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We owe our gratitude to Allah Almighty whose shower of blessings and kindness has
been on us through out the working on these pages. It is His help that we finally able to
compile this document.
We are indebted to our respected teacher Mr. Jawad Saleem who’s indispensable and
intricate comments on various aspects conjoined with motivation made us come forth
holding such as project.


Pepsi International is a world renowned brand. It is a very well organized multinational
company, which operates almost all over the world. They produce, one of best carbonated
drinks in the world. Pepsi is a symbol of hygiene, quality and service, all over the world.
Pepsi is producing Cola for more than 100 years and it has dominated the world market
for a long time. Its head office is in New York.
Current Position:
PepsiCo is the second largest food and beverage company in the world. It manufactures
markets and sells a variety of salty, sweet and grain-based snacks, carbonated and non-
carbonated beverages PepsiCo seeks to achieve growth and long-term value in its operational
activities by creating competitive advantages through new product innovation.

“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.”
“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.”
“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.”
“To increase the value of their shareholder’s investment through sales growth, cost
control and wise investment of resources.”
1. Pepsi is a USA based public company whose stocks are available in New York.
2. Mountain Dew, acquired by Pepsi-Cola in 1964, switches its advertising and package
graphics room hillbillies to action-oriented scenes.
3. The third Mountain Dew slogan appeared in 1973 "Put A Little Yahoo in Your Life."
4. PepsiCo acquired Pizza Hut, Inc. Pizza Hut was founded in 1958 by Dan and Frank
5. Taco Bell is was acquired by Pepsi. Taco Bell was established in the mid 1960s by
Glen Bell.
6. PepsiCo purchased Kentucky Fried Chicken, the leader in the quick service chicken
market. KFC was founded by Colonel Harland Sanders. Colonel Sanders began
franchising the company in 1952. KFC was spun off along with Pizza Hut and Taco Bell
businesses as Tricon Global Restaurants, Inc. in 1997.
7. PepsiCo purchases Seven-Up International, the third largest franchise soft drink
operation outside the United States

SWOT Analysis of PEPSI

SWOT Analysis, which is based on thorough review of the business (corporation, product
category competition, customers and products), identities and evaluates the internal
strengths and weakness of the companies well as its external threats and opportunities.
The marketing mix is driven by the results of the SWOT analysis.
 Demand of Pepsi is more than its competitors.
 Company has a very established name and a good reputation.
 Pepsi has large market share than its competitors.
 As the target customers of Pepsi is young generation, so Pepsi has more brand loyal
 Most of the customers are satisfied with the price of the Pepsi.
 Pepsi is an international company and it has a very strong position internationally.
 The environment of factory is very good and attractive.
 Pepsi spends a lot of budget on its advertising.
 Pepsi has a very vast distribution channel and it is easily available everywhere.
 Employees are also motivated.
 Pepsi offers many discount schemes for customers time to time.
 Pepsi Cola is sponsoring sports, musical concerts, walks
 Pepsi does not offer any sort of incentive or discount to its retailers.

 Pepsi target only young customers in their promotions.

 Crown of the disposable bottle is not good.

 Demand of disposal bottle is declining.
 Pepsi tin pack is not available in far off rural areas.
 Pepsi is not considering many potential outlets like hotels, college canteens etc.
Company may start entering rural areas also.
The company may also diversify its business in some other potential
Increased interest of people in musical groups, cultural shows and sports
has provided an opportunity for Pepsi to increase its sales through them.
The main competitor of the company is the Coca Cola.
At the international level, Pepsi has a very strong competition with Coke.
Coke has started its advertisements more effectively to increase their
demand and it is a very strong threat for Pepsi.
Cola drinks are not good for the health so the awareness level of the
people is in creasing which is a big threat to the company.
HOW Internal and External factors affecting the strategies
Marketers need to be good at building relationships with customers, others in the
company and external links. To do this effectively, they must understand the major
environmental forces that surround all of these relationships. A company’s environment
consists of forces outside marketing that affect marketing management’s ability to build
and maintain successful relationship with the target customers. Every company should
know the vital importance of constantly watching and adapting to the changing
environment. As the world is moving fast today, no one can be certain about the future.
The environment continues to change rapidly. By carefully studying the environment,
marketers can adapt their strategies to meet new marketplace challenges and
Some of the external and internal environmental factors that affect the marketing trend of
the company are as follows:
The macro environment consists of the larger societal forces that affect the
microenvironment. The external factors are not under the control of the marketers; they
can just observe them and make strategies in light of these factors. Some of these factors
are given below:
Demographic Factors:
· Age
The requirements of different age groups are different. Pepsi should target
that age group that consumes it the most and make promotional strategies
according to their behavior. So their main target is the young generation.
· Education
A company has to make promotional strategies keeping in view the
customer level. If the percentage of education is high in a country then
through advertisements people can be made well aware of their product
and can convey their message easily. Promotion and education has a direct
· Population Distribution
Population distribution means how much [population lives I urban areas
and rural areas. In Pakistan 35 % population resides in urban areas and
65% population lives in rural areas. Pepsi is focusing on urban areas as
people there are more inclined towards such beverage while people in
rural areas are more inclined drinking lassi and desi drinks.
· Population Density
It means number of people in one square km per area. Karachi has the
largest population density and Islamabad has less population density in
Pakistan. Pepsi sales are more in Karachi as compared to the sales in
· Income and Income per Capita
If the income level or per capita income of the people increases, it will
have a positive effect on the consumption of Pepsi.
· Inflation
If the country faces inflationary trend in the market, the price of the Pepsi
will ultimately increase which will lower its demand.
· Consumption Behavior
Pakistan is a consumption oriented society. Due to demonstration effect
the people are more inclined towards consumption than saving. So the
people of Pakistan spent heavily on food items. Hence Pepsi has a good
market share in the present circumstances.
· Income Distribution
It means how much is in the hands of rich and poor class. In Pakistan 10%
rich people posses 93% of wealth and 90% people posses 7% of wealth. If
there is balanced distribution of income in the country, the consumption of
the people will increase hence increasing the sales of beverages as well.
· Payment Mod
As the use of plastic money is increasing the consumption pattern of the
people are increasing. Although it will have a low affect on the
consumption of Pepsi.
· Employment Opportunities
As employment opportunities increase the living standard of the people
increase and the people consume more.
· Aggregate Demand
In case of Pepsi, aggregate demand of the product increases in the season
of summer as the hot weather makes the consumers want to drink more.
· Aggregate Supply
In summer season to cope up with the increasing demand they have to
increase the aggregate supply of their product.
· Economic Policies
Some of the economic policies which can affect the market of Pepsi are
discussed below:
· Fiscal Policy
It is the policy of taxes. If heavy tax is levied on Pepsi then its price will
rise having negative affect on its consumption.
· Monetary Policy
Monetary policy is made to restrict or increase the supply of money in the
market. If policies are made to restrict the flow of money in the market,
inflation can be controlled hence increasing the real income of the people
which will ultimately affect the consumption of Pepsi.
· Price Policy
If price of Pepsi is increased its demand will decrease and vice versa.
· Income Policy
If income of the people will increase their purchasing power will increase
and hence increasing the market share of Pepsi.
· Region
Pakistan is divided into different geographical regions. Marketing and
sales of Pepsi is different in different geographical regions. In hot areas its
demand is more.
· City Size
The cities which are densely populated the consumption of Pepsi is more.
· Climate
Pepsi is more suitable for humid or hot weathered countries like Pakistan.
It is a source of refreshment when a person is thirty due to the hot weather.
· Infrastructure
Roads are the basic need for transportation of Pepsi from one place to
another. Pepsi cannot open factories in every city of Pakistan so it has to
transport it to other cities where Pepsi is demanded.
Electricity is the basic necessity for production of any product. Constant
load shedding slows down the process of production which leads to less
production and low market share.
· Research and Development
Through research and development quality of the product can be improved
or better techniques or machinery can be developed which can increase the
production. When technology is advance the supply of the product
increase hence the company experiences growth in their business.
Whenever the government is considered to be stable, the business will
flourish. If there is political stability in the country the policies and
strategies made by Pepsi can be consistent to be implemented. Foreign
companies are also keen to invest in those countries which are politically
stable where they have no fear of decline in their market share or shut
down due to sudden change of government.
· Mixed Economy
In mixed economy government and private sector both plays their role in
developing the economy of the country. Investment by foreign companies
like Pepsi is more likely to flourish in mixed economy.
· Laws Formulation
Government has given copy rights to Pepsi so that another company
cannot sell their product by the name of Pepsi. The countries where laws
are formulated, the strategies and activities of the company are different.
· Social Responsibility
Pepsi’s social responsibility is to provide its customers with clean and
hygienic product so to do this they have increased the use of disposable
· Psychographic
It is a combination of demographic and psychological factors.
Psychological attributes mean how you perceive things. The company will
focus on the behavior of consumers and make different changes in their
product quantity or quality and in promoting their product so that they can
attract the customers. Keeping in view that the behavior of different
consumers is not alike they have to make their marketing strategies in
accordance with their requirements so that they are convinced to buy the
· Religious
Religious factors can influence the market sales of Pepsi as it happened in
2003 when the U.S-led attack on Iraq, wide sections of society in Pakistan
have banned American multinationals Coke and Pepsi
· Social Status
Pepsi is a well renowned brand. People who are brand conscious will not
drink beverages of lesser known brands such as Amrat cola. They will try
to show their status by drinking Pepsi which is known to all as a quality
· Media
It is a very important factor for marketing. Media these days is a very
effective way of inspiring people to buy a specific product. A good
promotion can boast up sales to a great extent.
There are three types of customers
1. Consumer
2. Business
3. Government
Pepsi main focus is the consumers which are the end users. Pepsi has to make its
marketing strategies keeping in view the consumer buying behavior. To forecast the
behavior of the consumer is a business problem. Physical aspect of the consumer can be
satisfied but it is difficult to satisfy the consumer psychologically. Consumer buying
behavior is affected by certain factors like Cultural factors, Social factors, Personal
factors and Psychological factors. So the producer should keep these factors in Mind
while promoting their product so that they can acquire the customer and increase their
market share.
There are different consumers in a society whose behavior is not the same. Every
consumer has a different perception of different products. Some consumers are impressed
by one quality of the product which may be in the view of other consumer not that
impressive. So to deal with different consumers in a society one should know about the
consumer buying behavior process which may help in making a true picture of their
product in the mind of the consumers.
Consumer buying behavior process is explained in some steps which are discussed below:
· Need Identification
The consumer is thirsty and he wants to quench his thirst.
· Information Search
He will search as to what will satisfy his thirst the most.
· Evaluation of Alternatives
He will now evaluate from the wide range of beverages available to him
that which one of them is suitable to him in terms of quality, taste and is
pocket friendly.
· Selection
After evaluating the product he will select a product.
· Purchase
The consumer will buy the selected product.
· Post-Purchase Experience:
It is the experience that the consumer gets after using the product. He will
use the product again if he feels that his satisfaction after use is more or
equal to the price of the product.
After looking at above mentioned example, we can get an understanding that a product
should be so desirable that whenever a person identifies his need, he selects our product
among various substitute products and he feel satisfies so that he retains the use of that

