Pepsi cola
Pepsi Cola International
Pepsi Cola Company includes in beverages industry. Pepsi Cola
international is well reputed multinational company which is doing its
business in almost every country of the world. The company is registered in
New York stock exchange U.S.A. to make a better control over the
business the company has given the manufacturing rights to different
companies. Now these companies are producing the products on the
behalf of the company by using their trademark. To maintain their goodwill
in the market the company has a strict policy while granting the
manufacturing rights Pepsi-Cola have standardized products all over the
world (e.g, same in size, shape and quality). The franchises have to follow
all the standards as given by the company. Even they have the mobile
team, which check the company after 2 or 3 months. Either company is
producing products according to the standerds given by the Pepsi Cola
international.
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Shamim & company
History:
Shemim & company was established in 1967 as a private limited company.
It started its business in 1968. Allah Nawaz Khan Tareen (Ret. DIG) got
licensee of
7-up franchise and was producing only one product, 7-up.
But in 1973, it became Pepsi Cola franchise. Now a days MD of Shamim
and Company is Allah Din Khan Tareen.
Introduction
In Pakistan, at present shemim & company is the largest production unit
out of these 11. Shamim & company covers the area of Southern Punjab
which consist of Multan, Bahawalpur, Bahwalnagar, Dera Ghazi Khan,
Sahiwal, Khenewl, Rajan Pur, Mianwali and Layyah. The company is
properly serving all these areas with quality products.
Mission Statement
“To earn profit by meeting the customers needs with quality products”.
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Departments
For effective control & to serve these areas more properly the company has
the following departments.
Production Department
This department is responsible for the production of the products according
to the requirements of the customers.
Administration & Personal Department
Administration & personal department deals with the overall matters of the
company and takes different actions for increasing the performance of the
company. This department also carries out different benefits programs.
Sales / Marketing Department
This department makes different efforts to increase the sales of the
company by sponsoring different social programs and by advertising their
products.
In marketing department, 6 regional sales manager, 19 divisional sales
managers, 15 area sales manager, 90 sales officers and supervisor.
Finance Department
It deals with the financial matters of the company. It collect the revenues
and makes different payments and maintain proper record of the financial
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performance of the company’s business to show the net result in the form
of either profit or loss.
General Manager
G. Manager of each department is responsible for the performance of his
department. To carry out his duties more efficiently he has assistant
manager in charges who help him to perform his duties successfully.
General Manager Operation
To whom report is provided by manager of administration shipping’s
manager and workshop’s manager.
G. Manager Of Technical
Shift incharges, shift chemists and lower level operating employees report
to G. Manager technical.
G. Manager Finance
Financial
accountant,
management
Accountant
and
manager
management Of information system report to G. Manager finance.
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of
Pepsi cola
In Pakistan, Shamim & Company is among of top three out of eleven, in
terms size. When frenchise cross a certain volume, plant is classified as,
“maga plant status Pepsi Cola has achieved in 2000.
Organizational structure
CEO
(Chief Executive Officer)
COO
(Chief Operating Officer)
G.M Sales
G.M Operation
Business
development
managers
6 RSM
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G.M Financial
19 DSM
15 ASM
G.M Fianance
90
Supervisor
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Objective
To maintain market leadership and to increase market sales. Pepsi Cola is
in Pakistan as compared to its competitors according to Shamim &
company we have to place our position or top whenever we make policies
leaders keep in mind that me are number one in current market position.
ProductPlanning
Product planning is systematic decision making relating to are aspects of
the development and management of a firm’s product including branding
and packaging. Each product consist of a bundle of attributes (Features,
Functions, benefits and uses) capable of exchange or use, usually a mix of
tangible and intangible forms.”
Product
“A product may be an idea , a physical entity( a good) or a service or any
combination of the three. It exists for the purpose of exchange in the
satisfaction of individual and organizational objectives”.
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Ways of product according to firm definition
There are three ways of the product according to the firm definition.
a)
Tangible product / actual product
b)
Augmented product.
c)
Generic product.
“A tangible product is a basic physical entity, service or idea. It has precise
specifications and is offered under a given description or model number”.
Features / Characteristics Of Tangible Product
Color, style, taste, size, weight, durability quality of construction and
efficiency in use one the some tangible product features.
Actual product has 5 characteristics.
 Quality level
 Features
 Design
 Brand name
 Packaging
Example Of Tangible Product
Pepsi Cola its name, parts, styling, features, packaging and other
attributes have all been combined carefully to deliver the core benefit.
Augmented Product
“It includes not only the tangible elements of a product but also the
accompanying cluster of image and service features”.
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Generic Product
“Focuses on what a product means to the customer, not the seller. It is the
broadest definition and is consistent with the marketing concept”.
Classification Of Goods
We can classify the goods into 2 classes.
1)
Consumer products
2)
Industrial products.
Consumer Products
“Consumer products are final consumer goods and services. The use of the
goods or service designates it as a consumer product”.
Category Of The Consumer Product
There are three categories of the consumer product.
1)
Convenience product.
