PRINCIPLES OF MARKETING

MARKET RESEARCH ON PEPSI COLA.

SUBMITTED TO: PROFESSOR SHAHZAD ALAM SUBMITTED BY: Shozab bin Tahi : !"!# U$% Manan: !!"& Tai$oo Ah$%': #""# Faha' M()h*a+: #"#,

CONTENT
Topic Page no History_____________________________________________________ 3 PepsiCo. Headquarters 3 Riaz Bottlers Private Limited, Pakistan.. 3 Ingredients.. 4 Exclusive Summary___________________________________________ Current arket !ituation... #verall arket !$are . arket &es'ription . !logans .. Produ't Revie(. Competitive Review___________________________________________ &istri*ution Revie(. -dvertisement Revie(... S!OT "nalysis______________________________________________ !trengt$s... .eaknesses. #pportunities.. 0$reats... Produ't Li1e C2'le %ar&eting O'(ective__________________________________________ arketing !trateg2 Positioning . Branding.. Pa'kaging .. Produ't !trateg2 Pri'e !trateg2 %ar&et Researc*____________________________________________ 5a'tors In1luen'ing Consumer C$oi'e .. Budgeting and Controlling ... !ales -nal2sis arket !$are -nal2sis. 5 " % % % ) +, +, #$ +% +% +/ +/ +/ #) +3 +3 4, 4, 4, 4+ ++ 44 43 43 43

arketing Pro1ita*ilit2 -nal2sis..

43

Type %anu,acturer Country o, Origin -ntro.uce. Relate. Pro.ucts

Cola PepsiCo. 6nited !tates +)3) 7as Brad8s &rink9 :une+%, +3,3 7as Pepsi; Cola9 +3%+ 7as Pepsi9 Co'a;Cola RC Cola &r Pepper In'a <ola Irn Bru

History
PepsiCo. is a (orld leader in 'onvenient sna'ks, 1oods and *everages (it$ revenues o1 t$an =33 *illion and over +)",,,, emplo2ees. 0$e 'ompan2 'onsists o1 PepsiCo -meri'as 5ood 7P-59, PepsiCo -meri'as Beverages 7P-B9 and PepsiCo. International 7PI9. P-5 in'ludes 5rito;La2 >ort$ -meri'a, ?uaker 5oods >ort$ -meri'a and all Latin -meri'a 1ood and sna'k *usinesses, in'luding !a*ritas and @amesa *usinesses in eAi'o. P-B in'ludes PepsiCo. Beverages >ort$ -meri'a and all Latin -meri'an *everage *usinesses. PI in'ludes all PepsiCo. *usinesses in t$e 6nited <ingdom, Burope, -sia, iddle Bast and -1ri'a. PepsiCo *rands are availa*le in nearl2 4,, 'ountries and generate sales at t$e retail level o1 more t$an =3) *illion. !ome o1 PepsiCo8s *rands names are more t$an +,, 2ears old, *ut t$e 'orporation is relativel2 2oung. PepsiCo (as 1ounded in +3%" t$roug$ t$e merger o1 Pepsi Cold and 5rito La2. 0ropi'ana (as a'quired in +33) and PepsiCo merged (it$ 0$e ?uaker #ats Compan2, in'luding @atorade, in 4,,+. PepsiCo o11ers produ't '$oi'e to meet a *road variet2 o1 needs and pre1eren'e 1rom 1un 1or 2ou items to produ't '$oi'es t$at 'ontri*ute to $ealt$ier li1est2les. PepsiCo/s %ission -s0 10o *e t$e (orld8s premier 'onsumer CProdu'ts Compan2D 1o'used on 'onvenient 1oods and *everages. .e seek to produ'e $ealt$2 1inan'ial re(ards to investors as (e provide opportunities 1or gro(t$ and enri'$ment to our

emplo2ees, our *usiness partners and t$e 'ommunities in ($i'$ (e operate. -nd in ever2t$ing (e do, (e strive 1or $onest2 1airness and integrit2. 2

PepsiCo Hea.3uarters
PepsiCo .orld Headquarters is lo'ated in Pur'$ase, >e( Eork. 0$e seven; *uilding $eadquarters 'ompleA (as designed *2 Bd(ard &urrell !tone, one o1 -meri'a8s 1oremost ar'$ite'ts.

