1.
PEPSI COLA PAKISTAN:
FRANCHISING & PRODUCT
LINE MANAGEMENT
Stanford Graduate School of Business:
Case Study (2008)
STRATEGIC MANAGEMENT

2.
SEQUENCE
Part I: PepsiCo Inc & Pakistan
MaliK Waqar Hassan Awan 27914
Part II: Competitive Analysis
Tajjamal Husnain 28479
Part III: PepsiCo Inc Operations in Pakistan
Sarfraz Ahmed 28493
Part IV: Going Forward – Marketing Strategy
Zafar Babur 20311

3.
INTRODUCTION

4.
INTRODUCTION
PepsiCo - a Conglomerate & Multinational Manufacturer:
(soft drinks, food items, snacks and different types of juices)
Revenue: $70.37 Bn, Operating Income: $10.29 Bn, Net
Income: $7.353 Bn & Number of Employees: 267,000
July 1991 – Task of Pepsi Cola West Asia VP & CEO, Pakistan:
Develop a strategy to grow share & profitability across
PCI sales but focusing particularly on 7-Up
Shift Of Pepsi Cola Focus to its Global Brands
Since acquiring 7- Up International in 1986, all
marketing & technical support for Pepsi’s local Pakistani
brand, Teem was withdrawn

5.
INTRODUCTION
Teem’s Success in Pakistan Posed Important Question
• How should the soft drink be positioned
• Despite loss of international support, should
investment in it continue
Priority for Mustafa
With PepsiCo’s acquisition of 7-Up Intl -
Need to arrange merger of 7-Up & PCI bottlers in Pakistan
Essential Requirement
Develop ability to coordinate strategies across all
bottlers producing PCI brands in Pakistan
Challenge for Mustafa
Need to make important decisions about Teem -
developing a brand strategy & marketing plan

6.
Achievement & Next Requirement
• August 90: merger of 7-Up & PCI bottlers in 3 regions
• Need to convince remaining 7-Up bottlers to sell their
plants to PCI bottlers
Mustafa’s Next Step & Likely Issues
• Persuade bottlers to adopt updated product line
• Expected resistance as “Teem” being strong Pakistani
brand had outsold 7-Up in some regions
INTRODUCTION

7.
PART – I
PepsiCo Inc &
Pepsi Cola Pakistan

8.
• The soft drink Pepsi was developed by Caled
Bradham, a pharmacist and businessman from Duplin
County, North Carolina
• He coined the name "Pepsi-Cola" in 1898 while
marketing the drink from his pharmacy in New Bern,
North Carolina.
• As his drink gained popularity, Bradham founded the
Pepsi-Cola Company in 1902 and registered a patent
for his recipe in 1903.
• The company was incorporated in Delaware in 1919
(source: PepsiCo Wikipedia google).
BACKGROUND OF PEPSI

9.
• Ex-Chairman Of NetSol Technologies, Irfan Mustafa
occupies the position of Chairman at Kfc Pakistan,
• He is also Director & Partner at Taco Bell and
Amazon.com LLC.
• He is also on the board of director of 5 other companies.
Chief Leadership &
Development Officer at Yum! Brands.
• Mr. Mustafa received an MBA from Institute of
Business Administration, an undergraduate degree
from the University of the Punjab and an MBA from
the University of Karachi
BRIEF PROFILE
CEO PEPSI COLA PAK & VP PEPSICO
IRFAN MUSTAFA

10.
• Source of information and data collection of this study
are; Interviews of Irfan Mustafa (west Asia area vice
president & CEO Pepsi Cola Pakistan Incorporated (PCI)
or data provide by PCI.
• 1956, Pepsi Cola was produced by 149 bottlers in 61
foreign countries. In 1972, Pepsi sealed a production
agreement with the Soviet Union and then, in 1981,
reached a bottling agreement with the People’s Republic
of China Pepsi Cola International accounted for almost
$1.5 billion in net sales and close to $94 million in
operating profit in 1990.
PEPSI COLA PAKISTAN