2)
Shopping product
3)
Specialty product
4)
Unsought product
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Convenience Product
“Convenience products are purchased with the minimum effort and are
categorized as staples, impulse products, and emergency products”.
Staples
“Staples are low priced items that are routinely purchased on a regular
basic”.
Impulse Products
These products are the items that the consumer does not plan to buy on a
specific trip to a store.
Emergency Products
Emergency products are the items purchased out of urgent need.
Shopping Products
Shopping products are those products for which the consumer feel they
lack sufficient information about product alternatives and their attributes
and therefore must acquire further knowledge in order to make the
purchase decision.
Types Of Shopping Products
There are 2 types of the shopping products.
1)
Attribute based shopping products.
2)
Price based shopping products.
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Attribute Based Shopping Products
With the attribute based shopping products, consumers get the information
and then evaluated product features, warranties, performance, options and
other factors.
Price Based Shopping Products
In case of price based shopping products, consumers judge product
attributes to be similar and look around for the least expensive item.
Specially Products
Especially products are the particulars brands, stores and persons to which
consumer are loyal. Consumer is fully aware of their products and their
attributes prior to making a purchase decision. They are willing to make a
significance effort to acquire a brand desired and will pay a higher price
than competitive products, if necessary. In specially products, substitute
are not acceptable.
Unsought Product
“Unsought product that the consumer is not yet aware of or a product that
the consumer is aware of but does not want right now”.
Consumer Product
Pepsi Cola’s product is included in consumer product and came under the
category of specially product about which the consumers are fully aware
and are completely loyal with it.
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Industrial / Business Products
“Industrial products are the goods and services purchased for use in
production of other goods and services in the operation of a business, or
for resale to other consumer”.
Items included in industrial products.
 Raw material
 Fabricating material and parts
 Installations
 Accessory equipment
 Operating supplies
Raw Material
“Business goods that become part of another tangible product prior to
being processed in any way are considered raw materials”.
raw material includes
 Goods found in their natural state, such as minerals, land, and products
of the forests and seas.
 Agricultural products such as cotton, fruits, livestock and animal
products including egg and raw milk.
Fabricating Material And Parts
Business goods that become part of the finished product after having been
processed to same extent fit into the category of fabricating material and
parts.
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Installation
Manufactured products that are an organization’s major expensive and long
lived equipment are termed as installation.
Accessory Equipment
Tangible products that have substantial value and are used in an
organizations operations are called accessory equipment. This category of
business goods neither becomes an actual part of finished product nor has
a significant impact on the organizations scale of operations.
Operating Supplies
Business goods by low dollar value per unit, a short life, and aid in an
organizations operations without becoming part of the finished product are
called operating supplies.
Element Of Product Mix
 Product item
 Product line
 Product mix
Product Item
Product item is a specific model, bran, size of a product that a company
sells.
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Product line
A group of products that are closely related because they function in a
similar manner, are sold to the same customer groups, are marketed
through the same types of outlets, or fall within given price ranges.
Product Mix
A product mix is the set of all products offered for sale by a company. The
structure of a product mix has both breadth and depth.
Breadth
Breadth is measured by the number of product lines carried.
Depth
Depth of the product mix is defined by the variety of sizes, colors and
models offered within each product line.
Pepsi Cola
Beverages have four product lines with the name of Pepsi Cola Mirinda,
Team and Seven up and its product mix also consist of there four product
lines which shows the width / breadth of Pepsi Cola.
Its depth includes one product item and one product line in the form of
Pepsi Seven Up, Mrinda And Team.
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New Product Development Strategy
The development of original products, product improvements, product
modification and new brands through the firms own research and
development efforts.
The stages in the new product development.
Stages In Product Development
1)
Idea generation
2)
Idea screening
3)
Concept development and testing
4)
Marketing strategy
5)
Business analysis
6)
Product development
7)
Test marketing
8)
Commercialization
Idea Generation
New product development stars with the idea generation which is defined
as the systematic search for new product ideas. A company typically has to
generate many ideas in order to find a new goods ones.
Concept Testing
Testing new product concepts with a group of target consumer to find out if
the concepts have strong consumer appeal.
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Marketing Strategy Development
Designing an initial marketing strategy for a new product based on the
product concepts.
Business Analysis
A review of the sales, costs and profit projections for a new to find out
whether these factors satisfy the company’s objectives.
Product Development
Developing the product concept into a physical product in order to assure
that the product idea can be turned into a workable product.
Test Marketing
The stage of new product development in which the product and marketing
program are tested in more realistic and market setting.
Control Test Marketing
Several research firms keep controlled panels of stores that have agreed to
carry new products for a fee.
Simulated Test Markets
Companies can also test new products in a simulated shopping
environment. The company or research firm shows ads and promotions for
a variety of products, including the new product being tested, to a sample
of consumers.
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Commercialization
Test marketing gives management the introduction needed to make a final
decision about whether to launch the new products the companies goes
ahead with commercialization. It means introducing a new product into the
market.
Product Life Lyele Strategies
The course of a products sales and profits over its life time it involves five
distinct stages.