Ria4 5ottlers Private 6imite.7 Pa&istan

Riaz Bottlers 7PF09 Limited 7RBL9 in'orporated in Pakistan as a private limited 'ompan2 in +3/%. RBL is t$e 1ran'$ise $older o1 Pepsi 'ola international (it$ seven *rands. Like PBP!I, PBP!I -G, /6P, -RI>&-, #6>0-I> &B.. 0$e2 $ave re'entl2 laun'$ed -qua1ina and t$e2 are in pro'ess o1 moving to(ards some ot$er produ'ts. RBL toda2 is one o1 t$e *est >ational Companies in Pakistan. -t RBL, t$e2 *elieve t$at t$eir eAisten'e and su''ess is more t$an Hust meeting t$eir *usiness o*He'tives and t$e2 are proud o1 t$e su''ess t$at t$e 'ompan2 $as a'$ieved. 0oget$er t$eir people provide t$e skills, kno(ledge and eApertise to deliver t$e qualit2 o1 servi'e t$at t$eir 'ustomers eApe't and upon ($i'$ t$e2 reputation depends.

-ngre.ients
Pepsi;Cola 'ontains *asi' ingredients 1ound in most ot$er similar drinks in'luding 'ar*onated (ater, $ig$ 1ru'tose 'orn s2rup, sugar, 'olorings, p$osp$ori' a'id, 'a11eine, 'itri' a'id and natural 1lavors. 0$e 'a11eine;1ree Pepsi;Cola 'ontains t$e same ingredients minus t$e 'a11eine. 0$e original Pepsi;Cola re'ipe (as availa*le 1rom do'uments 1iled (it$ t$e 'ourt at t$e time t$at t$e Pepsi;Cola Compan2 (ent *ankrupt in +343. 0$e original 1ormula 'ontained neit$er 'ola nor 'a11eine. -ngre.ients as seen on pro.ucts0 Car*onated (ater, glu'ose;1ru'tose andIor sugar, 'aramel 'olor, p$osp$ori' a'id, 'a11eine, 'itri' a'id, 1lavor. Energy 9at So.ium Car'o*y.rates Sugar Protein Ca,,eine "mount per #88 ml +,,." k: ,g ,.3) mg ++./4 g ++.,4 g ,g +, mg

Executive Summary
Pepsi Cola, Pepsi Cola *everages *usiness (as 1ound at turn o1 t$e 'entur2 *2 Cale* Brad$am a >e( Bern >.C druggist ($o 1ormulated Pepsi Cola. Pepsi Cola Compan2 no( produ'es and markets nearl2 4,, re1res$ment *everages to retail, restaurants and 1ood servi'e 'ustomers in more t$an +3, 'ountries and territories around t$e (orld and generates revenue o1 over +) *illion dollars. -lt$oug$ Pepsi $oldings over t$e 2ears $ave *e'ome diverse in su'$ 1ields as t$e sna'k industr2 and restaurants industr2 t$is port1olio (ill dis'uss its 'ore *usiness and its $ig$l2 su''ess1ul *usiness o1 *everages. 0$e so1t drink industr2 'ustomer *ase is pro*a*l2 t$e (idest and t$e deepest *ase in a (orld t$at is 1looded (it$ man2 'ategories. -''ording to Beverage &igest t$e 'ustomer *ased 1or so1t drinks is ($opping 3"J o1 regular users in 6nited !tates. 0$is represents a large 1ield o1 potential 'ustomers o1 Pepsi Cola. Eet alt$oug$ Pepsi 'ould adHust t$e maHorit2 1alla'2 to market t$eir produ't, 0$ese terms adopted in Pepsi8s advertising 'ampaigns are re1erring to t$e markets t$at marketers re1er to as @eneration G. 0$e @eneration G 'onsumer is pro1iled to *e *et(een t$e ages o1 +) and 43. 0$e2 $ave $ig$ eApe'tations in li1e and are ver2 mo*ile and a'tive. 0$e2 adopt a li1est2le o1 living 1or toda2 and not (orr2ing a*out long term goals. 0$ose Pepsi8s main emp$asis on t$is segment t$e2 also $ave a 1o'us on t$e +4 to +) 2ear old market. Pepsi *elieves i1 t$e2 'an get t$is market to adopt t$eir produ't t$en t$e2 'ould esta*lis$ a lo2al 'ustomer 1or li1e. Pepsi Cola is situated in an industr2 t$at is dominated *2 t(o 'ompetitors, Co'a;Cola and o1 'ourse t$emselves. -lt$oug$, Pepsi and Coke *asi'all2 go a1ter all 'ustomers ($o pur'$ase so1t drink *everages Co'a;Cola targets its produ'ts as t$e $ead o1 $ouse$old.

