A-PROJECT-ON-PEPSI-CO-STING-ENERGY-DRINK

Final Project
A PROJECT ON PEPSI CO.
STING ENERGY DRINK
(2011)
-------------------------------------------------
Submitted By:
Farhan Abid 1632-109004
Ghulam Shabbir 1632-109007
MBA (Marketing)
-------------------------------
Approved by:
_____________________ _____________________
Dean Faculty of Marketing Project Supervisor

Inner Title
A PROJECT ON PEPSI CO.
STING ENERGY DRINK
A PROJECT SUBMITTED TO
THE PIMSAT INSTITUTE OF HIGHER EDUCATION
IN FULFILMENT OF THE REQUIREMENTS
FOR THE DEGREE OF
MASTER IN BUSINESS ADMINISTRATION (MARKETING)
BY
FARHAN ABID & GHULAM SHABBIR
MASTER IN BUSINESS ADMINISTRATION
FACULTY OF MARKETING,
PIMSAT INSTITUE OF HIGHER EDUCATION,
PAKISTAN
2011
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TABLE OF CONTENTS
Serial Description Page No.
Certificates vii-ix
Acknowledgements x
Dedication xi
Executive Summary xii
Chapter No. 1 Introduction To Energy Drink 13-14
1.1 Ingredients Of Energy Drink 15-18
1.2 Effects 19-20
1.3 Attempts To Ban 21
1.4 History 22-24
1.5 Caffeinated Alcoholic Energy Drinks 25-26
1.6 Anti-Energy Drinks 27
1.7 Hidden Risks 27-28
Chapter No. 2 Introduction To Pepsi 29-30
2.1 Company Overview 31-32
2.2 A Brief Pepsi History 33-40
2.3 Mission 41
2.4 Vision 41
2.5 Objective 42
2.6 Strategies 43
2.7 Policies 44
2.8 PepsiCo Values & Philosophy 45-46
2.9 Marketing 47-51
2.10 Product Positioning Of PepsiCo 52
2.11 Pepsi-Cola Marketing Mix 53-56
2.12 Pepsi-Cola Brands 57-69
Chapter No.3 Pepsi-Cola in Pakistan 60-62
3.1 Unique Selling Proposition(USP) Of Pepsi 63
3.2 Promotion Strategy Of PepsiCo In Pakistan 64
3.3 Segmentation Of Pepsi in Pakistan 65
3.4 Place(Distribution)Strategy Of PepsiCo In Pakistan 66
3.5 SWOT Analysis Of PepsiCo In Pakistan 67-71
3.6 TOWS Analysis Of PepsiCo In Pakistan 72-75
3.7 PEST Analysis Of PepsiCo 76-77
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TABLE OF CONTENTS
Serial Description Page No.
Chapter No.4 Sting Energy Drink 78-80
4.1 Ingredients 81
4.2 Advertising Campaigns 82
4.3 Pepsi Sting Big Change In Price 83
Chapter No.5 Pakistan’s Energy Drinks Market 84-85
5.1 Red Bull 86
5.2 Booster 87
5.3 Ozo 88
5.4 Powerful 89
5.5 Speed 90
5.6 Sting 91
5.7 Other Energy Drinks 92
5.8 Comparison Chart 92
Chapter No.6 Research Methodology 93-94
Chapter No.7 Suggestions 95-96
7.1 Energy Drinks Should Not Be Mixed With Alcohol 97
7.2 Energy Drinks Should Not Be Consumed During
Exercise
98
7.3 Energy Drinks Should Not Be Consumed By
Children
99
7.4 Energy Drinks Should Not Be Consumed By
Pregnant Woman
100
Chapter No.8 Conclusion & Recommendations 101-103
Bibliography & Reference 104-105
Questionnaire 106-107
The End 108
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PROJECT COMPLETION CERTIFICATE
Certified that the research work contained in this project titled
“A Project on Pepsi Co. Sting Energy Drink” has been carried out
and completed by Mr. Farhan Abid and Mr.Ghulam Shabbir,
Roll no. 1632-109004, 1632-109007 under my supervision during their
Master of Business Administration.
______________________ Date: _______________
Research Coordinator
_________________
Dean
Faculty of Marketing
PIMSAT Institute of Higher Education
Pakistan
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CERTIFICATE OF EXAMINERS
Certified that the quantum and quality of the research work contained in
the project titled “A Project on Pepsi Co. Sting Energy Drink” is
adequate for the award of degree of Master of Business Administration.
Internal Examiner External Examiner
Signature: ________________ Signature: ________________
Name: ___________________ Name:
____________________
Date: ____________________ Date:
_____________________
Dean of Faculty
Signature: ________________
Name: ___________________
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Date: ____________________
DECLARATION
I, Farhan Abid and Ghulam Shabbir, Roll no. 1632-109004, 1632-
109007, Student’s of Master of Business Administration during the
session 2011, hereby declare that the matter printed in the dissertation
titled “A Project On Pepsi Co. Sting Energy Drink” is our own
work and has not been printed, published and submitted as research work
in any form in any university, research institute etc, in Pakistan or abroad.
Dated: ___________________ __________________
(Signature of Deponent1)
Dated: ___________________ __________________
(Signature of Deponent2)
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Submission Form for Project
Student’s Name1
Father’s/Guardian’s Name
Student’s Name2
Father’s/Guardian’s Name
Student’s E-Mail Address1
Student’s E-Mail Address2
Student’s Mobile Number1
Student’s Mobile Number2
Student’s Registration Number1
Student’s Registration Number2
Date of Submission
Project Topic Selected
We declare that the attached project is all our own work. We agree that we shall be
bound by the regulations of the PIMSAT Institute of Higher Education.
Signature1 __________________________ Date: _________________
Signature2 __________________________ Date: _________________
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ACKNOWLEDGEMENT
A task undertaken without offering prayers to almighty and talking
blessings from the elders is not a good beginning. Likewise the work
completed without acknowledging the assistance to those who were
always by our sides to make our efforts fruitful in the task left
incomplete.
Firstly, we would like to thank ‘God’ for his cordial and merciful
blessings which have enabled us to complete this project.
This project is an outcome of effort, guidance and channelization of our
teachers and parents.
We wish to extend our deepest regards and obligation to Sir Bilal Sarwar
who has guided us in this project and helped us in all possible ways to
collect and analyze all the data.
We are obliged and grateful to our Professor Mr. Amjad Shazad for his
help and guidance in completing the project.
Last but not the least, our special gratitude goes to our friends and
classmates who indirectly assisted us in the successful completion of this
project. Thank you all for teaching us endlessly how to become a better
person, friend and student.
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DEDICATED
To Our Dearest and most respected Parents.
Whose efforts and prayers are great source of
strength to us in every noble venture? Their love
inspired us to the higher idea of life.
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Executive Summary
We select this topic because there is currently no project is done on that
topic. And now a days the energy drinks are played a vital role in our daily
life so that why we want to take a look on its all aspects. As we all know that
beverages are going become a necessity of our life. So in this concern we
must have to know the benefits and the disadvantages of these drinks which
we like to be consume on daily basis. The Main purpose of this project is to
create awareness about energy drinks and its side effects. The other purpose
of this project is to tell readers about the Pepsi cola Co. and its new
launching of Sting Energy Drink in Pakistan’s market. Some suggestions are
includes in this project to create proper awareness of the circumstances
when you don’t have to consume the energy drinks. There is also some
recommendations are includes in this project to improve the sale of the Sting
energy drink.

