Group NamesGohar FaridAhmad Maqsood Muneeb TahirAmnaRamshaAbdul HaseebGroup GCompanyPepsiCo,LTDProduct PepsiFinal ProjectsPepsiCo , LTD PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquarter is in , New York.
PepsiCo has interests in the manufacturing,marketing, and distribution of snacks, beverages, and other products. company’sproducts are distributed across more than 200 countries, resulting inannual netrevenues of$43.3 billion Based on net revenue, PepsiCo is the second largest food andbeverage business in the world. Indra Krishnamurthy Nooyi has been the chief executiveof PepsiCo since 2006. Approximately 274,000 employees are workingin PepsiCo.
Pepsi History· Pepsi was first introduced in United States, in 1893 by Caleb Bradham.· It was renamed Pepsi-Cola in 1898· In 1909, automobile race pioneer Barney Oldfield was the first celebrity toendorse Pepsi-Cola· In 1926, Pepsi received its first logo redesign sincethe original design of 1905. In 1929, the logo was changed again.· In their early stages pepsi faces many problems likebankruptcy and Pepsi’s assets were purchased by Charles Guth, the President of Loft, Inc. mission of pepsiThemission of pepsi is to be the world’s best consumer products company of foodsand beverages and provideconsumers with delicious, affordable, suitable snacks and beverages. Pepsi seek to produce financialrewards to investors as they provide opportunities for growth to theiremployees.
In everything pepsi do, they strive for honesty, objectivity andcustomer satisfaction. visionof pepsivisionof pepsi is to work for benefit of society, and a commitment to buildshareholder value and to deliver top financial performance to their shareholders and to satisfy their customers. Pricing method:During setting their price pepsifocuse on two main aspects regarding their price.? What would thedemand of their product in market? What is theprice of their competitor’product.Pepsi focuses on that the price of our product should not be toohigh or too low than the price of their competitors. Otherwise their consumersswitch the brand due to their high prices of the product.
Pepsi also took asurvey to collect the information about their product as well as their productsdemand in market. They set their price by comparing them with their competitors.Pepsi basically focuses on their quantity not on their quality. Therefore thesale of coca cola is very high as compared to the pepsiCo. Price should be setaccording to the product demand of public. Pepsi has one department i.e costand budget department which take care of the tasks related with the pricing.
PromotionIt is the most important piece ofmarketing. If you perform all other pieces and don’t do promotion then productmight fail. Awaring customer of a product or brand,generating sales, and creating brand loyalty in a way that you achieve to persuade them and let them buy yourproduct. They use these mediums to promote their products. 1. Advertisement2. Posters3. BannersPepsi also advertisetheir product by printing the logo of pepsi on shirts of international playersof Pakistani cricket team.
To promote their productpepsi gives different discounts and schemes occasionally to attract theircustomers.Pepsi also gives specialoffers on ramzan they reduce their prices as well. They also gives differentkind of offers like scratch the code under the cap and win bike or somethingwhich occurs occasionally . Pepsi has given its franchise to bottlers. Pepsi isoperating in Pakistan through these bottlers. Bottlers produce, distributes andpromotes the product. Pepsi has also launched its food chain in KFC Theyhave well groomed and employees on their counter in Super markets likeHyperstar and Metro.
They hire all famous actors and models in theiradvertisements to attract customers. SWOT analysis of Pepsi: Strengths: · Pepsi demand is more than its opponents.· Company has a very well-known name and a goodreputation. It is one of the most noticeable and famous brandsin the world in the food and beverage sector.· It has large market share than its opponents. · Pepsi target the young generation, so Pepsi has moreloyal customers. It is also known as the brand of youth.· Customers are satisfied with the price of the Pepsi.
· The environment of factory is very good.· Pepsi devotes a lot of budget on its advertising. Italways targets young generation through its ads.· Pepsi has a very huge distribution channel and it iseasily available everywhere.
Pepsi has the best supply chain networks in theworld. Its products are available allover the world.· Employees are also encouraged.
· Pepsi offers many discounts for its customers.· Pepsi is supporting sports, musical concerts, whichkeeps them in the lime light and thus increasing the brand recall.· The locationof the Pepsi plant is in Lahore within the reach of 30-45 minutes. Weakness: · Pepsi do notgive any sort of motivation or discount to its sellers.· Young customersare only target only in their promotions.· Disposablebottle’s cap is not good.· Declining ofthe demand of disposal bottle.· Pepsi tin packis not available in rural areas.
· Pepsi is notseeing many possible outlets like hotels, canteens etc. Opportunities:· Pepsi may startarriving in rural areas too.· Pepsi may alsoexpand its business in some other possible business.
· People’sinterest has increased in musical groups, cultural shows and sports have givenPepsi an opportunity to increase its sales through them. Threats:· Coca Cola isthe main opponent of the company.· At the globallevel, Pepsi has a tough competition with Coke. Coke has started its ads moresuccessfully to increase their demand and it is a very strong threat for thecompany.· Cola drinks aredangerous for the health so the consciousness among the people is increasing itis a big threat to the company. The harmful factor related with its productscan have an effect on the health conscious customers and Pepsi might lose theircustomers. BCG Matrix BCGis a four dimensional framework which show the multiple segments position, withregard to its relative market share and industry sale growth rate.
BCG matrixhas four component namely, Dogs, Cash Cows, Stars and Question mark. StarsThose segments fall into thecategory of stars, which operates and compete in high sales growth industry andhave high relative market share. Fortunately, PepsiCo has many star segments,which make sense because it is one of the world largest beverage and foodprocessing corporation. Pepsi, mountain dew and Tropicana juices comes in thissegment because all these products have high sales and high market shares. Cash CowsCash cows are considered to bethose segments which are operating in low industry sales growth rate and havehigh market share. Lays chips and Aquafina comes in cash cow segment becausethey have low sales growth and high market share DogsDogs are considered to be the uselesssegments of company.
This segment hold the category which have low relativemarket share in low sales growth industry. Pepsi max comes in such categorybecause pepsi max has low market share as well as low sales. Question MarkAccording to BCG matrix; Questionmark are those segments which, operate in high sales growth industry and havelow relative market share. Diet pepsi, Mirinda, 7UP and nimbooz comes insuch segment.