Mohammad Ali Jinnah University

Department OF business Administration Islamabad Campus Fall semester 2009

Marketing Management MKT2013

SUBMITTED TO:

M i ss Si dr a Par a c ha
SUBMITTED BY:

Muhammad Ehsan Afzal

MB083086

Case Study Analysis Assignment

Business strategy:
THE PEPSI_COLA STORY

Introduction

PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola. Today the capital of Pepsi cola is about 29$billion and its has more then 150,000 employees in more then 200 countries. PepsiCo, is one of the most successful consumer products company in the world

Today
Pepsi is one of hundreds of products manufactured by the PepsiCo Corporation. PepsiCo is a world leader in convenient foods and beverages, The company consists of the snack businesses of Frito-Lay North America today the Pepsi has almost 100 brands and its market share is highest in Asian market

Strategic Posture
1. Mission:
PepsiCo's overall mission is to increase the value of shareholder's investment. They do this through sales growth, cost controls and wise investment of resources. They believe their commercial success depends upon offering quality and value to their consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to their investors while adhering to the highest standards of integrity.

2. Objectives:
PepsiCos objective is to increase the value of our shareholders' investment through integrated operating, investing and financing activities. The main objective of Pepsi cola is to provide superior quality product to their customer and try to launch new produce and taste according to the need of the consumer PepsiCo's company objectives are based on one question: "What exactly is it that enables the best consumer product companies to grow year in and year

3. Policies:
Treating all customers with respect, sensitivity and fairness, while providing some of the greatest products on earth. We respect individual differences in culture, ethnicity and color. PepsiCo is committed to equal opportunity for all employees and applicants. Corporate program for training employees how to work and manage in an inclusive environment.

Positioning of Pepsi cola

Brands
PepsiCo has hundreds of brands. These are some of the best known 3D, s snacks 7UP Pepsi-light Pepsi Limn Aquafina drinking water Lays potato chips Lipton iced tea

Target market
PepsiCos target market can be people of all ages because of their wide range of products: they include Gatorade, lays, Tropicana, and quacker, and their products are classified under many categories. Their target market is very diverse. Pepsi customers are mostly young group between the ages of 14 to 30 and also target at school restaurant collages universities and etc

Competitors:
Every product has competitors and today the main competitors of Pepsi cola are Coca cola Ammart cola Qibla cola Red bull Mecca cola

Our Brand Portfolio

Our products can be found in nearly 200 countries around the globe. Take a closer look at the brands that make up the PepsiCo portfolio and learn more about the products they offer. Our company is comprised of muscular brands that compete globally from beverages to snacks; we offer consumers a broad range of product choices

Pepsi Cola Marketing Mix

Pepsi Co., one of today's leading soft drink companies, PepsiCo. Is amongst the most successful consumer product companies in the world. The company consists of the Pepsi-Cola which is the world's second largest beverage company, Frito-Lay Company which is the world's largest manufacturer and distributor of snack chips, and Tropicana Products, Inc. which is the world's largest marketer and producer of branded juices Frito-lays and Tropicana are the brands of Pepsi Cola Company

4ps
Product Place (Distribution) Promotion Price

Product
The goods and service combination the firm offers to the target market. Our brand name. Product line (Pepsi diet, Pepsi max, etc)

Price
Social and External Prices vs. Monetary Cost Who are the clients? Money making for organization? Benefits/barriers for clients?

Place
Best place to offer program. Best time to offer program. Through what channels are we distributing program.

 Competitive advantage lies in distribution

Promotion
Deals with communication that program planners. Useful Techniques in Promotion a. TV advertisement. b. Packages & Religious offers c. (Ramadan Packages, Special EID offers)

Values of Pepsi. Co
Focus all our resources to our company Encourage new and innovative ideas Dedicate ourselves to continuous growth in sales, profit and size of organization. Work as a team.

