A brief history of PepsiCo
PepsiCo was designed in 1965 with the unification of Pepsi-Cola Company and Frito-Lay, Inc.
At that point, Pepsi-Cola Corporation was manufacturing Pepsi-Cola, Diet Pepsi, and Mountain
Dew. Frito-Lay’s products encompassed Fritos corn chips, Lay’s potato chips, Cheetos cheese
flavored snacks, Ruffles potato chips, and Rold Gold pretzels. PepsiCo raised bigger with the
1998 purchase of Tropicana and the 2001 blend with Quaker Oats. The mixture of these
businesses made PepsiCo a solid diversified user staples firm.
Overview of PepsiCo’s food business
PepsiCo Inc. is a foremost food and beverage firm that manufactures and allocates its goods in
more than 200 states. Food products that PepsiCo manufactures include chips, flavored snacks,
cereals, rice, pasta, and dairy-based products. The firm’s beverage product assortment includes
carbonated soft drinks, juices, ready-to-drink tea and coffee, sports drinks, and bottled water.
Headquartered in Purchase, New York, the firm services around 274,000 people global.
PepsiCo possesses nine of the 40 major packaged goods symbols in the United nations. The
company holds several brands, and 22 of them, including Pepsi, Lays, and Gatorade, generate
more than $1 billion each in returns.
Pepsi Cola in Pakistan
Pepsi-Cola is one of the best soft drink in the world. The company has functioned continuously
for over 40 years’ contribution a range of quality products Pepsi, Diet Pepsi, Miranda, 7UP,
Diet 7UP, Mountain Dew.
Experts believe Pakistan to be an extremely growing possible market as per capita drinking
there is as low as 14 bottles per year.
Pepsi is very prevalent in Pakistan and it grips about 70% in the soft-drink market. Pepsi Cola
Worldwide, a extraordinary name in the cola business is successively its business in Pakistan
through altered distributors
These distributors are:
1. Riaz Bottler Lahore
2. Pakistan Beverage Karachi
3. Punjab Beverage Faisalabad
4. Naubahar Bottler Gujranwala
5. Haidari Beverages Islamabad
6. Northern Bottlers Peshawar
7. Sakhar Beverages
Organizational Structure:
Nature of Business:
Pepsi is a FMCGS (Fast Moving Consuming Goods) produced in greater part. Pepsi is
consumed regularly that’s why Plants work continuously 24 hours.
Type of Ownership:
Ownership of Pepsi is franchise in Pakistan, because Mother Company of Pepsi is situated in
USA. In Pakistan Pepsi is employed as a franchiser. There are seven franchisers who operate
Pepsi Co in different cities of Pakistan include
1. Riaz Bottler Lahore
2. Pakistan Beverage Karachi
3. Punjab Beverage Faisalabad
4. Naubahar Bottler Gujranwala
5. Haidri Beverages Islamabad
6. Northern Bottlers Peshawar
7. Sakhar Beverages
Key Players of Pepsi:
Pepsi worldwide is working in Pakistan with just 18 employees of its possess which are
monitoring and facilitating its bottlers. The key actor who is directing the entire system of Pepsi
Beverages in Pakistan is the Provincial Head. Under the management of Provincial Head there
is a State Head who is assisting the other main Four Designations:

Franchise Directors

Marketing Director

Operations Director

Chief Finance Officer
Regional Head:
Regional head is accountable for all the actions which are taking place in Pakistan under any
other head of department. Regional Head willingly reports to the head office located in
America.
Country Manager:
Country Manager is monitoring the other four division heads. He looks after and cares them in
applying the Pepsi International strategies, policies and rules. At the end he is answerable to
report the Regional Head
Franchise Director:
To look after and to provide the ethical and concrete support Franchise Director usages two
other Designations which are Franchise Manager and the other one is Sales Development
Manager. Any probe from any of the bottle can be resolved through these two designations.
Marketing Director:
Brand Manager of colas, Brand Manager of Flavors & Brand Manager Aquafina work to
support the Marketing Director. This department is responsible to promote and advertise the
products in the country. No promotion and advertisements can be done by the bottler itself.
Operation Director:
All the activities which take place under the administration of operation head are supervised
supported and controlled by the Operation Director with his two other subordinates i.e.
Operational mangers.
Chief Finance Officer:
All the activities like cost evaluation, budgeting, financial analysis and controlling the taxing
system etc. are performed under this department with the support of Planning manager,
Controller and Business Analysis Manager. Chief Finance Officer is directly reports to the
Country Head.
Mission/Goals/Objectives
Vision:
To be the premier convenient food and beverages company with brands that are known and
respected in every corner of the world.
Mission:
We aspire to make PepsiCo the world’s premier consumer Products Company, focused on
convenient foods and beverages. We seek to produce healthy financial rewards for 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 to act with
honesty, openness, fairness and integrity.
Objective:
The major objective of the company is to produce and supply highest quality products, which
confirms to both the national and international quality stands. The company is committed to
provide maximum level of customer satisfaction.
Our Values:

Passion for Growth:
We seek to bestow 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.

Uncompromising Principles and Pride in Doing Things the Right Way:
We strive for honesty, accuracy, fairness and integrity in everything we do. The fact lies in
sustainable growth achieved with trust.

Laser Focus On Results:
This company needs people with an insatiable appetite for accomplishment and results.

Collaboration Is Critical:
If we are going to win over the long haul, we have to win as a team.

Inclusion Is More Than a Fairness Issue; It’s A Core Business Imperative:
Our ability to operate effectively in a global marketplace is driven by our inclusive mindset
and practices

Innovation Driven Growth:
Fresh perspectives and creative solutions that add value will fuel our upward trajectory.

Operational Excellence:
Nothing can replace a deep understanding of business principles and a commitment to
implementation.
Strategic External Audit
STEPLE ANALYSIS:
Social Analysis:
Pepsi is highly committed to welfare of humanity and social wellbeing and contributes to its
cause by donating handsome amounts to key organizations like;

LUMS 10 million

Shaukat Khanum memorial Hospital 10 million to patient diagnoses for free of cost

Care Foundation 5 million.

And other NGOs

Pepsi donated a large sum for earthquake victims’ relief in October 8, 2005, Pepsi contribute
U.S $2 million (Rupees 120 million) to assist victims of earthquake in Pakistan.
Technological Analysis:

Fast production line.

Less input required from humans

Automated Plant produces 110 bottles washing to filling in 1 min.

Main Plant location (which mixes the concentrate with water and send it to its franchise in
seal pack drums)

110% standardized fulfillment
Economical Analysis:

As the main ingredient (concentrate) required making the beverage is imported from main
office in America, frequent changes in the Dollar price can affect the company economically.

As the company is bound to the agreement with government, its keeping the price of Pepsi
(250ml) at Rs 12, while according to the high cost of production, price should be Rs. 16.
Political Analysis:

Riaz bottler is one of the franchise owners with remarkable political influence in his territory
and at times he tries to be abstinent from the company regulations and policies; this directly
affects the company in terms of market share, profits and others.

Government policies changes relating beverages industry due to instability in political
factors.
Legislation Analysis:

If the government changes the prices of Beverage industry, then company pass on 30%40%of the changed prices to the consumer.
Environmental Analysis:

If the International Standards change rapidly then it can affect the company internally and
externally because the Pepsi is always ready to have updated fulfillment of international
standards.

Company claims that produces no Wastage, but any negligence can badly affect the
environment.

