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Coke Vs Pepsi 1

1. INTRODUCTION
The assignment focuses on analyzing and comparing two companies which belong to same sector or industry with a marketing angle. The purpose states that the study of the module Marketing Management needs to be implemented in virtual front by providing thoughtful process to the company chosen.

2. Two Companies In The Same Sector 2.1 About The Company: Coca Cola
Coca-Cola is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company, which is in the United States since March 27, 1944). It is a carbonated soft drink sold in the stores, restaurants, and vending machines of more than 200 countries.. Originally proposed as a patent medicine when it was invented in the late 19th century by John Pemberton, CocaCola was bought out by businessman Asa Griggs Candler, whose marketing strategies led Coke to its governing of the world soft-drink market throughout the 20th century. The company produces and offers 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 by combining it with filtered water and sweeteners. The bottlers then distribute and merchandise Coca-Cola to retail stores and vending machines. This includes 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 restaurants and food service distributors. The Coca-Cola Company has introduced on occasions, other cola drinks under the Coke brand name. The most common an used of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Coca-Cola Cherry, Coca-Cola Zero, Diet Coke Caffeine-Free, Coca-Cola Vanilla, and special editions with lemon, lime or coffee.

Mission, Vision & Values


The world all around us is changing. To continue to flourish as a business over the next ten years and beyond, the company must look ahead; understand the trends that will shape business in the future and move fast to prepare for what's to come. The company must get ready and be prepared for tomorrow today. That's what 2020 Vision is all about. It creates a long-term destination for business and provides a "Roadmap" for winning together with bottling partners.

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Cokes Mission
Cokes roadmap starts with a mission, which is lasting. It declares its aim as a company and serves as the standard against which company measures its actions and decisions.
To refresh and revive the world. To encourage moments of optimism and happiness. To create value and hence make a difference.

Cokes Vision
Companys vision a focus serves as the framework for its Roadmap and guides every aspect of business by describing what it needs to achieve in order to continue achieving sustainable, quality growth.
People: Be a great place to work where people are encouraged to be the best they

can be.
Portfolio: Bring to the world a portfolio of quality beverage brands that expect

and satisfy people's desires and needs.


Partners: Nourish a winning network of customers and suppliers, together we

create mutual, enduring value.


Planet: Be a responsible and answerable citizen that makes a difference by

helping to build and support sustainable communities.


Profit: Increase long-term return to shareowners while being mindful of our

overall responsibilities.
Productivity: Be a highly effective and fast-moving organization.

Cokes Winning Culture


Winning Culture of the company defines the attitudes and behaviors that will be needed to make its 2020 Vision a reality.

Live Its Values


Companys values serve as a plot for its actions and describe how it behaves in the world. Leadership: The courage and confidence to shape a better future 2

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Collaboration: Leverage collective and combined genius Integrity: Be real and authentic Accountability: If it is to be, it's up to me Passion: Committed and obliged in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do the best

Focus on the Market


Concentrate on needs of our consumers, customers and franchise partners Get out into the market and listen, observe,notice and learn Dominate a world view Concentrate on execution in the marketplace every day Be insatiably careful and curious

Work Smart
Act quickly Remain liable to change

Have the courage to change when needed


Remain constructively discontent and unsatisfied Work efficiently and effectively

Act Like Owners


Be accountable and liable for actions and inactions Steward system assets and concentrate on building value

Reward people for taking risks and finding better ways to solve problems
Learn from our results -- what worked and what didnt

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Be the Brand
Inspire creativity, passion, optimism and fun.

The Coca Cola system


The Coca Cola system comprises our Company and more than 300 bottling partners worldwide. Companys primarily manufactures and sells concentrates, beverage bases and syrups to bottling operations, which then produce a wide array of Coca Cola beverages. Our Company owns the brands and is responsible for consumer marketing initiatives. Our bottling partners, in addition to manufacturing the final branded beverages, also handle merchandising and distribution and work closely with customers grocery stores, restaurants, street vendors, convenience stores, movie theaters and amusement parks, among many othersto bring our beverages to consumers at a rate of 1.5 billion servings a day.

