Marketing Report on Mobilink GSM (Internship Repots)

2:37 AM Bee

MOBILINK GSM

Introduction


Mobilink GSM -Introduction

Pakistan Mobile Communications Limited (PMCL) better known as Mobilink GSM is a telecommunication service provider in Pakistan. Mobilink started operations in 1994 as the first GSM cellular Mobile service in Pakistan by MOTOROLA Inc., later it was sold to Orascom, an Egypt-based multi-national company. It has become the market leader both in terms of growth as well as having the largest customer subscriber base in Pakistan - a base of over 24 million and growing. Mobilink prides itself on being the first cellular service provider to operate on a 100% digital GSM technology in Pakistan that also provides state-of-the-art communication solutions to its customers.

Mobilink offers exclusively designed tariff plans that cater to the communication needs of a diverse group of people, from individuals to businessmen to corporates and multinationals. To achieve this objective, Mobilink offers both postpaid (Indigo) and prepaid (JAZZ) solutions to its customers. Compared to its competitors, both the postpaid (Indigo) and prepaid (JAZZ) brands are the largest brands of their kind in the Pakistan cellular industry.

In addition to providing advanced voice communication services that makes the lives of millions that much easy, Mobilink also offers a host of value-added-services in its Mobilink World brand to its prized customers. At the same time, Mobilink places high importance to its coverage, which is why it covers its customers in 5000+ cities and towns nationwide as well as over 100 countries on international roaming service. Mobilink is also the official telecommunication service provider for the Pakistan Cricket Board (PCB). The company was awarded the license to operate in Azad Jammu and Kashmir (AJK) on 27 June-2006.

Facts About Mobilink GSM

Company Structure


Private Limited

Genre


Subsidiary

Parent


Orascom Telecom Egypt

Owner


Naguib Sawiris

Founded


1994

Founder


Motorola USA

Industry


Telecommunication

Headquarters


42 Kulsum Plaza, Blue Area, Islamabad.

Area served


5000 cities, towns, and villages across Pakistan

Revenue


250.2 million
USD (3rd quarter, 2006)

Website


www.mobilinkgsm.com

Mobilink Vision

“To be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Employee Expectations”.

Goals and Objectives

· Expand the business.

· Provide better service to people in the field of telecommunication.

· Retaining the role of a leading telecommunication company.

· Attract maximum customers and satisfy them.

· Excel in meeting customer needs.

· Seek employee involvement, continuous improvement and enhanced performance goals.

Achievements

· ISO 9002 Quality Management System Certification for Billing, Engineering Departments and CS Contact Center

· Implementation of a full Intelligent Network (IN) platform from Siemens for the Prepaid platform

· Largest Call Center in Pakistan, which is there to assist the customers 24 hours

· Only cellular service in Pakistan to provide coverage on the M2 motorway

· Bilateral roaming in over 100 countries around the world with true international roaming with over 300 operators across the globe

· First mobile operator in Pakistan to offer extensive GPRS Roaming and BlackBerry Roaming services

· Societal Marketing

 

Mobilink believes in playing an active role in supporting the community and social development of Pakistan. Each year, Mobilink and its staff contribute significantly to charities and community projects to help bring about a better quality of life to the less privileged in the community and enrich the lives of Pakistanis through support in local arts, education and sports.



· Educating the Youth


Mobilink has made various donations to educational institutes. This includes donating computers to the Federal Board of Intermediate and Secondary Education, donating Rs. 100,000 to Pakistan Institute of Medical Sciences to set up a computer lab, and sponsoring the commemorative ceremony for the golden jubilee of Cadet College, Hasanabdal.

· Supporting the Arts

 

Mobilink's alliance with the international Kara Film Festival demonstrates its commitment to the promotion of art and theatre. The festival creates a space for alternative and independent cinematographers, both experienced and new filmmakers, to exhibit their creative endeavors in Pakistan.

· Employee Involvement

Mobilink believes in supporting the community not only through sponsorships but also through employee involvement. In addition to sponsorships, Mobilink encourages its employees to be engaged in community welfare work and to support relevant causes.

· Earthquake 2005

During the devastating earthquake of 2005 that struck the Northern Areas of Pakistan, Mobilink was amongst the first to respond to the crisis. Relief Camps were set up in all major hospitals to provide free calling facilities to patients and relatives arriving from far flung areas. Goods such as blankets, shawls, jackets were also collected for those affected by the earthquake and Mobilink Relief Teams were constituted to provide aid to the Northern Areas.

Strategy and Management

Mobilink is led by Zouhair Abdul Khaliq, who has been the President and the CEO since June 2003. Since then, Mobilink has embarked on an aggressive growth strategy. Mobilink closed 2003 with 2 million customers. In comparison, Mobilink closed 2005 with more than 11 million subscribers. Currently, the subscriber base has increased to more than 24 million.



Network

During the last 13 years, Mobilink has set up one of the largest cellular networks in the country. Currently, it is covering more than 5000+ cities and towns. This has involved an investment in the company of more than US$ 1 Billion. Mobilink has 50 Switches and more than 4,900 cell sites and the number keeps growing at a rapid pace. It also has deployed around 3,000 km of optical cable.

 

Switches


Siemens and Alcatel

Radio Base Stations


Motorola and Alcatel.

Intelligent Networks


Siemens

Microwave Equipment


NEC and Alcatel

Operating Frequency


900/1800 MHz

 

 

Evolving the Prepay

Traditionally, post-paid billing has always been the method that telecom companies have used for obtaining payments for the services provided. Whether the said companies were state-owned giants, or private ventures; billed accounts were the way to go. With the advent of mobile telephony, this system changed to accommodate and facilitate the needs of different users. Here was where the prepay concept was born.

The company that is credited with introducing the concept in Pakistan is Mobilink. There is little doubt, though, that when the company that prided itself on its executive clientele came up with prepaid cards, it could not have imagined the extent to which the idea would take off in the country. On the other hand, it is not hard to imagine the motivation behind Mobilink’s decision to launch its offering. At the time, having a cell phone and a post-paid connection was no cheap thing. So, the company decided to try to grow by targeting the majority that could not afford billed connections. The idea worked pretty well, and Mobilink Jazz came to be.

 

BCG

Growth Rate Matrix



BCG Growth Rate Matrix

 

 

 

STAR.



?

 

 

CASH COW.

 


 

DOG

 

High Low

 

High

Mobilink

Market

Growth

Rate

Low

 

 

Mobilink Market Share

 

 

Mobilink claims all its products as Star with the highest Market Growth Rate and highest Market Share.

 

 

 

 

SWOT ANALYSIS

STRENGTHS

· The company excels in marketing, sales and customer services.

· It has the advantage of having a huge and loyal customer base.

 

 

 

 

 

 

 

WEAKNESSES

· Network problem is the biggest weakness for Mobilink for which it faces major criticism or complaints.

· The company is also vulnerable with post paid debts.



OPPORTUNITIES

· The company has opportunities in the field of wireless and 3G technology.

· It can also further capitalize on the emerging trend of value added services.



THREATS

· With lots of competition coming into the telecommunication industry of Pakistan, buyer’s growing bargaining power is the strongest threat to the company.


Marketing Management

The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.


Marketing Research

Marketing research

The marketing research process includes the systematic identification, collection, analysis and distribution of information for the purpose of knowledge development and decision making. The marketing executive at Mobilink admits that understanding markets and customers is the bedrock on which business planning and strategy is built. Without knowing our customer’s needs and wants or understanding demand, our business will be under constant threat from competitors and may be failing to extract the maximum value from the market. Mobilink provides excellence in market research through their extensive experience in telecommunication working.

They focus on providing better research
techniques that enables to understand why and how customers make choices and a better research process, based on understanding the business and commercial context. Mobilink marketing executive further says that our research process is designed so that we take more care to understand our goals and constraints and use this to deliver better value to our customers. Market research does not sit in a vacuum. The design and outcomes of a market research project have to reflect not just the results from the data, but the way in which the organization could and should use the data.

Mobilink hires Custom marketing research firms to carry out specific projects

Marketing research process by Mobilink

Effective marketing research in Mobilink consists of 6 steps

Step 1: Identifying and defining the problem
Step 2: Developing the approach and establishing research design and strategy

Step 3: Collecting the data
Step 4: Performing data analysis
Step 5: Reporting and presentation

Step 6: Making a decision

Step 1: Identifying and defining the problem

The first step is to understand the question(s), which need to be answered. Then they work to identify and outline the marketing research project objectives and define the size and source of the survey sample. Next, the most appropriate marketing research methodology is determined. The innovative and actionable design approaches ensures that study is customized to meet the unique needs of the project.

 

 

Step 2: Developing the approach and establishing research design and strategy

Mobilink researchers gather data both by primary and secondary means. The second step is questionnaire development. Surveys are designed with the marketing research objectives in mind. It is made sure that the questions address the needs of the project and all surveys are pre-tested to confirm the survey, instructions and procedures are set up appropriately. The next step is to coordinate
data collection.

Step 3: Collecting the data

The data is collected via tele
phone, in-person, through the Internet or by using qualitative research. Marketing research studies are continuously monitored by the research team to ensure accuracy. As Mobilink is well aware of the fact that data collection phase is prone to errors and inaccuracies so the management tries hard to get that right. A major problem is getting biased and dishonest answers. So getting true respondents is crucial.

Step 4: Performing data analysis

The fourth step is to
analyze the data. Once collected, Mobilink utilizes their extensive statistical and analytical expertise to transform the data into clear, concise and actionable information. Key findings are summarized and a course of action is recommended.

Step 5: Reporting and presentation

The fifth step is to report the results. Our clients have come to rely on our reporting capabilities. Whether it's providing presentation-ready materials, formatting reports to meeting the internal standards or delivering reports via choice of media, every effort are made to give the insight that mobilink is the most innovative and progressive telecommunication company in Pakistan.

Step 6: Making a decision

Mobilink uses marketing decision support system to enable its managers to make better decisions, it is the system for collection of data, system, tools and techniques with supporting software and hardware which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action.

 

Mobilink's Mobile Intelligence Program

Mobilink's Mobile Intelligence program is a framework, which we apply across our own research and development as well as across all our mobile marketing and mobile media assignments for our clients and partners.

This approach is market proven and has been the foundation for the 100's of mobile products and services that we have developed and managed since January 2001. This framework underpins our research and thinking on Mobile Communities, Mobile Services for the Youth Market and the convergence of Mobile Marketing and Mobile Media

The Mobile Intelligence program has 5 key phases:


Discovery

· Understanding and identifying the key objectives of the mobile services.

· Mobile Marketing or Mobile Media or a combination of both?

· Research and due diligence


Strategic Planning

· Identifying and documenting timeframes, milestones and business case

· Integration with new or existing marketing and media activities

· Legal and compliance issues

· Strategic partners and distribution channels

Creative Development

· Creative and campaign development

· End user experience and interaction design

· Mobile media production and delivery

· Integrated mobile marketing and media services


Mobile Technology and Implementation

· Element Platform and Modules

· Telecom and messaging infrastructure

· Use of appropriate technology and mobile content (SMS/MMS/Java/ Ring tones/Icons)

· Hosting, management and ongoing technical support

 


Program Management

· Client Services Team

· End user support

· Ongoing reporting and analysis

· Proactive ideas and research

· Roadmap for client development

Mobilink Marketing Intelligence

Marketing Intelligence System is a method of collecting and organizing important business information into a useable form for important business marketing purposes. Marketing Intelligence System at mobilink is used for various purposes:-

· For the ability to forecast sociological and technological changes ahead of time and make the necessary internal changes to adjust to the changing environment of the consumer.

