Post on 14-Jul-2015
Pepsi Cola International
Multinational company, which operates almost all over the world
Introduced by Caleb Bradham as “ Brad’s Drink” in New Bern, North Carolina in 1898
It is a symbol of
hygiene,
quality and
service, all over the world
Its main concern is to expand its market share from 72% to 100%
It is the second largest soft drink business in the world with
21% share of the carbonated soft drink market worldwide
29% in United States
Pepsi Pakistan
It has proved itself to be the No.1 soft drink in Pakistan
In 1971, first plant of Pepsi was constructed in Multan, and from there after it is going higher and higher
It faced competition with 7up , lemon and lime drinks and introduced “ Teem” to compete
It successfully, after some years, took over 7up, and this enhanced Pepsi profits & Market shares
Market share& Growth
Pepsi is operating in Pakistan, through its 12 bottlers all over Pakistan
Total annual sale of soft drink in Pakistan 120 million cases
Pepsi annual sales in Pakistan 75 million
Market share of Pepsi 76%
Market Share
Inclu
din
g A
mra
t C
ola
, M
acca
Co
la e
tc
8% Local Beverages
At N
ational Level
16% Coke Market Share
In M
ulta
n a
s w
ell
as
Na
tio
na
l L
eve
l
76% Pepsi Market Share
Competitors
Close 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
Distant 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.
Pepsi, Gormet and Amrat cola are weak
competitors. Pepsi is the market leader and
Gormet, Amrat Cola are the follower
Strong Points
Company has a very established name and a good reputation
Demand of Pepsi is more than its competitors
Pepsi has large market share than its competitors
Pepsi has a very vast distribution channel and it is easily available everywhere
Introduction to Shamim & company
It distribute products in whole of the southern Punjab, a territory that covers almost 150,000Sq.k.m.
Shamim & Co cater a population of near twenty million people through more then 22000 outlets
Shamim & Co were declared “Bottler of the Year” in the region for outstanding performance
Direct Distribution system
Pepsi uses its direct distribution system to
deliver supplies with
PIZZA HUT
KFC
Sales Model& Channels
Shamim & Co uses “SPOT SELLING MODEL”.
Order bookers make use of a software named
as “Sales & Distribution Pro”(SDP)
Our Research work
We gather information from different personnel’s namely current & x employees of Shamim& Co like “Mr. Hassan Numan ,“Mr. Mudassir(Former Marketing Executive)”
We visited “2” distributions operating under Pepsi in different geographical regions which are as follows:
There are overall nine (19) distributors of Pepsi to cover area of Multan. The distributor we visited first is “AWAN TRADERS”. It mainly serves the 30% of total Multan with the carriage of 15 vehicles
The area of Muzaffar Garh city is covered by total of 4 Distributors & the distribution we visited is “Superior Traders” which was operated by Mr. Malik Zulfiqar along with his son Naveed Ahmad Gujjar
Setting up Distribution
Infrastructure & Human Resource Requirements
No of employees Job Description
1 Individual Accountant
2 Individuals Storage
1 Individual Helper
6 Individuals 3 per loader vehicle
If each vehicle has the route of 150 shops per day & if the area comprises of 300 shops than 2 vans are required
The vehicles can be Mazda or Shehzor
Whose potential or loading capacities are given below:
1) MazdaIt can load the stock of 366 cases per day. 1 case=24 bottles of 250ml
2) ShehzorIt has the capacity to carry 255 cases of 250 ml bottle
Warehousing
The only requirement is that it should be completely shaded & for distribution which will cover almost 300 Shops as in our case the warehouse of
10 Marla=2725 Sq. Feet’s
Is enough.
AssetsAsset Name Amount No of Units Assets
Emp Regular 250 5000 1250000
Emp Litre 400 1000 400000
Shahzore 747573
Master 500003
Security Pepsi 50000 50000
Body Master 90000 90000
Body Shahzore 42000 42000
Security Shezan 15000 15000
Market Credit 1061244 1061244
Stock Value 841662 841662
Cash in Hand 390954 390954
Bike 65000 65000
Initial Investment 5453436
Net Sales & CGS:
SKU
Price @
6000ml units sold (6000ml) Net Sales
cost @
6000ml CGS
Regular 330.015 9853 3251637.795 304.003 2995341.559
Liter 390.035 973 379504.055 354.96 345376.08
Pet 2.25 490.341 360 176522.76 467.91 168447.6
Pet 1.5 400 3413 1365200 385.01 1314039.13
Pet
0.500 366.81 333 122147.73 349 116217
Pet
0.300 287.63 27 7766.01 268.64 7253.28
Slice 2.4 230 2 460 213 426
Water
1.5 175 66 11550 170 11220
Shezan 300 291 87300 250 72750
Tetra 250 15 3750 235 3525
Total
Amount 5405838.35
5034595.64
9
P&L:Initial Investment 5453436
Net Sales 5405838.35
CGS 5034595.65
Gross Profit 371242.7
Expenses
Daily Office 19640
Builty 87100
Labour 1000
Transaction with S & Co 4789
IT 5900
Electricity 5600
Vehicle 8980
Petrol 1875
Warehouse rent 20000
Salaries 100000
Diesel Expenses (Shipment) 21562
Diesel Expenses (Sales) 25875
Depreciation:
Empty (0.91% per month) 15000
Vehicles (0.34% per month) 4860
Total Expense 322181
Net Profit 49061.7
ROI Net Profit/Initial Investment 0.90%ROIC (for Year) 10.80%