Pepsi Cola International

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. To
maintain their goodwill in the market the company has a strict policy while granting the
manufacturing rights Pepsi-Cola have standardized products all over the world (e.g, same in size,
shape and quality). The franchises have to follow all the standards as given by the company.
Even they have the mobile team, which check the company after 2 or 3 months. Either company
is producing products according to the standards given by the Pepsi Cola international.
Shamim & company

History:
Shemim & company was established in 1967 as a private limited company. It started its business
in 1968. Allah Nawaz Khan Tareen (Ret. DIG) got licensee of 7-up franchise and was producing
only one product, 7-up. But in 1973, it became Pepsi Cola franchise. Now a days MD of
Shamim and Company is Allah Din Khan Tareen.
Introduction
In Pakistan, at present shemim & company is the largest production unit out of these 11. Shamim
& company covers the area of Southern Punjab which consist of Multan, Bahawalpur,
Bahwalnagar, Dera Ghazi Khan, Sahiwal, Khenewl, Rajan Pur, Mianwali and Layyah. The
company is properly serving all these areas with quality products.
Mission Statement
“To earn profit by meeting the customers needs with quality products”.
Departments
For effective control & to serve these areas more properly the company has the following
departments.
Production Department
This department is responsible for the production of the products according to the requirements
of the customers.
Administration & Personal Department
Administration & personal department deals with the overall matters of the company and takes
different actions for increasing the performance of the company. This department also carries out
different benefits programs.
Sales / Marketing Department
This department makes different efforts to increase the sales of the company by sponsoring
different social programs and by advertising their products.
In marketing department, 6 regional sales manager, 19 divisional sales managers, 15 area sales
manager, 90 sales officers and supervisor.
Finance Department
It deals with the financial matters of the company. It collect the revenues and makes different
payments and maintain proper record of the financial performance of the company’s business to
show the net result in the form of either profit or loss.
General Manager

G. Manager of each department is responsible for the performance of his department. To carry
out his duties more efficiently he has assistant manager in charges who help him to perform his
duties successfully.
General Manager Operation

To whom report is provided by manager of administration shipping’s manager and workshop’s

manager.
G. Manager Of Technical

Shift incharges, shift chemists and lower level operating employees report to G. Manager
technical.
G. Manager Finance
Financial accountant, management Accountant and manager of management Of information
system report to G. Manager finance.
In Pakistan, Shamim & Company is among of top three out of eleven, in terms size. When
frenchise cross a certain volume, plant is classified as, “maga plant status Pepsi Cola has
achieved in 2000.
Organizational structure