Use wastage in recycle process (glass bottles

Non-recyclable plastic bottles are a source of environmental pollution.
PORTER’S 5 FORCES MODEL:
Bargaining power of customers:
Bargaining power of customer is low because of fixed pricing of beverages of Pepsi cola in
market. Company settled down the prices according to the government polices so customer
can’t bargain on it. If the company increases or decreases the prices of their products the
customers have to purchase on that prices without any bargain.
Bargaining power of supplier:
There are two situations in bargaining power of suppliers, company having two major suppliers
and their bargaining power of both suppliers are different like: Their main supplier of
concentrate is US and the bargaining power in this case is higher because the Pepsi Company
has to purchase the concentrate on the price offered by the supplier.
In other case bargaining power of supplier is low the company get the plastic and glass bottles
for filling from GHANI glass and the company get the material from the supplier on that price
on which the company wants to purchase.
Rivalry among competing firms:
Rivalry among the competing firms is high because their main competitor is Coca-Cola. When
the coca cola launch or introduce new products the Pepsi use the defender and reactor
strategies for strong competition.
Threat of new entrants:
Potential entry of new competitor is easy but threat from new entrant is low because no one
can reach on the competition of Pepsi cola as well as company have strong market share that
is 72%, strong brand name, strong distribution a huge setup in Pakistan and no one can easily
achieve this.
Threat of substitute products:
Pepsi has many substitute products that create the high threat for company like juices, flavored
milk and energy drinks in the market. Now a day’s people are switching on non-carbonated
drinks and that is the big threat for Pepsi cola.
BCG Matrix

Pepsi lies in stars (maturity) due to high market share that is 72% in Pakistan and high
industry growth rate. With the passage of time they are capturing more market share by
enhancing their product line.

They are in stars because of one main reason that is PepsiCo is financially strong. Their
brand name is well known all over the world and have the strong positive brand image in the
mind of customer.

Pepsi is convenient product where ever you go you can find each brand of Pepsi cola.

The main advantage of Pepsi cola for lying in star is that they are targeting every type of
customer and these customers are increasing market share for Pepsi cola.
Pepsi SWOT Analysis
Strength:

Pepsi itself is a strong brand name which is strength for the company.

Pepsi has a broader product line and exceptional reputation.

Strong distribution system all over Pakistan.

Product is very convenient for all type of customers

Record revenues and increasing market share.

Financially very strong.

Existing customer loyalty is high with Pepsi.
Weakness:

Company is unable to control the distribution

TQM (Total Quality Management) is not properly implemented in production of Pepsi.
Opportunity:

Non-carbonated drinks are the fastest-growing part of the industry, so they must launch more
such products. Pepsi co must also enter into juice and non-carbonated drinks industry.

Install vending machines in different public places to promote product and brand name.

There are increasing trend towards healthy food

Penetrating marketing would motivate considerable sales growth

Contract with cellular companies as a payment mode to use vending machine in a fast and
efficient manner.
Threats:

Coca-Cola is the main direct competitor of Pepsi. It had always been a big threat for the
company.

Local brands are also the threat for Pepsi.

Illegal in house production of beverages using Pepsi brand.

Rapidly changing life style and taste, which may divert people from carbonated drink to noncarbonated drinks.

Instability and fluctuation in the prices of dollar regularly.

Movement against Pepsi by the extremists e.g. “Be Pakistani and Buy Pakistani”

Security condition of the country is not satisfactory.

Increasing tax and inflation rates.

Changes in government policies and regulations regarding beverages industry.
Core Competencies Analysis & KSF
Key Success factor:
Following are the key success factors of Pepsi cola that are playing important role in the success
of Pepsi cola in Pakistan.
Strong marketing:
Pepsi cola have strong marketing campaign in Pakistan. They are doing 360’ marketing
campaign for the awareness of each product. They have different promotional campaigns for
different products. They are also using brand ambassadors in their advertisement that creates
positive image and strong loyalty with the product.
Strong committed employees:
Pepsi cola have committed employees who gave them the best output and loyal with the
company and this is because of motivation from the company. One of the main reasons of the
loyalty with the company is incentives and benefits given by the Pepsi cola to its employees
for their betterment. And due to these benefits the employee can’t switch to any other company.
Empowerment is also the main reason for commitment with the company.
Decentralized in decision making:
Decision making system in Pepsi cola is decentralized the decisions are made on top level
management but management also involved the middle line and front line management as well
in their decision.
Financially strong:
Pepsi cola is financially strong company they have the potential for more growth and they can
enhance their product line.
Dominant market share:
Pepsi cola have 72% dominant market share in the Pakistan as compare to its direct competitors
like coca cola. And still the company is working for capturing the more market share.
Target market:
This is also one of the reasons in the success of the Pepsi cola. Pepsi cola is doing mass
marketing in the Pakistan they are hitting all types of customers and filling the demand of every
type of customer.
Strategies Undertaken
INCLUDES:

Corporate level Strategies

Business level Strategies

Functional level Strategies
Corporate Level Strategies:
As a world leading company PEPSI is applying Growth and Stability Strategy
Grand
Growth strategy:
When we look at the history of the Pepsi in Pakistan it was started in 1962 as a wholesaler
depot in the tertiary of Karachi and then with the success in 1975 it started its business as a
FOBO (franchise Owned Bottling Operation) as the time passed they have increased the
franchise to 7 which are now defined territories. Till 1962 to date company have increased the
sale and giving the tough time to its international competitor Coke with all its brands under one
Umbrella.
Stability:
Pepsi is continuously working on the stability because they are all the time in need of having
very tough competition from its competitor like coke, and other local brands. Some time to
overcome this problem company increases the percentage ratio of its suppliers, and some time
to its retail store keepers. In the season of Summer Company want its franchise to produce on
the full capacity @ 24/7 which leads them to maintain their market share.
Business Portfolio
Strategic Business Unit:

Pepsi

Pepsi Max

Mountain dew

7up

7up free

Marinda
Business level Strategies
BUSINESS LEVEL STRATEGY:
In business level strategy we discuss how a single firm or business unit competes in only one
market and is essentially a self-contained. The fair most common approaches to business level
strategy are:
1. Adaption Model:
The basic purpose of this strategy is to match the business strategies with basic environmental
conditions.

Prospector:
Work or act on a corporate strategy. Company always works as a prospector to take preventive
actions. Company scans the environment and after the analysis of the competitors and situation
they plan things. Pepsi cola using the prospector approach because of “Aqua Fina” launched
b6 months before of its exact launched time because that time coke was going to
introduce “Kinely” that is why Pepsi took the proactive action and introduced the “Aqua Fina”
before the “Kinely” to capture the market before the competitor.

Analyzer:
Having the knowledge of market share & Competitors Pepsi has planned to launch Tropicana.
Because company analyzed that there is very much room available in these types of products.
After evaluating the overall market then Pepsi has decided to introduce Tropicana.

Defender:
Pepsi some time also act as a defender because to retain the loyal customer and to sustain the market
share Pepsi use the defender strategy according to the situation. Company use product
development/enhance existing product line and also some marketing techniques to be use to defend
the company’s products.

Reactor:
Reactor strategy always be pushed by or to give the full support to the defender strategy, reactor
strategy is basically being the implementation of the defender strategy. e.g. in Ramadan when
coke decrease the price of 1.5 Liter coke from 50-45 then immediately Pepsi acted as a reactor
and also decrease the price of 1.5 Liter Pepsi from 50-45.
2.
Porter’s Competitive Strategies:
The three generic strategies are:


Differentiation

Cost Leadership.

Focus
Differentiation:
Sometime Pepsi have to work on differentiation as they have launch the product as a different
taste with its competitor like coke (which is strong in taste) so the Pepsi work as a slightly
sweetener taste which is more likely to be used by the all age groups.

Cost Leadership:
As the company earns more and more profit from different territories same as it is company
some time has to bear the losses for some times in order to be the part of Market, and to maintain
the goodwill in the eyes of it customers. Company is bound to the agreement with government,
it’s keeping the price of Pepsi (250ml) at Rs 12, while according to the high cost of production,
and price should be 16 Rs.

Focus:
Pepsi is targeting many different geographical areas inside and outside cities to retain its
customers and to capture more; this is the reason Pepsi use to launch different products under
one umbrella.
3.
Product Life Cycle:
The course of product sales and profits over its lifetime, it involves five distinct stages product
development, introduction growth maturity and decline.
When Pepsi entered the market they had just invested i n market in the 1st two stages of product
life cycle and earned nothing. Then in the stage of growth when early adopters buy the products,
Pepsi was in No Profit No loss situation but now Pepsi is on maturity stage of product life
Cycle and is earning a lot of profit.
Pepsi never entered the decline stage.
FUNCTIONAL LEVEL STRATEGIES:
This strategy focus on how the organization will approach its basic functional activates like in:

Marketing

Financial

Production

R&D

HR
Functional Area
Marketing
Finance
Production
Research & Development
Major Concerns
–
Product mix
–
Market position
–
Distribution channels
–
Sales promotions
–
Pricing issues
–
Public policy
–
Debt polices
–
Dividend polices
–
Asset management
–
Capitalization structure
–
Productivity improvement
–
Production planning
–
Plant location
–
Government regulation
–
Product development
–
Technological forecasting
–
Patents and licenses
Market Analysis
INCLUDES:

Segments and target market

4 P’s

Market share

USP’s

Competitive analysis

Main marketing strategies and market positioning
Target Market of Pepsi Beverages
Pepsi beverages have different products in the form of carbonated drinks, and each product has
different target market. According to Pepsi beverages, they hit different market groups by
different product such as Pepsi and 7up is for families, Miranda is for teenagers, Mountain dew
is for aggressive people on the other hand Pepsi max & 7up free are for diet alert and health
conscious people. They promote their products according to the target market through different
types of advertising campaigns and have special marketing strategies for each product.
Market of PEPSI:

Children:
Pepsi is heavily consumed and extensively enjoyed by children. They often make their parents
buy them Pepsi as a compulsion.

Youth students:
Many students and adolescence regard Pepsi as a youthful drink and have fun consuming
it. Youth make major target group of Pepsi, so all their advertisement campaigns especially
focus upon the young and spotlight on youthful entertaining Pepsi filled moments.

Professional and technical:
Highly educated Professionals and technical experts consider Pepsi as a high quality
mouthwatering drink and have a major share in target market.

Families:
Pepsi has become an integral part of table laid down for family lunch and dinner, everybody at
home from young to elderly love to augment their meals with exciting taste of Pepsi.
Segmentation of PEPSI Company
Geographic:
World region or country
Asia
Country region
Pakistan
City or metro size
More than 100,00,000
Climate
Urban , Suburban, rural
Demographic:
Age
Above 6 years
Gender
Male , female
Family size
1-2,3-4, 5+
Family life style
Income
Occupation
Young, Single, married, married with children
older, under 18 , and others
Under 10,000 and above
Professional and technical, managers, officers,
retired, students, unemployed
Education
Grade school or less, some high school, and
above
Religion
Any
Race
Asian, black , white
Nationality
Pakistani
Psycho-graphic:
Lower lowers, upper lowers, working class,
Social Class
middle class, upper middle, lower upper,
upper upper
Life style
Personality
Achievers, strivers,
Compulsive,
gregarious,
authoritarian,
ambitious
Behavioral:
Occasions
Regular occasion, special occasion
Benefits
Quality, economy, convenience
User status
Non user, potential user, first time user,
regular user
User Rates
Light user, medium user, heavy user
Loyalty Status
Strong , absolute
Readiness stage
Attitude toward product
Unaware,
aware,
informed,
interested,
desirous, intending to buy
Enthusiastic, positive, hostile
Product Mix of Pepsi (4 Ps)
Product:
Pepsi beverages Pakistan has product range that is as follow!

Pepsi

Pepsi Max

Mountain dew

7up

7up free

Marinda

Marinda Apple

Pepsi is a quality product and it’s more focus on customer requirement like they have
provided different Pepsi products e.g. Pepsi max and 7up for health conscious people.

Mountain dew for young and innovative generation.

Marinda for teenagers.

The company so much focusing on features of the product they change the style and cover
according to the new product and with time to time for the attractiveness of customer.

They have different bottle and packaging style of Pepsi, Max, Marinda etc

They are also using the brand ambassador’s picture on the bottle for the attractiveness.

The style of every bottle they are making easy to carry for customer.
Price:
The products mentioned in product head are sold in market in different sizes and prices that are
as follows!

250ml

500ml

300ml

1.5 liter

2 liter
According to our survey company is using competitor based pricing. Main competitor is CocaCola. Both companies have similar pricing in beverages. They based on each other in setting
the prices.
Place:

Pepsi products are very convenient and available easily in the consumer’s range. In Pakistan
where ever you go you can easily find Pepsi from different stores.

For Pepsi key account are different wholesalers, restaurants and hotels like pizza hut and
KFC and also Metro, Macro which serve as a place for key sale. These are known as national
key accounts and are very important in term of competition.
Distribution channel of Pepsi is:
Promotion:

Pepsi is doing heavy marketing to create the best image in the mind of customer about Pepsi.

They arrange and sponsor different concerts and occasions like they sponsor the crickets etc.

The Pepsi is also doing outdoor advertising through billboards like recently Pepsi have
launched Pepsi max and promoting through billboard that is in liberty near Husain Chowk.

In their advertisement they are creating positive image through brand ambassadors Anny and
Adnan semi

They are also doing radio advertisement the same advertisement on TV.

Pepsi promoting itself through its website.

Company launched every product with different marketing campaigns according to the
product.
Market Share of Pepsi in PAKISTAN
Pepsi
72%
Coca cola
23%
Other
5%
Pepsi Unique Selling Points (UPS)
Strong brand name:

As the “PEPSI” itself is a strong brand name. Whenever the customers feel thirst he/she
always think about the PEPSI not even the beverage, Which makes the Pepsi brand name as
a stronger brand name this is the reason that Pepsi gets the advantage of Word of mouth
advertisement as well which ultimately raise the sales of Pepsi.
Quality:

When we talk about the quality of Pepsi as a company they are very much concern about
product quality. To make sure that the product is up to Standards Company have many
checks in different departments. As they have special department of QA which always verify
the quality standards.

First when the product reaches (US -> SINGAPURE -> production plant) to the production
plant in a carbonated form in sealed packs drums which use to be given to the Franchisers.
In the production department only foreigners are allowed to work. The company
responsibility shifts to the franchisee which makes sure the quality of the product. Company
has appointed one QA person with the franchise and on the other hand company often sends
their representatives to the production of the franchise to overcome the hurdles in meeting
the quality standards.
Economy:

The price which makes the product to be accessible to the final customer. Now days it is
better to have soft drink which is available in the shape of packed bottles and cans. People
prefer to have economical product to be taken as a drink that is the reason Pepsi taking the
advantage of Unique Selling Point.
Convenience:
Pepsi is available to everywhere, any store or any food restaurant this is the thing which make
the product convenience to the customer which is a Ups point as well for the company.
Do care of Health conscious people (Max):
As the Pepsi is always found of having more and more customers in hand that’s why company
has launches the Pepsi Max (without sugar) to fulfill the demand and retain the health conscious
people. which is again a unique selling point for Pepsi.
Taste:
The taste of the product is attractive to all, like any child, young, married or old every one like
the taste of Pepsi which we can say it fits to all.
Addiction:
One more and huge unique selling point can be the addiction of the people that they need the
Pepsi with mostly their all the meals, especially children. They are found of having Pepsi with
them all the time.
Competitive analysis
Direct Competitors:

Primary Competitors:
1. Coca Cola
2. RC Cola
The primary competitors of Pepsi are coco cola and RC cola. These competitors are very strong
and powerful in the market due to their huge market shares and customer satisfactions. And
there is a big challenge for Pepsi to take over the direct competitors.

Secondary Competitor:
1. Amrat cola
2. Shendy cola
Indirect competitors:

Juices

energy drinks

Tea and coffee

Mineral water
Pepsi Marketing Strategies:
PepsiCo has developed the national marketing, promotion and advertising programs that
support its many brands and brand image; oversees the quality of the products; develops new
products and packaging, and coordinates selling efforts.
As we know that making a strategy in large firms is not only the job of top executives, all the
large organization or firms involves the everyone, same as it is the following strategies are the
basic strategies which a company can apply to its.
Backward Integration:
Pepsi as a company is using the backward strategy in order to get the basic ingredient of its
beverages (concentrate) from its main head office of America. This concentrate is send to its
production locations.
Market Penetration:
Pepsi is spending millions of rupees to advertise the product even it uses to be the reminder to
the public because almost everyone knows the brand name and its product.
Market development:
All the Companies use to be in found of having new geographic areas. In order to have market
development company acquire the small companies and to provide its product to everywhere
they have the third part services(PTN) to make sure the availability.
Product Development:
To cater and to retain the loyal customers company have offered many other products in
different sizes.
Related Diversification:
Pepsi have its related diversification in the Water with the name of Aquafina. This product has
its own brand image and the target market as well.
Unrelated Diversification:
Under the unrelated diversification head Pepsi have launched the different product like Lays
(available in different flavor and packing) and the other is Kurkuray (available in different
flavor and packing)
Control Procedures
Marketing control:
Measuring and monitoring the marketing planning process:
There is no planning without control. Marketing control is the process of monitoring the
proposed plans as they proceed and adjusting where necessary. If an objective state where you
want to be and the plan sets out a road map to your destination, then control tells you if you are
on the right route or if you have arrived at your destination.
Control involves measurement, evaluation, and monitoring. Resources are scarce and costly so
it is important to control marketing plans. Control involves setting standards. The marketing
manager will than compare actual progress against the standards. Corrective action (if any) is
then taken. If corrective action is taken, an investigation will also need to be undertaken to
establish precisely why the difference occurred. Pepsi have used the new- product strategy to
realize their ambitions to both defend their current market position, and reinstate their position
as a product innovator.
Production control:
The Production Supervisor contributes to The Pepsi Bottling Group’s success by directing the
production team to meet customer needs and achieve standards related to cost, line efficiencies,
waste, safety and productivity. This individual must set production performance standards and
align the organization to achieve standards. Major Tasks, Key Responsibilities and Key
Accountabilities Applies knowledge of processes, equipment and system capability to set
challenging individual and facility standards Develops Annual Operating Plan for Production
Achieve performance standards with regards to safety, line utilization and quality Tracks key
performance indicators/costs, anticipating and correcting trends.
Human resource control:
The business success is about taking right people to the right place on right time. So what is
the problem? Actually, if you need to manage not one, but five employees or better five groups
of employees, then you face the problem of measuring and control. It’s hard to tell whether one
group is performing better or not, it becoming hard to compare one employee’s success against
other one; it’s hard to see the unique features of people. So what the solution is?
There are two approaches Pepsi suggests to take into account when thinking about human
resources (HR) at company. First, Pepsi think in terms of process, second in terms of how do
employees affect the whole business. : hire, education, management, retire. All the stages must
be processes carefully, as they could fully change your business. For instance, if you will have
the best system to hire stuff, but it will be working slowly, then you will fail. If your education
system will allow training everyone, but will not allow checking the actual performance
generated by training processed, then you will fail. If your best people will retire, then you will
lose.
So, that’s why it’s really important to measure and control all processes involved into
employee’s relationship. People, who you work with, should understand what your goals are
and how they will help to achieve these goals. This is the key idea of manage and control in
employees’ management processes.
Another approach is focusing on how someone’s job affects the company. It’s obvious that
even if someone works in Sales then he or she will affect not only the financial part of the
business by generating sales, but also all other parts.
For instance, sales person will be involved in entire company processes, such as education and
knowledge sharing. This person will also work directly with customers, so he or she might not
just sale, but get a valuable feedback from end users of your product. These people will also
help your company to grow not just in terms of sales, but in terms of better business processes
and business efficiency.
Finance control
The management of a firm’s cost and expenses in relation to budgeted amounts.
The section is broken down into 3 sub-sections
Cash Flow:
Cash flow is the balance of all the money that flows into and out of your company account each
day.
Regardless of whether or not you are trading and making sales/profits, you will need cash, and
thus it is important that you manage the liquid finance you do have, and that you plan for cash
flow in the future.
There are two principal factors that will affect your cash flow.

Inflow:
Revenue created by Cash sales.
Capital Finance – bank loans and overdrafts, equity finance etc.

Outflow:
Expenditure including Salaries and wages
Capital expenditure such as stock, raw materials and property costs
Pitfalls:
PEPSI CO has made sure that all transactions are documented and full record-keeping system
is in place and ensures that sufficient cash flow is available to meet Taxation payments.
Taxation:
Pepsi is very clear about Taxation position from the onset (take professional advice) and also
clear about requirements for VAT (Value added tax) registration. Pepsi is contributed heavily
in taxes.
Quality control:
Quality control is a process employed to ensure a certain level of quality in a product or service.
It may include whatever actions a business deems necessary to provide for the control and
verification of certain characteristics of a product or service. The basic goal of quality control
is to ensure that the products, services, or processes provided meet specific requirements and
are dependable, satisfactory, and fiscally sound.
Essentially, quality control involves the examination of a product, service, or process for
certain minimum levels of quality. The goal of a quality control team is to identify products or
services that do not meet a company’s specified standards of quality.
Quality control is the basic organizational objective of PEPSI. Quality check is made from zero
level to final products. For this purpose, samples are taken from the production to check the
quality. This sampling is done after each an hour or half an hour. These samples are tested
according to the Pepsi cola International standards.
Problem Section
Major problems According to the management for Pepsi

Distributors are the main problem for the company; because some distributors have political
influence that is why they do not act on the policies and procedures convey by the company.
Major problems of Pepsi According to our analysis

Company is unable to maximize its profit because of the high production cost

Company is unable to hamper the distributors according to the legal contract.

TQM procedures are not properly implementing in the production process.

HRM related issues like biasness in hiring LUMS students

In house productions of duplicate pepsi products couldn’t stop by the company.
Strategic Alternatives
INCLUDES:

solution to solve the problem
Solution to solve the problems

The management should act aggressively to control the production cost. Check & balance
system must be improve regarding production.

Trained and energetic staff must be hired to implement the TQM procedure properly in
production. So that the quality can be improve.

Company is under pressure by some distributors because of their political influence.
Company should develop some plans to control the distributors.

HRM department gives extra priority to LUMS students while hiring the employees. This
biasness must be eliminated by giving equal opportunity to all university graduates.
5 Years Plan
Five Years plan for Pepsi:
(2010):

Redefine Vision and Mission for Pakistan only

To define Proper Goals, Objectives and Customer Promises.

Make the company’s Employees well aware and informed of company policies and
objectives through different seminars and orientation sessions.

Plan to get registered with Pakistan Stock Exchange.

To fulfill the requirements for registration.

To launch aggressive marketing campaigns.
(2011)- (2012):

Go for Product Development & Related Diversification

Pepsi to Pepsi in different flavors

Launch Energy Drinks, Flavored Milk or Juices
(2013):

To increase its spending for promotional activities to enhance their market share

Unrelated Diversification

Production capacity must be enhanced to meet the future demands.

To open Pepsi outlets (where only Pepsi Products will be made available)

Fast Food Restaurants (under another Brand Name)
(2014):

Take the feedback and review of the last 3 years’ performance regarding planning

Co-Branding or Strategic Alliances with different brands.

Pepsi must focus on TALENT MANAGEMENT to hire and retain the best talent.
Conclusion & Recommendations
Conclusion:
After a brief analysis of Pepsi by using different tools and techniques we have come to know
that Pepsi international is very organized and successful in the world in terms of strategies and
their implementation plans. Pepsi international has a vast range of products as compared to
Pepsi Pakistan.
Pepsi has enough resources and finance to enhance the product line aggressively in Pakistan as
well. But in-stable economic, political and security conditions is Pakistan are a big hurdle in
making bigger investments in Pakistan.
To overcome these problems government of Pakistan should take some initiatives to boost up
the industrial sector.
Another internal factor which is an obstacle to enhancement of the business is high operating
cost of production which makes company bound to minimize its profit margin.
Recommendations:

Train local employees instead of foreigners to work in production Department

Update TQM Standards for betterment of Continuous Processes

Improve Packing Process to Maintain the quality in different Packing (250ml and cans)

Stop In-house Production

Implementation of Rules within the Territory of All the Franchises

Install vending machines in different public places to promote product and brand name.

Mobile Vans must be introduced to attract the consumers towards Pepsi brands
References

Ghulam Ahmad Rana

Imran Sarver (Area Sales Manager of Pepsi)

MR Atif (production Manager of Pepsi, Gujranwala)

Internet (Pepsi international, Pepsi India)

Shaheen Raza (Regional Sales Manager of Geo TV)

Riaz Bottlers (PVT) LTD

Article TALENT MANAGEMENT