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MPA
(FOR COURCE INTRODUCATION OF BUSINESS)
TO SUMBITTED
( UMAIR UL HAQ )
BY
USMAN BAIG
USAMA SIDDIQUE
SYED SHAHZAD HYDER KAZMI
HAFIZ NOOR-UL-LAIN
NARMEEN NAEEM
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MISSIONSTATEMENT
"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 , we strive for
honesty, fairness and integrity."
VISIONSTATEMENT
"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."
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INTRODUCTIONTOTHECOMPANY
Pepsi International is a world renowned brand. It is a very well organized
multinational company, which operates almost all over the world. They produce,
one of best carbonated drinks in the world. Pepsi is a symbol of hygiene, quality
and service, all over the world. Pepsi is producing Cola for more than 100 years
and it has dominated the world market for a long time. Its head office is in New
York.
FOUNDERSOFTHECOMPANY
The company was initially owned by late Nawab Saddiq Hussain Qureshi & family
till 1989. The Pepsi International franchise declared the management incompetent,
thus, the company was handed over to a new set of personnel. The factory set up
was reorganized & reestablished with expansion in various sectors. The Pepsi
International did this by offering it to Mr. Jehangir Tareen, who formed up his new
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team. Mr. Jehangir Tareen is Nephew of General (late) Akhtar AbdurRehman.
Industrial SWOT analysis
Strengths:
The softdrinks 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 RoohAfza 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
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Opportunities:
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 productionand that brave
move encouraged soft drinks manufacturers to maximize productionand reduce
prices
Threats:
Increasing health and hygiene awareness among Pakistanis has greatly increased
sales of fruit/vegetable juice products. Boththe 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
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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.
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SWOTAnalysisofPEPSI
SWOT Analysis, which is based on thorough review of the business
(corporation, productcategory 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 Pepsiis more than its competitors.
Company has a very established name and a good reputation.
Pepsihas large market share than its competitors.
As the target customers of Pepsiis young generation, so Pepsi has more
brand loyal customers.
Most of the customers are satisfied with the price of the Pepsi.
Pepsiis an international company and it has a very strong position
internationally.
The environment of factory is very good and attractive.
Pepsispends a lot of budget on its advertising.
Pepsihas a very vast distribution channel and it is easily available
everywhere.
Employees are also motivated.
Pepsioffers many discountschemes for customers time to time.
PepsiCola is sponsoring sports, musical concerts, walks.
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The location of the Pepsiplant is utilized that all major markets of Lahore are
within the reach of the Pepsiplant within 30-45 minutes.
WEAKNESSES
Pepsidoes not offer any sort of incentive or discount to its retailers.
Pepsitarget only young customers in their promotions.
Crown of the disposable bottle is not good.
Demand of disposalbottle is declining.
Pepsitin packis not available in far off rural areas.
Pepsiis 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 Pepsito increase its sales through them.
THREATS
The main competitor of the company is the CocaCola.
At the international level, Pepsihas 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.
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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.
COMPETITOR:
He is the person who is selling the same type of product in the market.
The marketing conceptstates that to be successful, a company must provide greater
customer value and satisfaction than its competitors do.
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.
There are different types of competitor in the market. Some of them in which our
product lies are discussed below:
CloseVsDistantCompetitor
Pepsiand Coke are close competitors. It means that both have direct competition in
the market, their products are close substitutes for one another. Both the products
can influence the market share of one another through effective strategies made to
copeup with their competitors.
Pepsicola and Nestle juice are distant competitors of one another. It means that
their products satisfy the same want but they are in indirect competition with one
another.
StrongVsWeak:
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CocaCola and Pepsiare strong competitors. In Pakistan Pepsiis the market leader
and CocaCola is its competitor. The Pepsimakes defense strategies so that it can
maintain its position in the market. While CocaCola is a challenger and it makes
attack strategies so that it can become the market leader.
Pepsiand Shandi Cola are weak competitors. Pepsiis the market leader and Shandi
Cola is the follower. Pepsiis not in direct competition with the Shandi Cola. It
means that Shandi Cola has little effect on the sales of Pepsi
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Market strategies
PRODUCT:
“PEPSI PERFECT “ a new soft drink will launch by Pepsi, a vitamin-enriched
Pepsi, with 50% less sugar than regular Pepsi, and black in color and flavor
stronger than regular Pepsi.
Pepsi company will launch new product extension in the market due to consumers
phychological factors. Thus Pepsi Cola satisfies the consumer’s needs efficiently
by launching a desired product.
Carbonated drinks have become part of the culture in Pakistan and multinational
companies have maintained standards over the years to provide the nation with
high-quality drinks.
Pepsi is the most popular and leader brand in the Pakistani market and is consumed
by children and adults alike. Pepsi is a responsible corporate brand of Pakistan and
have contributed a lot to the economy.
PRICE:
The amounts of money charged for a product(PEPSIPERFECT). Price of product
should be that which gives maximum benefit to the company and which gives
maximum satisfaction to the customer.
Following factors Pepsi kept in mind while determining the pricing strategy.
Price should be set according to the productdemand of public
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Price should be that which gives the company maximum revenue.
Price should not be too low or too high than the price competitor is charging
from their customers otherwise nobodywill buy your product.
Price must be keeping the view of your target market.
Rates:
250 ml-----------------------------------RS. 25.00/-
500ml------------------------------------RS. 40.00/-
1000ml----------------------------------RS. 55.00/-
1500ml----------------------------------RS. 80.00/-
2250ml----------------------------------RS. 100.00/-
PROMOTIONS:
In Pakistan Pepsiis the most liked soft drink especially by young generation
for this reason they started monitoring the habits of the generation. Students
were crazy about cricket and usually liked to idealize them so in order to
increase their sales the Pepsicola company paid high amounts of money
to the cricketers to act as their spokes men.
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CONCLUSION:
Pepsilaunching a new productcalled as “PEPSIPERFECT”it’s a vitamin en-
riched soft drink due to market trend changed consumers mostly prefer vitamins
and energy drinks instead of soft drinks because consumers are health concious.
Pepsiis a well known company and it has maintained its position well by
understanding the client psychology, by ensuring quality, by keeping economic
factors in view and by advertisements.
SUGGESTION
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 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.
Fresh efforts, newness of approach must remain the principles of a well marketing
strategy. A continuous bombardment in advertisement would convince the clients
that Pepsi is a part of their lives. Pepsi to be an essential ingredient of their life.