Objectives
To maintain market leadership and to increase market sales. Pepsi Cola is in Pakistan as
compared to its competitors according to Shamim & company we have to place our position or
top whenever we make policies leaders keep in mind that me are number one in current market
position.
Product Planning
Product Planning
Product planning is systematic decision making relating to are aspects of the development and
management of a firm’s product including branding and packaging. Each product consist of a
bundle of attributes (Features, Functions, benefits and uses) capable of exchange or use, usually
a mix of tangible and intangible forms.”
Product
“A product may be an idea , a physical entity( a good) or a service or any combination of the
three. It exists for the purpose of exchange in the satisfaction of individual and organizational
objectives”.
Ways of product according to firm definition
There are three ways of the product according to the firm definition.
a) Tangible product / actual product
b) Augmented product.
c) Generic product.
Tangible / Actual Product
“A tangible product is a basic physical entity, service or idea. It has precise specifications and is
offered under a given description or model number”.
Features / Characteristics Of Tangible Product
Color, style, taste, size, weight, durability quality of construction and efficiency in use one the
some tangible product features.
Actual product has 5 characteristics.
v Quality level
v Features
v Design
v Brand name
v Packaging
Example Of Tangible Product
Pepsi Cola its name, parts, styling, features, packaging and other attributes have all been
combined carefully to deliver the core benefit.
Augmented Product
“It includes not only the tangible elements of a product but also the accompanying cluster of
image and service features”.
Generic Product
“Focuses on what a product means to the customer, not the seller. It is the broadest definition and
is consistent with the marketing concept”.
Classification Of Goods
We can classify the goods into 2 classes.
1) Consumer products
2) Industrial products.
Consumer Products
“Consumer products are final consumer goods and services. The use of the goods or service
designates it as a consumer product”.
Category Of The Consumer Product
There are three categories of the consumer product.
1) Convenience product.
2) Shopping product
3) Specialty product
4) Unsought product
Convenience Product
“Convenience products are purchased with the minimum effort and are categorized as staples,
impulse products, and emergency products”.
Staples
“Staples are low priced items that are routinely purchased on a regular basic”.
Impulse Products
These products are the items that the consumer does not plan to buy on a specific trip to a store.
Emergency Products
Emergency products are the items purchased out of urgent need.
Shopping Products
Shopping products are those products for which the consumer feel they lack sufficient
information about product alternatives and their attributes and therefore must acquire further
knowledge in order to make the purchase decision.
Types Of Shopping Products
There are 2 types of the shopping products.
1) Attribute based shopping products.
2) Price based shopping products.
Attribute Based Shopping Products
With the attribute based shopping products, consumers get the information and then evaluated
product features, warranties, performance, options and other factors.
Price Based Shopping Products
In case of price based shopping products, consumers judge product attributes to be similar and
look around for the least expensive item.
Specially Products
Especially products are the particulars brands, stores and persons to which consumer are loyal.
Consumer is fully aware of their products and their attributes prior to making a purchase
decision. They are willing to make a significance effort to acquire a brand desired and will pay a
higher price than competitive products, if necessary. In specially products, substitute are not
acceptable.
Unsought Product
“Unsought product that the consumer is not yet aware of or a product that the consumer is aware
of but does not want right now”.
Consumer Product
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.
Industrial / Business Products
“Industrial products are the goods and services purchased for use in production of other goods
and services in the operation of a business, or for resale to other consumer”.
Items included in industrial products.
v Raw material
v Fabricating material and parts
v Installations
v Accessory equipment
v Operating supplies
Raw Material
“Business goods that become part of another tangible product prior to being processed in any
way are considered raw materials”.
raw material includes
v Goods found in their natural state, such as minerals, land, and products of the forests and seas.
v Agricultural products such as cotton, fruits, livestock and animal products including egg and
raw milk.
Fabricating Material And Parts
Business goods that become part of the finished product after having been processed to same
extent fit into the category of fabricating material and parts.
Installation
Manufactured products that are an organization’s major expensive and long lived equipment are
termed as installation.
Accessory Equipment
Tangible products that have substantial value and are used in an organizations operations are
called accessory equipment. This category of business goods neither becomes an actual part of
finished product nor has a significant impact on the organizations scale of operations.
Operating Supplies
Business goods by low dollar value per unit, a short life, and aid in an organizations operations
without becoming part of the finished product are called operating supplies.
Element Of Product Mix
¨ Product item
¨ Product line
¨ Product mix
Product Item
Product item is a specific model, bran, size of a product that a company sells.
Product line
A group of products that are closely related because they function in a similar manner, are sold to
the same customer groups, are marketed through the same types of outlets, or fall within given
price ranges.
Product Mix
A product mix is the set of all products offered for sale by a company. The structure of a product
mix has both breadth and depth.
Breadth
Breadth is measured by the number of product lines carried.
Depth
Depth of the product mix is defined by the variety of sizes, colors and models offered within
each product line.
Pepsi Cola
Beverages have four product lines with the name of Pepsi Cola Mirinda, Team and Seven up and
its product mix also consist of there four product lines which shows the width / breadth of Pepsi
Cola.
Its depth includes one product item and one product line in the form of Pepsi Seven Up, Mrinda
And Team.
New Product Development Strategy
The development of original products, product improvements, product modification and new
brands through the firms own research and development efforts.
The stages in the new product development.
Stages In Product Development
1) Idea generation
2) Idea screening
3) Concept development and testing
4) Marketing strategy
5) Business analysis
6) Product development
7) Test marketing
8) Commercialization
Idea Generation
New product development stars with the idea generation which is defined as the systematic
search for new product ideas. A company typically has to generate many ideas in order to find a
new goods ones.
Concept Testing
Testing new product concepts with a group of target consumer to find out if the concepts have
strong consumer appeal.
Marketing Strategy Development
Designing an initial marketing strategy for a new product based on the product concepts.
Business Analysis
A review of the sales, costs and profit projections for a new to find out whether these factors
satisfy the company’s objectives.
Product Development
Developing the product concept into a physical product in order to assure that the product idea
can be turned into a workable product.
Test Marketing
The stage of new product development in which the product and marketing program are tested in
more realistic and market setting.
Control Test Marketing
Several research firms keep controlled panels of stores that have agreed to carry new products
for a fee.
Simulated Test Markets
Companies can also test new products in a simulated shopping environment. The company or
research firm shows ads and promotions for a variety of products, including the new product
being tested, to a sample of consumers.
Commercialization
Test marketing gives management the introduction needed to make a final decision about
whether to launch the new products the companies goes ahead with commercialization. It means
introducing a new product into the market.
Product Life Lyele Strategies
The course of a products sales and profits over its life time it involves five distinct stages.
1) Product development
2) Introduction
3) Growth
4) Maturity
5) Decline
Product Development
It begins when the company finds and develops a new product idea during product development,
sales are zero and the company’s investment costs mount.
Introduction Stage
The product life cycle stage in which the new product is first distributed and made available for
purchase.
Growth Stage
The product life cycle stage in which a product’s sales start climbing quickly.
Maturity Stage
The stage in the product life cycle in which sales growth slows or levels off.
Decline Stage
The product life cycle stage in which a products sales decline.
With the reference of the product life cycle, they says that their product is still at the maturity
stage and will never came to the decline and they say that they are trying to retain this product
maturity level by increasing their market share and by using the other marketing strategy tools.
They claim that they will ever remain at this maturity level.
Product Mix Strategy
1) Positioning the product
2) Expansion the product
3) Alteration
4) Contraction
5) Trading up and trading down
Positioning The Product
Management’s ability to bring attention to a product and to differentiate it in a favorable way
from similar products goes a long way toward determining that products revenues. Thus
management needs to engage in positioning, which means developing the image that a product
projects in relation to competitive products and to the firms other products.
Positioning In Relation To A Competitor
For some products the best position is directly against the competition. This strategy is especially
suitable for a firm that already has a solid differential advantage or is trying to solidify such an
advantage.
Pepsi Cola beverages uses the positioning strategy which is related to the competitor because it
consider that it is market leader, and it try to present its product quite different in taste,
packaging, styles designing and quality than its competitors such as coca cola, Rc cola etc. And
it always keep an eye on its existing as well as its new coming competitors that is double cola.
Positioning In Relation To A Product Or Attribute
Sometimes a company’s positioning strategy entails associating its product with the product class
and attribute. Some companies try to place their products in a desirable class such as made in
USA. But Pepsi Cola does not use such type of positioning strategy.