Introduction to Energy Drink
Energy drinks are soft drinks advertised as boosting energy. These drinks usually do not
emphasize energy derived from the sugars they contain, but rather through a choice of
stimulants, vitamins, and herbal supplements the manufacturer has combined.
Energy drinks are canned or bottled beverages sold in convenience stores, grocery stores,
and bars and nightclubs (in mixed drinks). Most energy drinks are carbonated drinks that
contain large amounts of caffeine and sugar with additional ingredients, such as B
vitamins, amino acids (e.g. taurine), and herbal stimulants such as guarana.
Energy drinks are marketed primarily to people between the ages of 18 and 30 as a
stimulant, which is why energy drinks have names that convey strength, power, and speed,
and sexuality.
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Ingredients
Nowadays, energy drinks have become common choice of beverages. Sugar and caffeine
are the two major ingredients in energy drinks. Ingredients in the energy drinks are legal
ingredients which are added to give an instant energy boost. What are these energy drinks
made of? How can you get charged up right away after drinking these energy drinks?
These drinks are commonly known as soft drinks. Let us discuss the energy drink
ingredients. Generally, energy drinks include methylxanthines (including caffeine), vitamin
B and herbs. Other common ingredients are guarana, acai, and taurine, plus various forms
of ginseng, maltodextrin, carbonated water, inositol, carnitine, creatine, glucuronolactone
and ginkgo biloba. Some contain high levels of sugar, and many brands also offer
artificially-sweetened 'diet' versions. The central ingredient in most energy drinks is
caffeine, the same stimulant found in coffee or tea, often in the form of guarana or yerba
mate.
Caffeine
Most of the energy drinks contain caffeine as a main ingredient. The medical name of
caffeine is trimethylxanthine. Caffeine stimulates the nervous system and increases the
heart rate. It also acts as a mild diuretic (increases urine production in the body). Caffeine
stimulates the human brain and is an addictive ingredient in energy drinks.
Taurine
Taurine is an amino acid which increases the effect of caffeine. Taurine is also an effective
cardiac stimulator. This amino acid is naturally secreted by the human body which
regulates the heart rate, muscle contractions and energy levels of the body.
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Guarana
Guarana is a major source of caffeine and is a climbing plant. The seeds of the fruits of
Guarana has three times more caffeine than that contained in the coffee beans. This energy
drink ingredient increases the metabolic rate of the human body and helps in reducing
weight.
Ginseng
Ginseng is a herb which increases the energy levels in the human body. It has anti-fatigue
components that help to reduce stress. Ginseng is said to stimulate the nervous system to
increase the overall stamina of the body and increase the secretion of hormones in the
body. There are some adverse side-effects of Ginseng on the human body. These effects
are headache and diarrhea which are likely to happen if Ginseng is consumed along with
caffeine.
Ginkgo Biloba
Ginkgo Biloba comes from a rare tree and is an anti-depressant. This energy drink
ingredient increases concentration and blood circulation in the body. However, if this
ingredient is consumed when you are already on anti-depressant medicines, it has major
side-effects on the body. These side effects include diarrhea, palpitation and headache.
Vitamins
Inositol is a classified member of the Vitamin B complex and is said to increase the
immunity of the body. Antioxidants are the scavengers of free radicals and Vitamin C is an
effective antioxidant.
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Sugars
Sugars are the source of glucose for the human body and is the major ingredient in energy
drinks. Carbohydrates is an essential requirement of the human body which helps maintain
the body functions. Glucose is used up by the body to perform digestion, breathing and in
exercises, like, cycling, walking and swimming. This energy drink ingredient is harmful for
the people suffering from diabetes.
Acai Berry
Acai berry is another energy drink ingredient which is a rich source of antioxidants. The
Acai Berry palm trees are usually seen in South America. They are one of the ingredients
of the energy drinks.
Creatine
This is an ingredient in the many energy drinks and in products which are specially made
for body building.
Anti-oxidants
Anti-oxidants are things that help your body gracefully recover from the damage of free
radicals. Vitamin C is an anti-oxidant, so claiming that your energy drink has a lot of anti-
oxidants is like saying you’re buying really expensive orange juice. But they’re good, they
help fend off illness and prevent cellular damage. Vitamins C and E, Vitamin A (aka
retinol, beta-carotene), and selenium are all anti-oxidants.
Glucuronolactone
Glucuronolactone (DGL) occurs naturally in the human body as glucose is broken down by
the liver. All connective tissue contains this compound. DGL is believed to aid in
detoxification, freeing hormones and other chemicals, and the biosynthesis of vitamin C. It
is placed in energy drinks because it is believed to help with glycogen depletion by
preventing other substances from depleting glycogen supplies in the muscles.
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Yerba Mate
This substance is derived from leaves of a shrub in the Holly family. It is a natural source
of caffeine, but some believe that the form of caffeine in Yerba Mate’ doesn’t produce the
negative side affects like the caffeine in coffee and guarana.
Milk Thistle
This ingredient mainly found in Rockstar and a few other drinks is used as a liver
detoxifying agent. It is placed in energy drinks not really for any energy enhancing
properties but as a counter agent to mixing energy drinks with alcohol as milk thistle is
supposed to help with hangovers and detoxing the liver from alcohol. However, studies
show that the amount put in energy drinks would be of hardly any benefit to consumers.
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Effects
A variety of physiological and psychological effects have been attributed to energy drinks
and their ingredients. Two studies reported significant improvements in mental and
cognitive performances as well as increased subjective alertness. Excess consumption of
energy drinks may induce mild to moderate euphoria primarily caused by stimulant
properties of caffeine and may also induce agitation, anxiety, irritability and insomnia.
During repeated cycling tests in young healthy adults an energy drink significantly
increased upper body muscle endurance. It has been suggested that reversal of caffeine
withdrawal is a major component of the effects of caffeine on mood and performance.
Restorative properties were shown by a combination of caffeine and the sugar glucose in
an energy drink, and some degree of synergy between the cognition-modulating effects of
glucose and caffeine was also suggested. In one experiment, a glucose-based energy drink
(containing caffeine, taurine and glucuronolactone) was given to eleven tired participants
being tested in a driving simulator. Lane drifting and reaction times were measured for two
hours post-treatment and showed significant improvement.
Two articles concluded that the improved information processing and other effects could
not be explained in terms of the restoration of plasma caffeine levels to normal following
caffeine withdrawal.
Caution is warranted even for healthy adults who choose to consume energy beverages.
Consumption of a single energy beverage will not lead to excessive caffeine intake;
however, consumption of two or more beverages in a single day, can. Other stimulants
such as ginseng are often added to energy beverages and may enhance the effects of
caffeine, and ingredients such as guarana themselves contain caffeine. Adverse effects
associated with caffeine consumption in amounts greater than 400 mg include nervousness,
irritability, sleeplessness, increased urination, abnormal heart rhythms (arrhythmia), and
stomach upset.
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Consumption also has been known to cause pupil dilation when taken with certain
antidepressants or SSRIs . Energy drinks do not provide electrolytes, and have a higher
likelihood of an energy "crash-and-burn" effect. Caffeine in energy drinks can excrete
water from the body to dilute high concentrations of sugar entering the blood stream,
leading to dehydration. If the body is dehydrated by 1%, performance is decreased by up to
10%.
In the US, energy drinks have been linked with reports of nausea, abnormal heart rhythms
and emergency room visits. The drinks may cause seizures due to the "crash" following the
energy high that occurs after consumption. Caffeine dosage is not required to be on the
product label for food in the United States, unlike drugs, but some advocates are urging the
FDA to change this practice.
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Attempts to Ban
The popular energy drink Red Bull was banned in France after the death of eighteen-year-
old Irish athlete Ross Cooney, who died as a result of playing a basketball game after
consuming four cans of the drink. This ban was challenged in the European Court of
Justice in 2004. The French Scientific Committee (J.D. Birkel) concluded that Red Bull has
excessive amounts of caffeine. Denmark also banned Red Bull for a while, although the
ban has recently been revoked. Britain investigated the drink, but only issued a warning
against its use by pregnant women and children.
In 2009, a school in Hove, England requested that local shops do not sell energy drinks to
students. Headteacher Malvina Sanders added that "This was a preventative measure, as all
research shows that consuming high-energy drinks can have a detrimental impact on the
ability of young people to concentrate in class." The school has negotiated for their local
branch of Tesco to display posters asking students not to ask for the products.
As of August 2010, Sir Harris Robert has started a movement to ban the distribution of
"ënergy" drinks in the UK. He stated,"This should be an illegal substance due to high
concentrations of stimulants which if taken in high of doses has serious side effects,
especially on our youth. You must think about the children and addictions to such
products."
New Mexico Military Institute, a military high school and junior college located in
Roswell, New Mexico, does not allow sales of energy drinks at the campus "Cadet Store"
after an incident of a young Cadet drinking too many drinks in one period and having to be
hospitalized.
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History
In Japan, the energy drink dates at least as far back as the early 1960s, with the release of
the Lipovitan. Most such products in Japan bear little resemblance to soft drinks, and are
sold instead in small brown glass medicine bottles or cans styled to resemble such
containers. These "genki drinks", which are also produced in Japan, are marketed primarily
to the salaryman set.
In UK, Lucozade Energy was originally introduced in 1929 as a hospital drink for "aiding
the recovery;" in the early 1980s, it was promoted as an energy drink for "replenishing lost
energy."
The first drink marketed as being designed to improve the performance of athletes and
sports stars arrived in the sixties. It was invented for the football team at the University of
Florida, known as the Gators — hence its name, Gatorade. Designed to aid hydration and
lengthen performance levels, it claimed that its ingredients were formulated for just such
things. However, Gatorade is safer than many energy drinks and is known more as a sports
drink.
In 1985, Jolt Cola was introduced in the United States. Its marketing strategy centered on
the drink's caffeine content, billing it as a means to promote wakefulness. The initial slogan
was, "All the sugar and twice the caffeine."
In 1995, PepsiCo launched Josta, the first energy drink introduced by a major US beverage
company (one that had interests outside just energy drinks), but Pepsi discontinued the
product in 1999.
In Europe, energy drinks were pioneered by the S. Spitz Company and a product named
Power Horse, before the business savvy of Dietrich Mateschitz, an Austrian entrepreneur,
ensured his Red Bull product became far better known, and a worldwide best seller.
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Mateschitz developed Red Bull based on the Thai drink Krating Daeng, itself based on
Lipovitan. Red Bull is the dominant brand in the US after its introduction in 1997, with a
market share of approximately 47%.
In New Zealand and Australia the current leading energy drinks product in those markets V
was introduced by Frucor Beverages Frucor.
By the year 2001, the US energy drink market had grown to nearly 8 million per year in
retail sales. Over the next 5 years, it grew an average of over 50% per year, totaling over $3
billion in 2005. Diet energy drinks are growing at nearly twice that rate within the
category, as are 16-ounce sized energy drinks. The energy drink market became a $5.4
billion dollar market in 2007, and both Goldman Sachs and Mintel predict that it will hit
$10 billion by 2010. Major companies' such as Pepsi, Coca-Cola, Molson, and Labatt have
tried to match smaller companies' innovative and different approach, with marginal
success.
Energy drinks are typically attractive to young people. Approximately 65% percent of its
drinkers are between the ages of 13 and 35 years old, with males being approximately 65%
of the market. A 2008 statewide Patient Poll conducted by the Pennsylvania Medical
Society’s Institute for Good Medicine found that: 20 percent of respondents ages 21–30
had used energy drinks in high school or college to stay awake longer to study or write a
paper; 70 percent of respondents knew someone who had used an energy drink to stay
awake longer to study or work. Energy drinks are also popular as drink mixers.
In 2001 Coca-Cola marketed two Powerade brand energy drinks in bullet-shaped, screw-
top aluminum bottle cans produced by Exal Corporation of Youngstown,Ohio. Powerade,
the same as Gatorade, is better known as a sports drink and is safer than many energy
drinks. In 2002 CCL Container and Mistic Brands, Inc., part of the Snapple Beverage