Current %ar&et Situation

Pepsi promote itsel1 as t$e '$oi'e o1 C>e( @enerationD. Pepsi gets t$is advantage *2 implementing su'$ large marketing proHe'ts like CProHe't @lo*eD. 0$is marketing plan, ($i'$ Pepsi spent %3/ million dollars over 1ive 2ears, is to introdu'e t$e ne( ri'$ deep *lue 'oloring o1 its pa'kaging. 0$e ri'$ deep *lue 'oloring represents eternal 2out$1ulness and openness. arketing plans like t$is made Pepsi one o1 its 'oolest *rands re'ognized among teens in t$e top 1ive and t$e onl2 *everage produ't in t$is 'ategor2. -not$er 'ompetitive advantage t$at Pepsi $as is in t$eir produ't ountain &e(. ountain &e( $as gro(n a staggering /4.+J over t$e last 1ive 2ears. ountain &e( $as a %.3J market s$are and $as re'entl2 *e'ome t$e K4 so1t drink in -meri'a. -t t$is 'urrent pa'e ountain &e( (ill *e'ome t$e 1irst non;'ola to rea'$ t$e +*illion gallon mark in one 2ear. Pepsi $as an advantage as an innovator in t$eir 1ield. 0$e2 (ill *e t$e 1irst so1t drink makers to introdu'e a ne( one;'alorie soda 'alled Pepsi #ne (it$, Hust approved *2 t$e 5&-, -'e;<. 0$is ne( s(eetener is slated to *e a *reak t$roug$ 1or diet soda in ($i'$ it limits t$e a1ter taste asso'iated (it$ diet soda and *rings more 'ola taste to t$e produ't. Pepsi $as al(a2s *een a strong K4

against Coke and $ave *e'ome one o1 t$e (orld8s largest 'ompanies. -s 1ar as market s$are Pepsi stands strong. Here are 1e( vitals o1 marketL

Overall %ar&et S*are

PBP!I C#L- 43.3J C#C-;C#L- 3,.3J &IB0 PBP!I ".3J &IB0 C#<B )."J #6>0-I> &B. %.3J !PRI0B %.4J /;6P 4.3J IR->&- 4.)J 5->0- +.,J

Pepsi is situated in an environment t$at is ever '$anging and d2nami'.

%ar&et :escription
Pepsi $as *e'ome t$e largest selling so1t drink in t$e (orld it is likel2 *2 people o1 all ages *elonging to di11erent 1ields o1 li1e *elonging to di11erent 'asts8 religions. - re'ent surve2 s$o(s a*out 3,J o1 t$e (orld population ($en asked ($i'$ so1t drinks do t$e2 pre1er replied Pepsi. .$en asked 1or t$e reason 1or t$is liking t$e2 replied not onl2 does Pepsi gives t$em $ig$er qualit2 *ut also gives a large variet2 o1 ot$er 1lavors and ne( drinks.

Slogans
#ne o1 t$e main reasons 1or t$e popularit2 o1 Pepsi is t$e use o1 slogans ($i'$ t$e2 use to a*stra't t$e 'ustomers. &i11erent slogans $ave *een used to attra't di11erent people o1 di11erent ages. 0$e2 use di11erent slogans in di11erent 'ountries around t$e (orld. 5ollo(ing are some o1 t$e slogans used *2 Pepsi over t$e 2ears. # 3 0 C0(i'e as mu'$ as a >i'kel8 # 580 C ore Boun'e to t$e #un'eD # 580 C-n2 .eat$er is Pepsi .eat$erD # 5;0 C0$e Lig$t Re1res$mentD # 5)0 CBe !o'ia*le, Have a PepsiD # $#0 C>o( it8s Pepsi 1or 0$ose .$o 0$ink EoungD # $30 CCome -live, Eou8re in t$e Pepsi @enerationD # $;0 C70aste t$at *eat t$e ot$er 'old9 Pepsi Pours it #nD # $ 0 CEou8ve @ot a Lot to Live, and Pepsi8s @ot a Lot to @iveD # ;50 CHave a Pepsi &a2D # ;;0 C:oin t$e Pepsi People 75eeling 5ree9D # )80 CCat'$ 0$at Pepsi !piritD &avid Lu'as Composer # )#0 CPepsi8s got 2our taste 1or li1eD # )30 CPepsi >o(M 0ake t$e C$allengeMD # )<0 CPepsiL 0$e C$oi'e o1 @enerationD 7Commer'ial (it$ 1eaturing Pepsi version o1 Billie :ean9 # )$0 C.e8ve @ot t$e 0asteD 7Commer'ial (it$ 0ina 0uner9 # 80 CEou $ave got t$e rig$t '$oi'e *a*2 6H H6HD 7sung *2 Ra2 C$arles 1or diet Pepsi9 # #0 C@otta $ave itD IDC$ill #utD i'$ael :a'kson,

# # # #

+0 CBe Eounger, Have 1un, &rink PepsiD 30 CRig$t >o(D Fan Halen !ong 1or t$e Cr2stal Pepsi ad <0 C&ou*le &ut'$ BusD Pepsi song sung *2 Brad Bentz 50 C>ot$ing else is a PepsiD

# $0 CPepsiL 0$ere8s not$ing o11i'ial a*out itD,7&uring t$e .ills .orld Cup 7Cri'ket9 $eld in IndiaI PakistanI !rilanka9 # ;0 C@eneration >eAtD, C.it$ t$e !pi'e @irlsD

