Professional Documents
Culture Documents
PEPSI VS COCA-COLA
Suraj Kumar, Anshu Bajwa, Amit Kumar, Beauty Kumari, Ram Gopal
INDEX
SL. NO.
TITLE
SOURCE OF THE
PROJECT
PAGE NO.
Acknowledgement
Pepsi:An Introduction
www.wikipedia.org
Pepsi:The History
www.wikipedia.org
www.pepsiarabia.com
5-7
Products Of Pepsi
www.wikipedia.org
Coca-Cola:An Introduction
www.wikipedia.org
9-10
Coca-Cola:The History
www.cocacola.com
11-13
Products Of Coca-Cola
www.wikipedia.org
14
Pepsi Vs Coca-Cola
A Comparison
www.versus.com
15
Pepsi Vs Coca-Cola
THE COLA WAR
www.slideshare.net
16-22
10
Pepsi Vs Coca-Cola
Which Cola brand is the
Better Investment?
23
11
Pepsi Vs Coca-Cola
PRESENCE IN INDIA
www.google.com
24-25
12
13
Pepsi Vs Coca-Cola
Marketing
Pepsi Vs Coca-Cola
Advertising Strategies
14
Pepsi Vs Coca-Cola
Conclusion
15
BIBLIOGRAPHY
26-27
www.google.com
28-31
www.google.com
32
33
ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals and organizations. I
would like to extend my sincere thanks to all of them.
I am highly indebted to the Teacher in Charge for his guidance and constant
supervision as well as for providing necessary information regarding the project
& also for his support in completing the project.
I would like to express my gratitude towards my parents for their kind cooperation and encouragement which helped me in the completion of this project.
I would like to express my special gratitude and thanks to industry persons for
giving me such attention and time.
My thanks and appreciations also go to my classmates in developing the project
and to the people who have willingly helped me out with their abilities.
INTRODUCTION
Pepsi is a carbonated soft drink that is produced and manufactured
by PepsiCo. Created and developed in 1898 and introduced as "Brad's Drink",
it was later renamed as Pepsi-Cola on June 16, 1903, then to Pepsi in 1961.
It is one of the most well-known brands in the world today available in
over 160 countries. It has an extremely positive outlook for India. This
reflects that India holds a central position in Pepsi's corporate strategy.
India is a key market for Pepsi co, and at the same time the company
has added value to Indian agriculture and industry. PepsiCo entered India in
1989 and is concentrating in three focus areas- Soft drink concentrate, snack
foods and vegetable and food processing.
Faced with the existing policy framework at the time, the company
entered the Indian market through a joint venture with Voltas and Punjab
Agro Industries. With the introduction of the liberalization policies since
1991, Pepsi took complete control of its operations.
The government has approved more than US$ 400 million worth of
investments of which over US$ 330 million have already flown in. One of
PepsiCo's key strategies was to develop a completely local management team.
Pepsi has 19 company owned factories while their Indian bottling
partners own 21. The company has set up 8 Greenfield sites in backward
regions of different states. PepsiCo intends to expand its operations and is
planning an investment of approximately US$ 150 million in the next twothree years.
The History
Pepsi was originally named "Brad's Drink", after its creator, Caleb
Bradham, a pharmacist in New Bern, North Carolina. It was created in the
summer of 1893 and was later renamed Pepsi Cola in 1898, possibly due the
digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to
create a fountain drink that was delicious and would aid in digestion and
boost energy
In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore
into a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The
next year, Pepsi was sold in six-ounce bottles, and sales increased to 19,848
gallons. In 1926, Pepsi received its first logo redesign since the original
design of 1905. In 1929, the logo was changed again. In 1929, automobile
race pioneer Barney Oldfield endorsed Pepsi-Cola in newspaper ads as "A
bully drink...refreshing, invigorating, a fine bracer before a race".
Bankruptcy
In 1931, the Pepsi-Cola Company went bankrupt during the Great
Depression- in large part due to financial losses incurred by speculating on
wildly fluctuating sugar prices as a result of World War I . Assets were sold
and Roy C. Megargel bought the Pepsi trademark. Eight years later, the
company went bankrupt again. Pepsi's assets were then purchased by Charles
Guth, the President of Loft Inc. Loft was a candy manufacturer with retail
stores that contained soda fountains. He sought to replace Coca-Cola at his
stores' fountains after Coke refused to give him a discount on syrup. Guth
then had Loft's chemists reformulate the Pepsi-Cola syrup formula.
application the description submitted to the USPTO was for a tonic beverage.
The federal status for the 1905 trademark is registered and renewed and is
owned by PepsiCo, Inc. of Purchase.
Rise
During the Great Depression, Pepsi gained popularity following the
introduction in 1936 of a 12- ounce bottle. Initially priced at 10 cents, sales
were slow, but when the price was slashed to five cents, sales increased
substantially. With a radio advertising campaign featuring the jingle "Pepsi
cola hits the spot / Twelve full ounces, that's a lot / Twice as much for a
nickel, too / Pepsi-Cola is the drink for you," Pepsi encouraged pricewatching consumers to switch, obliquely referring to the Coca-Cola standard
of six ounces a bottle for the price of five cents (a nickel), instead of the 12
ounces Pepsi sold at the same price. Coming at a time of economic crisis, the
campaign succeeded in boosting Pepsi's status. In 1936 alone 500,000,000
bottles of Pepsi were consumed. From 1936 to 1938, Pepsi-Cola's profits
doubled.
Pepsi's success under Guth came while the Loft Candy business was
faltering. Since he had initially used Loft's finances and facilities to establish
the new Pepsi success, the near-bankrupt Loft Company sued Guth for
possession of the Pepsi-Cola company. A long legal battle, Guth v. Loft , then
ensued, with the case reaching the Delaware Supreme Court and ultimately
ending in a loss for Guth.
Niche Marketing
Walter Mack was named the new President of Pepsi-Cola and guided
the company through the 1940s. Mack, who supported progressive causes,
noticed that the company's strategy of using advertising for a general
audience either ignored Americans or used ethnic stereotypes in portraying
blacks. He realized African Americans were an untapped niche market and
that Pepsi stood to gain market share by targeting its advertising directly
towards them. To this end, he hired Hennan Smith , advertising executive
"from the Negro newspaper field" to lead an all-black sales team, which had
to be cut due to the onset of World War II . In 1947, Mack resumed his efforts,
hiring Edward F. Boyd to lead a twelve-man team. They came up with
advertising portraying black Americans in a positive light, such as one with a
smiling mother holding a six pack of Pepsi while her son (a young Ron
Brown, who grew up to be Secretary of Commerce ) reaches up for one.
Another ad campaign , titled "Leaders in Their Fields", profiled twenty
prominent African Americans such as Nobel Peace Prize winner Ralph and
photographer Gordon Parks.
Boyd also led a sales team composed entirely of blacks around the
country to promote Pepsi. Racial segregation and laws were still in place
throughout much of the U.S.; Boyd's team faced a great deal of
discrimination as a result, from insults by Pepsi co-workers to threats by
the Ku Klux Klan . On the other hand, it was able to use racism as a selling
point, attacking Coke's reluctance to hire blacks and support by the chairman
of Coke for segregationist Governor Herman Talmadge . As a result, Pepsi's
market share as compared to Coke's shot up dramatically. After the sales team
visited Chicago, Pepsi's share in the city overtook that of Coke for the first
time.
This focus on the market for black people caused some consternation
within the company and among its affiliates. It did not want to seem focused
on black customers for fear white customers would be pushed away. In a
meeting at the Waldorf-Astoria Hotel , Mack tried to assuage the
500 bottlers in attendance by pandering to them, saying: "We don't want it to
become known as a nigger drink." After Mack left the company in 1950,
support for the black sales team faded and it was cut.
Current Situation
PepsiCo, Inc. is one of the most successful consumer products
companies in the world, with 2000 revenues of over $20 billion and 125,000
employees. It also became a part of PBNA in 2001.The company consists of: FritoLay Company, the largest manufacturer and distributor of snack chips; PepsiCola Company, the second largest soft drink business and Tropicana Products,
the largest marketer and producer of branded juice. PepsiCo brands are
among the best known and most respected in the world and are available in
about 190 countries and territories.
PRODUCTS OF PEPSI
Pepsi
Pepsi is a carbonated soft drink that is produced and manufactured
by PepsiCo. Created and developed in 1898 and introduced as "Brad's Drink",
it was later renamed as Pepsi-Cola on June 16, 1903, then to Pepsi in 1961. It
is one of the most well-known brands in the world today available in over 160
countries.
Miranda
Miranda is a brand of soft drink originally created in Spain, but with
global distribution. The word Miranda means "admirable, wonderful"
in Esperanto.
It
is
available
in
fruit
varieties
including
orange, grapefruit, apple, strawberry, raspberry, pineapple,
pomegranate , banana, lemon, hibiscus, Guarana, tangerine, and grape flavours
as well as Tamarind. A "citrus" flavour is also available in certain areas of
the Middle East.
Mountain Dew
Mountain Dew s a carbonated soft drink brand produced and owned
by PepsiCo. The original formula was invented in the 1940s by Tennessee
beverage bottlers Barney and Ally Hartman and was first marketed in Marion,
Virginia, Knoxville and Tennessee. The Mountain Dew brand and production
rights were acquired by the Pepsi-Cola company in 1964, at which point its
distribution expanded more widely across the United States.
7UP
7UP is
a brand of
a lemon-lime flavored
non-caffeinated soft
drink. The rights to the brand are held by Dr Pepper Snapple Group in the
United States, and PepsiCo (or its licensees) in the rest of the world.
INTRODUCTION
Coca-Cola is a carbonated soft drink sold in stores, restaurants,
and vending machines in more than 200 countries. It is produced by The
Coca-Cola Company of Atlanta, Georgia, and is often referred to simply
as Coke. Originally intended as a patent medicine when it was invented in the
late 19th century by John Pemberton, Coca-Cola was bought out by
businessman Asa Griggs Candler , whose marketing tactics led Coke to its
dominance of the world soft-drink market throughout the 20th century.
The company produces concentrate , which is then sold to licensed
Coca-Cola bottlers throughout the world. The bottlers, who hold territorially
exclusive contracts with the company, produce finished product in cans and
bottles from the concentrate in combination with filtered water and
sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to
retail stores and vending machines. Such bottlers include Coca-Cola
Enterprises, which is the largest single Coca-Cola bottler in North America
and Western Europe. The Coca-Cola Company also sells concentrate for soda
fountains to major restaurants and food service distributors.
The Coca-Cola Company has, on occasion, introduced other cola drinks
under the Coke brand name. The most common of these is Diet Coke, with
others including Caffeine-Free Coca-Cola , Diet Coke Caffeine-Free, CocaCola Cherry, Zero, Coca, and special versions with lemon, lime or coffee.
Based on Interbrand's best global brand 2011, Coca-Cola was the
world's most valuable brand.
The Coca-Cola Company believes our business has always been based
on the trust consumers everywhere place in ustrust that is earned by what
we do as a corporate citizen and by our ability to live our values as a
commercial enterprise, there is much in our world to celebrate, refresh,
strengthen and protect. Through our actions as local citizens, we strive every
day to refresh the marketplace, enrich the workplace, preserve the
environment and strengthen our communities. At the heart of our business is
the trust consumers place in us. They rightly expect that we are managing our
The History
The first Coca-Cola recipe was invented in a drugstore in Columbus ,
Georgia by John Pemberton , originally as a coca wine called Pemberton's
French Wine Coca in 1885. He may have been inspired by the formidable
success of Vin Mariani , a European coca wine.
In 1886, when Atlanta and Fulton County passed prohibition
legislation, Pemberton responded by developing Coca-Cola, essentially a nonalcoholic version of French Wine Cola. The first sales were at Jacob's
Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a
patent medicine for five cents a glass at soda fountains , which were popular
in the United States at the time due to the belief that carbonated water was
good for the health. Pemberton claimed Coca-Cola cured many diseases,
including morphine addiction, dyspepsia, neurasthenia , headache, and
impotence. Pemberton ran the first advertisement for the beverage on May 29
of the same year in the Atlanta Journal.
B y 1888, three versions of Coca-Colasold by three separate
businesseswere on the market. Asa Griggs Candler acquired a stake in
Pemberton's company in 1887 and incorporated it as the Coca Cola Company
in 1888. The same year, while suffering from an ongoing addiction to
morphine, Pemberton sold the rights a second time to four more businessmen:
J.C. Mayfield , A.O. Murphey, C.O. Mullahy and E.H. Bloodworth.
Meanwhile, Pemberton's alcoholic son Charley Pemberton began selling his
own version of the product.
John Pemberton declared that the name "Coca-Cola" belonged to
Charley, but the other two manufacturers could continue to use the formula.
So, in the summer of 1888, Candler sold his beverage under the names Yum
Yum and Koke.
After both of them failed to catch on, Candler set out to establish a
legal claim to Coca-Cola in late 1888, in order to force his two competitors
out of the business. Candler purchased exclusive rights to the formula from
John Pemberton, Margaret Dozier and Woolfolk Walker . However, in 1914,
Dozier came forward to claim her signature on the bill of sale had been
forged, and subsequent analysis has indicated John Pemberton's signature was
most likely a forgery as well.
In 1892 Candler incorporated a second company, The Coca-Cola
Company (the current corporation), and in 1910 Candler had the earliest
records of the company burned, further obscuring its legal origins. By the
time of its 50th anniversary, the drink had reached the status of a national
icon in the USA. In 1935, it was certified kosher by Rabbi Tobias Geffen,
after the company made minor changes in the sourcing of some ingredients.
Coca-Cola was sold in bottles for the first time on March 12, 1894. The
first outdoor wall advertisement was painted in the same year as well in
Georgia. The Cans of Coke first appeared in 1955. The first bottling of CocaCola occurred in Vicksburg, Mississippi , at the Biedenharn Candy Company
in 1891.
Its proprietor was Joseph A. Biedenharn. The original bottles were
Biedenharn bottles, very different from the much later hobble-skirt design
that is now so familiar. Asa Candler was tentative about bottling the drink,
but two entrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and
Joseph B. Whitehead, proposed the idea and were so persuasive that Candler
signed a contract giving them control of the procedure for only one dollar.
Candler never collected his dollar, but in 1899 Chattanooga became the
site of the first Coca-Cola bottling company. The loosely termed contract
proved to be problematic for the company for decades to come. Legal matters
were not helped by the decision of the bottlers to subcontract to other
companies, effectively becoming parent bottlers.
New Coke
On April 23, 1985, Coca-Cola, amid much publicity, attempted to
change the formula of the drink with "New Coke". Follow-up taste tests
revealed that most consumers preferred the taste of New Coke to both Coke
and Pepsi, but Coca-Cola management was unprepared for the public's
nostalgia for the old drink, leading to a backlash. The company gave in to
protests and returned to a variation of the old formula , with high-fructose
replacing cane sugar, under the name Coca-Cola Classic on July 10, 1985.
Twenty-first Century
PRODUCTS OF COCA-COLA
Coca-Cola
Thumps-up
Thumps Up is a brand of cola in India. It was introduced in 1977 to
offset the expulsion of The Coca-Cola Company from India. The brand was
bought out by Coca-Cola who re-launched it in order to compete
against Pepsi.
Sprite
Sprite is a transparent, lemon-lime
produced by the Coca-Cola Company.
States in 1961. This was Coke's response
in a primarily silver, green, and blue can
primarily green and blue label.
Fanta
Fanta is a global brand of fruit-flavoured carbonated drinks from
the Coca-Cola Company. There are over 100 flavours worldwide . The drink
debuted in Nazi Germany in 1941 and originally sold only in Europe.
Maaza
Maaza is a Coca-Cola fruit drink brand marketed in India and
Bangladesh, the most popular drink being the mango variety so much that
over the years, the Maaza brand has become synonymous with Mango. CocaCola has also launched Maaza in orange and pineapple variants.
Similarities
Pepsi-Cola and Coca Cola Classic are both carbonated cola beverages.
Sweetness
Pepsi tastes sweeter than Coca-Cola, This is the reason why many prefer
Pepsi over Coca-Cola in a blind test but may prefer Coke when drinking
an entire can.
Carbonation
Coca-Cola has more carbonation than Pepsi depending on what region you
are in. It was said that depending on where each one was made the amount
of carbonation in them will be different therefore proving that neither
Coca-Cola nor Pepsi have more carbonation.
The Cola
Wars are a
campaign of
mutually-targeted
television
advertisements and marketing campaigns since the 1980s to present between
soft drink manufacturers Coca-Cola Company and PepsiCo Incorporated .
According to Consumer Reports, in the 1970s, the rivalry continued to heat
up the market. Pepsi conducted blind taste tests in stores, in what was called
the "Pepsi Challenge".
These tests suggested that more consumers preferred the taste of Pepsi
(which is believed to have more lemon oil, less orange oil, and uses vanillin
rather than vanilla) to Coke. The sales of Pepsi started to climb, and Pepsi
kicked off the "Challenge" across the nation. This became known as the " Cola
Wars."
In 1985, The Coca-Cola Company, amid much publicity, changed its
formula. The theory has been advanced that New Coke, as the reformulated
drink came to be known, was invented specifically in response to the Pepsi
Challenge. However, a consumer backlash led to Coca-Cola quickly
introducing a modified version of the original formula (removing the
expensive Haitian lime oil and changing the sweetener to corn syrup) as Coke
"Classic".
