Presented By: Rao Zaki (FA12-MBT-102) Shuaib Aslam (FA12-MBT-084) Usman Aslam (FA12-MBT-066) Awais Ali (FA12-MBT-018)

Marketing Strategies of PEPSI

Introduction and History of Pepsi Product Strategy Positioning & Differentiation Strategy Price Strategy Distribution Strategy Promotional Strategy Competitive Strategy Target Marketing Strategy Corporate Strategy Product Line Extension Challenges & Opportunity faced by Pepsi Marketing Strategy of Pepsi

Contents

World renowned brand and Carbonated Soft drink

Pepsi is a symbol of hygiene, quality and service, all over the world.

Producing Cola for more than 100 years

Dominated the world market for a Long time

Introduction:

First introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by Caleb Bradham

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse.

Pepsi is recognized as Pakistanis National drink. In 1971, first plant of Pepsi was constructed in Multan

History:

Packaging:For protecting the syrup, Pepsi Cola uses the glass as well as

plastic bottles of different quantities.

250 ml Regular Bottle 330 ml Tin 500 ml Disposable Bottle 1000 ml Regular Liter Bottle 1500 ml Disposable Bottle 2250 ml Family pack Disposable Bottle

Product strategy

Evolution of Pepsi logo

The positioning of Pepsi in the consumer mind is done by the following ways Physical positioning

Perceptual Positioning

Positioning & Differentiation Strategy

Low quantity of cafeen Available in regular size

Perceptual Positioning Refreshing drink Youth Oriented

Physical positioning

Pepsi differentiate himself on the basis of its sweeter taste

Pepsi’s ads reflect the social, cultural values of Pakistan and main stream celebrities of Pakistan are used for Pepsi’s promotions So it is a unique selling point(USP) of Pepsi

Differentiation Strategy

Pepsi set its price in Pakistan according to international market.

Pepsi also done a survey for setting a price in Pakistan as well as in all-over the world.

Price should not be low nor high, so that it would be affordable to the common consumer.

Price Strategy

Pepsi use Intensive strategy for its distribution

Pepsi has given franchises in all over the Pakistan for the distribution(Pakistan Bottlers, Riaz Bottlers, Punjab Beverages and Shamim & company)

Pepsi has 12 different units in different areas of Pakistan

There are 62 agencies distributing Pepsi only around Lahore in their respective allocated sub zones.

Distribution Strategy

Pepsi Cola Company has also become official sponsors of Pakistan cricket

Pepsi has launched a number of prize schemes to attract new customers

TPR(Trade Price Reduction) is a promotional strategy of Pepsi on ramzan and Eid . One case is free on buying 10 cases of Pepsi.

Promotional Strategy

Pepsi have a 53% Market share in Pakistan

Pepsi also extend his product line for the competition

Pepsi is available almost in everywhere in Pakistan. So it is a competitive edge

Competitive Strategy

Strategic options for Pepsi are

Frontal attack: Sweeter taste and Reduce the price to RS.5

in1994 Leapfrog Strategy: Pepsi launched a new product like Dew and

Sting Encirclement Strategy:

Targeting several smaller untapped or underdeveloped segments like Rural areas and small cities of Pakistan

Pepsi is a Follower in a Pakistani market

Pepsi targeted the youth

Pepsi targeted the every class of Pakistan whether it is a Middle, Upper and lower class

Pepsi targeted the South Asia Region through Cricket Sponsorship in that region

Target Marketing Strategy

"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.“

"To increase the value of their shareholder's investment through sales growth, cost control and wise investment of resources."

Corporate Strategy

Pepsi has 16 different products in Pakistan because New products is 2nd lag of the company

Product Line Extension

Soda Water Chips Juices

Pepsi Cola Aquafina Lays Tropicana

7Up Kurkure

Miranda Cheetos

7Up Zero

Pepsi Diet

Dew

Sting

Teem

Pepsi Twist

At that time the Pepsi is on Maturity stage which is identify by these two reason.

Market share is up to 53% They are capturing only the 53% of the total

consumer (actual and potential)An actual buyer is someone who is

committed to buying a product whereas a potential buyer is some who is interested in buying, but may not.

Product Life Cycle Strategy

The main competitor of the company is the Coca Cola But Gourmet Cola is also a threat in future

Cola drinks are not good for the health so the awareness level of the people is increasing

Inflationary Trend in the Market

Electricity Crisis

Poor Law & order situation

Challenges

Opportunity through extending product line

Can get more market by extending distribution into the rural areas

Market have still potential

Opportunities:

Need to work towards CSR

Use of E-marketing for promotional activity Email marketing Sms marketing(Viral marketing

generate) Social media marketing(should be

interactive toward customers) FB, Twitter and Blogs

Marketing Strategy of Pepsi

 The following are the reference material where the

information is collected.

Company website www.pepsico.com Project Outline

BIBLIOGRAPHY