2ND ASSIGNMENT MBA (HRM)

3RD SEMESTER

ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD

ASSIGNMENT NO.2
ON
BUSINESS POLICY AND STRATEGY (887)

Topic:Strategy Formulation
Submitted by: ASAD HUSSAIN Submitted to: SIR M. ZAHID JAMAL SB. Roll No. Mob No. 508195455. 03335174447.

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ACKNOWLEDGEMENT All praises to Almighty Allah, the most Gracious, the most Beneficent and the most Merciful, who enabled me to complete this assignment. There is always a sense of gratitude one expresses to others for the helpful and needy service they render during all phases of life. I have completed this assignment with the help of different personalities. I wish to express my gratitude towards all of them. It gives me immense pleasure to express my deep regards and sincere sense of gratitude to Mr. Nabeel Ghazi, Administrator, Pepsi Plant, Lahore for his support which helped me throughout my assignment. I would also like to thank my teacher SIR SALEEM JAHANGIR MIRZA for steering my confidence and capability for giving me insight into assignment by giving me exposure to the arena of competitive and real world. Lastly I would like to thank my parents and friends for their constant support during the duration of my assignment.

Thank You One and All ASAD HUSSAIN ROLL NO. 508195455. MBA (HRM).

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EXECUTIVE SUMMARY This assignment is a research-oriented activity, which represents both the theoretical and practical implication of the topic. In the first section of this assignment, I explain the theoretical aspect of the topic and all major parts has been explained which are involved in the Organizational structure shows communication flow in the organization presented through communication models to clarify the information path. We are required to study a communication model for traditional organization in the prospective of total quality management selected by me in total quality management. For empirical study, I select Pepsi Cola Company and compare its ways of Organizational structure and marketing strategies shows its strategy formulation according my topic.

CONTENTS: TITLE PAGE...1 ASAD HUSSAIN Page 3 BUSINESS POLICY AND STRATEGY (887)

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ACKNOWLEDGEMENT...2 EXECUTIVE SUMMARY..3 CONTENTS....... 4 INTRODUCTION TO THE TOPIC....5 WHAT IS OUR BUSINESS...5 REVIEW OF LETRATURE.6 MISSION STATEMENT .....7 THE PROCESS OF PERFORMING AN EXTERNAL AUDIT...8 DATA COLLECTION --- ECONOMIC FORCES... 10 DATA ANALYSIS.... 10

CASE STUDY...... 12

MISSION STATEMENT (PEPSI COLA) ..12 VISION STATEMENT (PEPSI COLA)..13 PEPSI IN PAKISTAN...13 INDUSTRIAL SWOT ANALYSIS....14 SWOT ANALYSIS OF PEPSI COLA..15 CONCLUSIONS ...21 RECOMMENDATION / SUGGESTIONS...21

Introduction What is our Business?

