, which are its main competitor from about 100 years.
• Pepsi is a foreign company therefore they have a big threat every time on them of
Political instability and civil unrest.
• The whole culture and business operating environment at Pepsi-Cola-West Asia has
quick access to a centralized database and they use computers as business tools for
analysis and quick decision making. Computer breakdowns, viruses and hackers can
reduce efficiency, and must constantly update products or other competitors will be more
advanced.
• Continuous efforts to research trends an reinforce creativity, if they fail in their efforts
then there is a big threat for the company. The competitors may get benefit by their
plans.
‘SO’ ANALYSIS
• The whole culture and business operating environment at Pepsi-Cola-West Asia has
quick access to a centralized database and they use computers as business tools for
analysis and quick decision making. Internet promotion such as banner ads and keywords
can increase their sales, and more computerized manufacturing and ordering processes
can increase their efficiency and that will become such a big opportunity for Pepsi.
• It has the highest production capacity i.e. 60,000 cases per day is not only in Pakistan but
also in South Asia. Established network of 45 distributors each supplying 1,100 retailers.
High per capita soft drink consumption – average of 22 servings compared to 5 for
Pakistan. At will become such a big opportunity. Due to large production the product of
Pepsi is always available in the market and that will become useful to attract taste lovers
customers.
• Large No. of diversity businesses is also its main strength as it ahs diversity in many
businesses such as Pepsi beverages, Pepsi foods, Pepsi Restaurants, and due to large
number of diversity they can capture more customer, therefore it will become such a big
opportunity for Pepsi.
• Pepsi is also a reputable organization, and is well known all over the world. Perception
of producing a high quality product and strength can become a big opportunity for Pepsi
if they use it in well arranged manner, such as advertising more and also by conducting
concerts to attract more customers.
• They maintain a high quality as Pepsi Cola International collect sample from its different
production facilities and send them for lab test in Tokyo, if they show test reports on
label of there products this will also attract customers.
• They mainly use celebrities in their advertising campaigning like Imran Khan, Wasim
Akram, and Waqar Younas etc. Also sponsor social activates programmed like music
etc. this will become such a big opportunity to build such a large number of customers.
So we can say that it is one of the big strength that may become a big opportunity for
Pepsi.
Pepsi-cola are to keep advertising as much as possible, and keep coming up with diversified
range of products so as to penetrate more and more in the industry. Keep their business to
franchise system only so as to save as much taxes as possible and use the saved money on
advertisements.
PepsiCo’s Five Forces analysis
Food and beverage industries are saturated which means that the barriers to entry are low. There
are usually only two ways to compete in these industries. One is by being low cost and the other
is by being high quality. This makes profit margins incredibly thin. So naturally when barriers to
entry are low there will be a lot of competitors. I would also say that substitutes would also be
high around the board for food and beverage industry. When there are lots of competitors
customers can easily switch to another product. however if one product is superior and maybe
even a little addictive then customers may demand that product and their power will be less.
Suppliers in food and beverage is a dime a dozen. This is because they are supplying
commodities, very general unspecialized goods that can be found locally and internationally
very easily. So switching suppliers is very easy. However if the ingredient in one of the
industries was rare bohemian shrimp that could only be found in the baltic sea which was
monopolized by a single company then suddenly the supplier has much more power.
Something else to consider is complements, Michael Porter allegedly added this force years
later. Something like Cheetos and Pepsi go well together, when someone buys cheetos they buy
pepsi. Things like this can give a specific product in an industry a competitive edge over the
competition. Especially when the industry can only compete on price and quality rather than
differentiation.
Competitors lots
Substitutes tons
Barriers to entry Easy to enter, hard to compete
Customer power strong
Supplier power low
CONSUMER ANALYSIS
CONSUMER BUYING PROCESS
MARKETING STIMULI
PRODUCT: bottles,juices,lays etc
PRICE: Competitive pricing for its products.
PLACE: Franchises are placed in all major cities.
PROMOTION: Focus on promotion of its products and meals regularly.
P: Political factors in country e.g. pressure groups.
E: Economic infrastructure
S: Socio cultural impact
T: use of technology in developing innovative products and process.