Positioning By Price And Quality

Certain producers and retailers are known for their high prices.
Pepsi –Cola does not to follow the price positioning strategy because its COO (Chief Operating
Officer) says that they have changed the strategy of giving discounts because they have to
changed their policies by seeing their competitor, but Pepsi-Cola follow the quality positioning
strategy.
Product –Mix Expansion
Product mix expansion is accomplished by increasing the depth with in a particular and the
number of lines of firm offers to customers. When a company adds a similar item to an existing
product line with the same brand name, this is a line extension.
But Pepsi- Cola neither extends its product line nor expand its product mix. Still it has its 4-
product lines that are Pepsi –Cola, Mirinda, team and Seven-up.
Alteration Of Existing Products
Rather than developing a completely new product, management might do well to take a fresh
look at the organizations existing products. After, improving an established product, termed
product alteration can be more profitable and less risky than developing a completely new
product.
Pepsi Cola is an already established company with the big market share, and it changes its
policies to maintain the establishment of its products and market share by keeping the eye on its
competitors, strategies and policies.
Product Mix Contraction
Product mix contraction is carried out either by eliminating an entire line or by simplifying the
assortment within a line. But Pepsi Cola does not use the product mix contraction because its all
product lines have created a strong and un-volatile able images in the consumers mind.
Trading Up And Trading Down
The product strategies of trading up and trading down involve a change in product positioning
and an expansion of product line.
Trading up
It means adding a higher price product line to attract a broader market. Also the seller intends
that the new products prestiges will help the sale of its existing lower price products.
Trading Down
It means adding to company’s product line. The firm expects that people who cannot afford the
original higher price product or who see it as too expensive will buy the new lower price one.
The reason is that the lower price product carries same of the status and some of the other more
substantive benefits of the higher price item.
In Pepsi Cola there is no such type of product differentiation on the basis of price. Price may
differ due to the quantity level.
For example: The price of 250 ml bottle is Rs. 8. The price of 1liter bottle is Rs. 30 in case of
non-returnable bottle and 1.5 liter bottle’s price is Rs. 45.

Branding
An important part of product planning is branding, the procedure a firm follows in researching,
developing and implementing its brands.
As already noted, a brand is a name term design or symbol that identifies the products of a seller
or group of seller.
There are four types of brand designation.
Brand Name
“Brand name is a word, letter, group of words or letters that can be spoken. Pepsi-cola has
introduced its product lines under the same brand name that is PEPSI”.
Brand Mark
“Brand mark is a symbol, design, or distinctive colouring and lettering that can not be spoken”.
Trade Characters
Trade character is a brand mark that is personified.
Trade Mark
“A trade mark is a brand–name, brand mark or trade character or combination there of, that is
given legal protection”.
So that trade mark of the Pepsi can be a symbol or the brand name ie Pepsi.
Reason Of Branding
According to Pepsi-Cola, branding is very necessary due to following reasons.
¨ Pepsi-cola products can easily be identifiable than that of their competitors. A customer can
order a product by name instead of description.
¨ Customers are assured that they are demanding a certain level of quality product and people
believe that they are getting the comparable quality. If the same brand is recorded.
¨ They believe that the well branded legally protected product is directly identified by the
customers and leave the positive good image in customer mind.
¨ They believe that well branded product is a well known product.
¨ Branding the product is necessary to build the long lasting image. In consumer mind so as the
people become brand loyal. They say that 95% of the customer are brand loyal.
¨ They believe that they enhance their product prestige and social visibility through brand name.
And furthermore they are enhancing this social visibility through sales promotion techniques by
highlighting the brand –name of Pepsi.
¨ Due to the brand–name, Pepsi –Cola has built a good and remarkable image in consumer mind.
So people feel less risk at the time of purchasing the Pepsi-Cola products and towards it people
show the positive and favourable attitude.
¨ Even for there all products their brand name is same but they believe that branding segmentize
the markets by creating tailored image.
¨ Cooperation from distribution intermediaries is greater for well known brands. A strong brand
also may enable the producer to exert more control in the distribution channel.
¨ A brand may be used to enter a new product category.
¨ According to Pepsi-Cola through branding, it is very easy to sell out their product –lines,
because the people believe such type of legal and quality proved symbols to reduce their
purchasing, social, psychi and price risks.
Brands Philosophy
When Pspsi Cola developing a brand strategy, needs to determine its branding philosophy. This
philosophy outlines the use of manufacturer, dealer and in generic brands as well as the use of
family or individual branding.
Manufacturer brands (national brands)
Manufacturer brands contain the names of manufacturers and generate the vast majority of sales
revenues for most product categories. Pepsi Cola appeal to a wide range of the consumers, who
desire the low risk of the poor product performance, good quality, routinized purchase behavior,
status and convenience shopping. According to Pepsi Cola, manufacturer brands are well known
and trusted because quality control is strictly maintained. Their brand names are identifiable and
present distinctive images to shoppers.
Manufacturers normally produce a number of product alternatives under their brands. Through
the manufactures brand the major marketing focus of Pepsi Cola is to attract and retain
consumers who are loyal to the firm’s offerings and to control the marketing effort for the
brands.
Private Brands
It contains the names designated by wholesalers or retailers and account for the significant levels
of sales revenues in many product categories. Dealers secure relatively exclusive rights for their
brands and are usually more responsible for their distribution. Private brands typically require
large total investment.
Wholesalers and retailers are able to sell their items at lower prices and still obtain higher per-
unit profits. The marketing focus of private brands is to attract and retain the customer who are
loyal to the dealer and for the distributor / retailers to exert control over marketing plan for these
brands large wholesalers and retailers now advertise their brands extensively.
Generic Brands
Generic brand emphasize the names of the products themselves and not manufacturer and dealers
names. Generics appeal to price conscious, careful shoppers, who perceive them as representing
a very good value, are sometimes willing to accept lower quality, and often purchase for large
families generic brands are sold one advertised and receive secondary shelf space consumers
must search out these brands. The major marketing goal is to offer low priced, lower quality
items to consumers interested in price savings.
So Pepsi Cola / obtain the manufacturer brand instead of the generic and private brands.

