PEPSI Final Copy

Marketing plan of Pepsi

Group Members Submitted to

TABLE OF CONTENT1


................................................................................................................................1 ..........................................................................................................................................1 Group Members...............................................................................................................1 Submitted to.....................................................................................................................1 DEDICATIONS...................................................................................................................7 Introduction .........................................................................................................................8 Executive Summary.........................................................................................................8 Mission Statement............................................................................................................8 Objectives........................................................................................................................9 The Business........................................................................................................................9 Background........................................................................................................................12 Shareholders...................................................................................................................12 Corporate Citizenship....................................................................................................12 PepsiCo Headquarters .............................................13 PepsiCo's History Timeline...............................................................................................14 MAIN PRODUCTS OF PEPSICO....................................................................................16 1. Frito-Lay North America ..........................................................................................17 2. PepsiCo Beverages North America (PBNA) .....................................17 3. PepsiCo International.................................................................................................18 4. Quaker Food North America.....................................................................................19 INGRIDIENTS IN PEPSI.................................................................................................19 Brands Introduced In Pakistan...........................................................................................19 Pepsi Logos....................................................................................................................20 Types of Pepsi................................................................................................................20 Distribution system .......................................................................................................21 Difference......................................................................................................................21 Direct Delivery System..................................................................................................22 Indirect Delivery System...............................................................................................22 Marketing Personnel......................................................................................................24 Macro environmental Analysis..........................................................................................24 Pest Analysis..................................................................................................................24 POLITICAL AND LEGAL...........................................................................................24 Stability of government: ...............................................................................................25 Foreign trade regulation:...............................................................................................25 Attitudes towards foreign country:................................................................................25 ECONOMIC......................................................................................................................26 GDP trends:....................................................................................................................26 Inflaction rate:................................................................................................................26 Unemployment level:....................................................................................................26 Interest Rate:..................................................................................................................26 Energy availability and cost:..........................................................................................27 Disposable income:........................................................................................................27 SOCIOCULTURAL..........................................................................................................27

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Marketing plan of Pepsi Consumer activism: ......................................................................................................28 Growth rate of population:.............................................................................................28 Birth rate:.......................................................................................................................28 Shift in regional distribution: .....................................................................................28 Wage / Price control:.....................................................................................................28 TECHNOLOGICAL..........................................................................................................29 Total government spending for R & D..........................................................................29 Industry spending for R&D...........................................................................................29 New products:................................................................................................................29 Productivity improvements through automation...........................................................29 References:.....................................................................................................................30 Market Analysis.................................................................................................................30 COMPETITIVE PRODUCTS.......................................................................................30 Direct Competitors:........................................................................................................30 Indirect Competitors: ....................................................................................................30 Issues and Opportunities....................................................................................................33 Strengths........................................................................................................................33 Weaknesses....................................................................................................................34 Opportunities..................................................................................................................34 Threats............................................................................................................................35 Goals..................................................................................................................................36 Financial Ratio Analysis................................................................................................36 Marketing goal...................................................................................................................38 Specific Marketing Strategy..............................................................................................39 Launching of new product:............................................................................................39 Product Differentiation Strategy:...................................................................................39 Product Lifecycle: .........................................................................................................40 Prices:.............................................................................................................................40 Profit Maximization:......................................................................................................41 Consumer Satisfaction:..................................................................................................41 Affordable Price:............................................................................................................41 Promotion Strategies..........................................................................................................41 1. Advertising:................................................................................................................41 2. Sales Promotion:........................................................................................................42 Distribution Strategy..........................................................................................................42 Pepsi Production House:................................................................................................43 Warehouses:...................................................................................................................43 Own Vehicles:................................................................................................................43 Market:...........................................................................................................................43 Companys Slogans.......................................................................................................44 Market Dominance.........................................................................................................45 Progress..........................................................................................................................46 By the mid-1990s PepsiCos restaurant business consisted of 28,000 outlets worldwide, more than were owned by any other company. The company also supplied its own restaurants through a separate division, PepsiCo Food Systems (PFS)............46

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Marketing plan of Pepsi In 1997 PepsiCo sold PFS. Also that year, PepsiCo spun off its restaurant chains to form a new company. The move enabled PepsiCo to focus on its beverages and snack foods. In 2001 PepsiCo acquired The Quaker Oats Company, a food and Beverage Company. ......................................................................................................................46 Pepsi in Pakistan............................................................................................................46 Franchise Area Consists Of 9 Districts..........................................................................47 Pepsi Franchises in Pakistan..........................................................................................48 Pepsi in Gujranwala.......................................................................................................49 Chain of command.........................................................................................................51 Departments.......................................................................................................................51 1. Production..................................................................................................................52 Plant Capacity ...............................................................................................................53 Plant capacity.................................................................................................................53 Product Mix.......................................................................................................................55 Product Line...................................................................................................................55 Product line....................................................................................................................56 Product line width..........................................................................................................56 Product line depth..........................................................................................................56 Product / Market Expansion Grid..................................................................................58 Branding Strategy..........................................................................................................59 Brand Positioning...........................................................................................................59 Product attributes...........................................................................................................59 Benefits..........................................................................................................................59 Beliefs and values..........................................................................................................59 Brand Name Selection...................................................................................................59 Brand Development...........................................................................................................60 Brand extensions............................................................................................................61 Multi-brands...................................................................................................................61 BCG...................................................................................................................................62 Growth-Share Matrix.........................................................................................................62 Price...............................................................................................................................63 Competition-Based Pricing............................................................................................63 Market-Skimming Pricing.............................................................................................63 Market-Penetration Pricing............................................................................................63 1. Discount / allowance..................................................................................................64 2. Product-form pricing..................................................................................................64 3. Location pricing........................................................................................................64 4. Time pricing...............................................................................................................65 Risk Analysis and Planning...............................................................................................66 Management Information System..................................................................................67 Communication Channels..............................................................................................67 Implementation and Control..............................................................................................68 Water treatment plant ....................................................................................................68 Profit and loss statement of PEPSICO..............................................................................74 Balancesheet of PEPSICO.................................................................................................75 Frequency...........................................................................................................................77

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Marketing plan of Pepsi favorit cold drink............................................................................................................78 choice of cold drink.......................................................................................................78 price of pepsi..................................................................................................................78 pepsi is best cold drink...................................................................................................78 pepsi commercial is attractive........................................................................................79 source of information about cold drink..........................................................................79 populerity of pepsi.........................................................................................................79 pepsi can increase their market share.............................................................................79 drink used in special function........................................................................................80 availability......................................................................................................................80 drink purchased last time...............................................................................................80 prefrence at the time of non availabilty.........................................................................81 age..................................................................................................................................81 income level...................................................................................................................81 Pie Chart.............................................................................................................................82

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DEDICATIONSThis project is dedicated to all those who have helped us during our project compilation and special thank to our Diligent Teacher Mr. Sohail Islam our Parents who have prayed for us.

