Pepsi Blaze Group

8/7/2019 Pepsi Blaze Group

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PRESENTATION ON THE ESSENTIAL OF

MARKETING MANAGEMENT


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The story of Pepsi originates from a drug store

in North Carolina (U.S) which belonged to a young

man named as Dook Braydham.

Dook invented syrup which customers names as

Braydh.


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In 1898 Braydham officially registered his syrup

with the name of Pepsi cola.

Gradually the sales of Pepsi cola began to pick

up.

In 1903 Pepsi was registered as a brand name in

U.S.A.


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In Pakistan Pepsi was introduced in 1979, in the beginning Pepsidid face a lot of problem because at that time coca cola had

72% market share.

However in 1980 Pepsi was offered as a franchise agreement

with the coca cola company, which they did accept andthereafter it came to be known as Pepsi Cola.


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TO CONTINUE BEING THEMARKET LEADER IN

THE BEVERAGE FIELD


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The objective that the Pepsi company wishes to achieve is

that it wants to remain and continue to be the best or

number one beverage company in Pakistan.

As Pepsi is already the number one beverage company inPakistan but it has to maintain its position, power and

status and in order to achieve their target constant

dedication and hard work is required.

As far as the company is concerned and they are satisfies

with their progress and they wish to expand their marketshare from 72% to 100% driving all their competitors out of

the business.


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The products produced by the Pakistan Beverage Ltd.Comprises of a range of incredibly taste appealing drinks. Thiscompany produces drinks conjugating four flavors.

FLAVOURS DRINKS COLA PEPSI-COLA

LEMON 7-UP

ORANGE MIRINDA

LIME TEAM


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MOUNTAIN DEW is another product, which is a promotion

of a mixed flavor soft drink that typically involves the lemon

and the orange flavor.

The product line extension of Pepsi also include

TROPICANA which has introduced few months before in

Pakistan having a flavor of mango, it is a product called

SLICE which is innovated in a form of TROPICANA.


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Pepsi has adopted market penetration pricing strategy at

that time when it was introduce, coca cola has covered a

large market in Pakistan.

But now the prices of Pepsi is almost same as of itscompetitor that is coca cola.


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SIZES PRICES

Pepsi Regular Rs12

Pepsi(Pet Bottle)5ooml Rs20

Pepsi 1Ltr Rs25

Pepsi 1.5Ltr Rs40

Pepsi Jumbo2.25Ltr Rs55


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The distribution system of Pepsi cola company is organized as

follows:

Firstly there are branches in every city of Pakistan, The branch

in Karachi is headed by a sales manager then there is a sales

executive who is also known as Territory Development

Manager (TDM) who is responsible about the trucks, then

further down is the sales officer who has a wide authority and

then there is a sales supervisor who look after the trucks andfinally salesman.

Each sales manager handles 60 trucks.


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There is also another form of distribution of Pepsi which is

through agencies formed in almost every large area of

Karachi.

The trucks from the company supplies products to these

agencies and then further the agents supplies it to every

possible retailer.


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Pepsi cola company has promoted its product by every means

of promotion. Like for example through electronic media

(television, radio, internet), through print media, through bill

boards etc

The Pepsi have also signed some agreements with some very

strong and expanded retailers.

These exclusive agreements are signed with Pizza Hut and

KFC, So whichever outlet of Pizza Hut or KFC you approachyou will only find pepsi products (and not its competitors).


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Pepsi cola has also signed this agreement with the cafeteria

retailer of IoBM (Institute Of Buisness Management). These agreements are usually based on the incentives that

Pepsi offers to these retailers, for instance fast and efficient

service or by providing Just-In-Time stock ordering facilities.

Pepsi has continued using product endorsement by

using TV actors/models and cricketers, and other famous

celebrities in order to promote their products.


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Pepsi the largest beverage company in Pakistan with 72%market share. It has not been an easier pathway for Pepsi to

gain nearly 3/4

th

of our countrys market share in less timecompare to its biggest competitors Coca Cola Limited.

They have tried to harm Pepsi in some ways or the other.

In 1994, Coke reduced the prices to Rs5 and Pepsi has toreduce their prices in order to compete.

COMPETITORS


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In doing this, both the companies had to bear huge losses.

Coke had a loss of 9 million whereas Pepsi the main sufferer

bearing a loss of 14 million.

This price war was reduced when Coca-Cola agreed not to goon price competition ever again.


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Pepsis market share is

72%

Coca Colas market

share is 28%


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Boston matrix is four-cell matrix,

as shown in the figure.

This matrix compares variousbusiness products in an

organizations portfolio, On the

basis of relative market share

and market growth rate


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Question mark: - thisrepresents conditionas low market shareand high growth rate.

Basically this tells usabout the newlylaunched product,which is Mountain

dew.


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Stars: - this representshigh market share andhigh growth rate .theproduct which has highdemand that is Pepsi butit has high growth rate,because this product isadvertised a lot due to

close competitors.


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Cash cows: - thisrepresents high marketshare and low growth rate.the product, which is

demanded but not, has tobe advertised a lot. Thisgains profits to firm. 7-upand Miranda comes under

this situation.


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Dogs: -this represents the

situation with lowmarket share and low

growth rate because of

more competitors of

similar product in themarket. Slice comes

under this situation.


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Pakistan beverages have scored full marks as far as their

corporate social responsibility is concerned. They take active

interest in activities concerning the social issues. Some of the

elements that prove this fact are listed below. THE SCHOLARSHIP PLAN OF 1991-1993:

In 1991, Pepsi gave a thousand scholarships to students from

class five to masters level. However this project didnt last

long because of some political issues and had to end in 1993.

Still it benefited students of all levels of education.


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The Allahwala Chowrangi Project:

Pepsi participated actively in the Karachi BeautificationScheme. They undertook a project that cost them over Rs.3

Million. This was the Allahwala Chowrangi project.

Pepsi handled many other projects as well. Soon after the

Allahwala Chowrangi, it undertook a project worth of Rs.5Million to build a triangular part opposite Park Towers.

Another project was that of developing the area near the

entry point of the Airport. Pepsi decided to develop and

beautify this area by building two structures holding the

globes of Pepsi.


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As far as personal opinion is concerned I

would initially recommend that the

ingredients of Pepsi as a product should bealtered such that it should give a stronger

taste.

This point is bit more stressed since its

immediate competitor is taking a due

advantage because of Pepsis sweeter taste.


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Moreover Pepsi should start creating awareness about theduplication of its product these days.

There are several companies producing duplicated Pepsi andpeople are not aware about it.

If they try to get hold of the duplicated product then thiscan ruin image of Pepsi in eyes of the consumers. The Pepsiwill lose their consumers if they do not start working on thisas soon as possible.

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