Strategic Marketing

“Submitted To”

Sir. HAMZA BUTT

“Submitted By”
BILAL IKRAM

Roll No: 001214

University of Education Lower mall Campus

Strategic Marketing

Content

 Acknowledgment
 Company overview

 Vision and mission

 Questions & Answers

 Conclusion

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Acknowledgment

First of all I am thankful to Almighty Allah, the Beneficent the Merciful, for giving me strength
and potency to work on this project and complete it successfully.

I am extremely grateful to Mr. Hamza Butt my instructor of ‘’Strategic Marketing” course for
providing me the opportunity and guidance required to complete this report.

I am also thankful to Mr. Ibrahim (territory market Development Manager of Pepsi Riaz Bottler
Ltd) for extending me their co-operation and providing the useful information required to
prepare this report.

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Company overview

Riaz Bottlers (PVT) Limited (RBL) incorporated in Pakistan as a private limited company since
1976.
RBL is the franchise holder of Pepsi cola international with different brands. Like PEPSI, PEPSI
MAX, 7UP, MARINDA, MOUNTAIN DEW, STING. They also launched Aquafina, Slice Juice and are
in process of moving towards some other products.

RBL today is one of the best National Companies in Pakistan. At RBL, they believe that existence
and success is more than just meeting our business objectives and are proud of the success that
the company has achieved. Together different people provide the skills, knowledge and expertise
to deliver the quality of service that customers expect and upon which their reputation depends.

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Vision:

To be the premier convenient food and beverages company with brands that are known and
respected in every corner of the world.

Mission:

We aspire to make PepsiCo the world’s premier consumer Products Company, focused on
convenient foods and beverages. We seek to produce healthy financial rewards for 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 to act with honesty,
openness, fairness and integrity

Objective:

The major objective of the company is to produce and supply highest quality products, which
confirms to both the national and international quality stands. The company is committed to
provide maximum level of customer satisfaction.

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Question NO (1)

What are the main Strengths of Pepsi (RBL) with the Background of market Situation?

The Main Strengths of Pepsi are:

Company Image:

 It also is a reputable org. and is well known all over the world. Perception of producing a
high quality product.

Market Share:

 It has a highest market share i.e. 56% in Pakistan and leading a far step head from its
competitors
Channels of Distribution

The Pepsi uses the following two channels for the distribution of their products.
 Indirect Distribution

Indirect distribution involves agency holders e.g. Lahore franchise has divided its region
i.e. Lahore and Kasur districts in two categories.
 Local Zone
These are 32 agencies distributing Pepsi Products only around Lahore in their respective
allocated sub zones.

 Out Station Zone

17 dealers have been appointed by the bottlers for far distant places and in out skirts of
Lahore and Kasur the dealers involved in direct distribution are only authorized to sell 250
ml (STD) bottle of Pepsi, Team and Marinda.

 Direct Distribution

The factory vehicles operate on 45 direct routes in Lahore selling non-returnable bottles
Litter, Pet and Can.
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Strong brand name:

 As the “PEPSI” it is a strong brand name. Whenever the customers feel thirst he/she
always think about the PEPSI not even the beverage, Which makes the Pepsi brand name
as a stronger brand name this is the reason that Pepsi gets the advantage of Word of
mouth advertisement as well which ultimately raise the sales of Pepsi

Backward Integration:

 Pepsi as a company is using the backward strategy in order to get the basic ingredient of
its beverages (concentrate) from its main head office of America. This concentrate is send
to its production locations, this is also include Strength of Pepsi.

Question no (2)

What are the main Weakness of Pepsi (Rbl) with reference to market perspectives?

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.

Political Franchises:

 Such as in Pakistan, Ghazi Akhtar 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
and now new government imposed tax on raw material as well on them and the selection
is not appropriate as this thing is harmful to their image as well as the strategies.
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TQM

 (Total Quality Management) is not properly implemented in production of Pepsi.

Heavy reliance on franchises

 Company is rely heavily on franchisers, they can get more benefit if they distribute its
product directly.

Question No (3)
What are the opportunities of Pepsi (RBL) in Pakistan with reference to market analysis?

Demographic:

 With its marketing approach of being “The Choice of a new generation.” PCI in Pakistan
views the age 13 to 25. Group as its prime target market. Pakistan with its rapidly growing
population offers a promising prospect to the company. Population of Pakistan increased
with an average growth rate of 3.1% during the 80’s and the current growth rate is 2.82%
annually.