· The ability to track customers order history, their interests, and apply that information to better advertising and target marketing.

· The ability to detect competitor changes to enhance the company’s operation tactics in which area that competitor operates.

For Mobilink, the Intelligence Platform is a way of thinking about who they are, what they know, and what they think about the company and the competitive marketplace. When we begin an assignment, the Intelligence Platform is examined as it is. Questions like “What do we know? What ideas have been generated? What are the drivers that give the business its unique personality?” are answered in order to get the required information.

Mobilink views marketing intelligence with three very different components. It includes data, ideas, management experience, and judgments.

Source Categories

· Search engines, search utilities, etc.

· Financial information sources (Company filings / public & private company data)

· Newspaper and news resources

· Patent & trademark resources

· Government sources

· Trade & industry sources

· Demographic data

· Geographic / Country information & maps, satellite images, etc.

· Trade directories

· Legal information sources

· Competitive intelligence database software suppliers

· Other public information sources

 

 

 

 

Segmentation, Targeting,

&

Positioning


Segmentation

Mobilink, a telecommunication service provider emphasizes on being part of a value delivery process. The first phase, choosing the value, represents the ‘homework’ marketing must do before any product exists. First, the marketing staff must segment the market. The variables used for segmenting the consumer market demographic as well as psychographic:-

· Age

· Income

· Occupation

· Social Class

Targeting

The second step of choosing the value is selecting the appropriate target market. Mobilink’s target market varies with its different product lines e.g. the Mobilink Indigo brand mainly targets the corporate sector of the Pakistani community. The Jazz Octane is designed to attract youth; Jazz Budget is aimed at the middle and upper-middle class, while Mobilink World targets the masses with its diverse value added services.

It is important to understand that the future of marketing telecommunication services in Pakistan is going to be based on targeted segmentation strategies. Mobilink follows the target selection pattern of full market coverage and develops strategies as per the requirement of the different targeted segments. Mobilink has followed a consistent strategy of growing the network and ensuring that the products are available everywhere. This growth has been further strengthened with brand building activities that have ensured that Jazz and Indigo remain synonymous for premium telecommunication services for which they are close to the hearts and minds of the customers.

 

 

 

Positioning

Developing the offering’s value positioning is the last part of choosing the value phase of the value delivery process.

Mobilink’s catchphrase “Mobilink… Reshaping Lives” tells all about how they want to position the brand in the minds of their target customers.

The message they want to communicate to the consumer market is that Mobilink is the best solution for telecommunication and can be trusted to provide communication facilities all across the globe where no other service is available.

Competitive Forces



Competitive Forces

The industry structure of Pakistan’s mobile phone service providers is differentiated oligopoly; a small no. of large firms producing products partially differentiated along the lines of quality, features, styling, or services. There are 6 major providers of mobile service in Pakistan.

· Mobilink GSM

· Telenor

· Warid Telecom

· Ufone

· Paktel GSM

· Instaphone

Mobilink’s Market Share and Role in the Pakistani Market


Pakistan’s largest cellular provider maintains a tremendous growth rate despite the deregulated market. With the introduction of new products into the market and expansion through various rural and urban cities, Mobilink continues to capitalize on its position in the market. Despite complaints about quality and connectivity issues, the number of customers continues to grow.

Mobilink commands approximately 46.5% market share and is the market leader. This firm has the largest market share in the relevant product market, and leads the other firms in price changes, new-product introductions, distribution coverage, and promotional intensity. It is followed by Ufone which has 20.9% of the total Pakistan market. Warid claims a 15.7% share of the country’s wireless market closely followed by Telenor with 14%. Paktel had 2.7% of the users untill the end of 2006.



Competitive Strategies

Being the market leader, first, Mobilink must find ways to expand total market demand. Second, it must protect its current market share through good defensive and offensive actions. Third, it has to try to increase its market share, even if the market size remains constant.

Expanding the Total Market

Mobile phone tele-density has increased to 35 per cent with over 53 million users. The market growth still has 65 percent potential if not more, as Pakistan’s population is over 150 million. The dominant firm gains the most when the total market expands. Same is the case with Mobilink. It uses the following strategies to expand the total market:-

· Market-penetration strategy

· New-market segment strategy

· Geographical-expansion strategy

Defending Market Share

The rapid growth in mobile phone ownership has opened a new, mass marketing channel for marketers to reach their target market. Direct, responsive and measurable, mobile marketing is emerging as a key element of the marketing mix for Mobilink.

Mobile marketing integrates across the marketing mix to drive the effectiveness of both above and below the line activities. Delivering:

· Direct marketing channel to customers

· Clean, uncluttered environment to maximize the impact of the marketing message

· Context and time relevant marketing medium

· Instant response mechanism delivering true one to one communication

· A digital medium enabling deep campaign measurement and analysis


Mobilink marketers are deploying the mobile to strategically drive customer acquisition, retention and improved relationships to defend its market share. Campaign tactics include as an instant response mechanism to TV and poster campaigns, as a direct medium to drive awareness in targeted demographics and for instant win for on or off pack promotions.


Engaging and effective mobile marketing campaigns reflect an understanding of the existing mobile habits of the target market.

The unique and personal nature of mobile communication dictates an approach that is clear, actionable, engaging and instantly rewarding for consumers.

· How does the target market currently use mobile?

· The effective integration of the campaign across multiple elements of the marketing mix

· Ensuring a positive customer experience as a key driver for response and uptake

· Building long term value out of data collection

· Operating within the regulatory and legal guidelines for mobile marketing

Company Orientation

While a company has to keep a watch on its competitors, Mobilink strongly favors a customer-centered orientation and considers itself to be a customer-centered company. A customer centered company is in a better position to identify new opportunities and set a course that promises to deliver long-run profits. Same is the case with Mobilink. By monitoring customer needs, it can decide which customer groups and emerging trends are the most important to serve given its resources and objectives.



Marketing Mix The 4 Ps

 
Marketing mix

It is the set of marketing tools a firm uses to pursue its marketing objectives. McCarthy has classified these tools into four broad groups, called the four Ps of marketing:

1. Product

2. Price

3. Place

4. Promotion

Mobilink management understands the importance of the marketing mix and its decisions, which must be made for influencing the trade channels as well as the final consumers. The company prepares an offering mix of products, services, and prices, and utilizes a communication mix of advertising, sales promotion, events, and experiences, public relations, direct marketing, and personal selling to reach the trade channels and the target customers.

As a popular brand there is a lot that is expected from the company and the management strives hard to ensure that the promises are kept. Mobilink has been continuously investing in network resources and improving its marketing mix so that its vast customer base can be satisfied and expanded.

The four Ps of Mobilink’s marketing mix are explained ahead in detail.

 

PRODUCT


Mobilink Product Lines

Mainly there are four product lines of Mobilink with each having separate target markets and positioning.

· Mobilink Indigo

· Mobilink Jazz

· Mobilink World

· Mobilink PCO

Mobilink Indigo

Mobilink re-launched its postpaid services on the 11th of May, 2004 under the brand name, Indigo. Indigo ignited an evolution in the communication industry redefining the essence of the post-paid services in Pakistan. The brand delicately caters to the need of its customers, symbolizing the vision of connecting the subscribers in every aspect of life. Indigo says:

“In life you come across some exceptional people, who, like you, appreciate only the finer things in life. When it comes to creating a bond and staying connected to them count on Indigo for its unrivalled premium post – paid connectivity to get you through”.

Indigo Offerings

· Indigo

· BlackBerry

· Citi Mobilink Credit Card

· Call& Control

· Indigo Reward

· Indigo Genie

Target Market

Indigo targets the upper business class that is not concerned with the cost but want convenience, quality and a brand image that suits their personality. Who doesn’t want fun or music but want a brand that is “Competent” and Indigo is well satisfying the desires of its corporate customers. Introducing Blackberry connect through which businessmen can take

their office anywhere, share attachments etc. That is why Indigo customers are loyal to the brand and hesitate to switch to other connections. It can be said that Indigo enjoys the benefits of a monopoly in the corporate sector.

Mobilink Jazz

Jazz is an exciting and energetic offering of Mobilink, targeting specifically those enthusiastic teenagers, middle class and the youth market of the country, wishing to enjoy freedom, fun, lower rates and a package that matches their personality.

Jazz Offerings

· Jazz Budget

· Jazz Octane

· Jazz Ladies first

· Jazz Easy

· Jazz Share

· Jazz Load

· Jazz Advance

 

Target Market

Jazz Budget

Target market is those young boys and girls who want to stay in touch with their friends and family all the time but with cheaper rates. “Happy hours” with only 0.40 /30 seconds.

Jazz Octane

Targets those customers who want to have fun in their daily life........enhancing energy in their personality of youth with low SMS rates, discount rates and lower air time rates for three numbers.

Jazz Ladies First

Specifically designed for ladies (housewives) who along with their routine work want to have recipes, beauty tips, shopping discounts etc. (Also lower rates for special numbers.)

 

 

 

Jazz Easy

Jazz Easy customers can enjoy calling at amazingly low call rates for Mobilink numbers, they also benefit tremendously from the fabulous rates to call on any other network.

Jazz Share

An exciting new service targeting the Jazz family Members and allows them to share balance anytime, anywhere.

Jazz Advance

Targets Jazz Family Members with Additional balance benefit to help them talk some more!

Jazz Load

Jazz Load allows to recharge Jazz account in variable denominations.

 

Mobilink World

Mobilink World is the Value Added Services Brand for Mobilink. These services are not just fun, but also help its customers with their business needs. Whether it's a Bolo SMS they want to send to a friend or a ring tone they want to download to customize their phone with, Mobilink World has something special for them.

Mobilink World Offerings

· Mobi Safe

· Holy Sayings

· Corporate SMS

· Mobi Greetings

· SMS Scheduler

· SMS Game Time

· Bolo SMS

· Mobitunes

· G:i:30

· WAP Portal

· Mobilink Edge

· Mind Reader

· CricVideo

· International SMS Chat

· Ring Tone Club

Target Market

Mobilink World is the Value Added Services Brand for Mobilink and its target market is its whole customer base:

“Mobilink World services are not just fun, but also help you with your business needs. Whether it's a Bolo SMS you want to send to a friend or ring tone you want to download to customize your phone with, Mobilink World has something special just for you.”

Mobilink PCO

For the first time ever Mobilink has brought Mobilink PCO, a revolution in its own right that shall surely set apace the way its consumers communicate at the grass root level. Mobilink PCO is a fixed wireless phone that has special PCO functions capability. It consists of two LCD's that helps customers to keep a tap on the duration and the costing of the calls they make.


This latest venture from Mobilink is aimed at bringing prosperity and happiness for all the people throughout Pakistan. It's a complete self-employment solution for the people of Pakistan, fulfilling their dreams and aspirations.

Mobilink PCO does not only give its consumers higher returns on a very low investment but it also creates a world of better prospects in terms of a consistent source of income for them.

Mobilink PCO claims

“Wherever you are, throughout Pakistan whether the remotest deserts of Sindh or the spectacular peaks up north expect unparallel coverage from your Mobilink PCO”


 

 

With this unit customers experience even higher returns even though the investment in terms of capital is very minimal. Mobilink PCO no doubt is a world of opportunities within itself.