# )0 CEe$ &il ange2 oreD7In HindiI6rdu meaning C 2 Heart .ant oreD 7IndiaI Pakistan9 # 0 C-sk 1or oreDID0$e :o2 o1 Pepsi ColaD 7Commer'ial (it$ Britne2 !pearsICommer'ial (it$ ar2 :. Blige9 +8880 C-azadi dil kiD 7In Hindi meaning C5reedom o1 HeartD97India9 +8830 CIt8s t$e ColaD I C&are 1or oreD 7+,,t$ -nniversar2 Commer'ial9

+8830 CEe$ P2as Hai BadiD 7In Hindi meaning C0$is 0$irst is too mu'$D 7 India9 +8850 C.ild 0$ingI-sk 5or +88$0 C.$2 2ou &ogging8 1eaturing ar2 :. Blige oreD 7.it$ :enni1er Lopez N Be2on'e <no(les9 eD I C0aste t$e one t$at8s 1orever 2oungD Commer'ial

+88;0 C ore Happ2D I C0aste t$e one t$at8s 1orever 2oungD 7 i'$ael -leAander9 +88)0 CEe$ Hai Eoungistan eri :aanD 7India9

+88)0 CPepsi !tu11D !uper Bo(l Commer'ial *2 :ustin 0im*erlake +88)0 CPepsi is K+D 0F 'ommer'ial 7Luke Rosin9 +88)0 CPepsi12 karo gaiMD Commer'ial 7In 6rdu meaning C.anna Pepsi12MD9 7Pakistan9 75eaturingL -dnan !ami and -nnie 7Pakistani singer99

Pro.uct Review

Competitive Review
0$e 'ompetitors to t$e produ'ts o1 t$e 'ompan2 mainl2 lie in t$e non;al'o$oli' *everage industr2 'onsisting o1 Hui'es and so1t drinks. 0$e ke2 'ompetitors in t$e industr2 are as 1ollo(sL

Coca=Cola
0$e Co'a;Cola '$allenge is to keep up (it$ ar'$rival, t$e PepsiCo. Compan2 never ends 1or t$e .orld8s K4, 'ar*onated so1t;drink (ater. 0$e 'ompan28s so1t drink in'ludes Coke, !prite and 5anta. Co'a;Cola is not t$e 'ompan28s onl2 *everageO Co'a;Cola sells >e( C$illed inute aid Hui'e *rands. -quarius sports drink, and <inle2 (ater. Pepsi and Co'a;Cola $old toget$er, a market s$are o1 3"J out o1 ($i'$ %,.)J is $eld *2 Co'a;Cola and t$e rest *elongs to Pepsi.

Nestle
>estle does not give a toug$ 'ompetition to Pepsi as it mainl2 deals (it$ milk produ'ts, *a*2 1ood and '$o'olates. But t$e i'ed tea t$at is >estea ($i'$ $as *een introdu'ed in to t$e market *2 >estle provides a 'onsidera*le amount o1 'ompetition to t$e produ'ts o1 t$e Compan2. I'ed tea is one o1 t$e 'losest su*stitutes to t$e Colas as it is a t$irst quen'$er and it is $ealt$ier ($en 'ompared to 1izz drinks. 0$e 1lavored milk produ'ts also $ave *e'ome su*stitutes to t$e produ'ts o1 t$e 'ompan2 due to gro(ing $ealt$ a(areness among people.

Re. 5ull
Red Bull in Pakistan is one o1 t$e most trusted *rands as it $as *een operating ever sin'e time and people $ave laid all t$eir trust in t$e 'ompan2 and t$e produ'ts o1 t$e Compan2. Red Bull $as introdu'ed an Bnerg2 &rink in t$e market. 0$ese produ'ts give a strong 'ompetition to aaza and to latest produ't inute aid Pulp2 #range.

:istri'ution o, Review
&e'isions (it$ respe't to distri*ution '$annel 1o'us on making t$e produ't availa*le in adequate quantities at pla'es ($ere 'ustomers are normall2 eApe'ted to s$op 1or t$em to satis12 t$eir needs. &epending on t$e nature o1 t$e produ't, marketing management de'ides to put an eA'lusive, sele'tive or intensive net(ork o1 distri*ution, ($ile sele'ting t$e appropriate dealers or ($olesalers. :irect .istri'ution0 &eliver2 o1 post miA '2linders N $andling o1 ke2 a''ountsL 0$e ke2 a''ounts are di11erent ($olesalers, restaurants and $otels like Pizza Hut, <5C, and etro ($i'$ serve as a pla'e 1or ke2 sale. 0$ese are kno(n as national ke2 a''ounts and are ver2 important in terms o1 'ompetition. BAport parties.

-n.irect .istri'ution0 0$roug$ *ase market distri*utors. 0$roug$ #utstation distri*utors.