CONSUMER PSYCHOLOGY
Perception: How consumer perceive the products offered by Pepsi
Learning: what its customers learn from previous experience or by the experience
of other customers.
Motivation: It means how customers are motivated. From time to time Pepsi
changes it motivational slogans for customers.
Characteristic such as cultural, social, psychological and physiological plays a vital

role in this regard.
BUYING DECISION PROCESS

Problem recognition
In this case process starts when a consumer feel the hunger and want some kind of
fast food.
Information search
Old users will skip this step, where as new users will search about what products
are offered by which fast food chain.
Evaluation of alternatives
Consumer then evaluate the alternatives may be on basis of price or quality or

availability.
Purchase decision
Finally he will decide and make a purchase decision.
RESULT
PURCHASE DECISION
Product choice
Consumer will choose product.
Dealer choice.
Purchase timings
Means at which time consumer will go to purchase morning evening ,depend upon
the time he feel hunger.
Purchase amount
It is also a key factor in choosing the product if consumer having few money he will
mostly go for the happy menu.
BCG Matrix of Pepsi

Beverages
=2.66%
11261− 10961
10961
2008 2009 Growth Rate
Coke =48.5 =48.57 =2.6

5465 5324 5465− 5324
11261 10961 5324
3 4
Pepsi =43.4 =43.83 =1.8

4893 4805 4893− 4805
11261 10961 4805
5 3
Amrat =8.01 =7.59 =8.53

903 832 903− 832
11261 10961 832
Relative Market share
2008 2009 2008 2009

Coke/ =1.10 =1.11 Coke/Amrat =6. =6.
Pepsi 48.57 48.53 48.53 48.57
43.83 43.45 8.01 7.59
05 39
Pepsi/ =0.89 =0.90 Amrat/Coke =0. =0.
Coke 43.45 43.83 7.59 8.01
48.53 48.57 48.57 48.53
15 16
Growth Rates
coke 2.64% Pepsi 1.83% Amrat 8.53%
Water
=4.54%
18729− 17914
17914
2008 2009 Growth Rate
Aquafina =3.14 =2.61 =-12.9

563 490 490 − 563
17914 18729 563
nestle =76.8 =78.78 =7.

13769 14756 14756− 13767
17914 18729 13767
5 18
Kinley =17.8 =16.54 =-

3194 3099 3099− 3194
17914 18729 3194
2 2.97
Abe-hyat =2.17 =2.05 =-1.53

390 384 384 − 390
17914 18729 390
2008 2009 2008 2009
Nestle/kinl =4.31 =4.76 Nestle/Abe- =35. =38.

ey 76.85 78.78 hyat 76.85 78.78
17.82 16.54 2.17 2.05
41 42
Kinley/Nes =0.23 =0.20 Abe-hyat / =0.0 =0.0
tle 17.82 16.54 Nestle 2.17 2.05
76.85 78.78 76.85 78.78
2 2
aquafina 0.04 0.03
Growth Rates
Aquafina -12.95% Nestle 7.18% kinley -2.97%
Abehyat -1.53%
Juices(Tropican)
2008 2009 Growth Rate 2008 2009
Pepsi =18.41 =17.37 =17.64 =0.2 =0.2

510 600 600 − 510 18.41 17.37
2770 3453 510 81.51 82.62
2 1
nestle =81.5 =82.62 =26.2 =4.4 =4.7
2260 2853 2853− 2260 81.51 82.62
2770 3453 2260 18.41 17.37
3 2 5
Growth Rates
Pepsi( 17.64% Nestle(juices) 26.23

Tropic
ana)
=24.65%
3453− 2770
2770
Industry growth Rate

2008 2009
=5.68%
31645 33443
33443− 31645
31645
Sales
Baverages juices
2008 2009 2008 2009
pepsi 4805 4893 pepsi 510 600

