SECTION 1INTRODUCTIONBeing a student of MBA Marketing it is the pre requisite for the degree of MBA to undergo an internship in an organization for at least six weeks. This internship enables the student to put theoretical knowledge in to practice and later this internship is documented in the form of a report. My concern is with Pepsi Cola International, Pakistan (PCI) and Northern Bottling Company Peshawar.1.1 Purpose of studyThe purpose of this report is to provide an insight to the Northern Bottling Company (Pvt) ltd Peshawar (NBCL), its functions. This report is aimed towards providing a critical analysis of the Sales & marketing function of NBCL Peshawar and to present some recommendations as to how this organization can improve its standing position.1.2 Methodology of ReportI put all my efforts in the completion of this report. My primary and main source of data collection was through observation, personal interviews. A fair amount of secondary data was collected through the office manuals, which was quite helpful during the completion of the report. The internship program was conducted for a period of six week, which is quite a short period and minute information of each and every section of the company is quite difficult. However, I have focused mainly on the sales & marketing department of the NBCL, Peshawar.1.3 Scheme of Internship ReportThis report consists of four sections, which includes:Section 1: Introduction to the ReportThis section includes, purpose, scope, methodology, and scheme of the report.Section 2: Industry Analysis of Soft Drink IndustryIn this section a brief analysis of Soft Drink industry in Pakistan. The main objective of an industry analysis is to understand the size of the industry, its rate of growth, its level of profitability, attractiveness and opportunities, the major types of distribution channels structure being used in the industry and the Key success factors (KSF) which every company should consider important.Section 3: PepsiCo AnalysisThis section includes the introduction of the company. This section also includes Sales, Marketing & Promotional strategies which company which company adopts to remain competitive in the market.Section 4: RecommendationsIn this section I have recommended the possible future of the company based on SWOT analysis and identification of the gaps which Pepsi have left the market need to be filled.SECTION 2INDUSTRY ANALYSISIndustry analysts are projecting that the soft drink industry will grow by almost 6% over the next 3 years. The significant growth is estimated to occur within the realms of the bottled water sector and new developments for both snacks and sodas in the Pakistan. as well as, the rest of the world. Although there are numerous substitutes and alternatives, the savory soft drink industry is going to be a large part of our economy for many more decades. Foreseeable trends are obviously toward the healthier version of this industry. Bottled water sales and revenues have been continually rising since 2003. By 2013 they are projected to increase another 24% in the Pakistan alone. Also, with this healthier Pakistan outlook many Soft drinks companies are changing their ingredients leaning towards diet, zero carbohydrates, caffeine free and other healthier variations of currently popular soft drinks. However, on the opposite end of the spectrum are energy drinks, which are unhealthier than normal sodas, are representing an ever growing percentage of the soft drink industry.Additionally, oil prices could vastly affect this industry based on production costs and transportation costs, both are major fixed costs. Furthermore, as mentioned before, growing health concerns are going to somewhat force companies in this industry to start offering healthier and smarter choices for their everyday soft drink needs.2.1 Key Success FactorsThere are also numerous key success factors that every major competitor must have in order to survive. To endure the crucial competitiveness within this industry companies must: be able to compete with low prices, product diversity and meeting the consumer's wants and needs. Location is an essential factor in order for competitors to survive in the tough nature of this industry. PepsiCo has an exclusive agreement with the fast food giants Savour Foods, KFC and Pizza Hut to only sell Pepsi products. PepsiCo is exploiting its unique relationship with these restaurants to gain more recognition and popularity for its various products.2.1.1 AdvertisingImportant aspect of surviving in the food and beverage industry is the requirement to adequately advertise products. By doing this, companies attract the attention of