PepsiCo

PEPSI COLA PAKISTAN

Mustafa’s planningMustafa’s planning

Merging of PCI bottlers and 7-UP in Pakistan – PCI was able to merge in 3 regions

After contract expiration, 7 up bottlers will be convinced to sell their plant.

Persuade bottlers to adopt an updated product line.

PEPSICO. INC.PEPSICO. INC.

SOFTDRINK- PEPSI SOFTDRINK- PEPSI COLA INTERNATIONAL COLA INTERNATIONAL

YEAR ACTIVITY1895 “Brad’s Drink” appears in New Bern, North Carolina

1898 First known use of “Pepsi Cola” name, automatic bottle-making machine invented

1934 Bradham dies: “Pepsi Cola Co. Canada” formed.

1946 Pepsi moves into Latin America

1956 Pepsi has 120 plants in over 50 countries

1961 Teem introduced, “Now it’s Pepsi….. For those who think young” campaign.

1965 Frito-Lay and Pepsi merge; Diet Pepsi catches industry leader in diet market.

1966 Pepsi enters Japan and eastern Europe

1972 Pepsi-USSR trade agreement announced

1977 Pepsi acquires Pizza Hut Corporation

1978 Pepsi acquires Taco Bell Corporation

1985 Pepsi enters China

1986 Pepsi acquires 7-UP International

1988 Pepsi receives approval for India joint venture

1989 Pepsi acquires KFC

COMPETITIVE ANALYSISCOMPETITIVE ANALYSIS

SOFT DRINK MARKET SOFT DRINK MARKET SHARESHARE

COMPETITIVE COMPETITIVE ADVANTAGE OF PEPSIADVANTAGE OF PEPSI

SOFTDRINKS SOFTDRINKS

SNACK FOODSSNACK FOODS

RESTAURANTSRESTAURANTS

PEPSI COLA PAKISTAN PEPSI COLA PAKISTAN INC. INC.

MARKETING PLANMARKETING PLAN

STRENGTH OF TEEMSTRENGTH OF TEEM• Competitive lemon-

lime substitute in order to complete its product line.

• Achieve strength and economies of scale (production, marketing, sales and distribution).

• Second largest lemon flavour.

CLOUDY TEEMCLOUDY TEEM

Local drink referred as “sikanjabin”

Move clear teem customer to either 7 –UP or Cloudy Teem

Divert customer attraction from larger brands like Pepsi Cola and Mirinda

SWOTSWOT

Pricing issuesPricing issues

PCI have no control over prices.Bottler association set retail prices.PCI can set prices of concentrate.

IssuesIssues

Teem a local brand of PCI (Pepsi Pakistan) and international brand 7up are conflicting.

To convince the bottlers of 7up to produce other Pepsi brands.

Details about issuesDetails about issuesWhen Pepsi was introduces in Pakistan, they

did not have lemon & lime segment to compete with coca-cola, to become competitive in this segment PCI has launched a brand named Teem under the brand name of PepsiCo.

After PepsiCo acquired the 7up brand the PCI now faces the conflict between 7up and Teem. PepsiCo has stopped providing marketing and technical support to teem after the acquisition of 7up

Mustafa’s concern was to acquire the remaining bottlers of 7up so as to increase the capacity of PCI, the main problem was that the bottlers of 7up saw themselves as entrepreneurs and were afraid that merger with PCI will overrule the 7up brand with more strong brand “Pepsi”.

Weather to go with teem or Weather to go with teem or 7up?7up?7up is acquired internationally by PepsiCo.

7up is the strongest lemon n lime brand in the world market, as it was backed with heavy promotional and advertisement it became the generic name of lemon n lime market.

It is stronger than Teem, and teem is not a strong brand internationally.

Teem on the other hand is the second largest brand in the lemon n lime segment, and in some areas it is even at the top position.

Due to weak advertisement strategies the sales of 7up is stagnant since last 2 years, on the other hand teem’s market share is constantly increasing @ 2% p.a

A new version of Teem is being launched with more Lemon concentrate which gave it a milky look and a more refreshing “home like” taste.

Resistance from bottlersResistance from bottlersSix out of nine bottlers were not convinced to go

for Cloudy teem, they believed that the consumers will not support the “fake look” of the cloudy teem, customers are trained to use clear lime drink.

The bottlers also doubted the market potentials and feasibility of the cloudy teem soft drink

In spite of the resistance PCI launched the product in two territories, if the potentials are good the bottlers will be convinced to produce Cloudy teem

ConclusionConclusion

Lime n lemon segment will be too crowded if 7up, Teem and Cloudy teem is launched altogether.

Sales composition◦Pepsi 60-65%◦Mirinda & Teem 15-25%◦7up 15-20%

Mustafa believes that the 7up’s bad performance is only due to the bad promotion and advertisements.

The potential is very high, if proper promotion activities are adopted then the sales of 7up will surely increase.

Cannibalization should be avoided, and Teem should be removed from the product line.

Cloudy teem on the other hand has some product differentiation, so it would be beneficial to keep it in the product line

Thank You