Sukkur Beverages (SBL)

Product Life Cycle of SBL

Presenters:
Meeran Shah
Rizwan Rasheed
Rashid Ali
Saqlain
Contents:
• Introduction of the Sukkur Beverage
• Competitive Analysis of Pepsi
• Critical Analysis Of the Company’s operations
• Product lifecycle Stages
• Product Innovation for Sustainability
• Future Implications
• Conclusion
 Introduction of the Sukkur Beverages

History: Sukkur Beverages was incorporated in September

1974 as a private limited organization and the prime initiator
of carbonated sodas in the Inside Sindh District and Lining
South locale of Punjab

Environment: Despite of having political challenges in this

region they have increased their sales by 20% p.a.

Products: Their Successful products are:

• Pepsi
• 7 up
• Dew
• Lays etc..

SBL Commitments: Having large market share, SBL is

consistently upgrading their infrastructure.
Competitive Analysis of Pepsi
 Coca Cola’s Arrival

• Coca-Cola's inception in Pakistan: 1953

• Market leader for 37 years
• Market share: Coca-Cola 28%, Pepsi 65%
• Competition with Pepsi
• Higher taxes for Coca-Cola
• Supply chain challenges
 SWOT Analysis of Coca Cola & PepsiCo
Coca Cola
Strengths:
•Iconic brand with a strong global presence.
•Extensive product portfolio including Coke, Sprite, Fanta, and Dasani water.
•High customer satisfaction and loyalty due to brand recognition.
•Unique and refreshing taste that fosters addiction and loyalty.
Weaknesses:
•Strong competition from Pepsi, which offers a wider range of snack products.
•Concerns over health issues like obesity and diabetes associated with carbonated beverages.
•Lack of safer alternative products to address health concerns.
Opportunities:
•Potential for new product development and innovation in the beverage industry.
•Expansion into health-related food items to diversify product offerings.
•Collaboration with restaurants and cafes to increase market presence and visibility.
Threats:
•Competition from local brands like Gourmet entering the market.
•Declining consumption of soft drinks due to health consciousness.
•Emergence of soda alternatives in the global market.
•Missed opportunities for diversification into non-beverage food segments, allowing competitors
like Pepsi to dominate certain markets.
PepsiCo
Strengths:
1.Reputable company image known globally for high-quality products.
2.Commitment to quality demonstrated through rigorous testing procedures.
3.Strong relationship with franchisees across the globe.
4.High production capacity, leading in South Asia with 60,000 cases per day.
Weaknesses:
5.Decline in taste quality reported by consumers in recent years.
6.Political affiliations with franchisees leading to image and operational challenges.
7.Weak distribution strategy, focusing mainly on developed areas and neglecting rural markets.
Opportunities:
8.Growing population worldwide, especially in Asia, increases demand for products.
9.Changing social trends favoring fast-food and soft drinks present opportunities for market expansion.
10.Diversification into clothing business could enhance brand visibility and appeal to new customer
segments.
Threats:
11.Imitation by local brands could erode Pepsi's market share.
12.Government regulations and taxes may increase operational costs and affect pricing.
13.Supplier dissatisfaction leading to supply shortages could disrupt production processes and impact
Pepsi's operations.
 Competitive Advantage of PepsiCo
Strong Brand Portfolio:
• PepsiCo is the owner of several well-known and dependable brands that are trusted by
people all over the world, such as Quaker, Gatorade, Lay's, and Pepsi.
Product Diversification:
• PepsiCo's diverse product line, which includes juices, sports drinks, snacks, and carbonated
soft drinks, helps to lessen its reliance on any one product or market segment.

Marketing and Advertising:

• PepsiCo has a track record of creative and successful marketing initiatives that support and
enhance its brand appeal to customers. Such as using celebrities from different industries in
its marketing campaign which covers different preferences of customers.

Distribution Network:
• Due to PepsiCo's robust distribution network, a variety of retail locations, such as
supermarkets, convenience stores, and vending machines, carry its products. Due to this
Pepsi is found everywhere with ease.
 Core Competencies of PepsiCo.

Supply Chain Management:

• PepsiCo has an exceptionally proficient supply chain network that permits it to supply and
distribute products to the market rapidly and cost-efficiently.

Marketing and Branding:

• PepsiCo has expertise in marketing and branding, allowing it to create strong, differentiated
brands that resonate with consumers and make Pepsi different from its competitors and its
products preferable.

Research and Development:

• PepsiCo invests heavily in research and development department to produce new products
and improve existing ones to meet the currents trends and survive in the market cope with
its rivals.

Sustainability Practices:
• PepsiCo is determined to sustainability and has implemented many practices to reduce its
environmental impact, such as water conservation and recycling processes.
 Introduction to stages of product lifecycle

Introduction: This is when a new product is launched into the market. Companies
invest in research, development, and marketing to introduce the product to
customers. Sales are typically low as awareness is built.

Growth: In this stage, the product gains momentum. Sales increase rapidly as more
customers become aware of and purchase the product. The company may expand
distribution channels and invest heavily in marketing to capitalize on the growing
demand.

Maturity: Sales stabilize in the maturity stage. The product has reached its peak
level of acceptance in the market, and competition may be fierce. Companies focus
on maintaining market share through product improvements, pricing strategies, and
marketing efforts.

