Of

Marketing Management
Submitted to;
Dr. Muhammad Imran Hanif

Submitted by;
Muhammad UsamaNadeem BBFE-17-43
MehrunNisa BBFE-17-22
NimraRehman BBFE-17-39
Muhammad Waleed BBFE-17-05
Programme; BBA (B&F)4th Semester (Eve)
Session; 2017-21

BAHAUDDIN ZAKRIYA UNIVERSITY MULTAN

i
 ACKNOWLEDGEMENGT

All praises and appreciation are for Allah Almighty. First of all , we bow our head to Allah Almighty
who help us and give us great power to fulfill this project.

We have taken efforts in this project. The success and final outcome of this project required a lot of
guidance and assistance. All that we have done is only due to such supervision and assistance and we
would not forget to thank them.

Firstly,we are highly indebted to our supervisorDr. M. Imran Haniffor his continued guidance and
constant supervision as well as for providing necessary information relating to our project, which
enhances our ability in understanding the Marketing Management.

A work is never a work of individual. Muhammad UsamaNadeem, MehrunNisaNimraRehman and

Muhammad Waleed did a lot of effort in this Project.

Last but not least ,We make this project not only for marks but to also increase our knowledge.

Muhammad UsamaNadeem

MehrunNisa

NimraRehman

Muhammad Waleed

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 Purpose of This Project

The main purpose of this project is to highlight and to study the Marketing Management. In this, our
understanding about the marketing of Pepsi Cola company in relation to the product and services
including the planning process, organizing the marketing
functions,implementing the marketing decisions keeping in mind the ethical,
legal andsocietal consideration.

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 Executive Summary

The Purpose of this project is to study the strategies which Pepsi is doing in Pakistani market for
its product Pepsi cola. Pepsi is a international world renowned brand. It is a very well organized
multinational company , which operates almost all over the world. The company is registered in
New York stock exchange U.S.A. to make a better control over the business .The company has
given the manufacturing rights to different companies . Now , these companies are producing the
products on the behalf of thecompany by using their trademark.

In Pakistan , it also has proved itself to be the no . 1 soft drink.As one of the largest food and
beverage business in Pakistan. Pepsi co. Pakistan offers consumers a wide- ranging portfolio of
enjoyable and wholesome products. Pepsi is a symbol of hygiene ,quality and service.

The whole project termed as products market visibility enhancement in which the whole analysis
based on current market visibility position of products.This report contains the history of Pepsi co.
In this report , discuss the Pepsi Cola marketing management strategies which is the core step of
its progress. In this more, discuss about the Pepsi Product line , Pepsi Co. marketing mix in
relation with price , place , promotion or product. One of the strongest reason Pepsi retains its
brand image is its promotions. The pricing of Pepsi is competitive.

More discuss about the factors that effect the Pepsi co. Those factors are political factor ,
Economic factors , Social Factors , Technological factors and he legal factors. Also discuss about
the competitive forces of Pepsi cola co. This report contains the data of observation of Shamim
and co. which is basically the franchisee of Pepsi co. in Pakistan.This analysis helps in analyzing
the current situational position of the company , tells which external or internal factors is to avail
which to retain and from which to sustain.Moreover, the market research analysis of company
also discuss.By the all data mentioned the findings do and on this base the conclusions and
recommendations is present in this report.

Now days Pepsi is recognized as Pakistani national drink . Pepsi’s greatest rival is Coca Cola.
Coca Cola has an international recognized brand . Coke’s 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 maintain is no. 1 position in Pakistan.

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Table of Contents

Chapter 1
1-The Organization
1.1 - Profile of Pepsi Co.-------------------------------------------------08
1.2 - History of Pepsi Co.------------------------------------------------08
1.2.1- Shamim& Company-----------------------------------------11
1.3 – Nature and Scope---------------------------------------------------12
1.4 – Vision of Pepsi------------------------------------------------------13
1.5 – Mission of Pepsi----------------------------------------------------13
1.6 – Core Values of Pepsi-----------------------------------------------13
1.7 – Goals and Objectives of Pepsi------------------------------------14
1.8 – Products Line-------------------------------------------------------14
Chapter 2
2- Organization Marketing Mix
2.1- Products of Pepsi---------------------------------------------------16
2.2- Pricing Strategy -----------------------------------------------------17
2.3- Distribution Channels-----------------------------------------------18
2.4- Promotion of Pepsi--------------------------------------------------20
Chapter 3
3– Promotion Mix
3.1- Advertising ----------------------------------------------------------------22
3.2-Sales Promotion----------------------------------------------------22
3.3-Personal Selling-----------------------------------------------------22
3.4- Public Relation-----------------------------------------------------23
3.5- Publicity-------------------------------------------------------------23
3.6-Direct Marketing----------------------------------------------------23

