Comparative Analysis Coca Cola vs Pepsi

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Introduction Coca Cola
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Type Soft Drink
Industry Beverages
Manufacturer The Coca Cola Company
Founder John S. Pemberton
Country of Origin United State
Introduced 1886
Area Served Over + 200 Countries
Flavors Cola, Cola Green Tea, Cola
Lemon, Cola Lemon Line,
Cola Lime, Cola Orange
Headquarter Atlanta, U.S.

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Type Soft Drink
Industry Beverages
Manufacturer PepsiCo
Founder Caleb Bradham
Country of Origin United State
Introduced 1893
Area Served Over + 200 Countries
Flavors Pepsi Blue, Pepsi Diet, Diet
Pepsi Lime, diet Pepsi Lemon
Headquarter New York, U.S.
Introduction Pepsi

Coca- Cola History
• 1886: Founded by John Pemberton
• 1887: Registered as trademark.
• 1895: Sold in every state & territory in US.
• 1970: Entered Indian Market for the 1st time
• 1977: Exited the Indian Market
• 1993: Re-entry in India
• 1993-2003 : Invested more than US $1b in India
• 2003-2008: No. 1 soft drink company in India.
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Coca- Cola Products in India
• Coke
• Diet Coke
• Thums Up
• Sprite
• Limca
• Maaza
• Fanta
• Georgia (Coffee)
• Kinley (Drinking Water)
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Pepsi History
• 1899: Founded by Caleb Bradham
• 1902: Applied for trademark in US
• 1923: Declared bankrupt & assets sold
• 1985: Gained entry in India
• 1988* - Succeeded with Pepsi Food India Limited Project as a joint
venture of Punjab Agro Industrial corporation & Voltas India Limited.
• 1991: Marketed & sold as Lehar Pepsi.
• 1994: Bought out its partner and become a fully owned subsidiary.
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Pepsi Products in India
• Pepsi
• Diet Pepsi
• 7 Up
• Miranda
• Mountain Dew
• Tropicana Juices
• Lays, Cheetos & Ruffles (Snacks)
• Quaker Oats
• Aquafina (Drinking Water)
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Competitor Capabilities Matrix
FEATURES: COKE PEPSI
Bar weight 10 FL OZ ( 200ml) 10 FL OZ ( 200ml)
Calories 121.25 150
Carbohydrates (gm) 33.75 34.5
Flavors (numbers) 2 2
Price/bottle Rs 10 Rs 10
PRODUCT CLAIMS All foods and beverage can fit into healthy
balanced diet when consumed in appropriate
proportion.
Offers beverages that resorts to the
customer’s expectations and make it more
enjoyable for them to lead healthier lives.
TARGET CONSUMER Children, adults, younger generation and
sports personality and celebrities
People from younger generation, sports
personalities and celebrities
DISTRIBUTION Grocery stores, retail stores, shops, malls, etc. Grocery stores, retail malls, shops etc.
BRAND POSITIONING Sweetened carbonated drink Sweetened carbonated drink.
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Product
Product Type Coca-Cola Pepsi Co.
Carbonated Drinks (Black) Coke, Thums Up Pepsi
Carbonated Drink (Black) Diet Diet Coke Diet Pepsi
Carbonated Drinks (Orange) Fanta Miranda
Carbonated Drinks (Clear/ Lemon) Sprite, Limca 7 Up, Mountain Dew
Flavored Juice Maaza Tropicana
Coffee Georgia ***
Drinking Water Kinley Aquafina
Snacks *** Lays, Cheetos & Ruffles
Breakfast *** Quaker Oats
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Price
Coke
• Earlier COST BASED Pricing.
• The Rs. 5 (200 ml) and Rs. 8 (300
ml) marketing revolution
• Coke spends more on
advertising than manufacturing
Pepsi
• Competition based
• Very flexible to come down with
the price very quickly
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Place
Coke
• 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.
• 300 million soft drink consumers
Pepsi
• Pioneer in use of Vending
Machines and
Restaurant,
Departmental Stores
• placed in large cities all around
India
• PepsiCo has 37 bottling plants
in India, including 17 company-
owned plants and 20 owned by
franchisee partners
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Promotion
Coke
• Brand Localization Strategy: The
