Pepsi Cola International

Multinational

company, which operates

almost all over the world
Introduced by Caleb Bradham as Brads
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

Products of PEPSI:
Pepsi
Diet

Pepsi
Mountain Dew
7up
Mirinda
Slice
Aquafina
Pepsi Max
Lays chips

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%

8% Local
Beverages

In Multan as well as
National Level

At National Level

Including Amrat
Cola, Macca Cola
etc

Market Share
16% Coke
Market Share
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

Distribution Model of Pepsi

Direct

Distribution system
Indirect Distribution System

Direct Distribution system

Pepsi uses its direct distribution system to
deliver supplies with
PIZZA
KFC

HUT

Indirect Distribution System

Shamim
&co

Distributor
s

Whole
sellers

Retailers

Customers

Sales Model& Channels

Shamim

& Co uses SPOT SELLING

MODEL.
Order bookers make use of a software
named as Sales & Distribution
Pro(SDP)

Process of order booking

Order Bookers

Retailers

Get Order

Update the Software

Bottles Delivered

Our Research work

We

gather information from different

personnels 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

Location:
Multan
Traders

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) Mazda
It can load the stock of 366 cases per day. 1
case=24 bottles of 250ml
2) Shehzor
It 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. Feets
Is enough.

Assets
Asset Name
Emp Regular
Emp Litre

Amount
250
400

No of Units
5000
1000

Assets
1250000
400000

Shahzore

747573

Master

500003

Security Pepsi

50000

50000

Body Master

90000

90000

Body Shahzore

42000

42000

Security Shezan

15000

15000

1061244

1061244

Stock Value

841662

841662

Cash in Hand

390954

390954

65000

65000

Market Credit

Bike

Initial Investment

5453436

Net Sales & CGS:

SKU

Price @
6000ml

units sold
(6000ml)

cost @
Net Sales 6000ml

CGS

Regular

330.015

3251637.79
9853
5

Liter

390.035

973 379504.055

354.96

345376.08

Pet 2.25

490.341

360

176522.76

467.91

168447.6

400

3413

1365200

366.81

333

122147.73

349

116217

287.63

27

7766.01

268.64

7253.28

230

460

213

426

175

66

11550

170

11220

Shezan

300

291

87300

250

72750

Tetra
Total
Amount

250

15

3750

235

3525

Pet 1.5
Pet
0.500
Pet
0.300
Slice
2.4
Water
1.5

5405838.3
5

2995341.55
304.003
9

385.01 1314039.13

5034595.6
49

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
Salaries

20000
100000

Diesel Expenses (Shipment)

21562

Diesel Expenses (Sales)

25875

Depreciation: