COKE AND PEPSI

FROM GLOBAL TO INDIAN ADVERTISING

GROUP -- 4
TANUJ VERMA – 169278002
ANKIT JINDAL – 169278029
ABHISHEK RAWAT – 169278011
LAKSHIT YADAV -- 169278107

1
WHAT THE CASE IS ABOUT?

 John Pemberton formulated a syrup in 1886 which was used as a medicated potion
 From this syrup, soft drink industry was formed when this syrup was started to be used in Soft beverages
 Main division is between Carbonated and Non Carbonated Soft drinks
 It started with majorly in the Americas and European market and then moved to emerging markets like India as
the former market declined
 The main brands of Coca cola and Pepsi in the soft drinks division are discussed in the case and the numerous
campaigns used in the advertising of these companies’ brands are also discussed
 The campaigns that are carried out by these firms have directly affected the sales of soft drinks in all the regions
and the response on the sales is affected in a very short span of time
 Advertising has played a major role in brand building as the two majors largely competed on parity pricing

2
AD SPENDING STRATEGIES

 Advertising and building effective Advertisement campaigns were the main strategies for Brand building
 The spend on a particular campaign continued till the success of that campaign started to fade away
 The companies had hired various advertising firms such as Ogilvy and mather, McCann Erickson, Creative Artists
Agency, JWT, BBDO etc. in various regions for building the campaigns
 While most of the campaigns directly influenced consumers to buy their products, in some of the campaigns
companies directly attacked each other indicating their product is superior
 Much spend was focused on the campaigns targeting the Youth as compared to other age groups in both cases
 There is a general trend in which Pepsi maintains a advertising expenses / Revenue ratio of 0.04 while the same
ratio is 0.09 for Coca Cola

3
 AD SPENDING STRATEGIES

Ad Spend per Share Point

COCA COLA (Exhibit 8)
150
 There is a trend of increasing ad spends
100
114.47
89.34 per share point for the brands of Coca
50
43.4163.75 24.5441.97 60.2 23.9732.6654.03 19.0419.7654.98 22.9830.98 Cola while the same ratio decreased for
0
Coca Cola Sprite Thums UP Fanta Limca almost all the brands of Pepsi for the year
2007 2008 2009 2008
 In 2008 Pepsi focused more on Mountain
Ad Spend per Share Point Dew in terms of relative spending
PEPSI (Exhibit 8) compared to other brands
100
90.14
50 72.38
61.26 61.26
50.39 49.84
37.58 13.54 22.37 29.03 5.55 31.7
0
Pepsi Mountain Dew 7 Up Mirinda 4

2007 2008 2009

 LEARNINGS FROM GLOBAL VS LOCAL STRATEGIES

 In India most of the brands that were launched, initially followed the strategy which the company adopted while
launching the product at a global level
 Later when the brand understood the country’s culture and taste, the campaigns were customized according to those
 At global level launches the campaigns were mostly focused on visual effects
 Later when the customization happened the same global campaigns were customized to local preferences to make sure
the message remains the same along with the taste. Do the dew was used at the time of launch as similar to global
campaign. Later it was customized to “Darr ke aage jeet hai”
 For example
Fanta was customized to India by sending a message of mischief and playfulness
Thums-up and Coke followed different strategy in different regions of India
 Trends of shift from visual campaigns, thrust quencher or colour to more emotional appeal and connect with people
 Pepsi kept in mind the campaigns it used when a particular generation was young should be customized to those people
again when they grew older. Using this strategy helped Pepsi and must be kept in mind while forming a campaign at both
5
local and Global level
 JOURNEY IN INDIA

 Coca Cola arrived in India in 1958 but due to some political  Pepsi arrived in India in 1986 after the temporary
environment reforms Coca Cola had to departure from departure of Coke from India, under the name Lehar Pepsi,
India. Re-entered in 1993 and merged with Parle Indian merging with Punjab Agro and Voltas. It gained 26% market
company which had its strong roots in local market of soft share by 1993.
drinks via Thums Up and Limca . Coca Cola acquired both  In 1990 Pepsi launched 7 Up drink for indian market with
drinks using prevailing brand advertisement of Limca and its international mascot “fido dido”
Thums Up
 In 1991 Pepsi lauched Mirinda with punchline
“Mirindaaaaaa” exclaiming open mouth.
 Initially after setting the name Coca Cola India, it launched  In 2001 Pepsi India launched new tagline “yeh dil mange
only two of its soft drink brands, namely Coke and Fanta more” taken from the global campaign “ask for more”
since these soft drinks tasted similar to Thums Up and  In 2004 global tag line of Pepsi “dare for more” relaunched
Limca which had strong local market. This way Coke was in India using the native language“ Yeh Pyas hai badi” 6
able to generate high demand in Indian market .
 PORTFOLIO STRATEGY

 Coca Cola is the core brand or the flagship brand. The

focus, therefore, is on capturing the maximum value
that the brand can generate.
 Any spoof or threat on Coca Cola is countered by
Sprite acting as a cover brand. However, off late, Sprite
is moving up the ladder to become a core brand in the
portfolio
 The importance of a cover brand is that it allows for
maintaining a planned advertising strategy. This builds
brand value and creates no confusion about brand
proposition.
 In case of PepsiCo, Pepsi is the core brand or the flagship
brand. However, Mountain Dew and 7 UP have played the
role of standalone brands.
 Therefore, Pepsi has to constantly respond to spoofs and
threats from other brands by tweaking or changing its
planned advertising strategy.
 Recent trend suggests at Mountain Dew taking up the
role of a cover brand in the PepsiCo brand portfolio. 7
THANK YOU