1)
Product development
2)
Introduction
3)
Growth
4)
Maturity
5)
Decline
Product Development
It begins when the company finds and develops a new product idea during
product development, sales are zero and the company’s investment costs
mount.
Introduction Stage
The product life cycle stage in which the new product is first distributed and
made available for purchase.
Growth Stage
The product life cycle stage in which a product’s sales start climbing
quickly.
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Maturity Stage
The stage in the product life cycle in which sales growth slows or levels off.
Decline Stage
The product life cycle stage in which a products sales decline.
With the reference of the product life cycle, they says that their product is
still at the maturity stage and will never came to the decline and they say
that they are trying to retain this product maturity level by increasing their
market share and by using the other marketing strategy tools. They claim
that they will ever remain at this maturity level.
Product Mix Strategy
1)
Positioning the product
2)
Expansion the product
3)
Alteration
4)
Contraction
5)
Trading up and trading down
Positioning The Product
Management’s ability to bring attention to a product and to differentiate it in
a favorable way from similar products goes a long way toward determining
that products revenues. Thus management needs to engage in positioning,
which means developing the image that a product projects in relation to
competitive products and to the firms other products.
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Positioning In Relation To A Competitor
For some products the best position is directly against the competition. This
strategy is especially suitable for a firm that already has a solid differential
advantage or is trying to solidify such an advantage.
Pepsi Cola beverages uses the positioning strategy which is related to the
competitor because it consider that it is market leader, and it try to present
its product quite different in taste, packaging, styles designing and quality
than its competitors such as coca cola, Rc cola etc. And it always keep an
eye on its existing as well as its new coming competitors that is double
cola.
Positioning In Relation To A Product Or Attribute
Sometimes a company’s positioning strategy entails associating its product
with the product class and attribute. Some companies try to place their
products in a desirable class such as made in USA. But Pepsi Cola does
not use such type of positioning strategy.
Positioning By Price And Quality
Certain producers and retailers are known for their high prices.
Pepsi –Cola does not to follow the price positioning strategy because its
COO (Chief Operating Officer) says that they have changed the strategy of
giving discounts because they have to changed their policies by seeing
their competitor, but Pepsi-Cola follow the quality positioning strategy.
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Product –Mix Expansion
Product mix expansion is accomplished by increasing the depth with in a
particular and the number of lines of firm offers to customers. When a
company adds a similar item to an existing product line with the same
brand name, this is a line extension.
But Pepsi- Cola neither extends its product line nor expand its
product mix. Still it has its 4-product lines that are Pepsi –Cola, Mirinda,
team and Seven-up.
Alteration Of Existing Products
Rather than developing a completely new product, management might do
well to take a fresh look at the organizations existing products. After,
improving an established product, termed product alteration can be more
profitable and less risky than developing a completely new product.
Pepsi Cola is an already established company with the big market share,
and it changes its policies to maintain the establishment of its products and
market share by keeping the eye on its competitors, strategies and policies.
Product Mix Contraction
Product mix contraction is carried out either by eliminating an entire line or
by simplifying the assortment within a line. But Pepsi Cola does not use
the product mix contraction because its all product lines have created a
strong and un-volatile able images in the consumers mind.
Trading Up And Trading Down
The product strategies of trading up and trading down involve a change in
product positioning and an expansion of product line.
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Trading up
It means adding a higher price product line to attract a broader market.
Also the seller intends that the new products prestiges will help the sale of
its existing lower price products.
Trading Down
It means adding to company’s product line. The firm expects that people
who cannot afford the original higher price product or who see it as too
expensive will buy the new lower price one. The reason is that the lower
price product carries same of the status and some of the other more
substantive benefits of the higher price item.
In Pepsi Cola there is no such type of product differentiation on the basis
of price. Price may differ due to the quantity level.
For example: The price of 250 ml bottle is Rs. 8. The price of 1liter bottle is
Rs. 30 in case of non-returnable bottle and 1.5 liter bottle’s price is Rs. 45.
Branding
An important part of product planning is branding, the procedure a firm
follows in researching, developing and implementing its brands.
As already noted, a brand is a name term design or symbol that
identifies the products of a seller or group of seller.
There are four types of brand designation.
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Brand Name
“Brand name is a word, letter, group of words or letters that can be spoken.
Pepsi-cola has introduced its product lines under the same brand name
that is PEPSI”.
Brand Mark
“Brand mark is a symbol, design, or distinctive colouring and lettering that
can not be spoken”.
Trade Characters
Trade character is a brand mark that is personified.
Trade Mark
“A trade mark is a brand–name, brand mark or trade character or
combination there of, that is given legal protection”.
So that trade mark of the Pepsi can be a symbol or the brand name ie
Pepsi.
Reason Of Branding
According to Pepsi-Cola, branding is very necessary due to following
reasons.
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 Pepsi-cola products can easily be identifiable than that of their
competitors. A customer can order a product by name instead of
description.
 Customers are assured that they are demanding a certain level of
quality product and people believe that they are getting the comparable
quality. If the same brand is recorded.
 They believe that the well branded legally protected product is directly
identified by the customers and leave the positive good image in
customer mind.
 They believe that well branded product is a well known product.