their prospective consumers and maximize brand awareness. The more the consumers visually see the product, the more likely they are to buy and use that specific product..2.1.2 Constant product innovationPrimarily, constant product innovation is imperative. A company must be able to recognize consumer wants and needs, while maintaining the ability to adjust with the changing market.2.1.3 Size of the organizationAnother key factor is the size of the organization, especially in terms of market share. Large distributors have the ability to negotiate with stadiums, restaurants, universities and school systems, making them the exclusive supplier for a specified period of time. Additionally, they have the ability to commit to mass purchases that significantly lower their costs. They must implement effective distribution channels to remain competitive.2.1.4 AvailabilityWhen a thirsty customer comes on a soft drink corner asks for a desired brand say Coke but if it is not available then is he not going to go for the next available brand. The answer will be yes, because he needs to fulfill his thirst and what is readily available is going to be consumed. Therefore for companies to keep their, customers in general and loyal customer in particular, satisfied, they will have to insure that their goods are in sufficient quantity on the shops. For this the shopkeepers keep extra stock in their shops.2.1.5 Brand loyaltyFurthermore, established brand loyalty is a large aspect of the soft drink industry. Many consumers of carbonated beverages are extremely dedicated to a particular product, and rarely purchase other varieties. This stresses the importance of developing and maintaining a superior brand image.2.1.6 PricePrice, however, is also a key factor because consumers without a strong brand preference will select the product with the most competitive price. Finally, global expansion is a vital factor in the success of a company within the soft drink industry.2.2 Market SizeTotal beverage market is about 120 million cases of which 65% per cent are Pepsi products; about 20 to 22 per cent are Coca-Cola products and Zum Zum cola and Mecca Cola, Amrit Cola and Muslim Cola... there are so many colas; there is RC and Double Cola which are franchised products. Altogether they have around 5 per cent of the market. Due to the Afghan and Iraq wars, they did get a little footing especially in the frontier and Islamabad area but still they are not hugely popular.Total annual sale of soft drink in Pakistan 120 million casesPepsi annual sales in Pakistan 75 millionMarket share of Pepsi 65%Consumption growth 1.7 % per yearHigher value segments such as bottled water and particularly functional drinks will continue to be confined mostly to the niche segments of the market.The bottled water segment in particular is likely to be a key long-term growth segment. Taking into account the limited access the vast majority of consumers have to potable water, the segment is likely to strengthen considerably as disposable incomes rise over the long-term.2.3 Market Growth RateWith a population close to 165 million, Pakistan is one of the largest markets in the Asia Pacific region and potentially a highly lucrative long-term play for fast-moving consumer goods companies, according to Business Monitor International (BMI). Although the highly challenging business environment and the price sensitivity of the consumer base will continue to impede investments, BMI believes that Pakistan's soft drinks industry will continue to provide promising opportunities over their forecast period to 2014. Over the publisher's forecast period to 2017, soft drinks sales are expected to increase 39.8% to PKR19.5 billion ($233 million), with carbonates likely to pick up most of the volume growth.2.4 Market Profitability2.4.1 Poster's Five Forces Model of Soft Drink IndustryBarriers to entryNew Entrants to an industry bring new capacity and a desire to gain market share that puts pressure on prices, costs, and the rate of investment necessary to compete. Threat of a new entry is considerably low in today's soft drink market.In the initial stages of the industry, Coca-cola was the dominant leader of the market, and then new entrant Pepsi made a huge impact on sales and profits of Coke. But, today Cola-Wars between Coke and Pepsi are so dominant, that possible threat of a new entrant is relatively low.Rivalry among firms in the industryThe leaders of the industry are Coke, Pepsi, and Cadbury Schweppes with huge market shares. The rivalry talked over is between the two market leaders Coca-Cola and Pepsi, called 'The Cola Wars'. They have competed on various strategies like price discounts, extensive marketing, and automation of the bottling plants etc.The bargaining power of suppliersPowerful suppliers capture more of the value for themselves by charging higher prices, limiting quality or services, or shifting costs to industry participants.In this industry, the bargaining power of suppliers is low, as there are many suppliers in this industry. And required commodities like flavor, caffeine or additives, sugar, and water are basic goods that are available quite easily. So, producers have no power over the pricing hence the suppliers in this industry are weak.Generally, the supplier group can credibly threaten to integrate forward into the industry. But, here, the supplier would become a new entrant facing many difficulties, so the threat from suppliers is low.The bargaining power of buyersPowerful customers can capture more value by forcing down prices, demanding better quality or more service and can cost industry profitability.Buyers are powerful if they have negotiating leverage with the companies and put pressure over price reductions. In this industry, buyers are strong, because there are many firms producing soft drinks; it is easy to find other supplier in the industry.Large volume buyers are particularly powerful in this industry, including major retail channels like Supermarkets (32.9%), fountain outlets (23.4%), vending machines (14.5%), mass merchandisers (11.8%), convenience stores (7.9%), and other outlets (9.5%). The profitability in each of these segments clearly shows the buyer power and how different buyers pay different prices based on their power to negotiate.The threat of substitute products or servicesA substitute performs the same or a similar function as an industry's product by a different means. The threat of substitution is downstream or indirect, when a substitute replaces a industry's product.This industry has large numbers of substitutes like water, beer, wine; coffee, milk, tea, juices etc are available to the end consumers.The soft drink companies diversify business by offering substitutes themselves to shield themselves from competition.Threat of substitute product is countered by soft drink industry by huge advertising, brand equity, and making their product easily available for consumers, which most substitutes cannot match.2.5 Market TrendsThe soft drink industry is affected by macro environmental factors of the industry that will lead to change. First, the entry/exit of major firms is a trend in the industry that will likely lead to change. More specifically, merger and consolidation has been prevalent in the soft drinks market, causing some firms to exit the industry and then re-enter themselves. Several leading companies have been looking to drive revenue growth and improve market share through the increased economies of scale found through mergers and acquisitions. One specific example is how PepsiCo acquired Quaker Oats, who bought Gatorade which will help expand PepsiCo's energy drink sector. This trend has increased competition as firms' diversification of products is increasing.A second trend in the macro environment is globalization. With the growing use of the internet and other electronic technologies, global communication is rapidly increasing. This is 10 allowing firms to collaborate within the country market and expand into world markets. It has driven competition greatly as companies strive to be first-movers. Specifically, the global soft drink market's compound annual growth rate (CAGR) is expected to expand to 3.8%.Third, changing societal concerns, attitudes, and lifestyles are important trends. In Asia, people are becoming more concerned with a healthy lifestyle. "Consumer awareness of health problems arising from obesity and inactive lifestyles represent a serious risk to the carbonated drinks sector. The trend is causing the industry's business environment to change, as firms are differentiating their products in order to increase sales in a stagnant market. Thus, the long-term industry growth rate, the fourth trend, shows low growth in recent years. The low growth rates are of concern for soft drink companies, and several are creating new strategies to combat the low rates.SECTION 3INTRODUCTION OF PEPSICO3.1 PEPSI COLA INTERNATIONAL3.1.1 IntroductionPepsi 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.3.1.2 Mission Statement"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."3.1.3 Vision Statement"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."3.2 Pepsi Pakistan3.2.1 HistoryThe market in Pakistan is surely dominated by Pepsi. It has proven itself to be the No.1 soft drink in Pakistan. Now days Pepsi is recognized