Be1ore delivering t$e produ't some 'ertain guiding prin'iples are 1ollo(ed 1or t$e assessment o1 distri*utor8s 'apa*ilit2L -ppli'ant must $ave 4, to 4" ve$i'les 7depending on t$e area9 -ppli'ant must $ave 4,,,,, 'ases o1 empt2 *ottles. -ppli'ant must deposit +,,,,,,,, as a se'urit2.

".vertisements O, PEPS-

Pepsi Career
CPepsi sales are neAt dou*le in t$e summer mont$s and into earl2 1all. 0$is in'rease, teamed (it$ $eat o1 summer 'an (ear a driver do(n. Ho(ever, a1ter *eing on t$e route 1or summer 2ou learn to take 'are 1or 2our sel1.

Rise in Popularity
&uring t$e great depression, Pepsi gained popularit2 1ollo(ing t$e introdu'tion in +33% o1 a +4;oun'e *ottle. Initiall2 pri'ed at +, 'ents, sales (ere slo(, *ut ($en t$e pri'e (as slas$ed in to 1ive 'ents, sales in'reased su*stantiall2. .it$ radio advertising 'ampaign 1eaturing t$e Hingle CPepsi 'ola $its t$e spot I 0(elve 1ull oun'es, t$at8s a lot I 0(i'e as mu'$ 1or a ni'kel, too I Pepsi;Cola is t$e drink 1or 2ou.D

S!OT "nalysis >Strengt*s7 !ea&enesses7 Opportunities an. T*reats?

Strengt*s
Brand !trengt$ B11e'tive stride in ne( markets Results o1 operations !trong eAisting distri*ution '$annels

!ea&enesses
Reliant upon line eAtensions Reliant upon parti'ular 'ar*onated drinks Brand dilution Bntran'e into di11i'ult none 'ore 'ategories !aturation o1 'ar*onated so1t drink segment !trong 'ompetition Potential $ealt$ issues 5ree 0rade

Opportunities
>e( produ't introdu'tions Brand is attra'tive to glo*al partners

T*reats

Strengt*s0
Pepsi $as *een a 'ompleA part o1 (orld 'ulture 1or a ver2 long time. 0$e produ't8s is loaded (it$ over;romanti'izing, and t$is is an image man2 people $ave taken deepl2 to $eart. 0$e Pepsi image is displa2ed on 0;s$irts, $ats and 'olle'ti*le memora*ilia. 0$is eAtremel2 re'ogniza*le *randing is one o1 Pepsi8s greatest strengt$s. -dditionall2, Pepsi8s *ottling s2stem is one o1 t$eir greatest strengt$s. It allo(s t$em to 'ondu't *usiness on a glo*al s'ale ($ile at t$e same time maintain a lo'al approa'$. 0$e *ottling 'ompanies are lo'all2 o(ned and operated *2 independent *usiness people ($o are aut$orized to sell produ't o1 t$e Pepsi Compan2. Be'ause Cola does not $ave outrig$t o(ners$ip o1 its *ottling net(ork, its main sour'e o1 revenue is t$e sale o1 'on'entrate to its *ottlers.

!ea&enesses0
.eakenesses 1or an2 *usinesses needs to *e minimized and monitored in order to e11e'tivel2 a'$ieve produ'tivit2 and e11i'ien'2 in t$eir *usiness8s a'tivities, Pepsi is no eA'eption. -lt$oug$ domesti' *usiness as (ell as main international markets are t$riving. Being addi'ted to Pepsi also is $eat$ pro*lem, *e'ause drinking o1 Pepsi dail2 $as an e11e't on 2our *od2 a1ter 1e( 2ears .

Opportunities0
Brand re'ognition is t$e signi1i'ant 1a'tor a11e'ting Pepsi8s 'ompetitive position. Pepsi8s *rand name is kno(n (ell t$roug$out 34J o1 t$e (orld toda2. 0$e primar2 'on'ern over t$e past 1e( 2ears $as *een to get t$is name *rand to *e even *etter kno(n. Pa'kaging '$anges $ave also a11e'ted sales and industr2 positioning, *ut in general, t$e pu*li' $as intended not to *e a11e'ted *2 ne( produ'ts. Pepsi8s *ottling s2stems also allo(s t$e 'ompan2 to take advantage o1 in1inite gro(t$ opportunities around t$e (orld. 0$is strateg2 gives Pepsi t$e opportunit2 to servi'e a large geograp$i', diverse area .