· Exceptional coverage and the ease of its wireless technology-carry it wherever you wish

· Load the free jazz card provided and embark on a successful business venture right away

· Benefits from after sales services

Parental Control Phone Disney D100

Mobilink and Disney have launched a parental-controlled mobile phone for children. This is the first time a cellular company in Pakistan has launched a mobile phone that will meet the communication and security needs of parents. The features of the new Mobilink-Disney D100 allow complete parental control on all outgoing and incoming calls and text messages. With the help of this new feature, parents can control who the child can correspond with, thus enabling parents to keep a check on the list of people the child is communicating with. Furthermore, the phone is easy to use as it provides the child with a one-key option to reach parents. It is also protected in that it does not feature Bluetooth or a camera and cannot access any type of multimedia content or website. The handset features embedded Disney ring tones, animated screensavers and wallpapers. The D100 will come with both four and twelve button keypads that are interchangeable to adapt the handset to the capability of the child. The handsets are available featuring popular Disney characters, including Mickey Mouse, Donald Duck, Winnie the Pooh and Tinker Bell. Mobilink services give parents complete control over their child’s phone expenditure thus making it a cost-effective resource.

The D100 has been developed for Disney by Dubai based Broad link Research, Disney’s licensee and partner. After conducting market research and realizing the growing needs of working parents to stay in touch with their children using mobile phones; Mobilink in collaboration with Disney has introduced this innovative solution to the Pakistani market. Moreover, changing social trends and feedback received by Mobilink through this research led the market leader to co-launch a safe and secure solution for parents.

 

Pricing

Mobilink is the undisputed market leader, which is why it is believed to be expensive as compare to other telecommunication service providers. Having the largest customer base in the country with the fact that its service is available in the remote areas of Pakistan as well, people rely on Mobilink services leading to the fact that Mobilink charges higher compared to its competitors.

Mobilink has the largest subscriber base in Pakistan with 24 million customers. Mobilink recently started GPRS services with RS. 500/ month of unlimited usage which is a treat for GRPS users who want to take their office with them. Mobilink provides them with this facility with fairly reasonable charges.

 

Tariff Details for Mobilink Products

Indigo

Indigo Freedom Plans

Details


Charge


Freedom Plan 1


Freedom Plan 2


Freedom Plan 3


Freedom Plan 3+


Freedom Plan 4

Weekend Tariffs


Rs/min


0.99


0.75


0.63


0.50


0.40

F&F Charges


Rs/min


0.99


0.75


0.63


0.50


N/A

Air Time Charges


Rs/min


2.00


1.50


1.25


1.00


0.60

Free Minutes


Monthly


0


100


400


800


1200

Line Rent


Rs


0


100


400


900


1500

SMS


Rs/msg


1.00


1.00


1.00


0.75


0.50

Free SMS


Monthly


10


15


20


25


30

 

 

 

 

 

 

Jazz

Jazz Budget Tariffs

Details


Rates

Outgoing calls to any Mobilink number during selected Happy Hour Window *


Rs. 0.40 / 30 seconds

Outgoing to 3 F&F Mobilink numbers


Rs. 0.75 / 30 seconds

Outgoing calls to any Mobilink number


Rs. 0.90 / 30 seconds

Outgoing calls to all mobile networks in Pakistan


Rs. 1.25 / 30 seconds

Outgoing calls to all Landline numbers in Pakistan


Rs. 1.25 / 30 seconds

SMS (Jazz to Mobilink)


Rs. 1.0 / SMS

SMS (Jazz to other networks)


Rs. 1.5 / SMS

 

Jazz Easy Tariffs

Details


Rates

Outgoing calls to any 3 Friends & Family Mobilink numbers*


Rs. 0.99 / min

Outgoing calls to any Mobilink Number


Rs. 2.10 / min

Outgoing calls to all mobile networks in Pakistan


Rs. 2.50 / min

Outgoing calls to all Landline numbers in Pakistan


Rs. 2.50 / min

F&F Numbers Offered


3 (Three)

SMS (Jazz to Mobilink)


Rs. 1.0 / SMS

SMS (Jazz to other networks)


Rs. 1.5 / SMS

F&F numbers addition/modification *


Rs. 15 + tax / Modification

 

Jazz Octane Tariffs

Details


Rates

Late Night Option - All Mobilink numbers **


Rs. 0.75 / min

Outgoing Calls to any 3 F&F Mobilink numbers*


Rs. 0.99 / min

Outgoing calls - Any Mobilink number


Rs. 2.50 / min

Outgoing calls - To Landline numbers (inclusive of interconnect charges)


Rs. 2.99 / min

Outgoing calls - Other mobile networks (inclusive of interconnect charges)


Rs. 2.99 / min

SMS - to any Mobilink number ***


20 paisas / SMS

SMS - to any other network in Pakistan


50 paisas / SMS

Daily Charges


Rs. 1.00

 

 

 

 

Jazz Ladies First Tariffs

Details


Rates

Outgoing calls - Any Mobilink number (1st Minute)


Rs. 2.50 / min

Outgoing calls - Any Mobilink number (2nd minute onwards)


Rs. 1.50 / min

Outgoing calls - Any Mobilink number ( 3pm-6pm )


Rs. 1.50 / min

Outgoing calls - To Landline numbers (inclusive of interconnect charges)


Rs. 2.99 / min

Outgoing calls - Other mobile networks (inclusive of interconnect charges)


Rs. 2.99 / min

SMS based Value Added Services Subscription


Rs. 30 / month

SMS (Push based Value Added Services)


Rs. 2.00 / SMS

SMS - Any mobilink number


Rs. 1.00 / SMS

SMS - Any other network


Rs. 1.50 / SMS

Pricing Strategies

Mobilink uses psychological pricing. They have set their target price on consumer perception of the product value e.g. outgoing calls at any 3 Mobilink numbers cost Rs.0.99/min. They haven’t set the price exactly on Re.1 but have used psychological pricing to attract customers. Mobilink is the only telecommunication network in Pakistan, which has reached maturity and is the market leader. This is why, there prices are somewhat higher than its competitors like PTCL Wireless and World Call Wireless (at introduction), Warid (at growth) and Paktel (at decline). They made use of psychological pricing also by offering free roaming facility during Hajj.

Mobilink is not using competitive pricing strategy because they are enjoying the market leadership in Pakistan. At maturity, as different market segments are targeted the prices must be offered in such a way that suits the targeted segments.

Mobilink is doing exactly the same. They have offered prepaid connections like Jazz Octane, Jazz Budget and Jazz Ladies First, which can be afforded by the people not having very high incomes. Though, the prices of these packages are relatively higher than the prepaid packages of other telecommunication networks but still attractive. Jazz Ladies First is a package designed specially for ladies through which they can shop, listen to beauty tips and recipes at relatively lower rates. Jazz Octane offers SMS rates as low as 25 paisas/msg and late night option rates at Rs 1.50/min and many other facilities at attractive rates. Jazz

 

Budget Package is an economical way to talk to any Mobilink number in Pakistan. It has announced another ground breaking first of its kind offer with the re-launch of Jazz Budget. The package has been launched with a fresh look and tariffs tailored specifically for the masses.

One of the key highlights of this package is the ‘Happy Hour’, which is bound to hit a chord with the nation, and has been developed keeping the communication needs of the Pakistani people in mind. Keeping in view the fact that Mobilink customers make 7 out of every 10 calls to a Mobilink number, the new package is specifically customized to offer customers the lowest rates to call the largest mobile network in Pakistan.

Mobilink is also offering postpaid connections with the name of Mobilink Indigo, popular within the business class. In this way, Mobilink is earning maximum profits by enabling people from different target segments to become a part of the largest cellular network in Pakistan. Jazz customers can now call US and a number of other Zone 1 destinations on Jazz local outgoing rate!

Mobilink is also offering "Zabardast GPRS Offer" which allows Mobilink customers to use GPRS just for RS.100/year.

 

 

 

 

PLACE

 

 

 

Place

Marketing Network

During the last 13 years, Mobilink has set up one of the largest cellular networks in the country. Currently, Mobilink is covering more than 5000+ cities and towns. This has involved an investment in the company of more than US$ 1 Billion. Mobilink have 50 Switches and more than 4,900 cell sites and the number keeps growing at a rapid pace. Mobilink also have deployed around 3,000 km of optical cable.

For Mobilink, last year was a bit difficult as they struggled to grow as quickly as the market itself. Today mobilink is confident that it has all the essential building blocks in place to take the dream forward and to play a leadership role in the rapid growth and development of telecommunication industry in Pakistan.

In 2003 mobilink invested upwards of US$ 200 million in improving their network and services. Mobilink have already put in 7 switches, over 820 cell sites and new IN platforms for better coverage and connectivity. In upcoming years mobilink is trying to invest in technological upgrades, superior customer services, and improved coverage.

Mobilink customers remain their priority and in an effort to enrich their lives Mobilink have put in place state-of-the-art call centers in Karachi, Lahore, Islamabad and in other cities of Pakistan where well trained staff is geared to answer complaints and queries, and a new billing system is in the process of commissioning. Mobilink is constantly expanding their nationwide franchise and distribution network and upgrading them to offer customer services so that the customers can find a Mobilink contact as near to them as possible.

Coverage

Mobilink provides the widest coverage network, covering more than 5000+ cities, towns, and villages across Pakistan. It connects over 24 million family members every second of the day with exceptional voice quality due to its broad coverage. The coverage is expanding day by day, and it is claimed by the management that soon the only other thing covering Pakistan more than Mobilink would be the clear blue sky.

 

 



The type of coverage service Mobilink provides is divided into three main categories:

· PHYSICAL PRESENCE (Mobilink has physical infrastructure in the area)

· INDOOR SPILLOVER COVERAGE (High coverage level in adjoining area)

· OUTDOOR SPILLOVER COVERAGE (Medium coverage level in adjoining area)

Nationwide coverage

Mobilink provide true nationwide coverage in more than 5000+ cities, towns, and villages across Pakistan. Mobilink provide its services in urban areas as well as towns and villages. In nationwide Mobilink provide services in following areas.

· Punjab

· Sindh

· Balochistan

· NWFP

· Capital

· AJK

· FATA

International Roaming

Along with nationwide coverage, Mobilink also provides true International Roaming in over 100 countries with more than 300 partner operators worldwide. The regions where Mobilink provide International Roaming are as follows. Mobilink’s roaming partnership with Thuraya has further enhanced international roaming coverage. Through satellite communication the Mobilink connection can be used in areas where there is no GSM coverage.

· United States

· Canada

· Caribbean

· Europe

· Middle East

· Africa

· Asia

· Australia

Mobilink International Partners

A list of recent partners is given below:

Sr. #


Country Name


Operator Name


Frequency

1.


Jamaica


Digicel


900/1800

2.


UAE


du


900/1800

3.


Cyprus


Areeba


900/1800

4.


N/A


GSM on the Ship


900/1800

5.


United Kingdom


T - Mobile


900/1800

6.


Maldives


Wataniya


900

7.


Switzerland


Orange


1800

8.


N/A


OceanCell


900

9.


Maritime Roaming


MCP


1800

10.


Mozambique


mCel


900/1800

11.


Senegal


Sonatel


900

12.


Panama


C&W


850

13.


Ivory Coast


MTN


900

14.


Oman


Nawras


900

15.


Brunei


DST


900

16.


Ukraine


UMC


900/1800

17.


Portugal


Optimus


900/1800

18.


Uzbekistan


Coscom


900/1800

19.


South Africa


Vodacom


900

20.


Argentina


CTI Movil


1900

21.


Jordan


Xpress


iDEN

22.