as Pakistan's National drink. In 1971, first plant of Pepsi was constructed in Multan, and from there after Pepsi is going higher and higher. Pepsi is the choice soft drink of every one. It is consumed by all age groups because of its distinctive taste. Compared with other Cola in the market, it is a bit sweeter and it contributes greatly to its liking by all. Consumer's survey results explain the same outcome and Pepsi has been declared as the most wanted soft drink of Pakistan.Pepsi's greatest rival is Coca Cola. Coca Cola has an international recognized brand. Coke's basic strength is its brand name. But Pepsi with its aggressive marketing planning and quick diversification in creating and promoting new ideas and product packaging, is successfully maintaining is No.1 position in Pakistan. In coming future Pepsi has also entered into the field of fruit drinks. For this purpose it has introduced and launches "Slice Mango" and "Slice Apple" after successful test marketed in Karachi. It has also entered in the snacks market with the brand name of "Lays" and capture the high share of snacks industry in Pakistan. Pepsi has also successfully introduced and launch energy drinks with the brand name of "Sting".When Pepsi was introduced in Pakistan, it faced fierce competition with 7up, lemon and lime drinks, which was established during 1968, in Multan. Pepsi introduced its lemon and lime, "Teem" to compete with 7up. It successfully, after some years, took over 7up, and this enhanced Pepsi's profits and market share. In Pakistan, Pepsi with 7up enjoys 70% of the market share where as the coke just has 20% markets share.Pepsi is operating in Pakistan, through its 12 bottlers all over Pakistan. These bottlers are Pepsi's strength. Pepsi has given franchise to these bottlers. Bottlers, produce, distribute and help in promoting the brand. Pepsi also launched its fast food chain KFC i.e. "Kentucky Fried Chicken."3.3 THE NORTHERN BOTTLING CO. (PVT) LIMITED3.3.1 BRIEF HISTORYThe northern bottling company was established in the early 1994, with a motive and objective of producing and selling their different brands of an international beverage produced called 7up, Miranda and Pepsi Cola. It is situated in Hayatabad industrial area Peshawar.The northern bottling company is a private limited company. At the present time Mr. Akbar Shah is the GM of the company. The Pepsi cola international has opened its regional office in Lahore to look after its activities in Pakistan. As the PCI sell franchise to the bottler therefore, they want the bottlers to follow their instruction in certain areas. The company follows the instruction in following areas.The principals of the company have fixed a distribution area for company, in which the company can sell their products. The area is called franchise area or license distribution area.Company strictly follows the quality control standards set by the principals for them.Advertisement is controlled by principal, i.e. they plan, implement, and control the idea and advertisement. Company has no right to advertise the product their own, however they can make suggestion regarding advertisement and publicity.Sales promotion schemes are also prepared by principals and launched by the company under their constructionSECTION 4COMPANY ANALYSIS4.1 Product"Product is a set of tangible and intangible attributes, which may include; packaging, price, color, quality and brand plus the seller's services and reputation". Pepsi Cola international Northern Bottling Company (Pvt.) Ltd. Manufactures and markets five flavors in NWFP market4.2 Stock Keeping Units (SKU's)SSRBThis stands for Single Serving Returnable Bottle (Regular)NBC offering Pepsi, Mirinda, 7-Up & Mountain Dew in this group.LRBThis stands for "Liter Returnable Bottle" this includes Pepsi, Mirinda & 7-Up.Pet Bottle (1.5 Liter)This includes Pepsi, Mirinda & 7-Up. Here Diet Pepsi & 7-Up are also available to enlarge the range of group.NRBThis stand for "Non Returnable Bottle". It can also be called as "Deposable"It has 300ml quantity. This group includes Pepsi, Mirinda, 7-Up, Diet Pepsi & Diet 7-Up.Cane Packing,we are offering cane packing of all that brands that are offered in SSRB. Including Pepsi, Mirinda, 7-Up and Mountain Dew.Post MixThis includes Fresh / Fountain. This group includes Pepsi, Mirinda, 7-Up & Mountain Dew. This facility is offered on "QSR" that stands for "Quick Serving Restaurants" and all those points where no of walk-in-customers in very huge with their short time stay at that point.Latest market shares of brands are given below
BRAND NAME
MARKET SHARE
Pepsi
52 %
Mountain dew
22%
7up
9 %
Mirinda
7 %
Slice
6%
Sting
4%
