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Coca-Cola Vs Pepsi
1.
2. Coca Cola Vs Pepsi
Group A, Section 1
Marketing Management II
Abhinav Devrakonda
Chirag Puri
Gitika Shah
Ishmeet Gambhir
Johon Jamatia
Shashank Chaudhary
Swati
Vishrut Dinesh
6. Rivalry : The Cola-War
• Pepsi and Coke command over 95% of the soft-drink market in India
• However Coke continues to outsell Pepsi most areas of the world but in India and Pakistan and some other countries, PepsiCo
fares far better than coke
• The rivalry between the two ages back in the early twentieth century
• It heated up in the 1970s, when Pepsi decided to take the Pepsi Challenge
• The test suggested that more consumers preferred Pepsi over Coca-Cola
• The sales of Pepsi began to climb up and Pepsi kicked off the
challenge across the nation
7. Pepsi overview
• PepsiCo Inc. (PEP) is a leading food and beverage company that manufactures and distributes its products in more than 200
countries
• It is ranked 44 in the list of fortune 500 companies in the world
• Food products that PepsiCo manufactures include chips, flavoured snacks, cereals, rice, pasta, and dairy-based products
• The company’s beverage product portfolio includes carbonated soft drinks, juices, ready-to-drink tea and coffee, sports drinks,
and bottled water. Headquartered in Purchase, New York, the company employs around 274,000 people worldwide.
• According to Information Resources, Inc. (or IRI), a market research company, PepsiCo owns nine of the 40 largest packaged
goods trademarks in the United States.
• The company owns several brands, and 22 of them, including Pepsi, Lays, and Gatorade, generate more than $1 billion each in
revenues.
8. Coca-Cola overview
• The Coca-Cola Company is an American historical multinational beverage corporation and manufacturer, retailer, and marketer
of non alcoholic beverage concentrates and syrups, which is headquartered in Atlanta, Georgia
• It is ranked 63 in the list of fortune 500 companies in the world
• The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith
Pemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by Asa Griggs Candler (December 30,
1851 – March 12, 1929), who incorporated The Coca-Cola Company in 1892.
• The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup
concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory
• Coca-Cola's advertising expenses accounted for US$3.256 billion in 2011
10. Consumer Value Dynamics
• Both Pepsi and Coca-Cola are incline towards the Outside-in approach towards value creation
• During the 1970’s, Pepsi attempted to challenge the dominant position of Coke
• Pepsi executives were certain that Coca - Cola ’ s distinctive, hourglass - shaped bottle was Coke ’ s most important competitive
advantage
• Pepsi spent millions of dollars and many years studying new bottle designs, but the company’s efforts never achieved the
recognition of the Coke bottle
11. Consumer Value Dynamics
• Dealing with this problem, John Sculley decided to take a different approach by asking what the customer wanted
• As a result of the study, Pepsi discovered what all marketers now recognize as a key fact about snack foods:
• However much you can persuade people to buy, there is much to be learned by studying how much they will consume
• Pepsi began a new intelligence – gathering stage, decided to launch a new group of larger packages
• The results : Coca - Cola could not convert its famed hourglass silhouette bottle into a larger container. Pepsi's market share
expanded dramatically
12. Product as core of value
• Unlike Coca-Cola, which focuses only on beverages, PepsiCo has a strong presence in the snack food category. This diversified
model helps PepsiCo fare better through the current challenging times, when soda demand is continually declining. Snacks and
beverages are complementary food categories, and PepsiCo benefits from this combination.
• Pepsi has the following brands under its umbrella: Pepsi, Diet - Pepsi, Pepsi Max, Kurkure, Tropicana, Gatorade, Mountain Dew,
Slice, Quaker, Aliva, Aquafina, Nimbooz, 7Up, Lays, Uncle Chips etc.
• Coke on the other hand has the following brands: Coca Cola, Coke light, Diet - coke, Kinley water, Kinley Soda, Scheweppes,
Minute Maid, Maaza, Limca, Fanta, Sprite, Thums Up, Mountain Dew etc.
15. Value creation through marketing strategy
It is due to the solid reputation Coke has cultivated
over the course of 100 plus years, reinforced through
advertising and marketing that portrays a happy,
comforting, and positive message
Pepsi Cola and Coca Cola has the same core benefit for
their products, which is to quench the thirst of their
consumers as well as selling a non-alcoholic soft drink
Augmented Benefits
The Coca Cola products would also feature the label
and nutritional facts of the product. It also provides
the contact details of the manufacturer and place of
manufacturing for after sales service purposes. Other
additional information such as the website domain is
given for product support.