Pepsi's Global Strategy

When the "You're in the Pepsi Generation" advertising campaign launched in 1963, it may have been the first time a brand was marketed primarily with an association to its consumers attitudes. A decidedly youth-oriented strategy, the campaign hoped to hook young Baby Boomers while they were still young. In 1984 Pepsi launched another long-running campaign,

Future strategy
1) In future Pepsi-Cola should improve the design of the package first. As it is advertised as" the choice of new generation", the design must be looked young and fresh. So the color should be more sharp and attractive. 2) As the flavor and ingredients of cola in the market are similar and the most active consumer is the young people, we can diversify the Pepsi production to meet the different need of the consumers. That is customer-orientated 3) Besides the Diet cola for the ladies, we can have many other new choices. For example, we can create a new kind of cola more suitable for children. Maybe we can add the Vitamins or

some nutritious element that are necessary to children. Or we can create a new flavor like mintcola and the cola with very light alcoholic which is more suitable for the adults.

Swot Analysis of Pepsi Co.

Strength
Strong brand name Reasonable prices High Packing quality Valuable customer relationship Great brands, strong distribution, innovative capabilities PepsiCo sells three products through the same distribution channel. Pepsi has a broader product line and outstanding reputation. For example, combining the production capabilities of Pepsi, Gatorade and Tropicana is a big opportunity to reduce costs, improve efficiency and smooth out the impact of seasonal fluctuations in demand for particular product.

Weakness
Financial problems Limited resources Pepsi hard to inspire vision and direction for large global company. PepsiCo is far away from leader Coca-cola in the international market - demand is highly elastic.

Opportunity
Possible growing demand Affordable prices and good quality Introduce more capital Introduce new brand Try to Food division should expand internationally

Threats
Political/legal factors

 Competitive Resources factors Economical factors

Market description
The Pepsi has become the largest selling soft drink in the world it is liked by people of all ages belonging to different fields, casts and regions A recent survey show about 90% of the world population can prefers Pepsi drink because Pepsi give them high quality but also gives a large variety of other flavor and new drinks

Current market situation

Pepsi promote itself as the choice of the new generation the Pepsi cola can spent 637 million dollars over five years is to introducing the new rich blue coloring of its packing the Pepsi cola has always create tuff competition for their market competitors

SMART Analysis
The SMART stand for specific, measurable, achievable, realistic and timed SPECIFIC: Be precise about what you are going to achieved

MEASURABLE: The production and quantity should be measurable ACHIEVABLE: To analysis the objective should be measurable or not REALISTIC: TIMED: Do you have the resources to make the objective happen? State when you will achieve the objective

Strategy Mapping

STRATEGIC POSTURE

Mission

Objective

Policies

POSITIONING OF PEPSI COLA

Pepsi Brands

Target Market

Competitors

Brand portfolio

MARKETING MIXS 4ps

PepsiCo is one of the leading company, it is second largest brand used in all over the world and 1st largest brand in Asia

Products

Place

Promotion

Price

PEPSI GLOBAL STRATEGY

Future strategy

In Future Pepsi Company should change their design of bottle Future strategy of Pepsi cola is to introduced new taste and flavor In Future Pepsi Company can also invest their money for promotion purpose

SWOT ANALYSIS OF PEPSI COMPANY

Strength

Weakness

Opportunities

Strong brand name Reasonable prices High Packing quality

Financial problems Limited resources

Possible growing demand Introduce more capital Introduce new brand

Threats

Political/legal factors Competitive Resources factors Economical factors MARKET DESCRIPTION

Current market situation

Smart analysis

PEPSI

Specific Measurable Achievable COLA LOGOS Realistic and Timed

Slogans
One of the main reasons for the population of Pepsi is use of slogans which they use to attract the customers the some of the slogan used by Pepsi colas area as following 1939 1950 1963 1975 1981 1992 1995 1998 2003 2007 2008 twice as much for a nickel any weather is Pepsi weather come alive youre in Pepsi generation have a Pepsi day Pepsi got your taste for life be younger, have fun, drink Pepsi nothing else is a Pepsi yeh dill mango more yah pyas haa badi more happy pepsify karo gaa

Conclusion
Pepsi co is one of the most successful consumer products companies in the world. Pepsi-Cola developed fast and became the strongest competitor to the Coca-Cola and now Pepsi shared 80% of the market. It is a big threat to the Coca-Cola. Today PepsiCo. Operates three major businesses: Snack Foods, Beverages, and Quaker oats. The company's snack-food products

include Fritos, Doritos, and Tostitos corn chips; Lay's and Ruffles potato chips; Cheetos cheeseflavored snacks; Rold Gold pretzels; and Cracker Jack candy-coated popcorn