Pepsi is a well renowned company and it has maintained its position well by
understanding the client psychology, by ensuring quality, by introducing ingenuity in
products, by enlarging its product base, by keeping economic factors in view and by
intense and jazzy advertisements.
Whenever and where ever there is a spotlight event, Pepsi must figure in, like the one day
international cricket matches between India and Pakistan many other such occasions. The
key word for success in the Marketing World is to “remain in the spotlight” and that is
what Pepsi is doing.
The marketing world is full of surprises. Who could imagine that Coca Cola would be
overtaken by Pepsi? If Coke could be overrun by Pepsi, it would be no wonder that Pepsi
might be overtaken by some other beverage. The need then is to combine quality with
ingenuity. Along with that, the reputation of the company has to be kept robust.
Today we live in a fast moving world where novelty and newness count a lot. One cannot
rest on one’s laurels. Fresh efforts, newness of approach must remain the cardinal
principles of a well orchestrated marketing strategy and the campaign must be relentless.
A continuous bombardment in advertisement would convince the clients that Pepsi is a
part of their lives. In order to live with style, Pepsi ought to be an essential ingredient of
one’s life.
The Pepsi is at its maturity stage and the sales of company are not growing very rapidly.
Company is doing a lot of promotional activities to let the product remain in the market.
It holds a large share of the market and whenever the sales state declining, the company
can improve it by different promotional activities.
Marketers of Pepsi can try to improve sales by improving one or more marketing mix
elements. They can cut prices to attract new users and competitor’s customers. They can
also launch a better advertising campaign or use aggressive sales promotion to improve
the sales. Thus, Pepsi is at its maturity stage.