CUSTOMER ANALYSIS ON PEPSI COLA PAKISTAN

CUSTOMER ANALYSIS:

There are three types of customers.

1. Consumers (Public)

2. Business (Companies)

3. Government (Govt Offices)

Pepsi Perfect main focus is the consumers which are the end users. Company has to make its marketing strategies keeping in view the consumer buying behavior. To forecast the behavior of the consumer is a business problem. Physical aspect of the consumer can be satisfied but it is difficult to satisfy the consumer psychologically. Consumer buying behavior is affected by certain factors like Cultural factors, Social factors, Personal factors and Psychological factors. So the producer should keep these factors in Mind while promoting their product so that they can acquire the customer and increase their market share.

There are different consumers in a society whose behavior is not the same. Every consumer has a different perception of different products. Some consumers are impressed by one quality of the product which may be in the view of other consumer not that impressive. So to deal with different consumers in a society one should know about the consumer buying behavior process which may help in making a true picture of their product in the mind of the consumers.

External factors affecting to the PepsiCo.

PEST analysis is concerned with the key external environmental influences on a business.

POLITICAL

ECONOMICAL

SOCIAL

TECHNOLOGICAL

PepsiCo product are subject to various federal laws

New opportunities in other countries

Replenishing water

Operates in almost all the countries

Land acquisition for new factories

Fuel price

Replenishing water

Introduction of cans and plastic Bottles

Govt. focusing on stricter water pollution norms

Availability of labor

Partnership with farmers

Newer and attractive Designs

Raw Material prices – A great worry.

Have a global economic perspective

Solid waste management program

State-of-the-Art plants

1.

Political and Legal Forces PepsiCo operates in different countries such as United States, Europe, Africa, and Asia. Thus, it must consider the legal and labor forces of the countries in which it operates. It has to make a good policy and have a good internal control about

its operations and employee’s incentives in order to be

compliance with the law. The things that Pepsico should consider are tax laws, labor union, and environmental law. It should operate in accordance to the laws in the country to have a good corporate compliance and governance.

2.

Economic Forces

Economic factors have some significant impact on Pepsico’s

business. If the income level per capital of the people increases, it will have a positive effect on the consumption of its products. Meanwhile, if there is an inflation, it will have a negative effect on Pepsico as people’s purchasing power

decrease, they will consume less. Since Pepsico is operating and distributing in different countries, while the headquarter is in the USA, dollar strength has an impact on

Pepsico’s business. When there is a dec

reason in the dollar strength, it gives a bigger opportunity for Pepsico for exports.

Social, Demographic, Culturan and Environmental ForcesThe healthier lifestyle of the people promotes different patterns of consumption. This could be either a threat and new opportunity for Pepsico products. Pepsico can support sports events in order to give a message to the people that Pepsico concerns about the health of the people. Besides that, the requirements of different age groups are different. Pepsi co should target that age group that consumes the soft

drink or snacks. For products like Pepsi, and Lay’s, it should

target young generation, while for the healthy meal like Quaker Oats, it should target adults. Pepsico should also consider the education level within the country for making its strategy since education has direct impact promotion and marketing. It should make marketing/promotional campaigns that can make people aware of its brands and

products according to the country’s education level. In

addition, Pepsico should also consider about the natural environment factors in operating the business as a form of contribution and responsibility to the community.

4.

Technological Forces Given how capital-intensive the food/beverage industry is, it is imperative for Pepsico to stay ahead of the curve in terms of the most advanced technological breakthroughs, as the company requires highly mechanized assembly lines designed both for long production runs and flexibility. The growing technology gives new opportunity for Pepsico to have new ways for Pepsico marketing strategy. The proliferation of Internet users also opens up further market opportunities for Pepsico to market its products.

5.

Competitive Forces In the food and beverage industry, Pepsico has the second largest market share. The summary of Pepsico’s

performance compared to its competitors within the food and beverage industry, which are Coca Cola and Kraft, is shown in the table below: