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University of Engineering and Technology

Department of Chemical Engineering

MARKETING REPORT ON PEPSI


SUBMITTED BY:
Abdul Mannan Khan ....................................................................................... 2011-CH-05
Zain Arshad Khan .......................................................................................... 2011-CH-37
H. Saad Naseer .............................................................................................. 2011-CH-53
Naveed ........................................................................................................... 2011-CH-75
Husnain Awan ................................................................................................ 2011-CH-89
M. Waqas ....................................................................................................... 2011-CH-93
Asif Dogar ...................................................................................................... 2011-CH-97
Usama Shakil ............................................................................................... 2011-CH-133
Abbas Ali ...................................................................................................... 2011-CH-135
Ahsan Amjad ................................................................................................ 2011-CH-147
Saad Arshad Satti ........................................................................................ 2011-CH-151
Umer Khalid ................................................................................................. 2011-CH-155

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Marketing Report on Pepsi

TABLE OF CONTENTS
Executive Summary ........................................................................................................ 1
Introduction & History ...................................................................................................... 2
Pepsi in Pakistan ............................................................................................................. 2
Pepsi in Lahore ............................................................................................................... 3
Goals & Objectives .......................................................................................................... 3
Competitors Analysis ...................................................................................................... 4
Marketing Strategy .......................................................................................................... 5
Slogans ........................................................................................................................... 5
Marketing Mix .................................................................................................................. 6
I. Product ............................................................................................................................. 6
II. Price .................................................................................................................................. 7
III. Promotion......................................................................................................................... 7
IV.
Place ................................................................................................................................. 8
Target Market .................................................................................................................. 8
Marketing Environment ................................................................................................... 8
Demographic ........................................................................................................ 8
Economic .............................................................................................................. 8
Political Environment ........................................................................................... 9
Cultural Environment ........................................................................................... 9
Positioning Strategy ........................................................................................................ 9
Differential Strategy ......................................................................................................... 9
Product Line Extension ................................................................................................. 10
Challenges .................................................................................................................... 10
Pepsi Consumer Survey................................................................................................ 11
Online Survey Response .................................................................................... 13
Offline Survey Response .................................................................................... 17
Conclusion .................................................................................................................... 18

Marketing Report on Pepsi

EXECUTIVE SUMMARY
Pepsi Cola Pepsi cola Beverages business was founded at the turn of the century by
Caleb Bradham a New Bern N.C druggist who formulated Pepsi Cola. Pepsi Cola
Company now produces and markets nearly 200 refreshments to retail, restaurants and
food services customers in more than 190 countries and territories around the world and
generates revenue of over 18 billion dollars.
In this report history of the company is explained. Thorough role of the company in our
region is studied. Goals and Objectives of the company are mentioned. No Company can
rise to its maximum without its competitors so deep analysis of Coca Cola vs. Pepsi is
made. Over the years Pepsi growing role in the other business such as snacks is also
mentioned. Over the period of time changes in the outlook of the company and the various
elements of the market mix were also studied.
The 4 important Ps of Economics are also studied in this report. Various techniques are
used for the years for increasing the demand of Pepsi throughout the Globe. We have
made efforts for studying the various market strategies and techniques used by Pepsi
over the years to increase their business. We have highlighted the points that have helped
them to develop i.e. The Target market technique.
Up till now all the work is based on facts then we made Public Survey for which we used
two techniques Questionnaire on paper and on Internet. Questionnaire is designed in
such a way that can gather and integrate opinion of maximum general public.

Marketing Report on Pepsi

INTRODUCTION & HISTORY


Pepsi Cola International is world-well-known soft drinks brand. It is a very well organized
multinational company, which operates in 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.
Initially Pepsi was used as cough syrup in America, and sold in pharmacy. But the taste
of that syrup was liked by the people and then added water and carbonation and with the
passage of time it is used as a regular drink and now it is world largest soft drink brand.
In beverage sector pioneer is Coca cola and Pepsi is follower. In 1909 more than 24
American States gave license to Pepsi for sale. Pepsi Cola was first introduced in 6.5
ounce bottle. Pepsi was first registered in 1932.
In 1932 Pepsi Cola was introduced a big bottle of 12 ounce. In 1950, the Pepsi Cola
formula was slightly changed and the sweetness and calories in Pepsi Cola were
decreased. In 1957, the bottle was changed to new attractive bottle and the product line
was also increased by introduction of two more products that were Teem and Marinda.
Today Pepsi Cola is available to more than 100 million of consumers which includes Asia
as well as Europe & Africa.