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It is synonymous with asking the question. What is our mission? An ending statement of purpose that distinguished one organization from other similar enterprises. The MISSION STATEMENT is a declaration of an organizations reason for being. Its answer is the pivotal question. What is our business? A clear mission statement is essential for effectively establishing objectives and formulating strategies. Sometimes called creed statement, a statement of purpose, a statement of business principles, a vision statement, or a statement defining our business, a mission statement reveals the long term vision of an organization in terms of what it want to be and whom it want of serve. All organization s have a reason for being, even if strategists have not consciously transformed this into writing. A business mission is the foundation for priorities, strategies, plans and work assignments. It is the starting point for the design of managerial jobs and above all for the design of managerial structures. We can perhaps best understand a business mission by focusing on a business when it is started. In the beginning, a new business is simply a collection of organization can offer some product or serve, to some customers, in some geographic area, using some type of technology, at a profitable price. A new business owner typically believes that the management philosophy of the new enterprise will result in a favourable public image and that this concept of the business can be communicated to and will be adopted by important constituencies. When the set of beliefs about a business at its inception are put into writing, the resulting document mirrors the same basic ideas that compose a mission statement. As a business grows, owners or managers find it necessary to revise the founding set of beliefs, but those original usually are reflected in the revised statement of mission. Business mission statements can often be found in the front of annual reports. Mission statements often are displayed throughout a firms premises, and they are distributed with company information sent to constituencies. A good mission statement describes an organizations purpose, customers, products or services, markets, philosophy and basic technology. Review of Literature A comprehensive Strategy Formulation Framework Important strategy formulation techniques can be integrated into a three stage decision making framework. The tools presented in this framework are applicable to all sizes and types of organizations and can help strategists identify, evaluate and select strategies.
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Stage 1 of the Formulation of Framework It consists of the EFE Matrix, the IFE Matrix and the competitive profile matrix. Called the input stage, stage 1 summarizes the basic input information needed to formulate strategies. Stage 2 It is called the Matching Stage, focuses upon generating feasible alternative strategies by aligning key external and internal factors. Stage 2 techniques include the threats-opportunities-weaknesses-strengths (TOWS) Matrix, the Strategic Position and Action Evaluation (SPACE) Matrix, the Boston Consulting Group (BCG) Matrix, the Internal External (IE) Matrix and the Grand Strategy Matrix. Stage 3 It is called the decision stage and involves a single technique, the Quantitative Strategic Planning Matrix (QSPM). A QSPM uses input information from Stage 1 to objectively evaluate feasible alternative strategies identified in Stage 2. A QSPM reveals the relative attractiveness of alternative strategies and thus provides an objective basis for selecting specific strategies. The importance of a Clear Mission The importance of clear mission statement to effective strategic management is well documented in the literature. A recent study comparing mission statement of fortune 500 firms performing well and firms performing poorly concluded that high performers have more comprehensive mission statements than low performers. King and Cleland recommend that organizations carefully develop a written mission statement for the following reasons. Mission Statement Our Vision is our corporate conscience and helps us to eliminate short term thinking, such as cashing in on demand for our motorcycles by giving quantity precedence over quality or cutting corners recreational or commercial vehicles to save a few dollars per unit. It also encourages every employee in our organization to be acutely aware of his or her role in satisfying our stakeholders. Reaching the fine balance between specificity and generality is difficult to achieve, but is well worth the effort. George Steiner offers the following insight on the need for mission statement to be broad in scope:
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The Nature of an External Audit The purpose of an external audit is to develop a finite list of opportunites that could benefit and threats that should be avoided. As the term finite suggests, the external audit is aimed at developing an exhaustive list of every possible factor that could influence the business. Rather, it is aimed at identifying key factor that could influence the business. Rather, it is aimed at identifying key variables that offer actionable responses. Firms should be able to respond either offensively of defensively to the factors by formulating strategies that take advantage of external opportunities or that minimize the impact of potential threats. Key External Forces External forces can be divided into five broad categories: (1) economic forces. (2) social, cultural, demographic and environmental forces. (3) political, governmental and legal forces, (4) technological forces and (5) competitive forces. Changes in external forces translate into changes in consumer demand for both industrial and consumer products and services. External forces affect the types of products developed, the nature of positioning and market segmentation strategies, the types of services offered and the choice of businesses to acquire or sell. External forces directly affect both suppliers and distributors. Identifying and evaluating external opportunities and threats enables organizations to develop a clear mission, to design strategies to achieve long term objectives and to develop policies to ahieve annual objectives. Some organizations survive solely because they recognize and take advantage of external opportunities. The increasing complexity of business today is evidenced by more countries developing the capacity and will to compete aggressively in world markets. Foreign businesses and countries are willing to learn, adapt, innovate and invent to compete successfully in the marketplace. Most organizations practice some form of external analysis as part of their planning process. Nearly 75% of chieve executive officers of the Fortune 500 companies report that their firms perform external analysis and achieve numerous benefits from doing so. 1 another 16% report that they do not have organized external analysis but probably should. Only 1% report that their firms do not conduct external audits and have no plans to begin. The process of Performing an External Audit The process of performing an external audit must involve as many managers and employees as possible.
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To perform an external audit, a company must first gather competitive intelligence and information about social, cultural, demographic, environmental, economic, political, legal, governmental and technological trends. Individuals can be asked to monitor various sources of information such as key magazines, trade journals and newspapers. These persons can submit periodic scanning reports to a committee fo managers charged with performing the external audit. This approach provides a continuous stream of timely strategic information and involves many individuals in the external audit process. Online databases provide another source for gathering strategic information, as does use of corporate, university and public libraries. Suppliers, distributers, salespersons, customers and competitors represents other sources of vital information. Freund emphasizes that critical success factors hould be (1) important to achieving long terms and annual objective (2) measurable (3) hierarchical in the sense that some will pertain to the overall company and others will be more narrowly focused on functional or divisional areas, a final list of the most important critical success factors should be communicated and distributed widely in the organization. Both opportunities and threats can be critical success factors. Information Technology It has become a powerful tool for conducting and external audit. The quantity and quality of industry and competitive information available to organizations has increased dramatically in recent years. Advanced computer technology, telecommunications, data access and storage devices, fax machines, online databases, graphics and software represent efficient and effective vehicles for identifying and evaluation opportunities and threats. Effective use of the internet as the information superhighway is becoming more and more essential for business success. The World Wide Web (WWW) is a global network available via the internet whereby an individual or firm can place information or advertisements for consumption by others around the world or jut within a corporation. Unlike other cyberspace services, web pages can contain both text and non text items, including should clips, graphics and even movies. Having a Website in cyberspace can allow large savings in paper, copying, phone and postage. The savings in advertising can be even higher. A web browser such as Netscape communications Navigator on the personal computer can allow anyone to look at what is stored on any web server in the world. Getting on the web is quite simple and inexpensive and can be the difference between formulation strategies based on the up-to-date rather than out-ofdate, information. Consultants are readily available to provide assistance. If
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you design your web-pages so well that consumer demand increases for your product or service, you may decide to add to your information and / or advertisements and move them out of your web site and over the internet. Doing this begins to be costly but ht e additional revenue4s may more than offset the costs. With both private and corporate connections to the web proliferating, firms must take for granted that every computer on the planet can reach and interact with almost any other. Security and privacy are becoming more and more of a concern. Linking a firms computer to cyberspace opens it to potentially millions of largely unidentified visitors, some of whom may hae malicious, criminal or otherwise unethical intent. Verification that senders or receivers on the internet are who they say they can be challenge a competitor could bombard your system with false messages and information. The range of products and measure designed to enhance computer security is increasing daily. Software is now available that can generate a new pass-ward every few minutes, encrypt all outgoing messages with secret codes or keystrokes or even block unwanted traffic arriving to your computer from the internet. Given the current rate of development in telecommunications and office technology. Video conferences may become a major substitute for some business air travel soon. What impact will IT have on our industry over the next five to ten years products and services, markets and production economics? The era of the mainframe computer is giving way to a proliferation of affordable microcomputers that are almost as powerful. This trend is creating a new basis for competition in virtually all industries and has generated new buyers, suppliers, products and services. The microcomputer revolution especially represents an opportunity for innovative young companies. Entrenched industrial leaders face more competition than over from small firms using advanced microcomputer technology. Data Collection --- Economic Forces Economic factors have a direct impact on the potential attractiveness of various strategies. For example, if interest rates rise, then funds needed for capital expansion become more costly or unavailable. Also, as interest rates rise, discretionary income declines and the demand for discretionary goods falls. As stock prices increase, the desirability of equity as a source of capital for market development increases. Also, as the market rises, consumer and business wealth expands. Trends in the dollars value have significant and unequal effects on companies in different industries and in different locations. For example, the pharmaceutical, tourism, entertainment, motor vehicle,
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aerospace and forest products industirds benefit greatly with the dollars all against the yen, franc and mark. Agricultural and petroleum industries are hurt by the dollars rise against the currencies of Maxico, Brazile, Venezuel and Australia, social, cultural, demographic and environmental changes have a major impact upon virtually all products, services, markets and customers. Small, large, fox profit and nonprofit organizations in all industries are being staggered and challenged by the opportunities and threats arising from changes in social, cultural, demographic and environmental variables. Social, cultural, demographic and environmental trends are shaping the way Americans live, work, produce and consume. New trends are creating a different type of consumer and consequently, a need for different products. Data Analysis The Internal Factor Evaluation (IFE) Matrix This strategy-formulation tool summarizes and evaluates the major strengths and weaknesses in the functional areas of a business and it also provides a basis for identifying and evaluating relationships among those areas. Intuitive judgments are required in developing an IFE Matrix, so the appearance of a scientific approach should not be interpreted to mean this is an all powerful technique. A thorough understanding of the factors included is more important than the actual numbers. IFE Matrix can be developed in Five Steps:1. List critical success factors aas identified in the internet audit process. Use a total of from 10 to 20 internal factors, including both strengths and weaknesses. List strengths first and then weaknesses. Be as specific as possible, sung percentage, rations and comparative numbers. Assign a weight that ranges from 0.0 (not important) to 1.0 (all important) to each factor. The weight assigned total given factor indicates the relative importance of the factor to being successful in the firms industry. Regardless of whether a key factor is an internal strength or weakness, factors considered to have the greatest effect on organizational performance should be assigned the highest weights. The summation of all weights must total 1.0.
2.

3. Assign a 1 to 4 rating to each factor to indicate whether that factor represents a major weakness (rating 1), a minor weakness (rating 2), a minor strength (rating 3) or a major strength (rating 4). Rating are thus company based, whereas the weights in step 2 are industry based.
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4. Multiply each factors weight by its rating to determine a weighted score for each variable 5. Sum the weighted scores for each variable to determine the total weighted score for organization. When a key internal factor is both strength and weakness, the factor should be included twice in the IFE Matrix and a weight and rating should be assigned to each statement.

Case Study

Company Description / Introduction PepsiCo, Inc. is among the most successful consumer products companies in the world, with 1999 revenues of over $20 billion and 116,000 employees. The company consists of: Frito-Lay Company, the largest manufacturer and distributor of snack chips; Pepsi-Cola Company, the second largest soft drink business and Tropicana Products, the largest marketer and producer of branded juice. PepsiCo brands are among the best known and most respected in the world and are available in about 190 countries and territories. Some of PepsiCo's brand names are 100 years old, but the corporation is relatively young. PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998. PepsiCo's success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of their people. Their overriding objective is to increase the value of their
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shareholders' investment through integrated operating, investing and financing activities. Their strategy is to concentrate their resources on growing their businesses, both through internal growth and carefully selected acquisitions. Their strategy is continually fine-tuned to address the opportunities and risks of the global marketplace. The corporation's success reflects their continuing commitment to growth and a focus on those businesses where they can drive their own growth and create opportunities. 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 "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." Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company. PEPSI IN PAKISTAN The market in Pakistan is surely dominated by Pepsi. It has proves itself to be the No.1 soft drink in Pakistan. Now days Pepsi is recognized as Pakistanis National drink. In 1971, first plant of Pepsi was constructed in Multan, and from their after Pepsi is going higher and higher. Pepsi is the choice soft drink of every one. It is consumed by all age groups because of its distinctive taste. Compared with other Cola in the market, it is a bit sweeter and it contributes greatly to its liking by all. Consumers survey results explain the same outcome and Pepsi has been declared as the most wanted soft drink of Pakistan.
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Pepsi's greatest rival is Coca Cola. Coca Cola has an international recognized brand. Cokes basic strength is its brand name. But Pepsi with its aggressive marketing planning and quick diversification in creating and promoting new ideas and product packaging, is successfully maintaining is No.1 position in Pakistan. In coming future Pepsi is also planning to enter into the field of fruit drinks. For this purpose it has test marketed its mango juice in Karachi for the first time. When Pepsi was introduced in Pakistan, it faced fierce competition with 7up, lemon and lime drinks, which was established during 1968, in Multan. Pepsi introduced its lemon and lime, "Teem" to compete with 7up. It successfully, after some years, took over 7up, and this enhanced Pepsi's profits and market share. In Pakistan, Pepsi with 7up enjoys 70% of the market share where as the coke just has 20% markets share. 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. Pepsi also launched its fast food chain KFC i.e. "Kentucky Fried Chicken. The Data Collection --- Industrial SWOT Analysis Strengths: The soft drinks market in Pakistan enjoyed dynamic growth over the review period in both volume and current value terms. Carbonates dominate the market in both the on-trade and off-trade with the lion's share of sales. Carbonates have become part of the culture in Pakistan and multinational companies have maintained their standards over the years to provide consumers with high-quality carbonated drinks. Off-trade sales of carbonates are higher than those of the on-trade but both achieved strong growth over the review period Weaknesses: Liquid concentrates and powder concentrates are both seasonal categories in the market and their sales peak in the summer in Pakistan. Both Rooh Afza and Jam-e-Shirin are traditional sandalwood drinks in Pakistan which are highly regarded by consumers. These drinks can be found in every home in Pakistan, especially in rural areas, throughout the summer and are the mainstay of liquid concentrates Opportunities:
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The government of Pakistan has reduced excise taxes to encourage soft drinks manufacturers and importers. The government also reduced other applicable taxes to promise more profits not only for soft drinks manufacturers already in the market but also to attract potential soft drinks manufacturers to invest in Pakistan. Tax reductions proved extremely beneficial to the soft drinks market in Pakistan and certainly encouraged and attracted multinational companies to invest in the country's soft drinks industry. The government also decided to tax the beverage industry on capacity of production rather than on actual production and that brave move encouraged soft drinks manufacturers to maximize production and reduce prices Threats: Increasing health and hygiene awareness among Pakistanis has greatly increased sales of fruit/vegetable juice products. Both the government and the media have started health awareness campaigns to make Pakistanis realize that consumption of fruit/vegetable juice is as essential as eating food. Fruit/vegetable juices are doing very well in both urban and rural areas. On the other hand, health and hygiene awareness has also led to increased sales of bottled water in Pakistan. Previously bottled water was targeted only at major cities where consumers are more health-conscious and aware of the difference between bottled water and tap water. Nowadays, health-conscious rural inhabitants also drink bottled water due to health concerns. 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.
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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.
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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. 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.