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IntroductionExecutive SummaryIn this modern era the term Business is constantly changing with every new coming day. Organizations are becoming more responsive to their customers by employing efficient, skilled and experienced people. Companies are trying to promote their culture at global level by managing a diverse work force. In our research we try fully to depict the true picture of HR aspects and practices in PepsiCo. The following report presents and explains the different aspects through which human resources are manage in the factory. Pepsi is the worlds leading brand in beverage industry. Our main information source was Internet and visits to Pepsi co in Gujranwala. In our experience we explore working of different departments.

Mission StatementOur mission is to be the worlds premier consumer Products Company focused on convenience foods and beverages. We seek to produce healthy financial rewards to 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, fairness and integrity.

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ObjectivesAt Pepsi, the vision is very simple; We have absolute clarity about what we do WE SELL HIGH QUALITY FOOD AND BEVERAGE PRODUCTS. Our success will ensure: customers will build their business, employees build their futures, and shareholders build their wealth.

The BusinessAboutPepsi is a leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. PepsiCo International includes the snack businesses of Frito-Lay International and beverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly 200 countries and territories. 9

Marketing plan of Pepsi 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 and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.

PepsiCos success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people. PepsiCo. Incorporation is a major producer of carbonated soft drinks, other beverages, and snack foods. Basic beverage division is Pepsi-Cola Company, bottles and several popular brands of soft drinks in throughout the world. Soft drink products include Pepsi Diet Pepsi Mountain Dew Team Pepsi Twist Mirinda 7up 7up diet

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Revenue

=

$35.137 billion

Operating income

=

$6.44 billion

Net income

=

$5.64 billion 16.06% profit margin

Employees

=

168,000 All over the world

Other beverages include Lipton Brisk and Liptons brew iced teas, All Sport athletic drink, and Aquafina bottled water. Frito-Lay products include Lays and Ruffles Potato Chips, Fritos and Doritos Corn Chips, Chee-tos Cheese Snacks, Tostitos Tortilla Chips, Rold Gold Pretzels, and Grandmas Cookies.

BackgroundPepsiCo is a world leader in convenient foods and beverages, with 2005 revenues of more than $32 billion and more than 157000 employees. The company consists of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $85 billion. Many of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-for-you items to product choices that contribute to healthier lifestyles. PepsiCos mission is To be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to 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 for honesty, fairness and integrity.

ShareholdersPepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded.

Corporate CitizenshipAt PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute to the quality of life in our communities. This philosophy is expressed in our

sustainability vision which states: PepsiCos 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.

PepsiCo HeadquartersPepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. The seven-building headquarters complex was designed by Edward Durrell Stone, one of America's foremost architects. The building occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world- acclaimed sculpture collection in a garden setting. The collection of works is focused on major twentieth century art, and features works by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens originally were designed by the world famous garden planner, Russell Page, and have been extended by Franois Goffinet. The grounds are open to the public, and a visitor's booth is in operation during the spring and summer. Pepsi is a global company that was originally founded more than 100 years ago and has ballooned into a global power in the food and beverage industry. Pepsi merged with Frito-Lay in 1965. Tropicana was acquired in 1998 and Pepsi merged with The Quaker Oats Company, including Gatorade, in 2001. Pepsi offers product choices to meet a broad variety of needs and preference from fun-for-you items to product choices that contribute to healthier lifestyles. This project examines the company as a whole and explores Pepsis mission and goals, its diverse product portfolio, employment structure and hiring procedures, and market share and profit dynamics. Also touched upon are:

Key factors to the companys success as well as weaknesses in the global economy. How technology is being used in the production and marketing departments is also explored and defined. An information business model has also been created modeled after Pepsis practices and explained how it works for Pepsi as a whole. Pepsi strives to be the world's premier consumer products company focusing on convenient foods and beverages. While doing this Pepsi seeks to produce healthy financial rewards to investors as while providing opportunities for growth and enrichment for employees, business partners and the communities in which it operates.

PepsiCo's History TimelinePepsiCos beverage business was founded 1898 by Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola. Today, Brand Pepsi is part of a portfolio of beverage brands that includes carbonated soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks, isotonic sports drinks, bottled water and enhanced waters. PBNA has well known brand such as Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana juice drinks, Propel, SoBe, Slice, Dole, Tropicana Twister and Tropicana Seasons Best. PBNA manufactures and sells concentrate for some of these brands to licensed bottlers, who sell the branded products to independent distributors and retailers. PBNA provides advertising, marketing, sales and promotional support for its brands. This includes some of the world's best-loved and most-recognized advertising.

In 1992 PBNA formed a partnership with Thomas J. Lipton Co. to selling ready-todrink tea brands in the United States. Pepsi-Cola also markets Frappuccino ready-todrink coffee through a partnership with Starbucks.

Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business. In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time, consumers could enjoy the fresh taste of pure not-fromconcentrate 100% Florida orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became the companys flagship product. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998. SoBe became a part of PBNA in 2001. SoBe manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredients. Gatorade thirst quencher sport drinks were acquired by The Quaker Oats Company in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink. Created in 1965 by researchers at the University of Florida for the school's football team, "The Gators," Gatorade is now the world's leading sport's drink. Beverages North America includes the United States and Canada. Outside the United States, Pepsi-Cola soft drink operations include the business of Seven-Up International. Pepsi-Cola beverages are available in about 160 countries and territories. PepsiCo

Pepsi-Cola began selling its products internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. In addition to brands marketed in the United States, major products include Mirinda and Pepsi Max. PepsiCola North America includes the United States and Canada. Key international markets include Argentina, Brazil, China, India, Mexico, Philippines, Saudi Arabia, Spain, Thailand and the United Kingdom. PepsiCo Beverages International also

produces, sells and distributes Gatorade sports drinks as well as Tropicana and other juices internationally. Pepsi-Cola provides advertising, marketing, sales and promotional support to PepsiCola bottlers and food service customers. This includes some of the world's bestloved and most-recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage products.

MAIN PRODUCTS OF PEPSICO Frito-Lay North America PepsiCo Beverages North America (PBNA) PepsiCo International Quaker Food North America

1. Frito-Lay North AmericaPepsiCo's snack food operations had their start in 1932Major Frito-Lay products include Lays potato chips, Doritos flavored tortilla chips, Tostitos tortilla chips, Cheetos cheese flavored snacks, Fritos corn chips, Ruffles potato chips, Rold Gold pretzels, Sun Chips multigrain snacks, Munchies snack mix, Lays Stax potato crisps, Cracker Jack candy coated popcorn and Go Snacks. Frito-Lay also sells a variety of branded dips, Quaker Fruit & Oatmeal bars, Quaker Quakes corn and rice snacks, Grandmas cookies, nuts and crackers.

2. PepsiCo Beverages North America (PBNA)PepsiCos beverage business was founded 1898 by Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola. PBNA has well known brand such as Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra Mist,

Mug, Tropicana juice drinks, Propel, SoBe, Slice, Dole, Tropicana Twister and Tropicana Season are best.

3. PepsiCo InternationalPepsi-Cola began selling its products outside the United States and Canada in the mid-1930s, opening in the United Kingdom in 1936. Operations grew rapidly beginning in the 1950s. Today, PepsiCo beverages are available in more than 170 countries and territories. Brands include Aquafina, Gatorade and Tropicana. In addition to brands marketed in the United States, PepsiCo International brands include Mirinda, Seven-Up and many local brands. PepsiCo began its international snack food operations in 1966. Today, products are available in nearly 170 countries. Often PepsiCo snack food products are known by local names. These names include Gamesa and Sabritas in Mexico, Walkers in the United Kingdom, Simths in Australia, Matutano in Spain, Elma Chips in Brazil, and others. The company markets Frito-Lay brands on a global level, and introduces unique products for local tastes.

4. Quaker Food North AmericaThe Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company. The figure of a man in Quaker clothes became the first registered trademark for breakfast cereal and remains the hallmark for Quaker Oats today.

INGRIDIENTS IN PEPSIThe Pepsi-Cola drink contains following basic ingredients. carbonated water high fructose corn syrup sugar colorings phosphoric acid Caffeine citric acid natural flavors

Brands Introduced In Pakistan

Pepsi cola Mountain Dew Mirinda Teem 7 up Pepsi Twist Pepsi Diet Aquafine

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

Types of Pepsi Cola Coffee-related Diet-related Fictional Varieties Parodies

Distribution systemThe Company Operates Through A Well-Established Network Of A Number Of Distributors. The Company Has Two Types Of Delivery Systems I.E. Director Delivery System Indirect Delivery System

DifferenceThe Basic Difference Between The Direct And The Indirect Delivery System Is That In A Direct Distribution System, The Company Spends Its Own Resources While In An Indirect Distribution; The Dealer Spends His Own Resources On All The Factors Which Increases The Sales Volume:

Direct Delivery SystemManufacturer Retailers Customers

Indirect Delivery SystemManufacturers Distributor Retailers Customers

Distribution Areas ibliography ement rch distribution chennals in next topics...

Chakwa l Jehlum

Gujrat

Sialkot Narowal Shekupura

M.B Din

Grw Out Grw Out

Grw Base

Shahdara Hafizabad

Most Importantly, This Direct Delivery System Is Present Only In Gujranwala Franchise In Pakistan. The Company Also Has Its Depots (Remote Depots) In Different Cities. It Helps A Lot In Increasing Its Sale And Directing The Distribution System. They Are In Sialkot Gujrat Shahdara Jehlum Sheikhupura Narowal (Recently Established)

Marketing PersonnelThe Pepsi owner and sales staff have historically been an aggressive sales and marketing team. The owner is very selective in hiring his employees. He requires a person with a well qualification. The owner and sales staff work diligently to verbally market their offerings and to create strong name recognition throughout every city.

Macro environmental AnalysisPest AnalysisSocietal environment play very important role in the overall performance of beverage industry in Pakistan. Political, social, economical and technological factors have huge impact in the success or failure of beverage industry in the country. Following portion explains the role of these factors in detailed manner.

POLITICAL AND LEGALPolitical environment of Pakistan play a very important role in the performance of beverage industry in the country. Political variables like tax laws, stability of government, foreign trade regulations, environmental protection laws, attitude toward foreign countries, foreign trade regulations, anti trust regulations are very important for beverage industry in Pakistan. Detailed effect of these variables is given below.

Tax laws:Tax laws of Pakistan are affecting the overall growth and performance of beverage industry in the country. Government has imposed 36% tax on beverage industry on retail price. Which has decreased the overall growth of industry from 20% to 18%? Due to these heavy taxes imposed by the government per capita consumption of beverages is low as compare to other countries in the region. Per capita consumption of beverages in Pakistan is currently 20 serves while it is 120- 250 serves on the basis of single serve of 250ml in other countries of the region.

Stability of government:Frequent changes of government and political tension created by various political parties causing negative impact on the overall performance of beverage industry in the country. Military operation in northern and tribal areas has negatively affected the growth rate of the industry.

Foreign trade regulation:Governments policies about foreign trade are cuasing difficulties for the industry. complex regulations about foreign trade have negatively affected the foreign trade as countries exports growth are decreasing from 14% to 11% and imports growth rate has increased up to 29% . Which has resulted trade deficit from 3.9% to 6%?

Attitudes towards foreign country:Government is trying to have positive attitude towards the foreign countries in order to boast foreign direct investment in the country. Government has taken certain measures in this regard which have affected the performance of beverage industry in positive manner.

ECONOMICEconomic environment of the country is of paramount importance for the beverage industry. Variables in the economic environment play a vital role in the success or failure of the industry. Economic variables like GDP, interest rate, inflation rate, energy availability unemployment level, money supply and disposable income affect the overall performance of the industry up to great extant.

GDP trends:Gross domestic product trend in the country are very important for the performance of the beverage industry. GDP trend in Pakistan is negative as GDP growth rate has decreased from 6.6% to 2.4% in last three years. This negative trend of GDP in the country has affected the beverage industry negatively.

Inflaction rate:Pakistans inflation rate has raised upto 33%. It has reduced the purchasing power of customers. Rapid increase in inflation is causing negative impact on the beverage industry.

Unemployment level:Pakistan employment rate has decreased from 19% to 5% in recent years. . This decrease has positive effect on the industry as beverages are not necessity and are termed as luxury. Therefore employed people spend much on luxuries because of more availability financial resources due to decreased unemployment rate in Pakistan.

Interest Rate:Interest rates are increased in recent year from 10% to 17%. Increase in interest rates has caused unfavorable conditions for the beverage industry.

Energy availability and cost:Pakistan is going through out energy crisis and facing swear difficulties in meeting the energy requirements of industries in Pakistan. Also the cost of energy available is also very high. In this energy crisis scenario it has become very difficult for the beverage industry to conduct its operations smoothly.

Disposable income:There is negative trend in the total disposable income of the country as growth rate has declined in recent years. Pakistans total disposable income was 107507million dollars in 2007, 118338 in yea2008 and 121702 in current year. Also more than 37% population of Pakistan falls below poverty. This causes unfavorable conditions for the beverage industry in Pakistan. .

SOCIOCULTURALSocio cultural environment of the country also play very important role in the overall growth and performance of beverage industry. Sociocultural variables like lifestyle changes, career expectations, consumer activism, and rate of family formation, growth rate of population, regional shifts, and age distribution are very important variables in sociocultural environment. These variables directly affect the beverage industry in Pakistan.

Life style changes:Lifestyle of people in Pakistan has changed up to great extent in recent years. Total spending rate of people on food and beverages has declined from previous years as total as total spending was42.374 million dollars in 2007, 42374 Md in 2008 and 47209 in 2009. This change in lifestyle has caused unfavorable conditions for beverage industry in Pakistan.

Consumer activism:Consumer activism in purchasing luxuries has increased trend in Pakistan due to various reasons like more availability of information to customers which can lead to customer convenient switchover to other alternatives or substitutes. This trend has caused undesirable conditions for beverage industry and affected it in negative manner. This is affect is evident as total consumption of beverages was978 million liters in 2007,1085ML in 2008 and 1186 in 2009.which shows increase with decreasing rate.

Life expectances:Life expectances have increased in Pakistan. Average age has increased from 63 years to 65 years. This has put positive impact on the performance of beverage industry in Pakistan.