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Chapter 4
4- The Marketing Environment
4.1- Competitive Factors -------------------------------------------------23
4.2- Economic Factors ---------------------------------------------------24
4.3- Political Factors-----------------------------------------------------24
4.4- Legal Factors-------------------------------------------------------24
4.5-Tcchnological Factors------------------------------------------------25
4.6-Sociocultral Factors -------------------------------------------------25
Chapter 5
5- Market Analysis
5.1- Segmentation Analysis----------------------------------------------26
Chapter 6
6- Target Market-----------------------------------------------------------------27
Chapter 7
7- Market Research Analysis-------------------------------------------------28
7.1- Introduction ---------------------------------------------------------28
7.2-Secondary Research ------------------------------------------------28
7.3- Qualitative Research -----------------------------------------------29
7.4 Survey Research ------------------------------------------------------29
7.5- Data Collection Analysis------------------------------------------29
7.6- Findings-------------------------------------------------------------30
7.7-Limitations-----------------------------------------------------------30
7.9- Conclusions -------------------------------------------------------30
7.10- Recommendations-----------------------------------------------30
Chapter 8 --------------------------------------------------------------------------33
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8.1 Fruitose Juice -----------------------------------------------------------------33
8.2 Our Specialty -----------------------------------------------------------------33
8.3 Product offering --------------------------------------------------------------33
8.4 Price ----------------------------------------------------------------------------34
8.5 Promotion ----------------------------------------------------------------------34
References-------------------------------------------------------------------------35

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 Chapter 1
1-The Organization

Pepsi is a international world renowned brand. It is a very well organized

multinational company , which operates almost all over the world. In Pakistan it also
has proved itself to be the no .1 soft drink. Pepsi is a symbol of hygiene ,quality
and service.

1.1- Profile of Pepsi Co.

Pepsi Co, Inc. is an American multinational food, snack, and beverage corporation
headquartered in Harrison, New York. PepsiCo has interests in the manufacturing,
marketing, and distribution of grain-based snack foods, beverages, and other products.
PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay,
Inc. PepsiCo has since expanded from its name sake product Pepsi to a broader range of
food and beverage brands, the largest of which included an acquisition of Tropicana
Products in 1998 and the Quaker Oats Company in 2001, which added the Gatorade brand to
its portfolio.

1.2- History of Pepsi Co.

Born in the Carolinas in 1898,PepsiCo. has long and richhistory.Thedrinkisinvention

ofCalebBradham (left), a pharmacist and drugstore owner in New Bern,NorthCarolina.
Thesummerof1898,asusualwashotandhumidinNewBern,NorthCarolina.Soa

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youngpharmacistnamedCalebBradhambeganexperimentingwithcombinationsof spices,
juices, and syrups trying to create a refreshing new drink to serve his customers. He
succeeded beyond expectations because he invented the beverage known around the
world asPepsi-Cola.
Caleb Bradham knew that to keep people returning to his pharmacy, he would have
toturnitintoagatheringplace.Hedidsobyconcoctinghisownspecialbeverage,a soft drink.
His creation, aunique mixture of kola nut extract, vanilla and rare oils, became so
popular his customers named it"Brad's Drink." Caleb decided to rename it "Pepsi-
Cola," and advertised his new soft drink. People responded, and sales of Pepsi-
Colastartedtogrow,convincinghimthatheshouldformacompanytomarket the
newbeverage.
In1902,he launchedthePepsi-ColaCompanyinthebackroomofhispharmacy,and
appliedtotheU.S.PatentOfficeforatrademark.Atfirst,hemixedthesyruphimself and sold it
exclusively through soda fountains. But soon Caleb recognized that a
greateropportunityexistedto bottlePepsisothatpeoplecoulddrinkitanywhere.
The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially
registered with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup,
using the theme line "Exhilarating, Invigorating, Aids Digestion." He also began
awarding franchises to bottle Pepsi to independent investors, whose number grew
from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15
the following year, and 40 by 1907. By the end of 1910, there were Pepsi-Cola
franchises in 24 states.
Pepsi-Cola international provides advertising, marketing, sales and promotional
supporttoPepsi-Colabottlersandfoodservicecustomers.Thisincludessomeofthe world's
best-loved and most-recognized advertising. New advertising and exciting sales
promotions keep Pepsi-Cola brands young. The company manufactures and sells soft
drink concentrate to Pepsi-Cola bottlers. The company also provides fountain
beverageproducts.
Pepsi is a leader in convenient foods and beverages, with revenues of about $27 billion
and over 143,000 employees. PepsiCo brands are available in nearly 200 countries and
territories.Many of PepsiCo's brand names are over 100-years-old, but the corporation

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is relativelyyoung.PepsiCowasfoundedin1965throughthemergerofPepsi-Colaand Frito-
Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats
Company, including Gatorade, in2001.PepsiCo’s success is the result of superior
products, high standards of performance, distinctive competitive strategies and the high
integrity of our people.

Pepsi Logos:
The Pepsi logo has changed many times over the years. Here's a chronological
history of the various logos.

In 2010, PEPSI changed logo as per following:

History of Pepsi Cola in Pakistan

Pepsi cola is being produced and consumed in 48 countries of world including
Pakistan. The company in Pakistan had its head office in Lahore. The business with
the Bottlers was handled through Franchise Managers. nie bottling companies in
Pakistan produced the Pepsi brands of soft drink. These companies bottling plants
located in
1. Faisalabad

2. Lahore
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 3. Multan.
4. Gujranwala.
5. Karachi.
6. Hyderabad.
7. Sakhar.
8. Peshawar.
9. Quetta

1.2.1-Shamim& Co. (Pvt) Ltd. Multan

Shamim& Co. (Pvt.) Ltd. Was established in 1964, but it started its production in 1967.
Shamim& Co. is a franchise of Pepsi Cola International, which deals in CSD (Carbonated
Soft Drink). Mr. Allah Nawaz Khan Tareen was the founder of the company and also
chairman Pepsi Cola International have 9 (nine) Franchises all over Pakistan. Allah Nawaz
Khan Tareen (Ret. DIG) got license of 7 –UP. But in 1973, it became Pepsi Cola franchise.
Now a day M.D of Pepsi Cola Multan is Alamgeer Khan Tareen son of Allah Nawaz Khan
Tareen. At start Pepsi Multan was having only one production plant made by Netherlands
and was only producing 7 –UP because it was the only brand produced by Parent Company.
In 1973, PEPSI acquired 7 – UP in Canada, so the Multan franchise started producing
PEPSI and Marinada along with 7 –UP & became PEPSI franchise.

Shamim& Co. (Pvt) Ltd. Jail Road Multan is one of them covering 18 Districts & 135
Stations. Shamim& Co. Multan has very committed staff and this is the reason that it
captures more than 70% share of market share. Company has now serviced new
experienced & competent sales staff &

increases this share form 70% to 80 or 90%. As for as Distribution / Placement is conserved
company has a very well-establish distribution network covering whole of the franchise
area. Depending on the potential of the town we have one and more than one distribution in
each town. Sale supervisor / Sale officer is responsible for all the activities of that
distributor. He looks after the stock availability, contingencies and all the routes covered by
the salesman of that distribution. Salesman training is also a main responsibility of sale
supervisor. Company has invested too much money in shape of Coolers, Visi Coolers,
Counters and Cabin. Which are offered to those shops which are producing good sales to
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promote sales& oblige these shops? All the services matters of coolers and maintenance and
look after of these assets are also the responsibility of our sales force.

Coke was already operating in the market at the time when Pepsi Multan established. At
that time Coke was market leader but with the passage of time Pepsi Multan kept on
focusing on gaining the market share. Recently Pepsi has launched a new brand with the
name of Mountain Dew. Now Pepsi Multan is working with five production plants capable
of producing 100,000 cases per day. Installation arrangements for two new plants are in
process. The plant which was installed at the time of establishment has now been grounded.
The company is properly serving all these areas with quality products. PEPSI Multan is not
an ISO certified company because it is an international drink having their own standards
and there is no export.

Unique Features of Shamim& Co. Multan

The company has following distinguishing features:

 Shamim& Company is the biggest soft- drink manufactured in Pakistan having

about 80% of market share.
 Shamim& Company covers the largest area/territory among all Pepsi company’s
franchises in Pakistan.
 Shamim& Company has won quality awards at international level. Also declared
“Bottler of the Year” in the region for outstanding performance.
 It enjoys 80% market share which is the highest for any Pepsi Cola franchise in the
world.
1.3- Nature and Scope of Organization
Shamim and company (Pvt.) Ltd. is a manufacturing company. It produces various
types of carbonated drinks and Juices. Shamim& Co. is committed to provide the
quality soft drink to thecustomers .Shamim& Company has a high number of
professionally qualified persons in Sales, Marketing, Production, Shipping, Finance,
Administration and Technical Departments. The company is offering most popular
brands of softdrinks.

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1.4- Vision of Pepsi Co.
"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.

1.5- Mission of Pepsi Co.

“We aspire to make Pepsi Company the world’s premier consumer Products Company,
focused on convenient beverages. We seek to produce healthy financial rewards for
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 to act with honesty, openness, fairness and integrity”

1.6- Pepsi co Values & Philosophy

Our Values & Philosophy are a reflection of the socially and environmentally responsible
company we aspire to be. They are the foundation for every business decision we make.

Our Commitment

 Sustained Growth
 Empowered People
 Responsibility and Trust

Guiding Principles

We uphold our commitment with six guiding principles. We must always strive to:

 Care for our customers, our consumers and the world we live in
 Sell only products we can be proud of
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  Speak with truth and candor
 Balance short term and long term
 Win with diversity and inclusion
 Respect others and succeed together

1.7- Goals / Objectives of Pepsi Co.

The company operates through well experienced, loyal and hardworking employees. The
first and the most basic plan it to train them according to the changing technology and
computerized environment, and satisfying their needs and requirements. Upgrading
the plant structure and installation of the new machinery are other plans. The company
is planning to increase its sales force and development in its infrastructure in the coming
time period.To provide the customers, a quality-products, along with maximization of
profits.The continuous improvement in quality.

1.8- Products Line

The first product of Shamim& Company was 7-up. The other products are:

 Pepsi Cola
 Miranda
 7-up
 Diet Pepsi
 Mountain Dew

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  Sting
 Slice Juices
 Tropicana Juices
 Aquafina ( Mineral Water)
Pepsi Cola International is a large group covering ;

 Lays Potato Chips

 Kurkure
 Cheetos
STOCK KEEPING UNITS (SKU’s)

1. SSRB This stands for Single Serving Returnable Bottle (Regular)

We are offering Pepsi, Mirinda, 7-Up & Mountain Dew in this group.

2. LRB This stands for “Liter Returnable Bottle” this includes Pepsi, Miranda& 7-Up.
We are not offering Mountain Dew in this class.
3. Pet Bottle (1.5 Liter)
This includes Pepsi, Miranda& 7-Up. This group also does not have Mountain Dew
in their family.

Here Diet Pepsi & 7-Up are also available to enlarge the range of group.

4. NRB This stand for “Non Returnable Bottle”. It can also be called as “Deposable”
It has 300ml quantity. This group includes Pepsi, Miranda, 7-Up, Diet Pepsi & Diet
7-Up.

5. Cane Packing, we are offering cane packing of all that brands that are offered in
SSRB. Including Pepsi, Miranda, 7-Up and Mountain Dew.

6. Post Mix – This includes Fresh / Fountain. This group includes Pepsi, Mirinda,7Up
& Mountain Dew. This facility is offered on “QSR” that stands for “Quick Serving

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 Restaurants” and all those points where no of walk-in-customers in very huge
withtheir short time stay at that point.

Chapter 2

2- Marketing Mix of Pepsi Co.

Marketing mix is “the set of controllable tactical marketing tools- product , price , place and

promotion that the firm blends to produce the response it wants in the target market.”

The variables are known as the marketing mix or The 4 P’s of marketing. These are the variables

that marketing managers can control in order to best satisfy customers in the target market .The
firmattempts to generate a positive response, focus on the target market by blending four
marketingmix variables in an optional manner.

Pepsi cola is soft drink player in the world, Pepsi has implemented several smart strategies in the

last decade to improve its turnover and profits. Pepsi co.’s expansion in snacks like Lays,

Cheetos and Kurkure have given them an edge over Coca cola. Although Coca cola is still the

number one selling brand, Pepsi has reduced their dependency on Soft drinks by expanding

their product mix.

2.1-Products in the Marketing mix of Pepsi

The product is the physical product or service offered to the consumer. In the case of physical

products, it also refers to any services or conversions that are part of the offering.

Stock Keeping Units (SKU’s)

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Package Pepsi Pepsi diet 7 UP 7 UP Free Miranda M.Dew Sting Slice

(juice)

250ml * * * * * * * ×

300ml * * * * * * × ×

500ml * * * * * * × ×

1 liter * * * * * * × ×

1.5 liter * * * * * * × ×

2.25 liter * * * * * * × ×

Pepsi Cola International is a large group covering KFC, Pizza Hut, Burger King, Lays
Potato Chips& Aquafina (mineral water).Pepsi’s snacks segmentis that brands like Lays,
Kurkure
and Cheetos are in great demand. Thus the turnover resulting from the Food products is
helping
the bottom line of the company.
2.2- Price in the Marketing Mix of Pepsi

It is second important tool of marketing mix because it plays a major role in determining the
customer’s choice. Also it is the only marketing tool that results into revenue. The
customer makes a comparison between the prices offered by other companies and PepsiCo
and then selects the most suited offer. Following is the list of prices of different products of
all brands.
Products Price

250ml Rs. 20

1000ml Rs. 65

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1500ml/1750ml Rs. 85

300ml Rs. 35

500ml Rs. 45

250ml Sting Rs. 30

500ml Sting Rs. 60

240ml Slice Juice Rs. 25

Shamim and Co Bottling Company normally uses on going price strategy by seeing its
major competitor Coca Cola besides this company also uses Discount price strategy during
special occasions. Like Ramadan offer.

2.3- Distribution Place in the Marketing Mix of Pepsi

Pepsi has a huge distribution network in Pakistan. It has to be huge because the brand needs
to be present in every nook and corner of the country to increase its sales. The primary
mode of distribution is through distributors who in turn give it to retailers, restaurants, and
convenience stores. The secondary mode of distribution is directly through the company to
bulk buyers and major retailers who buy directly from the company.The company operates
through a well-established network of a number of distributors. The company has two
types of delivery systems i.e.

 Direct deliverysystem

 Indirect deliverysystem

Direct Delivery System:

Pepsi uses its direct distribution system to deliver suppliers. It Supplies the product
directly with Pizza Hut and KFC.

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According to the marketing channel Pepsi uses zero level of marketing channels. It means

Manufacturer Retailers Customers

Indirect Delivery System:

In this system, there are a lot of intermediaries such as distributors, retailers,

wholesaler etc. To make the product available at the right places at the right time in
the market, the sales department

of PepsiCo Company pays major attention on controlling the channel of distribution.

The nature of the channel is as follows:-

Manufacturers Distributor Retailers

Customers

Thebasicdifferencebetweenthedirectandtheindirectdeliverysystemisthatinadirect
distributionsystem,thecompanyspendsitsownsourceswhileinanindirectdistribution;As
cost is saved in the 2nd example, companies are able to give better margins to Bulk
buyers. The major challenge in distribution is the cost of bottling as well as the cost of
transportation.
TERRITORY OF SHAMIM & CO. (PVT) LTD.

District Cover by Shamim& Co.

1. Multan A Zone 2. Jampur

3. Multan B Zone 4. Layyah
5. Multan C Zone 6. Sahiwal
7. Multan District 8. Okara
9. Multan Outskirts 10. Bahawalpur
11. Khanewal 12. Ahmad Pur
13. Mailsi 14. Bahawal Nagar
15. Vehari 16. Haroonabad

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 17. MuzafarGarh 18. Rahim Yar Khan
19. D.G. Khan 20. Chishtian

Major Customers in Multan

Following are some major customers of Pepsi Multan (Shamim and Company) in Multan
city:

 Tasty Food Plus

 Mehboob Bakers
 Ideal Bakers
 Food Festival Network
 Chase Up

Shamim and co identifies their target market in Multan division through following ways:

 General stores
 Cold corners
 Parks
 Traffic areas and public areas

2.4- Promotions in the Marketing Mix of Pepsi co.

Promotion decisions are those related to communication and selling to potential consumers.
Promotions decision involves advertising, public relations, media types, etc. Shamim&
Company main focus is given on the local advertising with respect to the promotion. Pepsi
spend almost a large amount each year on advertisement to tell people about their new
schemes and prices. About 60% of the marketing funds are spent on advertising. Primarily
TV advertising with radio, magazine, cinema and outdoor support. Other promotional items
include: point of sale material, consumer premiums (e.g. clothing, caps), sporting and
concerting sponsorships. Shamim& Company Multan use three source of promotion
1. Electronic
2. Print Media
3. personal Selling
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All are important because each one has its own importance and covers its target area.

Chapter 3

3- Promotion Mix

Promotion mix is “the specific blend of advertising , public relations , personal selling and
direct marketing tools that the company uses to persuasively communicate customer value
and build customer relationship.”

PepsiCo is actively participating in promotion of its products and services through

advertisement and other promotional schemes. PepsiCo spends a major portion of its budget
on advertising. Advertising is done through different ways like Promotion through the their
chillers and other materials such as
refrigerators that are provided to different shops with the LOGO of PEPSI are the ways of
promotions which are included into point of purchase promotions. Marketing by using
different marketing mediums like electronic and print media and using famous celebrities as
endorsers and ambassadors of PEPSI, they mostly use television ads for their promotions.
PepsiCo has also developed its culture among children and Next Generation is its Slogan.
Now Pepsi has become the need of everyone and it is only possible due to its strong
promotion.

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3.1-Advertising

For advertising, it used printed and electronic media. Every newspaper and magazine
carries Pepsi advertisements that make the people interested toward it. Advertisement
of Pepsi are eye catching
and attractive. Through advertising it informs the consumer about new brands and
flavors. Pepsi designs their advertisement campaign focusing on the target markets.
They research for the need of people before make the ads.

3.2-Sale promotion

Pepsi has used a variety of sales promotions over the years. They have used celebrity.

3.3- Public relation

Pepsi is the first product to respond to consumer preference with lightweight,

recyclable, plastic bottles. In addition, different approaches of promotional campaigns
such as press releases have been imposed so as to make the product more appealing to
the target market and to make these product marketable.

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3.4- Personal selling

Pepsi use pull strategy for selling the product. In every occasion Pepsi brings special
offers. Like, they reduce the price; give extra quantity of drinks in the same price.

3.5- Publicity

For publicity Pepsi use social media such as Face Book. Not only that Pepsi use
YouTube to promote its product. It drives public attention toward the product. Pepsi
also use brand ambassador and sponsor cricket team and world cup for publicity.

3.6- Direct Marketing

Pepsi uses its direct marketing to distribute their product through PIZZA HUT, KFC etc.
More than that, they use ecommerce Such as “Refreshment Services Pepsi.com” to market
the product.

Chapter 4

4- The Marketing Environment

“The actors and forces outside marketing that affect marketing management’s ability to build and
maintain successful relationships with target customers.”The larger societal forces that affect the
macroenvironment- economic , political , legal , technological , and competitive forces.

4.1- Competitive Forces

Because of the global nature of its business, PepsiCo faces varying external factors in its
industry environment. However, the overall impact of these factors and the corresponding
five forces are summarized as follows, with indicators of the strengths/intensities of their
forces on PepsiCo:
 Competitive rivalry or competition (strong force)
 Bargaining power of buyers or customers (strong force)

23
  Bargaining power of suppliers (weak force)
 Threat of substitutes or substitution (strong force)
 Threat of new entrants or new entry (moderate force)

4.2- Economic Forces

The economy of Pakistan is strong enough, because of which PepsiCo is affected by

number of economic factors. They are as following:

 The literacy rate is one of the big problem, because of which rural customers are
unable to differentiate between Coke and Pepsi.
 Increasing demand of Pepsi requires installation of new Pepsi plants.
 Combined pricing decisions with mutual agreement between Coke and Pepsi.

4.3- Political Forces

The political conditions in Pakistan are not stable. None of the government has completed
its tenure except the last one. The political factors effect greatly on the industrial sector of
the country.

Following are the important political factors that affect PepsiCo in Pakistan:

 The change in rate of sales tax.

 The change in rate of the major operating variables, such as the electricity.

4.4- Legal and Regulatory Forces

The legal elements are always there to bind the competitors and Pepsi Cola Company. For
instance, various regulations like health safety regulations are great opportunities for Pepsi
cola industry. Many other legal aspects of the governmental reforms also laid a direct
impact on the companies like Pepsi. The legalities sometimes act as the bindings which act
as the hurdle on the way of expansion of the company. There are however possible benefits
of these legal issues as well as they have given as they provide a more organized business
environments to the related companies like Pepsi Cola.

24
4.5- Technological Forces

The current era is of technology, no matter if its information technology or production

technology. These technologies do have the effect on PepsiCo. These are as following:

 In earlier days there was separate plant for the production of different brand size.
Now the new automated plant is capable of producing different brand sizes at the
same time.
 There is very limited automation to keep production record. Most of the record is
maintained manually but currently they are trying to shift towards fully automated
production control system.
 There is no institute in Pakistan providing engineering training regarding beverages
production plants so PEPSI people have to arrange onsite training for its
maintenance engineers to learn working with latest technology plants

4.6- Social Factors

The social factors of each society are different from each other, therefore these also have an
impact on PepsiCo in Pakistan. These are as following:

 Soft drinks and carbonated drinks are now a day’s part of every social gathering.
 The trend of fast food has increased among the youngster, which has led to increase
in consumption of Pepsi.

 PepsiCo Pakistan also takes part in welfare activities, such as, it donated 1 million to
the flood victims in 2010. Free clean water to general public and providing free
lights to the people affected by the war in North Waziristan.
 PepsiCo has also been sponsoring different cricket event and also the Pakistani
cricket team.

25
Chapter 5

5-Market Analysis

As we know that Pepsi is provided among a huge population which is called market.

5.1-Market segmentation Analysis

To distribute it and increasing the revenue the market should be segmented.Pepsi has
segmented their market keeping four major segmentation variables in their mind which are:

 Geographic
 Demographic
 Psychographic
 Behavioral

Geographic Segmentation:
Geographic segmentation means dividing the market into different geographical units such
as nations, regions, states, countries, cities or even neighborhood. Pepsi has put little
emphasis to segment their market geographically. They are doing business almost in
maximum places around the world.

Demographic Segmentation:

Despite the large customer base in the Soft Drink industry, Pepsi prefers to segment itself as
the beverage choice of the “New Generation”, Generation Next, or just as the “Pepsi
Generation”. These terms adopted in Pepsi’s advertising campaigns are what marketers
refer to as Generation X, which are profiled to be between the ages of 18 to 29.

Psychographic segmentation:
Psychographic segmentation divides buyers into different groups based on social class,
lifestyle or personality characteristics. People from samedemographic group can have very
different psychographic makeups. Pepsi’s segmentation has also been emphasized psycho
graphically. Their beverages are very much focusing towards lower and upper middle class
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as they can afford to drink Pepsi. They have a product like“Mountain Dew” a particular
drink which is focused especially who has adventurous personality.Their campaign of this
drink totally focuses to adventurous young people.

Behavioral segmentation:
Behavioral segmentation divides buyers into groups based on theirknowledge, attitudes,
uses or responses to a product. In this segment, Pepsi has been concentrating carefully.
Because they offer in every special occasions, for the people who seek for benefits off their
products, to their loyal customer base. Occasional cases like religious festivals; special days
like mothers’ day, valentine’s day, friendship day, any individual’s birthday or marriage
ceremony or anniversary in a word in every special occasions there are people to whom
buying Pepsi for celebration is must.

Chapter 6
6- Target Market

Market Targeting can be carried out at several different levels. Companies can target very
broadly through “Undifferentiated
Marketing”, very narrowly through “Micromarketing” or somewhere between
“Differentiated Marketing” and “Concentrated or Niche Marketing”. There are four
strategies of market targeting. Pepsi follows the strategy of “Concentrated or Niche
Marketing”. In niche marketing companies goes after a large share of one or a few segments
or niches. Through concentrated marketing, the firm achieves a strong market position
because of its greater knowledge of customer it serves in the niches it serves and the special
reputation in acquires. Pepsi customers are mostly Teenagers and Young Adults between
the ages of 14 to 30.It also targets at Schools, Colleges, Universities, Homes, Restaurants,
Hotels, and Stores. As they are they are promoting their brands to the local customer
groups. They are sponsoring the signboards for the little or big shopkeepers in town.
Theyare also providing refrigerator logoed “Pepsi”. All these they are doing to attract their
target customers. Shamim and co identifies their target market in Multan division through
following ways:
 General stores
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  Cold corners
 Parks
 Traffic areas and public areas

Chapter 7

7- Market Research Analysis

Market research is research into a specific market. Information which is used in marketing
research to identification of marketing opportunities and problems , evaluation of the
marketing actions , monitor marketing performance and improve understanding of
marketing .Marketing research basically define the information required to address the
issues design the methods for information , manage and implementation of collect data ,then
process the collect data , analyze and then communicate the findings and their implications.

