Beverage Industry of Pakistan

Soft Drinks in Pakistan market report offers a comprehensive guide to the

size and shape of the market at a national level. It provides the latest retail
sales data, allowing you to identify the sectors driving growth. It identifies
the leading companies, the leading brands and offers strategic analysis of
key factors influencing the market - be they new product developments,
packaging innovations, economic/lifestyle influences, distribution or pricing
issues.

1.0 HAIDRI BEVERAGES (PVT.) LIMITED :

The company is a franchise of a Multinational. Equipped with the latest
technology in the entire region producing FMCG. Our objective is to value
our customer & produce product of highest quality for their satisfaction. We
attain our objectives through coordinated team efforts and by working in the
right direction. We let our human resource learn and grow so that they can
contribute in achieving their objectives efficiently and effectively.

1. PEPSI
2. MIRINDA
3. TEEM
4. 7-UP

Office, Address and Phone Number

::.Registered Office CDA INDUSTRIAL TRIANGLE, KAHUTA ROAD,
Address: ISLAMABAD.
::.AUTHORISED CAPITAL: 10000000

::.PAID UP CAPITAL: 2800000

::.CEO NAME: MUHAMMAD IMRAN KHAN

::.CEO ADDRESS: 24-PIR KHURSHID COLONY, MULTAN

::.INCORPORATE DATE: 9/25/1979

::.Telephone (92)(051) 4490490

 ::. Fax 370898

1. Pepsi:

::.Registered head
Factory: D-113, Manghopir Rd., SITE, Khi.
Office Address:
Habib Bank Chowrangi,KFC
::Landmark
Restaurant,Manghopir Road
::City Karachi
::.Telephone +92-21-32561300, 32561301, 32561302
::. Fax 32569806

2. Mirinda:

::.Registered head
Factory: D-113, Manghopir Rd., SITE, Khi.
Office Address:
Habib Bank Chowrangi,KFC
::Landmark
Restaurant,Manghopir Road
::City Karachi
::.Telephone +92-21-32561300, 32561301, 32561302
::. Fax 32569806

3. Teem:

::.Registered Office CDA INDUSTRIAL TRIANGLE, KAHUTA

Address: ROAD, ISLAMABAD.
::.AUTHORISED
10000000
CAPITAL:
::.PAID UP CAPITAL:2800000
::.CEO NAME: MUHAMMAD IMRAN KHAN
::.CEO ADDRESS: 24-PIR KHURSHID COLONY, MULTAN
::.INCORPORATE
9/25/1979
DATE:
 4. 7-UP :

::.Registered Office CDA INDUSTRIAL TRIANGLE, KAHUTA ROAD,

Address: ISLAMABAD.
::.AUTHORISED CAPITAL: 10000000

::.PAID UP CAPITAL: 2800000

::.CEO NAME: MUHAMMAD IMRAN KHAN

::.CEO ADDRESS: 24-PIR KHURSHID COLONY, MULTAN

::.INCORPORATE DATE: 9/25/1979

SHAHI BEVERAGES (PVT.) LIMITED:

1. COCA-COLA
2. FANTA
3. SPRITE

Office, Address and Phone Number

::.Registered Office
3 PARK LANE UNIVERSITY TOWN
Address:
::.AUTHORISED
2500000
CAPITAL:
::.PAID UP CAPITAL: 249910
::.CEO NAME: NADIRA K. M. A. KHAN
::.CEO ADDRESS: 3-PARK LANE, U/T PESHAWAR
::.INCORPORATE
3/31/1961
DATE:
::.AUTHORISED
250000
CAPITAL SHARES:
::.PAID UP CAPITAL
24991
SHARES:
::.AUTHORISED PER
10
VALUE:
 ::.PAID UP PER
10
VALUE:

1. Coca Cola

::.Registered Office
D-51, ESTATE AVENUE , S.I.T.E KARACHI.
Address:
::.AUTHORISED
4000000000
CAPITAL:
::.PAID UP CAPITAL: 3572986000
::.CEO NAME: CEMAL AHMET BOZER
FAHRETTIN KERIM GOKAY CAD NO. 35,
::.CEO ADDRESS:
ALTUNIZADE
::.INCORPORATE DATE: 4/18/1996
::.AUTHORISED
400000000
CAPITAL SHARES:
::.PAID UP CAPITAL
357298600
SHARES:

2. Fanta:

::.Registered Office Address:D-51, ESTATE AVENUE , S.I.T.E KARACHI.