The Beginning
1975 heralded the Pepsi Challenge, a landmark marketing strategy,
which convinced millions of consumers that the taste of Pepsi was superior to
Coke. Simultaneously, Pepsi Light, with a distinctive lemon taste, was
introduced as an alternative to traditional diet colas.
In 1983 Coke launched aspartame/saccharin blend Diet Coke. In
response in 1989 Pepsi-Cola introduced an exciting new flavor, Wild Cherry
Pepsi. Thus Diet Pepsi's 'The Other Challenge' campaign was based around a
54-46% lead over Diet Coke in independently researched taste tests in
Australia.
It was only in 1996 that Pepsi unveiled a revolutionary 'blue' look
worldwide 'to transform the image and attitude' of one of the world's bestknown brands. 'Pepsi Blue represents a quantum leap into the future and
redefines how the Cola Wars will be fought and won in the 21st Century.'
Competition
Many of the brands available from the three largest soda producers, The
Coca-Cola Company and PepsiCo are intended as direct, equivalent
competitors. The following chart lists these competitors by type or flavour of
drink.
Flavour/Type
PepsiCo
The Coca-Cola
Company
Cola
Pepsi
Coca-Cola
Diet Cola
Cherry-flavoured cola
Coca-Cola Cherry
"Pepper"-style
Dr Slice
Orange
Mirinda,
Tropicana Twister,
Tango,
Slice
Fanta,
Minute Maid
Lemon-lime
Teem,
Sierra Mist,
7 Up (in countries other than
US)
Sprite,
Lemon & Paeroa
Root beer
Barq's
Ramblin' Root Beer
Cream soda
Juices
Tropicana,
Dole
Minute Maid,
Fruitopia,
Simply Orange
Iced tea
Lipton,
Brisk
Nestea,
Gold Peak Tea
Sports drinks
Gatorade,
Propel
PowerAde,
Aquarius,
Vitamin Water
Energy drinks
AMP
Full Throttle,
NOS,
Relentless,
Monster
Mineral Waters
Aquafina
Kinley,
Dasani
Marketing Campaigns
Coca-Cola and Pepsi-Cola focused particularly on pop stars;
notable soft
drink promoters
included Mariah
Carey,
KISS, Tina
Turner, Britney Spears, David Bowie , Rod Stewart, Jim Varney, Elvis
Presley, Michael Jackson, Madonna, and Ray Charles (for Pepsi) and Whitney
Houston, Paula Abdul, Weird Al Yankovic , George Michael , Christina
Aguilera, Max Headroom, and Elton John (for Coca-Cola).
Coca-Cola
One example of a heated exchange that occurred during the Cola Wars was Coca-Cola
making a strategic retreat on July 11, 1985, by announcing its plans to bring back the original
'Classic' Coke after recently introducing New Coke.
Pepsi
Pepsi ads often focused on celebrities choosing Pepsi over Coke,
supporting Pepsi's positioning as "The Choice of a New Generation." Pepsi
generation was created focusing on the user of the drink, never the drink.
Coke always focused on the drink. Pepsi focused on the person using it. They
showed people riding dirt bikes, waterskiing, or kite flying, hang gliding
doing different things. And at the end of it there would always be a Pepsi as a
reward.
This all happened when color television was first coming in. They were
the first company to do lifestyle marketing. The first and the longest-running
lifestyle campaign were and still is Pepsi. In 1975, Pepsi began showing
people doing blind taste tests called Pepsi Challenge in which they preferred
one product over the other, and then they began hiring more and more popular
spokespersons to promote their products. In their hope to win the Cola Wars a
Concorde was painted blue with PEPSI written across it in white lettering. In
the late 1990s, Pepsi launched its most successful long-term strategy of the
Cola Wars, Pepsi Stuff. Consumers were invited to "Drink Pepsi, Get Stuff"
and collect Pepsi Points on billions of packages and cups. They could redeem
the points for free Pepsi lifestyle merchandise. After researching and testing
the program for over two years to ensure that it resonated with consumers,
Pepsi launched Pepsi Stuff, which was an instant success. Tens of millions of
consumers participated. Pepsi outperformed Coke during the summer of
the Atlanta Olympics - held in Coke's hometown - where Coke was a lead
sponsor of the Games.
Due to its success, the program was expanded to include Mountain
Dew, and into Pepsi's international markets worldwide. The company
continued to run the program for many years, continually innovating with
new features each year.
