Pepsi Marketing Mix
Contributing to this industrial revolution
among other industries were
Manufacturing, Agricultural, Automotive,
Chemical, Hotel, Banking Business
Services, Real estate, Tourism and
information Technology to name a few. But on
such industry that has been
holding onto its share of the market since its
inception note in the USA -
its birthplace - but all across the globe as well as
the Beverage Industry.
It has introduced icons that very few are oblivious to.
The industry and
its role in the Pakistan economy, the conditions under which it
is working
and the effects it has on the consumers is to remain the concern of
this
study. According to Richard D. Brown and George J. Petrol (1986), the
history
of the Beverages industry start from 1886, when Atlanta chemist
"Doe"
Pemberton developed a reddish - brown syrup with a smidgen of
cocaine (for
medicinal purposes) to compete with the many patent medicines and
cure - all
elixirs of that time. His company recommended it for the relief of
hangovers
headaches, menstrual pains, and a host of other problem. One warm
summer day
Pemberton took some syrup down to will is venerable at Jacob's Drug
Store
in Atlanta. An ounce of the mixture was put into a glass, which was
then
filled with water and ice, creating the first Coca-Cola. The
headquarters of
Coca-Cola, now listed by fortune as one of the 50 top
corporations in the United
States, is still in Atlanta, Georgia. The
actual sale and distribution of that
magic elixir - which, needless to say,
on longer contains cocaine - is handled
largely by a number of independent
bottlers. These bottlers buy syrup, mix it
with carbonated water, and
distribute it to retailers in their area. The number
of retailers who sell
Coke to the public almost exceeds counting. In this way a
company with a
magic formula but limited capital spread its name around the
country and
eventually around the globe. The organizational formula for
merchandising
apparently also had a bit of magic. But, of course, the product
was one that
people wanted, which is perhaps the first law of success in
marketing. Coke
had been successful in establishing a strong loyal consumer
force, on whom it
still relies to this very day. Dong business was no sweat once
the industry
had set itself for good and the consumer’s tasted veered.
Everything
seemed to go smooth enough until hell finally broke loose. Trouble
started
creeping into the very foundations of coke who stated loosing a major
share
of its market. Thanks to Pepsi. With virtually the same history Pepsi
started
gaining ground and proved to be an excellent example of how
razzle-dazzle
advertising sharp marketing and an efficient distribution system
can turn a
loser in to a winner in a remarkably short period of time. Pakistan
today has
a very competitive beverages market. Opportunities for this industry
to
establish itself firmly in this country were grim at first because of
the
country's low per capita income and because of the business' status
depending on
consumer impetus. But much of it was more or less the same when
the business
took a start in the USA as well. The Beverage industry has
undergone a
revolutionary change during the last couple of decades. The form
of processing
and the machinery used these days has developed and is very
sophisticated.
Automatic and computerized plants have been installed in
the industry thus
making it an industry which is dealing in million of
gallons of beverages
yearly. Pakistan Beverages, the bottlers for Pepsi, and
Coke bottlers National
Beverages claim that their primary goal is not to
undermine the competition but
to expand the market as a whole. Market
expansion, in fact, seems to be the
buzzword these days in the beverage
industry. Analysts believe the potential
market in Pakistan is though to be
enormous because the country's per capita
consumption is as low as 14 bottles
per year. Compare this with a 120 bottles
per year in the Philippines, and
the scope for expansion becomes more than
obvious. HISTORY OF PEPSI COLA It
starts with a small drug store in North
Carolina. This little store
belonged to young chemist by the name of
"DOC" BROADHAM. He invented a drink
that the customers called BROAD'S
drink. In 1903, Bradham got its drink
registered formally by the name of PEPSI
COLA. He set his own company and
kept its sales improving gradually. By 1909,
more then 250 bottlers in
different American states had been allowed to sell
under the PEPSI COLA
license. PEPSI COLA was first sold in the standard size of
6.5 ounces. In
1932 PEPSI COLA took courage enough to introduce a bottle of 12
ounces. In
1950 the PEPSI COLA'S formula had been changed by reducing its
sweetness and
calories and a new advertising campaign "Refresh without
filling" had been
launched effectively. Under the supervision of the
diligent sales staff and
the Marketing experts, PEPSI COLA began setting new
records of eminence. At
30 plants per year, new plants were established all
across the globe. A new
attractively designed bottle had been introduced in 1957
in place for the 20
years old bottle, and the product line had been enhanced to
introduce the new
flavors of TEAM & MIRINDA. Sindh Beverages (Pvt.) Ltd.,
claim that PEPSI
COLA today is available to more than a billion people in 153
different
countries which include the central independent states and
China.
Progress Report 1996-98 1996 Refranchised 655 restaurants
Closed 379
underperforming restaurants Restructured Pepsi-Cola
International Enlisted
strong new bottler in Venezuela Created worldwide
snack and beverage units
Announced plan to sell non-core restaurant
chains Repurchased 54 million
shares 1997 Spun off Pizza Hut, KFC and
Taco Bell as Tricon Refranchised
New Zealand restaurants via public
offering Divested five non-core restaurant
chains Divested PFS restaurant
supply unit Received $5.5 billion in
restaurant disengagement proceeds
Divested Syrena candy business in Poland
Divested Gerber baby food
business in Mexico Placed more than 150,000
beverage coolers and vendors in
the U.S. Enlisted new bottlers for
territories in Brazil, Philippines,
Japan and Scandinavia Renegotiated
bottler contracts to centralize fountain
beverage distribution Expanded U.S.
fountain beverage sales and service
group Acquired Pehuamar snack business in
Argentina Divested Obregon
flour mill in Mexico Repurchased 69 million
shares 1998 Acquired
Tropicana, world’s largest branded juice company
Announced public
offering of The Pepsi Bottling Group Launched new blue globe
logo for brand
Pepsi Launched WOW! fat-free snacks nationally in the U.S.
Launched
Pepsi One, sweetened with Acesulfame K Acquired Smith’s
Snackfoods
Company, Australia’s market leader Acquired snack chip
businesses in
France, Holland, Belgium Divested BN biscuit business in
France Entered
joint venture to become snack chip leader in South and
Central America
Acquired Barcel, Chile’s second-largest snack company
Expanded stake in
Tasty Foods Egypt Acquired bottling operations in
four U.S. states and two
Canadian provinces Placed 190,000 beverage
coolers and vendors in the U.S.
Acquired Cracker Jack snack brand
Agreed to sell Polish chocolate and biscuit
units Consolidated Pepsi and
Frito-Lay U.S. media buying Repurchased 59
million shares HISTORICAL
BACKGROUND OF SINDH BEVERAGES The plant had been
established in Phulali in
1974 at first, when it operated with the help of a few
donkey carts for
distribution of its products. It had been upgraded in 1988 and
had moved to
the rather industrial SITE
area.