11.
PEPSICO INC
• Pepsi was owned by parent company PepsiCo Inc in 1990.
• At that time PepsiCo was a Brand that available is almost 150
countries and the retail sale volume is $44 Billion in 1990.
• Net sale is almost $18 Billion and Income was $1 Billion in
1990.
• In 1990, PepsiCo numerous food and beverage brands were
available in nearly 150 countries and accounted for an
estimated $44 billion in retail sales. Net sales were almost
$18 billion and net income was over $1 billion.
• Continue………………….
PEPSICO INC

12.
• In 1990, PepsiCo operated in three
markets as below and had good year
growth in 1990 in all of its three markets;
• Soft Drinks : Pepsi Cola Company and
Pepsi Cola International ( Double Digit
Growth 14% ).
• Snack Foods : Frito Lay Inc. and PepsiCo
Foods International ( Double Digit
Growth 16% ).
• Restaurants : Pizza Hut, Taco Bell, And
Kentucky Fried Chicken( Double Digit
Growth 26% ).
• One out of every five sales dollars was
transform outside the USA.
2
3
1

13.
Soft Drinks: Pepsi Cola Pakistan
• Pepsi Cola International represented PepsiCo's soft
drink business outside of the United States.
• Year Activity
• 1895 "Brad’s Drink" appears in New Bern, North
Carolina.
• 1898 First known use of "Pepsi Cola" name;
automatic bottle-making machine invented.
• 1934 Bradham dies; "Pepsi Cola Co. Canada" formed.
• 1946 Pepsi moves into Latin America.
• 1956 Pepsi has 120 plants in over 50 countries.
SOFT DRINKS:PEPSI COLA
INTERNTIONAL

14.
• 1961 Teem introduced, "Now it’s Pepsi...For those
who think young" campaign.
• 1965 Frito-Lay and Pepsi merge; Diet Pepsi catches
industry leader in diet market.
• 1966 Pepsi enters Japan and Eastern Europe.
• 1972 Pepsi-USSR trade agreement announced.
• 1977 Pepsi acquires Pizza Hut Corporation.
• 1978 Pepsi acquires Taco Bell Corporation.
• 1985 Pepsi enters China.
• 1986 Pepsi acquires 7-Up International.
• 1988 Pepsi receives approval for India joint venture.
• 1989 Pepsi acquires Kentucky Fried Chicken.

15.
WITH NEARLY 14 BILLIONS SOLD WORLDWIDE IN
1990, THE INTERNATIONAL SOFT DRINK MARKET
WAS
ALMOST DOUBLE THAT OF THE UNITED STATES

16.
• PepsiCo bought 7-up for $246 million in 1986.
• PepsiCo had originally offered to buy both the American and
international interests of 7-Up for $380 million but the United
States Federal Trade Commission blocked that deal on grounds of
violating antitrust laws.
• 7-Up International was the third-largest soft drink company both
abroad and inside the United States and operated in more than 85
countries. Adding 7-Up’s international unit boosted PepsiCo’s
foreign volume by almost 20 percent.
• Coca-Cola Company, however, remained the industry leader that
year, Coca-Cola had 39 percent market share compared to Pepsi’s
29 percent in the United States and the company outsold Pepsi
by three to one outside of the United States.
• By 1991, five years after purchasing 7-Up International, Pepsi
Cola International had expanded 7-Up sales, adding more than 30
additional markets.
7-UP INTERNATIONAL

17.
PART – 2
PEPSICO INC &
PEPSI COLA PAKISTAN

18.
• The soft drink industry was one of the most
competitive consumer product industries.
• Pepsi Cola's main competitor, both in the United
States and abroad, was the Coca-Cola Company. By
1990, Coca-Cola sold soft drink products in almost
170 countries, outselling all other soft drinks.
• Coca-Cola’s international soft drink business grew 8
percent from 1989 to 1990 while Pepsi-Cola’s
international sales grew 29 percent however, Pepsi
Cola lagged far behind Coca-Cola, with less than one-
third of Coca Cola's international sales.
COMPETITIVE ANALYSIS OF PEPSI

19.
COMPETITIVE ANALYSIS OF PEPSI

20.
PEPSICO INC
• While Coca Cola concentrated on only soft drink
PepsiCo diversified to good as well. Still Pepsi had
33% US soft drink market while Coca Cola had
41%. So Pepsi lagged behind in that market and had
less than one third of coca cola market worldwide.
• Goizueta believed this was because coca cola focused
their attention on soft drink business.
• Though coca cola was in lead but Pepsi wasn’t far
behind. They claimed market leadership in parts of
Middle East, Latin America and eastern Europe.
COMPETITIVE ANALYSIS OF PEPSI

21.
Soft Drinks: Pepsi Cola Pakistan
• This competition was described as a very high stakes
struggle for brand loyalty. It wasn’t just about the
formula anymore but everything from top
management to bottler.
• Through coca cola was leader Pepsi was growing
rapidly.
• This success was based on marketing tactics which
were based on focusing on the younger generation.
• They reached the peak when coca cola failed at
introducing new coke and was forced to reintroduce
old coke within 90 days.
COMPETITIVE ANALYSIS OF PEPSI

22.
COMPETITIVE ANALYSIS OF PEPSI

23.
Product
• Pepsi is made with
carbonated water, high
fructose corn syrup, caramel
color, sugar, phosphoric acid,
caffeine, citric acid and
natural flavors.
• Pepsi is available in many
flavors according to needs
and wants of customers.
• PepsiCo produced two types
of products:
 Beverages
 foods
MARKETING MIX OF PEPSI

24.
Price
• Should be set according to the product demand of
public.
• Should be that which gives the company maximum
revenue.
• Should not be too low or too high than the price
competitor is charging from their customers
• Must be keeping the view of your target market
• Best thing about the company is that it is very flexible
and it can come down the prices very quickly
• Competition based pricing.
MARKETING MIX OF PEPSI

25.
MARKETING MIX OF PEPSI
• Pepsi Company has also become official sponsors of
Pakistan cricket
• Pepsi has launched a number of prize schemes to
attract new customers.
• TPR(Trade Price Reduction) is a promotional strategy
of Pepsi on ramzan and Eid. One case is free on buying
10 cases of Pepsi.
• Dil Mange abhi
• Duniya hai dil walon ki
• Made for cricket
• Khana bane exiting

26.
Product
• The products were sold in more than 200 countries in
the world.
• The products are available in supermarkets, cafes,
restaurants, vending machines, gas stations, movie
theaters and so on.
• PepsiCo company distribute its products in three
different ways:
1. Direct store delivery
2. Customer warehouse
3. Distributor Networks
MARKETING MIX OF PEPSI

27.
Segmentation & Targeting
• Four major segmentation - Geographic ,Demographic
,Psychographic and Behavioral.
• Pepsi has historically targeted a young audience especially since
the 1980s.
• Many of their ads were usually aimed at teenagers and even
younger groups by introducing fun, sports and music in their ads.
• Pepsi also attracts other age groups not only teens.
• Pepsi targeted the every class of Pakistan whether it is a Middle,
Upper and lower class.
• Pepsi targeted the South Asia Region through Cricket Sponsorship
in that region.
SEGMENTATION, POSITIONING AND
TARGETING OF PEPSI

28.
Positioning
• Firstly the Pepsi in America try to position its
product for the society as whole and for the purpose
of refreshment.
• Pepsi’s goal is Attract a certain set of customers to
buy the product by associating itself with young
people who are energetic, fun loving and daring.
• Low quantity of cafeen.
• Available in regular size.
SEGMENTATION, POSITIONING AND
TARGETING OF PEPSI

29.
SWOT ANALYSIS OF PEPSI
Strength Weaknesses Opportunities Threats
Large no. of
brands.
PepsiCo prices
products lower than
its competitors.
Due to increase in
demand for healthy
food and beverages.
Consumer’s health
consciousness & reduced
consumption
Operate more
than 200
countries.
Coca Cola-largest
mkt share/ stronger
brand than Pepsi
Consumption of bottled
water expected to grow
in
PepsiCo’s gross profit
margin decreasing over
past few years
More than 2$
billion on
marketing &
advertising.
PepsiCo’s net profit
margin is 9.7%
compared to Coca
Cola’s 18.55% and
Nestlé’s 11%.
opportunity PepsiCo
has in growing its
revenue selling snacks
as this market is also
expected to grow.
Rumors- Pepsi ingredients
could cause cancer –
Chances of legislation
requirring disclosing such
information on product
labels

30.
• Coke is the market leader with 54% market share.
• Pepsi is having only 46% market share .
• Coke and Pepsi hold almost 75% the whole market.
• That Pepsi is the leading brand of PepsiCo, with
29% market share of its total market share.
• Thumbs up is the leading brand of coke with
market share of coke-cola.
HIGHLIGHTS FROM ANALYSIS

31.
PART – III
Pepsi Cola Inc. Operations
in Pakistan

32.
• The World Fact book described Pakistan as a
poor country.
• Population 114 million.
• Fertility rate of 6.7 children born per woman,
was expected to double by 2022.
• 68 % lived in rural areas while 32 % lived in
urban centers (Big cities, Karachi, Lahore etc).
PAKISTAN
IN 1990

33.
•PCI was a part of West Asia Division of
Pepsi Cola International.
Divisions Departments
3 5
Irfan Mustafa join PCI as CEO on July 1990.
PEPSI COLA PAKISTAN INC. (PCI)
Pakistan,
Bangladesh
and Sri Lanka
Franchising, marketing,
soliciting companies
(bottlers), sales
operations, and finance

34.
PARTIAL ORGANIZATIONAL CHART
OCTOBER 1, 1991

35.
• Pepsi’s marketing of carbonated drinks could be
broken down into two stages.
MARKET AND PRODUCTS
IN PAKISTAN (1991)
Concentrate producer
(PCI) manufactured
concentrate and sold
it to bottlers
Bottlers added carbonated
water and sweetener in
specified quantities and then
sold the beverage through retail
stores and other outlets.

36.
• Per capita consumption of soft drinks in Pk is
lowest in the world. Retail price 4 (US 0.18) &
personal income was Rs. 682 (US 38).
• Prior to Pespsi Co acquisition of 7 up, was 3 flavors
(cola, orange & lemon lime).
• PCI had developed Teem as a competitive lemon-
lime substitute in order to complete its product
line.
• The lemon-lime substitute allowed PCI to achieve
strength and economies of scale in terms of
production, marketing, sales, and distribution.
MARKET AND PRODUCTS
IN PAKISTAN (1991)

37.
PCI divided its market into two segments
On
premise
85%
Take-
Home
15%
Restaurants,
cinemas, snack
bars, parks, and
airlines
In the
take-home
segment
MARKET AND PRODUCTS
IN PAKISTAN (1991)

38.
PEPSI COLA INTERNATIONAL (PCI) VS. COCA-COLA
INTERNATIONAL (CCI) 1990 (%)

39.
PEPSI COLA PAKISTAN INC MARKET SHARE OF
COLA COMPANIES IN PAKISTAN, 1988-90 (%).

40.
LEMON-LIME
Strongest lemon-
lime brand in the
world market & in
Pakistan.
Second largest
lemon-lime flavor in
Pakistan.
Coca-Cola’s
Sprite was
number three.
1
2
3

41.
DISTRIBUTION
PCI DISTRIBUTION BY TYPE OF RETAIL OUTLET

42.
ADVERTISING & PROMOTION
billboard 5 % print media 15 % television 80 %
Advertising
0
10
20
30
40
50
60
70
Trade 20 % Point of
Sale 20 %
Consumer
60 %
Promotion

43.
• In the early 20th century, Pepsi Cola began
using a franchise system to expand distribution
with minimal company investment.
• The Pepsi Cola franchise was a contract
assigned by the company to a bottler giving the
bottler exclusive rights and some duties.
BOTTLERS

44.
• Exclusive right to distribute and sell in a given
territory.
• To retain franchise for 10 years with option to
renew for periods of 5 years
• To receive delivery of concentrate by the company
• Have company's protection of product quality and
reputation.
• To receive company's share in advertising and
promotion expenses
• To receive company's advice on quality control,
marketing, sales, equipment, etc.
BOTTLERS' RIGHTS

45.
BOTTLERS' DUTIES
IN FOUR CATEGORIES

46.
PART – IV
Going Forward –
Marketing Strategy

47.
VISION
At PepsiCo, we aim to deliver top-tier financial
performance over the long term by integrating
sustainability into our business strategy, leaving a
positive imprint on society and the environment. We
call this Performance with Purpose. It starts with what
we make - a wide range of foods and beverages from the
indulgent to the more nutritious; extends to how we
make our products - conserving precious natural
resources and fostering environmental responsibility in
and beyond our operations; and considers those who
make them - striving to support communities where we
work and the careers of generations of talented PepsiCo
employees.

48.
MISSION
As one of the largest food and beverage companies in
the world, our mission is to provide consumers
around the world with delicious, affordable,
convenient and complementary foods and
beverages from wholesome breakfasts to healthy
and fun daytime snacks and beverages to evening
treats. We are committed to investing in our people,
our company and the communities where we operate
to help position the company for long-term,
sustainable growth.

49.
CEO’s Top 3 Priorities
I
Overseeing
acquisition of
the remaining
7-Up bottlers &
managing
resulting
integration
II
Identify role of each brand
in PCI portfolio (Pepsi, 7-
Up, Teem—both Clear and
Cloudy—and Mirinda)
Then develop a marketing
plan for 7-Up & Teem
including both marketing
strategies & budget
allocation for advertising &
promotion
III
Expansion of
Cloudy Teem to the
rest of Pakistan if
it is determined
that it had major
growth potential
GOING FORWARD

50.
Main Objective
Gain more control and coordination among bottlers. Combining 7-
Up & PCI bottlers in Pak would result in expanded capacity within
the existing management structure & help PCI coordinate strategies
/ practices across all bottlers.
ACQUIRING 7-UP BOTTLERS
Effects on Bottlers
• Source of prestige, attention, support & excitement for PCI
bottlers for representing a major global brand of Pepsi Cola Int’l.
• Also meant capital investments and issues in integrating the
two bottling operations (reconciling different practices, skill
sets, salary scales, etc.).
Mustafa’s Major Concern
• Merging the bottlers gave them increased power due to their
larger size & capacity
• Keeping 7-Up bottlers separate would allow PCI to exert more
clout while bringing the bottlers together would achieve more
synergies
Merger Progress
• 7-Up bottlers in Hyderabad, Multan & Sukkur sold their plants to
PCI bottlers and the plants merged.
• Mustafa in process of convincing the four remaining 7-Up
bottlers to sell to PCI bottlers. However, 7-Up bottler’s response
was non-serious as they behaved like entrepreneurs deriving
prestige from owning their own businesses.
Mediation by PCI & Mustafa’s Comments on Negotiations
“Generally, the bottlers lack professional managerial skills and
think only in terms of short-term objectives. It is very difficult
to convince all of them on any point. They tend to resist the
marketing plans designed by PCI. The management of PCI is
constantly faced with the challenge of removing the barriers
put up by the bottlers in achieving the long-term goals of the
company.”

51.
CLOUDY TEEM
PCI management – Concept of Cloudy Teem
Based on a local drink referred to as sikanjabin, a traditional
Pakistani lime concoction, and formulated the product in 1990.
Original Idea
Move Clear Teem consumer to either 7-Up or Cloudy Teem,
phasing out Clear Teem altogether.
Growth Potential vs Market share
7-Up was the global brand that PepsiCo was supporting. If Teem
brand demonstrated strong growth potential, Cloudy Teem
could complement 7-Up, rounding out PepsiCo’s lemon-lime
product line and helping to drive market share and profit growth.