T*reats0
Currentl2, t$e t$reat o1 ne( via*le 'ompetitors in t$e 'ar*onated so1t drink industr2 is not ver2 su*stantial. 0$e t$reat o1 su*stitutes, $o(ever, is a ver2 real t$reat. 0$e so1t drink industr2 is ver2 strong, *ut 'onsumers are not ne'essaril2 married to it. Possi*le su*stitutes t$at 'ontinuousl2 put pressure on *ot$ Pepsi and Coke in'lude tea, 'o11ee, Hui'e, milk and $ot '$o'olate. Bven t$oug$ Co'a; 'ola and Pepsi 'ontrol nearl2 4, J o1 t$e entire *everage market, t$e '$anging $ealt$ 'ons'iousness o1 t$e market 'ould $ave a serious a11e't. #1 'ourse, *ot$ Coke and Pepsi $ave alread2 diversi1ied into t$ese markets, allo(ing t$em to 1urt$er signi1i'ant market s$ares and o11set an2 losses in'urred due to 1lu'tuations in t$e market. Consumer *u2ing po(er is also a ke2 t$reat in t$e industr2. 0$e rivalr2 *et(een Pepsi and Coke $as produ'ed a ver2 slo( moving industr2 in ($i'$ management must 'ontinuousl2 respond to t$e '$anging attitudes and demands o1 t$eir 'onsumers or 1a'e losing market s$are to 'ompetitors.

Pro.uct 6i,e Cycle

0o *e a*le to market its produ't properl2, a *usiness must *e a(are o1 t$e produ't li1e '2'le o1 its produ't. 0$e standard produ't li1e '2'le tends to $ave 1ive p$asesL &evelopment, Introdu'tion, gro(t$, maturit2 and &e'line. Pepsi is 'urrentl2 in its maturit2 stage, ($i'$ is evident primaril2 *2 t$e 1a't t$at t$e2 $ave a large, lo2al group o1 sta*le 'ustomers. In 1oreign markets t$e produ't li1e '2'le o1 is in more o1 gro(t$ stage, Pepsi8s advantage in t$is area is mainl2 due to its esta*lis$ment o1 strong *randing and it is no( a*le to use t$is are o1 sta*le pro1ita*ilit2 to su*sidize t$e domesti' Cola (ars.

%ar&eting O'(ective
0$e o*He'tive is t$e starting point o1 a marketing plan. #*He'tives s$ould seek to ans(er t$e question C($ere do (e (ant to goPD 0$e purpose o1 o*He'tives in'ludeL 0o ena*le t$e 'ompan2 to 'ontrol its marketing plan. 0o $elp to motivate individuals and teams to rea'$ a 'ommon goal. 0o provide an agreed, 'onsistent 1o'us all 1un'tions o1 an organization. easura*le, -'$ieva*le, Realisti'

-ll o*He'tives s$ould *e ! -R0 i.e. !pe'i1i', and 0imed.

Speci,ic @ Be pre'ise a*out ($at 2ou are going to a'$ieve. %easura'le @ ?uanti12 2our o*He'tives. "c*ieva'le @ -re 2ou attempting too mu'$P Realistic @ &o 2ou $ave t$e resour'e to make t$e o*He'tives $appenP Time. @ !tate ($en 2ou (ill a'$ieve t$e o*He'tiveP

#A %ar&et S*are O'(ectives0 0o gain %,J o1 t$e market 1or so1t drinks industr2. +A Pro,ita'ility O'(ectives0 0o a'$ieve a 4,J return on 'apital emplo2ed. 3A Promotional O'(ectives0 0o in'rease t$e a(areness o1 t$e produ't in t$e market. <A O'(ectives ,or Survival0 0o survive t$e 'urrent market (ar *et(een 'ompetitors. 5A O'(ectives ,or Browt*0 0o in'rease t$e size o1 t$e (orld(ide Co'a;Cola enterprise *2 +,J.

%ar&eting Strategy
Segmentation Caria'les :ata -sia Pakistan -ll maHor 'ities o1 Pakistan 6r*an Hot and &r2 +4;3,Q ale, 5emale +;4, 3;4, "Q arried, 6nmarried Rs.+,,,,, 5rom middle 'lass to upper 'lass !'$ool, Colleges and 6niversities aHor religion Islam, C$ristianit2, Hinduism and small per'entage ot$ers -sian Pakistani iddle 'lass, 6pper Class -'tualizes, 5ul1illed, Believers, -'$ievers, !trivers, BAperien'e8s maker and !trugglers. Parties, Birt$da2s, !ports and Regular #''asions ?ualit2 and 0aste 5irst time user !trong -(are and Interested

Beograp*ic
!orl. Region Country Cities :ensity Climate

:emograp*ic
"ge Ben.er 9amily si4e 9amily li,ecycle -ncome Occupation E.ucation Religion Race Nationality

