Strategic management concepts are applied on Pepsi Cola Pakistan

2. Project Evaluation Report
Organization: Pepsi
Course: Strategic Management

3. Course: Strategic Management
Submitted to: Mr.Naeem Bhojani
Group Members:
Iqra Saleem (57268)
Shiza Kokab (57248)
Ahsan Ilyas (56802)
Hina Abbasi (57419)
Tabassum Mujeeb (56529)
Waleed Javaid (57438)

4. INTRODUCTION TO THE COMPANY:
• Pepsi International is a world renowned
brand.
• Well organized multinational company.
• Best carbonated drink producer in the world.

5. PEPSI COLA PAKISTAN:
• Pepsi has proven itself to be the No.1 soft drink in
Pakistan.
• Now days Pepsi is recognized as Pakistan’s National
drink.
• In 1971, first plant of Pepsi was constructed in Multan.
• Pepsi is consumed by all age groups.
• Consumer’s survey tells that Pepsi is the most wanted
soft drink of Pakistan.

6. MISSION STATEMENT
“To be the world's premier consumer Products
Company focused on convenient foods and
beverages. We seek to produce healthy
financial rewards to investors as we provide
opportunities for growth and enrichment to
our employees, our business partners and the
communities in which we operate. And in
everything we do, we strive for honesty,
fairness and integrity.”

7. VISION STATEMENT:
“To be the world's best beverage company”.
Being the best means providing outstanding
quality, service, cleanliness and value, so that
their every customer is contented and happy
with their products.”

8. HIERARCHY:

9. SWOT ANALYSIS 0F PEPSICO.
Strengths
• Product diversity.
• Competency in mergers and acquisitions.
• Successful marketing and advertising campaigns.
• Complementary product sales.
• CSR
Weaknesses
• Low pricing
• Too low net profit margin.
• Demand of disposal bottle is declining

10. Opportunities
• Growing beverages and snacks consumption in emerging
markets.
• Increasing demand for healthy food and beverages.
• Further expansion through acquisitions.
• Bottled water consumption growth.
Threats
• Changes in consumer tastes.
• Water scarcity
• Decreasing gross profit margin.

11. STRATEGIES
PRODUCT STRATEGY:
• Pepsi Company will launch new product
extension in the market due to consumer’s
psychological factors.
• Thus Pepsi Cola satisfies the consumer’s needs
efficiently by launching a desired product.
• Pepsi is a responsible corporate brand of
Pakistan and have contributed a lot to the
economy.

12. PRICE STRATEGY:
• Price should not be low nor high.
• Price should be set according to the product
demand of public.
• Price should be that which gives the company
maximum revenue.
• Price should not be too low or too high than the
price competitor is charging from their customers
otherwise nobody will buy your product.

13. PROMOTION STRATEGY:
• Pepsi Cola Company has become official sponsor
of Pakistan cricket.
• Pepsi has launched a number of prize schemes to
attract new customers.
DISTRIBUTION STRATEGY:
• Pepsi has given franchises in all over the Pakistan
for the distribution.
• Pepsi has 12 different units in different areas of
Pakistan.
• There are 62 agencies distributing Pepsi only
around Lahore in their respective allocated sub
zones

15. COMPETITOR OF PEPSI
“COCACOLA”
SWOT ANALYSIS
Weaknesses
• Significant focus on
carbonated drinks.
• Undiversified
product portfolio
• High debt level due
to acquisitions
• Negative publicity
Strengths
• World’s largest
market share in
beverage
• Strong marketing
and advertising
• Customer loyalty
• Corporate Social
Responsibility

16. Opportunities
• Bottled water
consumption growth.
• Increasing demand for
healthy food and
beverages.
• Growth through
acquisitions.
Threats
• Changes in consumer
tastes.
• Water scarcity.
• Saturated carbonated
drinks market.

17. STRATEGIES OF COCACOLA
PACKAGING STRATEGY:
• Coca-Cola products are available in different
packing
• 23 regular bottle shell
• 6 bottle pack for 1.5 pets
• 12 bottles in a pack for disposable bottle
• 24 cans in one pack
PROMOTION STRATEGY:
• They get shelves in big departmental stores
• Salesman positions their freezers and their
products in eye catching positions

18. Comparison of Pepsi and Beverage
industry ratios
Ratios PepsiCo Food & Beverage industry
Current Ratio 1.44 1.94
Acid Test Ratio 1.14 0.69
Operating Profit Margin 18.61% 15.19%
Debt Ratio 56.23% 67%
Return on Common Equity 35.36% 32%
Times Interest Earned 20.26% 27.46%

19. GAP ANALYSIS:
Gap analysis between Coke & Pepsi
Market Share:
• Coke is considered to be the market leader on
international basis.
Pepsi is non-alcoholic:
• The independent outside lab in Chicago area has found
the following amount of alcohol in Coca Cola:
• The alcohol level in Coke was 0.0059 or 59 PPM
• The Pepsi has showed less than 0.001% or less than 10
PPM (Instrument cannot detect less than 0.001% it
means zero results.

20. Pepsi has deeper market penetration:
PepsiCo has a number of products in the Food
segment like:
• Lays
• Quaker
• Mountain Dew & 7up
• Aquafina
Coke Marketing usually focuses on:
Society and Special occasions.
Pepsi Marketing focuses on:
Cricket, Youth, Special occasions etc

21. Suggested Gaps that should be
targeted by Pepsi:
• Improve Pepsi’s efficiency in asset
management and investments.
• If efficiency is increased ,costs will be reduced
thus providing Pepsi with even more
competitive advantage over its rivals.