Growth rate of population:Pakistans population growth rate has decreased in recent years from 2.3% to 1.7%.It has decreased business volume expansion opportunities for the beverage industry working in Pakistan.

Birth rate:Pakistan birth rate has decreased from 27 per thousand to 25 per thousand. This decreasing trend has lead to less business opportunities for the beverage industry in the country.

Shift in regional distribution:More and more people are shifting from rural areas to urban areas. This is evident as last year total urban population was 55million and rural population was around 106 million. Now it is around 57 million in urban areas and 104 million in rural areas of Pakistan. This increase in shift of population from rural to urban areas has led toward positive impact on the beverage industry in Pakistan.

Wage / Price control:Now industry has to pay more wages as compared to previous years as government has declared 6000 minimum wage rate. Increased wage rate can also

cause undesirable costs for the industry. Also industry must comply with the pricing lists announced by the government.

TECHNOLOGICALTechnological variable like government spending for R&D. Industry R&D, new products, productivity improvement, play vital role in technology environment for beverage industry Pakistan.

Total government spending for R & DAs Pakistan is underdeveloped country there less focus is given by the government to R&D due to lack of financial resources. Which lead to poor innovative creative environment for the beverage industry in Pakistan? Which result less in decreased changes of using improved method of business operations in the industry?

Industry spending for R&DIndustry ha to spend lot of money on R&D as less attention is paid government towards R&D. Due to this industry has to bear huge cost in this regard which result increased overall cost of industry.

New products:Market leaders like Pepsi and Coca cola spend huge amount of funds for product innovation and improvement. These new products are invented in the industry at regular basis in order to gain competitive edge in the industry.

Productivity improvements through automation

Continuous productivity improvements are made by using automotive plants for various process of the business in the industry. Huge investment required for this make the industry less attractive.

References: Pakistan economic survey 2008-2009 Food Technology Pakistan 2008 .htm Beverages Industry High Taxation.htm Social and Economic Indictors of Pakistan For 2005-2006

Market AnalysisCOMPETITIVE PRODUCTSPepsi have following direct and indirect competitors.

Direct Competitors: Cola-Cola Rc-Cola

Indirect Competitors: Packed Juices Fresh Juices Tea

Coffee Drinking Yogurt (Lassi)

Pepsi have competitive advantage over all of their competitive products. Coca-Cola is a main competitor of Pepsi. Both set similar prices for their customers. If we make analysis Pepsi have competitive advantage over Coca-Cola in several cases. Following are the cases in which Pepsi has competitive advantage over Coca-Cola. They have following strengths over Coca-Cola. Strong brand recognition Financial strength Better globalization Product Development Better suppliers and distributors Better growth Better market share Better marketing and advertising

Issues and OpportunitiesStrengths1. Company Image 2. Quality Conscious 3. Good Relation with Franchiser 4. Well-developed strategy 5. Production Capacity 6. Market Share 7. Large number of diversify businesses 8. Hi Tech Culture 9. Sponsorship 10. Good marketing skills and Grasp market region 11. Differentiation advantage 12. Well known company 13. Distributors excellent service. 14. Financial position and credit rating are strong

Weaknesses1. 2. 3. 4.Decline in Taste Political Franchisers Conflict and politics Short Term Approach

Opportunities1. 2. 3. 4. 5.Increasing Population Changing Social Trend Diversification & Market penetration Existing customer base is high Expanding into foreign markets

Threats1. 2. 3. 4.Imitators Government Regulation CO2's Shortage Problem Increase in competition (Other beverages)

GoalsFinancial Ratio AnalysisRatio Current Ratio Quick Ratio Sales to Total Assets Debt Equity Ratio Debt Asset Ratio Inventory Turnover Ratio Days In Inventory PepsiCo (2004) 1.28 0.95 1.05 1.07 0.52 8.2 PepsiCo (2005) 1.11 0.87 1.03 1.22 0.55 8.4 Coca Cola 1.19 0.78 1.03 19.4 11.9 30.67

44.51 days 43,45 days

Description

Last Year Dec 2004 111, 70,200 8, 70, 000 30% 12, 57,000 70, 00,000 37.86%

This Year Dec 2005 200, 00,000 10, 00,000 40% 13, 00,000 75, 00,000 40.69%

Projection Dec 2006 300, 00,000 12, 00,000 50% 13, 47,000 80, 00,000 45.43%

Sales Revenue Sales Unit Volume Average Contribution Margin / Unit Total Fixed Cost Total Net Profit Average Profit Margin / Unit

PepsiCo (2004) PepsiCo Coca Cola (2005) Gross Profit Margin 54.18% 56.46% 47.77% Operating Profit Margin Net Profit Margin Return on Total Assets (ROA) Return on Stockholders Equity Ratio Sales Growth 17.96% 14.40% 15.05% 31.15% 18.19% 12.52% 12.95% 28.62% 26.3% 21.09% 16.04% 30.19%

Ratio

PepsiCo (2004) PepsiCo (2005) 111.28% 96.81% 96.37%

Coca Cola 108.91% 105.03% 104.98%

Net Income Growth Earnings per Share -

Dividends per Share

-

118.8%

100%

Marketing goal

Specific Marketing StrategyProduct StrategiesAdvancement in Products:Advancement in the product means launching new product according to previous product. Pepsi Company launched Diet Pepsi From Pepsi and Diet 7up from 7up. This is called advancement in the product. Pepsi has made very good advancement by launching Mountain Dew recently. They also made advancement in launching very impressive designs of plastic bottles which is hard to break.

Launching of new product:Pepsi sets its quality before launching any product. When they satisfy they launch the product. Then they make survey of their product by tasting.

Product Differentiation Strategy:Pepsi Company always makes product differentiation between their products. They beverages are divided into different categories like diet Pepsi, Diet 7up, and Dew and Miranda some people dont like the taste of Pepsi. They choose Miranda or Mountain Dew or any other brand of Pepsi. It depends on Customer taste and choice.

Product Lifecycle:The Lifecycle of Pepsi consists on the four steps

Introductio n

Growth

Maturity

Decline

Pricing StrategyPrices:Quantity 2.25 Ltr 1.5 Ltr 0.5 Regular 250 ml.

Price 55 45 20 10

It is already decided between Coke and Pepsi about their price strategy. They made the agreement that their prices will remain the same. They also decide the price of their packaging; they also set their strategy on

Cost + Price.

Their cost includes:

Man Power Machinery

Electricity Raw material EmployeesSetting the right price is the most important thing, and Pepsi Cola is doing well. Price is set by keeping in view the quality of the product and the prices which are being offered by the competitors.

Profit Maximization:Pepsi has priced its products to achieve a certain percentage return on its sales. It has settled the price of its products so that it can earns a net profit on its net sales.

Consumer Satisfaction:There is a balance in consumers mind between the price they pay and the quality of the product they purchase.

Affordable Price:The price of Pepsi is affordable for middle level income groups. The price is adjusted according to the demand of the product. When Pepsi Jumbo pack was launched, its price was high as Rs. 60 now they reduced it @ Rs.55 (almost Rs.5.0), causing an increase in demand of the product.