Uruguay


CTI Movil


1900

23.


Belgium


BASE


1800

24.


Sri Lanka


Mobitel


1800

25.


El Salvador


CTE Personal


1900

26.


Armenia


K Telecom


900/1800

27.


Saudi Arabia


Etihad Etisalat


900

28.


Tajikistan


Indigo (North)


900

29.


Italy


Wind


900/1800

30.


Germany


O2


1800


 

Distribution channel of Mobilink

Mobilink provide its service products directly to customers or with help of intermediaries involved in distributing its product. Distribution channel contain set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business users. Mobilink also distributes its product to end user with help of intermediaries as well as it distributes its product directly to customers.

Mobilink supplies its product range to intermediaries with involvement of its “Commercial and Sales Department.”

Mobilink authorizes limited number of dealers to deliver its service product. But Mobilink provides its prepaid cards to almost all the markets and consumer shops. Providing its prepaid cards in every corner of the city helps mobilink to satisfy the need of consumer and to gain customer satisfaction. However mobilink deliver its Sims to customer with help of Franchises, service centers, and sales offices. These Franchises, service centers, and sales offices are given by the right of providing its service product by Mobilink itself.

Distribution Strategy of Mobilink

There are three types of distribution strategies. First Intensive Distribution, second Extensive Distribution and third is Selective Distribution. However mobilink follow both intensive and exclusive distribution strategies. While providing its Jazz prepaid cards Mobilink follow Intensive Distribution strategy means that stocking Jazz prepaid cards in as many outlets as possible. While providing its service products (like SIM Cards of Jazz, SIM Cards of indigo and Mobilink PCO Sets as well as Prepaid cards) Mobilink follow Extensive Distribution strategy means that it gives limited number of dealers the right to deliver its product.

Logistic Management & Mobilink

In today’s global marketplace, selling a product is sometime easier than getting it to customers. Companies must decide on the best way to store, handle and move their products and services so that they are available to customers in the right assortment, at a right time, and in the right place. Physical distribution and logistics effectiveness has a major impact on both the customer satisfaction and company costs.

Mobilink also tries to be best in physical distribution and logistics effectiveness. Mobilink provides the most extensive network coverage footprint across Pakistan through an integrated technology infrastructure in more than 5,000 cities, towns, villages, and countless remote destinations, including International Roaming in 100 countries through 300 partner operators. Mobilink is best in logistic management and physical distribution from its competitors.

Logistic partnership and Mobilink

Companies must also work with other channel partners to improve whole channel distribution. The members of distribution channel are linked closely in creating customer value and building customer relationship.

Mobilink management builds logistic partnership to achieve customer value and building customer satisfaction with different courier services. The courier companies by which Mobilink has partnered are as follows:

· TCS

· OCS

· UPS

 

Third party Logistics & Mobilink

Most business perform their own logistics functions. However growing number of firms now outsource some or all of their logistics to Third Party Logistics providers.

Mobilink also use Third Party Logistic provider for transportation of shipment of its service products to warehouses, dealers or customers. Different courier service providers are the Mobilink third party logistic providers. The main reason for using third party logistic provider by Mobilink is that it is useful for Low Fixed Investments.

Mobilink selects, motivates & evaluates channel members thought Interviews, Financial standing, Training and Reports.

 

 

PROMOTION

 

 

 

Promotion

Companies can do more than make good products—they must inform consumers about product benefits and carefully position products in consumers’ minds. To do this, they must skillfully use the promotion tools of advertising, sales promotion, public relations, sales force, direct marketing, and personal selling.

Advertising Goal

The chief advertising goal of Mobilink is to increase its customer base and to stimulate more usage.

Mobilink is currently using:

· Information Advertising: To create brand awareness and knowledge of its Mobilink World brand.

· Reminder Advertising: To stimulate the repeat purchase of its Jazz and Indigo brands.

Advertising Budget

Since the competition is intense in the telecommunication market, Mobilink has a significant advertising budget. It is advertising heavily to be heard and to constantly remind its target market to go for Mobilink. However, Mobilink’s actual advertising budget was not disclosed by the management.

Advertising Media

Mobilink is using television, print, and radio advertising media to disseminate its message and to build a brand preference but the most preferred is television since this medium is the most powerful, reaches a broad spectrum of consumers and has the maximum customer impact.

· Radio: It has a relatively large listeners’ base and so is an effective way to communicate the message.

· Billboards and Print Media: The Company has come up with elaborate campaigns, billboards and posters to promote Indigo, their post-paid brand.

 

Advertising Campaigns

The advertising theme “Mobilink: It’s simply a way to communicate”, is designed to demonstrate the new service’s simplicity and convenience.

Along with its service debut, Mobilink launched a nationwide campaign composed of television commercials and print ads. The national campaign is supplemented by local and regional ad campaigns produced by the Mobilink licencees. The national print and broadcast ads are designed to be localized.

The success of Mobilink has not only to do with its increased offerings, but also has a great deal to do with the campaigns that Mobilink comes up with. The TV ads exude energy and liveliness, and an expressive color and lightning palette, the high frequency and visibility makes these advertisements noticeable which results into increased brand awareness and brand loyalty boosting sales.

Strong Brand Ambassadors: Mobilink in its advertising went on a different route (now copied by competitors) by starring the most charismatic superstars in its advertisements. The tested method of having a pretty face holding a Jazz card makes its advertising campaigns booming. Strings, Vaneeza Ahmad, Shaan, Iman Ali, Zainab Qayyum, Wasim Akram, and Shahid Afridi are some of celebrities associated with Mobilink.

The Indigo Campaign: In its Indigo campaign, Mobilink has made a conscious effort of strongly placing it on the “image” platform and mapping it in the prospects mind making it a prestigious brand. Interestingly, it re-enforces Mobilink’s early perception of being the brand for the image conscious (peer leader) which gives the impression that Indigo is an ‘enhanced’ step further in this direction.

 

The Jazz Campaign: The current prepaid Jazz campaign has brought Mobilink’s image to the masses and is more on the ‘functional’ platform. When competition was introduced in the Pakistani market, It was at this point that the true evolution of prepay began. It was more than apparent that every single customer was important and every single subscriber was vital. Almost immediately, the marketing and advertising improved; and a more conscious effort was made towards trying to reach out to every aspect of the consumer market. At first, Mobilink went a slightly different route, and instead of targeting the large youth market, continued to use it’s tried and tested method of having a pretty face holding a Jazz card. Iman Ali joined other famous models as being a Jazz Girl. But with the competition getting intense, Mobilink finally decided to raise the profile of Jazz. The tariff wars between the providers initially caused Mobilink to offer WAP on Jazz, and then to slash prices and improve its quality. Finally, in February 2006, Mobilink launched Jazz Octane, a package ‘designed for the communication needs and lifestyle of the Pakistani youth segment’. The belated foray of Mobilink into the youth market has met with promising early success, and the new package offers quite a bit. The early success of Octane has not only to do with its increased offerings, but also has a great deal to do with the campaign that Mobilink came up with. Perhaps most effectively and symbolically, the ad showed an old woman embracing the youthful abandon that Octane is shown to offer. It can be argued that the old woman’s name is Mobilink.

Later the introduction of such packages as Jazz Budget, and Jazz Ladies First has met tremendous success.

The Mobilink World Campaign: Mobilink World being the value added service brand for Mobilink has been started with an elaborate campaign with TV advertisements and print ads.

Sales Promotion

Mobilink uses different types of sales promotion method such as:

Consumer promotions

In order to kindle greater and quicker purchases Mobilink is carrying out the following consumer promotion activities including special deals such as:

· Indigo Freedom Plan: this deal offers certain benefits of which two are:-

o Friends & Family: This feature is available to the customers on any three Mobilink numbers (Jazz and Indigo) which can be added into F&F list by calling the help line at 111.

o Local Rates: According to this freedom plan across Pakistan, all call, across all networks are charged as local calls.

· Bonuses & Free Airtimes: Mobilink has been offering a number of bonuses to its consumers. An example of its current bonus offer is:

o Bonus on Recharge: Mobilink brings an exciting offer for its Jazz customers. Recharging their Mobilink Jazz connection between 18th May 2007 and 18th June 2007 will give them 100% free airtime (if the customers have not recharged in the year 2007).

 

 

Business and Sales Force Promotions

Mobilink also carries out business and sales force promotions on frequent basis.

· Specialty Advertising: Mobilink uses certain items imprinted with its logo as well advertising messages such as calendars, caps, radios, mugs, and candles. These items are given as gifts to customers by salespeople.

· Sales Contests: Mobilink actively carries out yearly sales contests in order to motivate the sales force to put in greater effort.

· Trade Shows: mobilink actively participates in trade shows in order to enhance its business promotions. It took part in the usual trade-show presentations of Asia Pacific Billing and Revenue Management Week. This event has a particularly interesting through line of taking services to understand markets. Topics like ‘Increasing Prepaid ARPU in Price Sensitive Markets’ and sessions on micro payment plans for low income markets were discussed in detail. The speakers included individuals from Mobilink GSM in Pakistan and Telemig Celular in Brazil.

Event Sponsorship

To enhance its corporate image, Mobilink practices event sponsorship. It sponsors movie premieres, concerts, sports events and community welfare. A few events sponsored by Mobilink are given below.

Golf Organized for Premium Consumers by Mobilink Indigo Brand

On May 4, 2007 Mobilink Pakistan organized an invitational Club Indigo Golf Tournament exclusively for Mobilink’s corporate customers. The golf tournament was organized at the Islamabad Golf Club by Mobilink Indigo Club. It aimed at bringing the top executives from the corporate sector at one of the most popular greens of the city. Expressing his views on the Indigo Club tournament, Zouhair A. Khaliq, the President and CEO of Mobilink said,

“Needless to say we are the leaders in the telecom sector, but this does not stop us from doing more for our customers, we strive to set higher standards for all in the business. Through Club Indigo we ensure the maximum level of customer satisfaction for our corporate accounts and establish concrete relationships through tailor-made services and special offers for our major clients.”

Club Indigo is responsible for building relationships with its exclusive clientele, through superior customer services.

 

Other Sports Events

Recently Mobilink also held an invitational tennis tournament in Karachi and has organized and sponsored various sports events across Pakistan, including cricket and Polo tournaments, providing quality entertainment to its customers.

Direct Marketing

Mobilink also uses direct channels to reach its customers without using marketing middlemen. These channels include direct mail, catalogues, tele marketing as well as e-marketing. Mobilink also uses a very unique technique to reach its customers directly.

SMS Marketing

Mobilink uses SMS marketing to send messages directly to customers. SMS marketing creates one-on-one communication with the market. Mobilink management believes that:-

“Today’s consumers are mobile and today’s marketing must reflect that.”

As SMS is one of the largest platform to reach consumers and almost every mobile phone is SMS enabled, this method has 100% penetration. SMS targets end consumers directly via their mobile phones and compels them to take action in order to enjoy a promotion, thus increasing the success rate of the brand. Plus, SMS is also a cost-effective way to communicate.

Electronic Marketing

Mobilink finds it electronic marketing very important and highly accountable.

 

Mobilink’s Website

Mobilink has paid special attention to the “context” & “content” of its website to encourage repeat visits.

Mobilink’s website not only has attractive design and layout but is also very interesting and easy to navigate.

 

 

 

 

 

 

Context:

The alluring color scheme used in the layout of website make it worth navigating. The choice of color itself has a table to tell.

· Indigo: a combination of basic blue suggests the vibes of blue dream.

