INTRODUCTIONAlthough Pepsi® Co Inc is relativelyyoung, founded in 1965; it has its way tobecome one of the largest producers in itsthree industries. With brands that are almost100 years old, Pepsi® Co. has become acompany for the 90’s. This company spansalmost every area of the “junk food”market, which includes products in thebeverage, snack and the fast-food restaurantfields. Their brands and their talented staffare their weapons of success.
RAW MATERIAL OF PEPSI WATER SPARKLING PEPSI SUGAR SODA FLAVORINGS
MANUFACTURING PROCESS FILTERING,STERILIZING MIXING THECLARIFYING THE AND DECHLORINATING INGREDIANTS WATER THE WATER CARBONATING THE FILING AND BEVERAGE PACKAGING QUALITY CONTROL
ENVIRONMENT FRIENDLINESS Recyclable BottlesStrict Procedure of Cleaning and Washing of Bottles
PepsiCola is doing operation in the following cities.• Pakistan Beverages (Pvt) Ltd in Karachi & Hyderabad.• Sukkur Beverages (Pvt) Ltd in Sukkur.• Shamir & Co. in Multan.• Hyderi Beverages (Pvt) Ltd in Islamabad.• Glass Bottles in Lahore.• Punjab Beverages (Pvt) Ltd in Faisalabad.• Mehran Bottles in Gujranwala.
SUPPLIER OF RAW MATERIALSuppliers provide the resources needed by the company to produce its goods andservices. The ingredients used in preparation are syrup, carbonated water, sugar andwater.•Syrup:Syrup is supplied by Pepsi® Cola International (PCI). It is under the agreement signedbetween PCI and the bottlers.•Carbonated Water (CO2): Carbonated Water is manufactured locally and prepared under thesupervision of PCI, Lahore office.•Sugar:Sugar is produced in Pakistan by local sugar mills. Out of 32 sugar mills 6 sugar millsare qualified (with regard to quality) for providing sugar to company.•Water:Water s available from two sources:•KMC water ___either through line or through tankers.• Sea water ____ it is filtered by the process called Reverse Osmosis System
CHANNELS OF DISTRIBUTION• Direct Store Delivery• Broker-Warehouse Distribution• Vending and Food service
TECHNOLOGICAL ADVANCEMENT• Research and Development Pepsi uses different research method to satisfy their customers. The company develops different flavours and these flavours are tested on the sample basis. If the customer likes the taste, it is called the “Consumer Liking Taste” (CLT).• Producing Pepsi Cans Pakistan Beverages Pvt. Ltd. has launched Pepsi® cans locally. In order to accomplish this project, Pakistan Beverages Pvt. Ltd. invited the engineers from France to install the machinery.
COMPETITOR Strengths of Coke• Global Acceptance Coke cola share in the global market is greater than Pepsi’s. Coke cola is the world leader in the beverage industry.• Financial Strength Being a global market leader, Coke cola financial strength is far greater than that of Pepsi. Coke cola can employ its huge resources in promoting its product.
Weaknesses of Coke• Low market share In Pakistan, Pepsi’s share is greater than Coke cola. People prefer Pepsi® because of its taste.• Weaker Distribution Network Distribution of Coke cola is not so effective in Pakistan. Pepsi® has an added advantage of having more trucks for distribution than Coke cola ha• Less Promotion Coke cola has not been promoting aggressively in Pakistan. Because of this less promotional activities, Pepsi® has an edge over Coke cola.
Strengths of Pepsi•Intensive Distribution Network Pepsi’s distribution network is very effective. Pepsi® is available not onlyin urban areas but in rural areas . Even in urban areas it is available atsuperstores, educational institutes, pan shops, continental restaurants,and fast food chains.•PromotionPepsi is promoted at a large scale. An advertising agency called“Interflow” shape promotional schemes for Pepsi®.•Target MarketPepsi is targeted towards youngsters under the age bracket of twenties.This generation is called ‘Generation X’ and constitutes a larger portionof our population. As a result all promotional schemes are targetedtowards them.•Quality StandardConsumers of Pepsi® are satisfied with its high quality. Pepsi® bottlingplants consider hygiene and cleanliness along with quality management.
Weaknesses of Pepsi•Lacks Worldwide AcceptanceGlobally, Pepsi does not enjoy that much acceptance as itscompetitor (Coke cola) enjoy. Coke cola is the most widelyconsumed drink in U.S and Europe, which gives it acompetitive edge over Pepsi®.•Financial AssistanceAs mentioned earlier Pepsi is operated under franchisingagreement. PCI just sets the rules and regulations of theoperating procedure. The bottling plant has to be financed bythe franchisee from its own resources. Unlike Pepsi, C isoperated under ownership system. C acquires the bottlingplant and finances it with its huge financial resources.
OPPORTUNITIES FOR PEPSI•Natural EnvironmentPakistan is located in a tropical region. Usually the climate ishot which is conducive for beverage industry. The longer hotperiod is an opportunity for Pepsi® to expand its sale throughdifferent promotional schemes.•PopulationIncrease number of individual would definitely augment thedemand for Pepsi®, thus induce the company to increase itsproduction, sale & profit.•DiversificationPepsi® can increase its product line by introducing new anddiversified products in Pakistan. This can be done either byexercising brand extension strategy or by new brand strategy.
FUNCTIONAL EFFICIENCY Marketing and Sales Manager Area Sales ManagerZonal sales manager Sales Executives Sales officers Sales Supervisors Salesmen
CROSS-FUNCTIONAL EFFICIENCYLike most of the franchisees in Pakistan,Pakistan Beverages Pvt. Ltd. is divided into sixmajor departments.•Production Department•Administration Department•Finance Department•Audit and Accounts Department•Marketing Sales Department•Quality Control Department