4.3 Major CompetitorPepsi has a tough competition with Coca Cola while it faces a little competition with the local producers like RC Cola, Gourmet Cola etc. The local producers hardly affect the sales of Pepsi in the market.4.5 Close Vs Distant CompetitorPepsi and Coke are close competitors. It means that both have direct competition in the market, their products are close substitutes for one another. Both the products can influence the market share of one another through effective strategies made to cope up with their competitors.Pepsi cola and Nestle juice are distant competitors of one another. It means that their products satisfy the same want but they are in indirect competition with one another.4.5.1 Segmentation of PepsiPepsi segments its market in several ways. Pepsi mainly segment their market demographically assuming age, income and family size. Pepsi's behavioral segmentation has been a key to the company's success. Age is one of the most significant parts of the segmentation of Pepsi. Pepsi introduces Pepsi diet for the people who are suffering from diabetic and for those who are likely to avoid sugar and for the aged people specially 40 plus. Pepsi mainly produces the Pepsi cola the main customer of Pepsi cola is young people whose age is 10 to 35. On income basis Pepsi also segment their market by making little pack. They offer a competitive price range to all class of people. They consider the economic situation in our country. So they introduce Pepsi in different price for different the people whose income is different. They think about student, poor people, and middle class people economic condition for their pricing. Because the income of a rickshaw puller is very little so Pepsi introduces the 200ml bottle and the price of this bottle is Rs.20, so anyone can easily drink Pepsi by spending Rs.20. Pepsi also serves 250ml, 500ml, 1L, 1.5L, 2L pack. Pepsi and Gourmet Cola are weak competitors. Pepsi is the market leader and Gourmet Cola is the follower. Pepsi is not in direct competition with the Gourmet Cola. It means that Gourmet Cola has little effect on the sales of Pepsi.4.5.2 Segmentation of Coca Cola:Coca Cola segments its market in a number of ways. Coca Cola's, customer segmentation is mainly by their market demographically based on age, income and family size. Coca Cola's behavioral segmentation has been a key to the company's success.Age is one of the most significant parts of the segmentation of Coca Cola. Coca Cola introduces Coca Cola diet for the people who are suffering from diabetic and for those who are likely to avoid sugar and for the aged people specially 40 plus. Coca Cola mainly produces the Coca cola and the main customer of Coca cola is young people whose age is 10 to 35. Coca cola also segment the market on the income basis by making little pack. They have an awesome price rang to all class of people. They introduce different price of containers with different size for the people whose income is different. They think about student, poor people, and middle class people economic condition for their pricing.4.5.3 Target Marketing of PepsiThe reason why Pepsi-Cola has fiercely targeted this market is because it is the largest among its users. Market segment profiles have shown that the majority of carbonated beverage drinkers of Pakistan are youth and middle age people. Pepsi continually targets the Pakistani Schools, Colleges, Universities, restaurants, hotels, and fast food Stores. For this they always spend huge amounts of money to compete with Coca Cola in acquiring contracts with universities to have sold representation of their product distribution. Pepsi customers are mostly teenagers and young adults between the ages of 14 to 30.4.5.4 Target Market of Coca ColaThey make different values to capture this portion of market by marketing targeting. However, they do not fiercely advertise like Pepsi does. They offer Coca Cola in those places where students and young people gather mostly. Their market segment profiles have shown that the majority of carbonated beverage drinkers of Pakistan are youth and middle age people. Same as the Pepsi Coca Cola also targets the Pakistani schools, colleges, universities, restaurants, hotels and fast food stores. For this reason, they always spend huge amounts of money to compete with Pepsi in acquiring contracts with universities to have sold representation of their product distribution. .coca cola customers are mainly teenagers and young adults between the ages of 16 to 35. Coca cola also made diet coke for those who are suffering from sugar problems.4.5.5 Positioning of PepsiPepsiCo main slogan is - "Generation Next!" It spends billions