· Red: illustrates passion of blood.

The savior is the icon (ball) that pitches in a rave of energy and suggest a motion for the brand ID. The logo which is not only Influential & Exhilarating but a sure head turner and is doing wonders in touching hearts and assuring absolute strength in the brand.

Content:

The content is also the heart of the website. It includes:

· Info

o News

o Weather

o Business

o Mobilink GSM updates

· Fun

o Mustt Tones (polyphonic tones)

o Double mustt tones (true tones)

o Music Videos

o Wallpapers

o Greeting Cards

o Java Games

o Animation

o Today’s Special

o Color Logos

o Mobile themes

· Sports

o Cricket Updates

o Football

o Golf

o Tennis

o Others

· Media

o TV Commercials of Mobilink

· Tools

o Yahoo

o MSN

o Google

o MSN Messenger

o Hotmail

o Gmail

Online Ads and Promotions

Online ads and promotions tools such as banners ads and search related ads are being used by Mobilink GSM. These ads are placed on targeted and frequently viewed websites. Banners are also placed on related websites such as those which support web to SMS. For example “smspk.net”

 

Mobilink’s Sales Force

Sales force serves as the companies personal links to the customers. Mobilink fast paced growth is fueled by the foundation of innovation and the relentless work of 4000 dynamic team members.

The sales force members are some of the best talent in the country and can be distinguished from others on the basis of their convincing power. The have the passion and the spirit to challenge the norms, and so they are the part of winning team.

Sales Force Objective:

The chief objective of Mobilink’s sales force is not only to encourage sales but also to diagnose customer’s problem and to propose an effective solution thus satisfying them completely. They play a strong role in improving customer profitability.

Sales force Structure

Mobilink’s sales force manages following types of sales force:

· Technical and Application Engineers

· Service Personal

· Distributor Sales Force

Sales Force Compensation

Mobilink has attractive compensation packages for its sales force. Along with a fixed amount i.e. salaries, they are also offered variable amounts such as lucrative commissions. Benefits such as paid leaves as well as accident benefits are also offered to the sales force.

 

Training the sales Representatives

Since Mobilink realize that a professional sales force plays a key role in developing and growing customers, it trains its sales representatives to effectively convince the customers by using effective screening techniques.

Success Factors of Mobilink

Mobilink is still the Market Leader and its success factors include:

· Innovative Products

· Excellent Customer Services

· Best Coverage among cellular operators

 

 

 

 

 

 

 

 

Conclusion

 

 

After the great research and paper work we are of opinion that a lot of people have shown their interest in these two Mobilink offers i.e. Postpaid & Jazz ladies first.

The motto of the company is “Connecting People" and “Reshaping Communications”

Mobilink is proud to be the leader in telecommunication industry.

 

SUGGESTIONS

&

RECOMMENDATIONS

 

 

 

Suggestions

We have a lot of suggestion for the company. Some of them are:

· Mobilink should work on network improvement.

· As far as their charges are concerned they are a bit expensive as compared to their competitors so we suggest that the charges should be reduced.

· Mobilink should attract maximum customers and satisfy them.

 

BIBLOGRAPHY

§ www.mobilinkgsm.com

§
www.mobilinkworld.com

§
www.google.com.pk

§
www.polarismr.com

§
www.prenhall.com

Final Report on Pepsi Cola International

2:31 AM Bee

TRATEGIC MARKETING

(Pepsi)



Presented to:




Presented by:

Mian Aamir
ACKNOWLEDGEMENT

 

We owe our gratitude to Allah Almighty whose shower of blessings and kindness has been on us through out the working on these pages. It is His help that we finally able to compile this document.

We are indebted to our respected teacher Mr. Jawad Saleem who’s indispensable and intricate comments on various aspects conjoined with motivation made us come forth holding such as project.

Executive Summary

 

Purpose of this project is to study the strategies which Pepsi is doing in Pakistani market for its product Pepsi cola. Pepsi International is a world renowned brand. It is a very well organized multinational company, which operates almost all over the world. In Pakistan It also has proved itself to be the No.1 soft drink.

Now days Pepsi is recognized as Pakistanis National drink Pepsi's greatest rival is Coca Cola. Coca Cola has an international recognized brand. Coke’s basic strength is its brand name. But Pepsi with its aggressive marketing planning and quick diversification in creating and promoting new ideas and product packaging, is successfully maintaining is No.1 position in Pakistan. Pepsi is operating in Pakistan, through its 12 bottlers all over Pakistan. These bottlers are Pepsi's strength. Pepsi has given franchise to these bottlers. Bottlers, produce, distribute and help in promoting the brand. Pepsi also launched its fast food chain KFC i.e. "Kentucky Fried Chicken.”

We also did analysis of the soft dink industry in Pakistan and world wide. The soft drinks set to become world's leading beverage sector. Global consumption of soft drinks is rising by 5% a year.

 

Table of Contents

Titles Page #

1. Introduction 01

2. Mission and vision statement 01

3. Facts about company 02

4. Pepsi in Pakistan 04

5. Product in spot light 09

6. Market analysis of soft drink 10

7. Pakistani soft drink industry 13

8. Industrial SWOT analysis 14

9. External Environmental factors 16

10. Internal Environmental factors 21

11. Pre-marketing Mix 25

12. Marketing Mix strategies 27

13. Conclusion 39

14. Suggestions 40

 

 

INTRODUCTION TO THE COMPANY

Pepsi International is a world renowned brand. It is a very well organized multinational company, which operates almost all over the world. They produce, one of best carbonated drinks in the world. Pepsi is a symbol of hygiene, quality and service, all over the world. Pepsi is producing Cola for more than 100 years and it has dominated the world market for a long time. Its head office is in New York.

 

 

MISSION STATEMENT

“To be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.”

 

 

VISION STATEMENT

“To be the world's best beverage company”. Being the best means providing outstanding quality, service, cleanliness and value, so that their every customer is contented and happy with their products.”

“To increase the value of their shareholder’s investment through sales growth, cost control and wise investment of resources.”

 

FACTS ABOUT THE COMPANY

 

1. Pepsi is a USA based public company whose stocks are available in New York.

2. Mountain Dew, acquired by Pepsi-Cola in 1964, switches its advertising and package graphics room hillbillies to action-oriented scenes.

3. The third Mountain Dew slogan appeared in 1973 "Put A Little Yahoo in Your Life."

4. PepsiCo acquired Pizza Hut, Inc. Pizza Hut was founded in 1958 by Dan and Frank Carney.

5. Taco Bell is was acquired by Pepsi. Taco Bell was established in the mid 1960s by Glen Bell.

6. PepsiCo purchased Kentucky Fried Chicken, the leader in the quick service chicken market. KFC was founded by Colonel Harland Sanders. Colonel Sanders began franchising the company in 1952. KFC was spun off along with Pizza Hut and Taco Bell businesses as Tricon Global Restaurants, Inc. in 1997.

7. PepsiCo purchases Seven-Up International, the third largest franchise soft drink operation outside the United States

 

 

EXECUTIVES

Ms.Indra K.Nooyi
Chairwoman, Chief Exec. Officer and Pres

Mr. Richard Goodman
Chief Financial Officer

Mr. John Compton
Chief Exec. Officer of North America and Member of Liquid Refreshment Beverage Oversight Council

Ms. Cynthia M. Trudell
Chief Personnel Officer and Sr. VP

Mr. Donald M. Kendall
Co-Founder

 

HEAD OFFICE

PepsiCo, Inc.
700 Anderson Hill Road
Purchase, NY 10577
United States.
Phone: 914-253-2000
Fax: 914-253-2070
Web Site:
http://www.Pepsico.com

 

 

 

 

PEPSI PAKISTAN

The market in Pakistan is surely dominated by Pepsi. It has proves itself to be the No.1 soft drink in Pakistan. Now days Pepsi is recognized as Pakistanis National drink. In 1971, first plant of Pepsi was constructed in Multan, and from their after Pepsi is going higher and higher. Pepsi is the choice soft drink of every one. It is consumed by all age groups because of its distinctive taste. Compared with other Cola in the market, it is a bit sweeter and it contributes greatly to its liking by all. Consumer’s survey results explain the same outcome and Pepsi has been declared as the most wanted soft drink of Pakistan.

Pepsi's greatest rival is Coca Cola. Coca Cola has an international recognized brand. Coke’s basic strength is its brand name. But Pepsi with its aggressive marketing planning and quick diversification in creating and promoting new ideas and product packaging, is successfully maintaining is No.1 position in Pakistan. In coming future Pepsi is also planning to enter into the field of fruit drinks. For this purpose it has test marketed its mango juice in Karachi for the first time.

When Pepsi was introduced in Pakistan, it faced fierce competition with 7up, lemon and lime drinks, which was established during 1968, in Multan. Pepsi introduced its lemon and lime, "Teem" to compete with 7up. It successfully, after some years, took over 7up, and this enhanced Pepsi's profits and market share. In Pakistan, Pepsi with 7up enjoys 70% of the market share where as the coke just has 20% markets share.

Pepsi is operating in Pakistan, through its 12 bottlers all over Pakistan. These bottlers are Pepsi's strength. Pepsi has given franchise to these bottlers. Bottlers, produce, distribute and help in promoting the brand. Pepsi also launched its fast food chain KFC i.e. "Kentucky Fried Chicken.”

FOUNDERS OF THE COMPANY

The company was initially owned by late Nawab Saddiq Hussain Qureshi & family till 1989. The Pepsi International franchise declared the management incompetent, thus, the company was handed over to a new set of personnel. The factory set up was reorganized & re‑established with expansion in various sectors. The Pepsi International did this by offering it to Mr. Jehangir Tareen, who formed up his new team. Mr. Jehangir Tareen is Nephew of General (late) Akhtar Abd‑ur‑Rehman.

EXECUTIVES

Board of Directors:

Mr. Akbar Akhtar Khan (Chairman)

Mr. Haroon Akhtar Khan (Chief Executive)

Mr. Gazi Akhtar Khan

Mst. Rasheeda Begum

Mrs. Mudina Akbar Khar

Mr. Saifullah Khan Paracha

Mr. Saeedullah Khan Paracha

 

Company Secretary

Mr. Amjad Jhanzeb Khan

Bankers

Allied Bank of Pakistan Ltd.

Citibank N.A.

MCB

NDFC

The Bank of Punjab

UBL

Legal Advisor

Cornehus, Lane & Mufti,

Nawa-i-Waqat Building,

4-Shahrah-e-Fatima Jinnah, LHR.

 

Auditor

Taseer Hadi Khalid & Co.

Chartered Accountants.

Mill

Kanjawani, Tehsil Samundri, District Faisalabad.

REGISTERED OFFICE

31 – N,

Gulberg II,

Lahore,

Pakistan.

UAN: 111-724-725

 

VARIOUS PRODUCTS IN PAKISTANI MARKET

PEPSI COLA, MIRINDA, TEEM, 7UP, MOUNTAIN DEW, DIET 7UP, DIET PEPSI, LAYS, KURKURE, AQUAFINA, PEPSI TWIST AND TROPICANA JUICES(introduced in Karachi only).

 

FINANCIAL SUMMARY OF THE COMPANY AND PRODUCT In Karachi

 

The Finance Manager was hesitant to supply any of the data as the company is private limited and the competitor Coca Cola is sniffing every inch of information of Pepsi Cola. With the help of the dealers and the retailers directly supplied by the Pepsi Cola and some rough figure given by the finance manager we became able to make the product cost of the Pepsi Cola and Estimated Income Statement for the month which comes into market as 9 rupees after going through many hands.

