Competitor Analysis of Pepsi-Co

The direct competitor of Pepsi is Coca Cola. While Shandy Cola, Amrat Cola, Mecca Cola were
the local and struggling competitors against Pepsi Inc. There is always unending very tuff
competition between these two rivals with Coca Cola leading with 60% share and Pepsi
gradually increasing with 30% share worldwide. Whereas in Pakistan, Pepsi is leading with 54%
of market share and Coca Cola with 36% market share.

Worldwide Total market share Pakistan’s Total market share

As an indirect competitors nestle and Shezan plays an important role who do not pose a threat to
Pepsi-cola as yet but has the potential to do so as it is exploiting the natural aspect and health
issues more and more to make people conscious about physical fitness Pepsi-cola has launched
“Diet Pepsi” to counter the physical fitness demands
 Products of the Competitors

• Products of the Coca cola Company: Coca Cola (Coke), Sprite, Sprite 3G, Fanta, Diet
Coke, Vanilla Coke, Coke Zero.
• Products of the Shandy Cola Company: Shandy Cola its main product and also produces
Shandy Orange, Shandy Lemonade.
• Products of Amrat Cola Company: Amrat Cola its main product and also produces
Orange Soda and Lemonade.

Strategies:
• They have always focused on the needs and wants of the customer regarding foods and
beverages.

• They have aggressive and hardworking Sales and marketing department to achieve
targets and develop the market.
• They offer strong packages to attract and retain their employees.
• They have always given Constant attention to the competitor’s activities, strategies and
offers worldwide.
• To promote themselves they sponsor known events and concerts providing logos on
shirts.
• They check the quality and standards. The colour, taste, appearance and other specimens
of the bottle time by time so that the standard remains well.

Strategies to Imply:
• Sales persons should continuously visit outlets, listen to their complaints and satisfy their
needs and requirements. There must be Proper check to get the feedback from the
shopkeepers.
• Finding the Location of the poor performing factors and analyzing their cause.
MARKETING MIX OF PEPSI COLA

PRODUCT

Traditionally there are three categories of beverages all over the world. These are:
1. Cola
2. Lemon and Lime, Dite etc.
3. Flavored.

Any beverage company should have these categories, to survive in the beverage market. This is
what the consumer & customer wants. Both companies Pepsi Cola and Coca Cola are producing
all these categories of the beverages. Their product line objective is to compete and promote that
mix, in order to be a fully carbonated soft drinks company. At the initial stage Pepsi introduced
single product i.e.; Pepsi Cola in 250 ml (Standard size). Right now brand Pepsi is producing
these three products:

Source: “made in power point”

These products are available in the following sizes.

 Source” made in power point”

Standard bottle i.e.; 250 ml is most popular size. It is the most profitable package of Pepsi. It was
introduced about 100 years ago, and there is no change in its taste until now and hopefully is the
same in future. 250 ml is Pepsi's star product. Because it has high market share and still market
has great potential to grow in future. It is also a convenience product. People plan little to buy it.
So it is an impulse product. Pepsi is doing wide spread distribution on convenient location. Pepsi
is also promoting 250 ml more, to increase its sales. In product "life cycle" it is still on the
growth stage and it has the potential to grow more for about next 10 to 20 years.

Pepsi's 250 ml returnable is the package of past, present and future too. It is a convenience
product from price point of view. But from the need point of view, it is a luxury product.
Independent media research shows that, Pepsi was never so successful, and then it was during
World Cup Cricket. 55% of the consumer thought that Pepsi has sponsored the World Cup,
whereas only 21% consumers thought that Coke had sponsored the World Cup. This clearly
shows the strength of brand Pepsi.

PRICE
Before pricing the product, every company has, rather should have some goals and objectives.
Pepsi's pricing objectives are:

• Profitability for the bottlers and the company.

• Providing consumers the value for their money.

PRICING STRATEGY
Pepsi cola “regular” always keeps on changing its pricing strategy according to the
circumstances. It has used competition based pricing approach in Karachi, when Coke lowered
their price, so Pepsi also lowered the price. This price war resulted in reduction of 300 ML bottle
to Rs.3, and the market went through the roof.

Normally it sets its prices, based on demand and supply situation of the market, and according to
consumer values. Riaz Bottlers sets their price by "Reverse Calculation". They determine price
first which may be set by the association or prevailing in the market than develop the product. As
competition is getting aggressive, Pepsi is using price promotions. As Pepsi products are very
highly price elastic, so the company is very, efficient, and takes immediate pricing decision.
Pricing decisions are made through mutual understanding between the Pepsi Cola International
and its bottles.

Different prices

Source: “made in power point”

PLACE (DISTRIBUTION)
Distribution is movement of product from manufacturer of that product to end-user. Both
companies have different distribution channel. Distribution objective of brand Pepsi is to make
its products available at an "arms length" i.e. whenever we need Pepsi, it should be there at the
stores and outlets. As 250 ml is a convenience product, Pepsi and its bottlers are making
intensive distribution. Similarly Pepsi (Riaz Bottlers) uses the direct distribution method for
distribution of its product. Products are distributed without the help of middleman like
distributors. Company owns its distribution network. Product is distributed by company
transports.