Psyc*ograp*ic
Social Class 6i,estyle

5e*avioural
Occasions 5ene,its Dser Status 6oyalty Status Rea.iness Stage

Positioning
Positioning is t$e pro'ess o1 'reating t$e image t$e produ't $olds in t$e mind o1 'onsumers, relative to 'ompeting produ'ts. Co'a;Cola and Pepsi *ot$ make so1t drinksO alt$oug$ Co'a;Cola ma2 tr2 to 'ompete, t$e2 (ill still *e seen as do(n market 1rom Pepsi. Positioning $elps 'ustomers understand ($at is unique a*out t$e produ'ts ($en 'ompared (it$ t$e 'ompetition. PepsiCo plan 1urt$er to 'reate positions t$at (ill giver t$eir produ'ts greatest advantage in t$eir target markets. Pepsi $as *een positioned *ased on t$e pro'ess o1 positioning *2 dire't 'omparison and $ave positioned t$eir produ'ts to *ene1it t$eir target market. ost people 'reate an image o1 a produ't *2 'omparing it to anot$er produ't, t$us evident t$roug$ t$e 1amous *attles *et(een Co'a;Cola and Pepsi produ'ts.

Promotion
5ran.ing0 Pepsi utilizes t$e individual *rand strateg2 as Pepsi8s maHor produ'ts $ave given t$eir o(n *rand names ,or example0 iranda, / 6p, et'. alt$oug$ t$e2 ma2*e presented as di11erent lines t$e2 operate under t$e name o1 Pepsi. Pac&aging0 Pepsi $as *ene1ited 1rom produ't (it$ in'entives and endorsements on t$e la*eling as a promotional strateg2 to in'rease its volume o1 sales and revenue A

Produ't !trateg2
Core 5ene,it0 - drink 1or re1res$ment (it$out al'o$ol. "ctual Pro.uct0 5ran. Name0 Pepsi Euality 6evel0 BA'ellent :esign F Pac&aging0 Regular 74/" ml9, &isposa*le 7",, ml9, Regular 7+ liter9, &isposa*le 7+." liter9, :um*o 74.4" liter9. 9eature0 Bla'k 'olor (it$ -spartame 7>utra!(eet9, !u'ralose, and -'esul1ame Potassium. "ugmente. Pro.uct0 !tatus 7so1t drink9, 5eatures promoting t$e (e*site, Remove t$irst.

Pricing Strategy
In Pakistan, Pepsi Cola is *eing operated *2 Pakistan Beverages. Pepsi is availa*le in t$e maHorit2 o1 stores, outlets and $otels. It $as a $uge market o1 'ustomers. Basi'all2 it is segmented 1or t$e 2ounger generation o1 Pakistan *ut *e'ause o1 its 'ustomized o11ering it is *eing 'onsumed *2 di11erent age groups in our so'iet2. 0$e 'ompan2 $as o11ered Pepsi in di11erent quantities and pri'es in our market. Its market oriented statement is C:are ,or %ore2A Prices Rs. +"I; Rs. 4"I; Rs. 4,I; Rs. ",I; Rs. %,I; Rs. /,I; Euantity 4", ml ",, ml + liter +.4" liter +." liter 4.4" liter

In our so'iet2 Pepsi o1ten redu'es its pri'es during t$e mont$ o1 Ramadan and at t$e time o1 Bid. In t$is (a2 t$e2 adopt promotional pri'ing strateg2. Bven i1 2ou noti'e on t$eir o11erings t$e2 are using produ't;line pri'ing strateg2 as t$e2 are o11ering di11erent quantities (it$ di11erent amount o1 mone2. In di11erent se'tors, Pepsi $ave also adopted segmented pri'ing strateg2 as its pri'es are mu'$ $ig$er in luAurious $otels and ot$er se'tors. Its main 'ompetitor is Co'a;Cola ($en it 'omes to so1t drinks. Co'a;Cola $as also made various e11orts t$roug$ di11erent pri'ing strategies and o11erings *ut Pepsi $ave also responded e11e'tivel2 to(ards t$eir a'tions t$roug$ initiating pri'e 'uts at t$e rig$t time 1or eAample, in t$e mont$ o1 Ramadan ($enever Co'a;Cola redu'es t$eir pri'es, Pepsi also responds t$roug$ pri'e 'uts and eventuall2 a1ter t$e period it raises it pri'es.

%ar&eting Researc*
.$en attempting to implement a ne( marketing plan a *usiness must address its target market and 'ondu't t$e relevant in1ormation to insure ne( marketing plan *ot$ di11ers 1rom t$e old and its *etter 1or t$e *usiness. .$en 'ondu'ting marketing resear'$ a *usiness must 1irst de1ine t$e pro*lem and t$en gat$er t$e appropriate in1ormation to solve t$e pro*lem. 0$ere are t$ree t2pes o1 in1ormation a *usiness 'an gat$er to solve its pro*lem. +. BAplorator2 resear'$ ($i'$ 'lari1ies t$e pro*lem and sear'$es 1or (a2s to address it. 4. &es'riptive resear'$ is used to measure and des'ri*e t$ings like t$e market potential 1or a produ't and '$ara'teristi's o1 t$e target market. 3. Casual resear'$ is used to test a $2pot$esis a*out a 'ause and e11e't relation s$ip. Pepsi t$roug$ its market resear'$ addressed all t$ree t2pes o1 resear'$ to de1ined t$e pro*lem raised *2 s$are$olders and gat$ered in1ormation to serve t$eir needs.