Promotion Strategies1. Advertising:Pepsi cola advertises through various channels Media (Fm media, TV channels, Internet links etc.) News Papers & Magazines Billboards & Banners Sponsoring various Shows and Matches

Free samples

2. Sales Promotion:Pepsi made sale promotion in the following ways: In any event like ramzan-ul-mubarik they decrease their prices e.g; 1.5ltr ----- 45 ----40/35. By launching any new product like Aquafina they get sale promotion in their business. When Aquafina lauched they offered a package of Buy 2 and get 1 free. When Mountain Dew was launched they offered free drinks to people to develope the taste. They have a deal with KFC and Pizza Hut where they offer drinks to their customers. They decrease their prices to increase the sales to capture the market. They also decrease their prices in winter too.

Distribution StrategyPepsi Production house

5 Warehouses (Stock Houses) Own Vehicles

Market

Pepsi Production House:There are 13 bottling plants operating in every major city of Pakistan. They are installed at Lahore, Karachi, Peshawar, Hyderabad, Sukhur, Sialkot, and Faisalabad. Pepsi cola is manufacturing its products in Gulberg, Lahore by Riaz Bottlers.

Warehouses:In Lahore Pepsi have 5 warehouses at different places, which covers and distributes the products at different places in Lahore, these are: 1. Kot lakhpat 2. Out Station Ware House 3. Band Road Warehouse 4. Air Port 5. Plant warehouse

Own Vehicles:Physical distributions of the Pepsi take place through Trucks Toyota carry vans, Suzuki carry vans.There are more than 120 vehicles to distribute the Pepsi. Kot Lakhpat warehouse distribute Pepsi to Gulburge, Model Town, Faisal Town, Garden Town and Kanchi. Outstation warehouse distribute Pepsi to Thokar Niaz Baig and Kasur. Band Road warehouse distribute Pepsi to Band Road and related areas. Airport warehouse distribute Pepsi to Taj Pora and related areas.

Market:Pepsi companys vehicles distribute the products to the shopkeepers, super stores, Restaurants etc. They make advertising through their different channels like newspapers,

magazines, TV shows and banners. They always provide their goods to their customer at convenient location.

Companys Slogans1909-1939: 1939-1950: 1950-1963: 1953-1961: 1961-1963: 1963-1967: 1967-1969: 1969-1973: 1973-1975: 1975-1978: 1978-1981: 1981-1982: 1983-2000: Delicious and Healthful Twice As Much For A Nickel Too The Light Refreshment Be Sociable Now It's Pepsi For Those Who Think Young Come Alive! You're In The Pepsi Generation Taste That Beats The Others Cold You've Got A Lot To Live, Pepsi's Got A Lot To Give Join The Pepsi People Feeling' Free Have A Pepsi Day Catch That Pepsi Spirit Pepsi's Got Your Taste For Life! Pepsi, the Choice of a New Generation

2001-2004: Yeh Dil Mangey Aur 2005-NOW: Dil Hai Tou Mangoo Aur

Market DominanceMany of PepsiCos other products continued to dominate their markets in the 1990s. Sales of Frito-Lay products accounted for about 40 percent of PepsiCos total profits. By the mid-1990s Frito-Lay products made up more than half of the U.S. market for snack chips, and the company owned eight of the top ten chip brands. In 1995 U.S. consumers bought the companys original potato chip brand, Lays, at a rate of 4.5 kg (10 lb) a second. The companys leading product, Doritos tortilla chips, was the best-selling salty snack (packaged) food in America in the mid-1990s. Salty snack foods include chips, pretzels, and nuts, as opposed to non-salty snack Foods such as cookies and cakes. In 1994 Frito-Lay began producing several baked and low-fat versions of some of their snack foodssuch as Baked Lays potato chips and Baked Tostitos tortilla chipswhich soon dominated the companys sales growth.

ProgressBy the mid-1990s PepsiCos restaurant business consisted of 28,000 outlets worldwide, more than were owned by any other company. The company also supplied its own restaurants through a separate division, PepsiCo Food Systems (PFS). In 1997 PepsiCo sold PFS. Also that year, PepsiCo spun off its restaurant chains to form a new company. The move enabled PepsiCo to focus on its beverages and snack foods. In 2001 PepsiCo acquired The Quaker Oats Company, a food and Beverage Company.

Pepsi in PakistanWhen Pakistan came into existence Pepsi Cola International was already in Pakistani areas. Now Pepsi Cola International has 9 plants working in Pakistan at different locations Lahore, Karachi, Gujranwala, Faisalabad, Rawalpindi, Meer-pur, Sakhar, Peshawar, and Multan. The West Asia Division is comprised upon four countries o Afghanistan o Bangladesh o Pakistan o Sri Lanka The company in Pakistan had its head office in Lahore. The business with the Bottlers was handled through Franchise Managers. Eight bottling companies in Pakistan produced the Pepsi brands of soft drink. These companies bottling plants located in Lahore, Faisalabad, Islamabad, Multan, Gujranwala in the central region, and Karachi, Hyderabad and Sakhar in the southern

region. The franchise in Hyderabad, Sakhar and Multan also produced 7-Up. On the other hand, five franchises in Karachi, Lahore, Islamabad, Faisalabad and Peshawar were exclusive producers of 7-Up. Teem and Miranda was the other two brands produced in Pakistan by Pepsis Bottlers. The owners and their Chief Executives managed all bottling companies.

Franchise Area Consists Of 9 Districts1. Gujranwala 2. Gujrat 3. Hafizabad 4. Mandi bahaudin 5. Jehlum 6. Sialkot 7. Narowal 8. Sheikhupura 9. Chakwal

Pepsi Franchises in PakistanCompany Name City Pakistan Beverage Karachi Company Naubahar Company Riaz Bottling Company Haidri Beverage Islamabad Company Northern Bottling Company r Peshawa Lahore Bottling Gujranwala

Punjab Beverage Faisalabad Company

Shamim &Co Sakhar Beverage Company

Multan Sakhar

Pepsi in Gujranwala The owner of the company Naubahar is Mr. Muhammad Shamim Khan Address: S.I.E, Model Town, Gujranwala, Pakistan Pepsi is working in Gujranwala since 1981 Pepsi is working in Gujranwala as a franchise with name of Naubahar Bottling Company Gujranwala (NBC) is a regional based company as a certain areas has been allocated to it under an agreement for its operations. Pepsi has yet introduced 8 brands in Pakistan. Pepsi is working under ISO 9002 standards till for 1998. Naubahar is a largest franchise of Pepsi cola international in Pakistan.

Organ gram

Departmentalization Chart

Business Operational ManagerHuman Resource & International relation Department

Marketing Department Sales Department Fleet Department Distribution Department Account Department

Production Department R&D Department Engineering DepartmentQuality Control

Department

Chain of commandBusiness Manager

1) Production DepartmentAssistant 2) Quality Manager Chief Control Chemist

Account Manager

Departments ManageQuality Control

ManagerProduct & Engineering

ManagerSale & Marketing

Machine Department Eng.