Precisely the exact figures were not given so an estimated income statement and price profit is made under given facts.

· 15,000,000 (15 million) crates of all the soft drinks are sold per year all over Karachi.

· 250ml regular bottle is taken as standard, 1 bottle of 1 Liter is taken as 4 bottles of 250ml. (250ml*4 = 1 Liter)

· 15,000,000/12 = 1,250,000 crates sold per month.

· 1,250,000*24 = 30,000,000 bottles sold per month.

· PEPSI share is approximately 65%.

· 30,000,000*65% = 19,500,000 PEPSI Share.

.

 

 

 

kurkuray

Pepsi twist

Pepsi

Mountain dew

 

PRODUCT IN SPOTLIGHT: PEPSI

 

 

Type:

Pepsi Cola

Manufacturer:

PepsiCo

Country of origin:

USA

Introduced:

1902

Ingredients:
Amount per 100mL
Energy 196.5 kJ
Fat 0 g
Sodium 0.98 mg
Carbohydrates 11.74 g
Sugar 11.04 g
Protein 0 g
Caffeine 10 mg

 

 

Market Analysis of Soft drinks

Soft drinks set to become world's leading beverage sector Global consumption of soft drinks is rising by 5% a year, well ahead of all other beverage categories, according to the new 2003 Global Soft Drinks Report from leading drinks consultancy Zenith International. Now challenging hot drinks to become the largest overall sector, soft drinks volume is projected to reach 467 billion liters in 2003, equivalent to 75 liters per person.

"Economic and climate variations around the world present complications for all soft drinks companies, but many have succeeded at weathering the elements," commented Zenith Research Director Gary Roethenbaugh. "As a combined category, soft drinks offer a powerful growth proposition. The unrelenting advance of bottled water and still drinks, coupled with the scale of carbonates, help place soft drinks on track to become the number one beverage sector in 2005.

Market share of soft drinks in beverage industry


Concern over diet has persuaded many consumers to scale down their consumption of sugary drinks, instead choosing ‘healthy’ products such as fruit juice and bottled water. Despite this shift in attitude, the majority of consumers around the world still favor carbonated soft drinks over these alternatives, according to latest data from TGI. In 11 out of 15 countries analyzed, it is revealed that consumption of carbonated soft drinks is higher than consumption of fruit juice or bottled mineral water.

 

 

 

 

 

 

 

Age factor affecting the sales

Despite the fact that people in the majority of countries still appear to favor carbonated drinks over the perceived healthy alternatives such as fruit juice and mineral water, some interesting behavioral shifts underlie these figures. In many markets, an increase in the number of people choosing diet or low calorie alternatives has contributed to the overall sustained popularity of fizzy drinks.

 

 

 

.

 

Pakistani soft drink industry

About 75 million cases a year for Pepsi alone; the total beverage market is about 120 million cases of which 65% per cent are Pepsi products; about 20 to 22 per cent are Coca-Cola products and Zum Zum cola and Mecca Cola, Amrit Cola and Muslim Cola... there are so many colas; there is RC and Double Cola which are franchised products. Altogether they have around 5 per cent of the market. Due to the Afghan and Iraq wars, they did get a little footing especially in the frontier and Islamabad area but still they are not hugely popular

 

Ø Total annual sale of soft drink in Pakistan 120 million cases

 

Ø Pepsi annual sales in Pakistan 75 million

 

Ø Market share of Pepsi 65%

 

Ø Consumption growth 1.7 % per year

 

 

 

 

 

 

Industrial SWOT analysis

Strengths:

The soft drinks market in Pakistan enjoyed dynamic growth over the review period in both volume and current value terms. Carbonates dominate the market in both the on-trade and off-trade with the lion's share of sales. Carbonates have become part of the culture in Pakistan and multinational companies have maintained their standards over the years to provide consumers with high-quality carbonated drinks. Off-trade sales of carbonates are higher than those of the on-trade but both achieved strong growth over the review period

Weaknesses:

Liquid concentrates and powder concentrates are both seasonal categories in the market and their sales peak in the summer in Pakistan. Both Rooh Afza and Jam-e-Shirin are traditional sandalwood drinks in Pakistan which are highly regarded by consumers. These drinks can be found in every home in Pakistan, especially in rural areas, throughout the summer and are the mainstay of liquid concentrates

Opportunities:

The government of Pakistan has reduced excise taxes to encourage soft drinks manufacturers and importers. The government also reduced other applicable taxes to promise more profits not only for soft drinks manufacturers already in the market but also to attract potential soft drinks manufacturers to invest in Pakistan. Tax reductions proved extremely beneficial to the soft drinks market in Pakistan and certainly encouraged and attracted multinational companies to invest in the country's soft drinks industry. The government also decided to tax the beverage industry on capacity of production rather than on actual production and that brave move encouraged soft drinks manufacturers to maximize production and reduce prices

Threats:

Increasing health and hygiene awareness among Pakistanis has greatly increased sales of fruit/vegetable juice products. Both the government and the media have started health awareness campaigns to make Pakistanis realize that consumption of fruit/vegetable juice is as essential as eating food. Fruit/vegetable juices are doing very well in both urban and rural areas. On the other hand, health and hygiene awareness has also led to increased sales of bottled water in Pakistan. Previously bottled water was targeted only at major cities where consumers are more health-conscious and aware of the difference between bottled water and tap water. Nowadays, health-conscious rural inhabitants also drink bottled water due to health concerns.

 

SWOT Analysis of PEPSI

SWOT Analysis, which is based on thorough review of the business (corporation, product category competition, customers and products), identities and evaluates the internal strengths and weakness of the companies well as its external threats and opportunities. The marketing mix is driven by the results of the SWOT analysis.

 

STRENGTH

Demand of Pepsi is more than its competitors.

Company has a very established name and a good reputation.

Pepsi has large market share than its competitors.

As the target customers of Pepsi is young generation, so Pepsi has more brand loyal customers.

Most of the customers are satisfied with the price of the Pepsi.

Pepsi is an international company and it has a very strong position internationally.

The environment of factory is very good and attractive.

Pepsi spends a lot of budget on its advertising.

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

Employees are also motivated.

Pepsi offers many discount schemes for customers time to time.

Pepsi Cola is sponsoring sports, musical concerts, walks.

The location of the Pepsi plant is utilized that all major markets of Lahore are within the reach of the Pepsi plant within 30-45 minutes.

 

WEAKNESSES

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

Pepsi target only young customers in their promotions.

Crown of the disposable bottle is not good.

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

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.

At the international level, Pepsi has a very strong competition with Coke. Coke has started its advertisements more effectively to increase their demand and it is a very strong threat for Pepsi.

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

HOW Internal and External factors affecting the strategies

Marketers need to be good at building relationships with customers, others in the company and external links. To do this effectively, they must understand the major environmental forces that surround all of these relationships. A company’s environment consists of forces outside marketing that affect marketing management’s ability to build and maintain successful relationship with the target customers. Every company should know the vital importance of constantly watching and adapting to the changing environment. As the world is moving fast today, no one can be certain about the future. The environment continues to change rapidly. By carefully studying the environment, marketers can adapt their strategies to meet new marketplace challenges and opportunities.

Some of the external and internal environmental factors that affect the marketing trend of the company are as follows:

EXTERNAL ENVIRONMENT

The macro environment consists of the larger societal forces that affect the microenvironment. The external factors are not under the control of the marketers; they can just observe them and make strategies in light of these factors. Some of these factors are given below:

Demographic Factors:

· Age

The requirements of different age groups are different. Pepsi should target that age group that consumes it the most and make promotional strategies according to their behavior. So their main target is the young generation.

· Education

A company has to make promotional strategies keeping in view the customer level. If the percentage of education is high in a country then through advertisements people can be made well aware of their product and can convey their message easily. Promotion and education has a direct relationship.

· Population Distribution

Population distribution means how much [population lives I urban areas and rural areas. In Pakistan 35 % population resides in urban areas and 65% population lives in rural areas. Pepsi is focusing on urban areas as people there are more inclined towards such beverage while people in rural areas are more inclined drinking lassi and desi drinks.

· Population Density

It means number of people in one square km per area. Karachi has the largest population density and Islamabad has less population density in Pakistan. Pepsi sales are more in Karachi as compared to the sales in Islamabad.

ECONOMIC FACTORS:

· Income and Income per Capita

If the income level or per capita income of the people increases, it will have a positive effect on the consumption of Pepsi.

· Inflation

If the country faces inflationary trend in the market, the price of the Pepsi will ultimately increase which will lower its demand.

· Consumption Behavior

Pakistan is a consumption oriented society. Due to demonstration effect the people are more inclined towards consumption than saving. So the people of Pakistan spent heavily on food items. Hence Pepsi has a good market share in the present circumstances.

· Income Distribution

It means how much is in the hands of rich and poor class. In Pakistan 10% rich people posses 93% of wealth and 90% people posses 7% of wealth. If there is balanced distribution of income in the country, the consumption of the people will increase hence increasing the sales of beverages as well.

· Payment Mod

As the use of plastic money is increasing the consumption pattern of the people are increasing. Although it will have a low affect on the consumption of Pepsi.

· Employment Opportunities

As employment opportunities increase the living standard of the people increase and the people consume more.

· Aggregate Demand

In case of Pepsi, aggregate demand of the product increases in the season of summer as the hot weather makes the consumers want to drink more.

· Aggregate Supply

In summer season to cope up with the increasing demand they have to increase the aggregate supply of their product.

· Economic Policies

Some of the economic policies which can affect the market of Pepsi are discussed below:

· Fiscal Policy

It is the policy of taxes. If heavy tax is levied on Pepsi then its price will rise having negative affect on its consumption.

· Monetary Policy

Monetary policy is made to restrict or increase the supply of money in the market. If policies are made to restrict the flow of money in the market, inflation can be controlled hence increasing the real income of the people which will ultimately affect the consumption of Pepsi.

· Price Policy

If price of Pepsi is increased its demand will decrease and vice versa.

· Income Policy

If income of the people will increase their purchasing power will increase and hence increasing the market share of Pepsi.

PHYSICAL FACTOR:

· Region

Pakistan is divided into different geographical regions. Marketing and sales of Pepsi is different in different geographical regions. In hot areas its demand is more.

 

· City Size

The cities which are densely populated the consumption of Pepsi is more.

· Climate

Pepsi is more suitable for humid or hot weathered countries like Pakistan. It is a source of refreshment when a person is thirty due to the hot weather.

· Infrastructure

Roads are the basic need for transportation of Pepsi from one place to another. Pepsi cannot open factories in every city of Pakistan so it has to transport it to other cities where Pepsi is demanded.

Electricity is the basic necessity for production of any product. Constant load shedding slows down the process of production which leads to less production and low market share.

TECHNOLOGICAL FACTORS:

· Research and Development

Through research and development quality of the product can be improved or better techniques or machinery can be developed which can increase the production. When technology is advance the supply of the product increase hence the company experiences growth in their business.

POLITICAL AND LEGAL FACTORS:

· POLITICAL STABILITY:

Whenever the government is considered to be stable, the business will flourish. If there is political stability in the country the policies and strategies made by Pepsi can be consistent to be implemented. Foreign companies are also keen to invest in those countries which are politically stable where they have no fear of decline in their market share or shut down due to sudden change of government.

· Mixed Economy

In mixed economy government and private sector both plays their role in developing the economy of the country. Investment by foreign companies like Pepsi is more likely to flourish in mixed economy.

 

 

 

· Laws Formulation

Government has given copy rights to Pepsi so that another company cannot sell their product by the name of Pepsi. The countries where laws are formulated, the strategies and activities of the company are different.

· Social Responsibility

Pepsi’s social responsibility is to provide its customers with clean and hygienic product so to do this they have increased the use of disposable bottles.

SOCIAL AND CULTURAL FACTORS:

· Psychographic

It is a combination of demographic and psychological factors. Psychological attributes mean how you perceive things. The company will focus on the behavior of consumers and make different changes in their product quantity or quality and in promoting their product so that they can attract the customers. Keeping in view that the behavior of different consumers is not alike they have to make their marketing strategies in accordance with their requirements so that they are convinced to buy the product.

· Religious

Religious factors can influence the market sales of Pepsi as it happened in 2003 when the U.S-led attack on Iraq, wide sections of society in Pakistan have banned American multinationals Coke and Pepsi

· Social Status

Pepsi is a well renowned brand. People who are brand conscious will not drink beverages of lesser known brands such as Amrat cola. They will try to show their status by drinking Pepsi which is known to all as a quality drink.

· Media

It is a very important factor for marketing. Media these days is a very effective way of inspiring people to buy a specific product. A good promotion can boast up sales to a great extent.

 

 

 

 

INTERNAL ENVIRONMENT

CUSTOMERS:

There are three types of customers

1. Consumer

2. Business

3. Government

Pepsi main focus is the consumers which are the end users. Pepsi 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.

CONSUMER BUYING BEHAVIOUR PROCESS:

Consumer buying behavior process is explained in some steps which are discussed below:

· Need Identification

The consumer is thirsty and he wants to quench his thirst.

· Information Search

He will search as to what will satisfy his thirst the most.

· Evaluation of Alternatives

He will now evaluate from the wide range of beverages available to him that which one of them is suitable to him in terms of quality, taste and is pocket friendly.

· Selection

After evaluating the product he will select a product.

· Purchase

The consumer will buy the selected product.

· Post-Purchase Experience:

It is the experience that the consumer gets after using the product. He will use the product again if he feels that his satisfaction after use is more or equal to the price of the product.

After looking at above mentioned example, we can get an understanding that a product should be so desirable that whenever a person identifies his need, he selects our product among various substitute products and he feel satisfies so that he retains the use of that product.

SUPPLIER:

He is the person who provides raw materials to the producers or sellers. Suppliers form an important link in the company’s overall customer value delivery system. They provide the resources needed by the company to produce its goods and services. PepsiCo International provides raw materials to Pepsi franchises in Pakistan. Supplier problems can seriously affect marketing. Marketing managers must watch supply availability i.e. supply shortages or delays, labor strikes and other events can cost sales in the short run and damage customer satisfaction in the long run. The company should monitor the price trends of their key inputs. Rising supply costs may force price increases that can harm the company’s sales volume.

No.


Material


Manufacturer/ Supplier(s)


Approved from

1.


Pepsi Concentrate


PepsiCo Inc. Ireland & PepsiCo Factory in Hattar Estate.


Approval at the factory

2.


Caps & Closures


Gatron Pakistan Limited


Approved form PepsiCo China.

3.


Plastic Bottles


Galtron Pakistan Limited


Approved from PepsiCo China.

4.


Glass Bottles


Balochistan Glass Mills

Tariq Glass Limited


Approved by PepsiCo China.

5.


Carbonated Water


Pakistan Bottlers (Pvt) Ltd.


Approved from PepsiCo U.A.E, Dubai.

COMPETITOR:

He is the person who is selling the same type of product in the market.

The marketing concept states that to be successful, a company must provide greater customer value and satisfaction than its competitors do.

Pepsi has a tough competition with Coca Cola while it faces a little competition with the local producers like RC Cola, Shandi Cola etc. The local producers hardly affect the sales of Pepsi in the market.

There are different types of competitor in the market. Some of them in which our product lies are discussed below:

 

 

· Close Vs Distant Competitor

Pepsi and Coke are close competitors. It means that both have direct competition in the market, their products are close substitutes for one another. Both the products can influence the market share of one another through effective strategies made to cope up with their competitors.

Pepsi cola and Nestle juice are distant competitors of one another. It means that their products satisfy the same want but they are in indirect competition with one another.

· Strong Vs Weak:

Coca Cola and Pepsi are strong competitors. In Pakistan Pepsi is the market leader and Coca Cola is its competitor. The Pepsi makes defense strategies so that it can maintain its position in the market. While Coca Cola is a challenger and it makes attack strategies so that it can become the market leader.

Pepsi and Shandi Cola are weak competitors. Pepsi is the market leader and Shandi Cola is the follower. Pepsi is not in direct competition with the Shandi Cola. It means that Shandi Cola has little effect on the sales of Pepsi.

DISTRIBUTOR:

Distributor maintains the image of the product and the sales in the market. If items are not properly placed by the distributor, it will disperse the market.

· CHANNELS OF DISTRIBUTION

The Pepsi uses the following two channels for the distribution of their products.

Indirect Distribution

Indirect distribution involves agency holders e.g. Riaz Bottlers Pvt. Ltd. Lahore franchise has divided its region i.e. Lahore and Kasur districts in two categories.

Local Zone

These are 62 agencies distributing Pepsi Products (250ml Sd) only around Lahore in their respective allocated sub zones.

Out Station Zone

17 dealers have been appointed by the bottlers for far distant places and in out skirts of Lahore and Kasur the dealers involved in direct distribution are only authorized to sell 250 ml (STD) bottle of Pepsi, Team and Marinda.

Direct Distribution

The factory vehicles operate on 45 direct routes in Lahore selling non-returnable bottles Litter, Pet and Can.

 

 

 

PRE-MARKETING MIX

SEGMENTATION

It means that you divide the target market in to different groups. Market consists of buyers and buyers differ in one or more ways. They may differ in wants, resources, locations and buying practices. Through market segmentation companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs.

Segmentation is done on basis of the previously mentioned external factors and the following:

· Behavioral Base

It is how people perceive a specific product, in short psychological analysis of a product. Pepsi all over the world is recognized as a quality drink and therefore people drink it without any hesitation whenever they are thirsty or otherwise. So marketers of Pepsi have made it a drink for all people and for diabetic people they introduced diet Pepsi.

· Cognitive Base

It pushes and pulls the consumer. If the outlook of Pepsi bottle is desirable and it attracts the consumer, he will buy it even if he isn’t thirsty.

TARGET MARKET

The market which is focused by the producer is called the target market. Targeting is to focus on the target market to attract the customers.

CHARACTERISTICS OF TARGET MARKET

The target market should have some following features.

· Accessible

It means that the target market which is focused should be accessible or easily approachable.

· Substantial

The target Market should be substantial. It should have a specific size where strategies can be made and implemented.

· Measurable

One should be able to measure the demand in the market.

 

· Comparable

The producer should identify that needs of different customers are different.

· Profitable

The target market should be profitable for the producer.

MARKETING STRATEGIES

There are different marketing strategies which are applied in targeting. Some of these strategies which Pepsi follows are discussed below:

· Mass Marketing

Big firms or companies say that everyone is their buyer whether they belong to rural or urban area, big or small country, rich or poor, adults and small children etc. Pepsi is mostly used by the young generation but it claims that it is moving towards mass marketing.

POSITIONING STRATEGY

It means that you try to give image to your product in the mind of the customers. To give a true and positive picture of the product is the best positioning. The company should promote its good points or comparative advantage which it has over its competitors

DIFFERENTIATION STRATEGY

In order to serve your target market you introduce different things to your product so that your product can be differentiated from other products.

· Basis of Differentiation

There are many bases on which a product can be differentiated but Pepsi has differentiated its product on the following base:

· Product Differentiation

Pepsi differentiate its product from its competitors on the basis of brand, quality and taste.

· Image Differentiation

Logo is used for image differentiation. Logo is what establishes a brand name in the consumer mind. It is the brands identification, signature and image. Pepsi has kept on changing its logo from time to time.

 

 

 

 

 

 

 

Marketing Mix Strategies

 

PRODUCT

The soft drinks market in Pakistan enjoys dynamic growth in both volume and value terms. Carbonated drinks have become part of the culture in Pakistan and multinational companies have maintained standards over the years to provide the nation with high-quality drinks. Rural areas of Pakistan have driven sales of carbonated drinks to new heights as more than 60 percent of the population resides in rural areas and young consumers are more attracted to advertising. Pepsi is the most popular and leader brand in the Pakistani market and is consumed by children and adults alike. Pepsi is a responsible corporate brand of Pakistan and have contributed a lot to the economy.

In marketing, a product is anything that can be offered to a market that might satisfy a want or need.
Until unless the product of the company is not strong in the market it can not survive in the longer run.

Pepsi has a product line comprised up of carbohydrate drinks, Lays and many other products in Pakistan. Pepsi’s product line satisfies consumer needs because Pepsi produces different types of soft drinks for different consumers.

The most popular product of Pepsi is Pepsi Cola. Due to its good taste Pepsi is a well-known product. Thus Pepsi Cola satisfies the consumer’s needs efficiently by launching a desired product.

 

 

 

 

 

 

 

 

New product development by Pepsi

Pepsi is doing new product development on frequent interval of times. The purpose of which is to refresh the brand. By new products and innovative ideas consumers can easily be attracted.

In following ways Pepsi is doing new product development.

New product category

Pepsi which is mainly a company of soft drinks After establishing a brand in Pakistan Pepsi came into several new product category. Lays, kurkuray and aqua fina, fast food restaurants are the examples of new product category.

Product line extension

Mountain dew is the most recent addition in the product line of soft drinks which is very popular especially among the youngsters.

However Pepsi launch its several variants with a minor difference on frequent interval of time.
There have been many Pepsi variants produced over the years since 1903, including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, Pepsi Ice Cucumber and Pepsi White in Japan.

· Line Filling

Pepsi claims that they are doing mass marketing but there was an unfilled gap in the consumers. The diabetic patient can’t use the regular Pepsi because of the sugar. So Pepsi had introduced diet Pepsi to fill the gap in their drinks as of then onwards even diabetic people became their consumers.

Incremental Improvement

Pepsi jumbo is an example of incremental improvement made by Pepsi. It was 2.25 litter bottle introduced few years ago in Pakistan. The purpose of this packing is to offer the Pepsi to a family for one or two time meals. Price of this pack is also kept low so that is can be affordable easily by the consumers.

 

 

 

 

PRODUCT line

SODA


WATER


CHIPS


JUICES

Pepsi cola


Aquafina


Lays


Tropicana

Teem




Kurkure


Mirinda






7up






Dew






Pepsi twist






P | L

R | E

O | N

D | G

U | T

C | H

T |


WIDTH

Different product line,

Soda

Diet soda

Purified water

Chips

Juices

 

LENGTH

Length includes number of items produced by Pepsi under each appropriate column of width. For example in column of soda drink marinda and team etc comes in.

 

DEPTH

The variants that are offered by Pepsi in terms of size and quantity,

1. 175 ml Mini Bottle

2. 250 ml Regular Bottle

3. 300 ml Tin

4. 1000 ml Regular Liter Bottle

5. 1500 ml Disposable Bottle

 

 

 

 

 

BRANDING:

Consumer view a brand name as an important part of the product and branding can add value to the product. A name, term, sign, symbol or design or a combination of these intended to identify the goods and services of one seller or group of seller and to differentiate them from their competitors.

