coca-cola vs pepsi

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Coca Cola Vs PepsiGroup A, Section 1Marketing Management IIAbhinav DevrakondaChirag PuriGitika ShahIshmeet GambhirJohon JamatiaShashank ChaudharySwatiVishrut Dinesh

Welcome to marketing analysis on Coca Cola vs PepsiLet`s start!

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1234RivalryOverviewValue Creation and offeringBranding

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567Integrated Marketing CommunicationDelivering ValueConclusionEnd of presentation

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Rivalry : The Cola-WarPepsi 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 cokeThe rivalry between the two ages back in the early twentieth centuryIt heated up in the 1970s, when Pepsi decided to take the Pepsi ChallengeThe test suggested that more consumers preferred Pepsi over Coca-ColaThe sales of Pepsi began to climb up and Pepsi kicked off the challenge across the nation

Pepsi overviewPepsiCo Inc. (PEP) is a leading food and beverage company that manufactures and distributes its products in more than 200 countriesIt is ranked 44 in the list of fortune 500 companies in the worldFood products that PepsiCo manufactures include chips, flavoured snacks, cereals, rice, pasta, and dairy-based productsThe companys 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.

Coca-Cola overviewThe Coca-Cola Companyis anAmericanhistoricalmultinationalbeverage corporation and manufacturer, retailer, and marketer of non alcoholic beverage concentrates andsyrups, which is headquartered in Atlanta,GeorgiaIt is ranked 63 in the list of fortune 500 companies in the worldThe company is best known for its flagship productCoca-Cola, invented in 1886 by pharmacistJohn Stith PembertoninColumbus,Georgia. The Coca-Cola formula and brand was bought in 1889 byAsa Griggs Candler(December 30, 1851 March 12, 1929), who incorporated The Coca-Cola Company in 1892.The company operates afranchiseddistribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to variousbottlersthroughout the world who hold an exclusive territoryCoca-Cola's advertising expenses accounted for US$3.256 billion in 2011

Value Creation and Offering

Consumer Value DynamicsBoth Pepsi and Coca-Cola are incline towards the Outside-in approach towards value creationDuring the 1970s, Pepsi attempted to challenge the dominant position of CokePepsi executives were certain that Coca - Cola s distinctive, hourglass - shaped bottle was Coke s most important competitive advantagePepsi spent millions of dollars and many years studying new bottle designs, but the companys efforts never achieved the recognition of the Coke bottle

Consumer Value DynamicsDealing with this problem, John Sculley decided to take a different approach by asking what the customer wantedAs 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 consumePepsi began a new intelligence gathering stage, decided to launch a new group of larger packagesThe results : Coca - Cola could not convert its famed hourglass silhouette bottle into a larger container. Pepsi's market share expanded dramatically

Product as core of valueUnlike Coca-Cola, which focuses only on beverages, PepsiCo has a strong presence in the snack food category. Thisdiversified 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.

Coca-Cola Brands

Coca Cola, Coke light, Diet - coke, Kinley water, Kinley Soda, Scheweppes, Minute Maid, Maaza, Limca, Fanta, Sprite, Thums Up, Mountain Dew etc

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Pepsi Brands

Pepsi, Diet - Pepsi, Pepsi Max, Kurkure, Tropicana, Gatorade, Mountain Dew, Slice, Quaker, Aliva, Aquafina, Nimbooz, 7Up, Lays, Uncle Chips etc.

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Value creation through marketing strategyIt 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 drinkAugmented BenefitsThe 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 Colas availability for contact if an issue occurs

Core BenefitValue Creation

Brand as a value additionIt can be deduced that brand knowledge is important for the health of the company.Branding is a potent element for aproduct andbetween thetwo brands; Pepsi Cola and CocaCola; thelatter isseen as amore valuable brandCoca Cola scored 90% in brand awarenessamong the respondents from various countries such as Canada, United Kingdom, United States, Germany, France and also Australia.Coca Colas brand strategy revolves around emotions and the feelings that people should get when they drink coca cola

Top brands in the Indian MarketOverall Market Share (Beverage Industry)Market SharePepsi Brands: 37%Coca Cola Brands: 60%Others: 3%BRAND TRUST REPORT RESULTS 2010Pepsi was ranked 36/300Coca Cola was ranked 60/300

Brand Image : Coca-ColaCoca-Colas brand image revolves around emotions and the feeling that people should get when they drink or even think of coca colaMost recognisable brand after the word OKIt is recognised by its brand name globallyCoca-Cola functions in the luxury and Loyalty model

Brand Position: Coca-ColaFamily

FunHappyBubblyExciting

Red

Brand Image : PepsiPepsis brand image revolves around their youthful image and social responsibilityPepsi is globally recognised by its distinctive logoPepsi functions in the luxury and Loyalty model