Packaging
“Packaging is a part of product planning in which a firm researchers, designs, and produces its
packaging.”
The physical container may be a cardboard, metal, plastic or wooden box; a cellophone, wax
paper, or cloth wrapper; a glass, aluminum, or plastic jar or can; a paper bag; styro foam; some
other material; or a combination of these products frequently have more than one physical
container.
But packaging depends upon the product nature as well as structure means either it is liquid,
semi liquid or solid.
In case of Pepsi Cola, they take the packaging designs by considering what is better for company
and what is better or convenient for the transportation.
For protecting the syrup, Pepsi Cola uses the glass as well as plastic bottles of different quantity.

Packages of Pepsi Cola

1) 250 ml glass returnable bottle.
2) 175 ml glass returnable bottle.
3) 1 L glass returnable bottle.
4) 1/2 L Pet non returnable bottle
5) 1 L Pet and non returnable bottle
6) 250 ml glass non returnable bottle
7) Post mix (fresh fountain).
From fresh fountain, we can buy the fresh soda of different flavour such as Pepsi Cola, team,
Miranda and seven-up.
A year ago, Pepsi Cola has introduces the tray packaging which was not useful for the company
and retailers, because this packaging create the leakaging problem during the transportation and
the shopkeeper do not feel convenience in placing of such type of packs. In their shops so now
the Pepsi Cola has introduced the new packaging design. Pepsi Cola has packed its plastic
bottles in cardboard cartons to save such leakaging, due to this packaging its factory cost has
been increased.
Basic Packaging Function
According to coca cola packaging of the product should perform such type of functions.
¨ Packaging must facilitate product usage. Product disbursement may be eased through multiple
packaging Pepsi Cola offer the packages that are reuse able one a product is depleted. For
example, in case of 1 L and 1.5L plastic non returnable bottle, people can use these bottles after
depleting the product / liquid.
¨ Through packaging the company and its brand-name are identified. Pepsi-Cola consider that
packaging is an important method of communication with the consumer packaging also presents
a company and product image and display the product as well.
¨ At the time of packaging the product, Pepsi-Cola mainly consider the needs of the wholesales
and retailers in its distribution channel, that makes a product easy to ship, handle and store. At
the time of packaging Pepsi-cola should also thinks the product that packaging should by durable
which allow their contents to have a reasonable shelf life.
Factors Considered In Packaging Decision
Pepsi-Cola also consider following factors at the time of the taking decision about the product –
packaging.
¨ Pepsi –cola personnel think that package design affects the image and quality of the product
and company. Pepsi-cola consider that the colour, shape and material all influenced the
consumer perception about the firm and its product.
¨ In family packaging, Pepsi-cola uses a common element on each package, in a product line.
¨ Pespi-Cola as the international firm uses the standardized packaging which increase the world
–wide recognition. So Pepsi-cola utilize standard packages whenever possible.
¨ Pepsi Cola uses glass, plastic, cardboard, polythene material to preserve its product.
It uses the glass and plastic bottles to preserve the liquid, cardboard material for protect the
plastic bottle in cartons and polythene material to place the bottles into the tray- packing.
¨ Pepsi Cola also consider the package features, which provide it the competitive advantage. We
know that 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.
¨ As Pepsi-cola involve in Beverages business, so every bottle has its individual existence
without wrapping.
¨ As Pepsi-cola has its fix rates of bottles so it does not think that there is any need of preprinted
price. About UPC (Universal Product Code), Pepsi-Cola thinks that as Pepsi-cola is franchi and
it has to sell its products within its surrounding areas so there is no importance of UPC for its.
Main reason of not using “UPC” is that, it is not in list of exporters.
PRICE
Price
Price is the amount f money and / or other items with utility needed to acquire a product price is
significant in our economy, in the consumer’s mind, and in an individual firm value is also
important as a component of value. Value is the ratio of perceived benefits to price and any other
incurred costs. Good value indicates that a particular product has the kinds and amount of
potential benefits such as quality, image and purchase convenience consumers expect at a
particular price level. 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:
v To achieve a target return.
v To maximize profit.
Sales oriented
v To increase sale volume
v To maintain or increase market share

Status oriented
v To stabilize prices
v To meet competition
Pepsi Cola use status quo-oriented pricing objective Pepsi Cola intended simply to maintain the
firm’s current situation that is, the status quo.
Pepsi Cola adopt status quo pricing goals to avoid price competition is not necessarily passive in
its marketing. Quite the contrary typically like other status quo-pricing objective companies,
Pepsi Cola also compete aggressively using other marketing mix elements. Product, distribution,
and especially promotion or simply Pepsi Cola use approach that is non-price competition.
Price stabilization often is the goal in industries where products are highly standardized and in
beverage industry, products are standardized so beverage industry try to attempt price
stabilization.

