Premium Essay

Pepsi Pak

In: Business and Management

Submitted By aravicamp
Words 867
Pages 4
Mustafa Task in hand
Develop strategy to grow share and profitability across PCI sales - focusing on 7up
Merge 7-up bottles to merge with PCI bottlers. Contract expires next year or two. So should convenience bottlers to adopt an updated product line - 7up Only 3 region 7-up bottlers we merged in 1990. Should convince remaining 7-Up bottlers to sell their plants to PCI bottlers Issues
Showcase 7-up over Teem and positioning of the soft drinks in Pakistan
An updated product line would entail changes to Teem, bottlers may resist
No support for Teem from Pepsi Cola International.

Distributors felt that Pepsi is concentrating on snacks rather than soda business

Pepsi Product Line
Soft Drinks: Pepsi Cola Company and Pepsi Cola International
Snack Foods: Frito Lay Inc. and PepsiCo Foods International
Restaurants: Pizza Hut, Taco Bell, and Kentucky Fried Chicken (KFC) Consumption
America - 500 12-ounce units
Mexico - 333.33 12-ounce units - because of underdeveloped distribution system.

Pepsi planning to spend $1 billion for next 5 years - to upgrade bottling plants, improve distribution and bolster marketing programs target certain fast-growing market segments - diet soft drinks, and fountain and vending machines.

Forcast
US - 4% to 5% in 1980 to 3% in 1990
International :8% to 10% from 1990 thro 1995 - 2 billion cases in 1990 to 5 billion by 1995 - profit : 25 percent of sales and profits from foreign markets over the next five years—

7-up addition
Adding 7-Up’s international unit boosted PepsiCo’s foreign volume by almost 20 percent

Competition Market Share US Coca-Cola - 39% Pepsi’ 29% International Coca-Cola - 46% Coca-Cola to Pepsi : 3:1 Sales Growth International Coca - 8% Pepsi - 29% Revenue Coca - $10 billion in combined domestic and international revenues and $1.4…...

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