Marketing report on PEPSI

PREPARED BY:
ASIM NASEEM (22743)
MAZHAR
(22719)
FARHAN AFRIDI (11156)

EXECUTIVE SUMMARY
 Pepsi Cola Company includes in beverages industry.

Pepsi Cola international is well reputed multinational
company which is doing its business in almost every
country of the world. The company is registered in
New York stock exchange U.S.A. to make a better
control over the business the company has given the
manufacturing rights to different companies. Now
these companies are producing the products on the
behalf of the company by using their trademark

PEPSI COMPANY MISSION STATEMENT,
VISION, AND PURPOSE:
The mission of the PepsiCo focuses on products and performance
primarily, with a few values thrown in for good measure. The
mission statement of the PepsiCo Company is:

"Our mission is to be the world's premier consumer
products company focused on convenient foods and
beverages. We seek to produce 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."

Demographic Segmentation
 PEPSI COLA is not bounded to any particular age,

gender or lifecycle stage. The brand is meant for all the
users of every age group but its target market is mainly
youth.

Psychographic Segmentation
 For psychographics, Pepsi-cola caters to all social

classes, but the vast majority of attention goes to
people in the middle/upper class. This is
demonstrated by their social media efforts.

Behavioral Segmentation
 They are heavy TV users and very likely to notice ads

on billboards. They may not be brand loyal, but are very
heavy users of the carbonated soda category.

COMPETITIVE ANALYSIS:
Scope:
 Pepsi Cola’s product is included in consumer product and
came under the category of specially product about which
the consumers are fully aware and are completely loyal with
it.
Market Share:
 Pepsi is about 65 - 70% while Coke is about 25-28% in
Pakistan Beverage Market Survey.*Bottle Water and Dairy
is not included in the beverage survey
Major competitors:
 Pepsi's main competitor has always been Coca-Cola. Other
big competitors are Dr. Pepper/Snapple and Kraft.

SWOT ANALYSIS OF PEPSI:
Strength:
 Product diversity
 Extensive distribution channel
 Corporate Social Responsibility (CSR) projects
 Competency in mergers and acquisitions
 22 brands earning more than $1 billion a year
 Successful marketing and advertising campaigns
 Complementary product sales
 Proactive and progressive

Opportunity:
 Growing beverages and snacks consumption in
emerging markets (especially BRIC)
 Increasing demand for healthy food and beverages
 Further expansion through acquisitions
 Bottled water consumption growth
 Savory snacks consumption growth

Weakness:
 Overdependence on Wal-Mart
 Low pricing
 Questionable practices (using tap water but labeling it as
mountain spring water)
 Much weaker brand awareness and market share in the world
beverage market compared to Coca-Cola
 Too low net profit margin
Threat:
 Changes in consumer tastes
 Water scarcity
 Decreasing gross profit margin
 Legal requirements to disclose negative information on product
labels
 Strong dollar

POSITIONING:
Firstly the Pepsi in America try to position its product
for the society as whole and for the purpose of
refreshment, which can be clearly visible from their
advertisement slogans like “ Any weather is a Pepsi weather” “ The light refreshment “ “ Be sociable, have a Pepsi “

This positioning strategy they followed up to 1960 and
after analyzing that it is very difficult to capture whole
population as whole.
So Pepsi after 1960 started targeted marketing and
choose a different way to promote and to attract new customers by using
huge marketing campaigns along the years and creating brand
personality associated to the adventure.

Pepsi’s goal is Attract a certain set of customers to buy the
product by associating itself with young people who are
energetic, fun loving and daring.

PEST ANALYSIS
Economic Factors
Inflation Rate
Competition is increasing with the entrance of new
domestic players in cola industry
3. Currency rate
4. Market campaigns
5. Leisure time
1.
2.

Political Factors
Govt. policies not favourable sometimes.
1. Competitive pricing
2. Political stability
3. Flexibility
4. Government policies

Socio-Cultural Factors
1. Connects world’s together
2. Associated with festivals
3. Non alcoholic beverage

Technological Factors
 Internal and external factors such as technology,

globalization, innovation, diversity and ethics can
immensely affect and impact the four functions of
management. Various functions such as organizing,
leading, planning and controlling can be emerged and
influenced by several different internal and external
factors.

MARKETING STRATEGIES AND
MARKETING MIX
 Marketing Mix:
 Pepsi Cola is a market leader so it keep the eyes on

each and every competitive advantage. For example
now it has introduced the cardboard bottle packing.
 ¨ Pepsi- cola also give importance to the size, colour,
and shape of its packages. It has introduced the
medium-sized carboard boxes with the different
traditional colours such as for Pepsi-Cola it us the Blue
and red colour. For Mirinda it uses orange and green
colour and for team and seven –up it uses the green
colour packages.

PRICE:
 A product’s price is a major determinant of the market

demand for it. Price affects a firm’s competitive
position and its market share. To be useful, the pricing
objective management selects must be compatible
with the over all goals set by the firm the goals for its
marketing program.

There are 3 pricing objectives:
Profit oriented:
 To achieve a target return.
 To maximize profit.
Sales oriented:
 To increase sale volume
 To maintain or increase market share
Status oriented:
 To stabilize prices
 To meet competition

Packaging:
Packages of Pepsi Cola:
 1) 250ml glass returnable bottle
 2) 1.5 liter non returnable bottle
 3) 2.25 Liter jumbo non returnable bottle

 4) 1/2 L Pet non returnable bottle
 5) 1 L Pet and non returnable bottle
 6) 300 ML Can (Tin)

PROMOTIONAL STRATEGIES:
 Establishes an image such as prestige, discount or innovative for
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the company and its goods and services.
Communicates features of goods and services.
It creates awareness for new goods and services.
It can reposition the images or uses of faltering goods and
services.
It generates enthusiasm from channel members.
It explains where goods and services can be purchased.
It can persuade consumers to trade up from one good or service
to a more expensive one.
It alerts consumers to sales.
It justified the prices of goods and services.
It reinforces loyal consumers.

Marketing report on PEPSI

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Marketing report on PEPSI