Coke 5324 5465 Nestle 2260 2853
Amratcola 832 903 Total 2770 3453
Total 10961 11261
Water
2008 2009 All sales are in millions and guessed

near to original data
Aquafina 563 490
Nestle 13767 14756
Kinley 3194 3099
Abehyat 390 384
Total 17914 384

Marketing Ratios of Pepsi

1) 4)
operatingprofit Productioncost
asset employed Avg daily sale
2008= =19.3 2008= =134.52

6959 15941
35994 118.5
2009= =20.2 2009= =127.40

8044 15089
39848 118.43
Best performance=2009 Best performance=2009
2)
operatingprofit 5)
Sales revenue Distribution of marketingcost
Avg dailysale
2008= =1608
6959 2008= =133.98
43251 15877
1185
2009= =0.186
8044 2009= =126.87
43232 15026
Best performance=2008 118.43
Best performance=2009
3)
Asset employed 6)
Avg dailysale Current Asset
Avg dailysale
2008= =134.52
35994 2008= =9118
118.5 10806
1185
2009= =127.40
Customer’s Buying Behavior for

PEPSI
Pepsi Co. a world leader in convenient snacks, foods, and
beverages is a $35 billion company. Some of the popular brands like
Pepsi-Cola, Mountain Dew, Diet Pepsi, Lays, Doritos, Tropicana,
Gatorade, and Quaker Oats are owned by the company. The company
saw a change of preference in it's consumers in the 1990's apart from
this the beverage industry also observed a rise in functional drinks in
the mid 2000s. The case focuses on the Pepsi's strategy to address
this change in the consumer behaviour.
It is possible to identify several types of buying decision and

hence several types of buying behavior. The most obvious distinction
to make is based on the expense, complexity, risk and opportunity
cost of the purchase decision.
We would basically be judging the customer loyalty towards a

particular brand by having availability as a factor.
For this we have different types of consumer products they are

mainly three those are
1. Convenience goods
2. Shopping goods
3. Specialty goods
Pepsi has divided its market in many ways
➢ demographically,
➢ geographically,
➢ psycho graphically
➢ behaviorally
 Geographic
Region Asia
Climate Hot and dry
Target area Domestic users, Restaurants, Bars, School and College

canteens
Country Pakistan
City All Major city of Pakistan
 Demographic
Age 14 to 30
Gender Male and Female
Family size no bar
Family lifecycle Unmarried, married
Income 5000+
Education School, College, universities
Occupation For Middle class to Upper Class
Nationality Pakistani
 Psychographic
Social class Middle Class and Upper Class
Pepsi attempts to capture the youth of today by focusing on their

personality, lifestyle and attitude of youth through advertisement
 Behavioral
Occasions Parties, Birthdays, Sports and regular occasions
Benefits Quality and taste
Loyalty status Strong
Readiness stage Aware, Interested.
In case of Pakistan before going into the detail we must need to

have a look about the social classes as well because with the income
levels and purchasing powers of the people here also causes variations
among the types of products.
Pepsi is cheaper for every class peoples because everyone can

afford its price so Pepsi is Convenience goods for all. Peoples drink
pepsi every day because it is
Convenience good and also children’s take lays mostly. Adults

and children play an important role in the buying process. Reasons
such as cleanliness, convenience, family outings and celebration of
special occasions are considered important in buying fast foods.
In this step we will also the social factors as well while making
decisions about customers’ behaviors.
For Upper Class:

We will put Pepsi into habitual buying behavior quadrant because

this class doesn’t usually think much about drinking Pepsi because the
involvement in terms of resources low they put very few time to think
about drinking Pepsi. They drink Pepsi on may be daily basis or on
alternate days.
For Middle Class:
We will put Pepsi into habitual buying behavior quadrant because

this class doesn’t usually think much about drinking Pepsi because the
involvement in terms of resources low they put very few time to think
about drinking Pepsi. They drink Pepsi on may be daily basis or on
alternate days.
For Lower Class:
Pepsi customers are mostly young group between the age of 14-30
and also targeted at school, colleges, universities, homes, restaurants,
hotel and stores.
pepsiCo's target market can be people of all ages because of their

wide range of products: they include gatorade, lays, tropicana, and
quacker, and their products are classified under many catagories.
Their target market is very diverse.
C0mpetitive stance: Major competitor is Coca-Cola and subway: Coca-

