SWOT ANALYSIS OF PEPSI COLA PAKISTAN

SWOT ANALYSIS OF PEPSI

SWOT Analysis is also called institutional analysis which includes strength, weakness, opportunity and threats. Swot analysis plays a vital role in the growth of a business.
STRENGTHS:

High quality soft drink.

Suitable brand name.

Good/unique Packaging.

Company has a very established name and a good reputation.

Pepsi has large market share than its competitors.

Strong research & development.

Pepsi spends a lot of budget on its advertising.

Pepsi has a very vast distribution channel and it is easily available everywhere.

Strong relationship with bottlers.

WEAKNESSES:

Pepsi does not offer any sort of incentive or discount to its retailers.

Pepsi target only young customers in their promotions.

Demand of disposal bottle is declining.

Pepsi tin pack is not available in far off rural areas.

Pepsi is not considering many potential outlets like hotels, college canteens etc.

OPPORTUNITIES:

Increase in consumption of soft drinks by the consumers.

Population growth.

Flexible Goverment policy.

Pepsi have enough funds to expand their business in Pakistan.

Company may start entering rural areas also.

The company may also diversify its business in some other potential business.

Increased interest of people in musical groups, cultural shows and sports has provided an opportunity for Pepsi to increase its sales through them.

THREATS:

The main competitor of the company is the Coca Cola.

Cola drinks are not good for the health so the awareness level of the people is increasing which is a big threat to the company.

Low purchasing power of the peoples.

Law and order situation has a great impact on company sales.

High inflation in the Pakistan.

Increasing interest rate.

                              Marketing Mix

Product: 
The main product of Pepsi Cola Company is Pepsi and its sub brands are Dew, Miranda, 7up, Pepsi Max. It also diversified into Lays.
Providing their consumers with easy-to-use, convenient and innovative containers are one of their top priorities. Package introductions they have made over the years include the industry's first 1 ½ liter bottle; Regular, Disposable; Can. Pepsi Co. was the first company to respond to consumer preference with lightweight, recyclable, plastic bottles. These bottles are made of polyethylene terephthalate or "PET plastic," which is a form of polyester used to make strong, lightweight, shatter-resistant bottles.

Pepsi Products:

 Pepsi                                                    (cola drink)

  7UP                                                     (cola drink)

 Miranda                                               (soft drinks)

  Dew                                                    (cola drink)

 Slice                                                    (soft drinks)

Aquafina                                             (Mineral Water)

Price:

Pepsi prices its products similar to those of Coca-Cola in order to keep profits high. Competition in the is based mainly on marketing skill rather than price to help avoid costly price wars and keep profits stable. Since neither of the major manufacturers would win a price war, it is unwritten rule that the companies will follow the pricing structure of the market leader. While this amount to price fixing, there has not been any major government actions to curtail the practice so it should continue in the future.
PepsiCo’s current retail prices range depending on the convenience of the location in which they are located and depending on the size of the soft drink container. 
PRICES OF DIFFERENT BOTTLES

Size and Price of Pepsi (RS.)

Regular bottle 13

Non returnable or disposable bottle 30

1 liter bottle (glass) 35

1.5 liter bottle 70

2.25 liter bottle 90

Pepsi can 40

Place (Distribution):

Manufacture    -------------- Wholesaler---------------Retailer

Manufacturer -------- Company Warehouse-------------- Retailer

Distribution is an important aspect of success in the beverage industry. Since the cola companies want to focus on making syrup and marketing, they need to have strong, loyal bottlers. This is especially the case in foreign markets where the cola companies fiercely battle for good bottlers.
The building of bottlers through joint ventures and the increased maintenance of current bottler relationship should be the main focus of Pepsi’s international marketing. Coca-Cola is very methodical in making sure that its bottlers are happy, while Pepsi has been known for neglecting its bottlers. This is one area that Pepsi must improve if it is going to take market share away from Coca-Cola.
Product is distributed through PepsiCo distribution centers. The distributor delivers it

To the grocery retailers, vending companies, restaurants, and warehouse/club stores.
The distribution segments can be broken down into the following:
• Convenience Stores and Gas Stations: 12% of the market
• Restaurants: 25% of the market
• Warehouse/Club Stores: 6% of the market
• Super Markets and Retail Stores: 57% of the market.