Group, worked together on the national launch of Mistic RĒ, which used a recyclable
aluminum bottle. Since its introduction, many energy drinks are now packaged in the
aluminum bottles or bottle cans.
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In 2004, Balance Bar founder Richard Lamb came out of retirement to form a company to
distribute FRS, an drink with the antioxidant quercetin as its key ingredient.
Capri Sun targeted 16-25 year-olds with its Island Refreshers line, graduating from a foil
pouch design to a bottlecan or aluminum bottle. In the UK, Coca-Cola has marketed a
direct Red Bull competitor, 'Sprite 3G', in a similar 250 mL can and has also launched
'Relentless', a juice-based energy drink in 500 mL cans.
UK supermarkets have launched their own brands of energy drinks at lower prices than the
major soft drink manufacturers. These are mostly produced by Canadian beverage maker
Cott. Tesco supermarkets sell 'Kx"'(used to be known as 'Kick') in 250 mL cans and 1 L
bottles, Sainsbury's sell 'Blue Bolt' in similar packaging, Asda sell 'Blue Charge' in similar
packaging and Morrison's sell 'Source' in 250 mL cans. Cott sells a variety of other branded
energy drinks to independent retailers in various containers.
Since 2002 there has been a growing trend for packaging energy drink in bigger cans.
Since in many countries, including the US and Canada, there is a limitation on the
maximum caffeine per serving in energy drinks, this allows manufacturers to include a
greater amount of caffeine by including multiple servings per container. Popular brands
such as Redbull and Monster have increased the amount of ounces per can. Conversely, the
emergence of energy shots has gone the opposite way with much smaller packaging.
In 2007 energy drink powders and effervescent tablets were introduced, in the form of a
tablet or powder that can be added to water to create an energy drink. These can offer a
more portable option to cans and shots.
As of 2009, the industry has moved towards the use of natural stimulants and reduced
sugar. For example, in May 2010 FRS introduced two flavors sweetened with stevia.
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Caffeinated Alcoholic Energy Drinks
Energy drinks such as Red Bull are often used as mixers with alcoholic beverages
producing mixed drinks such as Vodka Red Bull which are similar to but stronger than rum
and coke with respect to the amount of caffeine they contain. They are also sold in a wide
variety of formulations such as Four Loko and Joose which combine caffeine and alcohol.
Fruit flavored caffeinated energy drinks in flavors such as watermelon, lemonade and
cranberry-lemonade are cheap with a fruity taste. Packaged in 24 ounce cans, they are
wildly popular with young people. Four Loko, a product of Phusion Projects, was
originally promoted through young employees who were hired to introduce the product to
their peer group.
Through separate mechanisms, energy drinks act as stimulants, and alcohol as depressants.
Energy drinks can lessen some of the subjective effects of alcohol intoxication like
dizziness and headache. However, they may be unable to counteract some of the
psychomotor impairments of alcohol intoxication. Consequently, the mix can be
particularly hazardous as energy drinks can mask the influence of alcohol and a person
may misinterpret their actual level of intoxication. In fact, people who drink mixers are
more likely than non-mixers to drink more alcohol, and are also more likely to suffer
alcohol-related consequences such as assault, injury or being an intoxicated driver, even
after adjusting for the number of drinks. Although people decide to drink energy drinks
with alcohol with the intent of counteracting alcohol intoxication, another large majority do
so to hide the taste of alcohol. Researchers at the Human Performance Laboratory have
suggested people refrain from mixing such powerful stimulants with alcohol, they believe
it might cause cardiopulmonary or cardiovascular failures. As of November 10, 2010
caffeinated alcoholic energy drinks had been banned in Washington and Michigan in the
United States. The bans followed a widely publicized incident which resulted in
hospitalization in the Fall of 2010 of college students who had consumed several cans of a
brand of caffeinated alcoholic beverage. Utah, which has state controlled liquor retail
outlets, after studying them, never permitted the sale of caffeinated alcoholic energy drinks.
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The products will no longer be delivered to Oklahoma after December 3, 2010 and delivery
to retailers has been suspended in New York.
On November 17, 2010, the US Food and Drug Administration warned four companies,
Charge Beverages Corp., New Century Brewing Co., Phusion Projects, and United Brands
Company Inc, that the caffeine added to their malt alcoholic beverages is an “unsafe food
additive” and said that further action, including seizure of their products, may occur under
federal law. In a press release, the FDA states "there is evidence that the combinations of
caffeine and alcohol in these products pose a public health concern.” They also state that
concerns have been raised that caffeine can mask some of the sensory cues individuals
might normally rely on to determine their level of intoxication. Warning letters were issued
to each of the four companies requiring them to provide to the FDA in writing within 15
days of the specific steps the firms will be taking.
Manufacturers have argued that drinking a caffeinated alcoholic energy drink is
indistinguishable from drinking a couple of glasses of wine followed by a couple of cups of
coffee, a typical dinner behavior.
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Anti-Energy Drinks
Several beverages have been marketed in the 2000s as "anti-energy", "chill out", or
"relaxation" drinks, including Slow Cow, Drank, Mary Jane's Relaxing Soda, Chill, Malava
Kava, V.i.B. (meaning "vacation in a bottle"), and Jones Gaba.
Hidden Risk
In November of 2010, the University of Texas Medical School at Houston reported that
energy drinks contain more caffeine than a strong cup of coffee, and that the caffeine
combined with other ingredients (sometimes not reported correctly on labels) such as
guarana, amino acid taurine, other herbs, vitamins and minerals may interact. Energy
drinks consumed with alcohol may affect heart rates, blood pressure and even mental
states. The caffeine content of energy drinks range from 70-200 mg per 16-oz serving
whereas a 16-oz cup of coffee can contain 80-300 mg. Norway and France have banned
Red Bull. Water or lower-octane sports drinks which contain electrolytes, some minerals
and carbohydrate are better choice to reduce the possibility of dehydration and increased of
blood pressure.
Health experts say caffeine suspends the effects of alcohol, allowing people to continue
drinking long after they normally would have stopped. In 2008, Anheuser-Busch agreed to
take caffeine out of energy drinks that contain alcohol, after 11 state attorneys general
charged the brewer was marketing them to underage drinkers. This action is also followed
by MillerCoors at the same year.
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Going back to 2001, BPOM (Indonesian FDA) ordered the producer of Kratingdaeng and
Kratingdaeng S (brands/affiliates of Red Bull) and Galin Bugar and the impoter of M 150
energy drinks to witdraw the products due to each bottle of drink contained 80 milligrams
of caffeine, far exceeding the acceptable 50 mg per bottle/can stated on the label. Producer
of Kratingdaeng insisting its over-the-counter products meet regulations and refused to
apologize, arguing that its products met acceptable standards. But several days after, the
company apologized to consumers and promised to intensify the company's quality control
system to avoid a similar incident from happening again. Finally, two million bottles of
Kratingdaeng and Kratingdaeng S are withdrawn. Many people believe that it is due to
competition among energy drink manufacturers to boost their energy drinks as superior
ones. One of former vice chairman of the Indonesian Consumer Foundation (YLKI), urged
BPOM to establish a firmer policy to prevent companies from deceiving consumers.
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Chapter
No.2
Introduction
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Soft drinks, more popularly known as sodas, are not exactly referred to as items of
necessity. People can live without sodas. In fact, people might be safer if they don't drink
soft drinks so much. And yet, soft drinks somehow make it to the top of the list of items
most bought by the average consumer. Why is this, exactly? Well, for one thing, sodas are
delicious. They stand between liquor and juice. Those who are too young to drink beer but
think fruit juice is too juvenile can order sodas. Those too old and are putting their health at
risk by drinking hard drinks can enjoy soft drinks and no one would think any less of them.
In short, sodas have a mass appeal. They carry an image with them; an image of a person
with a comfortable lifestyle.
This essay will take a look at the company Pepsi Cola. For a better understanding of the
subject company, this paper will delve into a brief history of the Pepsi Company's growth
over the years and the effects of competition on Pepsi's strategies in the international and
domestic market. This essay will attempt to discuss the effectiveness of Pepsi's marketing
strategies and its results.
OVERVIEW OF PEPSI
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Pepsi was one of several other brands that got their start in the late 1800s. A North
Carolina pharmacist named Caleb Bradham invented "Brad's Drink" in 1893,
which was later renamed Pepsi-Cola. Pepsi's early growth was less significant than that of
Coke's, and its real strength as a competitor to Coke began after Alfred Steele became CEO
in 1950, a time when Pepsi was nearly bankrupt. Steele was expected to liquidate the
Pepsi-Cola Co. Instead, he made it his goal to "beat Coke" (2003).
Pepsi Cola has taken part of that appeal and has used it in several different marketing
strategies. Pepsi was born after Coca Cola, or Coke. It began in North Carolina, invented
by a pharmacist named . It came out for public use on August 28, 1898. It had the
reputation for being a food drink; Bradham was a pharmacist and he claimed that his
concoction aided digestion. This claim, in a way, was already a marketing strategy, because
during those times, people were always buying medicinal aids for digestion.
Pepsi spread to Canada in 1906, and the year after that, it was registered in Mexico. By
1908, Pepsi had upgraded their transportation delivery services from horse-drawn carts to
automobiles. Pepsi seemed to be becoming successful in such a short time. But there is still
a problem. By the time Pepsi Cola came out, Coke had already made its mark among the
public and the newcomer Pepsi found it hard to find a consumer base.
Pepsi has four main objectives:
A) Remain one of the top companies in terms of global production of soft drinks. Being on
top of its industry enables Pepsi to command the respect and confidence of its clients.
Thus, the company is able to expand its operations through the acquisition of other brewing
firms.
B) Gain more profit per hectoliter than other international soft drink companies. The raw
materials that are being laid down in the recipes used in Pepsi are able to meet high quality
standards. As a result, the company is able to earn more profit as against other soft drink
companies.
C) Build the best brand portfolio, with Pepsi as the international brand of flagship; and
D) Maintaining its independence. Being an independent company allows Pepsi to continue
its tradition of excellence in both its products and services by setting new trends and
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standards.
Background of Australia
In Australia, it can be said that the country has a strong political system. Moreover, the
economic status of the country is also considered as strong since it allows foreign
investments to enter the market. Australia is considered to have the strongest economic
status in their region. In 2005, it has been regarde...
A Brief Pepsi History
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Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is
the invention of Caleb Bradham (left), a pharmacist and drugstore owner in New
Bern, North Carolina.
The summer of 1898, as usual, was hot and humid in New Bern, North Carolina.
So a young pharmacist named Caleb Bradham began experimenting with
combinations of spices, juices, and syrups trying to create a refreshing new drink
to serve his customers. He succeeded beyond all expectations because he invented
the beverage known around the world as Pepsi-Cola.
Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn
it into a gathering place. He did so by concocting his own special beverage, a soft drink.
His creation, a unique mixture of kola nut extract, vanilla and rareoils, became so popular
his customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and
advertised his new soft drink. People responded, and sales of Pepsi-Cola started to grow,
convincing him that he should form a company to market the new beverage.
In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and
applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and
sold it exclusively through soda fountains. But soon Caleb recognized that a greater
opportunity existed to bottle Pepsi so that people could drink it anywhere.
The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered
with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme
line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to
bottle Pepsi to independent investors, whose number grew from just two in 1905, in the
cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907.
By the end of 1910, there were Pepsi-Cola franchises in 24 states.
Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in
the back room of Caleb's pharmacy. Building a strong franchise system was one of Caleb's
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greatest achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to
the product's success, provided a sturdy foundation. They were the cornerstone of the
Pepsi-Cola enterprise. By 1907, the new company was selling more than 100,000 gallons
of syrup per year.
Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the