Cola has strong competitive stance in the market when we talk about
the capabilities competencies, they have very good brand image along
with the strong supply side with the latest technology.
Price level is almost same for Coca-Cola and Pepsi but Subway charge
more prices then these two
Pepsi prices its products similar to those of Coca-Cola in order to keep

profits high.
ANALYSIS OF COMPETITION
Comparative assessment
Rating scale 1 = very weak
10 =very strong
Products coca cola Amrat
Pepsi subways
Product design 8 7 8
6
Product quality 9 8 8
8
Product performance 8 8 9
5
Breath of product line 7 8 8
7
Depth of product line 7 7 8
7
Advertising 7 5 8
4
Image and reputation 8 6 8
8
Price 8 8 9
8
Selling and distribution
Sales force calibr 8 7 8
7
Sales force experience/knowledge 8 7 9
7
Geographical coverage 9 7 8
5
Home delivery 8 7 9
7
Service
Customer service level 7 7 8
7
Performance against promise 8 7 8
8
COMPARISON OF PRICES
PEPSICO PRICE(RS) COMPETITORS PRODUCTS

PRODUCTS PRICE(RS)
Pepsi 250ml 14 Coke 250ml 14
Pepsi 500ml 28/30 Coke 500ml 28/30
Pepsi 1 liter 30 Coke 1 liter 30
Pepsi 1.5 liter 55 Coke 1.5 liter 55
Pepsi jumbo 70 Coke jumbo 70
Coke vs. Pepsi: Battle of the Brands

Coca Cola has a larger market share compare to Pepsi. Pepsi is losing out, that is
the reason why they created a diversified portfolio of brands such as Ocean Spray,
Mountain Dew, Tropicana and others.
Brand recognition:
Brand recognition of Pepsi & Subway is as good as coca cola is in the
international market but it also varies from country to country but in
Pakistan coca cola is the stronger among the three. Hence it also leads
somehow to pure oligopoly.
Distribution network, Promotion and Public relations,
Financial stability, Technological skills
All the above factors of competitors are strong in nature, and all these also
lead towards the category of pure competition.
Strategic Focus:
Here strategic focus of the competitors of the Pepsi does vary from it. Pepsi
long term strategy is to capture as much market and also increase the
market growth as it can in the coming years in order to enhance the number
of its customers but the strategic focus of the coca cola is mainly to increase
the market growth.
Market Prospective of Competition

Coke is the market challenger while Pepsi is the market leader However
other international and local brands which includes imported energy drinks,
syrups, juices and Pakola whole family which contributes to just 12% of the
total beverage industry. We can easily measure the impact of changing in
the strategy of KFC on others e.g. Mc Donald’s & Subway. Pepsi have to
struggled hard because it comes in the follower in the market we did not
include subway as the competitor of these both because it lies in the
different category.
Market perspective of Competition:
A pure oligopoly, in which a few firms produce broadly the same commodity
Their best outcome is to cooperate and agree to restrict output to the monopoly
quantity, where price is greater than margical cost, and profit is maximized. A great
example of a duopoly is Coca-Cola and Pepsi Co.
Pepsi is in pure oligopoly
Identifying and evaluating competitors’ strengths and

weaknesses
The keys to Pepsi reaching its goals are to concentrate its resources on growing its
current businesses and acquiring related companies to broaden its product line. An
ongoing battle for market share has existed for over 75 years. Company has tried a
number of strategies to gain a sustainable competitive advantage. These strategies
included:
• Introducing new soft drink products
• Diversification
• Aggressive advertising campaigns
Pepsi must identify and implement the strategy best suited to gain the competitive
advantage in the soft drink industry on a world-wide basis.
Marketing Strategies of Coke:

The Company is guided by six strategic priorities and four principles of citizenship.
Their strategic priorities outline how they seek to create value as they continue to
pursue growth.
Their six strategic priorities are:
• Accelerated soft drink growth, led by the coca cola
• Selectively broaden their family of beverage brand drive to profitable growth
• Growth system profitability and capability together with their bottling partners
• Serve customers with creativity and consistency to generate growth across all
channels
• Direct investment to highest potential area across market
• Drive efficiency and cost effectiveness every where.
Strengths Weaknesses of Coke

Management More structured/formal hierarchy Slow Decision making
Product Line Unique, tastes good, competitive price Low on availability
Marketing Low costs due to outsourcing Low budget for Marketing
Personnel International, diverse positions Possible conflicts due to so many people
Finance High sales revenue, high sale growth, large capital base. High tax
payments
Manufacturing Low costs and liabilities due to self supplying capability Lose control
on inventory control and distribution
Research& Development Continuous efforts to research trends and reinforce
creativity. May concentrate too much on existing products,
Evaluating competitive relationships and analyzing how

organizations compete
Competition
where two or more firms are trying to achieve the same goals and penetrate the same markets
with broadly similar product offers. coca cola, Pepsi and subway lie in this category. They have
same goals market growth etc.
Competitor Responses
The selective competitor, who chooses carefully – and often very strategically – how,
where and with what level of aggression they will respond to any competitive move.
Such an approach is generally based not just on a clear understanding of the relative
value of the organization’s markets, but also on the costs of responding and the like-
lihood of the response proving to be cost-effective.
Pepsi is aware of its competition and know very well about its competitors potential moves in
the market so, we can say that Pepsi is very much selective in choosing its right competitors and
brad image and recognition is very strong.
Aims and Objectives of Company:

➢ To serve in a friendly and fun environment
➢ To be a socially responsible company
➢ To provide good returns to its shareholders
➢ To provide its customers with food of a high standard, quick service and value for money
➢ To be the world's premier consumer products company focused on convenient foods and
beverages.
➢ We seek to produce 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.
➢ At PepsiCo, we're committed to achieving business and financial success while leaving a
positive imprint on society - delivering what we call Performance with Purpose.
Strategic focus in terms of competition

The Tiger Competitor
Being a follower in the market Pepsi always expects a tiger response from its
competitors which is aggressive in nature. It is obvious that when you are a
follower your market leader know that follower want to be a market leader,
because it may destroy the market image and market growth of the leader
by influencing from different strategies.
IDENTIFYING MARKET SEGMENTS & TARGETS

In vals we differentiate on the basis of motivation and resources because
Pepsi lie in the beverages category so we can see the price and quality and
these are all follow in the same category
Consumer Profiling Based on Shopping Habits
Self-indulgent shoppers
These are younger professionals, with no money worries or commitments
and a fondness for the exotic and unusual. They are confident, self-assured
and eager to experiment with a multiplicity of foods.
Unmarried people fall in this category. In order to get out from tension they
go out for shopping. The people goes with friend and shop and eat burgers,
etc
Frenzied Copers
Professionals without much time, or mothers juggling a career and family,

they spend freely but move quickly. They return to the same supermarkets,
especially if they offer crèche facilities and consistent layouts.
These are the people who do not have time to shop and they are single
parent family so they go for ready made solutions and go for fast food
category.
TARGETING AND POSITIONING
Positioning is therefore the process of designing an image and value so

