Marketing Term Report

On Pakola

Team Members
Faraz Usmani
Faraz Imran
Mir Murtaza
Manoj Kumar
INTROCUTION & HISTORICAL BACKGROUND
Pakola is a line of fruit flavored soft drinks, originally introduced in Pakistan in
1950 by Haji Ali Muhammad. It is produced by Mehran Bottlers (Pvt) Ltd. It is the
first nationally branded soft drink of Pakistan. Hence its name Pakola meaning
'Cola of Pakistan.'

The original green color Pakola ice cream soda is still popular in Pakistan.
However, other Pakola flavours, like Pakola Lychee, have gained popularity.
Another famous type of Pakola is Pakola Orange, which is an orange soda with an
ice cream taste.

It is also available in most Asian shops in the U.K. The drink itself is a very bright
green color, much like the can, and tastes unlike most North American soft drinks.
It has a distinctive and strong taste.

Pakola have also launched their milk. Pakola brand name is owned by Teli Family
and currently Zeeshan Habib is the owner of Pakola carbonated drinks and Yasin
Teli, is the owner of Pakola flavoured milk. Yasin Teli is also the bottler for Pepsi
Co for Sindh and Balochistan province.
CORPORATE PROFILE
Pakola is one of the most popular brands in Pakistan. The brand was created on 14th August,
1950. As per our slogan, “DIL BOLA …. Pakola”, we believe that Pakola is the heart beat of the
nation and with its amazing taste holds the potential to ride the taste buds of the consumers at
home and abroad. Although the green drink “Pakola Ice Cream Soda” is anonyms with the name
Pakola, but that’s not all, Pakola gives sensation by bottling other fruity flavors namely Pakola
Orange, Pakola Lychee, Pakola Raspberry, Pakola Fresh Lime and Pakola Vino.

Our Quality Food Safety and Environment Standards

Mehran bottler is the 1st bottling plant is South Asia. Which has been certified to integrated
management system based on (ISO 9001: 2000), (ISO 14001: 1996) and (RVA HACCP)
standard. Our quality and food safety system follows the FDA GMP requirements and codex.
Our products are manufactured under strict CGMP and Hygiene controls.

Our Technical Team

Mehran bottlers has well experienced people in technical side. There experiences and on going
trainings make them more confident and prepare to face all challenges.

Painting the Globe Green

Pakola is Pakistan's national drink but its might is spread all over globe. It’s the only Pakistani
soft drink which is available in America, Africa, Australia, Afghanistan, Canada, Middle East,
New Zealand and The United Kingdom.

Production
Mehran bottlers operate one of the most modern can filling plant in Pakistan with a filling
capacity of 200 cans per minute. The plant is fully computerized and conforms to the highest
international quality standards. Apart from the above, Mehran Bottlers also operate a bottle
filling plant with a capacity of 240 bottles per minute. The plant can fill both glass and pet
bottles of various sizes.
Distribution
Pakola is distributed nation wide through our network of vehicles and distributors. The company
maintains a fleet of trucks for operations in the Karachi base market.

Human Resource
The company employees 300 personnel at its Karachi plant. Constant efforts are initiated by the
management to train and upgrade the employees and to provide better training and working
environment.

Products of the Company

Carbonated Soft Drink Mineral Water Flavored Milk Based

Beverage

 Pakola Ice Cream-  Vital  Pakola Milk

Soda  Ice-Cream-Soda
 Pakola Orange  Pina Colada
 Pakola Lychee  Mango
 Pakola Raspberry  Rose
 Pakola Guava*
 Apple Sidra
 Bubble Up
 Double Cola
 Diet Bubble Up
Analysis of Vision and Mission Statement of the Company

Vision (Actual) “Pakola has and will fulfill its promise to provide international
quality beverages made with the finest ingredients to its consumers and come up to their
expectations at all costs”.

Mission (Actual) “The company mission is to provide its consumer all over the
globe with premium quality beverages with a vast variety that guarantees consumer satisfaction
an also provide opportunities for growth to its employees and the communities in which they
operate”.

ANALYSIS OF MISSION

Component of mission Description Addressed or not?

statement
Customers Who are the firm’s customers? yes
Products or services What are the firm’s major products? yes

Markets Geographically, where does the firm no

compete?
Technology Is the firm technologically current? no
Concern for survival, growth, Is the firm committed to growth and yes
and profitability financial soundness?

Philosophy What are the basic beliefs, values, no

aspirations, and ethical priorities of the
firm?
Self-concept What is the firm’s distinctive competence no
or major competitive advantage?

Concern for public image Is the firm responsive to social, community, yes
and environmental concerns?
Concern for employees Are employees a valuable asset of the firm? yes
Competitive Profile Matrix

Pakola received a score of 1.95 in the competitive profile matrix. This low figure is
representative of Pakolas’ inability to leverage its competitive advantage of unique tasting
flavors successfully. This inability stems from the company’s lack of effective communication of
their offering and its uniqueness. This is one of the major mistakes companies make when
following a differentiation strategy, they assume that consumers will recognize the difference
that they offer. This is exactly the mistake that Pakola has made.

The areas where Pakola has taken a beating are in market share and distribution. From a strategic
viewpoint however, distribution is the area which Pakola should target in the short run if they
hope to achieve any type of success. Advertising programs that are basically demand-building
exercises are useless if the product has little market reach and is not meeting the created demand.