town of New Bern pictured it on a postcard. Famous racing car driver Barney Oldfield
endorsed Pepsi in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer
before a race."
The previous year, Pepsi had been one of the first companies in the United States to switch
from horse-drawn transport to motor vehicles, and Caleb's business
expertise captured widespread attention. He was even mentioned as
a possible candidate for Governor. A 1913 editorial in the
Greensboro Patriot praised him for his "keen and energetic business
sense."
Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now
promoted Pepsi sales with the slogan, "Drink Pepsi-Cola. It will satisfy you." Then
cameWorld War I, and the cost of doing business increased drastically. Sugar prices see
sawed between record highs and disastrous lows, and so did the price of producing Pepsi-
Cola. Caleb was forced into a series of business gambles just to survive, until finally, after
three exhausting years, his luck ran out and he was bankrupted. By 1921, only two plants
remained open. It wasn't until a successful candy manufacturer, Charles G. Guth, appeared
on the scene that the future of Pepsi-Cola was assured. Guth was president of Loft
Incorporated, a large chain of candy stores and soda fountains along the eastern seaboard.
He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory business relationship
with the Coca-Cola Company, and at the same time to add an attractive drawing card to
Loft's soda fountains. He was right. After five owners and 15 unprofitable years, Pepsi-
Cola was once again a thriving national brand.
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One oddity of the time, for a number of years, all of Pepsi-Cola's sales were actually
administered from a Baltimore building apparently owned by Coca-Cola, and named for its
president. Within two years, Pepsi would earn $1 million for its new owner. With the
resurgence came new confidence, a rarity in those days because the nation was in the early
stages of a severe economic decline that came to be known as the Great Depression.
1898 Caleb Bradham, a New Bern, North Carolina, pharmacist, renames "Brad's
Drink," a carbonated soft drink he created to serve his drugstore's fountain
customers. The new name, Pepsi-Cola, is derived from two of the principal
ingredients, pepsin and kola nuts. It is first used on August 28.
1902 Bradham applies to the U.S. Patent
Office for a trademark for the Pepsi-Cola name.
1903 In keeping with its origin as a pharmacist's concoction, Bradham's advertising
praises his drink as "Exhilarating, invigorating, aids digestion."
1905 A new logo appears, the first change from the original created in 1898.
1906 The logo is redesigned and a new slogan added: "The original pure food drink."
The trademark is registered in Canada.
1907 The Pepsi trademark is registered in Mexico.
1909 Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity
endorser when he appears in newspaper ads describing Pepsi-Cola as "A bully
drink...refreshing, invigorating, a fine bracer before a race." The theme "Delicious
and Healthful" appears, and will be used intermittently over the next two decades.
1920 Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."
1932 The trademark is registered in Argentina.
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1934 Pepsi begins selling a 12-ounce bottle for five cents, the same price charged by its
competitors for six ounces.
1938 The trademark is registered in the Soviet Union.
1939 A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as
Much for a Nickel" to increase consumer awareness of Pepsi's value advantage.
1940 Pepsi makes advertising history with the first advertising jingle ever broadcast
nationwide. "Nickel, Nickel" will eventually become a hit record and will be
translated into 55 languages. A new, more modern logo is adopted.
1941 In support of America's war effort, Pepsi changes the color of its bottle crowns
to red, white and blue. A Pepsi canteen in Times Square, New York, operates
throughout the war, enabling more than a million families to record messages for
armed services personnel overseas.
1943 The "Twice as Much" advertising strategy expands to include the theme,
"Bigger Drink, Better Taste."
1949 "Why take less when Pepsi's best?" is added to "Twice as Much" advertising.
1950 "More Bounce to the Ounce" becomes Pepsi's new theme as changing soft drink
economics force Pepsi to raise prices to competitive levels. The logo is again updated.
1953 Americans become more weight conscious, and a new strategy based on Pepsi's
lower caloric content is implemented with "The Light Refreshment" campaign.
1954 "The Light Refreshment" evolves to incorporate "Refreshing Without Filling."
1958 Pepsi struggles to enhance its brand image. Sometimes referred to as "the
kitchen cola," as a consequence of its long-time positioning as a bargain brand, Pepsi
now identifies itself with young, fashionable consumers with the "Be Sociable, Have a
Pepsi" theme. A distinctive "swirl" bottle replaces Pepsi's earlier straight-sided
bottle.
1959 Soviet Premier Nikita Khrushchev and U.S. Vice-President Richard Nixon meet
in the soon-to-be-famous "kitchen debate" at an international trade fair. The
meeting, over Pepsi, is photo-captioned in the U.S. as "Khrushchev Gets Sociable."
1961 Pepsi further refines its target audience, recognizing the increasing importance
of the younger, post-war generation. "Now it's Pepsi, for Those who think Young"
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defines youth as a state of mind as much as a chronological age, maintaining the
brand's appeal to all market segments.
1963 In one of the most significant demographic events in commercial history, the
post-war baby boom emerges as a social and marketplace phenomenon. Pepsi
recognizes the change, and positions Pepsi as the brand belonging to the new
generation-The Pepsi Generation. "Come alive! You're in the Pepsi Generation"
makes advertising history. It is the first time a product is identified, not so much by
its attributes, as by its consumers' lifestyles and attitudes.
1964 A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.
1966 Diet Pepsi's first independent campaign, "Girlwatchers," focuses on the
cosmetic benefits of the low-calorie cola. The "Girlwatchers" musical theme becomes
a Top 40 hit. Advertising for another new product, Mountain Dew, a regional brand
acquired in 1964, airs for the first time, built around the instantly recognizable tag
line, "Ya-Hoo, Mountain Dew!"
1967 When research indicates that consumers place a premium on Pepsi's superior
taste when chilled, "Taste that beats the others cold. Pepsi pours it on" emphasizes
Pepsi's product superiority. The campaign, while product-oriented, adheres closely to
the energetic, youthful, lifestyle imagery established in the initial Pepsi Generation
campaign.
1969 "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi
Generation advertising strategy. Youth and lifestyle are still the campaign's driving
forces, but with "Live/Give," a new awareness and a reflection of contemporary
events and mood become integral parts of the advertising's texture.
1973 Pepsi Generation advertising continues to evolve. "Join the Pepsi People, Feelin'
Free" captures the mood of a nation involved in massive social and political change. It
pictures us the way we are-one people, but many personalities.
1975 The Pepsi Challenge, a landmark marketing strategy, convinces millions of
consumers that Pepsi's taste is superior.
1976 "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving
national mood. "Puppies," a 30-second snapshot of an encounter between a very
small boy and some even smaller dogs, becomes an instant commercial classic.
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1979 With the end of the '70s comes the end of a national malaise. Patriotism has been
restored by an exuberant celebration of the U.S. bicentennial, and Americans are
looking to the future with renewed optimism. "Catch that Pepsi Spirit!" catches the
mood and the Pepsi Generation carries it forward into the '80s.
1982 With all the evidence showing that Pepsi's taste is superior, the only question
remaining is how to add that message to Pepsi Generation advertising. The answer?
"Pepsi's got your Taste for Life!," a triumphant celebration of great times and great
taste.
1983 The soft drink market grows more competitive, but for Pepsi drinkers, the battle
is won. The time is right and so is their soft drink. It's got to be "Pepsi Now!"
1984 A new generation has emerged-in the United States, around the world and in
Pepsi advertising, too. "Pepsi. The Choice of a New Generation" announces the
change, and the most popular entertainer of the time, Michael Jackson, stars in the
first two commercials of the new campaign. The two spots quickly become "the most
eagerly awaited advertising of all time."
1985 Lionel Richie leads a star-studded parade into "New Generation" advertising
followed by pop music icons Tina Turner and Gloria Estefan. Sports heroes Joe
Montana and Dan Marino are part of it, as are film and television stars Teri Garr and
Billy Crystal. Geraldine Ferraro, the first woman nominated to be vice president of
the U.S., stars in a Diet Pepsi spot. And the irrepressible Michael J. Fox brings a
special talent, style and spirit to a series of Pepsi and Diet Pepsi commercials,
including a classic, "Apartment 10G."
1987 After an absence of 27 years, Pepsi returns to Times Square, New York,
with a spectacular 850-square foot electronic display billboard declaring Pepsi
to be "America's Choice."
1988 Michael Jackson returns to "New Generation" advertising to star in a
four-part "episodic" commercial named "Chase." "Chase" airs during the
Grammy Awards program and is immediately hailed by the media as "the most-
watched commercial in advertising history."
1989 "The Choice of a New Generation" theme expands to categorize Pepsi
users as "A Generation Ahead!"
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1990 Teen stars Fred Savage and Kirk Cameron join the "New Generation"
campaign, and football legend Joe Montana returns in a spot challenging other
celebrities to taste test their colas against Pepsi. Music legend Ray Charles stars in a
new Diet Pepsi campaign, "You got the right one baby."
1991 "You got the Right one Baby" is modified to "You got the Right one Baby, Uh-
Huh!" The "Uh-Huh Girls" join Ray Charles as back-up singers and a campaign
soon to become the most popular advertising in America is on its way. Supermodel
Cindy Crawford stars in an award-winning commercial made to introduce Pepsi's
updated logo and package graphics.
1992 Celebrities join consumers, declaring that they "Gotta Have It." The interim
campaign supplants "Choice of a New Generation" as work proceeds on new Pepsi
advertising for the '90s. Mountain Dew growth continues, supported by the antics of
an outrageous new Dew Crew whose claim to fame is that, except for the unique great
taste of Dew, they've "Been there, Done that, Tried that."
1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball superstar
Shaquille O'Neal is rated as best in U.S.
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.
1995 In a new campaign, the company declares "Nothing else is a Pepsi" and takes
top honors in the year's national advertising championship.
• 1996–1997: "Pepsi: There's nothing official about it" (During the Wills World Cup
(cricket) held in India/Pakistan/Sri Lanka)
• 1997–1998: "Generation Next" (with the Spice Girls)
• 1998–1999: "It's the cola" (100th anniversary commercial)
• 1999–2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola" (commercial
with Britney Spears/commercial with Mary J. Blige)
• 1999-2006: "Yeh dil maange more" (Hindi - meaning "This heart asks for more")
(India)
• 2003: "It's the Cola"/"Dare for More" (Pepsi Commercial)
• 2006–2007: "Why You Doggin' Me"/"Taste the one that's forever young" (Mary J.
Blige)
• 2007–2008: "More Happy"/"Taste the once that's forever young" (Michael
Alexander)
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• 2008–present: "pepsi ye pyaas heh bari" ((urdu) meaning "it killed my thirst"
(pakistan))
• 2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)
• 2008: "Рepsi is #1" Тv commercial (Luke Rosin)
• 2008–present: "Something For Everyone"
• 2009–present: "Refresh Everything"/"Every Generation Refreshes the World"
• 2009–present: "Yeh hai youngistaan meri jaan" (Hindi - meaning "This is our
young country my baby")
• 2009–present: "My Pepsi My Way"(India)
• 2009–present: "Refresca tu Mundo" (Spanish - meaning "Refresh your world")
(Spanish Spoken countries in Latin America)
• 2010–present: "Every Pepsi Refreshes The World"
• 2010–present "Pepsi. Sarap Magbago." (Philippines - meaning "It's nice to
change")
• 2010–present "Badal Do Zamana" (Urdu - meaning "Change The World")
(Pakistan)
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Mission
PepsiCo mission is to be the world's premier consumer Products Company focused on
convenient foods and beverages. They seek to produce financial rewards to investors as
their provide opportunities for growth and enrichment to their employees, their business
partners and the communities in which they operate. And in everything they do, they strive
for honesty, fairness and integrity.
Vision
"PepsiCo's responsibility is to continually improve all aspects of the world in which we
operate - environment, social, economic - creating a better tomorrow than today."
PepsiCo 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.
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Objective
PepsiCo’s overriding objective is to increase the value of our shareholders'
investment through integrated operating, investing and financing activities. Their
strategy is to concentrate their resources on growing their businesses, both through
internal growth and carefully selected acquisitions. Their strategy is continually fine-
tuned to address the opportunities and risks of the global marketplace. The
corporation's success reflects their continuing commitment to growth and a focus on
those businesses where they can drive their own growth and create opportunities.
PepsiCo believes that as a corporate citizen, it has a responsibility to contribute to the
quality of life in our communities. This philosophy is put into action through support
of social agencies, projects and programs. The scope of this support is extensive --
ranging from sponsorship of local programs and support of employee volunteer
activities, to contributions of time, talent and funds to programs of national impact.
Each division is responsible for its own giving program. Corporate giving is focused
on giving where PepsiCo employees volunteer.
Strategies
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As a consumer products company, PepsiCo does not have the major environmental
problems of heavy industry. Their biggest environ-mental challenge is packaging
generated by their products. Packaging is important to public health and a critical
component of the distribution system that delivers products to consumers and
commercial establishments. To meet both consumer demand and safeguard the
environment, they recycle, reuse and reduce packaging wherever possible. Each
business is also committed to responsible use of resources required in manufacturing
their products.
Continually fine-tuned to address the opportunities and risks of the global
marketplace. Concentrate our resources on growing our businesses, both through
internal growth and carefully selected acquisitions. Company developed its
traditional products and expanded into low-fat and no-fat snacks as well as salsas and
dips.
Policies
• Employee networks to mentor and support minority & female employees.
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• Actively and diligently seek out qualified M/WBEs for all possible company
requirements.
• Make every reasonable effort to help qualified M/WBEs to meet company
standards.
• Respect the privacy of all visitors who access and use the company’s corporate Web
site
• Treating all customers with respect, sensitivity and fairness, while providing some of
the greatest products on earth.
• We respect individual differences in culture, ethnicity and color. PepsiCo is
committed to equal opportunity for all employees and applicants.
• Corporate program for training employees how to work and manage in an inclusive
environment.
PepsiCo Values & Philosophy
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Their Values & Philosophy are a reflection of the socially and environmentally responsible
company they aspire to be. That are the foundation for every business decision they make.
Their Commitment
They are committed to delivering sustained growth through empowered people acting
responsibly and building trust.
What It Means
Sustained Growth is fundamental to motivating and measuring their success. Their quest
for sustained growth stimulates innovation, places a value on results, and helps them
understand whether today's actions will contribute to their future. It is about the growth of
people and company performance. It prioritizes both making a difference and getting things
done.
Empowered People means they have the freedom to act and think in ways that they feel
will get the job done, while adhering to processes that ensure proper governance and being
mindful of company needs beyond their own.
Responsibility and Trust form the foundation for healthy growth. They hold themselves
both personally and corporately accountable for everything they do. They must earn the
confidence others place in them as individuals and as a company.
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Pepsi logo (1970-87). In 1987, the font was modified slightly to a more rounded version
which was used until 1991. This logo was used for Pepsi Throwback in 2010.
Pepsi logo (2003-2008). Pepsi Wild Cherry and Pepsi ONE continued to use this design
through March 2010. It was outside of the U.S. until 2010. The original version had the
Pepsi wording on the top left of the Pepsi Globe. In 2007, the Pepsi wording was moved to
the bottom of the globe.
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Photo of a Pepsi can with the current logo and labeling (present)
Pepsi bottle in Mexico. This logo was still in use in Mexico and most countries through
early 2010. This Pepsi logo was last used in Canada in May 2009.
From the 1930s through the late 1950s, "Pepsi-Cola Hits The Spot" was the most
commonly used slogan in the days of old radio, classic motion pictures, and later
television. Its jingle (conceived in the days when Pepsi cost only five cents) was used in
many different forms with different lyrics.
With the rise of television, Pepsi utilized the services of a young, up-and-coming actress
named Polly Bergen to promote products, oftentimes lending her singing talents to the
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classic "...Hits The Spot" jingle. Some of these Bergen spots can be seen on
ClassicTVAds.com.
Through the intervening decades, there have been many different Pepsi theme songs sung
on television by a variety of artists, from Joanie Summers to The Jacksons to Britney
Spears. (See Slogans)
In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up a
blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the
majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo
took great advantage of the campaign with television commercials reporting the results to
the public.
In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hired the first female Pepsi salesperson,
Denise Muck, to coincide with the United States bicentennial celebration.
In 1997, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By 2002,
the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that "helped
redefine promotion marketing."
In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time,
included more than thirty different backgrounds on each can, introducing a new
background every three weeks. One of their background designs includes a string of
repetitive numbers, "73774". This is a numerical expression from a telephone keypad of the
word "Pepsi."
In late 2008, Pepsi overhauled their entire brand, simultaneously introducing a new logo
and a minimalist label design. The redesign was comparable to Coca-Cola's earlier
simplification of their can and bottle designs. Also in 2008 Pepsi teamed up with
Google/YouTube to produce the first daily entertainment show on Youtube, Poptub. This
daily show deals with pop culture, internet viral videos, and celebrity gossip. Poptub is
updated daily from Pepsi.
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In 2009, "Bring Home the Cup," changed to "Team Up and Bring Home the Cup." The
new installment of the campaign asks for team involvement and an advocate to submit
content on behalf of their team for the chance to have the Stanley Cup delivered to the
team's hometown by Mark Messier.
Pepsi has official sponsorship deals with three of the four major North American
professional sports leagues: the National Football League, National Hockey League and
Major League Baseball. Pepsi also sponsors Major League Soccer.
Pepsi also has sponsorship deals in international cricket teams. The Pakistan cricket team is
one of the teams that the brand sponsors. The team wears the Pepsi logo on the front of
their test and ODI test match clothing.
On July 6, 2009, Pepsi announced it would make a $1 billion investment in Russia over
three years, bringing the total Pepsi investment in the country to $4 billion.
In July 2009, Pepsi started marketing itself as Pecsi in Argentina in response to its name
being mispronounced by 25% of the population and as a way to connect more with all of
the population.
In October 2008, Pepsi announced that it would be redesigning its logo and re-branding
many of its products by early 2009. In 2009, Pepsi, Diet Pepsi and Pepsi Max began using
all lower-case fonts for name brands, and Diet Pepsi Max was re-branded as Pepsi Max.
The brand's blue and red globe trademark became a series of "smiles," with the central
white band arcing at different angles depending on the product until 2010. Pepsi released
this logo in U.S. in late 2008, and later it was released in 2009 in Canada (the first country
outside of the United States for Pepsi's new logo), Brazil, Bolivia, Guatemala, Nicaragua,
Honduras, El Salvador, Colombia, Argentina, Puerto Rico, Costa Rica, Panama, Chile,
Dominican Republic, the Philippines and Australia; in the rest of the world the new logo
has been released in 2010, meaning the old logo has been phased out entirely (most
recently, France and Mexico switched to Pepsi's current logo). The UK started to use the
new Pepsi logo on cans in an order different from the US can. In mid-2010, all Pepsi
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variants, regular, diet, and Pepsi Max, have started using only the medium-sized "smile"
Pepsi Globe.
Pepsi and Pepsi Max cans and bottles in Australia now carry the localized version of the
new Pepsi Logo. The word Pepsi and the logo are in the new style, while the word "Max"
is still in the previous style. Pepsi Wild Cherry finally received the 2008 Pepsi design in
March 2010.
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Product Positioning Of Pepsi Co.
Pepsi prefers to position itself as the beverage choice of the “New Generation”,
“Generation Next”, or just as the “Pepsi Generation”.
These terms adopted in Pepsi’s advertising campaigns are referring to the markets that
marketers refer to as Generation X. The Generation X consumer is profiled to be between
the ages of 18 to 29. They have high expectations in life and are very mobile and
active. They adopt a lifestyle of living for today and not worrying about long-term goals.
Though Pepsi’s main emphasis is on this segment but they also have a focus on the 12 to
18 year old market.
The rich deep blue coloring represents eternal youthfulness and openness. Marketing plans
like “Yeh Dil Maange More”, “Got Another Pepsi”, “Ye Pyass Hai Badi” have made Pepsi
one of the coolest brands recognized among teens in the top five and the only beverage
product in this category.
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Pepsi Marketing Mix
Contributing to this industrial revolution among other industries were
Manufacturing, Agricultural, Automotive, Chemical, Hotel, Banking Business
Services, Real estate, Tourism and information Technology to name a few. But on
such industry that has been holding onto its share of the market since its
inception note in the USA - its birthplace - but all across the globe as well as
the Beverage Industry. It has introduced icons that very few are oblivious to.
The industry and its role in the Pakistan economy, the conditions under which it
is working and the effects it has on the consumers is to remain the concern of
this study. According to Richard D. Brown and George J. Petrol (1986), the
history of the Beverages industry start from 1886, when Atlanta chemist
"Doe" Pemberton developed a reddish - brown syrup with a smidgen of
cocaine (for medicinal purposes) to compete with the many patent medicines and
cure - all elixirs of that time. His company recommended it for the relief of
hangovers headaches, menstrual pains, and a host of other problem. One warm
summer day Pemberton took some syrup down to will is venerable at Jacob's Drug
Store in Atlanta. An ounce of the mixture was put into a glass, which was then
filled with water and ice, creating the first Coca-Cola. The headquarters of
Coca-Cola, now listed by fortune as one of the 50 top corporations in the United
States, is still in Atlanta, Georgia. The actual sale and distribution of that
magic elixir - which, needless to say, on longer contains cocaine - is handled
largely by a number of independent bottlers. These bottlers buy syrup, mix it
with carbonated water, and distribute it to retailers in their area. The number
of retailers who sell Coke to the public almost exceeds counting. In this way a
company with a magic formula but limited capital spread its name around the
country and eventually around the globe.
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The organizational formula for merchandising apparently also had a bit of magic. But, of
course, the product was one that people wanted, which is perhaps the first law of success in
marketing. Coke had been successful in establishing a strong loyal consumer
force, on whom it still relies to this very day. Dong business was no sweat once
the industry had set itself for good and the consumer’s tasted veered.
Everything seemed to go smooth enough until hell finally broke loose. Trouble
started creeping into the very foundations of coke who stated loosing a major
share of its market. Thanks to Pepsi. With virtually the same history Pepsi
started gaining ground and proved to be an excellent example of how
razzle-dazzle advertising sharp marketing and an efficient distribution system
can turn a loser in to a winner in a remarkably short period of time. Pakistan
today has a very competitive beverages market. Opportunities for this industry
to establish itself firmly in this country were grim at first because of the
country's low per capita income and because of the business' status depending on
consumer impetus. But much of it was more or less the same when the business
took a start in the USA as well. The Beverage industry has undergone a
revolutionary change during the last couple of decades. The form of processing
and the machinery used these days has developed and is very sophisticated.
Automatic and computerized plants have been installed in the industry thus
making it an industry which is dealing in million of gallons of beverages
yearly. Pakistan Beverages, the bottlers for Pepsi, and Coke bottlers National
Beverages claim that their primary goal is not to undermine the competition but
to expand the market as a whole. Market expansion, in fact, seems to be the
buzzword these days in the beverage industry. 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. Compare this with a 120 bottles
per year in the Philippines, and the scope for expansion becomes more than
obvious.
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HISTORY OF PEPSI COLA It starts with a small drug store in North Carolina. This little
store belonged to young chemist by the name of "DOC" BROADHAM. 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 then 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. In 1950 the PEPSI COLA'S formula had been changed by reducing its
sweetness and calories and a new advertising campaign "Refresh without
filling" had been launched effectively. Under the supervision of the
diligent sales staff and the Marketing experts, PEPSI COLA began setting new
records of eminence. 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. Sindh Beverages (Pvt.) Ltd.,
claim that PEPSI COLA today is available to more than a billion people in 153
different countries which include the central independent states and China.
Progress Report 1996-98 1996 Refranchised 655 restaurants Closed 379