About The Company: Pepsi


Pepsi is a carbonated soft drink that is produced and manufactured on a large scale by PepsiCo. It was invented in 1883 and introduced as "Brad's Drink", it was later renamed as Pepsi-Cola on June 16, 1903. Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, in 1883 by Caleb Bradham He made it at his pharmacy where the drink was actually sold. It was later named Pepsi Cola, probably due to the digestive enzyme pepsin and kola nuts used in the recipe. Bradham searched to create a fountain drink that was delicious and would aid in digestion and boost energy. In 1903, Bradham moved and advanced the bottling of Pepsi-Cola from his drugstore to a rented warehouse. And that year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, leading to increase in sales to 19,848 gallons. In 1909, automobile race pioneer Barney Oldfield was the first celebrity to endorse and support Pepsi-Cola, describing it as A bully drink...reviving, invigorating, a fine bracer before a race. The advertising theme and slogan "Delicious and Healthful" was then used for the next two decades. In 1926, Pepsi received its first logo redesign and improved since the original design of 1905. However in 1929, the logo was changed again.

Vision Statement
Companys vision and focus is to continuously improve the economic well-being and quality of life for all PBV stakeholders. It defines stakeholders as all employees, its owners, its customers and its suppliers.

The Mission
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Coke Vs Pepsi 5 Companys aim is to maximize long term shareholder value by being an industry leader in terms of growth, profit, and customer service. Company does this by:
Offering, assisting and expanding portfolio of relevant brands

Best in Class customer service and partnerships

A supply chain which is cost efficient and customer focused

A relentless focus on product quality, continuous improvement, food safety and trademark protection to benefit all of our stakeholders

Employees who are valued, motivated, capable and accountable

3. Marketing Mix
Marketing Mix is the set of marketing tools that the firm uses to pursue its marketing objectives. Marketing mix has a classification for these marketing tools. These marketing are classified and called as the Four Ps and these are Product, Price, Place and Promotion. The most basic marketing tool is product which includes product design, quality, features, branding, and packaging. A critical marketing tool is price which is the amount of money that customers pay for the product. Price also includes discounts, allowances, credit terms and payment period. Place is another key marketing mix tool. And it includes various activities the company undertakes to make the product accessible and available to the customer. Some factors that decide the place are transport facilities, channels of distribution, coverage area, etc. Promotion is the fourth marketing mix tool which includes all the activities that the company undertakes to communicate and promote its product to target market. Promotion includes sales promotion, advertising, sales force, public relations, direct marketing, etc.

Four Ps of Marketing Mix In Context With Coke And Pepsi


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PRODUCT In marketing, a product is anything that can be offered to a market that might satisfy a want or need. It is of two type i.e Tangible (physical) and Intangible (non-physical). Since services have been at the forefront of all modern marketing strategies, some intangibility has become essential part of marketing offers. It is therefore the complete bundle of benefits or satisfactions that buyers perceive they will obtain if they purchase the product. It is the sum of all the physical, psychological, symbolic, and service attributes, not just the physical merchandise. All products offered in a market can be placed between Tangible (Pure Product) and Intangible (Pure Service) spectrum. A product and goods are similar to each other. In accounting, goods are physical objects that are available in the marketplace. This differentiates them from a service, which is a non-material product. The term goods is used primarily by those that wish to abstract from the details of a given product. it is useful in accounting and economic models. The term product is used primarily by those that wish to examine the details and richness of a specific market offering. As such it is useful to marketers, managers, and quality control specialists. A service is a non-material or intangible product - such as professional consultancy, serving, or an entertainment experience.

Coke Product
The Coca-Cola formula is The Coca-Cola Company's secret recipe for Coca-Cola. Since a publicity marketing strategy started by Robert W. Woodruff, the company presents the formula as one of the most closely held trade secrets ever and only a few employees know or have access to. The formula of Coca Cola appears to be the original formula to Coca-Cola. It is from the book called For God, Country and Coca-Cola.