52.
CLOUDY TEEM
Dichotomy
• 3 x 7-Up bottlers merged with PCI already carried PCI’s
complete product line: 7-Up, Mirinda, Teem, and Pepsi Cola &
had already replaced Clear Teem with Cloudy Teem
• PCI’s 6 other bottlers - not convinced of the Cloudy Teem’s
feasibility reluctant to replace Clear Teem
• Arguments: - Making drink Cloudy gave “Fake Look”
- Feared instead of Transparent Lemon-lime
Softlikely customer disliking for Milky color
of Cloudy Teem Drinks
- Believed that similar tastes of 7-Up & Teem –
psychologically source of Teem’s customer
retention

53.
Bottler’s Fear
• That introducing Cloudy Teem instead of Clear Teem, a strong
brand across Pakistan could damage their profits
• Bottler’s majority of profits came from larger brands – Pepsi
Cola and Mirinda. Switching consumers from Clear to Cloudy
Teem or to 7-Up, brands - PCI bottlers had limited to no
experience Therefore, feared to lose their consumer attention
CLOUDY TEEM
Bottler’s Resistance vs Mustafa’s Plan
• Based on Teem's past profitability, Mustafa, intended to
introduce Cloudy Teem into 2 additional franchise territories
by the end of 1991.
• If Cloudy Teem showed good growth potential, he hoped that
the positive experience of the bottlers in Multan and
Hyderabad, where Clear Teem had also been a strong brand,
would help persuade other bottlers.

54.
Brands Sales Share (%)
60 – 65 % of PCI Sales
Combined 15 – 20 %
15 – 20 %
Since Acquisition of 7-Up in 1986
BRAND PORTFOLIO & MARKETING PLAN

55.
Brands Marketing Strategy
Need to strategically gear-up Pepsi advertising &
promotion budget to maintain market share
Mirinda - hold share strategy; yielding its full market
potential
Teem’s future – build, maintain or harvest (teem
revenue to support other PCI brands)
7-Up performing at less then its potential – to
opportunity to grow sales with strong marketing
support through allocation of promotional budget for
building more market shares
PRIOR TO ACQUIRING 7-UP - Lion’s shares of marketing budget to Pepsi
(approx. 80%); remaining 20% divided between Mirinda & Teem
BRAND PORTFOLIO & MARKETING PLAN

56.
BRAND PORTFOLIO & MARKETING PLAN
Future of Cloudy Teem
• If cloudy teem spurs PCI sales, national promotional
campaign to keep the brand alive
• Rural vs urban divide should be focused in advertising as 68%
of population lived in rural areas with low literacy rate and
disposable income.
• PCI relied on less expensive advertising e.g. Radio & point of sale
campaigns. Visual electronic media had poor reach in rural
areas

57.
BRAND PORTFOLIO & MARKETING PLAN
Pepsi Cola’s Experience with Thums Up in India
• Local brand of Parle Exports, dominating Indian soft drink
market in the early 1990s (up to 60% market share)
• Thums Up was made a generic name for cola in India, beating out
domestic & global rivals e.g. Cadbury, Coca-Cola, and even Pepsi.
• Media spend yielded higher returns in urban areas, where
television and other forms of electronic media were more
pervasive and accepted.
• Mustafa intended to take advantage of Pakistan’s population
divide e.g. target 7-Up to urban areas where consumers were
familiar with and influenced by global brands and promote
Teem, the local brand which no longer had support from
Pepsi Cola International, in rural areas.

58.
SUGGESTED STRATEGIES
Should Merger of Bottlers continue?
How can he Convince the Bottlers to merge & Control Cross
Franchising?
• While Coca Cola, the biggest rival of PCI is still leading in the
market, Pepsi must ensure merging the bottlers
• Acquiring bottlers or mergers with them will help PCI gain
more control over bottlers and synergies / coordination
ensuring efficient & smooth functions.
• Therefore, the CEO should continue mergers with the bottlers
• As previously seen, PCI’s major objective was to acquire 7up
international, mergers will give them greater capacity
within the existing management structure.

