Project Evaluation

Report
Organization: Pepsi
Course: Strategic Management

Course: Strategic Management

Submitted to: Mr.Naeem Bhojani

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

INTRODUCTION TO THE COMPANY:

Pepsi International is a world

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

PEPSI COLA PAKISTAN:

Pepsi has proven itself to be the No.1 soft
drink in Pakistan.
Now days Pepsi is recognized as Pakistans
National drink.
In 1971, first plant of Pepsi was constructed
in Multan.
Pepsi is consumed by all age groups.
Consumers survey tells that Pepsi is the
most wanted soft drink of Pakistan.

MISSION STATEMENT
To be the world's premier consumer
Products Company focused on
convenient foods and beverages. We
seek to produce healthy financial rewards
to investors as we provide opportunities
for growth and enrichment to our
employees, our business partners and
the communities in which we operate.
And in everything we do, we strive for
honesty, fairness and integrity.

VISION STATEMENT:

To be the world's best beverage

company. Being the best means
providing outstanding quality,
service, cleanliness and value, so
that their every customer is
contented and happy with their
products.

HIERARCHY:

SWOT ANALYSIS 0FPEPSICO.

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

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

STRATEGIES
PRODUCT STRATEGY:
Pepsi Company will launch new product
extension in the market due to
consumers psychological factors.
Thus Pepsi Cola satisfies the
consumers needs efficiently by
launching a desired product.
Pepsi is a responsible corporate brand
of Pakistan and have contributed a lot
to the economy.

PRICE STRATEGY:
Price should not be low nor high.
Price should be set according to the
product demand of public.
Price should be that which gives the
company maximum revenue.
Price should not be too low or too high
than the price competitor is charging from
their customers otherwise nobody will
buy your product.

PROMOTION STRATEGY:
Pepsi Cola Company has become official
sponsor of Pakistan cricket.
Pepsi has launched a number of prize schemes
to attract new customers.
DISTRIBUTION STRATEGY:
Pepsi has given franchises in all over the
Pakistan for the distribution.
Pepsi has 12 different units in different areas of
Pakistan.
There are 62 agencies distributing Pepsi only
around Lahore in their respective allocated sub
zones

COMPETITOR OF PEPSI
COCACOLA
SWOT ANALYSIS

Strengths
Worlds largest
market share in
beverage
Strong marketing
and advertising
Customer loyalty
Corporate Social
Responsibility

Weaknesses

Significant focus on
carbonated drinks.
Undiversified product
portfolio
High debt level due
to acquisitions
Negative publicity

Opportunities
Bottled water
consumption
growth.
Increasing demand
for healthy food
and beverages.
Growth through
acquisitions.

Threats
Changes in
consumer
tastes.
Water scarcity.
Saturated
carbonated
drinks market.

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

Comparison of Pepsi and Beverage industry ratios

Ratios

PepsiCo

Food & Beverage industry

Current Ratio

1.44

1.94

Acid Test Ratio

1.14

0.69

Operating Profit Margin

18.61%

15.19%

Debt Ratio

56.23%

67%

Return on Common
Equity

35.36%

32%

Times Interest Earned

20.26%

27.46%

GAP ANALYSIS:
Gap analysis between Coke & Pepsi
Market Share:
Coke is considered to be the market leader on
international basis.
Pepsi is non-alcoholic:
The independent outside lab in Chicago area has
found the following amount of alcohol in Coca Cola:
The alcohol level in Coke was 0.0059 or 59 PPM
The Pepsi has showed less than 0.001% or less than
10 PPM (Instrument cannot detect less than 0.001%
it means zero results.

Pepsi has deeper market penetration:

PepsiCo has a number of products in the Food

segment like:
Lays
Quaker
Mountain Dew & 7up
Aquafina
Coke Marketing usually focuses on:
Society and Special occasions.
Pepsi Marketing focuses on:
Cricket,Youth,Special occasions etc

Suggested Gaps that should be targeted by

Pepsi:

Improve Pepsis efficiency in asset

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