::.AUTHORISED
4000000000
CAPITAL:
::.PAID UP CAPITAL: 3572986000
::.CEO NAME: CEMAL AHMET BOZER
FAHRETTIN KERIM GOKAY CAD NO. 35,
::.CEO ADDRESS:
ALTUNIZADE
::.INCORPORATE DATE: 4/18/1996
::.AUTHORISED CAPITAL
400000000
SHARES:
::.PAID UP CAPITAL
357298600
SHARES:
 3. Sprite:

::.Registered Office
D-51, ESTATE AVENUE , S.I.T.E KARACHI.
Address:
::.AUTHORISED
4000000000
CAPITAL:
::.PAID UP CAPITAL:3572986000
::.CEO NAME: CEMAL AHMET BOZER
FAHRETTIN KERIM GOKAY CAD NO. 35,
::.CEO ADDRESS:
ALTUNIZADE

AMRAT BEVERAGES (PVT.) LIMITED:

Amrat beverages international is a national establishment. Which aims at producing hi-
tech based quality products so that our customers could have a quality choice in
carbonated soft drinks? Keeping in view the ancient desire of consumers.

Head office 17-d,block-6 West Side, Peches

City Karachi
Tele no +92 21 111-600-000
Fax no +92 21 4540529
SHEZAN INTERNATIONAL LTD:
Shezan International Limited. The Company's principal activity is to manufacture and
distribute juices, beverages, pickles, preserves and flavorings derived from fresh fruits or
vegetables. The products of the Company include tetrapak juice, mango juice, pickles,
custards, vegetables, jellies and jams. The Company distributes the products under the
Shezan brand name.

Head office 56- Bund Road

City Lahore
Tele no +92 42 7466900-04
Fax no +92 42 7466904
 PEPSI IN PAKISTAN

INDUSTRY OVERVIEW
The term "Industry" refers to large manufacturing companies such as the
multinational car companies. The term "Industry" has further been divided
into three broad categories: Primary, Secondary, and Tertiary.
Primary Industries are the industries responsible for the extraction of natural
Resources. They comprise of agriculture, hunting, fisheries, and forestry,
mining and quarrying.
 Secondary Industries engage in the manufacturing and production of
goods,
Secondary industries include businesses of construction, manufacturing of
clothes, metal products etc. They also include utilities that provide services
such as gas, water, and electricity,

Tertiary Industries comprise of those companies that are involved in the

service sector. This category includes businesses of retailers (clothes, food,
and soon), banks, insurance companies, hotels, restaurants, lawyers, doctors,
teachers, etc.
In Pakistan the beverage industry is not as competitive as compared to the
beverage industry of the developed countries. In Pakistan Pepsi and Coca-
Cola are the two major shareholders of the beverage industry. To make these
soft drinks highly competitive the companies use latest technology to create
year round availability and ever-lasting impression on the minds of the
consumers. The two companies, especially, in the soft drink industry use the
latest equipment in order to maintain their quality standards and make their
customers satisfied.

3. Product Mix Of Pepsi Beverages :

Company Product line Length depth Product
mix
Pepsi Pepsi 4 4
Beverage -Pepsi Regular Pepsi Regular (6)
-Pepsi Max Pepsi Max (3)
-Pepsi Diet Pepsi Diet (3)
-Pepsi Twist Pepsi Twist (3)

7up 2 7up Regular (5)

7up Diet (3)
-7up Regular
-7up Diet

Mirinda 2 Mirinda Orange(4)

-Mirinda Orange Mirinda Apple (2)
-Mirinda Apple

Mountain Dew 1 Mountain dew (5)

Pepsi Regular
 Pepsi Depth Prices

Pepsi regular Pepsi Tinn 35

Pepsi budd pack 22
Pepsi regular 15
Pepsi 1.0 ltr 40
Pepsi 1.5 ltr 65
Pepsi jumbo 75

Pepsi’s Brand:
Pepsi’s brand is basically is basically “ME” branded. They use the temperament of
“ME”. In contrast to Coke they believe on individual struggle.
Product life cycle
$ 4 5 ,0 0 0 . 0 0

$ 4 0 ,0 0 0 . 0 0

$ 3 5 ,0 0 0 . 0 0

$ 3 0 ,0 0 0 . 0 0

$ 2 5 ,0 0 0 . 0 0
m illio n
$ 2 0 ,0 0 0 . 0 0

$ 1 5 ,0 0 0 . 0 0

$ 1 0 ,0 0 0 . 0 0

$ 5 ,0 0 0 .0 0

$ 0 .0 0
2 0 0 32 0 0 42 0 0 52 0 0 62 0 0 7
6... Market Leader of Cola
In cola Pepsi is a market leader among all the others and itx competiotor is
Coca Cola all others have very less share only coca cola is coming up with
the passage of time so its main competitor is Coca cola.