Marketing Manager

3) Marketing Manager DepartmentAssistant R&D

,

Sales Machine&Superviso r

Sales Manager

Services

Sales 4) Marketing ResearchProductioDevelopment & Manager

Assistantn

Man

Department 5)

Distribution Fleet Manager Manager H.R Manager Human Resource Department

6) MIS Fleet Department DistributionManager Manager

7) Shipping & logistics Department 8) Planning & control Department

Executive Workers

1. ProductionProduction is a process of converting (In-put) raw material into (Out-put) finished goods or services. Its like a back bone in any manufacturing organization. All the raw material which is used in the production process is approved by the Pepsi cola international. These materials should be according to the standards of the PCI.

If in any case the material does not match with the standards of the PCI has a right to return it to the supplier. In NBC the main production materials are:

Sugar

Concentrates Water Ammonia etc Co2In this case the entire cost of the material is beard by the supplier. This strong check on the material is because of maintaining the high quality in the products which is the credentials of the Pepsi cola products.

Plant CapacityCurrently the company is operating with five (05) plants. Out of these five (05) plants, three plants are dedicated for the production of only 250 ml rb bottles.

Plant capacityPlant capacity means the maximum capability, on a short tons per day basis, of a processing or refining facility to process

Plant # P 01 #

250ml (rb) -

1000ml ( rb) 1000

1500ml (pet) 500cs/hr

1000ml 250ml (pet) (nr) -

P 02 #

cs/hr 325cs/hr 350cs/ hr 300cs/hr -

P 03 P 04 P 05

# 1500cs/ hr # 1250cs/ hr # 1375cs/ hr -

Description of table{Plant # 01 produces 1500 ml (pet) & 1000 ml (glass) bottles Plant # 02 produces 1000 ml (pet), 250ml (nr) and 1500ml (pet) bottles}

The company has introduced its own mineral water which is called "aquafina" in two packages of 600ml & 1500ml and company is planning to install a plant for juices.

Product MixProduct LineA product line covers the concept of Product line length, that encompasses Line stretching & Line filling. Line stretching is adding products that are higher or lower priced than the existing line Line filling is adding more items within the present price range Both have advantage and disadvantage, but it depends that how the company is going to use these tools for betterment the real scenario does matter. Line extension can be done by changes in these factors: Flavors Colors Forms Ingredients Package Sizes

SALES Description Last Year 2004 8, 70,200 2, 46,500 80,000 $1,494,500 --% of Sales 93% 43% 13% 100% This Year Dec 2005 200, 00,000 3, 53,000 80,000 $1,700,000 14% % of Sales 96% 53% 13% 100% Projection Dec 2006 300, 00,000 6, 57,700 80,000 $1,972,000 16% % of Sales 98% 68% 13% 100%

Pepsi cola Mountain dew Repair/Maintenance TOTAL Growth Rate

Product lineBrand Name 0.5 liter Price 1.5 liter Price Others Price

Dico Springley Aqua safe Askari Aquafina Nestle Panni Sufi

Yes Yes Yes -Yes Yes Yes --

12 14 14 -10 15 10 --

No Yes Yes Yes Yes Yes Yes Yes

-24 24 22 20 20 25 24

--10 liter 6 liter --19liter 19 liter

--60 50 --90 90

Product line width Product line width is the number of different product lines carried by company 2 different product lines are carried by PepsiCo, that are food & beverages

Product line depth Product line depth is the Number of different versions of each product in the line PepsiCo have these different versions in soft drinks

Pepsi Diet Pepsi Mountain Dew Team

Miranda 7up Pepsi Twist 7updiet


Product line consistency is also found here, in future juices will be launched and aquafina is already introduced in market it is now a successful brand.

Product / Market Expansion GridExisting Products Existing MarketsMarket Penetration (Pepsi & team)

New Products

Product Development (Mountain Dew)

New Markets

Market Development (Pepsi Twist)

Diversification (juices in future}

Product market Grid concept is discussed through brief example of Pepsi cola brands.


Branding StrategyBrands are powerful assets that must be carefully developed / managed. Brands with strong equity have many competitive advantages Due to High consumer awareness and developed taste mountain dew is now the most favorite brand, It have Strong brand loyalty

Brand PositioningIt plays a vital role, we see pepsi have another kind of positioning and mountain dew has another kind of image its due to the positioning of both brands that are differently positioned. Basically there are three levels of positioning:

Product attributes That are Least effective until unless the consumer is fully aware

BenefitsThe positive response that a product must reveal, like if its sprite it must quench the thrust.

Beliefs and values That Taps into emotions and expedite the purchase behavior

Brand Name SelectionIt also plays very important role, think for a moment what the brand name Mountain dew reveals?

Marketing plan of Pepsi It Suggest something about the product or its benefits like Pepsi twist, the brand name shows there is some twist in existing Pepsi Its Are easy to say, recognize and remember Its Are distinctive It is extendable It is registered and can be legally protected

Description

Strategic decisions are strongly tied with marketing decisions about product therefore its strategically decide which brands to be Build, hold, harvested, or to be divested 9in future.

Str

Brand Development

Brand development activities are not stagnant in Pepsi cola there is continuous Line extensions and Minor changes are made to existing products, like recently pepsi have introduced lemon flavor with brand name pepsi twist

Portfolio


Brand extensions Successful brand names help introduce new products therefore aquafina water is the best example. People trust that pepsi will introduce a reasonable brand. I will say aquafina has done a good business in very start that none of the other water did, Except Nestle but we can not ignore the fact that is due to the first mover advantage.

Multi-brandsSome times organization have strong network and distribution setup, like PepsiCo posses it. In this kind of situations multiple product entries in a product category is very beneficial these organizations prefer to sell various brands in related categories through the same distribution setup. This is also very cost effective.

Pepsi Cola have a strong distribution network therefore initial cost of selling aquafina is lesser to them than any other competitors. They havent settled another network the same chiller is used to keep the pepsi brands as well as aquafina.


Growth-Share MatrixHigh Marke t Growt h Low Marke t Growt h

BCG

Stars Cash CowsHigh Relative Market Share

Question Marks DogsLow Relative Market Share

High Market Growth & High Relative Market Share produce stars,

like Mountain

Dew

High Market Growth & Low Relative Market Share produces

problem child or question mark Brands like Mirinda that also a carbonated drink like Pepsi twist, some time it earns and some times not. That creates troubling situations also.

Marketing plan of Pepsi Low Market Growth & High Relative Market Share produces the

Cash cows like a running mature brand like Pepsi.

Low Market Growth & Low Relative Market Share produces dog

brands. Like in presence of mountain Dew 7up sales are cannibalized. Company thinks whether to continue this extra brand or to divest it?

2nd PPrice The price is amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service.

Competition-Based Pricing Also called going-rate pricing May price at the same level, above, or below the competition

Market-Skimming Pricing

Setting a high price for a new product to skim maximum revenues layer by layer from segments willing to pay the high price. Cans are the fit example for this, same taste and product is sold at higher prices.

Market-Penetration Pricing

Marketing plan of Pepsi Setting a low price for a new product in order to attract a large number of buyers and a large market share. The standard size bottles are also sold at high volumes and less prices or competitive prices to penetrate in the market.