The Pepsi Stuff promotion became the subject of a lawsuit. In one of
the many commercials, Pepsi showed a young man in the cockpit of a Harrier
Jump Jet. Below ran the caption "Harrier Jet: 7 million Pepsi Points." There
was a mechanism for buying additional Pepsi Points to complete a Pepsi Stuff
order. John Leonard, of Seattle, Washington, sent in a Pepsi Stuff request
with the maximum amount of points and a check for over $700,000US to
make up for the extra points he needed. Pepsi did not accept the request and
Leonard filed suit. The judgment was that a reasonable person viewing the
commercial would realize that Pepsi was not, in fact, offering a Harrier Jet.
In response to the suit, Pepsi added the words "Just Kidding" under the
portion of the commercial featuring the jet as well as changing the "price" to
700 million Pepsi points
Coca-Cola and Pepsi engaged in a " cyber-war" with the re-introduction
of Pepsi Stuff in 2005 & Coca-Cola retaliated with Coke Rewards. This cola
war has now concluded, with Pepsi Stuff ending its services and Coke
Rewards still offering prizes on their website. Both were loyalty programs
that give away prizes and product to consumers after collecting bottle caps
and 12 or 24 pack box tops, then submitting codes online for a certain number
of points. However, Pepsi's online partnership with Amazon allowed
consumers to buy various products with their "Pepsi Points", such as mp3
downloads. Both Coca-Cola and Pepsi previously had a partnership with the
iTunes Store.
In Space
In 1985, Coca-Cola and Pepsi were launched into space aboard
the Space Shuttle Challenger onSTS-51-F. The companies had designed
special cans (officially the Carbonated Beverage Dispenser Evaluation
payload or CBDE) to test packaging and dispensing techniques for use in zero
G conditions. The experiment was classified a failure by the shuttle crew,
primarily due to the lack of both refrigeration and gravity.
The same goes for the companies flagship brands. Through 2009, Coca-Cola
commanded 17% of the U.S. soft drink market; Pepsi held only 9.9%. And
while both brands have been declining, Pepsi is doing so at a slightly faster
rate.
One interesting note not apparent in the above table above is that Coca-Cola
has raised its dividend in a slower, more consistent manner. Pepsi, on the
other hand, has significantly upped their dividend distribution over the last
few years.
Cokes stock price has grown in value by over 50 percent since the
beginning of 2009. Pepsis stock has grown by about 40 percent in
the same time.
In terms of market share, Coke owns the top two spots in the cola industry
Coke and Diet Coke- with Pepsis flagship cola coming in at third.
Pepsi does have a slight advantage over Coke in diversification.
Pepsi has snack food brands such as Frito-Lay and Quaker under its
umbrella. They also own the brands that make beverages such as
Gatorade, Tropicana and Naked Juices.
While Coke hasnt tapped the snack food market, they do have some
beverage diversification. Dasani bottled water, PowerAde and
Minute Maid juices are all under Coca-Colas umbrella.
COCA-COLA
Coca-Cola, the corporation nourishing the global community with the
worlds largest selling soft drink concentrates since 1886, returned to India in
1993 after a 16 year hiatus, giving new thumbs up to the Indian soft drink
market. In the same year, the Company took over ownership of the nations
top soft-drink brand and bottling network. Its no wonder our brands have
assumed an iconic status in the minds of the worlds consumers
Ever since, Coca-Cola India has made significant investments to build
and continually consolidate its business in the country, including new
production facilities, waste water treatment plants, distribution s ystems, and
marketing channels.
Coca-Cola India is among the countrys top international investors,
having invested more than US$ 1 billion in India in the first decade, and
further pledged another US$100 million in 2003 for its operations.
The Company has shaken up the Indian carbonated drinks market
greatly, giving consumers the pleasure of world-class drinks to fill up their
hydration, refreshment, and nutrition needs. It has also been instrumental in
giving an exponential growth to the countrys job listings.
With virtually all the goods and services required to produce and
market Coca-Cola being made in India, the business system of the Company
directly employs approximately 6,000 people, and indirectly creates
employment for more than 125,000 people in related industries through its
vast procurement, supply, and distribution system.
The Indian operations comprises of 50 bottling operations, 25 owned by
the Company, with another 25 being owned by franchisees. Apart that, a
network of 21 contract packers manufactures a range of products for the
Company.
On the distribution front, 10-tonne trucks open bay three-wheelers
that can navigate the narrow alleyways of Indian cities constantly keep our
brands available in every nook and corner of the countrys remotest areas.
On the other hand, Pepsi has always taken more risks, acted rapidly,
and was always developing new advertising ideas . Both companies have also
relied on finding new markets, especially in foreign countries.