Coca Cola as major competitor

Pepsi the largest beverage company in Pakistan with 72% market shares. It
has not been an easier pathway for Pepsi to gain nearly 3/4th of our
country’s market share in less time compares to its biggest competitors Coca
Cola. They have tried to harm Pepsi in some ways or the other. In 1994,
Coke reduced the prices to Rs5 and Pepsi has to reduce their prices in order
to compete. In doing this, both the companies had to bear huge losses. Coke
had a loss of 9 million whereas Pepsi the main sufferer bearing a loss of 14
million. This price war was reduced when Coca-Cola agreed not to go on
price competition ever again.

Market share of Pepsi Cola And Coca Cola

And Market Leader
Pepsi’s market share is 72%.Coca Cola’s market share is 28%
LOCAL MARKET GROWTH PEPSI VS COCA
COLA

Local market growth signifies that what the position of different products is
in thelocal market, which products have captured more market share as
compared to the other products, and what type of products the consumers
prefer etc.In the area of Rawalpindi and Islamabad, Pepsi has been able to
capture the maximum market share, which is 90 percent, and the company,
Haidri Beverages, has a market share of 85 percent. The biggest competitor
of the product, Coca-Cola, has failed to make a significant impression in the
market and has been able to capture a market share of only 10 percent. The
Shahi Beverages, the franchisers of Coca-Cola, has a market share of only
15 percent.

Haidri Percentage Shahi Percentage

Beverages Share Beverages Share
PEPSI 90 % COCA-COLA 10 %

MIRINDA 55 % FANTA 45 %

TEEM 15 % SPRITE 85 %

7-UP 100 % No Substitute

Strategy Adopted by Pepsi:

Pepsi Strategy
Our mission is 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 to act with honesty, fairness and
integrity.

In all of its business dealings with suppliers, customers and

competitors, PepsiCo will:
• Compete vigorously and with integrity.
• Treat all customers and suppliers honestly, fairly and objectively.
• Avoid any unfair or deceptive practice and always present our services and
products in an honest and forthright manner.
• Never comment on a competitor's product without a good basis or need for
such statements.
• Make clear to all suppliers that we expect them to compete fairly and
vigorously for our business, and endorse the principles in our Code of
Conduct. We will select our suppliers strictly on merit.
• Comply with all laws prohibiting agreements with competitors to:
fix prices or other sales terms; divide or assign sales territories, customers
or
product lines; or

coordinate bids and agreements with customers to fix their resale prices.
These
types of agreements are generally illegal in the United States and
many other markets where we conduct business.
 Marketing Strategies

SEGMENTATION DATA
VARIABLE

GEOGRAPHIC
World wide Asia
Country Pakistan
Cities All over the Pakistan
Density Urban
Climate Hot and Dry
DEMOGRAPHIC
Age 2-65
Gender Male, female
Family size Any
Family life cycle Married Unmarried
Income 5000 to upward
Occupation Every class
Education School College Universities
Religion All
Race Asian
Nationality Pakistani
Psychographic
Social class Middle class,Upper class
Lifestyle Strivers and stragglers
Behavioural
Occasions Parties Birthdays Regular
Benefits Quality ,taste
User status First time user
Loyalty status Strong
Readiness stage Aware ,interested

Postioning :
One a bussiness has decided which segment of the market it will compete
in,developed a clear picture of its target market and defined its product, the
positioning strategy can be developed.Positoning is a process of creating,the
image the product holds i9n mind of consumer,relative to competing
products.

