FINAL PROJECT REPORT

Instructor:

Sir Waqas Rana

Group Members

Sharjeel Ahmed 34731

Vishwas Haimraj 34758

Samra Mukhtar 34821

Muhammad Rehan Ayub 34810

Aneesha 35804

Deepa Bajaj 35805

Name of Company PepsiCo

Date of submission 27th April 2019

Instructor Name Sir Waqas Rana

Course Name Marketing Management

University Name IQRA University

 TABLE OF CONTENTS

S No. Content Page No.

1 Acknowledgment 3

2 Industry Analysis 3

3 Company Description 4

4 Swot Analysis 5

5 Ansoff Matrix 7

6 Brand portfolio Collection 8

7 BCG Matrix 9

8 Conclusion 10

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 ACKNOWLEDGMENT

For the successful accomplishment of our task, we are firstly thankful to ALMIGHTY ALLAH
for his blessing upon. We are also thankful to our course instructor (Sir Waqas Rana) who
provided us with all those guidelines necessary for the accomplishment of our task and within
the light of his supervision, we were able to understand the objective necessary for the task.
Marketing management provided us with the platform of giving a better understanding of
marketing management

INDUSTRY ANALYSIS

As our company is PepsiCo it is one of the world largest potato chips manufactured and 2nd
largest soft drink brand in the world. Pepsi was established in 1898 in the United stars by Caleb
Bradham

Competitive:

PepsiCo has many competitors in the world such as Coca-Cola, Durbar real juice, red bull, etc.
but the main international and biggest competitor of PepsiCo is the Coca-Cola company and the
national competitor is government cola, PepsiCo and cola-cola have great competition in
Pakistan in both urban and rural areas, such as Karachi, Lahore, Islamabad, Quetta, Sukkur,
Shikarpur, Larkana, etc. However, in some rural area, a significant amount of share is also
covered by government cola

Customer:

There are so many customers of PepsiCo and there often demanding a lot. They want to buy,
paying the minimum price to get the best offering available. There is a lesser number of a
competitor of PepsiCo so the customer has a lesser option h shit their choice so, therefore, the
overall power of customer in the beverage industry is lower,

Supplier:

In beverage industry companies which make soft drinks have a large number of supplies so the
bargaining power of sullied gets low due to lack of unique product supplied. Pepsi has different
options and low switching cost. As an international company, PepsiCo does not have many
supplies in Pakistan

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Political:

Pakistan has an unstable political situation. the country has massive internal problems to solve
such as corruption. There is a weak relation with neighbor countries. These factors make
Pakistan an unattractive country to invest in. But the PepsiCo has an opportunity to expand in
politically stable countries like America. It can also thrive from the opportunity of enhanced
intergovernmental cooperation. on the contrary, PepsiCo has to face the threat of demanding
government policies regarding carbonated drinks

Economical:

The economy of Pakistan basically depends on the fund of the International Monetary Fund
(IMF). Furthermore, the economy is rated as weak internationally due to a falling currency of
value, forcing cost and prices to rise. Additionally, low investment in R&D restricts innovation
in the economy.

Social:

Pakistan is a culturally rich country. Strong values and belief are the main parts of society,
enriched with a broad heritage. The society is religion-driven which affects the behavior of an
individual.

Technological:

A technological scenario in Pakistan is yet in the developing stage. The pace of development id
shows due to the limitation of low funds and attention. Pakistan is focused on adopted upgraded
technology rather than investing in innovative technology.

Environment:

PepsiCo must expand in developing economies, as the buying power in such Countries is high, it
must take in to account the element of innovation very seriously. Moreover, with expansion in
business, it ought to strengthen its supply chain system.

COMPANY DESCRIPTION

Pepsi International is a world-renowned brand. It is a very well organized multinational

company, which operates almost all over the world. They produce, one of best-carbonated drinks
in the world. Pepsi is a symbol of hygiene, quality, and service, all over the world. Peps is
producing Cola for more than 100 years and it has dominated the world market for a long time.
It's head office is in New York.

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It was first introduced as “Brads Drinks” in New Bern, North Carolina in 1898 by Caleb
Bradham who made it at his pharmacy where the drink was sold. It was later named Pepsi Cola,
possibly due to digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to
create a fountain drink that was delicious and would aid in digestion and boost energy. In 1903,
Bradham moved the bottling of Pepsi-Cola from his drugstore to rented warehouse. That year,
Bradham sold 7,968 gallons. In 1909, automobile race pioneer Barney Oldfield was the first
celebrity to endorse Pepsi-Cola, describing it as “A Delicious and Healthful” was used over the
next two decades. The market in Pakistan is surely dominated by Pepsi. It has proven itself to be
the NO:1 soft drink in Pakistan. Nowadays Pepsi is recognized as a Pakistani National drink. In
1971, the first plant of Pepsi was constructed in Multan and from thereafter Pepsi is going higher
and higher. Pepsi is the choice of soft drink everyone. It is consumed by all age groups because it
contributes greatly to its liking all. Consumer Survey result explain the same outcome and Pepsi
has been declared as the most wanted soft Drink of Pakistan

SWOT ANALYSIS

Swot analysis has been a framework of arrangement of choice among various for manager
because of its straightforwardness and it delineation of the examination of sound system plan,
matching a firms opportunity and threats with its strengths and weakness essential to making
SWOT examination reasonable is careful internal examination – the conspicuous verification of
strength and weakness and deficiencies around which sound method can be created.

