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Pepsi vs coca cola
1. INTRODUCTION
Pepsi is a world leader in convenient snacks, foods and beverages with revenues of more
than $60 billion and over 285, 000 employees. Pepsi 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. Pepsi Cola is one of the
largest soft drinks industries which operate in Australia. The main products of the
company comprises of different soft drinks brand including Pepsi, Pepsi Light, Pepsi Max,
7UP, Diet 7UP, Caffeine Free Pepsi Light, Mountain Dew and etc. Based on Pepsi
company vision is “Pepsi responsibility is to continually improve all aspects of the world
which we operate based on environment, social, economic by creating a better
tomorrow than today”. The company mission is to be the world’s premier consumer
Products Company focused on convenient foods and beverages.
2. It is different than Coca Cola which is already been in the beverage business for 125 years, employs 139, 600 people,
and sells 1.6 billion beverages each day in more than 200 countries. Coca Cola Company is the world’s largest
beverage company with almost 500 brands ranging from the actual Coca Cola to products such as Sprite, Fanta,
POWERADE, Minute Maid and many mores. Coca Cola mission is to refresh the world, inspire moments of
optimism and happiness and create value that make a difference along with their vision is to serve as the framework
for their roadmap and guides every aspect of their business by describing what they need to accomplish in order to
continue achieving sustainable quality growth.
3. BACKGROUND & HISTORY
Pepsi background & History
Established in 1890
Focus on beverage drink
The first product are ; Pepsi-Cola (formulated in 1898), Diet Pepsi
(1964) and Mountain Dew (1948).
4. BACKGROUND & HISTORY
Coca Cola Background & History
Established in 1944
Carbonated drinks
Originally invented as patent medicine
5. SWOT ANALYSIS
PEPSI
Strength
High level of customer loyalty for most of the brands within product portfolio
Weakness
High level of dependence on large supermarkets such as Wal-Mart
Opportunities
Increasing presence in emerging markets such as China and India
Threats
High amounts of sugar or salt in products being criticized by government and non-
government health organizations
6. SWOT ANALYSIS
Coca-Cola
Strength
World’s largest market share in beverage
Weakness
Significant focus on carbonated drinks
Opportunities
Bottled water consumption growth
Threats
Changes in consumer preferences
7. PEST ANALYSIS
Political (Pepsi)
Changes in regulations and laws
Political Conditions
Ability to enter developing markets
Changes in the non-alcoholic
industry environment
Economical (Pepsi)
Global Recession
Interest Rate
Fear for inflation
8. PEST ANALYSIS
Social (Pepsi)
Practices of having healthier live by people
Most consumers between the ages of 40-55 are gradually more worried with nourishment.
The change which is related to lifestyle as well as attitude would be termed as social
change.
Technological
The usefulness of company marketing
The introduction of vending machines, plastic bottles
and cans
9. PEST ANALYSIS
Political (Coca cola)
Law related changes
The business related environment changes
The market changes
Economical
Interest rates
Economic condition
10. PEST ANALYSIS
Social
The shift to a health centered lifestyle
The middle aged consumers are getting very nutrition conscious
World sensitivity about war
Technological
Promotional techniques
New machinery for production
Supplying cans very fast and efficiently
13. Internalization
First stage
Initial period (1934-1949)
Second stage
Rapid development period (the 20th century, 50 years)
Third
Overall expansion period (early 20th century, 60-90)
Final
Strategic adjustment period (the mid-20th century, 90 so far)
16. Conclusion
From this research, we can conclude that in order for international
companies to be successful and gain competitive advantage on the local
market, it is vital that they implement a combination of the studied factors in
their marketing strategy so as to best reach target groups. More specifically,
the strategies should be tailored in accordance with the target group’s
age, seeing as consumer preferences vary depending on the person’s age.
Lastly, although advertising campaigns are still efficient in reminding and
persuading consumers of brands and products, companies must
differentiate themselves in the messages and technique, etc., as
advertisement clutter at a rise.