PEPSI IN PAKISTAN
In Pakistan Pepsi distribution is indirect. Nationwide Pepsi has 67% of market share in
Lahore. Pepsi is always at par as compare to coke. In December, 54% share is captured
by Pepsi, 49% by coke and remaining 1% by other brands. The market in Pakistan is
surely conquered by Pepsi. It has proved itself to be the No.1 soft drink in Pakistan. In
1971, first plant of Pepsi was constructed in Multan, and from there after Pepsi is going
higher and higher.
Pepsi's greatest competitor is Coca Cola. Coca Cola is an international recognized brand.
Cokes basic strength is its brand name and Cokes strategy is not to change the brand
name and logos which are in the consumers mind. But Pepsi thinks that change is must
and if a product is continuously consumed then its utility starts decreasing. Pepsi with its
aggressive marketing planning and quick diversification in creating and promoting new
ideas and product packaging.
When Pepsi was introduced in Pakistan, it faced competition with 7up, lemon and lime
drinks, which was established during 1968, in Multan. Pepsi introduced its lemon and
lime, "Teem" to compete with 7up. It successfully after some years, Pepsi took over 7 UP,
and this enhanced Pepsi's profits and market share. In Pakistan, Pepsi with 7 UP enjoys
70% of the market share whereas the coke just has 20% market shares.

Marketing Report on Pepsi

PEPSI IN LAHORE
Pepsi production was started in Lahore in 1976 by Ex- Governor Saddiq Husain Qureshi.
In 1988, Pepsi plant was buyout by Riaz Bottlers. After 1988, Riaz Bottlers are producing
Pepsi Cola International's products under "Franchising".
The Pepsi Cola International provides all specifications and Riaz Bottlers follow them. In
Pakistan Pepsi distribution is indirect, but in Lahore Riaz Bottlers is the direct distributor
of Pepsi. As far as Riaz bottler concern it is in direct, because having own vehicles and
reaches wholesale and retailers directly. In Lahore and Kasur, Riaz Bottlers are 100%
direct. Riaz bottlers have 8 ware houses, 4 in Lahore and 4 in Kasur, and 240 vehicles
serves product in market. Riaz Bottlers have 18000 outlets on Lahore and Kasoor.

GOALS & OBJECTIVES


The company main objective is to achieve the highest level of quality and their all
strategies are related with this objective. The company is quite successful in achieving
this objective, as they are known for their quality in the market.
Company's second main objective is product development. Along with the product
Quality Company largely emphasizes on the development of the product.
Company's third objective is to increase their revenues from international operations.
At the corporate level, Pepsi has centralized and formal structure. All the policy
matters related to different businesses and regions are made at the upper level and
guidelines are received from the parent office in USA, the routine and local level
decisions are made by subsidiary itself, like the distribution network, marketing etc.
Pepsi has a policy of setting sales targets for each region. They have also the targets
for earning certain level of revenues from each region.
To accomplish their goal of achieving highest quality product. They use their technical
expert terms to visit the different plants and collect samples to send them Tokyo for
lab testing, every month. Now, they are planning for further tightening the quality
standards by forcing the franchisers to use different new techniques for total quality
management. So, those highest quality standards could be achieved. They invite
different experts of franchisers from different countries to participate in short courses
related to quality at different area headquarters.
To accomplish their goal of new product development, they are spending huge
amounts of money on R&D.
For achieving their third goal of increasing international revenues, they are planning
to expand their international operations. Especially, they are targeting to those
underdeveloped countries, which have high GDP and per capita income.
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Marketing Report on Pepsi

COMPETITORS ANALYSIS

VS
Major competitor of PEPSI is Coca Cola.PepsiCo has been steadily losing market share
to Coca-Cola in the carbonated soft drinks market, but PepsiCo PEP +1.03%s true
strength lies in its diversified portfolio which partially shields it from the woes of the CSD
category. PepsiCos leadership in some of the fast growing beverage categories such as
bottled water, juices and sports drinks further enhances its chances to outperform its rival
in the long run. This could play out to its advantage as CSD volumes in developed markets
decline and as health concerns around CSD consumption spread to growth markets.
While PepsiCo will still want to expand its CSD volumes abroad given the growth
potential, its diversification could be a winning formula.
Pepsi reported on that it saw 4 percent growth in net revenue in developing and emerging
markets.
Pepsi reported organic revenue growth of 6 percent for the quarter, driven by pricing. But
economic volatility and unfavourable foreign exchange markets translated into a 3 percent
decline in net revenue.
Operating profit fell 7 percent for Pepsis sprawling regional unit, down to about $295
million from $317 million a year earlier. Revenue grew slowly, especially in India and
Egypt. Pepsi cited foreign-exchange volatility and political unrest, respectively, in those
countries.
Still, for the year to date, Pepsi performed better than it did in 2012, with a 60 percent
boost in operating profit. Revenue has lagged that, declining 3 percent for the year to
date, which suggests the company has cut costs considerably. In 2013 Pepsi out
performed Coca Cola in Europe.

Marketing Report on Pepsi

MARKETING STRATEGY

Slogans

One of the main reason of the popularity of Pepsi is the use of slogans which they use to
attract the costumers.
Following are some of the latest slogans used by Pepsi in Pakistan:

20102011: "Badal Do Zamana"

2011: "Change the game" (India, Bangladesh and Pakistan for the 2011 Cricket
World Cup)

20112012: "Dunya Hai Dil Walon Ki"

2013present: "Dil Maange Abhi"

Marketing Report on Pepsi

Marketing Mix

Marketing mix is the set of marketing tools that the firm uses to follow its marketing
objectives. Marketing mix has a classification for these marketing tools. These
marketing tools are classified and called as the four Ps i.e. Product, Price, Promotion
and Place.

I.

PRODUCT:

Product Variation:
PEPSI has much product deviation in case of brands and packages. This leads it to
different age person as well as different income level people.
Product Range:
PEPSI has a vast product range varying from 250ml to 2250ml.
Packaging:
For protecting the syrup, Pepsi Cola uses the glass as well as plastic bottles of different
quantities:
250 ml Regular Bottle
330 ml Tin
500 ml Disposable Bottle
1000 ml Regular Liter Bottle
1500 ml Disposable Bottle
2250 ml Family pack Disposable Bottle
All products of PEPSI have very attractive packaging. Recently Pepsi has changed its
logo and it is Pepsis 10th biggest change of logo. Because Pepsi thinks that change is
must and consumer needs change and if any product is continuously consumed then its
utility starts decreasing.

Marketing Report on Pepsi

II.

PRICE:

Prices for different packages of Pepsi are as follows:


1. 2250ml CSD---110/2. 1500ml CSD--- 80/3. 500 ml CSD--- 40/4. 300 ml CSD--- 30/5. 250 ml CSD---20/-

III.

PROMOTION:

PepsiCo advertised its products through many different ways e.g. printing media,
electronic media, sign boards etc. Through TV, we have seen different advertisements of
its products such as Pepsi or Dew. PepsiCo also advertise its products by targeting those
favorable television programs, like sports especially.
Cricket, talk shows etc. The use of Posters are also used to create awareness of the
Pepsi. Pepsi has been a dominant sponsor of the Pakistan Cricket
Team since the 1990s. Pepsi promotes its business by using following strategies:
Advertising:
PEPSI has very strong advertising strategies. Pepsi advertises through print and
electronic media. Most of its advertisements focus legend players, actors or actresses
like, Shahid Khan Afridi, Ali Zafar etc. Some of its advertisement mainly communicate to
special age group. Pepsi is more emphasizing on youth like Ahmed Shahzad etc.
because people make icons and they follow their icons.

Latest Promotion of Pepsi During Asia Cup 2014

Incentives to Sales Persons:


PEPSI gives heavy incentives to its sales team for achieving targets. This motivates
employees to work hard and sincerely.

Marketing Report on Pepsi


Incentives to Shop Keepers:
PEPSI team also give incentives & rewards to shop keepers on the basis of their sale.
This can be in terms of freezers, sign boards for shops, as well as in terms of discounts.
Publicity at PEPSI Outlets:
PEPSI do heavy advertisement at its outlets. They put attractive signboards, paint at
different PEPSI outlets.
By Making Good Relations with Key Accounts:
PEPSI have many key accounts in terms of restaurants and shopping malls. They have
very good relation to its key accounts.

IV.

PLACE:

PEPSI has a very vast distributive teams, which main objective is to make PEPSI
available at an arms length. Riaz Bottlers is a direct distributor of Pepsi in Lahore and
Kasoor. They have 8 ware houses in Lahore and 4 in Kasoor. From each and every
warehouse Pepsi team do direct distribution to its customers. PEPSI Lahore is using
direct distribution technique for sale and marketing of its product and 240 vehicles serves
product in market. Riaz bottlers has 18000 outlets in Lahore and Kasoor.

TARGET MARKET
Pepsi customers are teenagers young and adults. It also targets at schools, colleges,
universities, homes, restaurants and stores. 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.

MARKETING ENVIRONMENT
1.

DEMOGRAPHIC

2.

ECONOMIC

Demographic changes and development poses some threats and opportunities. Pepsi
Cola International keeps close tracks of demographic trends and development in the
market. Increasing migration to cities provides opportunity for Pepsi to increase its
production, adjust its prices, accordingly. People are now becoming more aware of
calories and are more conscious about their health. Pepsi begin this trend by offering diet
version for low calories conscious consumers. So Pepsi International keeps a very close
eye on the demographic changes, occurring in Pakistan and then plans its marketing
strategies according to these developments.

Pepsi is a luxury product. It's not like "Rolls Royce", but it is also not like "flour". People
can drink water too instead of Pepsi. But rising income always affects the company. When
people have more disposable income, Pepsi sells more.

Marketing Report on Pepsi

3.

POLITICAL ENVIRONMENT

4.

CULTURAL ENVIRONMENT

Developments in political environment also affect company's strategies. Higher


percentage of sales tax and excise duty has been imposed on the company's product,
which affects the selling price, and ultimately the buying. It affects packaging. Due to
current sales structure, manufacturing bigger packs become unviable.
Current duty structure has affected Pepsis take home packages, i.e. 1.5 liter bottle, 2.25
liter pet and non-returnable packages. 250 ml is the most viable package under current
condition.

Although Pepsi is an international brand, but it is very closely aligned with Pakistan
cultural environment. Pepsi, in Pakistan is no doubt No.1 beverage brand. Yet it is also
recognized as a "National drink". Pepsi's has related its ads and promotion, to
nationalism.
As youth is the target segment of Pepsi, so their changing life styles also provide
opportunities for the company to alter its strategies. Young people are more trendy and
fashionable, and their behavior changes from time to time.
Pepsi's slogan "Choice of a New Generation", has appealed the Pakistani youth a lot,
and the company sales were increased considerably. Then, they shifted to new slogan,
"Generation Next" and now one more step ahead with "Ask for More". Fast
urbanization also provides opportunities to the company. People migrating to cities, are
influenced by the cultural change, and they tend to buy Pepsi more as people in urban
areas are more aware about soft drinks.

POSITIONING STRATEGY
The positioning of Pepsi in the consumer mind is done by the following ways:
Physical Positioning:
Low quantity of caffeine
Available in regular size
Perceptual Positioning:
Refreshing drink
Youth Oriented

DIFFERENTIATION STRATEGY
Pepsi differentiate itself on the basis of its sweeter taste.
Pepsis ads reflect the social, cultural values of Pakistan and main stream
celebrities of Pakistan are used for Pepsis promotions so it is a unique selling
point (USP) of Pepsi.