that customers within the target segment understand what the company or
brand stands for in relation to its competitors.
Pepsi had done a lot of efforts in order to come up with one of the strongest
brands in the world. It has included all the possible factors that could help
making a powerful and strong brand position in the mind of its customers. It
has worked over all the factors starting with its product range like Frito-Lay
, Tropicana, Aquafina and Quaker. It has also made its performance
standards and keeping in view its quality while even franchising its
business.. Time to time ads and promotions in papers leaves always a
good impression on the customers and everybody can easily knows about
the promotions and advertisements.
Word of mouth always plays a vital role in order to help your marketing
campaign but that also needs your good service and quality of food and
Pepsi is good at both and word of mouth helps increasing its customers.
Pepsi Pakistan usually uses the print media and local cable channels and TV
in order to support their marketing campaign and they are pretty much
consistent with their marketing efforts and selection of media.
TYPES OF POSITIONING
Primary and secondary benefits
Pepsi is in Primary and secondary benefit positioning because first
benefit is thirst and secondary is we use bottles for other purposes.
Position of pepsi
Soft drinks pepsi cocacola local drinks Macca cola
amrat cola
Juices pulpy nestle Fruite Energy Drinks Red Bull Cott
Target Market for Pepsi

Pepsi customers are mostly young group between the ages of 14 to 30 and also target at
school, collages, universities, homes, restaurant, hotels and stores.
Portfolio Based Strategies

These are four in numbers
• Invest
• Hold
• Harvest
• Divest
Build & invest

We cannot go for hold or divest because we are lying in the strong
competitive position where market strength is very high and industry
attractiveness is very high and competitive position is also very strong.
MARKET SEGMENTATION
Pepsi has divided its market in many ways

➢ demographically,
➢ geographically,
➢ psycho graphically
➢ behaviorally
4 P’s (THE MARKETTING MIX) OF PepsiCo

➢ Products
PepsiCo operates in three major US and international businesses.
➢ Beverages: Pepsi-Cola
Mountain Dew
7up
Mirinda
Teem
➢ Snack Foods:
Lays
Cheetos
Kurkure
➢ Other Products:
Dole juices and juice drinks
Gatorade
Aquafina drinking water
PROMOTIONS
➢ Spends a huge amount on promotions.
➢ Include advertisements sponsorships of sporting events, musical
shows and many more.
➢ Build strong brand equity.
➢ Spends a huge budget on advertisements also.
➢ Some of the entertainment celebrities for advertisements used by
Pepsi are:
Inzamam-ul-Haq
David Beckham
Maradona
Jeff Gordan
Ronaldenio
Roberto Carlos
➢ Slogans
“Ask For More”
“Pepsify Karo Gay”
GE Strategies:
Here we have strong competitive position and high industry attractiveness

so we fall in Invest for growth category
Here we have prospects for sector profitability is average and average

enterprise capabilities. So we fall in Custodial Growth.
Position Based Strategies
Coke is the market challenger while Pepsi is the market leader. These findings are
based on the interviews conducted with the managers of the well known super
stores in the region of Clifton Karachi. However other international and local brands
which includes imported energy drinks, syrups, juices and Pakola whole family
which contributes to just 12% of the total beverage industry. We have to compete
with its strongest competitor coca cola. So we suggest following strategies:
Our recommendations to Pepsi-cola are to
keep advertising as much as possible, and keep coming up with diversified range of
products so as to penetrate more and more in the industry.
Keep their business to franchise system only so as to save as much taxes as

possible and use the saved money on advertisements.
Scorpio Technique
Industry or Market:
When we look at the beverages and Pepsi it is very easy to judge the focus and
orientation of Pepsi it is more likely towards customer and the market. They are
less careful about industry. As the customer has more value for them and they are
constantly putting efforts in the market. They know about the competition and the
competitors in the market. Pepsi is very well aware of the pure oligopoly in the
Market.
MARKET FOCUS
Pepsi has always adopted a market focus approach, come up with need
analysis of customers and product analysis than accordingly it design
products according to taste of the customers.
POSITIONING AND BRANDING

Pepsi has been successful in positioning its self in the mind of consumers and
non consumers as well. Pepsi as a brand is well recognized that’s why the
biggest strength of Pepsi lies in its Brand name. In the mind of teen agers it
has positioned itself as a cool place to hang out with friends where as for the
kids it has positioned fun altogether.
SEGMENTATION AND TARGETING

