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The History Of Pepsi-Cola
1893--Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimentingwith many different soft drink concoctions; patrons and friends sample them at his drugstore sodafountain.
1898--One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated water,sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898. Pepsi-Colareceives its first logo.
1902--The instant popularity of this new drink leads Bradham to devote all of his energy todeveloping Pepsi-Cola into a full-fledged business. He applies for a trademark with the U.S. Patent
Office, Washington D.C., and forms the first Pepsi-Cola Company.
1903--"Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a rentedwarehouse; he sells 7,968 gallons of syrup in the first year of operation.
Pepsi's theme line is "Exhilarating, Invigorating, Aids Digestion."
1904--Bradham purchases a building in New Bern known as the "Bishop Factory" for $5,000 andmoves all bottling and syrup operations to this location. Pepsi is sold in six-ounce bottles. Salesincrease to 19,848 gallons.
1905--Pepsi-Cola's first bottling franchises are established in Charlotte and Durham, NorthCarolina.
Pepsi receives its new logo, its first change since 1898.
1906--Pepsi gets another logo change, the third in eight years. The modified script logo is createdwith the slogan, "The Original Pure Food Drink."
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There are 15 U.S. Pepsi bottling plants. The Pepsi trademard is registered in Canada. Syrup salesrise to 38,605 gallons.
The federal government passes the Pure Food and Drug Act, banning substances such as arsenic,lead, barium, and uranium, from food and beverages. This forced many soft drink manufacturers,including Coca-Cola, to change their formulas. Pepsi-Cola, being free of any such impurities,
claimed they already met federal requirements.
1907--Pepsi-Cola Company continues to expand; the company's bottling network grows to 40franchises. Pepsi-Cola sells more than 100,000 gallons of syrup.
Pepsi trademark is registered in Mexico. Syrup sales rise to 104,026 gallons.
1908--Pepsi-Cola becomes one of the first companies to modernize delivery from horse drawn cartsto motor vehicles. Two hundred fifty bottlers in 24 states are under contract to make and sell Pepsi-Cola.
1909--Automobile race pioneer Barney Oldfield endorses Pepsi-Cola in newspaper ads as "A bullydrink...refreshing, invigorating, a fine bracer before a race."
1910--The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina.
1920--Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you."
1923--Pepsi-Cola Company is declared bankrupt and its assets are sold to a North Carolina concern,Craven Holding Corporation, for $30,000.
Roy C. Megargel, a Wall Street broker, buys the Pepsi trademark, business and good will from
Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation.
1928--After five continuous losing years, Megargel reorganizes his company as the National Pepsi-Cola Company, becoming the fourth parent company to own the Pepsi trademark.
1931--U.S. District Court for Eastern District Virginia declares the National Pepsi-Cola Companybankrupt, the second bankruptcy in Pepsi-Cola history.
The Loft candy company acquires the National Pepsi-Cola Company. Charles G. Guth, president ofLoft, assumes leadership of Pepsi and commands the reformulation of Pepsi-Cola syrup formula.
1933--By the end of the year, Guth's new Pepsi-Cola Company is insolvent. In a series of moves, heacquires Megargel's interest in the company, giving himself 91% ownership of Pepsi.
1934--A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales, thecompany begins selling its 12-ounce drink for five cents (the same cost as six ounces of competitivecolas). The 12-ounce bottle debuts in Baltimore, where it is an instant success. The cost savingsproves irresistible to Depression-worn Americans and sales skyrocket nationally.
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Caleb Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies at 66 (May 27th, 1867-February19th, 1934).
1935--Guth moves the entire Pepsi-Cola operation to Long Island City, New York, and sets upnational territorial boundries for the Pepsi bottler franchise system.
1936--Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000.
1938--Walter S. Mack, Jr., V.P. of Phoenix Securities Corporation is elected President of the Pepsi-Cola Company. Mack, who considers advertising the keystone of the soft drink business, turnsPepsi into a modern marketing company.
1939--The "Pepsi & Pete" comic strip introduces the "Twice as much for a nickel" theme in
newspapers.
Pepsi-Cola Company names Mack as CEO.
The Board of Directors removes Guth from the Pepsi payroll after he plans to personally acquire acompeting cola.
1940--Pepsi-Cola Company makes advertising history with "Nickel, Nickel," the first advertisingjingle ever broadcast nationwide on radio.
1941--The New York Stock Exchange trades Pepsi's stock for the first time.
In support of the war effort, Pepsi's bottle crown colors change to red, white, and blue.
1943--Pepsi's theme line becomes "Bigger Drink, Better Taste."
1948--Corporate headquarters moves from Long Island City, New York, to midtown Manhattan.
1950--Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steele's wife, Hollywoodmovie star Joan Crawford, is instrumental in promoting the company's product line.
Pepsi receives its new logo, which incorporates the "bottle cap" look. The new logo is the fifth in
Pepsi history.
1953--"The Light Refreshment" campaign capitalizes on a change in the product's formula thatreduces caloric content.
1955--Herbert Barnet is named President of Pepsi-Cola.
1959--Pepsi debuts at the Moscow Fair. Soviet Premier Khrushchev and U.S. Vice President Nixon
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share a Pepsi.
1960--Young adults become the target consumers and Pepsi's advertising keeps pace with "Now it'sPepsi, for those who think young."
1962--Pepsi receives its new logo, the sixth in Pepsi history. The 'serrated' bottle cap logo debuts,
accompanying the brand's groundbreaking "Pepsi Generation" ad campaign.
1963--After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall is namedCEO of Pepsi-Cola Company.
Pepsi-Cola continues to lead the soft drink industry in packaging innovations, when the 12-ounce bottle gives way to the 16-ounce size.
Twelve-ounce Pepsi cans are first introduced to the military to transport soft drinks all over theworld.
1964--Diet Pepsi, America's first national diet soft drink, debuts.
Pepsi-Cola acquires Mountain Dew from the Tip Corporation.
1965--Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and Pepsi-Colamerge, forming PepsiCo, Inc.
Military 12-ounce cans are such a success that full-scale commercial distribution begins.
Mountain Dew launches its first campaign, "Yahoo Mountain Dew...It'll tickle your innards."
1970--Pepsi leads the way into metrics by introducing the industry's first two-liter bottles. Pepsi isalso the first company to respond to consumer preference with light-weigh, recyclable, plasticbottles.
Vic Bonomo is named President of Pepsi-Cola.
The Pepsi World Headquarters moves from Manhattan to Purchase, NY.
1974--First Pepsi plant opens in the U.S.S.R.
Television ads introduce the new theme line, "Hello, Sunshine, Hello Mountain Dew."
1976--Pepsi becomes the single largest soft drink brand sold in American supermarkets.
The campaign is "Have a Pepsi Day!" and a classic commercial, "Puppies," becomes one ofAmerica's best-loved ads. As people get back to basics, Pepsi is there as one of the simple things inlife.
1977--At 37, marketing genius John Sculley is named President of Pepsi-Cola.
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1978--The company experiments with new flavors. Twelve-pack cans are introduced.
1980--Pepsi becomes number one in sales in the take home market.
1981--PepsiCo and China reach agreement to manufacture soft drinks, with production beginning
next year.
1982--Pepsi Free, a caffine-free cola, is introduced nationwide. Pepsi Challenge activity haspenetrated 75% of the U.S. market.
1983--Mountain Dew launches the "Dew it to it" theme.
1984--Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a NewGeneration."
Lemon Lime Slice, the first major soft drink with real fruit juice, is introduced, creating a new
soft drink category, "juice added." In subsequent line of extensions, Mandarin Orange Slice goeson to become the number one orange soft drink in the U.S.
Diet Pepsi is reformulated with NutraSweet (aspertame) brand sweetener.
1985--After responding to years of decline, Coke loses to Pepsi in preference tests byreformulating. However, the new formula is met with widespread consumer rejection, forcing there-introduction of the original formulation as "Coca-Cola Classic."