 

· LOGO

Logo is what establishes a brand name in the consumer mind. It is the brands identify, signature, image and more often it is a logo that makes of breaks a product logo plays a very effective role to improve the product or brand. Pepsi kept on changing its logo from time to time along with the trade marks.

 

 

 

Evolution of Pepsi logo

 

1909-1939:


Delicious and Healthful

1939-1950:


Twice As Much For A Nickel Too

1950-1963:


The Light Refreshment

1953-1961:


Be Sociable

1961-1963:


Now It's Pepsi For Those Who Think Young

1963-1967:


Come Alive! You're In The Pepsi Generation

1967-1969:


Taste That Beats The Others Cold

1969-1973:


You've Got A Lot To Live, Pepsi's Got A Lot To Give

1973-1975:


Join The Pepsi People Feelin' Free

1975-1978:


Have A Pepsi Day

1978-1981:


Catch That Pepsi Spirit

1981-1982:


Pepsi's Got Your Taste For Life!

1983-1983:


Pepsi Now!

1984-now:


Pepsi, The Choice Of A New Generation

2000 The choice of a new generation.

2003 Zinda Dilon Ki Pehchan.

2006 Generation next.


PRICE

The amount of money charged for a product or service, or sum of the values that consumers exchange for the benefits of having or using the product or services. As price gives us the profit so this P is very important for business price of product should be that which gives maximum benefit to the company and which gives maximum satisfaction to the customer.

Following factors Pepsi kept in mind while determining the pricing strategy.

Ø Price should be set according to the product demand of public.

Ø Price should be that which gives the company maximum revenue.

Ø Price should not be too low or too high than the price competitor is charging from their customers otherwise nobody will buy your product.

Ø Price must be keeping the view of your target market.

The price of Pepsi Cola, despite being market leader is the same as that of its competitor Coca cola.

Some times, Pepsi places its customers into some psychological pricing strategies by reducing a high priced bottle and consumers think that they save a lot of money from this.

Prices of different bottles

Regular bottle e= rupees 10

Non Returnable/disposable= rupees 17

Liter Bottle=rupees 30

1.5 Liter Bottle= rupees 50

2.25 Liter Bottle= rupees 60

Analysis of the product in Pakistani market

According to a survey conducted by brand award association availability has been declared as the second best contributing factor in the success of Pepsi and it simply indicates that effectiveness of its distribution network which ensures its availability in every far off corner of the country. Affordability has been rated as the third best option and indicates consumer’s sensitivity to prices of daily consumption items. Quality has been considered as the lowest rated criterion and it is unusual. It indicates that counterfeit product is getting prevalent in the market. There are more than ten COLAS in the market and the popular acceptance of Pepsi is creating problems in its way of success. Pepsi will have to make a strong drive to close all illegal manufacturing and packing of cola carbonated drinks which has become common now-a-days and counterfeit cola replacements can be seen in every market

 

 

PRICING STRATEGIES

Competition‑based pricing approach

Pepsi has intense competition with the coca cola the largest soft drink company world wide. So its pricing cant exceed too much nor decrease to much as compared to the price of coca cola. If price of the Pepsi exceed too much from the coke peope will shift to the coca cola and on the other hand if the price of Pepsi decreases people might get the impression that quality of the Pepsi is also low.

Promotional Pricing Policy

Pepsi has offered promotional prices very frequently. Especially on some occasion Pepsi reduces its rates. like in Ramazan Pepsi reduces its rate unto 5 rs on 1.5 litter bottle.

Market Penetration Pricing Policy

Prices in beverage industry are determined by the consumer. In an economy like that of Pakistan, consumers tend to switch towards a low priced product. Pepsi objective is to target every consumer of the country so Pepsi has to set its prices at such a level which no one can offer to its consumers. That is why Pepsi Cola charges the same prices as are being charged by its competitors. Otherwise, consumers may go for Coca Cola in case of availability of Pepsi at relatively high price.

· DISCOUNTS

Pepsi Cola offers various discounts to those retailers who have the maximum sales of Pepsi products on daily, monthly and on seasonal basis. Same of the main discounts given to the retailers are as follows:

Quality Discount

Following are discounts offered by Pepsi.

1/10 Discount

I.e. one case of Pepsi is free on buying 10 cases of Pepsi at one time.

2/20 Discount

I.e. two cases of Pepsi are free on buying 20 cases of Pepsi at one time.

Seasonal Discount

Following are discounts offered by Pepsi.

Pepsi also offers seasonal discounts schemes by reducing price in Ramadan and on Eid. Pepsi also offers trade in allowance for retailers.

3 B – F Discount

I.e. some times, especially in the off-season duration, in order to increase the sale of Mirinda and Teem, 3-BF discount is given (i.e.) 3 bottles free on purchasing every case of Teem and Mirinda.

· INCENTIVES

Mainly two types of incentives are given by the Pepsi Cola:

Incentive to Retailers

Pepsi Cola provide various incentives to retailers on the best sales and achieving the predetermined sales targets. These incentives are in the shape of:

Deep Freezers

Return Tickets

Free Transportation Services.

Incentive to Dealers

The best dealer of the year is awarded with a brand new Suzuki Pickup. The second best is awarded with Motor Cycle. The third best is awarded with Return Ticket to Middle East.

 

· Credit

There is no credit system in the beverage industry. Every single bottle is sold on the cash basis.

· Special Offers

Pepsi Cola gives special offers to consumers on special occasions like Ramadan and Eid days instead of decreasing the price of the products, some special packs like Pakkora Mix, Chat Massala, or Free Drinks with Liter Bottles are offered.

PLACEMENT

Placement is accomplished through efficient and sufficient channels of distributions. These channels constitute systems of economic institutions through which producers deliver goods and services into the hands of their users. There are various channels through which Pepsi distributes its output.

 

· PRODUCT OUTFLOW

Pepsi Cola International has given franchises all over Pakistan. These companies have installed their plants in different parts of Pakistan with these specified areas and names e.g.

City


Name of Franchise

Karachi


Pakistan Bottlers

Lahore


Riaz Bottlers

Faisalabad


Punjab Beverage

Pepsi Cola provides consumers place utility which is, where ever and when ever you want it, you get it! Pepsi’s channel of distribution is very aggressive according to the consumers, manufacturers and distributors. Pepsi has 12 different units in different areas of Pakistan, which make the Pepsi easily available all over the country.

The cities in which the Pepsi units are:

Lahore

Sukkur

Karachi

Multan

Dera Ghazi Khan

Islamabad

Faisalabad

Quetta

Hyderabad

Sahiwal

Hattar

Pepsi is an international brand so it also has other units in other countries of the world like America, Europe, Afghanistan, Middle East and Central Asia. The big advantage for Pepsi in Pakistan is that it distributes the product through bottlers. So bottlers’ effort also contributes in the promotion of Pepsi.



CHANNELS OF DISTRIBUTION



Direct Distribution

 

Indirect Distribution

 

 

Local Zone

Outside Zone

Direct Routs – 45


Authorized Dealers - 17

Agencies – 62


· CHANNELS OF DISTRIBUTION

The Pepsi uses the following two channels for the distribution of their products.

1. Indirect Distribution

Indirect distribution involves agency holders e.g. Riaz Bottlers Pvt. Ltd. Lahore franchise has divided its region i.e. Lahore and Kasur districts in two categories.

Local Zone

These are 62 agencies distributing Pepsi Products (250ml STD) only around Lahore in their respective allocated sub zones.

Out Station Zone

17 dealers have been appointed by the bottlers for far distant places and in out skirts of Lahore and Kasur the dealers involved in direct distribution are only authorized to sell 250 ml (STD) bottle of Pepsi, Team and Marinda.

2. Direct Distribution

The factory vehicles operate on 45 direct routes in Lahore selling non-returnable bottles Litter, Pet and Can.

 

· SPECIAL POINTS

Other than these some special points are also being looked after by direct sales vehicles such hotels restaurants, public parks, big and reputed super stores etc. At Avari, Pearl continental, village, Seas magnificence etc. Pepsi Cola directly distributes the products.

Promotional Strategies

In Pakistan Pepsi is the most liked soft drink especially by young generation so the Pepsi cola company has devised such marketing strategy which attracted them. For this reason they started monitoring the habits of the generation. What they saw was that the students were crazy about cricket and usually liked to idealize them so in order to increase their sales the Pepsi cola company paid high amounts of money to the cricketers to act as their spokes men.

Some of the most famous cricketers in the modern era have acted as spoke persons also film stars have been acting as spoke persons.

The Pepsi cola company has after doing research also has introduced different size of bottles offered at lower prices so that every one can afford them. Also Pepsi Company has introduced other soft drinks including mountain dew, seven up and marinda. Pepsi company has introduced other flavors such as Pepsi twist, Pepsi max diet Pepsi.

Pepsi Cola Company has also become official sponsors of Pakistan cricket and has sponsored a number of series.

Also Pepsi has donated a lot to the earth quake victims and has launched a number of prize schemes to attract new customers

As a result of this marketing strategy Pepsi has become the largest seller of soft drinks in Pakistan and is slowly forming a monopoly in drinks market. Although many soft drinks like Pepsi have been introduced such as Amrit Cola, Quibla Cola offered at lower prices but none of these drinks have been able replace it.

Following are the strategies:

Comparative Parity Method:

As we have already discussed Pepsi pricing strategy is determined y consideration the strategy of coca cola so in this case also Pepsi ads are telecasted with the competition in coca cola which is its direct competitor.

Objective and task methods

When Pepsi introduced any new variant they have advertised it heavily. Objective of which is to make a space for new product in the market. We have seen the heavy advertisement of Pepsi max in previous days.

Seasonal advertisement:

Frequency of the Pepsi ads varies from time to time. When the season is on Pepsi do heavy advertisement especially in ramzan days or eid occasions but this advertisement not remain consist. We can hardly see the ads of Pepsi now as there is winter season.

CONCLUSION

Pepsi is a well renowned company and it has maintained its position well by understanding the client psychology, by ensuring quality, by introducing ingenuity in products, by enlarging its product base, by keeping economic factors in view and by intense and jazzy advertisements.

Whenever and where ever there is a spotlight event, Pepsi must figure in, like the one day international cricket matches between India and Pakistan many other such occasions. The key word for success in the Marketing World is to “remain in the spotlight” and that is what Pepsi is doing.

SUGGESTIONS

The marketing world is full of surprises. Who could imagine that Coca Cola would be overtaken by Pepsi? If Coke could be overrun by Pepsi, it would be no wonder that Pepsi might be overtaken by some other beverage. The need then is to combine quality with ingenuity. Along with that, the reputation of the company has to be kept robust.

Today we live in a fast moving world where novelty and newness count a lot. One cannot rest on one’s laurels. Fresh efforts, newness of approach must remain the cardinal principles of a well orchestrated marketing strategy and the campaign must be relentless. A continuous bombardment in advertisement would convince the clients that Pepsi is a part of their lives. In order to live with style, Pepsi ought to be an essential ingredient of one’s life.

The Pepsi is at its maturity stage and the sales of company are not growing very rapidly. Company is doing a lot of promotional activities to let the product remain in the market. It holds a large share of the market and whenever the sales state declining, the company can improve it by different promotional activities.

Marketers of Pepsi can try to improve sales by improving one or more marketing mix elements. They can cut prices to attract new users and competitor’s customers. They can also launch a better advertising campaign or use aggressive sales promotion to improve the sales. Thus, Pepsi is at its maturity stage.