Pepsi Cola on the other hand may have some
similarities to the coca cola product. Pepsi Cola has a
great customer support as they offer easy accessibility
and fast response as well as Pepsi Cola’s availability for
contact if an issue occurs
Core Benefit
Value Creation
16. Brand as a value addition
• It can be deduced that brand knowledge is important for the health of the company.
• Branding is a potent element for a product and between the two brands; Pepsi Cola and Coca Cola; the latter is seen as amore
valuable brand
• Coca Cola scored 90% in brand awareness among the respondents from various countries such as Canada, United Kingdom,
United States, Germany, France and also Australia.
• Coca Cola’s brand strategy revolves around emotions and the feelings that people should get when they drink coca cola
17. Top brands in the Indian Market
Overall Market Share (Beverage Industry) Market Share
• Pepsi Brands: 37%
• Coca Cola Brands: 60%
• Others: 3%
BRAND TRUST REPORT RESULTS 2010
• Pepsi was ranked 36/300
• Coca Cola was ranked 60/300
18. Brand Image : Coca-Cola
• Coca-Cola’s brand image revolves around emotions and the feeling that people should get when they drink or even think of coca
cola
• Most recognisable brand after the word “OK”
• It is recognised by its brand name globally
• Coca-Cola functions in the luxury and Loyalty model
20. Brand Image : Pepsi
• Pepsi’s brand image revolves around their youthful image and social responsibility
• Pepsi is globally recognised by its distinctive logo
• Pepsi functions in the luxury and Loyalty model
21. Brand Position : Pepsi
Youthful
Music
The next generation
Energy
Trendy
It relies on its efforts in sustainability
22. Comparison Between Pepsi and Coke
Pepsi Coca-Cola
Brand Image
• Sporty
• Youth Centric
• Fashionable and “in” with society
Brand Image
• Refreshing
• Family friendly
• Happiness and well being
Frequently changing Logos Frequently changing slogans
Focusing on becoming a Food and Beverage company Focusing on Beverages only
Product Line: Product Line:
24. SWOT Analysis: Coca-Cola
Strengths Weakness
OpportunitiesThreats
S W
T O
1. Too much emphasis on legal
issues
2. Loss of focus , failed
diversification attempt
3. Fragmented leadership
1. Younger generation , the
untapped market
2. Build on their considerable
loyal customer base
3. Horizontal growth –
diversification
1. Positive customer based brand
equity
2. Gets imbibed in the culture
3. Huge loyal customer base
.
1. Intense competition
2. Slowdown in rural demand
3. Health consciousness amongst
consumers
.
25. SWOT Analysis: Pepsi
Strengths Weakness
OpportunitiesThreats
S W
T O
1. Carbonate market is going down
2. They focus only on the youth
1. Increased consumer concerns
in comparison to bottled water
2. Growth in healthier beverages
3. Growth in tea and Asian
beverages
4. Growth in the functional drinks
industry
1. Enjoys a high profile global
presence
2. Constant product innovation
3. Aggressive marketing
strategies
4. A broad portfolio of products
.
1. Obesity and health concerns
2. Increased marketing and
innovation by coke
3. Restricted target markets in
terms of region and
demography
.
30. Communication Objectives: Pepsi
• To separate brand identity for each product
• Extensive reminder advertising for repeat purchase
• Mention the nutritional value of product to increase consumer awareness and build responsible brand image
• Consumer schemes to entice swift purchase action and also generate more impulse buying as consumer have become more
knowledgeable and understand value for money hence prefer to products giving a better deal with good quality products
31. Communication Objectives: Coca-Cola
• To be close to their customers, to be part of their daily life, to become a kind of ritual attached to specific moments
• Creating an emotional connect and a feeling of affiliation with their customers by taking social responsibilities
• Focuses on fun and entertainment as it is the main message they want to deliver to their customers
• Creating awareness of the company and its products has been pursued by Coca-Cola as their secondary objective, as the
company already has a high level of brand recognition
32. Tools Of IMC: Coca-Cola
• Advertising:
• Coca-Cola uses the concept of aggressive advertising to promote its products, which is the most important marketing tool for
any company to cater the mass consumer market national wide
• Company introduces different themes and concepts to sell their product and advertises mainly in electronic media and out of
home advertising. These advertising builds the brand image and awareness
• Usage of big names of Indian film & cricket industry as the brand ambassadors such as Sachin Tendulkar, Amir Khan etc.