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The Coca-cola Company is a multinational and it is not limited only to one product. Through the years they have invented and introduced many products than their main cola drinks. The list of Coca-cola brands are as follows: Appletiser Aquarius BPM Energy Barq's Beat soda 7 Lemon & Paeroa Lift Lift plus Lilt Manzana Lift

Coke Vs Pepsi 8 Beverly Cannings Cheers Ciel Coca-Cola Black Cherry Vanilla Coca-Cola Blak Coca-Cola C2 Coca-Cola Cherry Coca-Cola Citra Coca-Cola M5 Coca-Cola Zero Coca-Cola Coca-Cola with Lemon Coca-Cola with Lime Dasani Delaware Punch Diet Coke Fanta Fanta Citrus Fioravanti Fresca Frisco Fruitopia Frutonic Full Throttle Georgia Hi-C Hit Kia-Ora Kinley Mare Rosso Mello Yello Mezzo Mix Minute Maid Nestea New Coke Nordic Mist OK Soda Pibb Xtra Powerade Qoo Raspberry Coke Relentless Sarsi Senzao Simply Orange Smart Sparkle Sprite Sprite Ice Sprite Remix Sprite Zero Surge Swerve Tab Tab Clear Tab Energy Tab X-Tra Tiky Vault

Pepsi Product
The Pepsi-Cola drink contains basic ingredients found in most other similar drinks including carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine, citric acid and natural flavors. The caffeine free Pepsi-Cola contains the same ingredients but no caffeine. Some of the different and varied brands of Pepsi are as follows: All Sport Aquafina 8 Pepsi Pepsi Blue

Coke Vs Pepsi 9 Caffeine-Free Pepsi Crystal Pepsi Diet Pepsi Gatorade Izze Jazz Josta Kas Manzanita Sol Mirinda Mountain Dew Mountain Dew AMP Mountain Dew LiveWire Mountain Dew MDX Mug Root Beer Pepsi Cappuccino Pepsi Max Pepsi ONE Pepsi Samba Pepsi Tarik Pepsi Twist Propel Fitness Water Sierra Mist Slice SoBe Storm Teem Tropicana Products Tropicana Twister

Coke v/s Pepsi-Product


As seen above both the companies Coke and Pepsi have a number of products. Many of these products are innovations but there are also many products which are brought out just as a competitive product for the other companies. Some of these products that are brought in the market by both the companies to compete against each other are as follows: Coke Pepsi

The main dark cola drink of the company Pepsi version of dark cola which is the which started the rivalry between these major primary competitor to Coke. companies.

Full Throttle is an energy drink brand AMP is an energy drink produced and produced by The Coca-Cola Company. It distributed by PepsiCo under the Mountain debuted in late 2004 in North America. Dew soft drink brand.

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Vault is a carbonated beverage that was Mountain Dew MDX is an energy drink released by The Coca-Cola Company in manufactured and distributed by PepsiCo June 2005. under the Mountain Dew brand. It was introduced in 2005.

Powerade is a sports drink by The Coca- Gatorade is a non-carbonated sports drink Cola Company and currently number two marketed by Quaker Oats Company, a division of PepsiCo. Originally made for in the sports drink market worldwide. athletes, it is now often consumed as a snack beverage.

Sprite is a clear, lemon-lime flavored, non- 7 Up is a brand of a lemon-lime flavored caffeinated soft drink, produced by the soft drink. Coca-Cola Company. It was introduced to the United States in 1961.

Minute Maid is a product line of beverages, usually associated with orange juice, but now extends to soft drinks of many kinds. The Minute Maid company is now owned by Coca-Cola, and is the world's largest

Tropicana Products is an American company based in Bradenton, Florida, USA, which is one of the world's largest producers and marketers of orange juice. It has been owned by PepsiCo, Inc. since 1998.