 Branding the product is necessary to build the long lasting image. In
consumer mind so as the people become brand loyal. They say that
95% of the customer are brand loyal.
 They believe that they enhance their product prestige and social visibility
through brand name. And furthermore they are enhancing this social
visibility through sales promotion techniques by highlighting the brand –
name of Pepsi.
 Due to the brand–name, Pepsi –Cola has built a good and remarkable
image in consumer mind.
So people feel less risk at the time of
purchasing the Pepsi-Cola products and towards it people show the
positive and favourable attitude.
 Even for there all products their brand name is same but they believe
that branding segmentize the markets by creating tailored image.
 Cooperation from distribution intermediaries is greater for well known
brands. A strong brand also may enable the producer to exert more
control in the distribution channel.
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 A brand may be used to enter a new product category.
 According to Pepsi-Cola through branding, it is very easy to sell out
their product –lines, because the people believe such type of legal and
quality proved symbols to reduce their purchasing, social, psychi and
price risks.
Brands Philosophy
When Pspsi Cola developing a brand strategy, needs to determine its
branding philosophy. This philosophy outlines the use of manufacturer,
dealer and in generic brands as well as the use of family or individual
branding.
Manufacturer brands (national brands)
Manufacturer brands contain the names of manufacturers and generate the
vast majority of sales revenues for most product categories. Pepsi Cola
appeal to a wide range of the consumers, who desire the low risk of the
poor product performance, good quality, routinized purchase behavior,
status and convenience shopping. According to Pepsi Cola, manufacturer
brands are well known and trusted because quality control is strictly
maintained.
Their brand names are identifiable and present distinctive
images to shoppers.
Manufacturers normally produce a number of product alternatives under
their brands. Through the manufactures brand the major marketing focus of
Pepsi Cola is to attract and retain consumers who are loyal to the firm’s
offerings and to control the marketing effort for the brands.
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Private Brands
It contains the names designated by wholesalers or retailers and account
for the significant levels of sales revenues in many product categories.
Dealers secure relatively exclusive rights for their brands and are usually
more responsible for their distribution. Private brands typically require large
total investment.
Wholesalers and retailers are able to sell their items at lower prices and still
obtain higher per-unit profits. The marketing focus of private brands is to
attract and retain the customer who are loyal to the dealer and for the
distributor / retailers to exert control over marketing plan for these brands
large wholesalers and retailers now advertise their brands extensively.
Generic Brands
Generic brand emphasize the names of the products themselves and not
manufacturer and dealers names. Generics appeal to price conscious,
careful shoppers, who perceive them as representing a very good value,
are sometimes willing to accept lower quality, and often purchase for large
families generic brands are sold one advertised and receive secondary
shelf space consumers must search out these brands. The major marketing
goal is to offer low priced, lower quality items to consumers interested in
price savings.
So Pepsi Cola / obtain the manufacturer brand instead of the generic and
private brands.
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Packaging
“Packaging is a part of product planning in which a firm researchers,
designs, and produces its packaging.”
The physical container may be a cardboard, metal, plastic or wooden box;
a cellophone, wax paper, or cloth wrapper; a glass, aluminum, or plastic jar
or can; a paper bag; styro foam; some other material; or a combination of
these products frequently have more than one physical container.
But packaging depends upon the product nature as well as structure
means either it is liquid, semi liquid or solid.
In case of Pepsi Cola, they take the packaging designs by considering
what is better for company and what is better or convenient for the
transportation.
For protecting the syrup, Pepsi Cola uses the glass as well as plastic
bottles of different quantity.
Packages of Pepsi Cola
1)
250 ml glass returnable bottle.
2)
175 ml glass returnable bottle.
3)
1 L glass returnable bottle.
4)
1/2 L Pet non returnable bottle
5)
1 L Pet and non returnable bottle
6)
250 ml glass non returnable bottle
7)
Post mix (fresh fountain).
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From fresh fountain, we can buy the fresh soda of different flavour such as
Pepsi Cola, team, Miranda and seven-up.
A year ago, Pepsi Cola has introduces the tray packaging which was not
useful for the company and retailers, because this packaging create the
leakaging problem during the transportation and the shopkeeper do not feel
convenience in placing of such type of packs. In their shops so now the
Pepsi Cola has introduced the new packaging design. Pepsi Cola has
packed its plastic bottles in cardboard cartons to save such leakaging, due
to this packaging its factory cost has been increased.
Basic Packaging Function
According to coca cola packaging of the product should perform such type
of functions.
 Packaging must facilitate product usage. Product disbursement may be
eased through multiple packaging Pepsi Cola offer the packages that
are reuse able one a product is depleted. For example, in case of 1 L
and 1.5L plastic non returnable bottle, people can use these bottles after
depleting the product / liquid.
 Through packaging the company and its brand-name are identified.
Pepsi-Cola consider that packaging is an important method of
communication with the consumer packaging also presents a company
and product image and display the product as well.
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 At the time of packaging the product, Pepsi-Cola mainly consider the
needs of the wholesales and retailers in its distribution channel, that
makes a product easy to ship, handle and store.