Distribution
Distribution
Distribution planning involves makement and ownership in a channel of distribution, which
consists of channel members. Middlemen are channel intermediates distribution arrangements
very widely. The choice of a channel is very widely. The choice of a channel is quite important.
Channel of distribution, which is comprised of all the organizations or people involved in the
distribution process those participating in the distribution process are known as channel members
and may include manufacturers, service providers, wholesalers, retailers, retailers, marketing
specialists, and / or consumers. When the term middlemen is used, it refers to wholesalers,
retailers, and marketing specialist (such as transportation firms) that are acting in their roles as
intermediaries between manufactures / service providers and their consumers. A middleman is an
independent business concern that operates as a link between producers and ultimate consumers
or industrial users. Middlemen can perform channel functions and reduce costs, provide
expertise, open markets and lower risks. The sorting process coordinates the goals of
manufacturers and consumers. Channel choice depends on consumers, the company, the product,
competition, existing channels and legalities. “Distributions management of the flow of products
from manufacturer our customers and from warehouse to retailers, involving the storage and
transportation of products”. A successful organization is that which can distribute its products to
their customers at the right time and the right place. Shamim & company has efficient
distribution system because it has divided the whole area into different regions and have different
distributors for performing their activities in these regions.
All the activities related to distribution and sales is computerized and whole computer section
ahs been made for this purpose. The process for distribution is given below:
First of all distributors require filled bottles and came up with empty bottles. Slip is made for this
purpose on which no. of empty bottle, date, name of distributor etc. are recorded. Distributors go
to the computer section where all the credit and debt entries are checked. Computer operator
checks that how much credit will be given to the distributors according to company policy. After
this distributor take the slip and go to warehouse for supply of filled bottles.
There are some salesmen at each distribution center. Certain area has been assigned to each
salesmen. The concerned sales-man fulfills the orders of his customer’s e.g. the retailers who
purchase the bottles from them. To meet the urgent demand certain level of safety stock is also
kept at each distribution center especially in their peak season and on the special days such as
Eid days.
In a direct channel the manufacturer performs all functions. An indirect channel uses
independents using exclusive, selective or intensive distribution depends on objectives,
middlemen, customers and marketing.
Pepsi Cola use intensive distribution as it widespread market coverage, channel acceptance
volume sales and profits middlemen of Pepsi Cola, many in numbers, all types of outlets final
customers of Pepsi Cola many in numbers, connivance, oriented. Pepsi Cola’s marketing
emphasis or mass advertising, nearby location, items in stock. Wholesaling is the buying /
handling of merchandise and its resale to organizational buyers wholesalers provide functions
ranging from distribution to risk taking. Wholesalers have obligations to their suppliers and to
their customers.
Shamim & company has 140 distributors in whole Multan franchise.
Retailing, the last stage in w channel, includes the activities in selling to final consumes.
Manufacturers, importers, and wholesalers act as retailers when they sell products directly to the
final consumers. Retailing is an important aspect of distribution because of its impact on the
economy, its functions in the distribution channel, and its relationships with suppliers.
In this franchise of Pepsi cola, Shamim & Company, has no. of retailers more then 30,000.
Management of shamim and company know this thing that retailers are more cost conscious.
Due to this reason, this company offers to retailers, wristwatch on buying of ten crates and on
purchasing two crates, the company give them coupons. For waking their performance effective,
the management also offered discounts to them.
Promotion
Promotion
Promotion is any form of communication used to uniform, persuade and / or remind people about
an organization’s or individual’s goods, services, image ideas, community involvement, or
impact on society.
Promotion planning is a systematic decision making relating to all aspects of an organizations or
individual’s communication efforts.
The Importance Of Promotion
Promotion is a vital part of marketing. “Word of mouth communication” occurs when people
state opinions to others. Without sustained positive word of mouth it is difficult for a company to
succeed.
For Pepsi Cola, people have sustained positive word of mouth.
Pepsi Cola also believed on the value of promotion as:
v Establishes an image such as prestige, discount or innovative for the company and its goods
and services.
v Communicates features of goods and services.
v It creates awareness for new goods and services.
v It can reposition the images or uses of faltering goods and services.
v It generates enthusiasm from channel members.
v It explains where goods and services can be purchased.
v It can persuade consumers to trade up from one good or service to a more expensive one.
v It alerts consumers to sales.
v It justified the prices of goods and services.
v It reinforces loyal consumers.
Types Of Promotion
Four types of promotion are:
v Advertising
v Publicity
v Personal selling
v Sales promotion
Pepsi Cola applied all these four types of promotion.
Advertising
It is paid non-personal communication regarding goods, services, organizations, people, places
and ideas that in transmitted through various media by business firms, government and other
nonprofit organizations and individuals who are in some way identified in the advertising
message as the sponsor. The message in generally controlled by the sponsor.
Pepsi Cola also use these following advertising medium, daily newspaper, weekly newspaper
commercial television, cable television, magazines, Radio business publication, and transmitters.
The basic advertising themes are the product, consumer, and / or institutional appeals. Pepsi
Cola use “The Consumer Related Theme”, in which good or service uses explained cost benefits
of good or service shown, emphasis on how good or service helps consumer, threatening
situation & incentives given to encourage purchases.
Publicity
It is non personal communication regarding goods, services, organizations people, places and
ideas that is transmitted through various media but not paid for by an identified sponsor. The
message is generally controlled by the media.
Pepsi Cola also promote its products by using this tool, that is publicity, of promotions.
Personal Selling
Personal selling uses one to one interactions with buyers. Sales promotion includes paid
supplemental promotion efforts.
Selling in stressed when orders are large, consumers are concentrated items are expensive, and
service is required. Selling has limited audience high costs per customers, and a poor image. A
manager must oversee personal selling functions.
Sales person compensation can take one of three general formats: Straight salary, straight
commission or a combination of salary and commission or bonus.
Under a “straight salary plan”, a salesperson is paid a flat amount per hour week month or year.
The advent ages are that both selling and non-selling tasks are specified and controlled, there is
security for sales people, and expenses are known in advance. The disadvantages are the Low
sales force incentive to increase sales expenses not tied to productivity, and continuing costs
even if there are low sales order takers are usually paid straight salaries.
With a straight commission plan a sales purser’s earnings are directly related to sales, profits or
some other type of performance. The commission rate is often keyed to a quota, which is
productivity standard for the salesperson. A quota can be based on total sales, total profit,
customers serviced, products sold or another criterion. The advantages of a strength commission
plan are the motivated sales people no fixed sales person compensation costs and expenses tied
to productivity. The disadvantages are the lack of control over non-selling tasks performed the
instability of a firm’s dollar expenses and employer earnings, and the risk to employees.
To obtain the advantages of both salary and commission oriented methods, many firms use
elements of each is a “combination compensation plan”. Such plans balance company control,
flexibility, and employee incentives. Sometimes bemuses are stipulated for outstanding
individual or company performance.
Pepsi cola use combination compensation plan.
Pepsi cola’s supervision encompasses four aspects of sales management motivating sales
personal, measuring performance, completing non selling tasks and initialing behaviour changes.