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Coke Vs Pepsi 11 marketer of fruit juices and drinks. It is headquartered in Houston, Texas.

Nestea is a brand of iced tea manufactured Lipton Original Iced Tea is a ready-toand distributed by the Nestle company's drink iced tea brand sold by Lipton through beverage department in the United States, a worldwide partnership with Pepsi. and by Coca-Cola in several European countries, Brazil and Venezuela.

Barq's is a brand of root beer notable for Mug Root Beer is a brand name of root being the only major North American root beer made by the Pepsi company. beer to contain caffeine. It has been bottled since the start of the 20th century and is currently sold by the Coca-Cola Company.

Diet Coke or Diet Coca-Cola is a sugar- Diet Pepsi is a low-calorie carbonated cola. free soft drink produced and distributed by It was introduced in 1964 as a variant of The Coca-Cola Company. It was Pepsi-Cola with no sugar. introduced in the United States in July 1982.

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Coke Vs Pepsi 12 Kinley is a brand of still or carbonated Aquafina is a non-carbonated bottled water water owned by The Coca-Cola Company. produced by PepsiCo.

Aquarius is a mineral sports drink All Sport was a sports drink. It is produced manufactured by The Coca-Cola Company. by PepsiCo. It was first introduced in 1983.

Fanta is a soft drink brand owned by The Mirinda is a brand of soft drink. Mirinda is Coca-Cola Company. It is produced and owned by PepsiCo. distributed by The Coca-Cola Company's bottlers.

Sprite Ice was the first flavor extension for Pepsi Blue is a soft drink made by PepsiCo The Coca-Cola Company's Sprite brand and launched in mid-2002. soft drink.

Coca-Cola Blak is a coffee-flavoured soft Pepsi Cappuccino is a cappuccino-flavored drink introduced by Coca-Cola in 2006. carbonated soft drink produced by Pepsico. 12

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Maaza is a Coca-Cola fruit drink brand Slice is a line of fruit-flavored soft drinks marketed in India and Bangladesh. manufactured by PepsiCo and introduced in 1984.

Limca is a lemon and lime flavoured Teem was a lemon-lime-flavored soft drink carbonated soft drink made in India by produced by The Pepsi-Cola Company. Coca-cola. PRICE In economics and business, the price is the assigned numerical monetary value of a good, service or asset. Price is also central to marketing where it is one of the four variables in the marketing mix that business people use to develop a marketing plan. Pricing is a main part of the marketing mix. Choosing the right price and the right pricing strategy is crucial to the marketing process. The price of the product is not which is fixed. On the other hand the price of the product depends on many other factors. Some times the price of the product has got nothing to do with the actual product itself. The price may be used to attract target customers. The price of the product is determined keeping many things in mind. These things include factors like cost incurred on the product, target market, competitors, consumer buying capacity etc.

Coke - Price
Coke was a company ruling the markets before Pepsi entered. Earlier the price of coke was cost based i.e. it was decided on the cost which was spent on making the product plus the profit and other expenses. But after the emergence of other companies especially the likes of Pepsi, Coca-cola started with a pricing strategy based on the basis

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Coke Vs Pepsi 14 of competition. Nowadays more expenses are spent on advertising my soft-drink companies rather than on manufacturing. Coke has brought in a revolution especially in Indian markets with the Rs. 5 pricing strategy and it was very famous. It was the first company to introduce the small bottle of Coke for just Re.5. This campaign was very successful especially with the price conscious Indian consumers. Even today most prices of Coke are decided on the basis of the competition in the market.

Pepsi Price
Pepsi again decides it price on the basis of competition. The best think about the company Pepsi is that it is very flexible and it can come down with the price very quickly. The company is renowned to bring the price down even up to half if needed. But this risk taking attitude also led to many losses. Though lowering the price would attract the customers but it would not help them cover up the cost incurred in production hence causing them losses. This was the situation earlier but now Pepsi is a full-fledged and growing company. It has covered all its losses and is now growing at a rapid rate. PLACE Place is a term that has a variety of meanings in a dictionary sense, but which is principally used in a geographic sense as a noun to denote location, though in a sense of a location identified with that which is located there. Place is one of the 4 P's and is defined as "the market place". It can mean a geographic location, an industry, a group of people (a segment) to whom a company wants to sell its products or services, such as young professional women (like for selling cosmetics) or middle-aged family men ( like for selling family cars).