COMPETITOR: He is the person who is selling the same type of product in the market. The marketing concept states that to be successful, a company must provide greater customer value and satisfaction than its competitors do.

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Pepsi has a tough competition with Coca Cola while it faces a little competition with the local producers like RC Cola, Shandi Cola etc. The local producers hardly affect the sales of Pepsi in the market. DISTRIBUTOR: Distributor maintains the image of the product and the sales in the market. If items are not properly placed by the distributor, it will disperse the market.

CHANNELS OF DISTRIBUTION The Pepsi uses the following two channels for the distribution of their products. Indirect Distribution Indirect distribution involves agency holders e.g. Riaz Bottlers Pvt. Ltd. Lahore franchise has divided its region i.e. Lahore and Kasur districts in two categories. Local Zone These are 62 agencies distributing Pepsi Products (250ml Sd) only around Lahore in their respective allocated sub zones. Out Station Zone 17 dealers have been appointed by the bottlers for far distant places and in out skirts of Lahore and Kasur the dealers involved in direct distribution are only authorized to sell 250 ml (STD) bottle of Pepsi, Team and Marinda. Direct Distribution The factory vehicles operate on 45 direct routes in Lahore selling nonreturnable bottles Litter, Pet and Can. PRE-MARKETING MIX SEGMENTATION
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It means that you divide the target market in to different groups. Market consists of buyers and buyers differ in one or more ways. They may differ in wants, resources, locations and buying practices. Through market segmentation companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs. Segmentation is done on basis of the previously mentioned external factors and the following: Behavioral Base It is how people perceive a specific product, in short psychological analysis of a product. Pepsi all over the world is recognized as a quality drink and therefore people drink it without any hesitation whenever they are thirsty or otherwise. So marketers of Pepsi have made it a drink for all people and for diabetic people they introduced diet Pepsi. Cognitive Base It pushes and pulls the consumer. If the outlook of Pepsi bottle is desirable and it attracts the consumer, he will buy it even if he isnt thirsty. TARGET MARKET The market which is focused by the producer is called the target market. Targeting is to focus on the target market to attract the customers. CHARACTERISTICS OF TARGET MARKET The target market should have some following features. Accessible It means that the target market which is focused should be accessible or easily approachable. Substantial The target Market should be substantial. It should have a specific size where strategies can be made and implemented.

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Measurable One should be able to measure the demand in the market. Comparable The producer should identify that needs of different customers are different. Profitable The target market should be profitable for the producer. MARKETING STRATEGIES There are different marketing strategies which are applied in targeting. Some of these strategies which Pepsi follows are discussed below: Mass Marketing Big firms or companies say that everyone is their buyer whether they belong to rural or urban area, big or small country, rich or poor, adults and small children etc. Pepsi is mostly used by the young generation but it claims that it is moving towards mass marketing. POSITIONING STRATEGY It means that you try to give image to your product in the mind of the customers. To give a true and positive picture of the product is the best positioning. The company should promote its good points or comparative advantage which it has over its competitors Strategy Implementation In Pakistan Pepsi is the most liked soft drink especially by young generation so the Pepsi cola company has devised such marketing strategy which attracted them. For this reason they started monitoring the habits of the generation. What they saw was that the students were crazy about cricket and usually liked to idealize them so in order to increase their sales the Pepsi cola company paid high amounts of money to the cricketers to act as their spokes men. Some of the most famous cricketers in the modern era have acted as spoke persons also film stars have been acting as spoke persons.
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The Pepsi cola company has after doing research also has introduced different size of bottles offered at lower prices so that every one can afford them. Also Pepsi Company has introduced other soft drinks including mountain dew, seven up and marinda. Pepsi company has introduced other flavors such as Pepsi twist, Pepsi max diet Pepsi. Pepsi Cola Company has also become official sponsors of Pakistan cricket and has sponsored a number of series. Also Pepsi has donated a lot to the earth quake victims and has launched a number of prize schemes to attract new customers 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 Amrit Cola, Quibla Cola offered at lower prices but none of these drinks have been able replace it. 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. RECOMMENDATION / 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 ones 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
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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 ones 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 competitors 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.

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