33. Tools Of IMC: Pepsi
• Advertising:
• Pepsi’s target audiences are mostly teens and young adults and their advertising reflects this in every possible way
• The company changes its advertising strategy and image to reflect the target's interests
• Pepsi makes sure that the advertisements reflect to the target audience’s interests and nostalgia
• The advertising strategy includes innovative promos to attract more of the target audience
• The advertising is mostly creative and has different elements like music and sports other than Bollywood
34.
35. Slogans: Coca-Cola
• Coca-Cola continuously uses new slogans in various countries and are very cheerful & attractive:
• Thanda Matlab Coca-Cola
• Jo Chaho Ho Jae Coca-Cola Enjoy
• Coca-Cola Piyo Sir Utha ke
• Life tastes good
• Open Happiness
36. Slogans: Pepsi
• Since 1961 Pepsi had many slogans, some of the famous slogans used in India are given below:
• Yeh Dil Maange More
• Yehi hai Right Choice Baby
• Yeh Pyaas Hai Badi
• Yeh Hai Youngistaan Meri Jaan
• Youngistan ka Wow
41. Rural Penetration
• Increased penetration in rural areas is driving growth for both Coke and Pepsi. They have formulated a well-established retail
network across India
Coca-Cola Pepsi
Coca-Cola’s Indian rural marketing
strategy was based on 3 A’s – Availability,
Affordability and Acceptability
Thumps up and Sprite are leading brands
in the carbonated soft drinks in rural
India
One will be able to find a wide variety of
products by PepsiCo in rural India – soft
drinks like Pepsi, Miranda & Mountain
Dew to healthier options of packaged
food drinks & other options such as
Nimbooz, but all this would not work
without right campaigning
Sample the brand at a low price of just
Rs. 5, through moving vehicles –
“Happiness on the go”
Gluco + Rides on hydration
43. Distribution
Coca Cola
• Sales & Distribution is handled by a large number of bottlers.
• 26 bottling plants , 60 distribution centres ,20 contract packers
• Over 70000 retail outlets serviced via trucks, converted three wheelers, tricycles & push carts
• McDonald's, Domino’s, and many restaurants have tie-ups with the company
Pepsi Co.
• Pioneer in use of Vending Machines and Restaurant, Departmental Stores
• Built up distribution network & bought out a lot of Bottlers
• Production plants and bottling centres were strategically placed in large cities all around India
• Focusing on the rural market
• PepsiCo has 37 bottling plants in India, including 17 company-owned plants and 20 owned by franchisee partners
45. Distribution Channels-Coca Cola
• The company keeps altering their distribution channels to match their expansion efforts for a larger market share.
• Coca-Cola has managed to develop a solid distribution network across the globe.
• They use two major channel distribution strategies, direct selling and indirect selling.
• On their website, the company states, “our principal channels are small retailers, “on premise” consumption, such as
restaurants and bars, supermarkets and third party distributors”
• It has such an impact on consumers and is so successful that even wholesalers and distributors need the product for their
business’ success
• Coke’s position on consumer’s mind makes it essential to retailers, wholesalers and away-from-home market
46. Distribution Channels-Coca Cola
• Thus we can cite different point of sales where Coca cola is generally available throughout the Coca-Cola Company:
• Wholesalers/ distributors
• Retail/corner stores/supermarkets/Groceries…
• Restaurants/cafés/night clubs
• Petrol stations
• Automated teller machines (AMTs)
47. Distribution Channels-Pepsi
• Direct store delivery
• Under the DSD system, PepsiCo delivers products directly to retail stores. Of the three channels, DSD enables PepsiCo to
merchandise with maximum visibility. It’s more suitable for products that are restocked often and are sensitive to promotions
and marketing.
• Customer warehouse
• The customer warehouse system is a less expensive distribution channel. It’s ideal for products that are less fragile and
perishable, have lower turnover, and are not purchased impulsively.
• Third-party distributor networks
• PepsiCo distributes food and beverage products to restaurants, businesses, schools, and stadiums through third-party food
service and vending distributors and operators.