Therefore some recommendations are, before concentrating on marketing activities in the hopes
of increasing market share,
Pakola needs to strategically outsource their distribution setup to a distribution company such as
Muller and Phipps, with the expertise in how to effectively increase a company’s reach into the
market. In due time the company should build up its own sales teams so as to make distribution a
core competency of theirs. Yet they should trust an established distribution company in the short-
run to improve its product availability.
SWOT Matrix

Of the several strategies detailed above, we will now focus our discussions towards two of the
main strategies that should be undertaken in the near future;

1. Hire Muller and Phipps to handle distribution concerns

2. Introduce diet versions of current products

By allowing an experienced distribution expert like Muller and Phipps to handle its distribution,
Pakola can instead focus its short-term resources towards the structuring of its organizational
setup.
The issues with Payolas’ management setup are the root cause of its lackluster strategic business
performance, and must be addressed before the company can expect extended success and
profits.
The second strategy that they can enforce is the introduction of diet versions of their current
product portfolio. By tapping into this market they would be able to hit two birds with one stone.

They would be targeting those consumers whose lifestyles revolve around healthiness, and also
they would be targeting adults who wish not to drink extremely sweet sugary drinks.
BCG Matrix

Pakola bubble up

Pakola orange
 Market Description

Demographics

 Pakola in Pakistan views the age 13 to 25 group as its prime target market.
Pakistan with its rapidly growing population offers a promising prospect to
the company. Population of Pakistan increased with an average growth rate
of 3.1% during the 80’s and the current growth rate is 2.82% annually.*

 This provides an exciting opportunity for Pakola as the growth rate is

highest among the age bracket 13-25.

 The total population of Pakistan is 197 million according to most recent

census and out of them 64% is youth

 Out of 64% ,43% is of age between 15-35

 That is almost 55 million potential customers

Environmental Factors:

 Environment effects greatly on the product

 Pakistan’s environment is favourable for cold beverages

 According to a research,2.6 glass of soda is consumed daily by a person

 Pakistan has a hot and humid weather which increases consumption

Page |8
POSITIONING :
The company uses
emotional appeals such
as “Dil Bola Pakola” to
position its products
as a product of
the Nation. It is
the major national
brand that is giving
head on
competition to the
international giants,
and it has a brand
name in the minds of
its
consumers due to the
aggressive marketing
in the 90s that has
made consumer form
association with the
brand, the product still
has awareness thus
effective promotions
and
advertisements once
again can bring back
the market share
Pakola had in that era.
Pakola
owns much of its
market to the
customers’ patriotic
attachment to the soft-
drink, who
tends to go for the
green colored drink
which reflects
Pakistan’s flag.
Pakola has introduced
a number of new tastes
after the ice-cream
soda, and tastes like
Pakola Lychee,
Raspberry, Lime and
Orange exhibit that the
brand aims to increase
its
market by
introducing new
products which helps
it to differentiate it
from the
competitors.
Market Share
There are three key players operating in the country’s beverage sector. Pepsi Cola
International holds the biggest chunk in market share with 51 percent. The company
paid tax of Rs9.9 billion with a 55 percent share in tax contribution from the industry,
according to latest estimates. Coca-Cola Beverage Pakistan Limited holds 38.8
percent market share and tax share of 43 percent. It paid Rs7.8 billion in taxes.
Gourmet paid Rs0.3 billion in taxes with 10.8 percent market share and two percent
tax share.

 The comparison here showing the market share:

• 52% pepsi

• 43% coca cola

• 3% pakola

• 2% others

Target Market
 Pakola targets people of age 15-45

 Mostly people in rural areas are targeted

 The places with most food restraunts

 It uses concentrated marketing strategy

  Working class, middle class and upper middle class are targeted
effectively

Differentiation

 The Unique selling point that pakola already

have is it that it is the only ice-cream flavored
soda available in Pakistan

 The product is completely

produced in Pakistan

 It was the first national soda

drink of Pakistan
CONCLUSION

 Main area where we think pakola lacks is the production

of regular ( glass ) bottles.

 All of its competitors are producing regular bottles

 We have to set up a production plant for producing

regular bottles in order to compete against our

competitors

 Pakola used to produce regular bottles but has

discontinued in 2009 (source: Shahzain Usmani HR

manager Pakola)

1. Induct a creditable and capable Human Resource Function, capable of

2. Inducting a highly innovative and talented Marketing Department (which
currently does not exist in the organization)
This Marketing Department will:

• Carry out extensive, accurate and decisive market research laying strategic
importance to market intelligence, consumer insight and modern techniques of
marketing based on scientific research, and putting these to strategic use through
effective communication of these decisive elements with the strategic level
management.

• Exert itself to marketing the product to the already brand loyal consumers in
order to consolidate (and in the process also reacquire any of it’s lost market share)
them while also targeting newer potentially loyal markets in it’s attempt to gain
market share, but this targeting of the newer markets will only happen once the
‘Critical Distribution Issue has been resolved’ (which is one of the key reasons
why Pakola continues to remain stagnant or reclining when it comes to market
share)

• Outsource its Distribution function to Muller and Phipps, the best in distribution
in Pakistan, temporarily, to make it’s over-hauling easier to bring about and at the
same time