1. PEPSI COLA
Marketing Research Report
6/8/2013

2. | Prof: ShehzadAlam
PEPSICO
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SUBMITTED BY:
GROUP: C
Areeba Imran L1S12BBAM2018
Imran Khan L1S12BBAM2104
Bilawal Ahmed Saeed L1F11BBAM0033
Hamza Shahid L1S12BBAM2026
Abdullah Tahir L1S12BBAM0047
Syeda Attiya Zehra
Section: A
SUBMITTED TO:
Prof: Shehzad Alam

3. | Prof: ShehzadAlam
PEPSICO
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Acknowledgement
We are thankful to almighty ALLAH who gave us the ability and the strength for
working on this project and gain tremendous knowledge. We would also like to
thank our instructor Prof. Shehzad Alam who has been an influential figure for us
throughout the project and has helped us with all the problems we encountered.

4. | Prof: ShehzadAlam
PEPSICO
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Table of Contents
1. Summary 4
2. History 5
3. Pepsi History 6
4. Co. Objectives 7
5. Mission and 6. Vision 8,9
7. Marketing Mix 10
7.1 Product 10
7.2Pricing 10
7.3 Placement 11
7.4 Promotions 11
8. Ramadan Strategy 12
9. Boston Analysis 13
10. Product Life Cycle 14
11. Product Intro 15
11.1 Growth 16
11.2Maturity 16
11.3 Decline 16
12. Swat 17
13 Recommendation 18
14. Conclusion 19

5. | Prof: ShehzadAlam
PEPSICO
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1. Summary
Our project is based on Pepsi Cola a productof PepsiCo. Our main focus writing
this report is the marketing strategy and plans of the company regarding Pepsi
Cola. This also includes the productlife cycle curve and shows where our product
lies according to the Bostonconsulting group matrix. The SWOT analysis of the
company and the recommendations has also been provided.

6. | Prof: ShehzadAlam
PEPSICO
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1. History
In 1902, Bradham launched the Pepsi-Cola Company in the backroom of his
pharmacy and on December 24, 1902 the Pepsi-Cola Company was incorporated in
the state of North Carolina. The business began to grow, and on June 16, 1903
“Pepsi-Cola” was officially registered with the U.S. Patent office. At first, he
mixed the syrup himself and sold it exclusively through soda fountain. That first
year, Bradham sold 7,968 gallons of syrup, using the theme line “Exhilarating,
Invigorating, Aids Digestion.” He also expanded his operation by opening a second
Drug Store at the corner of Middle and Broad streets. Caleb soon recognized that a
greater opportunity existed to bottle Pepsi so that people could drink it anywhere.
In 1905, Bradham began selling Pepsi-Cola in six ounce bottles and awarded two
franchises to Charlotte and Durham, North Carolina. The following year, 15
franchises were awarded, with another 40 by 1907. In 1910 there were 250
franchises in 24 states and in January of that year the Pepsi Cola Company held
their first Bottler Convention in New Bern.
2.

7. | Prof: ShehzadAlam
PEPSICO
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2. Pepsi History in Pakistan
1979 PepsiCola International offered the PepsiFranchise to Pakistan Beverage
Limited, the Bottlers of Pakola Brands of Beverage in different flavors.
Within 5 years of acquiring the PepsiFranchise, Pakistan Beverage Limited
succeeded in replicating its previous business success in the beverage market by
becoming the market leader in softdrinks in Karachi and then later in Hyderabad.
The dynamic partnership which was created in 1917 between Pakistan Beverage
Limited (PBL) and PepsiCola International, indeed, is a force to reckon with in the
market which stands true till this day
This great success gradually trickled down to other cities of Pakistan in the south
and north, over a period of time, making Pepsiand its brands the most popular
drink in the country.
Today, with almost 60acres of accumulative area under manufacturing and
warehousing, Pakistan Beverage Limited is one of the most well equipped and well
managed PepsiCola bottling plant among all Pepsifranchises across the country.
Pakistan Beverage Limited currently consists of 5 manufacturing sites which
includes the Karachi sites, Yasir Fruit Juice, Hyderabad Plant, Quetta Plant and the
Aquafina site.

8. | Prof: ShehzadAlam
PEPSICO
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3. Company’s Objectives
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. Our approachto superior financial performance is straightforward - drive
shareholder value. By addressing social and environmental issues, we also deliver
on our purposeagenda, which consists of human, environmental, and talent
sustainability.