The cola war takes "one giant sip for mankind," when a Pepsi "space can" is successfully testedaboard the space shuttle.
By the end of 1985, the New Generation campaign earns more than 58 major advertising and film-related awards. Pepsi's campaign featuring Lional Richie is the most remembered in the country,according to consumer preference polls.
1986--Chairman Donald M. Kendall retires and is succeeded by D. Wayne Calloway.
7-Up international is acquired in Canada.
Pepsi-Cola acquires Mug Root Beer.
1987--Pepsi-Cola President Roger Enrico is named President/CEO of PepsiCo WorldwideBeverages.
Pepsi-Cola World Headquarters moves from Purchase to Somers, New York.
After a 27 year absence, Pepsi returns to Broadway with the lighting of a spectacular new neon signin Times Square.
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1988--Craig Weatherup is appointed President/CEO of Pepsi-Cola Company.
1989--Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation Ahead."
Chris Sinclair is named President of Pepsi-Cola International.
Pepsi-Cola introduces an exciting new flavor, Wild Cherry Pepsi.
1990--American Music Award and Grammy winner rap artist Young MC writes and performssongs exclusively for national radio ads for Pepsi. Ray Charles joins the Pepsi family by endorsingDiet Pepsi. The slogan is "You Got The Right One Baby."
1991--Craig E. Weatherup is named CEO of Pepsi-Cola North America, as Canada becomes part ofthe company's North American operations.
Pepsi introduces the first beverage bottles containing recycled polyethylene terephthalate (or PET)into the marketplace. The development marks the first time recycled plastic is used in direct contact
with food in packaging.
1992--Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding "Choice ofa New Generation."
Pepsi-Cola and Lipton Tea Partnership is formed. Pepsi will destribute single serve Lipton Originaland Lipton Brisk products.
Crystal Pepsi: a refreshing, clear soda that is caffine free, has 100% natural flavors, no preservativesand is low in sodium, goes national.
Mountain Dew introduces the popular theme line, "Get Vertical."
1993--Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi."
Pepsi-Cola profits surpass $1 billion.
Pepsi introduces an innovative 24-can multipack that satisfies growing consumer demand forconvenient large-size soft drink packaging. "The Cube" is easier to carry than the traditional 24-pack and it fits in the refrigerator.
1994--New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO
Craig Weatherup explaining the relationship between freshness and superior taste to consumers.
Pepsi Foods International and Pepsi-Cola International merge, creating the PepsiCo Foods andBeverages Company.
1995--In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors inthe year's national advertising championship.
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1996--In February of this year, Pepsi makes history once again, by launching one of the mostambitious entertainment sites on the World Wide Web. Pepsi World eventually surpasses allexpectations, and becomes one of the most landed, and copied, sites in this new media, firmlyestablishing Pepsi's presence on the Internet.
1997--In the early part of the year, Pepsi pushes into a new era with the unveiling of the
GeneratioNext campaign. GeneratioNext is about everything that is young and fresh; a celebrationof the creative spirit. It is about the kind of attitude that challenges the norm with new ideas, atevery step of the way.
PepsiCo. announces that, effective October 6th, it will spin off its restaurant division to form TriconGlobal Restaurants, Inc. Including Pizza Hut, Taco Bell, & KFC, it will be the largest restaurantcompany in the world in units and second-largest in sales.
1998--Pepsi celebrates its 100th anniversary.
PepsiCo. Chairman and CEO Roger A. Enrico donates his salary to provide scholarships for
children of PepsiCo employees.
Pepsi introduces PepsiOne - the first one calorie drink without that diet taste!
2000--Although Pepsi is a great place to work, Steven Truitt (aka 'struitt') takes his skills and hardwork elsewhere (for more money of course!), therefore putting an end to his Pepsi page! For moreinformation about Pepsi, choose a search engine and search for 'Pepsi' or visit www.pepsi.com orwww.pepsico.com.
PEPSI COLA INTERNATIONAL
HISTORY
Caleb Bradham, a New Bern, N.C. druggist who first formulated the beverage, foundedpepsi-Cola at the turn of the century. Today, Brand Pepsi and other Pepsi-Cola North Americaproducts including Diet Pepsi, Pepsi-One, Mountain Dew, Slice and Mug brands account fornearly one-third of total soft drink sales in the United States, a consumer market totaling about $56billion. Pepsi-Cola beverages are available in about 170 countries.
SETUP OF PEPSI COLA
The head office is situated in New York (USA) with units operating in different regions ofthe world. These are called Business Units and Pakistan is in MENAPak (Middle East, NorthAmerica and Pakistan). The head office of MENAPak is situated in Dubai (UAE). The local headoffices for each country are situated in the respective capitals.
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Executive summary
Beverage industry in the whole world is very well established industry and the same case in
Pakistan. The major beverage companies are Pepsi Cola and Coca Cola and the emerging beverage
industry is Amrat Cola. These industries develop their own marketing strategies to meet the
requirement of their respective target market. As for as the Haidri beverages in Islamabad is
concerned, it creates its monopoly in its target market which is based on Islamabad, Rawalpindi and
the sub areas of these cities. Haidri beverages successfully fulfill the requirement of its target
market. Haidri beverages believe in departmentalization in their office works and therefore they
establish different department to achieve their respective tasks. There are different departments in
the Haidri beverages like human resources department, management information system
department, audit and taxation department, purchase department, production department, finance
department, store management, shipping department, advertising department, marketing services
department and marketing department. Each department is running under intellectual managers and
there respective team of assistants.
Human resources department in Haidri beverages has the major function is to mange the workforce.
Recruitment and promotions are also done by this department. Personal record of each employee is
maintained by this department. In this record each and every thing about the employee is recorded.
This record is maintained both by manual system and computerized system. Employee selection,
employee appraisal and leave records are also the part of this departments work. Different
motivational tools for the employees are also managed by this department.
Management information system department in Haidri beverages is one of the important
departments of this company because it plays a role of integration. Its major task is to provide the
services t other departments. Different reports of sale are generated by the management Information
system department. Such reports are then taken by different departments. For this purpose MIS has
developed its own software. Any department can get any type of report whether it is daily sale
report, weekly sale report, monthly sale report or annually sale report. Similarly a soft ware is
installed to each department and this soft ware is also made by the MIS. Any problem relating to the
computer system in any department is handled by the management information system department.
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Audit and taxation department is dealt with the government taxes and duties which are imposed by
the GOVT. Such taxes and duties are imposed on sale and purchases. All the records which are
linked with taxation are managed by this department.
Purchase department in Haidri beverages is dealt with the purchases of those items which are not
only used in the production process but also deal in those items that are used with in the factory.
But their main and continuous link is with the supplier of production items. Their main emphasis is
on the price and quality. There is no compromise on the quality of the item and this is the main
reason of the monopoly which is created by the Haidri beverages in its target market. This
department negotiates with the supplier. Their main focus is to maintain a stable relationship with
their supplier and to resist any kind of monopoly of supplier. For this purpose they have always
more than one supplier of any particular item.
Production is no doubt the main department of the any manufacturing industry. In Haidri beverages
this department is run by skilled team. During production the focusing area is the quality control.
Fro this purpose the production department has a well equipped laboratory in which tests are made
on the syrup. Such tests are made normally after each half an hour and such continuous check
system leave no doubt about the quality. The production capacity is also fulfilling the requirements
of their target market. The production department, one is the production manager, who is the
manager of the whole department and the one is the CO2 manager. The whole production plant is
supplied the electricity by the generator of the company.
Store management is the much difficult task in such a big manufacturing organization. To mange
the store operations Haidri beverages developed a separate store department. In this department the
record of each and every item is maintained. The most important task is to maintain the stock of
each item. For each item that comes inside the store, a complete record is developed and similarly
fro each item that goes outside of the store a record is maintained. Such records are not only made
manually but also made through computerized system. All the items of the store have specific code.
By entering the code in the software, the system gives full description of that particular item such as
how much go out side of the store and hoe much remain with in the store. Store managementincludes from the management of the stationery which is used with in the offices to the sugar and
other raw materials that are used in the production processes of different brands of Pepsi cola
international.
Shipping department in the Haidri beverages is concerned with two things, empty shipping and
filled shipping. Both activities are run under same manager. Empty shipping is concerned with the
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empty bottles that are brought back from the shop keepers. There counting is then done and record
is maintained. The other part of the department is the shipping of filled bottles. These bottles are
shipped to different shopkeepers through distributors. For shipping purposes the company
purchased or rented different vehicles. The labor who worked in this shipping process is almost all
temporary waged labor.
Advertising department in Haidri beverages is working on the reminding advertisement. All the
mass media advertisement is made by the Pepsi cola international while the local advertisement is
done by Haidri beverages. The local advertisement includes providing good looking displays to
shops, to do paints in their shops and to create and then deliver different types of the pamphlets to
the customers. But their main function is to provide nice display to the shops. For this, shop keeper
requests for the sign board. Then different types of such boards are developed and then these boards
are shown to the owner of the shop. The one which he likes is pasted on its shop with the
advertisement of the Pepsi products. For such type of advertisement, mostly these shops are
selected that are located in high commercial areas.
Marketing services department is dealt with four major areas.
R&D department
Security
Company signage
RAC workshop
R&D set annual agreements with the distributors and verification of the distributors flow stock.
They conduct meeting with the distributors. TOT(tools of trade) integrity survey is conducted in
order to check whether the TOTs are properly used or not. R&D has to manage the different events
and verify the advertising bills. Legal matters are also handled by the R&D department. In case of
cross distribution they take action against the distributor who is selling the other soft drinks.
Refrigerator air-conditioning workshop is the sub department of marketing services. Because it acts
as after sale service department it is responsible for the maintenance of all the TOTs present in the
market. When the retailer informs about the defect of his TOT then the technician with the RAC
vehicle reach there and eradicate the fault.
The major responsibility of the company signage is to check the billboards and signage whether
they are in proper condition or not. If some billboard or signage is defective or there is some
problem in the electricity the department will eradicate the fault. There is only one person in the
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company signage department. The company security is responsible for the security at the factory it
checks the vehicles coming inside the factory or going outside the factory.
The last one operation of this marketing department is to maintain the record of different sale
reports. Such sale reports are daily, weekly, monthly or annually reports.
As it is the strategy of Haidri beverages is to do its marketing through indirect distribution. For this
purpose they have different distributors. One of the strengths of Haidri beverages is the indirect
distribution. Its distribution network is very strong and fully controlled by the company. Haidri
beverages have no doubt control over its distributor and also offer some different kinds of the
discounts for the distributor. Among giving the discounts to the distributor, each distributor has
given a sale target from Haidri beverages. This sales target will definitely help in maintaining the
control over the distributor because in case of not achieving the target, the distributor has to bear the
penalty. So in this case both discounts and sale targets are maintaining the relationships between the
company and distributor. Haidri beverages search strong, experienced parties, devoted and loyal
people. Basic requirement of them is financially strong people, devoted with product, loyal with
company and involve in their business.
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Pepsi Cola International and its brief history:
Pepsi-Cola is the number one soft drink in the world. The company has operated continuously for
over 40 years offering a range of quality products Pepsi, Diet Pepsi, Mirinda, 7UP, Diet 7UP, dew
and Teem through a regional network of 27 exclusive Pepsi franchise bottlers. Pepsi-Cola
formulated in 1898, Diet Pepsi (1964) and Mountain Dew introduced by Tip Corporation in 1948.
History of Pepsi cola starts with a small drug store in North Carolina. This little store belonged to
young chemist by the name of doc Bradham. He invented a drink that the customers called broad's
drink. In 1903, Bradham got its drink registered formally by the name of Pepsi cola. He set his own
company and kept its sales improving gradually. By 1909, more than 250 bottlers in different
American states had been allowed to sell under the Pepsi cola license. Pepsi COLA was first sold in
the standard size of 6.5 ounces. In 1932 PEPSI COLA took courage enough to introduce a bottle of
12 ounces. Pepsi started offering its soft drinks in cans in 1948. In 1950 reducing its sweetness andcalories had changed the PEPSI COLAS formula and a new advertising campaign Refresh without
filling had been launched effectively. Under the supervision of the attentive sales staff and the
Marketing experts, Pepsi cola began setting new records of distinction. At 30 plants per year, new
plants were established all across the globe. A new attractively designed bottle had been introduced
in 1957 in place for the 20 years old bottle, and the product line had been enhanced to introduce the
new flavors of team & mirinda. In 1963, a new low-calorie drink with taste of the Pepsi-Cola
trademark was introduced. It was called Diet Pepsi. In 1964, Mountain Dew left its Mountain
birthplace and joined the Pepsi-Cola family. In 1990 PepsiCo profits exceed $1 billion for the first
time. In 1994 PepsiCo sales reach $30.4 billion. There are 470,000 employees worldwide, making
PepsiCo the third largest employer. In 1995 Pepsi-Cola introduces "Nothing else is a Pepsi" theme
line. In 1996 Pepsi-Cola introduces new advertising campaign with the theme "Generation Next." In
1997, Pepsi-Cola celebrates 100th Anniversary with first worldwide bottlers conference, held in
Hawaii. The event is held during the same time as first bottler's conference. In 1999 Pepsi-Cola
introduces two-liter plastic bottle with built-in "grip handle" that makes it easier to grip and pour."
In 2000 PepsiCo sales are $20 billion and the company has 125,000 employees at year
PepsiCo creates PepsiCo International, the business that will unite all international snack, beverage
and food units in an effort to drive faster growth and improved profitability around the world.
Pepsico already has a strong position in many markets around the world. In beverage, specifically it
is either number one or two in some 60 countries. In the Middle East Pepsi Cola is the number one
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soft drink by far. Pepsi's marketplace experience, technical expertise and innovation capabilities
reflect its market leadership. The year wise progress of Pepsi Cola International is:
1893--Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting
with many different soft drink concoctions; patrons and friends sample them at his drugstore soda
fountain.
1898--One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated water,
sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola"
On August 28, 1898. Pepsi-Cola receives its first logo.
1906--Pepsi gets another logo change, the third in eight years. The modified script logo is created
with the slogan, "The Original Pure Food Drink."
1910--The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina.
1920--Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you."
1923--Pepsi-Cola Company is declared bankrupt and its assets are sold to a North Carolina concern,
Craven Holding Corporation, for $30,000.
1928--After five continuous losing years, Megargel reorganizes his company as the National Pepsi-
Cola Company, becoming the fourth parent company to own the Pepsi trademark.
1933--By the end of the year, Guth's new Pepsi-Cola Company is insolvent. In a series of moves,
he acquires Megargel's interest in the company, giving himself 91% ownership of Pepsi.
1934--A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales, the
company begins selling its 12-ounce drink for five cents (the same cost as six ounces of competitive
colas). The 12-ounce bottle debuts in Baltimore, where it is an instant success. The cost savings
proves irresistible to Depression-worn Americans and sales skyrocket nationally.
1935--Guth moves the entire Pepsi-Cola operation to Long Island City, New York, and sets up
national territorial boundaries for the Pepsi bottler franchise system.
1936--Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000.
1939--The "Pepsi & Pete" comic strip introduces the "Twice as much for a nickel" theme innewspapers.
Pepsi-Cola Company names Mack as CEO.
1940--Pepsi-Cola Company makes advertising history with "Nickel, Nickel," the first advertising
jingle ever broadcast nationwide on radio.
1943--Pepsi's theme line becomes "Bigger Drink, Better Taste."
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1948--Corporate headquarters moves from Long Island City, New York, to midtown Manhattan.
1953--"The Light Refreshment" campaign capitalizes on a change in the product's formula that
reduces caloric content.
1955--Herbert Barnet is named President of Pepsi-Cola.
1960--Young adults become the target consumers and Pepsi's advertising keeps pace with "Now it's
Pepsi, for those who think young."
1962--Pepsi receives its new logo, the sixth in Pepsi history. The 'serrated' bottle cap logo debuts,
accompanying the brand's groundbreaking "Pepsi Generation" ad campaign.
1963--After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall is named
CEO of Pepsi-Cola Company.
Pepsi-Cola continues to lead the soft drink industry in packaging innovations, when the 12-ounce
bottle gives way to the 16-ounce size.
1965--Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and Pepsi-Cola
merge, forming PepsiCo, Inc.
Mountain Dew launches its first campaign, "Yahoo Mountain Dew...It'll tickle your innards."
1970--Pepsi leads the way into metrics by introducing the industry's first two-liter bottles. Pepsi is
also the first company to respond to consumer preference with light-weigh, recyclable, plastic
bottles.
1974--First Pepsi plant opens in the U.S.S.R.
Television ads introduce the new theme line, "Hello, Sunshine, Hello Mountain Dew."
1978--The Company experiments with new flavors. Twelve-pack cans are introduced.
1981--PepsiCo and China reach agreement to manufacture soft drinks, with production beginning
next year.
1983--Mountain Dew launches the "Dew it to it" theme.
1984--Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New Generation."
1987--Pepsi-Cola President Roger Enrico is named President/CEO of PepsiCo Worldwide
Beverages.1989--Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation Ahead."
1990--American Music Award and Grammy winner rap artist Young MC writes and performs
songs exclusively for national radio ads for Pepsi. Ray Charles joins the Pepsi family by endorsing
Diet Pepsi. The slogan is "You Got the Right One Baby."
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1992--Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding "Choice of
a New Generation."
Mountain Dew introduces the popular theme line, "Get Vertical."
1993--Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi."
Pepsi-Cola profits surpass $1 billion.
1995--In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in
the year's national advertising championship.
1996--In February of this year, Pepsi makes history once again, by launching one of the most
ambitious entertainment sites on the World Wide Web. Pepsi World eventually surpasses all
expectations, and becomes one of the most landed and copied, sites in this new media, firmly
establishing Pepsi's presence on the Internet.
1997--In the early part of the year, Pepsi pushes into a new era with the unveiling of the
GeneratioNext campaign. GeneratioNext is about everything that is young and fresh; a celebration
of the creative spirit. It is about the kind of attitude that challenges the norm with new ideas, at
every step of the way.
PepsiCo. announces that, effective October 6th, it will spin off its restaurant division to form Trion
Global Restaurants, Inc. Including Pizza Hut, Taco Bell, & KFC, it will be the largest restaurant
company in the world in units and second-largest in sales.
1998--Pepsi celebrates its 100th anniversary.
Other Soft Drink Market in Pakistan
Coca cola
Coca Cola Company begins operating in Pakistan in 1963. Coca cola brand for Pakistan are coca
cola, fanta, sprite .the coca cola system in Pakistan operate through eight bottlers, four of which are
majority owned by coca cola beverages Pakistan limited (CCBPL) .CCBPL plant are in Karachi,
Hyderabad, Sialkot, Gujaranwala, Faisalabad, Raheemyarkhan, Multan & Lahore. The remaining
two plants independently owned are in Rawalpindi & Peshawar. It employees consist of 1800
people. During the last two years, the coca cola system in Pakistan has invested over $130 million.
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Makka cola
the creation of Makka cola was to create a profit making business which would have to relieve
yaman suffering where actions is still possible the most intolerable and the most immediate
suffering is that of the Palestine people.
Amrat Cola
Amrat cola was launched in Pakistan after the 9/11, and the Americas attacks on Afghanistan and
Iraq. It successfully starts decreasing the sale of Pepsi because of the perception that the funds given
by Pepsi Cola International are used against Muslims. And with in one year it got the market share
of 22% in the Rawalpindi and Islamabad market. The major strength of the Amrat cola is their not
returnable packages, which reduces the transportation cost. Because they dont need to go to the
retailers for getting the empty bottles.
Mehran bottlers
Mehran bottlers pvt limited is one of the leading players in beverage industry of Pakistan.. Mehran
bottler has the authority, franchise to produce at beverage market. Bubble up, lemon line flavors,
apple sidra, vimto, lychee, cola1 having recently installed a high speed technologically advance
system of reverse osmosis for water cleansing & treatment. The company has recently launched
mineral water under the brand of vital
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PEPSI COLA IN PAKISTAN:
Pepsi cola is also very popular in Pakistan thats why its market share is 90% in the soft-drink
market. Pepsi Cola International, a remarkable name in the cola industry, doing its business in
Pakistan through franchising.PCI has developed following bottlers in Pakistan till now. These
franchises are located in
Karachi
Lahore
Multan
Faisalabad
Gujranwala
Peshawar
Islamabad
Sukkher
Hyderabad
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Organization
Owner
Mr. Imran Khan Treen
General Manager
Mr.Mujeebullah Ch.
G.M. TechnicalMr.Muhammad Akhter ch.
Assistant General Manager
Mr.Robin Sadiq
Human Resource Manager Mr.Zulkifl Ejaz
Marketing Services Manager Maj. P.S. TariqPurchase Manager Mr.Shahid Insha
Shipping Manager Mr.sajid Sharif
MIS Manager Mr.Muhammed
Irfan
Audit Manager Mr.Tariq
Maqbool
Finance Manager Mr.Muhammed
Ahmed
Production Manager Mr.Amjad Javed
Co2 Manager Mr.Naveed Sadiq
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Quality control manager Mr.Abdul rauf
Store Manager Mr.Jawad Ahmed
Rawalpindi zone 1 Mr.Naseem Sial
Rawalpindi zone 2 Mr.Abdul Ghafoor
MalikIslamabad Mr.Imran
sheikh
Out station 1 Mr.Khalid
Pervaiz Mian
Out station 2 Mr. Tanveer
Hussain
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Mission
Pepsis' mission seems They make, sell and deliver beverages." But, in
the competitive market, it provides an excellent service, favorite drink,
strong external relationships and best business strategy. PepsiCos
mission is to be the world's leader consumer Products Company focused
on convenient foods and beverages. Pepsis attitude is expressed in their
maintained vision which states: PepsiCos responsibility is to creating a
better tomorrow than today.
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Vision
Their vision statement is We were number 1, we are number 1, and we
will be number 1. Their collective success depends on their healthy
balance strategies the organization's needs and the needs of their
employees and their families. Like Enhanced career opportunities,
Education and development, Medical, dental and prescription coverage
Flexible spending accounts, Retirement, Life insurance, Vacation time,
Disability, Tuition reimbursement, Scholarships, Matching charitable
donations.
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Goal
Pepsi has remained focused on its singular mission: They make, sell and
deliver beverages. They focus that they strive to be the best. In short, their
vision is to transform their selves into the best-performing beverage
company in the world through persistent focus on internal and external
growth, shareholder value creation, and customer service and employee
satisfaction. They recruit, hire, develop, reward and promote individuals
who exhibit all of their core values; they offer competitive compensation
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andbenefits that reflect Pepsis commitment to their employees and their
families
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Introduction
Pakistan today has a very competitive beverages market. Opportunities for this industry to establish
itself firmly in this country were gloomy at first because of the country's low per capital income and
because of the business' status depending on consumer motion. .
In 1965 Shamim Khan Tareen first got the franchise of 7-UP and established a production unit in
Multan. They started producing and marketing 7-UP. In 1972 they also started producing Pepsi at
the same plant. This is the only unit in the world that is producing both Pepsi and 7-UP at the same
unit
Due to increased consumption, marketing efforts, they built new units in Faisalabad, Lahore, and
Gujranwala. It covered the whole southern region.
Philip Morris Company, renowned for its tobacco products handled 7-UP brand. For the last
10 years Shamim and Co. has again taken over the franchise.
primary goal is not to undermine the competition but to expand the market as a whole. Analysts
believe the potential market in Pakistan is though to be enormous because the country's per capita
consumption is as low as 14 bottles per year.