Sales Promotion
Sales promotion efforts are greater now then ever before. Many firms are looking for any
competitive edge they can get and this increasingly involves some kind of sales promotion. The
various from of sales promotion are non more acceptable to firms and consumer then in the past.
Today more consumers look for sales promotions before buying, and channel members are
putting more pressure on manufactures for promotions. During economic downturns, even more
consumers are interested in value oriented sales promotion. Because of rising costs, advertising
and personal selling have become more expensive in relation to sale promotion.
Sales promotion lures customers, maintains loyalty, creates excitement, is often keyed to
patronage and appeals to channel members. Sales promotion may hurt image, cause consumers
to wait for special offers, and shift the focus from the product Pepsi cola offer for consumer “the
crown schemes”. Is it has been given Mercedes to one consumer and before Pepsi Cola up till
now not other its competitors did propose such big offer. Investment by Pepsi Cola in market is
very high.
For retailers, the company use tools of trade and has been provided refrigerator to 15,000 shops
so that they exclusively sell Pepsi brand. This company has also provided 10,000 litter racks to
shops, 1000 bottle racks to shops 20,000 shops signage (boards etc) 5,000 ice chest in rural areas.
The company also provides cash on credit Rs. 1000 to its financially needed shops.
Some recently offerings by the Shamim & Company to promote its products to consumers, as
sales promotion by shell and Pepsi cola on purchasing of twenty litter “Super Petrol”, one litter
Pepsi bottle will be free. On Eid event, in holiday inn, 1.5 litter Pepsi and one cake has been
given to each consumer. Pepsi cola also provide such offers as Dubai’s ticket, price discount as
in holy Ramzan month, sale Rs. 5. on 1.5 litter. In Abdullah center, Allahdin, in Tusso shop, help
in shop board. Shamim & company don’t want to leave aggressive policies against its
competitors in which main competitor is coca cola and in others one Rc. cola, double cola local
drinks, and to promote its products.
On the shop board of Tusso, company has to bear cost more then 200000 to maximum display of
product, company also investing more and more so that it can compete with competitors. Due to
availability of fresh fountain machines, the company also promoting its products in various areas
due to these sales promotion, they have increased their sales as compared to last year.

MARKET SEGMENTATION

Market segmentation & target market

Dividing a market into distinct groups of buyers with different needs, characteristics, or
behaviour who might require separate products or marketing mixes is called market
segmentation.
Pepsi cola segments its products as for people of having different tastes as for example, team,
Pepsi, Miranda and 7-up. Pepsi cola is offering these products so that different needs of
consumers fulfill markets consist of buyers, and buyers differ in one or more ways.
Levels of market segmentation
Mass marketing
In which mass producing, mass distributing, and mass promoting about the same product in
about the same way to all consumers.
Segment marketing
In which isolating broad segments that make up a market and adopting the marketing to match
the needs of one or more segments.
Niche marketing
Focusing on sub-segments or niches with distractive trails that may seek a special combination of
benefits.
Micro marketing
The practice of tailoring products and marketing programs to suit the tasks of specific individuals
and location include local marketing and individual marketing.
a) Local Marketing: Tailoring brands and promotion to the needs and wants of local customer
groups
b) Individual marketing: Tailoring products and marketing programs to the needs and
preferences of individual customers also labeled “markets-of-one marketing” and “one-to-one
marketing”.
Pepsi cola apply segment marketing level of market segmentation.
Target market is a set of buyers sharing common needs or characteristics that the company
decides to service. According to them, from seven to eight years, new generation is their target
market.
But as consumers perceived that for their each product, target market is different, for Miranda,
children are their target market. For 7-up, usually patients use this product. For Team, Pepsi new
generation is their target market.
Product position
The way the product is defined by consumers on important attributes the place the product
occupies in consumer’s mind relative to competing products. Consumers considered Pepsi cola
as on top, no 1 position. 95% people are brand loyal of Pepsi cola. To maintain its position the
management of Pepsi cola use management of Pepsi cola use aggressive polices to maintain its
position.
The global marketing environment
Marketing Environment
The factors and forces outside marketing that affect marketing management’s ability to develop
and maintain successful transactions with its target customers. The marketing environment offers
both opportunities and threats.
So by Pepsi Cola knows the vital importance of constantly watching and adapting to the
changing environment.
Pepsi Colas marketers are responsible for identifying the important changes in the environment.
Managers also feel the need of observing the outside environment.
Pepsi Colas marketers use the 2 discipline methods for sacking the environmental changes.
v Marketing intelligence
v Marketing research.
So Pepsi Cola uses the above disciplined methods for collecting the intonations about the
marketing environment marketers also spend time in the customer and competitor environment.
Pepsi cola’s environment is the combination of 2 major environments.
1) Micro environment
2) Macro environment.
Micro environment
The forces close to the company that affects the ability to serve its customers the company,
suppliers, marketing channel firms, customer markets, competitors and publics.
¨ The company
In designing the marketing plans, Pepsi cola’s marketing management takes other company
groups such as top management, finance, research and development, purchasing, manufacturing
and accounting groups into accounts. In this top management sets the company’s ,mission
objectives, broad strategies and policies. Marketing managers make the decisions within the
planes made by the top management and marketing plans must be approved by the top
management before they can be implemented.
¨ Suppliers.
Suppliers provide the resources needed by the Pepsi-Cola to produce the beverages so suppliers
developments can seriously affect marketing. So marketing managers of Pepsi-Cola watches the
availability supply shortages or delays, labour strikes and other events can cost sales in the short
run and damage customer satisfaction in longer run.
Raw material of Shamim and company is consist of concentrate, sugar, empty bottles, ammonia,
dioxide, caustic soda and other chemicals used in production process and lab so for the selection
of supplier they contact different suppliers of the quotations through phones, faxes etc or some
times through daily news paper company has different suppliers for the supply of sugar and
different chemical bottles etc which are located near the compan7 such as Shaikhupura, Jhang
etc. they rely on co-operative relationship rather then competitive rations.
So the supply of raw material should be in time due to cooperative relationship.
¨ Customers
Pepsi cola the need to study its customer markets closely. Consumer markets consist of
individuals and households that buy the goods and services for personal consumption.
Business markets buy the goods and services for further processing or for use in their production
process. Whereas the reseller markets buy goods and services to resell at a profit. Govt. markets
are made up of government agencies that buy goods and services to produce public services or
transfer the goods and service to other who need them at the end, international markets consist of
there buyers in other countries, including consumers, producers, resellers and government.
Here shamim & Company has the link with the customer and resellers market from
children to people of every age old age use Pepsi cola products.
¨ Competitor
No single competitor marketing strategy is best for all companies. Shamim & company consider
its own size and industry position and compares their with its competitor.
Pepsi cola (Shamim & Company) with the dominant positions in can industry uses those
strategies that the smaller firm can not afford.
¨ Publics
Shamim & Company marketing environment also include the various public. A public is any
group that has an actual or potential interest in or impact on an organizations ability to achieve
its objective.
i) Financial publics
ii) Media publics
iii) Govt. publics
iv) Citizen action public
v) Local action public
vi) General action public
vii) Internal action public
Shamim & company can prepare marketing plans for there major publics as well as for its
customer markets.
Macro Environment Of Shamim & Company
“The large societal forces that affect the micro environment is called as macro environment.
These forces may by the demographics, economic, natural, technological, political and cultural
forces”.
¨ Demo graphic environment
It is the study of human population in term of size, density, locations, age, gender, race,
occupation and other statistics. The demographic environment is of major interest to the
marketers because it involves people, and people make up marketers.
¨ Economic environment
Another important factor for shamim & company is economic factor. The economic environment
consist of factors that affect consumer purchasing power and spending patterns. Same countries
have subsistence economies. In such economy, they consumer most of the industrial output.
For the containment of its market share, shamim & company also consider the economic factor.
¨ Natural environment
Natural resources that are needed as inputs by marketers or that are affected by marketing
activities. Water is the integral part of its shamim & company products which the management
obtain from the natural environment.
¨ Technological environment
Technological environment forces that create new technologies creating new product and market
opportunities shamim & company seek such eppertu8nities to sustain its market leadership and it
always keep an eye on such environmental changes.
¨ Political environment
Lows, government agencies and pressure groups that influence and limit various organizations
and individuals in a give society.
¨ Cultural environment
Cultural change is made up of institutions and other forces that affect a society basic values,
perceptions, preferences and behaviours. People grow up in a particular society that shape their
basic beliefs and values. They absorb a world view that defines their relationships with others.

Quality
Quality control procedure / system is provided by Pepsi to Shamim & company which is
followed and monitored by Pepsi. After 3 minutes they check the quality of bottles on each line.
Pepsi Cola (shamim & Co) management said that they have not get the ISO certification because
they do not export their products, even the product has already built the positive and good image
in consumers mind.
Competition
In competition Pepsi cola (shamim & company) is so aggressive. They want to kill their
competitor shamim & company feels that its competitor is like out.
SWOT Analysis
Strength
Pepsi Cola consider that its brand is its strength, according to it, its brand is like iron. Another
strength of Pepsi Cola is its best sale’s team, its best management, best distribution channel and
there are 140 distributors in each and every outlet. Pepsi Cola thinks that its strong market
position and product presentation are also in the favour of its strength.
Opportunity
For Pepsi Cola, there are many opportunities in the market. In Mexico, the percapita
consumption of bottles is 90 per person per year. If the availability is close to the customer then
it indicates its opportunity and Pepsi Cola company is trying to achieve this opportunity.
Weakness
Pepsi Cola management thinks that if it fails to achieve this opportunity then it will show its
weakness.
Threat
They have to make the new policies to retain in the market to save itself from its competitor.

Posted in: Marketing

Newer Post Older Post Home
0 comments:
Post a Comment
Links to this post
Create a Link
Top of Form

Search

Bottom of Form

New Reports Added

• Export Procedure (International Business)
• BANKING INDUSTRY OF PAKISTAN: PERFORMANCES AND CONSTRAINS
• Orientation and Training at Mobilink and Warid
• Comparison of HR Practices at Bank Alfalah and Pepsi
• ROLE OF IT IN HUMAN RESOURCE MANAGEMENT
Categories
• Agriculture (14)
• Articles (46)
• Automobiles Cars Vehicles (13)
• Bangladesh (1)
• Banks and Financial Institutions (56)
• Business Communication (6)
• Business Mathematics and Statistics (BMS) (1)
• Business Research Methods BRM (11)
• Case Studies (1)
• Chemicals Paint and Coatings Industry (4)
• Compensation System Development (1)
• Computer Science and Information Technology (28)
• Construction and Building Business (1)
• Consumer Products (1)
• Current Affairs and Politics (1)
• Customer Relation Management (1)
• Defense and Weapons (1)
• Economics (25)
• Education Learning and Training (4)
• Electrical and Electronics Business (2)
• Engineering (2)
• Entrepreneurship (2)
• Faisalabad (1)
• Fashion Industry (2)
• Finance (23)
• Financial Accounting (3)
• Financial Management (16)
• Food and Drinks Industry (12)
• Garments and Clothes (1)
• General Business Topics (2)
• Healthcare Services and Hospitals (4)
• Hotels and Recreational Business (3)
• Human Resource Management (HRM) (47)
• Import and Export (2)
• India (1)
• Insurance Companies (2)
• Internship and Apprenticeship (17)
• Live Stock and Animals Feed (2)
• Living and Household Products (1)
• Management (15)
• Managerial (1)
• Managerial Accounting Management Accounting (5)
• Marketing (95)
• Multan (27)
 • Multinational Corporation and International Companies (22)
• National Investment (1)
• Natural Gas and Oil Business Reports (12)
• Natural Resources (1)
• Non Profit Not-for-Profit Organizations (2)
• Operations Management (1)
• Organizational Behavior (OB) (2)
• Pakistan (6)
• Plastic Industry (1)
• Psychology (1)
• Public Service and NGOs (4)
• Rankings and Ratings (1)
• Ratio Analysis Financial Analysis (1)
• Shipping and Transportation (3)
• Shoes and Footwear (1)
• Small Industries (3)
• Socio-Economic (14)
• Telecommunication (7)
• Textile Mills (29)
• Tobacco Industry (2)
• USA (2)
• Video Lectures (2)
Facebook

Stats
Total visits since Oct-2009 are 318,941

Popular Reports
• Complete Research Report on Information Technology
 • Project Report on Nokia
• Internship Report Allied Bank Ltd
• HRM Report on Nestlé
• New Product Development at KFC - Page 1
• HBL Human Resource (HR) Practices
• Internship Report: Gul Ahmed Textile Mills Pretreatment Deptt.
• Report on Strategic Management of Unilever
Recent Comments
• i want hr policy of packages ltd plz send me any o...
• abdul_samad_0608@yahoo.com plzz send me images of ...
• can i have detail information about ultrasonic gen...
• I want Lanco Training & Development report.
• v good
Important Message
Download Free MBA Reports | Download Free Business Project Reports

Note: Hundreds of Free MBA Reports are available on this website, yet the front page doesn't
show all. Please type in the search box above to get your desired reports.
---
Share your project reports with others.
Please email us your reports.
freeprojectreports@gmail.com
---
Say bye bye to Internet Explorer, use Google Chrome for fastest browsing.

Copyright © 2011 Download Free MBA Reports | Download Free Business Project Reports
D