 Increasing population at around 3.0% provides an exciting opportunity to PCI as the

growth rate is highest among the age bracket 13-25. According to the statistics provided
by the Federal Bureau of Statistics Pakistan this age bracket constitutes around 30% of
the total population. This shows the tremendous potential this single segment holds for
PCI.
 Going by numbers this bracket single handily holds 13% of the overall population of the
country and provides an opportunity of long term investment for PCI.

Urbanization

 Through we can’t say that soft drinks aren’t popular among the rural citizens of Pakistan,
the availability of traditional substitutes like Rao (sugarcane Juice) and lassie (a
traditional drink from Punjab) offers a tough competition to Pepsi These traditional drinks
are not only cheaper they also are thought to be more thirst quenching in the summer
heat of the plains than the carbonated water.
 Difficult accessibility of the rural areas due to poor infrastructure and communication is
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another reason that this vast market is still mostly uncovered.

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Because of these reasons the growing trend of urbanization is another opportunity for all soft
drink manufacturers, urban population now constitutes 35% of total population of the country.

Diversification:

 They may enter in garments business in order to promote their brand mane, by making
sports cloths for players which represent their name by wearing their clothes.

Distribution of snack foods:

 Opportunity to distribute Pepsi snack foods in the future.

Question (4)
What are the threat for Pepsi (Rbl) in the market?

Imitators:

 They also have a problem of imitators as receives complaints from customers that they
find take product in disguised of Pepsi’s product.

Government Regulation:

 They face problem if government employ taxes on them which force them to raise the
price of their product.

Corporation’s shortage problem:

 Again this is also a serious threat from its 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.

Non-carbonated substitutes:

 Non-carbonated substitutes, such as juices and tea brands are maintaining a strong
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foothold in the market.

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Political instability:

 The big threat to Pepsi in Pakistan is Political instability and civil unrest .

Threat of labor strikes

 External threat of labor strikes and power outages in Pakistan.

Question (5)
What are business Level Strategies Does Pepsi cola international use in Pakistan?

Prospector:
 Work or act on a corporate strategies. Company always works as a prospector to take
preventive actions. Company scans the environment and after the analysis of the
competitors and situation they plan things. Pepsi cola using the prospector approach
because of “Aqua Fina” launched b6 months before of its exact launched time because
that time coke was going to introduce “Kinley”. That’s is why Pepsi took the proactive
action and introduced the “Aqua Fina” before the “Kinley” to capture the market before
the competitor.

Analyzer:

 Having the knowledge of market share & Competitors Pepsi has planned to launch
Tropicana. Because company analyzed that there is very much room available in these
types of products. After evaluating the overall market then Pepsi has decided to introduce
Tropicana.

Defender:

 Pepsi some time also act as a defender because to retain the loyal customer and to sustain
the market share Pepsi use the defender strategy according to the situation. Company
use product development/enhance existing product line and also some marketing
techniques to be used to defend the company’s products.

Reactor:

 Reactor strategy always be pushed by or to give the full support to the defender strategy,
reactor strategy is basically is the implementation of the defender strategy. E.g. in
Ramadan when coke decrease the price of 1.5 Liter coke from 50-45 then immediately.
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Pepsi acted as a reactor and also decrease the price of 1.5 Liter Pepsi from 50-45.
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Conclusion

Pakistan offers various opportunities to PCI. With one of the highest population growth rate as
well as GDP growth rate in the region, Pakistan possesses tremendous market growth potential.

PCI with its large man and material resources from international operations that can use Pakistan
as a launching base for its campaign to gain the market leader status in the world’s fastest
growing region. Pepsi’s marketing staff has the required skills to capture the market in Pakistan
wherein per capita incomes are going up and where public is ready to pay the price for the life
style image Pepsi is trying to promote.

However Pepsi should be aware of the fact that in the blazing heat of Pakistan traditional drinks
that are available will offer a tough competition because of their time tested thirst quenching
properties and lower prices. Moreover though Pepsi is the market leader in Pakistan it faces a
tough challenge from Coca Cola.

Another area Pepsi will have to guard against is the growing health concerns among its
consumers in Pakistan. However this very threat is exploited by Pepsi as an opportunity for the
Diet Drink line of PCI.

We can summaries main opportunities and threats which Pepsi should try to exploit and avoid
by using its strengths.

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