Pepsi Pakistan has segmented itself, geographically demographically.
• Geographically
Covering almost major cities but has many cities uncovered where
there is need to cater customers and has potential of growth.
• Demographically
Pepsi has also segmented demographically according to age gender of
people.
• Hybrid segmentation
Pepsi use both geographical and demographical segmentation. Across
the Pakistan
Targeting
Pepsi customers are mostly young group between the ages of 14 to 30
and also target at school, collages, universities, homes, restaurant,
hotels and stores.
CUSTOMER RETENTION
The need of day is to retain the customer. as well as to build more customer .
Customer’s retention is more important for fast food chain network because
switching cost is low. so, Pepsi Pakistan should use some strategies for customer
retention like
keep coming up with diversified range of products so as to penetrate more and

more in the industry
OFFERINGS
• Product
New taste or flavor bottle
• Price
Prices should be made more competitive
• Place
Pepsi should start operation in uncovered ares.
• Promotion
Pepsi should advertise its products and offering more efficiently and
use effective medium like news papers, Hoardings Radios TV, .and
should focus on personal selling, also determine the frequency of ads
to occupy a position in customers and non customers about its
products.
ORGANIZATION PROCESS AND CULTULE

Managers to efficiently review the internal process.
Need finances for sake of product development and market

development.

Pepsi Fianl Report Strategic Marketing Management

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Sir Imran qureshi [PEPSI STRATEGIC MANAGEMENT]

Presented To: Sir Imran Qureshi

Presented By: SlinkyCity

Class: MBA-4 (1 year)

Group Members: Jamil Ahmed

INTERNATIONAL ISLAMIC UNIVERSITY

Our beloved teachers & parents, whose blessings

Type Public (NYSE: PEP)

Indra Nooyi- CEO of PepsiCo

June 16, 1903 (as Pepsi-Cola)

Our Mission and Vision

"To be the world's premier consumer products company focussed on convenience

PepsiCo Sustainability Vision

SWOT ANALYSIS OF PEPSI

What is a SWOT Matrix (TOWS Matrix)?

Basically four main strategies are proposed:

PepsiCo’s Five Forces analysis

PRODUCT: bottles,juices,lays etc

PRICE: Competitive pricing for its products.

PLACE: Franchises are placed in all major cities.

PROMOTION: Focus on promotion of its products and meals regularly.

P: Political factors in country e.g. pressure groups.

S: Socio cultural impact

T: use of technology in developing innovative products and process.

Perception: How consumer perceive the products offered by Pepsi

Characteristic such as cultural, social, psychological and physiological plays a vital

BUYING DECISION PROCESS

Consumer then evaluate the alternatives may be on basis of price or quality or

Finally he will decide and make a purchase decision.

BCG Matrix of Pepsi

2008 2009 Growth Rate

Coke =48.5 =48.57 =2.6

Pepsi =43.4 =43.83 =1.8

Amrat =8.01 =7.59 =8.53

Relative Market share

2008 2009 2008 2009

coke 2.64% Pepsi 1.83% Amrat 8.53%

2008 2009 Growth Rate

Aquafina =3.14 =2.61 =-12.9

nestle =76.8 =78.78 =7.

Kinley =17.8 =16.54 =-

Abe-hyat =2.17 =2.05 =-1.53

2008 2009 2008 2009

Nestle/kinl =4.31 =4.76 Nestle/Abe- =35. =38.

Aquafina -12.95% Nestle 7.18% kinley -2.97%

Relative Market share

2008 2009 Growth Rate 2008 2009

Pepsi =18.41 =17.37 =17.64 =0.2 =0.2

Pepsi( 17.64% Nestle(juices) 26.23

Industry growth Rate

2008 2009 2008 2009

pepsi 4805 4893 pepsi 510 600

Coke 5324 5465 Nestle 2260 2853

Amratcola 832 903 Total 2770 3453

Total 10961 11261

2008 2009 All sales are in millions and guessed

Nestle 13767 14756

Kinley 3194 3099

Abehyat 390 384

Total 17914 384

Marketing Ratios of Pepsi

2008= =19.3 2008= =134.52