Marketing Report on Pepsi

PRODUCT LINE EXTENSION


Pepsi has 16 different products in Pakistan:
Soda

Water

Chips

Juices

Pepsi Cola

Aquafina

Lays

Tropicana

7Up

Kurkure

Miranda

Cheetos

7Up Zero
Pepsi Diet
Dew
Sting
Teem
Pepsi Twist

CHALLENGES
The main competitor of the company is the Coca Cola But Gourmet Cola is also a
threat in future
Cola drinks are not good for the health so the awareness level of the people is
increasing
Inflationary Trend in the Market
Electricity Crisis
Poor Law & order situation

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Marketing Report on Pepsi

PEPSI CONSUMER SURVEY


A survey form about the PEPSI cold drinks regarding its use and liking of different people
was conducted by our group. Opinions were recorded and the questions were designed
in such a way to extract maximum possible ideas.

Our Questionnaire
1. Gender:

Male

Female

2. Age?

Less than 18

18-30

30-45

Above 45

3. How many Glasses of Cold drink you drink in a week?

<1

1-3

4-8

>8

4. Why do you prefer Pepsi?

Refreshment

Thirst

Fun

5. What is the reason to believe in Pepsi as a brand?

Quality

Cost

Advertisement

Brand name
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Marketing Report on Pepsi


6. According to you, how do you feel Pepsi as a cold drink?

Very good

Good

Bad

Very bad

7. Are advertisements of Pepsi better than its competitors?

Strongly Agree

Agree

Can't say

Disagree

Strongly disagree

9. Rate the following from 1(lowest) to 5 (highest):


1
2
3

Taste
Slogan
Easily available
Boring and
uncool
Costly
Fun
Celebrity
Endrosement

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Marketing Report on Pepsi

Online Survey Response


Questionnaire Link:
https://docs.google.com/forms/d/165tYm9XYbyW0hV2EqzVhpcko5gy516ZG84KLZsWX
jT8/viewform

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Marketing Report on Pepsi

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Marketing Report on Pepsi

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Marketing Report on Pepsi

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Marketing Report on Pepsi

Offline Survey Response


Gender
Male: 70%

Female: 30%
Age

Less Than 15: 0%

16-30: 100%

30-45: 0%

More Than 45: 0%

How many Glasses of Cold drink you drink in a week?


<1: 30%

1-3: 40%

4-8: 25%

More Than 8: 5%

Why do you prefer Pepsi?


Refreshment: 60%

Thirst: 25%

Fun: 15%

What is the reason to believe in Pepsi as a brand?


Quality: 22.5%

Cost: 0%

Advertisement: 30%

Brand Name: 47.5%

According to you, how do you feel Pepsi as a cold drink?


Very Good:12.5%

Good: 70%

Bad: 15%

Very Bad: 17.5%

Are advertisements of Pepsi better than its competitors?


Strongly Disagree:
30%

Agree: 37.5%

Cant Say: 15%

Strongly Agree:
17.5%

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Marketing Report on Pepsi


Rate the following from 1(lowest) to 5 (highest)
1
2
3

17.5%

20%

30%

20%

12.5%

Slogan

10%

10%

17.5%

47.5%

15%

Easy
Availability

2.5%

7.5%

10%

12.5%

67.5%

Boring &
Uncool

32.5%

40%

22.5%

2.5%

2.5%

Cost

7.5%

20%

47.5%

10%

15%

Fun

15%

27.5%

25%

30%

2.5%

Celebrity
Endorsement

7.5%

15%

20%

37.5%

20%

Taste

TOTAL RESPONSES: 84
CONCLUSION
Pepsi has a long-term standing commitment protecting the consumer whose trust and the
confidence its products is the bedrock of its success. In order to ensure that consumer
stay informed about the global quantity of all Pepsi products sold in world, Pepsi products
carry a quality assurance seal on them. Pepsi commitment is to deliver sustained growth
through empowered people, acting with responsibility and building trust.
PepsiCo offers product choices to meet a broad variety of needs and fun for you items
contribute to healthier lifestyles. A companys promotional efforts are the only controllable
means to create awareness among public about itself, the products and the services it
offers influences their attitudes favorably.
Pepsi is a brand who catches the heart of consumers and the attention of the youngsters.

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