underperforming restaurants Restructured Pepsi-Cola International Enlisted

strong new bottler in Venezuela Created worldwide snack and beverage units

Announced plan to sell non-core restaurant chains Repurchased 54 million

shares 1997 Spun off Pizza Hut, KFC and Taco Bell as Tricon Refranchised

New Zealand restaurants via public offering Divested five non-core restaurant

chains Divested PFS restaurant supply unit Received $5.5 billion in

restaurant disengagement proceeds Divested Syrena candy business in Poland

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Divested Gerber baby food business in Mexico Placed more than 150,000

beverage coolers and vendors in the U.S. Enlisted new bottlers for

territories in Brazil, Philippines, Japan and Scandinavia Renegotiated

bottler contracts to centralize fountain beverage distribution Expanded U.S.

fountain beverage sales and service group Acquired Pehuamar snack business in

Argentina Divested Obregon flour mill in Mexico Repurchased 69 million

shares 1998 Acquired Tropicana, world’s largest branded juice company

Announced public offering of The Pepsi Bottling Group Launched new blue globe

logo for brand Pepsi Launched WOW! fat-free snacks nationally in the U.S.

Launched Pepsi One, sweetened with Acesulfame K Acquired Smith’s Snackfoods

Company, Australia’s market leader Acquired snack chip businesses in

France, Holland, Belgium Divested BN biscuit business in France Entered

joint venture to become snack chip leader in South and Central America
Acquired Barcel, Chile’s second-largest snack company Expanded stake in

Tasty Foods Egypt Acquired bottling operations in four U.S. states and two

Canadian provinces Placed 190,000 beverage coolers and vendors in the U.S.

Acquired Cracker Jack snack brand Agreed to sell Polish chocolate and biscuit

units Consolidated Pepsi and Frito-Lay U.S. media buying Repurchased 59

million shares.
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Pepsi-Cola Brands
PepsiCo is home to hundreds of brands around the globe. Listed here are some of our most
recognized.
Pepsi
• Pepsi
• Pepsi Max
• Pepsi Max Cease Fire
• Pepsi Natural
• Pepsi One
• Pepsi Throwback
• Pepsi Wild Cherry
• Caffeine Free Pepsi
• Diet Pepsi
• Diet Pepsi Wild Cherry
• Caffeine Free Diet Pepsi
Slice
• Slice - Diet Orange
• Slice - Grape
• Slice - Orange
• Slice - Peach
• Slice - Strawberry
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Tropicana
• Tropicana Fruit Punch
• Tropicana Lemonade
• Tropicana Light - Lemonade
• Tropicana Light - Orangeade
• Tropicana Orangeade
• Tropicana Pink Lemonade
• Tropicana Strawberry Melon
• Tropicana Twister Soda - Diet Orange
• Tropicana Twister Soda - Grape
• Tropicana Twister Soda - Orange
Tropicana Twister Soda - Strawberry
Mountain Dew
• Mountain Dew
• Mountain Dew Code Red
• Mountain Dew Distortion
• Mountain Dew Live Wire
• Mountain Dew Throwback
• Mountain Dew Typhoon
• Mountain Dew Voltage
• Mountain Dew White Out
• Caffeine Free Mountain Dew
• Caffeine Free Diet Mountain Dew
• Diet Mountain Dew
• Diet Mountain Dew Code Red
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Aquafina
• Aquafina
• Aquafina FlavorSplash - Grape
• Aquafina FlavorSplash - Peach Mango
• Aquafina FlavorSplash - Raspberry
• Aquafina FlavorSplash - Strawberry Kiwi
• Aquafina FlavorSplash - Wild Berry
• Aquafina Sparkling - Berry Burst
• Aquafina Sparkling - Citrus Twist
Starbucks (Partnership)
• Frappuccino - Caramel
• Frappuccino - Coffee
• Frappuccino - Dark Chocolate Mocha
• Frappuccino - Light Vanilla
• Frappuccino - Light Mocha
• Frappuccino - Mocha
• Frappuccino - Vanilla
• DoubleShot Coffee Drink
• DoubleShot Light Coffee Drink
• DoubleShot Energy - Cinnamon Dulce
• DoubleShot Energy - Coffee
• DoubleShot Energy - Mocha
• DoubleShot Energy - Vanilla
• DoubleShot Energy - Vanilla Light
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Pepsi-Cola In Pakistan
Pepsi International is a world renowned brand. It is a very well organized multinational
company, which operates almost all over the world. In Pakistan It also has proved itself to
be the No.1 soft drink. Now days Pepsi is recognized as Pakistanis National drink Pepsi's
greatest rival is Coca Cola. Coca Cola has an international recognized brand. Coke’s basic
strength is its brand name. But Pepsi with its aggressive marketing planning and quick
diversification in creating and promoting new ideas and product packaging, is successfully
maintaining is No.1 position in Pakistan. Pepsi is operating in Pakistan, through its 12
bottlers all over Pakistan. These bottlers are Pepsi's strength. Pepsi has given franchise to
these bottlers. Bottlers, produce, distribute and help in promoting the brand. Pepsi has
given franchise to these bottlers. Bottlers, produce, distribute and help in promoting the
brand. Pepsi also launched its fast food chain KFC i.e. "Kentucky Fried Chicken.” We also
did analysis of the soft dink industry in Pakistan and world wide. The soft drinks set to
become world's leading beverage sector. Global consumption of soft drinks is rising by 5%
a year.
The market in Pakistan is surely dominated by Pepsi. It has proves itself to be the No.1 soft
drink in Pakistan. Now days Pepsi is recognized as Pakistanis National drink. In 1971, first
plant of Pepsi was constructed in Multan, and from their after Pepsi is going higher and
higher. Pepsi is the choice soft drink of every one. It is consumed by all age groups because
of its distinctive taste. Compared with other Cola in the market, it is a bit sweeter and it
contributes greatly to its liking by all. Consumer’s survey results explain the same outcome
and Pepsi has been declared as the most wanted soft drink of Pakistan. Pepsi's greatest rival
is Coca Cola. Coca Cola has an international recognized brand. Coke’s basic strength is its
brand name. But Pepsi with its aggressive marketing planning and quick diversification in
creating and promoting new ideas and product packaging, is successfully maintaining is
No.1 position in Pakistan. In coming futurePepsi is also planning to enter into the field of
fruit drinks. For this purpose it has test marketed its mango juice in Karachi for the first
time.
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When Pepsi was introduced in Pakistan, it faced fierce competition with 7up, lemon and
lime drinks, which was established during 1968, in Multan. Pepsi introduced its lemon and
lime, "Teem" to compete with 7up. It successfully, after some years, took over 7up, and
this enhanced Pepsi's profits and market share. In Pakistan, Pepsi with 7up enjoys 70% of
the market share where as the coke just has 20% markets share.
Pepsi is operating in Pakistan, through its 12 bottlers all over Pakistan. These bottlers are
Pepsi's strength. Pepsi has given franchise to these bottlers. Bottlers, produce, distribute
and help in promoting the brand. Pepsi also launched its fast food chain KFC i.e.
"Kentucky Fried Chicken.”
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Unique Selling Proposition (USP) Of Pepsi
The unique selling point of Pepsi in Pakistan is its exclusive advertisement campaigns.
Infect, the major reason of Pepsi’s large market share is its fervent promotional
campaigning. Pepsi has an edge because of its strong brand image, and if you have a brand
you have a immediate advantage because you have a backbone, or a framework on which
to hang your products. Pepsi’s ads reflect the social, cultural values of Pakistan, whereas
the ads of coca cola (its major Competitor) mostly have Western or a Turkish theme. Their
current slogan “Pepsify kro gay” has been highly successful. The main stream celebrities of
Pakistan are used for Pepsi’s promotions thus having them to endorse a brand is a
guaranteed success in itself.