Coke - Place
Coke is a multinational company and it has its market around the entire world. This can be said just by the first page on its site which asks people to select the place of their choice. The website looks something like this:

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Pepsi Place
Pepsi again has spread worldwide. Pepsi when entering a new market does not go in alone but it looks for partners and mergers. Till now Pepsi has collaborated with companies like Quaker Oats, Frito-lays, Lipton, Starbucks, etc. Like Coke, Pepsi has spread all over the world. It is because of this worldwide spread that now it is coming up with Advertisements which can be broadcasted in the different nations in the world. The recent example with would be the Pepsi advertisements having David Beckham as it brand ambassador.

PROMOTION Promotion is one of the four aspects of marketing. Promotion comprises four subcategories: Advertising Personal selling 15

Coke Vs Pepsi 16 Sales promotion Publicity and public relations The specification of these four variables creates a promotional mix or promotional plan. A promotional mix specifies how much attention to pay to each of the four subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives which may include sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. Pepsi and coke are both famous for their promotions. The rivalry was first started when Pepsi started with its blind taste tests known as the Pepsi Challenge. The challenge is designed to be a direct response to critics who allege that Coca-Cola and Pepsi-Cola are identical drinks, with no meaningful differences. The challenge takes the form of a taste test. At malls, shopping centers and other public locations, a Pepsi representative sets up a table with two blank cups, one containing Pepsi and one with Coke. Shoppers are encouraged to taste both colas, and then select which drink they prefer. Then the representative reveals the two bottles so the taster can see whether they preferred Coke or Pepsi. If Pepsi is revealed, the shopper is given a small prize. The result is that Pepsi tastes better than Coke, and thus consumers should purchase Pepsi. In blind taste tests, more consumers prefer the taste of Pepsi to that of Coca-Cola. Because Coke was the historical leader, more people expected that they'd prefer and select Coke. Their surprise at picking Pepsi in the blind taste test (products were served in unmarked cups) helped change their minds about which product they prefer. Capturing this on film, Pepsi turned this into a memorable TV campaign that lasted many years. The ad-campaigns are put up on the television by both the companies. The following statistic just tells of much of share of ads on TV are captured by these players.

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Infact in the next graph you can see how many programs are sponsored by cola companies and the leader among them is Pepsi. Mainly Pepsi is the company sponsoring most cricket telecasts happening in India and spends most of its revenue in that field.

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Nowadays both Coke and Pepsi are going in for Brand Ambassadors to promote their product. These brand ambassadors are famous people who usually people idolize and people can relate to them. The following pictures do not need any explanation as people are familiar with the celebrities and can thus quickly identify with the product.

A list of Celebrities that are brand ambassadors for the cola companies are as follows. These celebrities are not only asked to work in the advertisements but they also have to use the product promoted by them and they should not use the companies rivals products.

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4. SWOT ANALYSIS
SWOT stands for Strengths Weakness Opportunities Threats. SWOT analysis is a technique used in general management as well as marketing scenarios. SWOT consists of examining the current activities of an organization- its Strengths and Weakness and then using this and external research data to set out the Opportunities and Threats that exist.

SWOT Analysis For Coca-Cola Strengths


Strong international branding Diverse range of products (eg: Diet Coke, Vanilla Coke, Cherry Coke, Coke Zero etc) Cooler Experience Personnel Relations Knowledge Regarding Adversary Accomplished Staff & Benefactor Coca-Cola has been a circuitous allotment of apple ability for a actual continued time. The product's angel is loaded with over-romanticizing, and this is an angel abounding humans accept taken acutely to heart. The Coca-Cola angel is displayed on T-shirts, hats, and collectible memorabilia. This acutely apparent branding is one of Coca-Cola's greatest strengths. Additionally, Coca-Cola's bottling arrangement is one of their greatest strengths. Lower amount of assembly Demonstrably above annual Presented a actual circuitous artifact Extensive advertising, acceptable promotions or business programs.

