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Pepsi marketing plan and business strategy

As a student of proper marketing, we have asked to make a marketing plan for a business along using its regards to overall business strategy. For this function we've chose PEPSI and we will be discussing its procedures in Pakistan, PEPSI has been market innovator in drink industry since its kick off in Pakistan but bow a significant danger is been encounters by ambitious marketing strategies by Coke. Within the below pointed out lines we will be talking about the marketing ways of overcome such obstacles.

Marketing Plan & Business Strategy

Marketing plan and business strategy are two different things, business strategy or organizational aims give the direction that where this group will be heading and how exactly we are going to do business, in this sense business targets play the role of very fundamental principles upon which all the departments create their operational guidelines. On the other hand marketing plan is the tool to attain the business objectives, while business purpose tells "what" we will do marketing plan instructs "how" we will do that. This makes a specific marriage between marketing plan and business strategy, where business strategy performs the role of guiding arrows (Wison, Gilligan, 1999).

Since there are different kinds of business strategies, three of them are popular, cost leadership, differentiation and focus. Keeping this at heart there will be different marketing strategies if different organizations within the same industry opt for different business strategies. Competitor form same industry may have different business strategy thus their marketing plan will vary. Exactly where a marketing plan is manufactured it should have a definite understanding and website link with business strategy usually group will be going in one way and marketing section will be going in other direction resulting in complete failure (Aaker, 2008).

Components of a Marketing Plan

A good marketing plan can have several components, which range from industry examination to multimedia plan; however it depends from industry to industry and product to product that what a marketing plan will include, it also will depend on the problem accessible and urgency of the necessity. However here are few components that marketing should in normal circumstanced, addition and subtraction is dependent on the problem.

Company Analysis

Company analysis provides information about the current situation of organization, it remarks of advantages, weakness, opportunities and risks in front of the company, for this function SWOT analysis is always a good tool to utilize, BCG Matrix is also and good tool to guage the performance of company. Going more profound marketing plan can also or marketing audit report to judge the existing performance of marketing office and then also suggest the ways to boost it, there are extensive tools open to do it, details which is not needed here.

Industry Analysis

Industry analysis supplies the information about the overall industry environment, its dynamics and degree of competition. To obtain this information Infestation and Porter's five pushes model are widely used tools to get bird's eyeball view about the industry.

Customer Information

This is a high importance, high-risk and challenging part, it gives basic information about customers, their preference disliking, values, decision making behaviors, demographics and eating patterns of the merchandise. All this information is later found in construction of marketing plan, and it is also the essential brick for the segmentation part, If we as marketing expert neglect to know the customer properly, total marketing plan will lead to wrong decision making.

Competitor Analysis

This part also offers a comparatively high importance, gives the information about challengers, their talents, weaknesses, competitive advantage, business strategy, value proposition, placement and product features, customers' views about opponents and their marketing combination analysis. Having the correct information about rival, which is not necessarily a fairly easy this to do, can provide you a understanding of market situation and also helps to make better strategically movements.


One of the main and risky part of marketing plan is segmentation, after getting the client analysis done via detailed marketing research, market is split into heterogeneous segments, that's where company can make the error, since remaining marketing mix would depend of the segmentation, it has be to be achieved meticulously, any misinterpretation of the information can lead any component of the marketing combination towards wrong way.

2nd step in after segmentation is segment selection and making of online marketing strategy, there are different approaches towards collection of selection, one, more or all sections can be decided on for the target, and different marketing mix are created for each segment.

Marketing Mix


This includes the merchandise description, its working, its brand and positioning, its value proposition, how it is best than challengers' product, and what advantages it gives to customer for increasing their value for money. What image you want to produce regarding product in customer's brain. This may also include its packaging information and different presentation options can be given in this part.


This part deals with the prices of the product, how we will price that product, what is the partnership of price with overall placement, how is price is likely to be perceived, what are the discount offering and how we will bundle the price, these are questions which may be responded in this section.


This deals with channel of distribution, what channel is to be acquired, how we are going to handle intermediaries, what role complete seller and retailer will be playing the distribution of the merchandise, where we 're going open outlets, what is the criteria of outlet selection, what convenience we will give to customer and how we will make the option of the merchandise.