In the foreign markets, Coke has been more successful than Pepsi. For
example, in Eastern Europe, Pepsi has relied on a barter system that proved to
fail. However, in certain countries that allow direct comparison, Pepsi has
beat Coke. In foreign markets, both companies have followed the marketing
concept by offering products that meet consumer needs in order to gain
market share. For instance, in certain countries, consumers wanted a soft
drink that was low in sugar, yet did not have a diet taste or image. Pepsi
responded by developing Pepsi Max.
These companies in trying to capture market share have relied on the
development of new products. In some cases the products have been
successful. However, at other times the new products have failed. For Coke,
changing their original formula and introducing it as New Coke was a
major failure. The new formula hurt Coke as consumers requested Classic
Cokes return.
Pepsi has also had its share of failures. Some of their failures included:
Pepsi Light, Pepsi Free, Pepsi AM, and Crystal Pepsi. One solution to
increasing market share is to carefully follow consumer wants in each
country.
The next step is to take fast action to develop a product that meets the
requirements for that particular region. Both companies cannot just sell one
product; if they do they will not succeed. They have to always be creating
and updating their marketing plans and products. The companies must be
willing to accommodate their target markets.
Gaining market share occurs when a company stays one-step ahead of
the competition by knowing what the consumer wants. My recommendation is
to make sure the company is always doing market research. This way they are
able to get as much feedback as possible from consumers.
Next, analyze this data as fast as possible, and then develop the new
product based upon this data. Once the product is developed, get it to the
marketplace quickly where time is a very critical factor.
Mountain Dew offers its third line extension with Mountain Dew LiveWire,
combining the unique citrus taste of Mountain Dew with a bold orange flavor.
Pepsi's blockbuster summer promotion "Pepsi Play for a Billion" gives
1,000 consumers the chance to play for $1 billion on a live television show
on The WB. A guaranteed $1 million prizewinner will be chosen and will then
have a chance to win $1 billion without forfeiting the $1 million prize.
In September, Richard Bay, a 42-year-old high school teacher from
Princeton, West Virginia, became a millionaire on "Pepsi Play for a Billion"
on The WB. Bay and the television audience then held their collective breath
to see if he would also win the billion dollars. Instead, his number was two
digits off the billion-dollar number, but Bay was still pleased with his cool
million.
2000: The popular Pepsi Challenge makes its return , and consumers across
the country let their taste decide the best cola and one-calorie cola. Helping
launch the Challenge is two of baseball's top sluggers Sammy Sosa and Ken
Griffey Jr.
On the airwaves, the "Joy of Cola" campaign is a hit as "Pepsi Girl" Hallie
Eisenberg rocks with pop star Faith Hill and perennial rockers KISS.
Among those doing the Dew is hip-hop artist Busta Rhymes, and Aquafina
launches its first-ever television advertising campaign.
2001: The popular "Joy of Cola" tagline gets an update, becoming the "Joy of
Pepsi." Three months later, Britney Spears stars in a blockbuster Pepsi
commercial that breaks during the Academy Awards. An hour before the
telecast, the high-energy spot debuts online, where more than 2 million fans
click their way to Britney's own version of the "Joy of Pepsi."
Thirsty consumers are invited to "discover a sensation as real as the streets,"
when cherry-flavored Mountain Dew Code Red is introduced.
Pepsi puts a little twist on a great thing, unveiling the first national TV
commercial for new lemon-flavored Pepsi Twist.
2002: In March, supermodel Cindy Crawford helps introduce a new look for
Diet Pepsi. The updated graphics better represent the brand's light, crisp,
refreshing qualities.
2004: Pepsi unveils five new TV commercials for Pepsi and Sierra Mist on
Super Bowl XXXVIII, making this the 19th straight year that Pepsi has
advertised in the big game.
On Super Bowl Sunday, Apple and Pepsi officially launch a historic
promotion to legally give away millions of free songs to Mac and Windows
PC users from Apple's iTunes Music Store.
On the Academy Awards telecast, Diet Pepsi stole the spotlight as the
countrys fastest-growing major soft drink bowed a new advertising campaign
with the tagline, Diet Pepsi. Its the Diet Cola. The zero-calorie cola brand
illustrates how it is the best option to go with food and social occasions,
much like its sister brand, Pepsi-Cola.
Two popular sportscasters help turn lifes everyday moments into a cause
for celebration in a new advertising campaign for Pepsi EDGE, the new cola
with full-flavored taste but half the sugar, carbs & calories of regular colas.