At the time of
packaging Pepsi-cola should also thinks the product that packaging
should by durable which allow their contents to have a reasonable shelf
life.
Factors Considered In Packaging Decision
Pepsi-Cola also consider following factors at the time of the taking decision
about the product –packaging.
 Pepsi –cola personnel think that package design affects the image and
quality of the product and company. Pepsi-cola consider that the colour,
shape and material all influenced the consumer perception about the
firm and its product.
 In family packaging, Pepsi-cola uses a common element on each
package, in a product line.
 Pespi-Cola as the international firm uses the standardized packaging
which increase the world –wide recognition. So Pepsi-cola
utilize
standard packages whenever possible.
 Pepsi Cola uses glass, plastic, cardboard, polythene material to
preserve its product.
It uses the glass and plastic bottles to preserve the liquid, cardboard
material for protect the plastic bottle in cartons and polythene material
to place the bottles into the tray- packing.
 Pepsi Cola also consider the package features, which provide it the
competitive advantage. We know that Pepsi Cola is a market leader so
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it keep the eyes on each and every competitive advantage. For example
now it has introduced the cardboard bottle packing.
 Pepsi- cola also give importance to the size, colour, and shape of its
packages. It has introduced the medium-sized carboard boxes with the
different traditional colours such as for Pepsi-Cola it us the Blue and red
colour. For Mirinda it uses orange and green colour and for team and
seven –up it uses the green colour packages.
 As Pepsi-cola involve in Beverages business, so every bottle has its
individual existence without wrapping.
 As Pepsi-cola has its fix rates of bottles so it does not think that there is
any need of preprinted price. About UPC (Universal Product Code),
Pepsi-Cola thinks that as Pepsi-cola is franchi and it has to sell its
products within its surrounding areas so there is no importance of UPC
for its. Main reason of not using “UPC” is that, it is not in list of exporters.
Price
Price is the amount f money and / or other items with utility needed to
acquire a product price is significant in our economy, in the consumer’s
mind, and in an individual firm value is also important as a component of
value. Value is the ratio of perceived benefits to price and any other
incurred costs. Good value indicates that a particular product has the kinds
and amount of potential benefits such as quality, image and purchase
convenience consumers expect at a particular price level. A product’s price
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is a major determinant of the market demand for it. Price affects a firm’s
competitive position and its market share. To be useful, the pricing
objective management selects must be compatible with the over all goals
set by the firm the goals for its marketing program.
There are 3 pricing objectives:
Profit oriented:
 To achieve a target return.
 To maximize profit.
Sales oriented
 To increase sale volume
 To maintain or increase market share
Status oriented
 To stabilize prices
 To meet competition
Pepsi Cola use status quo-oriented pricing objective Pepsi Cola intended
simply to maintain the firm’s current situation that is, the status quo.
Pepsi Cola adopt status quo pricing goals to avoid price competition is not
necessarily passive in its marketing. Quite the contrary typically like other
status quo-pricing objective companies, Pepsi Cola also compete
aggressively using other marketing mix elements. Product, distribution, and
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especially promotion or simply Pepsi Cola use approach that is non-price
competition.
Price stabilization often is the goal in industries where products are highly
standardized and in beverage industry, products are standardized so
beverage industry try to attempt price stabilization.
Place
Place planning involves movement and ownership in a channel of
distribution, which consists of channel members. Middlemen are channel
intermediates distribution arrangements very widely. The choice of a
channel is very widely. The choice of a channel is quite important.
Channel of distribution, which is comprised of all the organizations or
people involved in the distribution process those participating in the
distribution process are known as channel members and may include
manufacturers,
service
providers,
wholesalers,
retailers,
retailers,
marketing specialists, and / or consumers. When the term middlemen is
used, it refers to wholesalers, retailers, and marketing specialist (such as
transportation firms) that are acting in their roles as intermediaries between
manufactures / service providers and their consumers. A middleman is an
independent business concern that operates as a link between producers
and ultimate consumers or industrial users. Middlemen can perform
channel functions and reduce costs, provide expertise, open markets and
lower risks. The sorting process coordinates the goals of manufacturers
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and consumers. Channel choice depends on consumers, the company, the
product, competition, existing channels and legalities. “Distributions
management of the flow of products from manufacturer our customers and
from warehouse to retailers, involving the storage and transportation of
products”. A successful organization is that which can distribute its
products to their customers at the right time and the right place. Shamim &
company has efficient distribution system because it has divided the whole
area into different regions and have different distributors for performing
their activities in these regions.
All the activities related to distribution and sales is computerized and whole
computer section ahs been made for this purpose. The process for
distribution is given below:
First of all distributors require filled bottles and came up with empty bottles.
Slip is made for this purpose on which no. of empty bottle, date, name of
distributor etc. are recorded. Distributors go to the computer section where
all the credit and debt entries are checked. Computer operator checks that
how much credit will be given to the distributors according to company
policy. After this distributor take the slip and go to warehouse for supply of
filled bottles.
There are some salesmen at each distribution center. Certain area has
been assigned to each salesmen. The concerned sales-man fulfills the
orders of his customer’s e.g. the retailers who purchase the bottles from
them. To meet the urgent demand certain level of safety stock is also kept
at each distribution center especially in their peak season and on the
special days such as Eid days.