Weaknesses
Not aggressive product development and diversification Finance Botheration (Partnership Desolation) Vehicles Are Less Minor Signage in the Breadth Ample Number of PCI Abandoned Stock. Abandoned Appropriation Added Melancholia appeal Poor annual Top prices 20

Coke Vs Pepsi 21 Coca-Cola has afresh appear some "declines in assemblage case volumes in Indonesia and Thailand due to bargain customer purchasing power." Latin America, Southeast Asia, and Japan annual for about 35% of Coke's aggregate and none of these markets are assuming to expectation. Bubbler of Coca-Cola circadian has an after effect on your physique afterward few years.

Opportunities
Coca-Cola could diversify and make their own brand of Cocaine Cast acceptance is the cogent agency affecting Coke's aggressive position. Coca-Cola's cast name is accepted able-bodied throughout 94% of the apple today. The primary affair over the accomplished few years has been to get this name cast to be even bigger known. Packaging changes accept as well afflicted sales and industry positioning, but in general, the accessible has tended not to be afflicted by new products. Coca-Cola's bottling arrangement as well allows the aggregation to yield advantage of absolute advance opportunities about the world. This action gives Coke the befalling to annual a ample geographic, assorted area. Customers are Anode from Adversary Specially in Rural Breadth (service and quality). New Projects accept been Started (Industrial). Minor Signage Work is done in Breadth by PCI. PCI is Getting Absorption in Textile Sector. Customer of PCI are Disturbed (Because of advantage and benefactor interest. So we can yield account in this area). New technologies that access efficiencies Niche markets that ample companies do not ambition to serve This account isn't anywhere abreast complete

Threats
Currently, the blackmail of new applicable competitors in the carbonated bendable alcohol industry is not actual substantial. The blackmail of substitutes, however, is a actual absolute threat. The bendable alcohol industry is actual strong, but consumers are not necessarily affiliated to it. Possible substitutes that continuously put burden on both Pepsi and Coke cover tea, coffee, juices, milk, and hot chocolate. Customer affairs ability as well represents a key blackmail in the industry. Furthermore, consumers can calmly about-face to added beverages with little amount or consequence.

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Coke Vs Pepsi 22 All the Oompa Loompas might escape from their cages and will not be able to make the sweet, sweet coke that has our children hooked. Meaning that CocaCola would lose out on A LOT of money.

SWOT Analysis Of Pepsi Strengths


Pepsi has a broader product line and outstanding reputation. The merger of Quaker Oats produced synergy across the board. Witnessed revenues and increasing market share. There is lack of capital constraints (availability of large free cash flow). Great brands, strong distribution, innovative capabilities Number one maker of snacks, such as corn chips and potato chips PepsiCo sells three products through the same distribution channel. For example, combining the production capabilities of Pepsi, Gatorade and Tropicana is a big opportunity to reduce costs, improve efficiency and smooth out the impact of seasonal fluctuations in demand for particular product.

Weaknesses
Pepsi hard to inspire vision and direction for large global company. Not all PepsiCo products bear the company name PepsiCo is far away from leader Coca-cola in the international market - demand is highly elastic.

Opportunities
Food division should expand internationally Noncarbonated drinks are the fastest-growing part of the industry There are increasing trend toward healthy foods Focus on most important customer trend - "Convenience"

Threats
F&B industry is mature Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market Size of company will demand a varied marketing program and will have social, cultural, economic, political and governmental constrains. 22

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BIBLIOGRAPHY www.coca-cola.com www.pepsico.com www.marketing.about.com www.quickmba.com

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