59.
SUGGESTED STRATEGIES
• Since bottlers feared getting overshadowed and neglected by mergers
due to PCI’s bigger brand Pepsi. PCI Pepsi can convince the bottlers to
merge by giving them confidence, assurance of safe guarding their
interest & training the management of the bottlers. Should offer
incentives / financial support for Bottler’s work force to persuade them
work wholeheartedly
• It was really important for Mustafa to crack down cross-franchising.
Previously, most of the bottler owners belonged to the prestige status,
powerful affluent people either like politicians / Bottlers often use to sell
in other territories to whom Mustafa called cross-franchising. So,
restricted them not to sell out of their territory. Cross franchising was
considered to be illegal. In case of breach, bottlers were instructed to
complaint against them. Those who offended for sake of more profits, their
contracts were withdrawn.
Should Merger of Bottlers continue?
How can he Convince the Bottlers to merge & Control Cross
Franchising?

60.
SUGGESTED STRATEGIES
Should CEO build, maintain, or harvest the Teem brand in Pak?
Should he keep clear Teem?
• Teem brand should be retained, it was already very much
successful throughout Pakistan, it had been liked by the
individuals, there is no reason to withdraw or divest from this
brand. Moreover logically assessing, Teem had 31% in 1990
percent of market share by various segments of Pakistan (as
per Exhibit 6), making the top Second beverage of PCI.
• If it is discontinued, it will split up the total overall market
share of PCI, and as a result the gap between sprite and 7up only
will become greater than before.

61.
SUGGESTED STRATEGIES
Should CEO build, maintain, or harvest the Teem brand in Pak?
Should he keep clear Teem?
• Already the reason behind producing teem was to
get competitive lemon-lime substitute so to
complete the product line. As per the observation of
Mustafa, youth, fun loving and outgoing people of
Pakistan were more into consuming PCI products. The
youth of Pakistan were seeking for some sort of
identity and teem was the product to entitle them
with Pakistani identity. Since Clear teem was
successful, introducing the Cloudy-teem gave a better
brand image to PCI, as an extension with regards to 7up
and Sprite.

62.
SUGGESTED STRATEGIES
• By retaining Teem brand being a traditional drink in
Pakistan, PCI could promote more aggressively in
rural and urban areas to gain more market share
and awareness among the targeted individuals.
Should CEO build, maintain, or harvest the Teem brand in Pak?
Should he keep clear Teem?

63.
SUGGESTED STRATEGIES
How Should Irfan Mustafa balance the investment and efforts across the
four brands; Pepsi, Miranda, 7up, and Team in Pakistan?
• After the acquisition of 7up the overall Sales share of all PCI
brands: Pepsi - almost 60-65%, 7up - 20%, Teem & Mirinda 10%
each.
• Short Term Strategy – The CEO should keep a portfolio of
Pepsi, Mirinda, 7up and teem (clear and cloudy both).
Moreover Teem Cloudy should be heavily promoted as it tastes
like the sikanjibin, the traditional lemon-lime of Pakistan. Making
people aware and promoting to purchase would help gaining
profits and more market share.

64.
• Long Term Strategy - keeping an account that Teem Clear
should be phased out gradually from urban areas and as a
substitute Teem Cloudy should be promoted and placed in
the market as well.
• Consequently Pepsi, 7-Up, Teem-Cloudy and Mirinda would be
a perfect combination or a portfolio.
• CEO should apply effective marketing tactics in order to
compete with coke, PCI products should be conveniently
available while maintaining the quality of the beverages.
Moreover better relationships with the bottlers is also very
much important.
SUGGESTED STRATEGIES
How Should Irfan Mustafa balance the investment and efforts across the
four brands; Pepsi, Miranda, 7up, and Team in Pakistan?

65.
SUGGESTED STRATEGIES
How Should Irfan Mustafa balance the investment and efforts across the
four brands; Pepsi, Miranda, 7up, and Team in Pakistan?
Mirinda

66.
CONCLUSION
• PCI has well-developed soft drinks market in Pakistan with
tremendous future. Whatever strategies may be adopted those
should ensure potential for growth for PCI’s product lines—
Pepsi, 7-Up, and Mirinda.
• With PCI winning the Int’l Quality Award and Bottlers of the Year
Award in 1990, Mustafa felt quite optimistic. Although difficult
challenges lay ahead, he believed that the way to exploit
opportunities was through the implementation of an effective
and comprehensive marketing strategy encompassing PCI’s
brand portfolio and bottlers.