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In a direct channel the manufacturer performs all functions. An indirect
channel uses independents using exclusive, selective or intensive
distribution depends on objectives, middlemen, customers and marketing.
Pepsi Cola use intensive distribution as it widespread market coverage,
channel acceptance volume sales and profits middlemen of Pepsi Cola,
many in numbers, all types of outlets final customers of Pepsi Cola many
in numbers, connivance, oriented. Pepsi Cola’s marketing emphasis or
mass advertising, nearby location, items in stock. Wholesaling is the buying
/ handling of merchandise and its resale to organizational buyers
wholesalers provide functions ranging from distribution to risk taking.
Wholesalers have obligations to their suppliers and to their customers.
Shamim & company has 140 distributors in whole Multan franchise.
Retailing, the last stage in w channel, includes the activities in selling to
final consumes.
Manufacturers, importers, and wholesalers act as retailers when they sell
products directly to the final consumers. Retailing is an important aspect of
distribution because of its impact on the economy, its functions in the
distribution channel, and its relationships with suppliers.
In this franchise of Pepsi cola, Shamim & Company, has no. of retailers
more then 30,000. Management of shamim and company know this thing
that retailers are more cost conscious. Due to this reason, this company
offers to retailers, wristwatch on buying of ten crates and on purchasing two
crates, the company give them coupons. For waking their performance
effective, the management also offered discounts to them.
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Promotion
Promotion is any form of communication used to uniform, persuade and / or
remind people about an organization’s or individual’s goods, services,
image ideas, community involvement, or impact on society.
Promotion planning is a systematic decision making relating to all aspects
of an organizations or individual’s communication efforts.
The Importance Of Promotion
Promotion is a vital part of marketing. “Word of mouth communication”
occurs when people state opinions to others. Without sustained positive
word of mouth it is difficult for a company to succeed.
For Pepsi Cola, people have sustained positive word of mouth.
Pepsi Cola also believed on the value of promotion as:
 Establishes an image such as prestige, discount or innovative for the
company and its goods and services.
 Communicates features of goods and services.
 It creates awareness for new goods and services.
 It can reposition the images or uses of faltering goods and services.
 It generates enthusiasm from channel members.
 It explains where goods and services can be purchased.
 It can persuade consumers to trade up from one good or service to a
more expensive one.
 It alerts consumers to sales.
 It justified the prices of goods and services.
 It reinforces loyal consumers.
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Types Of Promotion
Four types of promotion are:
 Advertising
 Publicity
 Personal selling
 Sales promotion
Pepsi Cola applied all these four types of promotion.
Advertising
It is paid non-personal communication regarding goods, services,
organizations, people, places and ideas that in transmitted through various
media by business firms, government and other nonprofit organizations and
individuals who are in some way identified in the advertising message as
the sponsor. The message in generally controlled by the sponsor.
Pepsi Cola also use these following advertising medium, daily newspaper,
weekly newspaper commercial television, cable television, magazines,
Radio business publication, and transmitters.
The basic advertising themes are the product, consumer, and / or
institutional appeals. Pepsi Cola use “The Consumer Related Theme”, in
which good or service uses explained cost benefits of good or service
shown, emphasis on how good or service helps consumer, threatening
situation & incentives given to encourage purchases.
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Publicity
It is non personal communication regarding goods, services, organizations
people, places and ideas that is transmitted through various media but not
paid for by an identified sponsor. The message is generally controlled by
the media.
Pepsi Cola also promote its products by using this tool, that is publicity, of
promotions.
Personal Selling
Personal selling uses one to one interactions with buyers. Sales promotion
includes paid supplemental promotion efforts.
Selling in stressed when orders are large, consumers are concentrated
items are expensive, and service is required. Selling has limited audience
high costs per customers, and a poor image. A manager must oversee
personal selling functions.
Sales person compensation can take one of three general formats: Straight
salary, straight commission or a combination of salary and commission or
bonus.
Under a “straight salary plan”, a salesperson is paid a flat amount per hour
week month or year. The advent ages are that both selling and non-selling
tasks are specified and controlled, there is security for sales people, and
expenses are known in advance. The disadvantages are the Low sales
force incentive to increase sales expenses not tied to productivity, and
continuing costs even if there are low sales order takers are usually paid
straight salaries.
With a straight commission plan a sales purser’s earnings are directly
related to sales, profits or some other type of performance. The
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Pepsi cola
commission rate is often keyed to a quota, which is productivity standard
for the salesperson. A quota can be based on total sales, total profit,
customers serviced, products sold or another criterion. The advantages of
a strength commission plan are the motivated sales people no fixed sales
person compensation costs and expenses tied to productivity. The
disadvantages are the lack of control over non-selling tasks performed the
instability of a firm’s dollar expenses and employer earnings, and the risk to
employees.
To obtain the advantages of both salary and commission oriented methods,
many firms use elements of each is a “combination compensation plan”.
Such plans balance company control, flexibility, and employee incentives.