Two India’s
• India A: “Life ho to aisi”
• India B: “Thanda Matlab Coca-
Cola”
• Small bottle scheme
Pepsi
• Pepsi balance 2 influences in the
minds of the customers:
• ‘You’re cool the way you are’
• ‘Don’t try to be any different’
• It was positioned as the new
cool youth icon
• ‘Nothing Official About It’
• ‘Yeh Dil Maange More’
• ‘Mera Number Kab Ayega?’
• ‘Yeh Pyaas Hai Badi’
• ‘Youngistan’
• ‘Change the game’
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Promotion
Coke Pepsi
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SWOT Analysis: Coke Vs Pepsi
Coke
STRENGTHS
• Well established Global Brand
• Prior knowledge of Indian market
(1958-1977)
• Tie up with local players (Britannia
Ltd)
• Strong Fiscals to acquire local business
(bottling plants/local brands)
Pepsi
STRENGTHS
• International Brand and Global
Experience
• Benefitted by learning from Coca
Cola mistakes in India pre 1977
• Willingness to comply with
stringent Indian Laws
WEAKNESS
• Improper appreciation of existing
Indian Laws at entry time (in case of
acquisition, 49% sale of equity to local
partners mandatory)
WEAKNESS
• Lack of Experience in Indian market
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Cont.……
OPPORTUNITIES
• Many successful brands to pursue
• Advertise its less popular products
• Buy out competition.
• More Brand recognition
OPPURTUNITIES
• Food division should expand
• Noncarbonated drinks are the
fastest-growing part of the industry
• Focus on most important customer
trend - "Convenience".
THREATS
• Strong Competition from Pepsi and
other local brands due to late entry
• Stricter legal framework (49%
equity to Indian Investors)
• Decreasing popularity of
carbonated drinks in India
THREATS
• Unfriendly political environment
and Indian legal framework
• Low demand in Indian market for
carbonated drinks
• Poor infrastructure especially in
rural India
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Product Mix- BCG Matrix - Coke
Relative Market Share
MarketGrowthrate
H
L
H L
Stars:
• Coke
• Sprite
• Diet Coke
Question Mark:
• Fanta
• Georgia
• Minute Maid
Cash Cow:
• Thumps up
• Limca
• Maaza
• Kinley
Dogs:
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Product Mix- BCG Matrix – Pepsi
Relative Market Share
MarketGrowthrate
H
L
H
L
Stars:
• Pepsi
• Mountain Dew
• Tropicana Juices
Question Mark:
• Diet Pepsi
• Miranda
• 7 Up
• Nimbooz
Cash Cow:
• Aquafina
Dogs:
• Pepsi Max
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Ansoff model for Coke
Products
Market
E
N
EN
Product Development:
• “Cold Drinks” as popularly
known in India were an Urban
phenomenon and the favorites
(soda based) were Campa Cola,
Gold Spot, Limca and Thums Up
• July 1993 Parle sold its
brands and plants to Coke
Market penetration/Expansion:
• Family sized bottle
• Pet Bottles
• Small Quantity at low price for
rural market
Market Development:
• Diet Coke - result of a growing trend
towards dieting and healthier living
• Vanilla Coke - an alternative to Coke
• Fanta Icy Lemon
Diversification:
• Coca Cola developed the energy drink
‘Powerade’ in response to growth in
the sports drink market.
• Georgia (Coffee)
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Ansoff model for Pepsi
Products
Market
E
N
EN
Product Development:
• Pepsi – Entered into an
existing cola market
competing with local brands
and coke – Existent Cash cow
Market penetration/ Expansion:
• Diet Pepsi – Entered into an
existing market created by Diet
coke – Existent Dog
Market Development:
• Pepsi blue – Seasonal product
that took advantage of cricket
world cup fever – not produced
anymore
• Follower
Diversification:
• Pepsi Max – Advertised through
digital media
• Pepsi Caffechino – Pepsi’s attempt to
create a niche market for cola +
Coffee Taste - Unsuccessful
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Sunil Kr Ahirwar
Amity University Noida-125
Mo: +91-9871836819
Email: sunilahirwar@live.com

Comparative Analysis Coca Cola vs Pepsi

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