SWOT ANALYSIS

Strengths
1. In Pakistan specifically, carbonated drinks enjoy a substantial growth rate worth 6.4%
between 2004 and 2009, and occupied 63.7% of the market share.
2. Consumption is second nature to most people who classify themselves as Pepsi
consumers.
3. As such the greatest opportunity for Pepsi is that it can perform successful diversification
and attach their brand name to a brand new line of products and still be recognized.
4. This also makes distribution a strong point for Pepsi Pakistan with 62 units operating
nationwide.
5. Pepsicos tailor made strategy for the country capitalizes on values of family orientation,
which can clearly be seen in how they seem inclined towards promoting family packs and
other larger forms of distribution.
6. This in turn determines prices accordingly, as can be studied in the strategy section in
detail.
Opportunities
1. Another pertinent example of strength could be that of the innovative fountain beverage
dispensers which allow consumers to interactively create customized beverages with
technological correspondence.
2. Since Pepsi is affiliated with a plethora of eateries in Pakistan, it can maximize its ideal
of on-premise and take-home operations equally well.
3. A recent opportunity revolves around a corporate focused government and this allows
Pepsi to take advantage of many new ventures such as Disneyland in Lahore and newer,
better dining hot spots.
4. As a major contributing entity to the economy Pepsi enjoys a lucrative position to employ
a vast chunk of the local workforce and keeping its production process as good as it ever
was.

Threats and Weaknesses

1. Maintaining a price of a Rupees 75 product is central to the marketing strategy since it

sustains Pepsis position in its customers view.
2. Pepsi aims to generate the element of addiction among the population so that seasonal
changes do not deem the usual consumption levels vulnerable.
3. If in case of unforeseen changes such as changing government regulation, tax hikes and
so forth, Pepsi can suffer by having to increase its price and consequently losing its
market share.
4. Moreover, due to a generally poor level of transportation and packaging facilities in
Pakistan, prices in most northern areas are much higher than the standardized prices: this
is a pertinent weakness which calls for greater check and balance for it may take away
from not only Pepsis demand but also its repute.
5. The most important threat is of course that posed by its premier competitor Coca-Cola,
and in the case of Pakistan, seasonally relevant drinks such as Roof-Afza and Jaam-eShireen (as is the case in Ramadan).
6. Since Pepsi follows a push based supply chain management system, it has to
continuously penetrate its own market and reinforce consumption among population.
7. Furthermore, all major marketing decisions are made by PepsiCo the parent company,
and not offspring branches or local franchises; any maneuver good for the global market
may or may not suit Pakistan. The associated need to mitigate this additional risk can be
disadvantageous for Pepsi.
8. Since sporting fevers are quite possibly the heart of Pakistani customs, this is a
partnership Pepsi is sure to gain from for indefinite periods of time. However, this
approach is rather obsolete and fades in comparison to contemporary campaigns such as
Coca-Colas Coke Studio.