Sometimes bemuses are stipulated for outstanding individual or company
performance.
Pepsi cola use combination compensation plan.
Pepsi cola’s supervision encompasses four aspects of sales management
motivating sales personal, measuring performance, completing non selling
tasks and initialing behaviour changes.
Sales Promotion
Sales promotion efforts are greater now then ever before. Many firms are
looking for any competitive edge they can get and this increasingly involves
some kind of sales promotion. The various from of sales promotion are non
more acceptable to firms and consumer then in the past.
Today more consumers look for sales promotions before buying, and
channel members are putting more pressure on manufactures for
promotions. During economic downturns, even more consumers are
interested in value oriented sales promotion. Because of rising costs,
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Pepsi cola
advertising and personal selling have become more expensive in relation to
sale promotion.
Sales promotion lures customers, maintains loyalty, creates excitement, is
often keyed to patronage and appeals to channel members. Sales
promotion may hurt image, cause consumers to wait for special offers, and
shift the focus from the product Pepsi cola offer for consumer “the crown
schemes”. Is it has been given Mercedes to one consumer and before
Pepsi Cola up till now not other its competitors did propose such big offer.
Investment by Pepsi Cola in market is very high.
For retailers, the company use tools of trade and has been provided
refrigerator to 15,000 shops so that they exclusively sell Pepsi brand. This
company has also provided 10,000 litter racks to shops, 1000 bottle racks
to shops 20,000 shops signage (boards etc) 5,000 ice chest in rural areas.
The company also provides cash on credit Rs. 1000 to its financially
needed shops.
Some recently offerings by the Shamim & Company to promote its products
to consumers, as sales promotion by shell and Pepsi cola on purchasing of
twenty litter “Super Petrol”, one litter Pepsi bottle will be free. On Eid event,
in holiday inn, 1.5 litter Pepsi and one cake has been given to each
consumer. Pepsi cola also provide such offers as Dubai’s ticket, price
discount as in holy Ramzan month, sale Rs. 5. on 1.5 litter. In Abdullah
center, Allahdin, in Tusso shop, help in shop board. Shamim & company
don’t want to leave aggressive policies against its competitors in which
main competitor is coca cola and in others one Rc. cola, double cola local
drinks, and to promote its products.
On the shop board of Tusso, company has to bear cost more then 200000
to maximum display of product, company also investing more and more so
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that it can compete with competitors. Due to availability of fresh fountain
machines, the company also promoting its products in various areas due to
these sales promotion, they have increased their sales as compared to last
year.
Market segmentation & target market
Dividing a market into distinct groups of buyers with different needs,
characteristics, or behaviour who might require separate products or
marketing mixes is called market segmentation.
Pepsi cola segments its products as for people of having different tastes as
for example, team, Pepsi, Miranda and 7-up. Pepsi cola is offering these
products so that different needs of consumers fulfill markets consist of
buyers, and buyers differ in one or more ways.
Levels of market segmentation
Mass marketing
In which mass producing, mass distributing, and mass promoting about the
same product in about the same way to all consumers.
Segment marketing
In which isolating broad segments that make up a market and adopting the
marketing to match the needs of one or more segments.
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Niche marketing
Focusing on sub-segments or niches with distractive trails that may seek a
special combination of benefits.
Micro marketing
The practice of tailoring products and marketing programs to suit the tasks
of specific individuals and location include local marketing and individual
marketing.
a)
Local Marketing: Tailoring brands and promotion to the needs
and wants of local customer groups
b)
Individual marketing: Tailoring products and marketing programs
to the needs and preferences of individual customers also labeled
“markets-of-one marketing” and “one-to-one marketing”.
Pepsi cola apply segment marketing level of market segmentation.
Target market is a set of buyers sharing common needs or characteristics
that the company decides to service. According to them, from seven to
eight years, new generation is their target market.
But as consumers perceived that for their each product, target market is
different, for Miranda, children are their target market. For 7-up, usually
patients use this product. For Team, Pepsi new generation is their target
market.
Product position
The way the product is defined by consumers on important attributes the
place the product occupies in consumer’s mind relative to competing
products. Consumers considered Pepsi cola as on top, no 1 position. 95%
people are brand loyal of Pepsi cola. To maintain its position the
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management of Pepsi cola use management of Pepsi cola use aggressive
polices to maintain its position.
Marketing Environment
The
factors
and
forces
outside
marketing
that
affect
marketing
management’s ability to develop and maintain successful transactions with
its target customers. The marketing environment offers both opportunities
and threats.
So by Pepsi Cola knows the vital importance of constantly watching and
adapting to the changing environment.
Pepsi Colas marketers are responsible for identifying the important
changes in the environment. Managers also feel the need of observing the
outside environment.
Pepsi Colas marketers use the 2 discipline methods for sacking the
environmental changes.
 Marketing intelligence
 Marketing research.
So Pepsi Cola uses the above disciplined methods for collecting the
intonations about the marketing environment marketers also spend time in
the customer and competitor environment.
Pepsi cola’s environment is the combination of 2 major environments.
1)
Micro environment
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Pepsi cola
2)
Macro environment.