Opportunity:

 As the importance of healthy diet is getting aware by the people, non-carbonated drinks
are becoming the evolving part of the industry, so PepsiCo has got to also avail this
opportunity to mark its existence in the non-carbonated drinks industry.
 To make it available in different places, installing vending machines in public places is
the best choice to make.
 Moreover, to influence the brand market.
 Strong marketing could rapidly increase the pace of sales.
 Invading cellular companies in the market for the payment method of vending machine is
the rapid and effective manner.

Strength:

 Since decades, Pepsi is the well-protected brand name which is an advantage for the
company.
 Pepsi produces a vast variety of product and has a well-built status

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  Secure distribution system all over Pakistan
 Product Doesn’t represent an ethnic or age group, it fits in all criteria of a customer.
 It is a financially stable company, which cannot let them hold back on taking the risk.
 Being an old and popular name amongst the people, loyalty is high and appreciable.

Weakness:

 It has a generous test from Coca-Cola in their soft drink pops class. They are constantly
neck to neck with each other, this test gives a space to not too devoted customer base to
switch stamps quickly.
 Wrong comments or wiped out an execution by the famous personalities/well-known
individual, in this manner, may hurt the brand picture of PepsiCo as they are the
embodiment of the affiliation. Over-reliance on tips for support is a colossal risk.
 Distribution should not be control by the company.
 TQM (Total Quality Management) isn’t genuinely realized in progress of Pepsi

Threats

 Coca-Cola is the basic direct (a person who might win a fight/contest) of Pepsi. It had
dependably been a major risk for the organization.
 Neighborhood brands are also the risk of Pepsi
 Illegal in house creation of refreshment using Pepsi brand
 The security state of the nation isn’t in a good mood.
 Expanding Expense and swelling rates

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 ANSOFF MATRIX

Existing Product New products

Market Penetration Product Development

Existing
 Sell products in the current  Pepsi as developing a new
Product
market product like natural fruits
 Introduce more local favor in juice and partnership with
the local market Starbucks and Unilever,
Lipton to produce coffee and
tea.
 Isotonic drink and mineral
water

Market Development Diversification

New  Pepsi had expanded its business
according to there to difference
Market area and separate into Pepsi
Pakistan, Pepsi India, Pepsi
America Etc.
 Pepsi had changed from the
traditional beverage industry
into the food industry
 Example: Whole grain, Fiber-
Based Product, etc.

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 BRAND PORTFOLIO COLLECTION IN PAKISTAN

Pepsi has 16 different products in Pakistan

SODA WATER CHIPS JUICES GRAINS

Pepsi Cola Aquafina Lays Slice mango Quaker Oat

Diet Pepsi Kurkure Tropicana Pancake mix

7up Cheetos Syrup

Mountain Diet Cereal bar

Sting

Miranda

BCG MATRIX
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Market Share:

In the beverage industry, we have two names worldwide brand which is PepsiCo and Coca-Cola
is having a 35% market share while PepsiCo is having a 65% market share. Pepsi is the market
leader in Pakistan and in almost every category Pepsi is doing its best but whenever it comes to
regular cola coke is still on number one, Pepsi has dropped from 10.3% t 8.4% according to the
beverage digest that is traded publication but according to some other survey PepsiCo have
22.95% shares for the last five years, means while both underperformed the overall market.
Recently it announced design to put $300 million into the task, including the retrofitting of a
plant in Lahore, rare uplifting news for Pakistan, Coca-Cola may the global giant but it remains
to undergo in Pakistan because of Pepsi, coke studio, however, helps coke company to catch up
the market share.

Growth Rate:

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In developed markets you can hardly get single-digit growth but Pakistan has double-digit
growth in case of Pepsi, based on estimation through sources of industries profit estimate
through the total retail value of beverages carbonated and bottled water) sold in Pakistan hit Rs:
297 billion in 2017 and has been growing rate 15.9% per year for past 5 years. The development
in the business, unexpectedly, is driven primarily by development in volume: the normal
Pakistani presently 26 liters every time of the refreshment that Pepsi sells, which is its make
carbonated drinks, yet additionally diet drinks. That number has been developing at a normal of
11.6 every year for the last five years. Pepsi has 150 Pakistani Farmers that work with Pepsi that
have grown up more than 150,000 tons of potatoes each year for our Lay’s snacks business. So it
is really quite a scale business. the factor that the company keeps in mind when it comes to
growth potential. Pepsi considers the country young Population as a real opportunity who are
coming into the economic sphere and are available to buy a top quality global product such as
Pepsi, 7up, Mountain Dew, sting, Lay’s, Aquafina, Cheetos, Kurkure. The PepsiCo organization
keep on getting a charge out of the market lead ship in snacks and beverage category and is the
biggest FMCG company in Pakistan. The organization and its packing partners combined are
among the best five income generators for the nation, and have invested in new modern industry
for recent five years, besides it is developing another snack in light of developing the interest of a
young generation

CONCLUSIONS:

Finally, I believe there is great potential to sell more Pepsi in developing countries, who are
exposed to globalization. If they continue to expand their products to these countries and to be
aware of the culture and customs of these people, these people are not only more Pepsi product.
Therefore, through the continued commitment f the management team are working together to
brainstorm Pepsi will be known as a company that wins the cola wars, Coca-Cola and competing
against two to them.

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