In 1989 the current owner Mr. Imran Khan Treen purchased the franchise at that
time it was only producing Pepsi, Team, and Mirinda. But in 2004 it successfully
launched the new brand which is called "Mountain Dew". The area under the
franchise is allocated by the Pepsi Cola International in which the company sells its
products, manufactured under the licensed agreement. Different departments within
the organization work together to achieve their respective goals as well as the goals
of the organization as a whole.
ORGANIZATIONAL SETUP
Managing Director
MrAlamgir Khan Tareen
General Manager Finance
Mr Sohail Butt
General Manager Technical
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Mr. Azmat Ullah Mir
Manager Finance
Mr. Sohail Butt
Manager Sales
Mr. Aamir Hameed
Administration Manager
Maj. (Retd.) Khalid
Operations Manager
Maj. (Retd.) Farooq
Human Resources Department
HRM department plays a vital role in each organization. Human resources department in Haidri
beverages is headed by MR. Zulkifl Eijaz. HR department in Haidri Beverage performs the
following functions.
Workforce planning
Specifying jobs and roles
Recruitment
Screening applicants
Outsourcing
Career development
Benefits and compensation
Leadership development
Management development
Personnel policies and records
Employee Laws, Topics and Issues
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Diversity management
Preventing violence in the workplace
Ensuring safety at the workplace
Performance appraisal
Transfer and promotions
The transfer and promotion of the employee is based on all the information present in the personal
file.
Total employees in the Haidri Beverages are 850. Out of which 500 are permanent and the
remaining are the temporary workers. In the summer season the number of the temporary workers
increases, who are lay off at the end of the season. These temporary workers are usually unskilled
and work as helpers.
Management Information System Department
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Workforce
Permanent
Workers
Temporary
Workers
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The manager of MIS department is MR. Irfan, who is capable person and believes in team work. He
creates a working team environment in his department. Under his supervision there are no
designations within MIS department. Any body can be called to do any type of work. The manager
himself is often engaged in doing little works. Management information system (MIS) department
in the Haidri Beverages has the main function of integration. The main purpose of this department
is to integrate different department with MIS department. It is basically a servicing department that
provides services to production, shipping sales and other departments. MIS prepare different types
of the reports, like daily reports, monthly reports and region wise reports. Each report has its own
specific code. For example the codes of the reports are
M075 Daily report
M005 Monthly report
M037 Region wise
The basic purpose is to provide support to the other departments in the form of providing reports to
them and maintaining the soft wares which are installed in different department's computer systems.
System problems are usually handled by the MIS in all departments.
Store
MR. Jawad is manager of store. The main tasks of his duty are to maintain the stock of each item
that is used within factory. Records are also maintained of each item. The raw material and the
other items used in different areas of the factory, like office stationery, vehicles spare parts,
machines parts, and nut bolts are kept in the store. For each item a separate ledger is maintained.
When that item is received or issued from the store, the respective entries are made on that
particular ledger.
Purchase Department
Mr shahid, who is the manager of purchase department have no compromises on the prices ad the
quality of the items which are used in the factory. His main duty is to deal with different suppliers
and set the prices and quality of the items according to the standards which are made by the
company. When store informs the purchase department about the purchase of a particular item, the
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purchase department gets information about the prices of desired items. At this level quotations are
required by the department from its different suppliers. On receiving these quotations the selection
of supplier is based on the low price and high quality. Another procedure is the negotiating the
prices with the supplier. In this case the prices are settled at the desired level. After setting the
prices, the order is placed to the supplier. When the goods are received their physical verification is
done and in case of any shortage or poor quality product the respective supplier is informed. In this
case the supplier has to bear the charges of shortages or low quality. In case of events like 14th
August, Eids and festivals etc. Purchase department had to manage the supply at least 15 days
before the occurrence of the event, because the production increases in these days due to high
demand in the market.
Domestic and Foreign purchases
The purchases in Haidri Beverages are made from two sources; Domestic Markets
Foreign Markets
Audit & Taxation Department:
In Haidri Beverages, audit is done annually. For the taxation purpose the taxes are implemented on
the basis of the purchase. If purchases are made locally there will be a tax and if purchases are from
the international market there will be no taxes.15% sales tax is implemented on the domestic sales.
All the departments are being audited by the audit department. The audits are made according to the
government laws. Records are maintained both manually and computerized. The revenue
submission date to the bank is 15 th of each month. When the audit is conducted by the government,
the company has to present the invoices of purchase in order to get rebate on the foreign purchases.
These items come under no tax category.
Sales tax
Sales tax is 15%. Excise duty is 12% which the company pays to the government.
Production DepartmentProduction department is managed by the MR. Amjad who is really capable person. The capacity of
the production is 90000 cases per day. Previous capacity of the plant was 70000 to 80000 cases per
day. But this increase in the production capacity is due to the expansion of the production plant.
More over demand of the products is also increasing day by day because of its brand that shows
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high quality and low price. In addition to this Haidri Beverages has established a canning plant
having capacity of producing 2000 cases per day. This would be the second can plant in Pakistan
after Karachi. The company is going to introduce its own mineral water which is called "Aquafina"
and some flavors of juices which will further increase the capacity of the plant. 2 generators are
there to support the continuous supply of the electricity to the plant. This supply of electricity is
enough to meet the requirements of the plant
Production staff
Direct employees are directly involved in the production process. Whereas the helpers are the
indirect employees Moreover direct supervisor and helpers are also there. Indirect employees are
about 350 in number, who are not directly involved in the production process but they are essential
part of the production department.
Laboratory
In order to maintain the high quality the plant has a well equipped lab. Laboratory is sufficient to
measure the standards and to test syrup of different flavors. The well equipped lab enables the
smooth flow of production process.
Product line
The major brand of Haidri Beverages is Pepsi 250 ml, having highest market share which is 47% as
compared to other brands. The other brands produced by the organization are
Pepsi
Mirinda
Pepsi diet
7up
7up diet
mountain dew
Advertising Department
Advertising is bringing a product (or service) to the attention of potential and current customers.
Advertising is typically done with signs, brochures, commercials, direct mailings or e-mail
messages, personal contact, etc.
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Major Methods of Advertising
Brochures or flyers -- Many desk-top publishing and word-processing software packages can
produce highly attractive tri-fold (an 8.5 inch by 11-inch sheet folded in thirds) brochures.
Brochures can contain a great deal of information if designed well, and become a common method
of advertising.
Direct mail-- Mail sent directly from you to your customers can be highly customized to suit their
nature and needs. You may want to build a mailing list of your current and desired customers.
Collect addresses from customers by noticing addresses on their checks, asking them to fill out
information cards, etc. Keep the list on-line and up-to-date. Mailing lists can quickly become out-
of-date. Notice mailings that get returned to you. This should be used carefully and it can incur
substantial cost, you don't want to inundate your stakeholders with information so make the most of
your message.
E-mail messages -- These can be wonderful means to getting the word out about your business.
Design your e-mail software to include a "signature line" at the end of each of your e-mail
messages. Many e-mail software packages will automatically attach this signature line to your e-
mail, if you prefer.
Magazines -- Magazines ads can get quite expensive. Find out if there's a magazine that focuses on
your particular industry. If there is one, then the magazine can be very useful because it already
focuses on your market and potential customers. Consider placing an ad or writing a short article for
the magazine. Contact a reporter to introduce yourself. Reporters are often on the look out for new
stories and sources from which to collect quotes.
Newsletters -- This can be powerful means to conveying the nature of your organization and its
services. Consider using a consultant for the initial design and layout. Today's desktop publishing
tools can generate very interesting newsletters quite inexpensively.
Newspapers(major) - Almost everyone reads the local, major newspaper(s). You can get your
business in the newspaper by placing ads, writing a letter to the editor or working with a reporter to
get a story written about your business. Advertising can get quite expensive. News paper are often
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quite useful in giving advice about what and how to advertise. Know when to advertise -- this
depends on the buying habits of your customers.