9. | Prof: ShehzadAlam
PEPSICO
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4. Our Mission
Our mission is to be the world's premier consumer Products Company focused on
convenient foods and beverages. We seek to producefinancial 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.

10. | Prof: ShehzadAlam
PEPSICO
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5. Our 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."
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.

11. | Prof: ShehzadAlam
PEPSICO
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6. The Marketing Mix
7.1 Product
 STBs
 7 bottlers across the country
 Pakistan bottlers in
Karachi
 Raiz bottlers in lahore
 Shelf life of product6
months
7.2 Pricing:
 Different focus groups
 Different research methods
 The pricing is consumer driven
 We have a planning team
 Our pricing depends on the price of raw
material
 We keep distribution margin
 We have set a specific profitability margin

12. | Prof: ShehzadAlam
PEPSICO
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7.3 Promotion:
 We have a brand
footprint.
 Brand pyramid
 Different matters of
insights
 Consumer driven
 There are two types of promotion strategies
 Thematic: by association with big names
E.g. our association with Champions Trophy
 Tactical: by keeping in mind different facts and figures
E.g. if there is inflation we change to a particular price pack
 Regular TV commercials
 For brand building, cars and trucks of company are the main source of
advertisement
 AnMs
 UTC

13. | Prof: ShehzadAlam
PEPSICO
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7.4 Placement:
 Multiple distributers all over Pakistan
 We have different DSRs
 Vans
 Majorly targeting the youth
7. The marketing strategy during Ramadan:
During the month of Ramadan as the sales go down in Pakistan the Pepsi
company has a very affective pricing strategy in which they reduce the price
by 5 rupees and the advertisement is all over the TV and bill boards which
attracts the customers and the sales boostup tremendously.

14. | Prof: ShehzadAlam
PEPSICO
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8. The Boston Consulting Group Analysis:
According to the Boston consulting group analysis our product Pepsicola is the
cash cow of the company. It is the productall consumers like to have with their
food so it is one of the cash cows for PepsiCo.

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PEPSICO
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9. The product life cycle:
“Stages through which a productpasses during its life time are technically termed
as the productlife cycle.”
10.INTRODUCTION OF PRODUCT
 This is most risky
 Critical
 Tough time
 Doubtful stages
 Struggle for market sharing
 Less profit

16. | Prof: ShehzadAlam
PEPSICO
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11.1 Growth
 Market share increase
 Less Profit
 Build relationship with customer
 Strong hold in Market
 Production Level increase
11.2 Maturity
 At this stage productneither increases nor decreases. Profit is not increasing.
Maturity level shows that the productis on its extreme level of its sales. It
also called the stable level of production.
11.3 Decline
 Declining describes the alarming position of the productcharacterized by a
reduction in sales, market share and profit. Customers start changing their
preferences to better substitutes in the market.
11.Pepsi Cola on the Product Life Cycle Curve:
As mentioned on the graph above our product Pepsicola is in the growth
stage on the productlife cycle curve, because every year the market share of
the productis increasing. When a productis still acquiring market share and
has increase in its sales volume every year, then the productis in its growth
stage.

17. | Prof: ShehzadAlam
PEPSICO
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12.SWOT
13.1 Strengths:
 goodwill is the biggest strength
 Brand range
 a great brand
 an eco-friendly company
13.2 Weaknesses:
 the taste quality
 quality difference between the urban and rural
areas
 the fake bottlers of our product
13.3 Opportunities:
 affordability
 presence of B.brands
 the people of rural areas like pepsimore than
its competitors because of its sweet taste.
13.4 Threats:
 Inflation
 Price points
 Presence of B-brands at a certain level set by
the company

18. | Prof: ShehzadAlam
PEPSICO
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13.Our Recommendations:
PepsiCo being one of the largest company has a competitive edge but it has
some demerits also like as we have mentioned that its distribution is not
good because of this some fake products are also being sold in the market so
they should improve their distribution channel. And they also should also do
research on their taste quality especially in urban areas. The customer
relationship of PepsiCo also needs some amendments.
14.Conclusion:
PepsiCo is a vast company and is spread all around the world. Pepsibeing
the major SBU of the company has great importance and is a cash cow for
the company. Their marketing strategy for Pepsiis very appreciable. The
taglines they use are catchy and catch persons attention at the first glance.