Promotion Strategy
Pepsi promotes its products in a many ways, but focuses mainly on getting products
associated with entertainment icons that appeal to youth. The first major use of this
technique was the signing of Pakistan cricket team as celebrities. Pepsi has followed this
strategy by signing other pop music stars like junaid jamshed and other singers.
Two other areas of entertainment that have been used by Pepsi to promote its brands are
sports and movies. Sports are a popular source of entertainment throughout the world and
is a using it to promote the brand is a main focus of Pepsi. Since sporting events are seen
many times by fans, it provides a good opportunity to increase brand recognition. Movie
stars are also popular throughout the world and are greatly admired by people, so using
them in advertising has a positive effect brand image.
Some of the ways in which Pepsi attract consumers are:
¨ Free Samples ( New products)
¨ Discounts ( RAMDAN Offers)
¨ In-Store Displays – Signs, banners etc.
¨ Entertainment – Games with free T-shirts, Pepsi points under the cap etc.
¨ Sponsorship – sports teams/clubs/events.
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Segmentation Of Pepsi In Pakistan
Place (Distribution) Strategy
Distribution is an important aspect of success in the beverage industry. Since the cola
companies want to focus on making syrup and marketing, they need to have strong, loyal
bottlers. This is especially the case in foreign markets where the cola companies fiercely
battle for good bottlers.
The building of bottlers through joint ventures and the increased maintenance of current
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Segmentation Variables Data
Geography
World Region Asia
Country Pakistan
Cities All major cities of Pakistan
Density Urban
Climate Hot and Dry
Demography
Age 14-30
Gender Male, Female
Family size 1-2, 3-4, 5 +
Family life Cycle Married, Unmarried
Income Rs. 10,000 +
Occupation From middle class to upper class
Education Schools, Colleges, Universities
Religion Major religion of Islam, Christianity and Hinduism
Race Asian
Nationality Pakistani
Psychographic
Social Class Middle class, upper class
Lifestyle Actualizes, Fulfilled, Believers, Achievers, Strivers,
Experience’s markers and Strugglers
Behavioral
Occasions Parties, Birthdays, Sports, Regular Occasions
Benefits Quality Taste
User Status First Time User
Loyalty Status Strong
Readiness Stage Aware, Interested

bottler relationship should be the main focus of Pepsi’s international marketing. One of
Coca-Cola’s major strength’s is its ability to build relationships with its bottlers. Coca-Cola
is very methodical in making sure that its bottlers are happy, while Pepsi has been known
for neglecting its bottlers. This is one area that Pepsi must improve if it is going to take
market share away from Coca-Cola.
Product is distributed through PepsiCo distribution centers. The distributor delivers it to the
grocery retailers, vending companies, restaurants, and warehouse/club stores.
The distribution segments can be broken down into the following:
• Convenience Stores and Gas Stations: 12% of the market
• Vending Companies: 11% of the market
• Restaurants: 20% of the market
• Warehouse/Club Stores: 6% of the market
• Super Markets and Retail Stores: 51% of the market.
SWOT Analysis Of PepsiCo In Pakitan
One of the most important part of the Marketing Plan is SWOT analysis. Lets see the
SWOT analysis of PePsi Co in Pakistan
STRENTH
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1. Company Image:
It also is a reputable org. and is well known all over the world. Perception of producing a
high quality product.
2. Quality Conscious:
They maintain a high quality as Pepsi Cola International collect sample from its different
production facilities and send them for lab test in Tokyo.
3. Good Relation with Franchise:
Throughout its history it has a good relation with franchisers working in different areas of
the world where they have the production facilities.
4. Production Capacity:
It has the highest production capacity i.e. 60,000 cases per day is not only in Pakistan but
also in South Asia.
5. Market Share:
It has a highest market share i.e. 62% in Pakistan and leading a far step head from its
competitors.
6. Large No. of diversity businesses:
This is also its main strength as it ahs diversity in many businesses such as
i. Pepsi beverages
ii. Pepsi foods
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iii. Pepsi Restaurants.
7. High Tech Culture:
The whole culture and business operating environment at Pepsi-Cola-West Asia has quick
access to a centralized database an they use computers as business tools for analysis and
quick decision making.
8. Sponsorships:
They mainly use celebrities in their advertising campaigning like Imran Khan, Wasim
Akram, and Waqar Younas etc. Also sponsor social activates programs like music etc.
WEAKNESS
1. Decline in taste:
During the last years, it was published in Financial post that there has been big complaints
from the customers with regard to the bad taste that they experienced during the span of six
months.
2. Political Franchises:
Such as in Pakistan, Hamayun Ahkhtar is its franchisee who has a strong political support
from a political party which is in opposition. In; their era in government less taxes are
imposed on them but relation increases as they come in opposition. So the selection is not
appropriate as this thing is harmful to their image as well as the strategies.
3. Short term Approach:
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They have a lack of emphasis on this in their advertising such as currently when they losses
the bid for official drink in the 96 cricket world cup. They started a campaign in which they
highlight the factor such as “nothing official about it”.
4. Weak Distribution:
They lack behind in catering the rural areas and just concentrating in the urban areas.
5. Low consumer knowledge:
Unable to maximize local consumer knowledge.
6. Lack of soft drink:
Lack of soft drink “know-how” as a result of diversified business units and generalist
managers
OPPORTUNITIES
1. Increase Population:
As almost in all over the world growth rate is increasing which in turn increases the
demand of products and necessities and especially in Asia the market is growing at a faster
rate as compare to other continents. So they have to attract new entrants.
2. Changing social trend:
As in all over the world people are rushing towards fast food and beverage because of life
which has become much faster, it provide the company a favor to capture this fast moving
market with its take away product.
3. Diversification:
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They may enter in garments business in order to promote their brand mane, by making
sports cloths fro players which represent their name by wearing their clothes.
4. Distribution of snack foods:
Opportunity to distribute Pepsi snack foods in the future.
THREATS
1. Imitators:
They also have a problem of imitators as receives complaints from customers that they find
take product in disguised of Pepsi’s product.
2. Government Regulation:
They face problem if government employ taxes on them which force them to raise the price
of their product.
3. Corporation’s shortage problem:
Again this is also a serious threat from it suppliers as if supplier is unhappy with the
company. He may reduce the supply and exploit the company. This action will surely
affect the production process.
4. Non-carbonated substitutes:
Non-carbonated substitutes, such as juices and tea brands are maintaining a strong foothold
in the market.
5. Political instability:
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The big threat to Pepsi in Pakistan is Political instability and civil unrest.
6. Threat of labor strikes:
External threat of labor strikes and power outages in Pakistan.
TOWS MATRIX OF PEPSI
We have discussed SWOT analysis of Pepsi-Co in our previous topic now here we are
going to discuss the TOWS Matrix of Pepsi-Co, keeping in mind its SWOT analysis.
Following is the detailed analysis of Pepsi-Cola TOWS matrix:
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‘WT’ ANALYSIS
• One weakness that Pepsi posses is that it has very strong taste it really feels that
something highly toxic going inside the body, where as the same product of the
coke is not much strong.
• They also have a problem of imitators as receives complaints from customers that
they find take product in disguised of Pepsi’s product. During the last years, it was
published in financial post that there has been big complaints from the customers
with regard to the bad taste that they experienced during the span of six months. If
they soon pay no attention towards that this will create a big problem for them.
• Large size may lead to conflicting interests.
• New one calorie products have no existing customer base; generic brands can make
similar drinks – cheaper. It is also big threat for any company people may like or
dislike new launching product.
• Such as in Pakistan, Hamayun Ahkhtar is its franchisee who has a strong political
support from a political party which is in opposition. In; their era in government
less taxes are imposed on them but relation increases as they come in opposition.
So the selection is not appropriate as this thing is harmful to their image as well as
the strategies. So this may become a big threat for the Pepsi.
‘WO’ ANALYSIS
• They have a lack of emphasis on this in their advertising such as currently when
they losses the bid for official drink in the 96 cricket world cup. They started a
campaign in which they highlight the factor such as “nothing official about it”. If
they don’t focus on sudden changing’s in their advertising then they can convert
this weakness into opportunity.
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• They lack behind in catering the rural areas and just concentrating in the urban
areas. They should try to increase their distributions and also focus on capturing
rural areas; this will become a big opportunity for them.
• The other big weakness on Pepsi is that they don’t pay any attention towards
garments. They may enter in garments business in order to promote their brand
name, by making sports cloths fro players which represent their name by wearing
their clothes. That must increase the customer and income of the Pepsi.
• High expenses may have trouble balancing cash-flows of such a large operation.
The staff may show dishonesty. They should try to pay much attention towards
their cash flow, and audit there statements on regular basis.
‘ST’ ANALYSIS
• In many countries Pepsi had more expensive products than Coke; such a high price
may limit a lower income family from buying a Pepsi product, therefore which is a
big threat for Pepsi that may Pepsi have to face in the future.
• In foreign countries Pepsi have many branches with different flavors as compare to
Pakistan, which has only 2 or 3 Pepsi products. Non-carbonated substitutes, such as
juices and tea brands are maintaining a strong foothold in the market. Pepsi has a
big threat from COKE, which are its main competitor from about 100 years.
• Pepsi is a foreign company therefore they have a big threat every time on them of
Political instability and civil unrest.
• The whole culture and business operating environment at Pepsi-Cola-West Asia has
quick access to a centralized database and they use computers as business tools for
analysis and quick decision making. Computer breakdowns, viruses and hackers
can reduce efficiency, and must constantly update products or other competitors
will be more advanced.
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• Continuous efforts to research trends an reinforce creativity, if they fail in their
efforts then there is a big threat for the company. The competitors may get benefit
by their plans.
‘SO’ ANALYSIS
• The whole culture and business operating environment at Pepsi-Cola-West Asia has
quick access to a centralized database and they use computers as business tools for
analysis and quick decision making. Internet promotion such as banner ads and
keywords can increase their sales, and more computerized manufacturing and
ordering processes can increase their efficiency and that will become such a big
opportunity for Pepsi.
• It has the highest production capacity i.e. 60,000 cases per day is not only in
Pakistan but also in South Asia. Established network of 45 distributors each
supplying 1,100 retailers. High per capita soft drink consumption – average of 22
servings compared to 5 for Pakistan. At will become such a big opportunity. Due to
large production the product of Pepsi is always available in the market and that will
become useful to attract taste lovers customers.
• Large No. of diversity businesses is also its main strength as it ahs diversity in
many businesses such as Pepsi beverages, Pepsi foods, Pepsi Restaurants, and due
to large number of diversity they can capture more customer, therefore it will
become such a big opportunity for Pepsi.
• Pepsi is also a reputable organization, and is well known all over the world.
Perception of producing a high quality product and strength can become a big
opportunity for Pepsi if they use it in well arranged manner, such as advertising
more and also by conducting concerts to attract more customers.
• They maintain a high quality as Pepsi Cola International collect sample from its
different production facilities and send them for lab test in Tokyo, if they show test
reports on label of there products this will also attract customers.
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• They mainly use celebrities in their advertising campaigning like Imran Khan,
Wasim Akram, and Waqar Younas etc. Also sponsor social activates programmed
like music etc. this will become such a big opportunity to build such a large number
of customers. So we can say that it is one of the big strength that may become a big
opportunity for Pepsi.
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PEST Analysis of Pepsi
The Pest Analysis identifies the political, economical, social a technological influences on
an organization.
POLITICAL INFLUENCES: - The production distribution and use of many of PepsiCo
product are subject to various federal laws, such as the Food, Drug and Cosmetic Act, the
Occupational Safety and Health Act ad the Americans with Disabilities. - The businesses
are also subject to state, local and foreign laws. - The international businesses are subject to
the Government stability in the countries where PepsiCo is trying get into (underdeveloped
markets). - The federal, state, local and foreign environmental laws and regulations. - The
businesses are also subject to de taxation policy in each country they are operating. - They
also have to comply with federal, state, local and foreign environmental laws and
regulations.
ECONOMIC INFLUENCES: - The companies are subject to the harvest of the raw
material that they use in their snack foods, soft drink and juice, like corn, oranges,
grapefruit, vegetables, potatoes, etc. - Because of they rely on trucks to move and distribute
many of their products, fuel is also an important subject, so they are subject to the fuel
prize.
sociocultural
SOCIOCULTURAL INFLUENCES: - PepsiCo and moreover Pepsi is subject to the
lifestyle changes, because of it bases her advertising campaigns in a concrete kind of
people with an special lifestyle, it is for that PepsiCo has to pay a special attention on the
lifestyle changes. - Particularly in the United States Pepsi drinkers are very defined, there is
a kind of people who drinks Pepsi another kind who drinks Coca-Cola, it is for that they
have to pay attention to the social mobility for not losing a possible market. - Taking into

account that PepsiCo is trying to introduce itself in underdeveloped markets, they have to
be careful with the possible problems with the governments of this countries, and with the
problems could rise from PepsiCo act with the people of this countries.
rize fluctuation, and to possible fuel crisis. - Operating in International Markets involves
exposure to volatile movements in foreign exchange rates. The economic impact of foreign
exchange rates movements on them is complex because such changes are often linked to
variability in real growth, inflation, interest rates, governmental actions and other factors. -
PepsiCo is also subject to other economical factors like money supply, energy availability
and cost, business cycles, etc.
TECHNOLOGICAL INFLUENCES: - PepsiCo is subject to new techniques of
manufacturing, for their three business sectors, snack food, juices and soft drinks. - It has
to pay attention to the new distribution techniques. - And they have to fix their attention in
the competence developed, to know about the new products. Porter’s Diamond: The
Porter’s Diamond Analysis tries to explain the Competitive Advantage of Nations. There
are four attributes of a nation comprise Porter’s Diamond of national advantage, they are:
Factor Conditions: The basic factor conditions are natural resources, climate, location, the
more advanced factor conditions are skilled labour, infrastructure and technology. There
are some of these factors that can be obtained by any company (like unskilled labour and
raw materials) and, hence, do not generate sustained competitive advantage. Even though,
we have to take into account that specialized factors involve a heavy and sustained
investment, we have to know that if we are able to achieve them, we could generate a
competitive advantage. Some of the factor conditions PepsiCo has to take into account, in
each coun
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Sting Energy Drink
Pepsico has now entered the energy drinks market by launching ” Sting” in Pakistan
recently. The media break is pretty much visible with good frequency on selected TV
channels. The quick feedback is that the selected channels are hitting the right audience.
Besides, we can hear the disruptive radio executions also on most radio channels.
Sting Energy Drink is a carbonated energy drink from PepsiCo International. It was
launched in Pakistan in 2010 with a widespread advertising campaign.
Sting is launched in two flavors – “Gold Rush” and “Berry Blast” at a price of Rs. 60. The
product is widely distributed and pretty much available everywhere. The highlighting
factors are that it tastes better, it is priced much lesser than the competition, easily
accessible and that it provides a timely boost of energy that keeps you going in your busy
life in a balanced way.

Name Sting
Bicolor
Type Carbonated Energy Drink
Manufacturer PepsiCo
Distributor
Availability Pakistan, Malaysia & Philippines.
Introduced 2010
Color
Flavor Gold Rush & Berry Blast
Variants
Related
Website stingenergy.com
Ingredients
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Carbonated water, Sugar, Citric Acid, Artificial flavour, Maltrodextrin, Sodium Citrate,
Sodium Hexametaphosphate, Taurine, Potassium Sorbate, Caffeine, Sodium Benzoate,
Tartrazine, Inosital, Calcium Disodium EDTA, Modified Food Starch, Panax Ginseng
Extract, Niacinamide, Sunset Yellow, Pyridoxine Hydrochloride and Cyanocobalamin.
Nutritional Information
Serving Size: 250ml
Per Serving
Energy(Kcal) 160
Carbohydrate (g) 40
Vitamin B3 (mg) 7
Vitamin B6 (mg) 0.7
Vitamin B12 (mg) 0.9
Ginseng Extract (mg) 1.6
Inositol (mg) 17
Taurine (mg) 124
Advertising Campaign
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Sting Energy Drink's Hummer traveling down the streets of Karachi.
After the launch of sting in Pakistan, PepsiCo started a widespread campaign, which
included road advertising and tv commercials. Starting from Karachi, the Hummer
(advertising vehicle) travels through different areas and offers free Sting energy drink to
people on the roads. The TV commercial was shot in Malaysia in which a person is shown
generating electricity and charging a car battery after drinking the Sting energy drink. It
airs on all Pakistani TV channels.
Pepsi Sting Big Change In Price
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Energy drinks has gain a market which don’t care much about the price as they are always
expensive then other drinks. Check out the prices of almost all energy drinks in Pakistani
market in which you can also see the price of Pepsi’s energy drink ‘Sting’ of Rs. 60/-
Though Pepsi was already giving their energy drink in less price if we compare it with
others. There were only few who are selling in less price than Pepsi but now they have
leave everyone behind by giving the same amount of energy drink in Rs. 20/- Pepsi has
changed their 250 ml energy drink price from Rs. 60/- to Rs. 20/- and has become the
cheapest energy drink provider. If it would be of any unknown company then one could
doubt about their quality but it is from one of world’s famous company Pepsi. Even when
they sell their energy drink in high price, it was my favorite. And now they are so cheap
that I can have them more often.
Well there are many people who are not impressed by ‘Sting’ and says that it is just
another carbohydrate drink, not an energy drink. People believe that energy drink give you
some more hours to wake up, it stimulates your brain to work more, however it is not the
case with me. I’ve tried all energy drinks and not one of them become successful to escape
me from sleep. So, for me, these all energy drinks are new kind of taste, in which I like
‘Sting’ most. It is good for me now that I can enjoy the same quantity of energy drink in
just Rs. 20/-
Pepsi has changed the tin packing into disposable glass bottle which has tin cap on it. Their
tin pack is still of Rs. 60/- which I believe would be older stock in market. They would be
giving glass bottle from now on.
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Chapter
No.5
Pakistan’s Energy Drinks Market
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We think Red Bull was the first successful energy drink in the market. But afterward
companies realize that it is a very big market of those people who like energy drinks. So
other companies also jumped in to share their part. Recently we have seen many companies
in Pakistan, like Pepsi and Shezan, who have jumped in energy drinks business. One thing
is common in all energy drinks that they are costly then other drinks; juices, malt,
carbohydrate drinks etc. They have a special market which is increasing day by day. We
haven’t seen a shift of people from their regular drink to energy drink but it acts as an add
on in drink list. However some people prefer to go for energy drinks only.
After lots of energy drinks in market, all are trying to compete each other in any way
possible. They are trying to give a better taste because taste is the most prominent change
in these energy drinks. Taste is not acceptable in mass market, however many are trying
now to increase their market share by giving a different taste. Second thing is their price,
they are trying to reduce the price to gather a larger share like a big company Pepsi have
introduced their energy drink ‘Sting’ in just Rs. 60/- as compare to Red Bull the most
famous energy drink costs above Rs. 125/- Thirdly they are working on distribution, trying
to make their drinks available in all parts of the city, in every shop. Few energy drinks have
different strategy to remain with their specific market.
We are sharing our experience with almost all the energy drinks available in market.
85 | P a g e

Red Bull
The most famous energy drink in the market. It was the first one to introduce energy drinks
in Pakistani market. Red Bull kept it’s price high and remain with their specific market
they target. Their price is Rs. 125/- which makes it the most expensive energy drink in the
market. It is mostly available in posh areas of the city in start. Afterward there is a big
change that they seek through an other interesting market and start to supply their bottles to
Pan wala shops which was not bad at all. People over there start trying it and we think that
idea didn’t catch by mass market because it’s hard to see Red Bull at Pan wali dukan
anymore. They have shifted to Pepsi’s ‘Sting’.
We don’t like their taste much because it seems to me that we are drinking any cough
syrup. Though who are fan of Red Bull taunt to all other available energy drinks in market
that they have sweeter taste.
86 | P a g e

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