Newspapers (neighborhood) -- Ironically, these are often forgotten in lieu of major newspapers, yet
the neighborhood newspapers are often closest to the interests of the organization's stakeholders.
On-line discussion groups and chat groups -- As with e-mail, you can gain frequent exposure to
yourself and your business by participating in on-line discussion groups and chat groups. Note,
however, that many groups have strong ground rules against blatant advertising. When you join a
group, always check with the moderator to understand what is appropriate.
Posters and bulletin boards -- Posters can be very powerful when placed where your customers
will actually notice them. But think of how often you've actually noticed posters and bulletin boards
yourself. Your best bet is to place the posters on bulletin boards and other places which your
customers frequent, and always refresh your posters with new and colorful posters that will appear
new to passers by. Note that some businesses and municipalities have regulations about the number
of size of posters that can be placed in their areas.
Radio announcements -- A major advantage of radio ads is they are usually cheaper than television
ads, and many people still listen to the radio, for example, when in their cars. Ads are usually sold
on a package basis that considers the number of ads, the length of ads and when they are put on the
air. . A major consideration with radio ads is to get them announced at the times that your potential
customers are listening to the radio.
Telemarketing-- The use of telemarketing is on the rise.
Television ads -- Many people don't even consider television ads because of the impression that the
ads are very expensive. They are more expensive than most of major forms of advertising.
However, with the increasing number of television networks and stations, businesses might find
good deals for placing commercials or other forms of advertisements. Television ads usually are
priced with similar considerations to radio ads, that is, the number of ads, the length of ads and
when they are put on the air.
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Web pages -- You probably would not have seen this means of advertising on a list of advertising
methods if you had read a list even two years ago. Now, advertising and promotions on the World
Wide Web are almost commonplace. Businesses are developing Web pages sometimes just to
appear up-to-date. Using the Web for advertising requires certain equipment and expertise,
including getting a computer, getting an Internet service provider, buying (usually renting) a Web
site name, designing and installing the Web site graphics and other functions as needed (for
example, an on-line store for e-commerce), promoting the Web site (via various search engines,
directories, etc.) and maintaining the Web site.
Yellow Pages --The Yellow Pages can be very effective advertising if your ads are well-placed in
the directory's categories of services, and the name of your business is descriptive of your services
and/or your ad stands out (for example, is bolded, in a large box on the page, etc.). The phone
company will offer free advice about placing your ad in the Yellow Pages. They usually have
special packages where you get a business phone line along with a certain number of ads.
Pepsi Cola International following the reminder advertising in order to remind the brand name to
the customer. All the print and the electronic media ads are managed by the Pepsi Cola
International. Where as the local and outdoor ads are managed by franchise organizations in their
respective areas. Each franchised organization has to share with the PCI in these ads. In addition to
this sharing each franchise organization has to contribute in the local sports events, festivals like
eid. Haidri Beverages are usually concentrate on doing outdoor advertising which includes
billboards, banners, signage etc. vehicles are also used as an advertising medium. Pamphlets are
used in order to advertise different schemes which mostly launch on different occasions like
Ramadan Scheme. This scheme heavily depends on the market conditions and the strength of the
event. PCI has also some contribution in these schemes and ads. The skins of the billboards are
usually given by the PCI.
Marketing Department
Marketing in Haidri beverages is based on indirect distribution. Products are sold to the distributor
who than sale to the customer. For this purpose Haidri beverages has divided its target market in to
different zones and each zone has its own unit manager. Similarly in each zone there is different
number of the distributors. Sale targets are given by the Pepsi cola international to the Haidri
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beverages. These targets than divided among different zones by the Haidri beverages. Different
kinds of the incentives are given on achieving their targets by Haidri beverages
It has 77 distributors in all five units.
Rawanpindi 1 3 distributors
Rawalpindi 2 3 distributors
Islamabad 4 distributors
Outstation 1 39 distributors
Outstation 2 28 distributors
Haidri Beverages has a very strong distribution network in its entire area which is a
competitive edge over the other cola manufacturers. They are following the strategy of
achieving the organizational goal by providing satisfaction to the customers through their
products. They dont Marketing services department has four sub-departments.
R&D department
Security
Company signage
RAC workshop
Research and development department has 6 officers who manage all the areas of Haidri
Beverages (private) Ltd. For the marketing point of view the area is divided into 5 units
whish are
Rawalpindi cantt.
Rawalpindi city
Islamabad
Zone 1 (Gujjar khan,Kahota,Murree,Kashmir)
Zone2 (Attock,teila,Hazara division,Northern Areas)
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R&D set annual agreements with the distributors and verification of the distributors flow
stock. They conduct meeting with the distributors. TOT integrity survey is conducted in
order to check whether the TOTs are properly used or not. R&D has to manage the
different events and verify the advertising bills. Legal matters are also handled by the
R&D department. R&D department consists of 6 officers.
Refrigerator air-conditioning workshop is the sub department of marketing services.
Because it acts as after sale service department it is responsible for the maintenance of all
the TOTs present in the market. When the retailer informs about the defect of his TOT
then the technician with the RAC vehicle reach there and eradicate the fault. There are
four vehicles that are for
Islamabad
Rawalpindi
Outstation
Complaint cell
RAC consists of following staff
1 Senior supervisor
1 Supervisor
4 technicians
9 helpers
4 drivers
The major responsibility of the company signage is to check the billboards and signage
whether they are in proper condition or not. If some billboard or signage is defective or
there is some problem in the electricity the department will eradicate the fault. There is
only one person in the company signage department. The company security is responsible
for the security at the factory it checks the vehicles coming inside the factory or going
outside the factory. It also checks the loads on the vehicles and maintains their records
and then it is presented to the marketing services department.
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Its staff consists of
1 chief security officer
4 security officers
23 security guards
The reporting system in the Haidri Beverages (private) Ltd is very distinctive. Four types
of reports are prepared in marketing services department.
Daily reports
Weekly reports
Monthly reports
Annual reports
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Marketing:
I have done my internship in marketing department as the major functional area.
First of all some different definitions of marketing:
Marketing deals with identifying and meeting the human and social needs, one definition ofmarketing is "meeting needs profitability".
"Marketing is a societal process by which individual and groups obtain what they need and want
through creating, offering, and freely exchanging products and services of value with others".
For managerial definition, marketing has often been described" the art of selling products" but the
people are surprised when they heard that the most important part of marketing is not selling!
Selling is the only tip of marketing iceberg."
Marketing is the wide range of activities involved in making sure that you're continuing to meet the
needs of your customers and getting value in return. These activities include market research to find
out, for example, what groups of potential customers exist, what their needs are, which of those
needs you can meet, how you should meet them, etc. Marketing also includes analyzing the
competition, positioning your new product or service (finding your market niche), pricing your
products and services, and promoting them through continued advertising, promotions, public
relations and sales
The American marketing association offers the following definition of marketing.
"Marketing is the process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy the individual and
organizational goals".
Marketing is typically seen as the task of creating, promoting, and delivering the goods and services
to consumers and businesses. Marketers are skilled in stimulating the demand for the company's
products, but this is too limited a view of the task marketers perform just as production and logistics
professionals are responsible for supply management, marketers are responsible for demand
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management. Marketing managers seek to influence the level, timing, and composition of demand
to meet the organization's objective.
Marketing people are involved in marketing of ten types of entities.
Goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information
Ideas
What is Sale?
Sales involves most or many of the following activities, including cultivating prospective buyers (or
leads) in a market segment; conveying the features, advantages and benefits of a product or service
to the lead; and closing the sale (or coming to agreement on pricing and services).
It appears that the attributes of strong leadership and effective selling have a tremendous amount in
common. After all, to be really successful in sales, you need to be a leader, both within your own
organization, as well as to your clients and customers.