Branding :
There are a number of branding strategies:Generic brand strategy,individual
brand strategy,Family branf strategy,Manufacturer’s brand strategy,private
brand stratgy and hybird brand strategy .pepsi utilize the individual brand
Strategy as pepsi’s major products are given their own brands for example
Mirinda ,7up,etc

Packging :
Packaging which is not as highly perceived by bussiness,is still an important
factor to examine in the marketing mix.packaging protects the product
during transportation,while it sit in the shelf and during use by consumer ;it
promotes the product and distinguished it from the competition.packaging
can allow the bussiness to design promotional schemes,which can generate
extra revenue and advertisements.pepsi has benefited from packaging the
product with incentives and endorsement on the labeling as apromotional
stratgy to increase the volume of sales and revenue.

Organizational Structure:
Organizational structure is the formal pattern of interactions and
coordination
designed by management to link the tasks of individuals and groups in
achieving organizational goals. Haidri Beverages has a Managing Director
on top and there are three General Managers (Marketing, Administration,
and Technical). These departments are further divided into marketing, MIS,
Shipping, Security and Production etc.
Problems Faced by Pepsi

Strong brand recognition of Pepsi in consumer's mind.

Weak advertisement of the product.

Lack of commercials on television.

Low quality of water which is used in a product.

Lack of impressive and attractive out-doors promotion.

The visually impaired members of society are effectively alienated

with their text reading software.

Information seekers with text only browsers or images disabled to

speed up download times and reduce data transfer costs are
alienated.

Solution for the problems:

Increase in advertisement expenditure to attract the people.

Reasonable prices which is easily affordable by its target market

To involve Pepsi-Co in a joint activity.

To appear more ethical than their competitor.

Establish Coke as a superior product in the minds of customers

Recommendations:
Getting the most out of the Pepsi products - including not only improvement
to
the products, but new products and new ways to enjoy them - is the goal of
any PepsiPurist. Here are some ideas which PepsiCo should consider to
increase customer satisfaction.

Self-Cooling Pepsi.
If you've ever seen those chemical packs that the doctors use to provide a
cold compress for a muscle injury, then you could appreciate how cool it
would be to have a similar feature built into a Pepsi container. Buy it warm
and take it with you for hours. Then, about 10 minutes before you want a
cold drink, switch on the cold! It would also be acceptable to have the
cooling pack be separate from the can, but the problem is that the cooling
packs could then be used to cool beverages other than Pepsi.

Pepsi-A-Day.
If you like to give the gift of a Pepsi per day to special friends and family.
You don’t want to buy a large pack of Pepsi. You want your special person
to get the fun and pleasure of getting a Pepsi in the mail every day. If one of
the self-cooling packs described above were included, well then the
entire better!
Solid Pepsi
Purist Pepsi drinkers often find themselves in situations where food and
drink are simply not practical. In those cases a solid form of a Pepsi is
needed. Doris Day once starred in a movie which was about a product
known as VIM - the mint equivalent of a triple martini. A similar invention
is needed for Pepsi purists to allow the enjoyment of Pepsi in a confined
environment - where drinking would be awkward.

CONCLUSION:
Pepsi has 37% global market share operating in 190 countries. . At every
level of Pepsi Cola Company take great care to ensure that highest standards
are met in everything they do. In their product, packaging, marketing and
advertising, they strive for excellence because they think their customer
deserves better quality products. They promise to work towards
improvements in all areas of their organization. In their manufacturing and
bottling process, strict quality controls are followed to ensure that Pepsi Cola
products meet the same high standards of quality that customers expect from
them. They also follow strict quality procedures during manufacturing and
filling of their packages. Each bottle and can goes through inspection and
testing process. Containers are rinsed and quickly filled through a high
speed, state of the art process that
helps prevent any foreign material from entering the product. Additional
quality control measures help to ensure the integrity of Pepsi Cola products
throughout the distribution process from warehouse to store shelf. Pepsi
Cola local bottlers determine which products to pack and sell in their
territory based on local consumer demand and other market factors. Pepsi
has a big enough market share to challenge Coca Cola. They have their best
balance of promotions,
communicating to their target audience through celebrities like Robbie
Williams, David Bekham, Britney Spears, etc. The Pepsi chart also helps in
promoting as the youth like music. Pepsi is gaining the football market from
Coke. Pepsi also promotes on internet newspaper, through sponsorships,
radios, etc.Pepsi also promote its products in the supermarkets by keeping
discounts like buy one get one free. It also keeps competition with great
prizes which catches the eye of the consumer.