This part handles actually promoting the merchandise, this should discuss the sales campaign offers, long-term or short term promotional strategies, involved marketing communication strategies, media selection and its relationship with target market. Reach and success of each medium selected. A short press plan can also go along with this section.

Marketing Plan and Risks

There are several risk that one can face while creating the marketing plan, one of the chance is lack of required information, we need information from within company, we need information from industry & most importantly we need information from our competitors, this amount of information is not readily available, a while it is really hard to get secondary data, while never have sufficient information it is risky to make critical decision which puts the entire marketing plan on stake.

One another aspect of risk is the correctness and validity of information, secondary data is a good source but at exactly the same time this is a risky proposition to make your decision on the basis of the information which is doubted to be valid. The above mentioned both risk deals with industry information as well as competition information.

One another risk is also there which is lack of understanding of information, that mainly deals with the customer examination part and affects the segmentation that in effect affects the complete marketing combination, misunderstanding the research or taking the research into wrong direction are main reasons with this.

The final risk is the lack of management's consent on the marketing plan, sometimes marketing section works in on course and whole company works in other path, this risk also handles non-compliance of marketing plan with business goals.

Marketing Plan-PEPSI

PEPSI has been the marketplace innovator in cola industry in Pakistan, here their business strategy is low cost leadership, below shown marketing plan is manufactured keeping in mind the business enterprise strategy.

Company Analysis

PEPSI has been the market leader in drink industry in Pakistan; they have gained this position by leveraging first mover's advantages and then retained this position with its extreme marketing and route management techniques. Its advantages are a more developed brand name, a proper managed distribution channel, and strong financial support. Its weakness are failure to cope with local beverage makers as they take them softly and now they are becoming a threat, more over coke's extreme marketing is also a danger to PEPSI.

Industry Analysis

Beverage industry in Pakistan has been a highly competitive industry since the emergence of other player like Coke plus some local manufacturers. With almost zero switching cost, relatively very low differentiation in taste and wide selection of available substitutes makes the cola customer very hard to make brand faithful. Increasing advertising and operational cost along with every day increasing vitality of retailer making the competition more intense where price and brand is not the one factor which can provide them the success. Now the energy rests with customer and shop as there are many substitutes available to cola drink, not only direct substitutes but also indirect substitutes are also available when come to satisfaction of thrust.

Customer Analysis

Since company has been on mass online marketing strategy then everyone is a prospect customer, everybody who gets thirsty is a customer of PEPSI, cola refreshments are kind of product which is presented with food and guests, so the main goal is not fulfilling the thrust but having a bit more luxury in drinking alcohol. Keeping this thing in mind we come to learn that cola customer will be using this product on some special situations like family get together, or having food or delivering it to guests. So at while drinks are not presented in original container customer will be less brand concisions. Pakistani market is always been price sensitive, so is the truth with cola. Nonetheless it is highly influenced by the availableness factor.

Competitor Analysis

This is highly competitive market, with an increase of substitutes and zero switching costs. Over the last decade Coke has been a tough competition for PEPSI, with its aggressive marketing campaigns, increasing and extreme channel of distribution and a good placement coke is appearing a more developed extensively accepted and preferred brand especially in metropolitan towns. Another emerging rival is a local producer which is not actually a major menace for PEPSI but yes they have all the capabilities required to become and major rival, its brand name is Gourmet Cola, a private brand of an area bakery string, this chain gets being greatly accepted in metropolitan and its growing like anything

Segment Selections

Apparently there aren't much difference in the customer of cola, the same style is accepted everywhere in the some variation, there's a minor segment which is diet conscious and want a zero calorie cola drink. If we speak about the portion selection then company is going for and its has been choosing mass marking, standard marketing combination for everyone, for diet conscious customers diet Pepsi should be unveiled. Right now we will be talking about standard cola drink and its marketing.

Marketing Mix


The product is a standard cola drink, that satisfies the need of thrust and even more it works a drink to be offered the food and on get together occasions. It is positioned as a glass or two which relates to personal accomplishment, its concentration will be "I" being the non-public achievement. It will be placed as drink of children, the drink of successful junior. The aspect of thrills and emotions will be included in the positioning. It will be presented in various packaging, for example family pet bottle, half notice, one litter and 2. 5 litters, this packaging variation will increase and help its use on various situations.


