strategic management project on pepsi cola pakistan

Project Evaluation ReportOrganization: PepsiCourse: Strategic Management

Course: Strategic ManagementSubmitted to: Mr.Naeem Bhojani

Group Members:Iqra Saleem (57268)Shiza Kokab (57248)Ahsan Ilyas (56802)Hina Abbasi (57419)Tabassum Mujeeb (56529)Waleed Javaid (57438)

INTRODUCTION TO THE COMPANY:

• Pepsi International is a world renowned brand.

• Well organized multinational company.• Best carbonated drink producer in the world.

PEPSI COLA PAKISTAN:

• Pepsi 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.• Pepsi is consumed by all age groups.• Consumer’s survey tells that Pepsi is the most wanted

soft drink of Pakistan.

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.”

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.”

HIERARCHY:

SWOT ANALYSIS 0F PEPSICO.

Strengths• Product diversity.• Competency in mergers and acquisitions.• Successful marketing and advertising campaigns.• Complementary product sales.• CSRWeaknesses• Low pricing• Too low net profit margin.• Demand of disposal bottle is declining

Opportunities• Growing beverages and snacks consumption in emerging

markets.• Increasing demand for healthy food and beverages.• Further expansion through acquisitions. • Bottled water consumption growth. Threats• Changes in consumer tastes.• Water scarcity• Decreasing gross profit margin.

STRATEGIESPRODUCT STRATEGY:• Pepsi Company will launch new product

extension in the market due to consumer’s psychological factors.

• Thus Pepsi Cola satisfies the consumer’s needs efficiently by launching a desired product.

• Pepsi is a responsible corporate brand of Pakistan and have contributed a lot to the economy.

PRICE STRATEGY:

• Price should not be low nor high. • Price should be set according to the product

demand of public. • Price should be that which gives the company

maximum revenue.• Price should not be too low or too high than the

price competitor is charging from their customers otherwise nobody will buy your product.

PROMOTION STRATEGY:• Pepsi Cola Company has become official sponsor of

Pakistan cricket.• Pepsi has launched a number of prize schemes to

attract new customers.DISTRIBUTION STRATEGY:• Pepsi has given franchises in all over the Pakistan for

the distribution.• 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

COMPETITOR OF PEPSI“COCACOLA”

SWOT ANALYSIS

Weaknesses• Significant focus on

carbonated drinks.• Undiversified product

portfolio• High debt level due to

acquisitions• Negative publicity

Strengths• World’s largest market

share in beverage• Strong marketing and

advertising• Customer loyalty• Corporate Social

Responsibility

Opportunities

• Bottled water consumption growth.

• Increasing demand for healthy food and beverages.

• Growth through acquisitions.

Threats

• Changes in consumer tastes.

• Water scarcity.• Saturated carbonated

drinks market.

STRATEGIES OF COCACOLA

PACKAGING STRATEGY:• Coca-Cola products are available in different packing• 23 regular bottle shell• 6 bottle pack for 1.5 pets• 12 bottles in a pack for disposable bottle• 24 cans in one packPROMOTION STRATEGY:• They get shelves in big departmental stores• Salesman positions their freezers and their products

in eye catching positions

Comparison of Pepsi and Beverage industry ratios

Ratios PepsiCo Food & Beverage industry

Current Ratio 1.44 1.94

Acid Test Ratio 1.14 0.69

Operating Profit Margin 18.61% 15.19%

Debt Ratio 56.23% 67%

Return on Common Equity 35.36% 32%

Times Interest Earned 20.26% 27.46%

GAP ANALYSIS:Gap analysis between Coke & Pepsi

Market Share: • Coke is considered to be the market leader on international

basis.

Pepsi is non-alcoholic:• The independent outside lab in Chicago area has found the

following amount of alcohol in Coca Cola:• The alcohol level in Coke was 0.0059 or 59 PPM • The Pepsi has showed less than 0.001% or less than 10 PPM

(Instrument cannot detect less than 0.001% it means zero results.

Pepsi has deeper market penetration: PepsiCo has a number of products in the Food segment

like:• Lays• Quaker• Mountain Dew & 7up• Aquafina

Coke Marketing usually focuses on:Society and Special occasions.

Pepsi Marketing focuses on:Cricket, Youth, Special occasions etc

Suggested Gaps that should be targeted by Pepsi:

• Improve Pepsi’s efficiency in asset management and investments.

• If efficiency is increased ,costs will be reduced thus providing Pepsi with even more competitive advantage over its rivals.