Pricing Strategies Product Line Pricing is setting price steps between product line items. Like a disposable glass, NR (non-returnable) and RGB (returnable glass bottle) differs in prices however having the same beverage or content. Optional-Product Pricing is pricing optional or accessory products sold with the main product. In KFC if the basic product is zinger pepsi will be an optional product. And a pepsi of 15 Rs. Is sold at 35 Rs.

1. Discount / allowancePromotional allowances & Trade-in allowances are also effectively used ther are several Types of segmented pricing strategies. Different customers have different paying capacity; price differentiation enables to earn higher profits by using this tool.

2. Product-form pricingFresh fountain, canned pepsi, glass bottle pepsi are differently charged. Therefore Juices and carbonated drinks are also differently charged.

3. Location pricingAt tourism places we see high prices are charged, like at Mall Road in murree and big restaurants high prices can generate effectively higher revenues.


4. Time pricingAccording to the seasonality factors prices can be changed, Pepsi Twist was launched for only 3 months in September to December.

The reason of making this new attractive brand is the plant utilization also. Because in this period of winter sale is less than the average sale and plant can be utilized for such kind of activity. All this is also called revenue or yield management


Risk Analysis and PlanningMRDRole of MRD (market research & development) Department

1. Internal data is gathered via customer databases, financial records, and operations reports this internal data give quick/easy access to information sometimes incompleteness or inappropriateness of data to a particular situation cause errors.2. Marketing intelligence is the systematic collection and analysis of

publicly available information about competitors and trends in the marketing environment. Competitive intelligence gathering activities have grown dramatically. Now many there are sources of competitive information. 3. Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. Therefore MRD Dept. conducts research often these are


mostly conducted by the young and energetic internees, keenly looking for market knowledge.

MISManagement Information SystemIt is a system that provides people with either data or information relating to an organizations operations. Information should be such that it should help:

1. 2. 3.

Increases knowledge Reduces uncertainty Bring in form of usage for the intended purpose

Communication ChannelsFollowing Communication Company for instantaneous and effective awareness is using channels.

1. Local Area Network (LAN) 2. Wide Area Network (WAN) 3. Market Information System (MIS) 4. Scheduled Meetings


Implementation and Control Description of the marketing, its analysis (pros & cons) is discussed below. Some problems are related to peak season, some are related to routine work, and some are structural changes. Human right is badly exploited in some conditions. But now per day wage is tremendously improved. There are different suggestion that may help Naubahar to keep there standards with PCI. Almost marketing activities are designed at international level therefore these are very high level strategies. Here the over all consideration is the core organization NBC in which I have worked for as an internee. According t\o my observation I have some ideas that may work.

Water treatment plantWater treatment plant needs a better environment; its a fully noisy and wet place the person working there is even not provided with a single chair to sit. Whole the paper work also gets wet due to moisture. There should be a separate cabin in dry area and a computer should also be provided.


1. 2.

Lab Plant

Quality lab needs better sanitation as during rains water comes inside the lab that creates trouble and dirtiness.

Plant number 5 is also suffering from rainy water gathered inside the plant it should be accounted for a serious action in earliest possible moments.

3.

Quality Control Room

QCR is too noisy and is always wet, this is a very congested place and three people are working here. Sir Atif Afzal, Miss Humaira, and one assistant. This place should be extended or at least Miss Humaira should be given an else cabin.

4.

Tarn-Tarn

In tarn-tarn storage capacity is not enough because when empty flow rise from distributors we cannot store in tarntarn and we have to send empty to Pepsi Town, which is not near to the tarntarn, which waste time and also raise expenses.

5.

Loading Trucks

Marketing plan of Pepsi On the other hand unloading a tuck takes too much time because to unload a truck take about 1hour 15 minutes and 15 minutes for counting and then forklift lift empty for other area then space is free for next truck. This can be solved if we change the position of a truck when truck unload, when unloading is completed it can go and other truck come, and in a meanwhile they can count unload stock and send it through forklift to other area. This thing can Reduces our idle time in which we have to wait and also other trucks have to wait.

6.

Hiring process

In peak season when department need quick labor which hire on daily wages, there hiring process is too long, they have too pass different process, if concerning person not available on seat then they have to wait, and shipping department can not work properly. There are no as such rules or planning how many persons need in one department in peak or in off-season. It can be solved if a specific quota will be allowed to departments that they can hire person suppose quota of one department in a year is 50 peoples if department exceed that limit then they have to give justification to higher authorities to hire that person.

7.

Shipping Dept.

In shipping department, stock is maintaining on daily basis thats way there is needed to maintain stock report on daily basis. In shipping department computer operator make this report. some time formulas create problem and some time report outlook if computer is operator not available on seat or on leave then no body knows how to make that report and if stock report show wrong result then every department on

Marketing plan of Pepsi wrong path because DSR (daily stock report ) daily goes to every concerning department. And if there is backup data is available, because they are making stock report on excel sheet and when ever any problem arise in computer operating system then all data lost. If we want to check previous data we cannot see it because there is not backup available. This problem can be solved if I.T department develop software on which can just enter data and make reports, which we want. With this we can get benefits from that. We can make report easily & quickly and there will be less error chance.

8.reports.

Back Up data

On the backhand Daily stock reporting and other reporting data upgrade automatically, because we make daily stock report with compiling different When ever we need any sort of data about stock we can easily retrieve from database.

9.

Godown

There is extremely poor situation condition at godown # 2. Dirty empty bottles are washed in godown # 2 is with HCL. Which is very hazardous to the people working there is well as it can cause problems when empty is filled. It is a very difficult task to manage vehicles parking at unloading pad, providing way to forklifts transferring empty to the plants, and maintaining

Marketing plan of Pepsi lanes properly. Trunks and other vehicles have to wait for hour in queue for their term No financial or statistical technique is used to calculate what appropriate stock level in a depot is. Empty should be kept under shelter to protect against weather. There is no proper arrangement of empties. There should be kept in an ordered and countable way. Breakage, rejected empty, tin packs and other useless material must be sale out by getting maximum price.

10. MRD Dept.A lot of paper work is idly kept in MRD Dept. that make this area congested. This should be kept some where else.

11. Dirty BottlesBottles that come back in complaints are kept in office these bring bad impact of brand on people coming to office. Why because these contain, dirty bottles, straws, insects, cockroaches etc. therefore these should not be placed in front. Cleanliness is critically required. be another helper also. The person working at conveyor is not sufficient; there should

12. Common Room/Prayer Room

Marketing plan of Pepsi The dinning hall for internees is good, lunch is also good but there is no common room or prayer room for female workers & internees. That is badly needed.