of dollars in trying to impress the young and nearly young with the different creative slogan in every year. PepsiCo plans to further create positions that will give products the greatest advantage in their target markets.4.5.6 Positioning of Coca ColaThe main theme of coca cola is "open happiness" coca cola spends about a billion of dollars in trying to influence the new generation and young boys and girls by giving varieties of advertisement and taste. Every year coca cola spends lots of dollars to make a different creative slogan for targeted people which they want to serve. Coca cola plans to further creative positions that will give the product the greatest advantage in their target markets as well as the Pepsi.4.6 Sales AnalysisAnnual Sales of Pepsi and its main Competitors in Cases
Flavors
Pepsi
Coca Cola
Gourmet Cola
Pepsi/Coke
40560000
24116000
1440000
Dew/Sprite 3G
21060000
9720000
1080000
7up//Sprite
7020000
6480000
900000
Mirinda/Fanta
5460000
2916000
550000
Yearly Sales of Pepsi (2009-2011) in cases
Year
Pepsi/Coke
Dew/Sprite 3G
7up//Sprite
Mirinda/Fanta
Total
2009
43240000
22555000
6977000
5400000
78172000
2010
39320000
22000000
7166000
5169000
73715000
2011
40560000
21060000
7020000
5460000
74100000
4.7 Promotional StrategyPromotion MixAdvertising publicitySales promotion Personal sellingApproximately 60% of the company's total budget has been allocated to advertising and promotion. 30% of this particular budget has been allocated to advertising only and the remaining 10% to other element of promotion. The breakup of the advertising budget is as under:
Promotion tools
% age Allocations
Advertising
60%
Sales Promotion
30%
Other Elements of promotion
10%
Media
%age allocation
Television
80%
Print Media
15%
Billboards
5%
In Pakistan Pepsi is the most liked soft drink especially by young generation so the Pepsi cola company has devised such marketing strategy which attracted them. For this reason they started monitoring the habits of the generation. What they saw was that the students were crazy about cricket and usually liked to idealize them so in order to increase their sales the Pepsi cola company paid high amounts of money to the cricketers to act as their spokes men.Some of the most famous cricketers in the modern era have acted as spoke persons also film stars have been acting as spoke persons.The Pepsi cola company has after doing research also has introduced different size of bottles offered at lower prices so that everyone can afford them. Also Pepsi Company has introduced other soft drinks including mountain dew, seven up and marinda. Pepsi company has introduced other flavors such as Pepsi twist, Pepsi max diet Pepsi.Pepsi Cola Company has also become official sponsors of Pakistan cricket and has sponsored a number of series.Also Pepsi has donated a lot to the earth quake victims and has launched a number of prize schemes to attract new customersAs a result of this marketing strategy Pepsi has become the largest seller of soft drinks in Pakistan and is slowly forming a monopoly in drinks market. Although many soft drinks like Pepsi have been introduced such as Amrit Cola, Quibla Cola offered at lower prices but none of these drinks have been able replace it.Following are the strategies:Comparative Parity Method:As we have already discussed Pepsi pricing strategy is determined by considering the strategy of coca cola so in this case also Pepsi ads are telecasted with the competition in coca cola which is its direct competitor.Objective and task methodsWhen Pepsi introduced any new variant they have advertised it heavily. Objective of which is to make a space for new product in the market. We have seen the heavy advertisement of Pepsi max in previous days.Seasonal advertisement:Frequency of the Pepsi ads varies from time to time. When the season is on Pepsi do heavy advertisement especially in ramzan days or eid occasions but this advertisement not remain consist. We can hardly see the ads of Pepsi now as there is winter season.4.8 Distribution ChannelsA channel of distribution includes the producer and final consumers of the product as well the intermediaries. The intermediaries are the middlemen such as retailer, whole seller's etc. It is to be noted that in the marketing of tangible products to the ultimate consumer's five channels are widely used.Producer( consumerProducer (retailer (consumerProducer (wholesaler (retailer (consumerProducer (agent(retailer(consumerProducer (agent(wholesaler (retailer (consumerIn the case NBCO, the forth channel is used i.e.Producer (Distributor agent (retailer (consumer4.8.1 DISTRIBUTION CHANNEL OF NORTHERN BOTTLINGCOMPANYThe Pepsi cola (NBC BEVERAGES) has sales depots in different cities of NWFP. These stores are managed by wholesalers. The company provides them stock in bulk, which is them distributed to retailer by them. There are eleven wholesalers for the Peshawar base, and twelve wholesalers for the out stations. According to the company's record there were about 60000 retail outlets in the country which sold soft drinks. The percentage sales of different outlets are as under:
Outlet name
%age sale
Outlet name
%age sale
Outlet name
%age sale
Outlet name
%age sale
Grocery store
33%
Cold drink's shops
14%
Bankers
4%
Others
13%
Hotels and restaurants
18%
Cigarette and pawnshops
14%
Drug stores
4%
4.9 SWOT Analysis of PEPSISWOT Analysis, which is based on thorough review of the business (corporation, product category competition, customers and products), identities and evaluates the internal strengths and weakness of the companies well as its external threats and opportunities.STRENGTHDemand of Pepsi is more than its competitors.Company has a very established name and a good reputation.Pepsi has large market share than its competitors.As the target customers of Pepsi is young generation, so Pepsi has more brand loyal customers.Most of the customers are satisfied with the price of the Pepsi.Pepsi is an international company and it has a very strong position internationally.The environment of factory is very good and attractive.Pepsi spends a lot of budget on its advertising.Pepsi has a very vast distribution channel and it is easily available everywhere.Employees are also motivated.Pepsi offers many discount schemes for customers time to time.Pepsi Cola is sponsoring sports, musical concerts, walks.The location of the Pepsi plant is utilized that all major markets of Peshawar are within the reach of the Pepsi plant within 30-45 minutes.WEAKNESSESPepsi target only young customers in their promotions.Crown of the disposable bottle is not good.Demand of disposal bottle is declining.Pepsi tin pack is not available in far off rural areas.Pepsi is not considering many potential outlets like hotels, college canteens etc.OPPORTUNITIESCompany may start entering rural areas also.The company may also diversify its business in some other potential business.Increased interest of people in musical groups, cultural shows and sports has provided an opportunity for Pepsi to increase its sales through them.THREATSThe main competitor of the company is the Coca Cola.At the international level, Pepsi has a very strong competition with Coke. Coke has started its advertisements more effectively to increase their demand and it is a very strong threat for Pepsi.Cola drinks are not good for the health so the awareness level of the people is increasing which is a big threat to the company.RECOMMENDATIONSIt is a known fact that in this world of ours worthies is perfect, as there is always a room of improvement. Every organization no matter how successful it may be most likely to be faced with some problem or the other. This could be due to weak planning, non standard & misdirected of mismanaged operations or may be due to lack of proper trained work force.The marketing world is full of surprises. Who could imagine that Coca Cola would be overtaken by Pepsi? If Coke could be overrun by Pepsi, it would be no wonder that Pepsi might be overtaken by some other beverage. The need then is to combine quality with ingenuity. Along with that, the reputation of the company has to be kept robust.Today we live in a fast moving world where novelty and newness count a lot. One cannot rest on one's laurels. Fresh efforts, newness of approach must remain the cardinal principles of a well orchestrated marketing strategy and the campaign must be relentless. A continuous bombardment in advertisement would convince the clients that Pepsi is a part of their lives. In order to live with style, Pepsi ought to be an essential ingredient of one's life.The Pepsi is at its maturity stage and the sales of company are not growing very rapidly. Company is doing a lot of promotional activities to let the product remain in the market. It holds a large share of the market and whenever the sales state declining, the company can improve it by different promotional activities. Marketers of Pepsi can try to improve sales by improving one or more marketing mix elements. They can cut prices to attract new users and competitor's customers. They can also launch a better advertising campaign or use aggressive sales promotion to improve the sales. Thus, Pepsi is at its maturity stage.References Citedwww.pepsico.comwww.pepsinbl.comwww.asiafoodjournal.comwww.foodjournal.pkwww.businesswire.comwww.sirpepsi .com/ pepsi.11.htm