%ar&et Researc* Euestionnaire 1. Please select your age group: a. 5---12 c. 19---25 Do you li e !o"t Drin s# $es 3. %o. b. 13---18 d. 26---Onwards

2.

&ow o"ten do you drin a 'ola# ()ery &our ()ery Ot*er &our Once or +wice a ,ee %e)er Once a day

-.

,*ic* 'ola do $ou Pre"er# Pepsi 'oca-'ola 0ictory 'ola ..'. 'ola /ecca 'ola

5.

1re you satis"ied wit* t*e current pricing o" Pepsi 'ola# $es %o

6.

&ow did you "ind t*e new brand Pepsi /12# (3cellent 4ood 1)erage Poor

5.

&ow ,ould $ou .ate Pepsi 'ola according to t*e "ollowing criteria:
Excellent Very Good Good Fair Poor

+aste 6uality Pac aging 1)ailability Price

8. ,*at i7pro)e7ents do you t*in are needed in Pepsi 'ola 8Please '*ec all t*at apply9# :etter +aste %ewer :ottle 9. :etter 6uality ;ower Price :etter Pro7otion

Please gi)e so7e suggestions to i7pro)e Pepsi 'ola. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< +*an $ou =or $our 'ooperation

9actors -n,luencing Consumer C*oice

.$en making de'isions on produ'ts a *usiness must look at 1a'tors t$at in1luen'e 'onsumer '$oi'e su'$ as ps2'$ologi'al 1a'tors, !o'io 1a'tors, B'onomi' 1a'tors and @overnment 1a'tors. Psyc*ological 9actors0 !u'$ as motivation, per'eption, li1est2le, personalit2 and sel1 'on'ept, learning and attitudes in1luen'es t$e 'onsumer8s *e$avior to(ards a produ't and Pepsi $as addressed t$is issue *2 introdu'ing &iet Pepsi to satis12 di11erent li1est2les. Socio Cultural 9actors0 !u'$ as 'ulture, su*'ulture, so'io;e'onomi' status, 1amil2 and re1eren'e groups in1luen'e t$e 'onsumer8s *e$avior to(ards a produ't. Economic 9actors0 !u'$ as &isposa*le In'ome and dis'retionar2 in'ome. Co'a;Cola $as addressed t$is side o1 t$e in1luen'e *2 maintaining a lo( pri'e on t$e pri'e o1 its produ'ts. Bovernment 9actors0 !u'$ as ne( regulations, in1lation, interest rates all in1luen'e 'onsumer spending and '$oi'e.

5u.geting an. Controlling

onitoring and 'ontrolling allo(s t$e *usiness to '$e'k 1or varian'e in t$e *udge and a'tual. 0$is is important *e'ause it allo(s Pepsi to take ne'essar2 a'tions to meet t$e marketing o*He'tives. 0$ere are t$ree tools Pepsi s$ould use to monitor t$e marketing plan. 0$e2 are 1ollo(ingL

#= Sales "nalysis
0$e sales anal2sis *reaks do(n total *usiness sales *2 market segments to identi12 strengt$s and (eaknesses in di11erent areas o1 sales. !ellers o1 Pepsi produ'ts var2 1rom maHor retail supermarkets to small 'orner stores. 0$is gives produ'ts maAimum eAposure to 'ustomer at t$eir 'onvenien'e.

+= %ar&et S*are "nalysis

arket s$are anal2sis 'ompares Pepsi8s *usiness sales per1orman'e (it$ t$at o1 its 'ompetitors. Pepsi looks to in'rease its market s$are *2 over %,J. .it$ t$e '$anges Pepsi is 'urrentl2 undergoing, t$e2 aim to regain an iron 1ist 'ontrol o1 t$e market. 0arget market8s various age groups and li1est2les 1rom $ig$ s'$ool students to universities and male or 1emale.

%ar&et Pro,ita'ility "nalysis

0$is anal2sis looks at t$e 'ost o1 marketing and t$e pro1ita*ilit2 o1 produ'ts, sales territories, market segments and sales people. 0$ere are t$ree ratios to monitor marketing pro1ita*ilit2O t$e2 are market resear'$ to sales, advertising to sales and sales representatives to sales. 0$e results o1 t$ese tools 'an $elp Pepsi determine an2 emerging trends, su'$ as t$e need 1or di11erent produ't. Comparing t$ese results (it$ a'tual results gives t$e *usiness t$e idea on ($en to '$ange.