Going To the Market - Pepsi Cola Pakistan

1. PEPSI COLA PAKISTAN
GROUP – 7
SHANTANU KUMAR DM14144
SINDHUJA D DM14149
SHIVEN SALUJA DM14248
TULSI CHOUDHARY DM14256
VIJAY KRISHNAN A DM14257
RAMYAA RAMESH DM14266

2. CASE SUMMARY
• Pepsi Cola International is 2nd most player in
both US and World
• Pepsi’s 2nd position outside US is a worry as
there is a big gap between Coke and Pepsi
• Pepsi takes over 7-up in 1986
• The takeover helped it gain 30 additional
markets

3. CASE SUMMARY (Contd. )
• Pepsi groups comprises Frito Lay (Snack), Pizza
Hut, KFC, Taco Bell (restaurant) under its belt
• It was more diversified than coca cola
• Still, Pepsi had an annual growth rate of 29%
as compared to Coca Cola which had only 8%

4. CASE SUMMARY (Contd. )
• Pepsi Pakistan had product line of Cola,
Orange, Lemon
• In Lemon category, they had Teem and 7-up
competing against each other
• PCI had 58% market share in Pakistan

5. GOING TO THE MARKET
FMCG BEVERAGE
Manufacturer Manufacturer
Bottler/Franc Bottler/Franc Bottler/Franc
Distributor Sales Dept
hise hise hise
Retailers Retailers Retailers Retailer Retailer Retailer
Customers Customers Customers Customer Customer Customer

6. DISTRIBUTION CHANNEL -
COMPARISON
ALCOHOLIC NON-ALCOHOLIC
Licensing/Regulations to be No Licensing issues
followed Almost everyone can retail
Not everyone can retail Widespread distribution is
No widespread distribution, seen
is available only in select Territorial war is common
outlets
Territorial war is common

7. Should Merging of Bottlers be carried
out?
Yes, it should be carried out because
the ultimate aim is to capture market share and close the gap
between coke and pepsi
allowing 7-up to be independent would not be taken lightly by PCI
bottlers as they see them as a separate competition
allowing 7-up to compete would benefit coke more as the turf war
turns towards PCI and 7-up
So, Merging of bottlers should be carried out.
Convincing strategy:
Instead of competing against each other, value can be created by
collaborating
Ensuring 7-up would not be sidelined, it would continue to be
marketed as per the current strategy. (Company’s advice on
marketing)

8. PLAN REGARDING BOTTLERS
SHORT TERM LONG TERM
Merge 7-up bottlers with Managing the capital
Pepsi Cola Pakistan investments
Arrive on a consensus about Develop sustainable
marketing plan for the marketing models for
brand portfolio : Pepsi 60%, everyone
Mirinda & Teem 25%, 7-Up
25%
Make them understand the
long term implications

9. TEEM BRAND DECISION
Teem brand should be built in Pakistan
The Pakistani youth consumer are identity
seeking – Teem will provide the Pakistani identity
Since Clear Teem is a hit, Teem cloudy can be
introduced as Teem enjoys a positive brand
equity
Teem is enjoying the second highest market share
in Lime-Lemon category. If it is discontinued, the
share might be split between Sprite and 7-up

10. TEEM – RURAL vs URBAN
Teem being a traditional drink can be
promoted aggressively in rural and sub-urban
markets
A significant portion of population (68%) still
live in rural areas. So, promoting Teem in rural
areas would be apt
This strategy would increase the popularity of
7-up in the urban market

11. BRAND &PRODUCT PORTFOLIO
SHORT TERM LONG TERM
Include, Pepsi, 7-up, Slowly wade out Teem Clear
Mirinda and Teem (Cloudy from Urban, substitute with
and Clear) Teem Cloudy
Promote Teem Cloudy Arrive at a Product portfolio
aggressively in rural areas of Pepsi, 7-up, Mirinda,
Teem Cloudy

12. LEARNINGS
Tackling Franchise Apprehensions
Deciding on Limiting Brand / product line
Exit strategy for A product through
substitution

13. THANK YOU