There are seven secrets to leadership, as they apply to leadership in selling:
1. "Unwavering Courage": Selling successfully requires courage; taking a risk where the odds may
seem stacked against you; courage to make that extra call, to deal with the tough client or prospect,
and to not let anything deter you.
2. "Self-Control": The ability to set a course for yourself and take disciplined action each day is a
key attribute of all successful salespeople.
3. "A keen sense of justice": Knowing right from wrong - understanding what is fair and just -
allows you to make, wise informed decisions.
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4. "Definiteness of decision": Deciding on what you want to achieve, and then doing whatever it
takes to get there, even in the face of obstacles and setbacks, is crucial to your success.
5. "Definiteness of plans": The successful leader must plan his work, and work his plan. Plan your
time, and then take action on your plan each and every day.6. "The habit of doing more than paid for": Want to sell more? Go the extra mile for your clients.
Want to get the respect, admiration, and cooperation from your internal "clients" - the people you
need to rely on to implement or help you close sales? Go the distance for them as well.
7. "A pleasing personality": Is selling a popularity contest? No, but would you buy something from
someone who was nasty and rude?
Sale of last year of haidri beverages was 10.7 million cases but the target was 10 million cases, this
shows the efficiency of the company. Market share of different pepsi brands is given below.
Market Share of Pepsi Flavors
Flavormarketshare
Pepsi 47.48%
Mirinda 7.20%
7up 34.27%
pepsi diet 1%
7up diet 2.19%Mountaindew 7.74%
market share
pepsi
mirinda7up
pepsi diet
7up diet
mountain dew
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Target market and segmentation
A marketer can rarely satisfy everyone in the market. Therefore marketers start by dividing of the
market. They identify and profile distinct groups of buyers who might prefer or require varying
product and services mixes. Market segments can be identified by examining the demographics,
psychographics, and behavioral differences among buyers. The marketers than decide which
segment present the greatest opportunity, which are its target market. For each chosen target
market, the firm develops the market offering. The offering is the position in the mind of the target
buyers as delivering some central benefits.
Marketing channels
To reach a target market, the marketers uses three kinds of marketing channels;
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Communication channels
Distribution channels
Service channels
Communication channel
Communication channel delivers and receives the messages from the target buyers, and include the
news paper, magazines, radio, television, mail, telephone, bill boards, posters, fliers, cds, audio
tapes, and the internet. Beyond these communications, conveyed by the facial expression, clothing,
the look of retail store and many other media.
Distribution Channel
The marketers use the distribution channels to display, sell, or deliver the physical products or
services to buyers or users. They include
Distributor
Wholesalers
Retailers
Agents
Service channels
The marketers also use the servicing channel to carry out the transaction with potential buyers.
Methods of Distribution
Sales promotion can be directed towards:
The ultimate consumer (a "pull strategy" encouraging purchase)
The distribution channel (a "push strategy" encouraging the channels to stock the product). This is
usually known as "selling into the trade"
In marketing, sales promotion is one of the four aspects of promotion. (The other three parts of the
promotional mix are advertising, personal selling, and publicity/public relations.) Sales promotions
are non-personal promotional efforts that are designed to have an immediate impact on sales. Sales
promotion is media and non-media marketing communications employed for a pre-determined,
limited time to increase consumer demand, stimulate market demand or improve product
availability. Examples include:
coupons
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discounts and sales
contests
point of purchase displays
rebates
gifts and incentive items
what is distribution channel:
A distribution channel consists of a set of people and firms involved in the transfer of title to a
product as the product moves from producer to ultimate consumer or business user.a channel of
distribution always includes both the producer and the final customer for product in its present form
as well as any middle men such as retailer or whole seller.
There are two ways of distributions:
Direct Distribution
Manufacturer Retailers Customers
Indirect Distribution
Manufacturers Distributor Retailers Customers
Distribution in Haidri Beverages
The distribution in haidri beverage is indirect. It has 77 distributors in all five units. Rawanpindi 1 3 distributors
Rawalpindi 2 3 distributors
Islamabad 4 distributors
Outstation 1 39 distributors
Outstation 2 28 distributors
Area Allocation
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Rawalpindi1
Rawalpindi2
Islamabad Zone 1 Zone 2 Post Mix
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RAWALPINDI CANTT
Rawalpindi city
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SECTOR 4 SECTOR 5
Five SalesOfficers
SECTOR 6
Three SalesOfficers
Two SalesOfficers
UNIT
MANAGER
SECTOR 1 SECTOR 2
Two SalesOfficers
SECTOR 3
Two SalesOfficers
Two SalesOfficers
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Haidri Beverages has a very strong distribution network in its entire area which is a
competitive edge over the other cola manufacturers. They are following the strategy of
achieving the organizational goal by providing satisfaction to the customers through their
products. They dont sell but market their product therefore they are the market leaders.
As the pepsi and all pepsi brands are fast moving consumer goods, so it is necessary
marketing decision of haidri beverages to select the in direct distribution channel. In this
case the distributor takes the bulk amount of the product from the company. Usually the
amount or the number of the items that are purchased by the distributor are dependent on
the targets which are given to the by the haidri beverages. When the distributor takes the
product, haidri beverages count and record its sale. Now its the matter of distributor to
achieve the sale target. For this purpose the disrtubutor has the sale team that consists on
the sale officers and sale men. The sale officer are under the haidri beverages while salemen are under the distributor. The target of sale that is given by the pepsi cola
international to the haidri beverages is divided to the ground levels. It mean that this
target is divided to among different sale zones. With in the zone these targets are divided
among the unit mnagers than unit manager divided this target to its sale officer. Than sale
officer divides the target among its sale men. So In this case the sale targets reaches to the
ground levels.
Selection criteria of the distributor:
The selection of the distributor in hiadri beverages is heavily dependant on the financial
condition of the distributor and the area which is selected by the distributor for its store.
No doubt the store condition is also important for the selection criteria. The other factors
are
Number of sale men
Number of loaders
Number of vehicles
Condition of vehicles
Area to be covered by the distributor
Amount of security in sense of money
All the points mentioned above are supposed to fulfill by the distributor.
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Some times the quotations are received by the haidri beverages in response to
advertisement made by the company for hiring new distributor or some times the willing
company itsel contact with the haidri beverages to become a part of its distribution team.
Why haidri beverages selects indirect distribution:
There are two major factors which are involved in the selection of in direct distribution
by haidri beverages. These factors are
Market consideration
Product consideration
Market consideration for haidri beverages:
As the pepsi and all its products are fast moving consumer goods so their market is
obviously is large with large number of customers so it is beneficial for the haidri
beverages to adopt the indirect distribution. Fro the whole target market of haidri
beverages, it is not advisable to select the direct distribution. In case of direct distribution
the company has to provide the products at the door step of its customer which are
retailers actually.
Similarly the geographic size of the market also affects the selection of distribution
method. As the market of haidri beverages is much large so it is better to adopt indirect
distribution. More over the customers are dispersed among different areas so to give
distribution to different people is right decision.Product consideration for haidri beverages:
From product consideration point of view there are three reasons to select the in direct
distribution:
Unit value
Perish ability
Technical nature
Because the unit value of the pepsi is low so it is not advisable for the company to sell itsproducts own. By choosing the indirect distribution the unit cost of the product definitely
becomes low. Similarly the perish ability and technical nature of the product affects the
distribution method selection. As to store the product prior the sale is very difficult and
expensive, specially in case of pepsi products that are actually syrups, haidri beverages
selects indirect distribution.
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Three major categories of distribution:
Intensive distribution:
Under intensive distribution, a product sells its products through every available outlet in
the market where a consumer might reasonably look for it. Ultimate consumers demand
immediate satisfaction from convenience goods and will not defer purchase to find a
particular brand.
Selective distribution:
In selective distribution, a producer sells its product through multiple, but not all possible,
whole seller and retailers in market where a consumer might reasonably look for it.
Selective distribution is appropriate for consumer shopping goods and business accessory
equipment.
Exclusive distribution:Under exclusive distribution, the supplier agrees to sell its product only to single
wholesaling middlemen and/or retailer in a given market. At the whole sale level, such
arrangement is known as the exclusive distributorship and at the retail level it is known as
exclusive dealership
The distribution category in haidri beverages:
In haidri beverages the distribution category is intensive distribution. It is because the
pepsi and pepsi products are fast moving consumer goods. Such goods require a strong
supply. And strong supply definitely require intensive distribution. The main purpose to
adopt the intensive distribution by haidri beverages is the availability of their products.
They believe in the continuous availability of their products. That is why they selects the
indirect distribution network. The sale men and the sale officers are responsible to
maintain the sale in their respective sale. And this maintenance is occurred only when
there is continuous supply.
Control over the distributor:
One of the strengths of haidri beverages is the indirect distribution. Its distribution
network is very strong and fully controlled by the company. Haidri beverages have no
doubt control over its competitor and also offer some different kinds of the discounts for
the distributor. Among giving the discounts to the distributor, each distributor has given a
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sale target from the haidri beverages. This sales target will definitely help in
maintaining the control over the distributor because in case of not achieving the target,
the distributor has to bear the penalty. So in this case both discounts and sale targets are
maintaining the relationships between the company and distributor.
Marketing Concept:
The marketing concept holds that achieving organizational goals depends on determining
the needs and wants of target markets and delivering the desired satisfaction more
effectively and efficiently than do competitors. The marketing concept has been stated in
colorful ways such as,
WE MAKE IT HAPPEN FOR YOU (Marriott)
TO FLY, TO SERVE(British Airways)
WE ARE NOT SATISFIED UNTIL YOU ARE
(General electric)
CHOICE OF THE NEXT GENERATION(Pepsi)
"DIL HO TO MANGO AUR" (Pepsi)
Marketing concept suggests that to be more profitable an organization must satisfy
consumer needs and wants.
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Marketing Mix
The role and importance of each element of the mix are identified. The Marketing Mixconsists of Product, Price, Promotion and place (channel of distribution)
Product
Product varietyQualityDesign
Brand namePackaging
Sizes
Price
List priceDiscount
CreditAllowance
Promotion
AdvertisingSales promotion
Print mediaSponsorsMobilesPosters
Place
ChannelsCoverageLocationsInventory
TransportationLo istics
Target
Customers
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Product
Product means the goods-and-services combination the company offers to the target
market. Thus, Pepsi Cola product consist of cold drink, its packaging, bottling, its caps,
ingredients and 100% energizing and thousand of other products. The services include its
clean bottles its hygiene factor and the way the dealer gives to the customer.
Product planning is basically done on three levels;
Core product
Actual product
Augmented product
As for the core product is concerned in pepsi and pepsi products, this is the chill and
taste that are actually bought y the customer. Specially in summer, when people are tired
by the hot weather, they prefer to take those things that provide them a feel of chill. And
a good taste is an additional benefit that customer can take from the product.
The actual product is the syrup that is kept with in the glass or plastic bottle. This is the
thing which is bough and touched by the customer. Customer can not only feel it but also
see it, take it or drink it. The quality of the product can be checked by its taste. The brand
name pepsi and other brands of pepsi team, their packaging, their features and designs all
combined to give a shape to actual product.Augmented product is the service through which these bottles are supplied to the
retailer. Any kind of discount scheme is also part of augmented product.
Stock Keeping Units (SKUs)
Package Pepsi Pepsi diet 7up 7updiet
mirinda Team M.Dew
250ml
1litre glass - - - -1 litre pet - - -
1.5 litre pet
2.25 ltr pet - - - - - -
250ml N/R -
330ml Can -
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Haidri beverage is producing 35 stock keeping units in Pakistan including the mineral
water which is called acquafina.
Price
The price of a single 250ml bottle of Pepsi in the market is Rs.10.00
The price of a single 1 liter bottle of Pepsi in the market is Rs.25.00
The price of a single 1500ml bottle of Pepsi Cola in the market is Rs.45.00
The price of the bottle is very reasonable as compared to the other drinks with respect to
quality. Overall people are satisfied with its pricing policy and its quality
Retail and consumer prices
The price of the bottle is very reasonable as compared to the other drinks with respect to
quality. Overall people are satisfied with its pricing policy and its quality. Quality is no
doubt the main factor in analyzing the price from the point of view of the customer.
Customer first checks the price and then analyzes the product quality. Haidri beverages
set the prices at the level that are acceptable for the customer. Although the retailer do not
sell the bottle on the price which is decided by the company but the company sell the case
of bottles in discount to the distributor. Such types of discounts are called trade
discounts which are offered the distributor in order to perform the storing and selling the
product.
Package Trade price/caseRs.
Trade price/unitRs.
Consumer price/unitRs.
250ml 194 8.083 10
1 litre glass 276 23 25
1 litre pet 140 23.33 25
1.5 litre pet 225 37.5 40
2.25 litre pet 188 47 50
250ml N/R 126 10.5 12
Can 330ml 210 17.5 20
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Promotion
Promotion includes all of the tools available to the marketer for 'marketing
communication'. Marketing communications has its own 'promotions mix.' Think of it
like a cake mix, the basic ingredients are always the same. However if we vary the
amounts of one of the ingredients, the final outcome is different. It is the same with
promotions. We can 'integrate' different aspects of the promotions mix to deliver a unique
campaign. The elements of the promotions mix are:
personal selling
Sales promotions
Public relations
Direct mail
Trade show and exhibitions
Advertising
Sponsorship
Haidri beverages, main focus is given on the local advertising with respect to the
promotion. Pepsi spend almost 1million each year on advertisement to tell people about
their new schemes and prices. Execution of the scheme is carried out by the own plants in
Pakistan. These all are the part of its strategic planning .The location of the plants are as
under:-Peshawar, Islamabad, Gujranwala, Lahore, Faisalabad, Sukker, Hyderabad,
Multan and Karachi. Every plant has its own franchised area which is demarked by
district and tehsil boundaries.
Advertising: Advertising is any paid form of non personnel presentation and
promotion of ideas, goods or services by an identified sponsor. Advertisers include not
only business firms but also museums, charitable organizations and government agenciesthat direct messages to target publics. Ads are cost effective way to disseminate people.
Organizations handle advertising in different ways, in small companies advertising is
handled by someone in sales or marketing department who works with an advertising
agency. A large company will often setup its own department, whose manager reports to
the vice president of marketing. The advertising department's job is to propose a budget;
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developed advertising strategy approved ads and complains; and handles direct mail,
advertising, dealer displays and other forms of advertising.
Setting the advertising objectives
The advertising objectives must flow from the prior decisions on target market, market
positioning and marketing mix. Advertising objectives can be classified according to
whether their aim is to inform persuade, remind or reinforce.
Informative advertising
It aims to create awareness and knowledge of new products and new features of existing
advertising.
Persuasive advertising
It aims to create liking, preference, conviction, and purchase of a product or service.
Reminder advertisingIt aims to stimulate repeat purchase of products or services.
Reinforcement advertising
It aims to convince current purchaser that they made the right choice.
Pepsi Cola International following the reminder advertising in order to remind the
customer the brand name. All the print and the electronic media ads are managed by the
Pepsi Cola International. Where as local and the outdoor ads are managed by franchise
organizations in their respective areas. Each franchised organization has to share with the
PCI in these ads. In addition to this sharing each franchise organization has to contribute
in the local sports events, festivals like eid. Haidri Beverages are usually concentrate on
doing outdoor advertising which includes billboards, banners, signage etc. vehicles are
also used as an advertising medium. Pamphlets are used in order to advertise different
schemes which mostly launch on different occasions like Ramadan Scheme. This scheme
heavily depends on the market conditions and the strength of the event. PCI has also
some contribution in these schemes and ads. The skins of the billboards are usually given
by the PCI.
Selection of the location for the billboard and signage
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