Profit and loss statement of PEPSICOPERIOD ENDING

Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses

27-Dec-08 29-Dec-07 30-Dec-06 13,796,000 13,591,000 12,730,000 7,586,000 7,370,000 6,810,000 6,210,000 6,221,000 5,920,000

5,149,000 412,000 -

5,150,000 -

4,903,000 -

Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items

649,000

1,071,000

1,017,000

(25,000) 564,000 290,000 274,000 112,000 (60,000) 162,000

6,000 983,000 274,000 709,000 177,000 (94,000) 532,000

(11,000) 947,000 266,000 681,000 159,000 (59,000) 522,000

-

-

-

Marketing plan of Pepsi Effect Of Accounting Changes Other Items -

Net Income

162,000

532,000

522,000

Balancesheet of PEPSICOAssets Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets Liabilities Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt 706,000 1,989,000 667,000 310,000 3,672,000 597,000 3,854,000 1,480,000 3,923,000 185,000 510,000 37,000 1,836,000 732,000 308,000 3,423,000 695,000 3,879,000 1,471,000 3,891,000 96,000 483,000 1,417,000 619,000 284,000 2,803,000 569,000 3,711,000 1,417,000 3,758,000 135,000 966,000 1,371,000 528,000 276,000 3,141,000 619,000 3,882,000 1,434,000 3,751,000 155,000 -

13,711,000 13,455,000 12,393,000 12,982,000

1,413,000 234,000 797,000 2,444,000 5,522,000

2,054,000 430,000 2,484,000 5,545,000

1,668,000 312,000 1,980,000 5,521,000

1,675,000 1,408,000 3,083,000 4,784,000

Marketing plan of Pepsi Other Liabilities Deferred Long Term Liability Charges Minority Interest Negative Goodwill Total Liabilities Stockholders' Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity Net Tangible Assets 1,379,000 1,074,000 1,265,000 1,452,000 1,054,000 1,210,000 1,585,000 1,010,000 1,108,000 1,658,000 966,000 1,148,000 -

11,684,000 11,745,000 11,204,000 11,639,000

3,000 3,000 3,537,000 3,322,000 (2,543,000) (2,603,000) 1,842,000 1,830,000 (812,000) (842,000) 2,027,000 1,710,000

3,000 3,000 3,152,000 3,130,000 (2,664,000) (2,703,000) 1,830,000 1,851,000 (1,132,000) (938,000) 1,189,000 1,343,000

($3,376,000 ($3,652,000 ($3,986,000 ($3,842,000 ) ) ) )


FrequencyStatistics source of information about cold drink 30 0 1.97 2.00 1 N Valid Missing Mean Median Mode favorit cold drink 30 0 1.97 2.00 choice of cold drink 30 0 2.47 3.00 price of pepsi 30 0 1.87 2.00 1 pepsi is best cold drink 30 0 2.00 2.00 2 pepsi commercial is attractive 30 0 2.47 2.00 2 populerity of pepsi 30 0 2.30 2.00 2(a) pepsi can increase their market share 30 0 2.00 2.00 2 drink used in special function 30 0 1.80 2.00 1 availability 30 0 1.83 2.00 1

2 3 a Multiple modes exist. The smallest value is shown


favorit cold drinkValid pepsi cocacola others Total Frequency 9 13 8 30 Percent 30.0 43.3 26.7 100.0 Valid Percent 30.0 43.3 26.7 100.0 Cumulative Percent 30.0 73.3 100.0

choice of cold drinkValid taste price quality advertisem ent Total Frequency 8 6 10 6 30 Percent 26.7 20.0 33.3 20.0 100.0 Valid Percent 26.7 20.0 33.3 20.0 100.0 Cumulative Percent 26.7 46.7 80.0 100.0

price of pepsiValid high moderat e low 4 Total Frequency 13 9 7 1 30 Percent 43.3 30.0 23.3 3.3 100.0 Valid Percent 43.3 30.0 23.3 3.3 100.0 Cumulative Percent 43.3 73.3 96.7 100.0

pepsi is best cold drinkValid i think so i don't think so partly think so i don't know Total Frequency 10 11 8 1 30 Percent 33.3 36.7 26.7 3.3 100.0 Valid Percent 33.3 36.7 26.7 3.3 100.0 Cumulative Percent 33.3 70.0 96.7 100.0


pepsi commercial is attractiveValid i think so i don't think partly think so i don't know Total Frequency 7 9 7 7 30 Percent 23.3 30.0 23.3 23.3 100.0 Valid Percent 23.3 30.0 23.3 23.3 100.0 Cumulative Percent 23.3 53.3 76.7 100.0

source of information about cold drinkValid T.v newspap er stores radio Total Frequency 14 7 5 4 30 Percent 46.7 23.3 16.7 13.3 100.0 Valid Percent 46.7 23.3 16.7 13.3 100.0 Cumulative Percent 46.7 70.0 86.7 100.0

populerity of pepsiValid chidren youngster middle agers old agers Total Frequency 6 11 11 2 30 Percent 20.0 36.7 36.7 6.7 100.0 Valid Percent 20.0 36.7 36.7 6.7 100.0 Cumulative Percent 20.0 56.7 93.3 100.0

pepsi can increase their market share

Marketing plan of PepsiFrequency 7 16 7 30 Percent 23.3 53.3 23.3 100.0 Valid Percent 23.3 53.3 23.3 100.0 Cumulative Percent 23.3 76.7 100.0

Valid

by low price by advertising by improving quality Total

drink used in special functionValid pepsi cocacola others Total Frequency 13 10 7 30 Percent 43.3 33.3 23.3 100.0 Valid Percent 43.3 33.3 23.3 100.0 Cumulative Percent 43.3 76.7 100.0

availabilityValid pepsi cocacola others Total Frequency 13 9 8 30 Percent 43.3 30.0 26.7 100.0 Valid Percent 43.3 30.0 26.7 100.0 Cumulative Percent 43.3 73.3 100.0

drink purchased last timeValid pepsi cocacola others Total Frequency 14 9 7 30 Percent 46.7 30.0 23.3 100.0 Valid Percent 46.7 30.0 23.3 100.0 Cumulative Percent 46.7 76.7 100.0


prefrence at the time of non availabiltyValid pepsi cocacola others Total Frequency 12 11 7 30 Percent 40.0 36.7 23.3 100.0 Valid Percent 40.0 36.7 23.3 100.0 Cumulative Percent 40.0 76.7 100.0

ageValid below 20 20 - 30 30 - 40 40 or above Total Frequency 5 17 6 2 30 Percent 16.7 56.7 20.0 6.7 100.0 Valid Percent 16.7 56.7 20.0 6.7 100.0 Cumulative Percent 16.7 73.3 93.3 100.0

income levelValid below 5000 5000 10000 10000 0r above Total Frequency 13 11 6 30 Percent 43.3 36.7 20.0 100.0 Valid Percent 43.3 36.7 20.0 100.0 Cumulative Percent 43.3 80.0 100.0


Pie Chartfavorit cold drinkothers pepsi

coca-cola

choice of cold drinkadvertisement taste

quality

price


price of pepsi4

low

high

moderate


price of pepsi4

low

high

moderate


pepsi commercial is attractivei don't know i think so

partly think so i don't think


source of information about cold drink

radio

stores

T.v

new spaper


populerity of pepsiold agers chidren

middle agers

youngster


pepsi can increase their market shareby improving quality by low price

by advertising


availabilityothers

pepsi

coca-cola


drink purchased last timeothers

pepsi

coca-cola


prefrence at the time of non availabiltyothers

pepsi

coca-cola


genderfemale

male


age40 or above 30 - 40 below 20

20 - 30


income level10000 0r above

below 5000

5000 - 10000

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