Pepsi

BADAL DO ZAMANA

The Choice of a New Strategy

PRESENTED BY

Muhammad Qaiser Shahzad

Introduction
 Pepsi is a carbonated soft drink soft produced and
manufactured by PepsiCo. The drink was first made in the 1890s
by pharmacist caleb bradham in New Bern ,North carolina. The
brand was trademarked on June 16, 1903. There have been
many Pepsi Variants produced over the years since 1898.
 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.
 Pepsi is producing Cola for more than 100 years and it has
dominated the world market for a long time.
 Its head office is in New York.
Vision & Mission Statement
Vision
Our vision is 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.
Mission
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.
Pepsi In Pakistan
 The market in Pakistan is surely dominated by Pepsi
 It has proves itself to be the No.1 soft drink in
Pakistan.
 Nowadays Pepsi is recognized as Pakistanis National
drink.
 In 1971, first plant of Pepsi was constructed in Multan,
and from their after Pepsi is going higher and higher.
 Compared with other Cola in the market, it is a bit
sweeter and it contributes greatly to its liking by all.
SWOT
 Strength
1. Company has a very established name and a good reputation.
2. Pepsi has large market share than its competitors.
3. As the target customers of Pepsi is young generation, so Pepsi
has more brand loyal customers.
4. Pepsi is an international company and it has a very strong
position internationally.
5. The environment of factory is very good and attractive.
6. Pepsi spends a lot of budget on its advertising.
7. Pepsi has a very vast distribution channel and it is easily
available everywhere.
8. Employees are also motivated.
9. Pepsi offers many discount schemes for customers time to
time.
10. Pepsi Cola is sponsoring sports, musical concerts, walks.
SWOT Cont’
 Weaknesses
1. Pepsi does not offer any sort of incentive or discount to
its retailers.
2. Pepsi target only young customers in their promotions.
3. Pepsi tin pack is not available in far off rural areas.
4. Pepsi is not considering many potential outlets like
hotels, college canteens etc.
5. Unavailability of all products of Pepsi at the same time
at the same outlet.
6. Offering low margins to its retailers
7. Political Franchises
8. Not all the PepsiCo products bear the company name
SWOT Cont’
 Opportunities
1. Demand of Pepsi is more than its competitors.
2. Increase in population
3. Company may start entering rural areas also.
4. The company may also diversify its business in some other
potential business.
5. Increased interest of people in musical groups, cultural shows
and sports has provided an opportunity for Pepsi to increase
its sales through them.
6. Increasing demand of beverages among young generation will
increase growth rate in this industry.
7. Usage of products among target market consisting young
generation has been increasing day by day.
8. Changing Social Trend
9. Distribution of snack foods
10. Diversification
SWOT
 Threats
1. Tough rivalry among competitors
2. Cola drinks are not good for the health so the
awareness level of the people is in creasing which is a
big threat to the company.
3. Economic downfall might bring meaning full damages.
4. Government regulations
5. Law & order situations of the country
6. Non-Carbonated Substitutes
7. Political Instability
8. Threat of Labor Strikes
9. Shortage of resources
10. Shortage of electricity
PRESENTED BY

NOOR-US-SABA
Internal Factors Evaluation

 It is based on thorough review of the

corporation, product category,
competition, customers, identities and
evaluates the internal strengths and
weakness of the companies.
 Its include Strengths & Weaknesses
External Factors Evaluation

 It is based on thorough review of the

Economic, Demographic, Technological,
Political & Legal, Social & Cultural
Factors.
 Its include Opportunities & Threads
PRESENTED BY

ADEEL JABBAR
TWOS Matrix Of Pepsi

We have discussed SWOT analysis of

Pepsi-Co in our previous slides and now
here we are going to discuss the TOWS
Matrix of Pepsi-Co.
SO Analyses & Developing
Strategies
 S6+O1
 S6=Pepsi spends a lot of budget on its advertising
 O1=Demand of Pepsi is more than its competitors
 Pepsi has a budget capacity to avail or maintain its products’
demand.

Advertising/Promotional Strategy in order to maintain or
increase its demand.
 S7+O3
 S7=Pepsi has a very vast distribution channel and it is easily
available everywhere.
 O3=The company may also diversify its business in some
other potential business
 Pepsi has a strong and wide distribution channel which will help
in placement of new products also.

Product diversification
ST Analyses & Developing
Strategies
 S6+T1+T2
 S6=Pepsi spends a lot of budget on its advertising
 T1=Tough Rivalry Compaction
 T2= Cola drinks are not good for the health so the awareness level of the
people is in creasing which is a big threat to the company.
 Pepsi has a huge budget for advertising.

Advertising/Promotional Strategy in order to place its positioning step ahead
among its competitors.

Awareness Campaigns in order to increase people awareness about products
benefits while using its brand.
 S4+T3+T9
 S4=Pepsi is an international company and it has a very strong position
internationally.
 T3=Economic downfall might bring meaning full damages. (Cost of raw
material, purchasing power etc)
 T9=Shortage of electricity
 Wide Target market and huge market segmentation.

Market Development will help to maintain its profits if any undue or uncertain
events will occur.

Backward Integration will have its own electricity generation equipments
WT Analyses & Developing
Strategies
 W6+T1
 W6= Political Franchises
 T1=Tough Rivalry Compaction
 Political Franchises may lead to the conflicts and it could be the
strength for the competitors.

Forward Integration In order to have its own distribution
channels
 W7+T1
 S4=Not all the PepsiCo products bear the company name.
 T3=Tough Rivalry Compaction
 Promotional Campaign for individual products

Promotional Campaign will help to increase awareness
among people about every products of the company.
WO Analyses & Developing
Strategies
 W5+O8
 W5= Offering low margins to its retailers
 O8= Distribution of snack foods
 Local brands of snack foods provides higher margins.

Pricing strategy will enhance the retailer’s interest to stock
company’s snack products.
 W4+O1
 W4=Unavailability of all products of Pepsi at the same time at
the same outlet.
 O1=Demand of Pepsi is more than its competitors.
 Unavailability of every product might lead bad image on the
customers which will directly benefits to the competitors.

Placement strategy is more important in order to have every
products of the company at the same outlet.
SPACE Matrix
1. Competitive Advantage
Reputation -5 Mean= -4.50
Large Market Share -4
Wide Distribution Channel -5
Customer Loyalty -4
2. Financial Strength
Financially Sound +5 Mean= +5
High Return of Capital +5
High Return On Assets +5
3.Industrial Strength
High industry Growth Rate +5 Mean = +5.5
Potential Industry +5
Increase in Population +6
Increase in use of beverages +6
4. Economic Strength
Economic Stability -2 Mean = -2

CA + IS = +1.0 FS+ES = +3
QSPM
SPACE MATRIX
Conclusion
Pepsi is a well renowned company and it has
maintained its position well by understanding
the client psychology.

 By ensuring quality.
 By introducing ingenuity in products.
 By enlarging its product base .
 By keeping economic factors in view.
 By intense and jazzy advertisements.