The campaign tagline, "This moment deserves a Pepsi EDGE," reminds
consumers that they can reward themselves with a Pepsi EDGE for
completing even the simplest of tasks.
Mountain Dew brings nostalgia back into pop culture as it introduces new
commercials featuring the classic Mad Magazine "Spy vs. Spy" characters
that will stop at nothing to get their Dew.
COCA-COLA
As the world's favourite drink, the world's most valuable brand and the
most recognizable word across the world after OK; Coca-Cola has a truly
remarkable heritage. From a humble beginning in 1886, it is now the flagship
brand of the largest manufacturer, marketer and distributor of non-alcoholic
beverages in the world.
Coca-Cola returned to India in 1993 and over the past ten years has
captured the imagination of the nation, building strong associations with
cricket, the thriving cinema industry, music etc.
Coca-Cola has been very strongly associated with cricket, sponsoring
the World Cup in 1996 and various other tournaments, including the CocaCola Cup in Sharjah in the late nineties.
Coca-Cola's advertising campaigns Jo Chaho Ho Jaye and Life ho to
Aisi were very popular and had entered the youth's vocabulary.
2002:Coca-Cola launched the campaign " Thanda Matlab Coca-Cola " which
sky-rocketed the brand to make it India's favourite soft-drink brand.
2003: Coke was available for just Rs. 5 across the country and this pricing
initiative together with improved distribution ensured that all brands in the
portfolio grew leaps and bounds.
Coca-Cola had signed on various celebrities including movie stars such as
Karishma Kapoor, cricketers such as Srinath, Sourav Ganguly, southern
celebrities like Vijay in the past and today, its brand ambassadors are Aamir
Khan, Aishwarya Rai , Vivek Oberoi and cricketer Virendra Sehwag .
day, both the brands have done their level best to convince the
people that one is better than the other.
Through this project we also discussed various differences that
exist between the strategies and techniques adopted by both of them
to sell out their product.
Therefore, I hope that the project has met its aim.
In fact, all of the battles have seen a conclusion....a victor and
a loser; but in the case of Pepsi & Coca-Cola, while both sides still
claim a victory, the jury is still out the public is still undecided and
the soda still stands in solitude.
As the bottom line conclusion, the battle of Coca-Cola versus
Pepsi does not seem to end. It is like they are arch enemies for each
other. Nevertheless, it is always interesting to see the market battle
between these two soft drink products.
Sources: www.google.com
www.wikipedia.org
www.slideshare.net
www.coca-cola.com
www.pepsi.com
www.investmentu.com
~~~~~~~~~~~~
The drugstore of Caleb Bradham, inventor of Pepsi, as portrayed in the "Bern New Bern"
exhibition in the Historical Museum Bern.
1940s advertisement specifically targeting African Americans, A young Ron Brown is the
boy reaching for a bottle.
Logo of Frito-Lay
Logo of Tropicana
Logo of Pepsi
Logo of Coca-Cola
A corner store in Goa,,India where the Coca-Cola signs advertise 200 ml bottles of coke at
five Indian rupees.
Coca-Cola founders Asa G. Candler and Dr. John S. Pemberton are seen together at
Asa G. Candler & Co. pharmacy, 47 Peachtree St., Atlanta in the only extant albumen
photograph from 1888. Also shown is the biography of Candler written by his son,
Charles Howard Candler.
Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola was first
distributed in 1888 to help promote the drink. By 1913, the company had redeemed 8.5
million tickets.
This Coca-Cola advertisement from 1943 is still displayed in the small city of Minden,
Louisiana.
Legended to be the first installation anywhere of the 1948 model "Boat Motor" styled
Coca-Cola soda dispenser, Fleeman's Pharmacy, Atlanta, Georgia. The "Boat Motor"
soda dispenser was introduced in the late 1930's and manufactured till the late 1950's.
{Photograph circa 1948}
Pepsi Vs Coca-Cola
Vs
Vs
Vs
Vs
Vs
Vs
Mock-up of Coke dispenser flown aboard the Space Shuttle Discovery in 1995, on
display at the Astronaut Hall of Fame.
Coke
and
Pepsi
cans
flown
on display at the National Air and Space Museum
aboard
STS-51-F
Indra
Krishnamurthy
NooyiCEO
of
PepsiCo
at World Economic Forum annual meeting in Davos, Switzerland, January 2010
Chairman
and
Chief
Executive
Officer (CEO)