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Pepsi Marketing Mix

Contributing to this industrial revolution among other industries were
Manufacturing, Agricultural, Automotive, Chemical, Hotel, Banking Business
Services, Real estate, Tourism and information Technology to name a few. But on
such industry that has been holding onto its share of the market since its
inception note in the USA – its birthplace – but all across the globe as well as
the Beverage Industry. It has introduced icons that very few are oblivious to.


The industry and its role in the Pakistan economy, the conditions under which it
is working and the effects it has on the consumers is to remain the concern of
this study. According to Richard D. Brown and George J. Petrol (1986), the
history of the Beverages industry start from 1886, when Atlanta chemist
“Doe” Pemberton developed a reddish – brown syrup with a smidgen of
cocaine (for medicinal purposes) to compete with the many patent medicines and
cure – all elixirs of that time. His company recommended it for the relief of
hangovers headaches, menstrual pains, and a host of other problem. One warm
summer day Pemberton took some syrup down to will is venerable at Jacob’s Drug
Store in Atlanta. An ounce of the mixture was put into a glass, which was then
filled with water and ice, creating the first Coca-Cola. The headquarters of
Coca-Cola, now listed by fortune as one of the 50 top corporations in the United
States, is still in Atlanta, Georgia. The actual sale and distribution of that
magic elixir – which, needless to say, on longer contains cocaine – is handled
largely by a number of independent bottlers. These bottlers buy syrup, mix it
with carbonated water, and distribute it to retailers in their area. The number
of retailers who sell Coke to the public almost exceeds counting. In this way a
company with a magic formula but limited capital spread its name around the
country and eventually around the globe. The organizational formula for
merchandising apparently also had a bit of magic. But, of course, the product
was one that people wanted, which is perhaps the first law of success in
marketing. Coke had been successful in establishing a strong loyal consumer
force, on whom it still relies to this very day. Dong business was no sweat once
the industry had set itself for good and the consumer’s tasted veered.


Everything seemed to go smooth enough until hell finally broke loose. Trouble
started creeping into the very foundations of coke who stated loosing a major
share of its market. Thanks to Pepsi. With virtually the same history Pepsi
started gaining ground and proved to be an excellent example of how
razzle-dazzle advertising sharp marketing and an efficient distribution system
can turn a loser in to a winner in a remarkably short period of time. Pakistan
today has a very competitive beverages market. Opportunities for this industry
to establish itself firmly in this country were grim at first because of the
country’s low per capita income and because of the business’ status depending on
consumer impetus. But much of it was more or less the same when the business
took a start in the USA as well. The Beverage industry has undergone a
revolutionary change during the last couple of decades. The form of processing
and the machinery used these days has developed and is very sophisticated.


Automatic and computerized plants have been installed in the industry thus
making it an industry which is dealing in million of gallons of beverages
yearly. Pakistan Beverages, the bottlers for Pepsi, and Coke bottlers National
Beverages claim that their primary goal is not to undermine the competition but
to expand the market as a whole. Market expansion, in fact, seems to be the
buzzword these days in the beverage industry. Analysts believe the potential
market in Pakistan is though to be enormous because the country’s per capita
consumption is as low as 14 bottles per year. Compare this with a 120 bottles
per year in the Philippines, and the scope for expansion becomes more than
obvious. HISTORY OF PEPSI COLA It starts with a small drug store in North
Carolina. This little store belonged to young chemist by the name of
“DOC” BROADHAM. He invented a drink that the customers called BROAD’S
drink. In 1903, Bradham got its drink registered formally by the name of PEPSI
COLA. He set his own company and kept its sales improving gradually. By 1909,
more then 250 bottlers in different American states had been allowed to sell
under the PEPSI COLA license. PEPSI