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PEPSI & COCA COLA
INTRODUCTION AND HISTORYThe originator of PEPSI is Caleb D. Bradham in 1898.
PepsiCo. introduced as Brad's Drink, by Caleb D. Bradham, it was renamed as Pepsi-Cola on August 28, 1898, then to Pepsi in 1961.
PepsiCo entered Pakistan in 1967.
It is the 2nd largest manufacturer of soft drinks in the world, with a 21 percent share of the carbonated soft drink market worldwide.
History Of PepsiIn 1902 The trademark for the name Pepsi-Cola was registered in U.S Patent Office.it was renamed as Pepsi-Cola on August 28, 1898, then to Pepsi in 1961.In 1931, at the depth of the great Depression, the Pepsi-Cola Company entered bankruptcy.Megargel was unsuccessful, and soon Pepsi's assets were purchased by Charles Guth, the President of Loft, Inc
INTRODUCTION AND HISTORYFounded in 1886 by pharmacist Dr John S Pemberton in Atlanta, Georgia.
It is no.1 brand according to fortune 2009 survey.
The Coca-Cola Company is headquartered in Atlanta, Georgia.
With local operations in over 200 countries around the world.
Coca Cola has 150,900 employees worldwide.
The Coca-Cola Company has been serving for more than 127 years
History of Coke-Cola
Frank M. Rabinson, suggested the name of Coca-Cola.Red has been distinctive color associated with the soft drink ever since.The trademark Cola-Cola was time registered in United state patent office on January 31, 1893.Robert W. Woodruff became the president of company, in the year 1923 and his more than sixty year of leadership took Coca-Cola one of the most recognized and valued brand around the world.In 1961, Sprite was introduced.In 1963, Roberto Goizueta becomes CEO of Coca-Cola.
History of Coke-Cola in Pakistan
The coca cola began operating in Pakistan in 1953.The coca cola plants are located in Karachi, Hyderabad, Sialkot, Gujranwala and Lahore.The Coca Cola company in Pakistan has nearly 3,000 peoples working constantly in company.During the last two years, Company invest $130 million in Pakistan.
Marketing Mix 4Ps
Price How you price your product or service so that your price remains competitive but allows you to make a good profit.
Place Where your business sells its products or services and how it gets those products or services to your customers.
Product The products or services offered to your customer: Their physical attributes, what they do, how they differ from your competitors and what benefits they provide.
Promotion The methods used to communicate the features and benefits of your products or services to your target customers.
Marketing Mix of Coca-Cola
ProductThe Coca-Cola formula is The Coca-Cola Company's secret recipe for Coca-Cola.Coca cola has its market presence around 200 countries.Coca-Cola has a very large product category including e.g. different type of cola drinks, energy drinks, juices and so on.Worlds most favourite brand.
Product Line Total number of coca cola products is 3,500 worldwide
Product line in Pakistan
PriceEarlier Coca-Cola used cost based pricing, but later on when competition started, now Coke has shifted to competitive pricing strategy.The price of Coca Cola also depends on its products and sizes.Prices range from Rs.25 to 110.Pricing is done keeping in view the increasing with Pepsi.
Price cont..Pricing is basically standard for all over the world.Each sub-brand of Coke has different pricing strategy according to the market and its segments.Coke spends more on advertising than manufacturing.Pricing is done keeping in view the increasing with Pepsi.
PlaceCoca cola is the worlds most favorite brand and is available all over the world.You can find Coke at any stores, restaurants, or gas stations even at vending machines. Because Coca Cola is a leading brand.Transportation is done by Air planes, ships, lorries.Coke sets its own distributions directly to stores Supermarket.
Place cont...Distribution channel of Coca-Cola
PromotionCoco-Cola is commonly known all over the world because of their great marketing strategy. It includes variety of methods to present their product:Uses famous people to advert their productAdvertising in TV and magazinesSponsorship activity
SALES PROMOTION ACTIVITIESCoca-Cola Cricket Coca-Cola ConcertsCoca-Cola Food MelaCoca-Cola Basant FestivalCoca-Cola Ramzan Campaign
Slogans life is goodJo Chaho Hojae Coca-Cola enjoyThanda Matlab Coca-ColaKha Le Pee Le Jee Le ("eat drink live")
Marketing Mix of Pepsi
ProductPepsi is made with carbonated water, high fructose corn syrup, caramel color, sugar, phosphoric acid, caffeine, citric acid and natural flavors.Pepsi is available in many flavors according to needs and wants of customers.PepsiCo produced two types of products:Beveragesfoods
Product cont Product line PepsiCo
PriceFollowing factors Pepsi kept in mind while determining the pricing strategy:Price should be set according to the product demand of public. Price should be that which gives the company maximum revenue.Price should not be too low or too high than the price competitor is charging from their customers otherwise nobody will buy your product. Price must be keeping the view of your target market.The best things about the company is that it is very flexible and it can come down the prices very quickly.Competition based pricing.
Prices of Pepsi in Pakistan250 ml-----------------------------------RS. 25.00/-500ml------------------------------------RS. 40.00/-1000ml----------------------------------RS. 55.00/-1500ml----------------------------------RS. 80.00/-2250ml----------------------------------RS. 100.00/-
PlaceThe products were sold in more than 200 countries in the world.The products are available in supermarkets, cafes, restaurants, vending machines, gas stations, movie theaters and so on.
Distribution channelsPepsiCo company distribute its products in three different ways: Direct store delivery
PromotionPepsi Company has also become official sponsors of Pakistan cricket
Pepsi has launched a number of prize schemes to attract new customers.
TPR(Trade Price Reduction) is a promotional strategy of Pepsi on ramzan and Eid. One case is free on buying 10 cases of Pepsi.
Dil Mange abhi
Duniya hai dil walon ki
Made for cricket
Khana bane exiting
Segmentation, Positioning and TargetingSegmentation:Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.TargetingConsists of a set of buyers who share common needs or characteristics that the company decides to servePositioning:The place the product occupies in consumers minds relative to competing products.Involves implanting the brands unique benefits and differentiation in the customers mind.
Segmentation, Positioning and Targeting of Coke-Cola
SegmentationsCoca cola segments its market on following factors:
1. GEOGRAPHIC SEGMENTATIONIt varies according to the taste and income level of the people in that country. I.e.: third world countries are given low quality and taste.Coke segments its products country wise and region wise.2. CLIMATIC SEGMENTATIONIn coke marketing, main idea is to serve it cold, so we that they focus on hot areas of the world.3. LOCALY SEGMENTATIONIn Pakistan the coke segments more in urban and suburban areas as compare to rural areas
TargetingCoca Cola doesnt target a specific segment but adapt its marketing strategy by developing new products.Main consumers are 12-30 years old people; even if there is no specific product or communication for less than 12 or more than 30.No occupation targeted but consumers are mainly students and family oriented people.Age group from 18-25 that covers around 40% of total age segments.No life style targeted but more and more busy life style and mobile generation (youth) are considered to be the most important part of Cokes consumers.
PositioningCoca Cola has strategically positioned itself within the world soft drink market.Brand sells its products in 200 countries in worldThey usestrategic positioningin order to have the same image all around the world.Coca Cola has been successful by using Unique Selling preposition as Live the coke side of life, related to joy and happiness.When the name of Coke is mentioned, the first thing that comes into mind is fun and entertainment
Segmentation, Positioning and Targeting of Pepsi
SegmentationPepsi has segmented their market keeping four major segmentation which are:GeographicDemographicPsychographicBehavioral
TargetingPepsi has historically targeted a young audience especially since the 1980s.Many of their ads were usually aimed at teenagers and even younger groups by introducing fun, sports and music in their ads.Pepsi also attracts other age groups not only teens.Pepsi targeted the every class of Pakistan whether it is a Middle, Upper and lower class.Pepsi targeted the South Asia Region through Cricket Sponsorship in that region.
PositioningFirstly the Pepsi in America try to position its product for the society as whole and for the purpose of refreshment.Pepsis goal is Attract a certain set of customers to buythe product by associating itself with young people who are energetic, fun loving and daring.Low quantity of cafeen.Available in regular size.
SWOT analysis of Coca-Cola Strength Weaknesses Opportunities Threats
StrengthCoca Cola holds the largest beverage market share in the world (about 40%)Coca Cola advertising expenses accounted for more than $3 billion in 2012 and increased firms sales and brand recognition.Coca Cola serves more than 200 countries.The Coca Cola Company is the largest beverage producer in the world and exerts significant power over its suppliers to receive the lowest price available from them
WeaknessesSignificant focus on carbonated drinksThe firm is often criticized for high water consumption in water scarce regions and using harmful ingredients to produce its drinksCoca Cola currently sells more than 500 brands but only few of the brands result in more than $1 billion sales. Plus, the firms success of introducing new drinks is weak. Many of its introduction result in failures, for example, C2 drink.
OpportunitiesConsumption of bottled water is expected to grow both in US and the rest of the world.Coca Cola Company has an opportunity to further expand its product range with drinks that have low amount of sugar and calories.Coca Cola will find it hard to keep current growth levels and will find it hard to penetrate new markets with its existing product portfolio. All this can be done more easily through acquiring other companies
ThreatsConsumers around the world become more health conscious and reduce their consumption of carbonated drinks, drinks that have large amounts of sugar, calories and fat.Water is becoming scarcer around the world and increases both in cost and criticism for Coca Cola over the large amounts of water used in production.Legal requirements to disclose negative information on product labels.Coca Colas gross profit and net profit margin was decreasing over the past few years
SWOT Analysis of PepsiStrengthWeaknessesOpportunitiesThreats
StrengthPepsiCo has several hundreds of brands.PepsiCo serve customers in more than 200 countries.Successful marketing and advertising campaigns.More than $2 billion spent on advertising.
WeaknessesPepsiCo usually prices its products lower than its competitors.The Coca Cola Company has the largest share market of beverages in the world and much stronger brand awareness than Pepsi, placing it at competitive disadvantage.PepsiCos net profit margin is 9.7% compared to Coca Colas 18.55% and Nestls 11%.
OpportunitiesDue to increase in demand for healthy food and beverages.Consumption of bottled water is expected to grow in future.opportunity PepsiCo has in growing its revenue selling snacks as this market is also expected to grow.
ThreatsConsumers around the world become more health conscious and reduce their consumption of carbonated drinks.PepsiCos gross profit margin was decreasing over the past few years.Some researches show that particular ingredients, consumed in extra large quantities, in some of PepsiCo products could cause cancer. For this reason, many governments consider to pass legislation that requires disclosing such information on product labels
ConclusionCoke is the market leader with 54% market share.Pepsi is having only 46% market shareCoke and Pepsi hold almost 75% the whole market.That Pepsi is the leading brand of PepsiCo, with 29% market share of its total market share.Thumbs up is the leading brand of coke with market share of coke-cola.
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