Decline: sales start to decline as the product becomes outdated or faces

competition from newer alternatives. Companies may choose to discontinue the
product, reduce marketing efforts, or find ways to extend its life through
promotions or product modifications.
Critical Analysis Of the Company’s operations
Strategies Used:
 Implement Based on conditions
 Mixed (differentiation and rapid response) but almost
differentiation
Steps for launching new products:
 Ideas, feasibility of product, consumer needs, product
specifications, test market and evaluate product lifecycle,
and introduce in the market.
 R&D>market preferences and consumer taste
 Capacity of organization to produce that product
 All Dept: collectively worked to introduce new product in
the market.
Make/Buy new product components:
 Purchase components(5% make internally)
 Carbonated water(National market),Bottles from Punjab,
and chemical from International market.
Inventory management:
Maintain Inventory:
 Raw material and finished goods inventory
count cycle of your inventory on daily basis
 hourly on daily basis
 barcode tracking system
 purpose behind this counting is to inform company about
the inventory problems and inventory needs
inventory shrinkage Problems:
 5% toralence benchmark of bearing loss
Managing Quality
Ways to improving quality that can lead reduce cost:
 Reach economies of scale to reduce cost
determinants of service quality
 Value Employee Loyalty which is helpful to increase in the
productivity,
 Drives Loyalty which is helpful to improve the internal
Quality Drives which impact on the Employee Satisfaction,
 Customer loyalty which helps to increase in the
profitability,
 Growth strategy which increase the Customer Satisfaction
Using frequently inspection and which methods used
 Quality Control through the inspection.
 Raw Material Testing (Sugar Concentrate, Carbon dioxide
etc.),
 Syrup Testing, Finished Product Testing,
 In assembly, Before and After the Delivery,
 In Production, and Internal & External Audit.
 We almost inspect all the stages from raw material to final
product stage.
Forecasting:
Type of forecasting used:
Quantitative method to forecasting
 The sale, demand of new products, required inventory,
required raw material, and analyze the trends and
environment.
 But sometime we also used qualitative method to forecast
When:
 Our dealers, suppliers and stakeholders are far to us then
they create difficulties for us so because of it we use
qualitative methods
 Mostly use seasonal factors because of the nature of
product.
 Also used demographic and other secret methods based on
different conditions. For example we use one method in
sukkur and another method in other beverage
Any importance of Forecasting in supply chain management:
 If we can’t forecast the required inventory of bottles then
supplier can provide surplus or shortage of inventory of
bottles it creates problems in our forecasted production
and forecasted sales of the next year of the company.
Supply Chain Management:
techniques use for your market growth:
 We use vertical integration with both forward and backward integration technique
 We purchase loyal suppliers and distributors.
 Out from the all suppliers, we have agreement with some suppliers less than or equal to 5
years
 In sukkur forward integration distributors are Royal Taj, KFC, Pizza Town, Sindhiri and other
retailers.
issues in their supply chain management
 inventory shortage/surplus (because of understated/overstated forecasting in seasonal
months)
Logistics and distribution system
 safe delivery of the product
 depends on distance of delivery:
o if the distance is short then use own transportations
o if the distance of delivery is long then purchase transport facility from third party.
Product Life Cycle:
Introduction period:
 Use R&D to track the market preferences and trends based on customer requirement -like what customer
want in our product and what type of flavor it will be in our product- and we make new product accordingly

Growth Period:
 Do marketing and analyze the market demand and consumer needs -is our product meet and fulfill the
customers expectation” if it works then we market it and increase our sales and introduce new flavors- like
zero sugar (sugar free),zero sugar wild cherry etc- in our product as we capture the large market share and
increase our sales to expand our product in the market and sales growth in the market

Maturity Period:
 Use little bit modifications-like 20% extra etc- to increase the life of the product and achieve economies of
scale in this stage. Through this we reduce the cost of the product and increase the life of the product in the
market.

Decline Period:
 Use R&D to make new product from the idea generation to finished product launch in the market as we
connect and capture our market share and continuously operate in the market.
How operations of PepsiCo helps in
creating Competitive Advantage :

 Supply Chain Management & Localized Product Innovation

1. Efficient Supply Chain Management:

1. Source raw materials locally
2. Reduce transportation costs
2. Localized Product Innovation:
1. PepsiCo make products based on local preferences
2. Introduce region-specific flavors
3. Examples: Lay's chips in masala and nimco flavors
Product Innovation for Sustainability :

o R&D for sustainable packaging Like:

Example: Lay's snacks packaging :

1. Introduction of "Light as Air" packaging for Lay's snacks
2. Reduced environmental footprint
Inventory Management in Sukkur,
Pakistan
1. Inventory Management Focus:
1. Accurate demand forecasting
2. Efficient safety stock levels
3. Just-in-time practices
2. Example: Summer Season Adjustment:
1. Increased safety stock for beverages like Pepsi, 7up and Mirinda.
2. Strategic distribution center placement
3. Adjusted production schedules
Inventory Management in Sukkur,
Pakistan
1. Inventory Management Focus:
1. Accurate demand forecasting
2. Efficient safety stock levels
3. Just-in-time practices
2. Example: Summer Season Adjustment:
1. Increased safety stock for beverages like Pepsi, 7up and Mirinda.
2. Strategic distribution center placement
3. Adjusted production schedules
Future Implications

 Adjusting to Current Market Trends

 Enhancing the Supply Chain
 Quality Control
 Product Life Cycle Management
 Marketing Growth
 Integration of Technology
 Actions for Sustainability
 Meeting Risks
Conclusion