7.1- Introduction
As ,the purpose of this report to conduct the need of information relating to marketing
management. The aim of Pepsi Co is delivering strong financial performance and
responsible to the need of our communities. Due to Pepsi's position in the marketplace and
consumers proving to be highly difficult to get to change brands.This section highlights the
introduction of problem facing a company . The problem is that at urban areas the company
at some extent not conveying the order. Company have the shortage of vans. They not fulfill
the demand because of shortage.Therefore , a efficient distribution system is to be made to
overcome these problems.
7.2- Secondary research
Pepsi CO has interests in the manufacturing , marketing and distribution of grain based
snack food , beverages and other products. The Pepsi Co is the merger of Pepsicola
company and frito- Lay Inc. The aim of Pepsi Co is delivering strong financial performance
and responsible to the need of our communities. The objective of conducting this report is
to take a personal visit to the company to gather the whole above mention information.

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7.3- Qualitative research
As shown through market share and profits, Generation Y(today ) and consumers in
general prefer Coca Cola over Pepsi. Pepsi has tried Strongly to combat this and even
undertook a series of blind taste test, in which consumers were shown to prefer the taste of
Pepsi over Coke.

Justification and Considerations

Unfortunately due to Pepsi's position in the marketplace and consumers proving to be

highly difficult to get to change brands, it will be very difficult to get Pepsi to increase its
competitiveness in the current market.

Pepsi is going to have to do something very different and engaging with its products to
break away from the stigma of being second best to Coca Cola. It may mean the brand
moving into a healthy alternative and offering a brand extension.

7.4-Survey Research

Research instrument:

Questionnaire was used as the research instrument to collect the required information.We
gathered all the information by questioning, face to face interactions, and noting down the
data that was told to us by the employees of the organization.We also observe the working
of employees . Our sources were their Marketing and Qualityand Health and safety
officer.We also gather information by analyze production plant when we visit Shamim and
company plant.

7.5- Data Analysis

We gathered all the above data by following

 Observation
 Experiment
 Survey
 Interview
 Group Discussion

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We choice these methods for the data collection because these ways are best to reach our
motto.

7.6- Findings

 Pepsi is the market leader in overall market

 The most popular flavor in the market is Pepsi.
 In the case of schemes coca cola is providing more schemes than
Pepsi.

7.7- Limitations

This report is accurate but there are some limitations because as time passes the some data
update andchange in this report there are mention prices of products which is change or
vary. And the contents are given and we gather data only related to the contents.This is
limitation in our report .

7.8- Conclusion

Everything in this world made to utilize properly, if their use not made proper or it should
not be reached to its proper person or not proper utilized then it become in vein. Thus,
marketing roles plays a very important role to achieve its objectives. The market and the
distribution channels are most important and essential then the product. The product is
secondary. Therefore, like in Pakistan country for a profit , distribution system is very much
essential because a distribution system gives a value added to all products. The conclusion
of this report is all aboveinformation about the Pepsi co.(Shamim & co.) which is done for
our final project of marketing management.

7.9 -Recommendations

The above data reflects the fact that marketing and sales department should introduce
changes in its activities.

 Company should develop policy that the soft drinks and all others products are made
available at all the outlets during the seasons & not let the opportunity to pass.

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 Company should make fridge available at maximum outlets , so that the soft drinks
provided to the customers according to their satisfaction level, because if this not
happens then the market brand loyalty fails. If chilled soft drink is not made
available to the customer then the customer goes to another brand which is chilled.
 The number of vans should be increased so that the every outlets might be covered
properly.
 The behavior of irresponsible salesmen should be convert into a manner able , soft
behavior.
 Company should advertise its all launching scheme by distributing pamphlets to the
dealers.
 Company should also be donate donations as a sense of harmony and giving
discounts to its consumers in special occasions to boost up sales..

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 References

 www.pepsico.com
 https://www.portlandreserch.com
 https://www.slideshare.net/jookerjimesjanendra/pepsi-project
 Marketing Management by Philip Kotler

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