Brand Position : PepsiYouthfulMusicThe next generationEnergyTrendyIt relies on its efforts in sustainability

Comparison Between Pepsi and CokePepsi Coca-ColaBrand ImageSportyYouth CentricFashionable and in with societyBrand ImageRefreshingFamily friendlyHappiness and well beingFrequently changing LogosFrequently changing slogansFocusing on becoming a Food and Beverage companyFocusing on Beverages onlyProduct Line:Product Line:

Brand Equity Model for Coca-Cola & Pepsi

SWOT Analysis: Coca-ColaStrengthsWeaknessOpportunitiesThreatsSWTO

Too much emphasis on legal issuesLoss of focus , failed diversification attemptFragmented leadership

Younger generation , the untapped market Build on their considerable loyal customer baseHorizontal growth diversification

Positive customer based brand equity Gets imbibed in the culture Huge loyal customer base .

Intense competition Slowdown in rural demand Health consciousness amongst consumers.

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SWOT Analysis: PepsiStrengthsWeaknessOpportunitiesThreatsSWTO

1. Carbonate market is going down2. They focus only on the youth

Increased consumer concerns in comparison to bottled waterGrowth in healthier beveragesGrowth in tea and Asian beveragesGrowth in the functional drinks industry

Enjoys a high profile global presenceConstant product innovationAggressive marketing strategiesA broad portfolio of products.

Obesity and health concernsIncreased marketing and innovation by cokeRestricted target markets in terms of region and demography .

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Integrated Marketing Communication

Integrated Marketing Communication

Pepsi Logo Evolution

Coca-Cola Logo Evolution

Communication Objectives: PepsiTo separate brand identity for each productExtensive reminder advertising for repeat purchaseMention the nutritional value of product to increase consumer awareness and build responsible brand imageConsumer 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

Communication Objectives: Coca-ColaTo be close to their customers, to be part of their daily life, to become a kind of ritual attached to specific momentsCreating 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 customersCreating 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

Tools Of IMC: Coca-ColaAdvertising: 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 wideCompany 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.

Tools Of IMC: PepsiAdvertising: Pepsis target audiences are mostly teens and young adults and their advertising reflects this in every possible wayThe company changes its advertising strategy and image to reflect the target's interestsPepsi makes sure that the advertisements reflect to the target audiences interests and nostalgiaThe advertising strategy includes innovativepromos to attract more of the target audienceThe advertising is mostly creativeand has different elements like music and sports other than Bollywood

Slogans: Coca-ColaCoca-Cola continuously uses new slogans in various countries and are very cheerful & attractive:Thanda Matlab Coca-ColaJo Chaho Ho Jae Coca-Cola EnjoyCoca-Cola Piyo Sir Utha keLife tastes goodOpen Happiness

Slogans: PepsiSince 1961 Pepsi had many slogans, some of the famous slogans used in India are given below: Yeh Dil Maange MoreYehi hai Right Choice BabyYeh Pyaas Hai BadiYeh Hai Youngistaan Meri JaanYoungistan ka Wow

Campaigns: Pepsi

Campaigns: Coca-Cola

Rural Penetration

Rural PenetrationIncreased penetration in rural areas is driving growth for both Coke and Pepsi. They have formulated a well-established retail network across India

Coca-ColaPepsiCoca-Colas Indian rural marketing strategy was based on 3 As Availability, Affordability and Acceptability

Thumps up and Sprite are leading brands in the carbonated soft drinks in rural IndiaOne 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 goGluco + Rides on hydration

DISTRIBUTION

DistributionCoca 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, Dominos, and many restaurants have tie-ups with the companyPepsi 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

Logistics

Distribution Channels-Coca ColaThe 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 successCokes position on consumers mind makes it essential to retailers, wholesalers and away-from-home market

Distribution Channels-Coca Cola

Thus we can cite different point of sales where Coca cola is generally available throughout the Coca-Cola Company:Wholesalers/ distributorsRetail/corner stores/supermarkets/GroceriesRestaurants/cafs/night clubsPetrol stationsAutomated teller machines (AMTs)

Distribution Channels-PepsiDirect store deliveryUnder the DSD system, PepsiCo delivers products directly to retail stores. Of the three channels, DSD enables PepsiCo to merchandise with maximum visibility. Its more suitable for products that are restocked often and are sensitive to promotions and marketing.Customer warehouseThe customer warehouse system is a less expensive distribution channel. Its ideal for products that are less fragile and perishable, have lower turnover, and are not purchased impulsively.Third-party distributor networksPepsiCo distributes food and beverage products to restaurants, businesses, schools, and stadiums through third-party food service and vending distributors and operators.

Distribution Channels - Pepsi

PEPSI

Operations : Coca Cola

Operations : Pepsi

Questions & DiscussionThank You