2. TABLE OF CONTENT
• INTRODUCTION
• PRODUCT LINE
• MANUFACTURING
• ENVIRONMENT FREINDLINESS
• OPERATIONS
• CHANNEL OF DISTRIBUTION
• MERCHANDISING RACKS
• TECHNOLOGICAL ADVANCEMENT
• COMPETITOR
• OPPORTUNITIES
• FUNCTIONAL EFFICIENCY
• SUMMARY
3. INTRODUCTION
Although Pepsi® Co Inc is relatively
young, founded in 1965; it has its way to
become one of the largest producers in its
three industries. With brands that are almost
100 years old, Pepsi® Co. has become a
company for the 90’s. This company spans
almost every area of the “junk food”
market, which includes products in the
beverage, snack and the fast-food restaurant
fields. Their brands and their talented staff
are their weapons of success.
5. RAW MATERIAL OF PEPSI
WATER
SPARKLING PEPSI SUGAR
SODA
FLAVORINGS
6. MANUFACTURING PROCESS
FILTERING,STERILIZING MIXING THE
CLARIFYING THE
AND DECHLORINATING INGREDIANTS
WATER
THE WATER
CARBONATING THE FILING AND
BEVERAGE PACKAGING
QUALITY CONTROL
8. PepsiCola is doing operation in the
following cities.
• Pakistan Beverages (Pvt) Ltd in Karachi &
Hyderabad.
• Sukkur Beverages (Pvt) Ltd in Sukkur.
• Shamir & Co. in Multan.
• Hyderi Beverages (Pvt) Ltd in Islamabad.
• Glass Bottles in Lahore.
• Punjab Beverages (Pvt) Ltd in Faisalabad.
• Mehran Bottles in Gujranwala.
9. SUPPLIER OF RAW MATERIAL
Suppliers provide the resources needed by the company to produce its goods and
services. The ingredients used in preparation are syrup, carbonated water, sugar and
water.
•Syrup:
Syrup is supplied by Pepsi® Cola International (PCI). It is under the agreement signed
between PCI and the bottlers.
•Carbonated Water (CO2):
Carbonated Water is manufactured locally and prepared under the
supervision of PCI, Lahore office.
•Sugar:
Sugar is produced in Pakistan by local sugar mills. Out of 32 sugar mills 6 sugar mills
are qualified (with regard to quality) for providing sugar to company.
•Water:
Water s available from two sources:
•KMC water ___either through line or through tankers.
• Sea water ____ it is filtered by the process called Reverse Osmosis System
10. CHANNELS OF DISTRIBUTION
• Direct Store Delivery
• Broker-Warehouse Distribution
• Vending and Food service
11. MERCHANDISING RACKS
Pepsi
Technology and raw
material
(Margin undisclosed)
Pakistan Beverage Ltd.
Wholesalers
(Credit Trade Price)
Retailers
Consumers
12. TECHNOLOGICAL ADVANCEMENT
• Research and Development
Pepsi uses different research method to satisfy
their customers. The company develops different
flavours and these flavours are tested on the
sample basis. If the customer likes the taste, it is
called the “Consumer Liking Taste” (CLT).
• Producing Pepsi Cans
Pakistan Beverages Pvt. Ltd. has launched Pepsi®
cans locally. In order to accomplish this
project, Pakistan Beverages Pvt. Ltd. invited the
engineers from France to install the machinery.
13. COMPETITOR
Strengths of Coke
• Global Acceptance
Coke cola share in the global market is greater
than Pepsi’s. Coke cola is the world leader in
the beverage industry.
• Financial Strength
Being a global market leader, Coke cola
financial strength is far greater than that of
Pepsi. Coke cola can employ its huge
resources in promoting its product.
14. Weaknesses of Coke
• Low market share
In Pakistan, Pepsi’s share is greater than Coke cola.
People prefer Pepsi® because of its taste.
• Weaker Distribution Network
Distribution of Coke cola is not so effective in Pakistan.
Pepsi® has an added advantage of having more trucks
for distribution than Coke cola ha
• Less Promotion
Coke cola has not been promoting aggressively in
Pakistan. Because of this less promotional
activities, Pepsi® has an edge over Coke cola.
15. Strengths of Pepsi
•Intensive Distribution Network
Pepsi’s distribution network is very effective. Pepsi® is available not only
in urban areas but in rural areas . Even in urban areas it is available at
superstores, educational institutes, pan shops, continental restaurants,
and fast food chains.
•Promotion
Pepsi is promoted at a large scale. An advertising agency called
“Interflow” shape promotional schemes for Pepsi®.
•Target Market
Pepsi is targeted towards youngsters under the age bracket of twenties.
This generation is called ‘Generation X’ and constitutes a larger portion
of our population. As a result all promotional schemes are targeted
towards them.
•Quality Standard
Consumers of Pepsi® are satisfied with its high quality. Pepsi® bottling
plants consider hygiene and cleanliness along with quality management.
16. Weaknesses of Pepsi
•Lacks Worldwide Acceptance
Globally, Pepsi does not enjoy that much acceptance as its
competitor (Coke cola) enjoy. Coke cola is the most widely
consumed drink in U.S and Europe, which gives it a
competitive edge over Pepsi®.
•Financial Assistance
As mentioned earlier Pepsi is operated under franchising
agreement. PCI just sets the rules and regulations of the
operating procedure. The bottling plant has to be financed by
the franchisee from its own resources. Unlike Pepsi, C is
operated under ownership system. C acquires the bottling
plant and finances it with its huge financial resources.
17. OPPORTUNITIES FOR PEPSI
•Natural Environment
Pakistan is located in a tropical region. Usually the climate is
hot which is conducive for beverage industry. The longer hot
period is an opportunity for Pepsi® to expand its sale through
different promotional schemes.
•Population
Increase number of individual would definitely augment the
demand for Pepsi®, thus induce the company to increase its
production, sale & profit.
•Diversification
Pepsi® can increase its product line by introducing new and
diversified products in Pakistan. This can be done either by
exercising brand extension strategy or by new brand strategy.
18. FUNCTIONAL EFFICIENCY
Marketing and Sales Manager
Area Sales Manager
Zonal sales manager
Sales Executives
Sales officers
Sales Supervisors
Salesmen
19. CROSS-FUNCTIONAL EFFICIENCY
Like most of the franchisees in Pakistan,
Pakistan Beverages Pvt. Ltd. is divided into six
major departments.
•Production Department
•Administration Department
•Finance Department
•Audit and Accounts Department
•Marketing Sales Department
•Quality Control Department