Micro environment
The forces close to the company that affects the ability to serve its
customers the company, suppliers, marketing channel firms, customer
markets, competitors and publics.
The company
In designing the marketing plans, Pepsi cola’s marketing management
takes other company groups such as top management, finance, research
and development, purchasing, manufacturing and accounting groups into
accounts. In this top management sets the company’s ,mission objectives,
broad strategies and policies. Marketing managers make the decisions
within the planes made by the top management and marketing plans must
be approved by the top management before they can be implemented.
Suppliers.
Suppliers provide the resources needed by the Pepsi-Cola to produce
the beverages so suppliers developments can seriously affect marketing.
So marketing managers of Pepsi-Cola watches the availability supply
shortages or delays, labour strikes and other events can cost sales in the
short run and damage customer satisfaction in longer run.
Raw material of Shamim and company is consist of concentrate,
sugar, empty bottles, ammonia, dioxide, caustic soda and other chemicals
used in production process and lab so for the selection of supplier they
contact different suppliers of the quotations through phones, faxes etc or
some times through daily news paper company has different suppliers for
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the supply of sugar and different chemical bottles etc which are located
near the compan7 such as Shaikhupura, Jhang etc. they rely on cooperative relationship rather then competitive rations.
So the supply of raw material should be in time due to cooperative
relationship.
Customers
Pepsi cola the need to study its customer markets closely. Consumer
markets consist of individuals and households that buy the goods and
services for personal consumption.
Business markets buy the goods and services for further processing or for
use in their production process. Whereas the reseller markets buy goods
and services to resell at a profit. Govt. markets are made up of government
agencies that buy goods and services to produce public services or transfer
the goods and service to other who need them at the end, international
markets consist of there buyers in other countries, including consumers,
producers, resellers and government.
Here shamim & Company has the link with the customer and resellers
market from children to people of every age old age use Pepsi cola
products.
Competitor
No single competitor marketing strategy is best for all companies. Shamim
& company consider its own size and industry position and compares their
with its competitor.
Pepsi cola (Shamim & Company) with the dominant positions in can
industry uses those strategies that the smaller firm can not afford.
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Publics
Shamim & Company marketing environment also include the various
public. A public is any group that has an actual or potential interest in or
impact on an organizations ability to achieve its objective.
i)
Financial publics
ii)
Media publics
iii)
Govt. publics
iv)
Citizen action public
v)
Local action public
vi)
General action public
vii)
Internal action public
Shamim & company can prepare marketing plans for there major publics as
well as for its customer markets.
Macro Environment Of Shamim & Company
“The large societal forces that affect the micro environment is called as
macro environment. These forces may by the demographics, economic,
natural, technological, political and cultural forces”.
Demo graphic environment
It is the study of human population in term of size, density, locations, age,
gender,
race,
occupation
and
other
statistics.
The
demographic
environment is of major interest to the marketers because it involves
people, and people make up marketers.
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Economic environment
Another important factor for shamim & company is economic factor. The
economic environment consist of factors that affect consumer purchasing
power and spending patterns. Same countries have subsistence
economies. In such economy, they consumer most of the industrial output.
For the containment of its market share, shamim & company also consider
the economic factor.
Natural environment
Natural resources that are needed as inputs by marketers or that are
affected by marketing activities. Water is the integral part of its shamim &
company products which the management obtain from the natural
environment.
Technological environment
Technological environment forces that create new technologies creating
new product and market opportunities shamim & company seek such
eppertu8nities to sustain its market leadership and it always keep an eye
on such environmental changes.
Political environment
Lows, government agencies and pressure groups that influence and limit
various organizations and individuals in a give society.
Cultural environment
Cultural change is made up of institutions and other forces that affect a
society basic values, perceptions, preferences and behaviours. People
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Pepsi cola
grow up in a particular society that shape their basic beliefs and values.
They absorb a world view that defines their relationships with others.
Quality
Quality control procedure / system is provided by Pepsi to Shamim &
company which is followed and monitored by Pepsi. After 3 minutes they
check the quality of bottles on each line. Pepsi Cola (shamim & Co)
management said that they have not get the ISO certification because they
do not export their products, even the product has already built the positive
and good image in consumers mind.
Competition
In competition Pepsi cola (shamim & company) is so aggressive. They
want to kill their competitor shamim & company feels that its competitor is
like out.
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SWOT Analysis
Strength
Pepsi Cola consider that its brand is its strength, according to it, its brand
is like iron. Another strength of Pepsi Cola is its best sale’s team, its best
management, best distribution channel and there are 140 distributors in
each and every outlet. Pepsi Cola thinks that its strong market position and
product presentation are also in the favour of its strength.
Opportunity
For Pepsi Cola, there are many opportunities in the market. In Mexico, the
percapita consumption of bottles is 90 per person per year. If the
availability is close to the customer then it indicates its opportunity and
Pepsi Cola company is trying to achieve this opportunity.
Weakness
Pepsi Cola management thinks that if it fails to achieve this opportunity
then it will show its weakness.
Threat
They have to make the new policies to retain in the market to save itself
from its competitor.
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THE END
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