Since it's been a higher price competitive industry, price of PEPSI will be stored at par of the industry, some discount rates will be released in the majority buying and on one litter plus more packaging. Since colas are damaged with the press of store, good supplier and shop margins will get to retailer and distributer, so that they can make sure the availability and push the product, since brand devoted is low in this product, shop push is definitely required and helpful in getting the required results.

Channel of Distribution

This part is one of the main parts of the whole marketing plan. Within Pakistan retailer gets the vitality in the route more than another industry, colas has more substitutes, low brand devotion and zero switching cost, customer will drink whatever cola brand is available on the retail shop, that circumstance gives more capacity to retailer. So we will be centering in the enhancing our durability in retail channel, building the associations with retailers, making sure the availableness and leveraging the exclusivity on retail shops, and providing them with more commission in order to keep up with the exclusivity and force the product to customer, once store push and exclusivity is achieved there will be no issue with customer to buy the product.


This is another high importance component of marketing plan; more target will be given upon this part as well. PEPSI will give attention to building brand or more somewhat brand devotion among youth by concentrating on its positioning and also by retaining brand recall. Increased sales offers will be offered during local occasions like EID etc. implemented and good spend on the press especially during the promotional period.

Mitigation Strategy

There are few elements in plan that are of risky, one the positioning factor that needs to be managed in a careful manner, the individual success positioning can turn back again, on the other palm Coke's positioning is "we" the family and get together, if placement can is not handled properly its can be a disaster. The second dangerous elements is the increasing vitality of merchants, we are in the same time exploiting the merchant vitality but on the other hands giving more capacity to them by implementing force strategy, if more and more power is directed at retailer then in the end they will be able to blackmail us on their own conditions. To take care of this risk brand should be build so strong that it can generate draw.

Plan's Connection with Strategic Objective

Business strategy is cost management, since PEPSI is a market leader is must maintain its position and at exactly the same time they want to keep your charges down. Now if we look at the marketing plan it targets the push strategy, building associations with retailers, providing them with incentives for drive and earning exclusivity on the retail out let us, if this plan is carried out well we can reduce out marketing cost without diminishing or even increasing on sales and market show. This plan also claim that PEPSI should get exclusivity on the top cash and bring retail stores like, METRO, MACRO & Hyperstar where customers buy in large quantities, if they're able to accomplish that their marketing cost will lower and sales will increase noticeably. You can claim that plan also supports the brand building which can be an expensive thing to do, I would answer that brand building and getting mindshare is something unavoidable, this isn't a luxury spending of marketing costs but it is in return creates the move for the brand and gives in the longer run.

Agreement and Plan Tracking

The success of the plan depends on the total consolidated work by the whole company that's the reason management's approval and consent will be required to get whole company on board. This plan will be presented to all stake holder of course, if management approves then all other departments will be focusing on the same course, for example if management want to lower cost they are do it with an improved management of supply chain, in the same way other departments will have their roles to experience in accomplishment of strategic objectives.

Success of the plan will be tracked at every execution step with continually monitoring, on the brand side studies will be conducted to screen the achievements of brand related targets like the surface of the mind brand recall, merchant romantic relationship management will be watched that ho successful we've been bringing sellers on boards and being successful exclusivity. A relationship of these traffic monitoring studies with overall market share and sales will be founded that will determine the success of this plan, if problem found and focuses on are not achieved then strategy will be review and necessary activities will be taken to improve the performance.


Making a strategic plan is a confusing this, task is to keep carefully the department on the record provided the top management while producing the workable and successful solution, at exactly the same time course of the other stake holders is also necessary to be in the same direction.

While every good care is used even then there are chance that plan is based on some misunderstanding of information required or required information is also not provided, they are the greatest issues that a proper marketer must face. For getting the plan did the trick a continuing monitoring is required on its execution part. Some very good strategies have a tendency to are unsuccessful while in execution, that is another care that a proper marketer should be careful about.

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