Coca Cola and Pepsi are the brands with the highest brand equities. Both, Coca Cola and Pepsi have gone through the highs and lows of their business to reach that position. Coca Cola’s marketing has been changing over time with more and more products being added every day, while Pepsi has implemented several smart marketing strategies to improve its turnover and profits. So, let’s see what were the marketing strategies implemented by Coca Cola and Pepsi.
Coca Cola & Pepsi Product Strategy:
Coca Cola was focused on the globalization of its brand. Coca Cola has the widest variety in the beverage industry comprising of around 3300 products and it exists in almost 200 countries. Coca Cola has a global brand value and loyalty as compared to
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Coca Cola & Pepsi Price Strategy:
Since there are a wide range of products available, the pricing for both Coca Cola and Pepsi is done according to the Market demands and the geographic segment and thus both the products pricing are set around the same level. Neither of the brands can win if they enter into a price war, simply because the cost of manufacturing and transportation is huge. The advantage to either of the companies was if they enter into a brand war. Since, Coca Cola always had competitors constantly driving them to be smarter, better and faster and since they were successfully been existing for more than a century, they have had to remain consistent with their pricing strategy. Throughout the years, Coca Cola has made many pricing decisions, but eventually the ultimate goal is to maximize the shareholder value. Coca Cola uses lower price point to penetrate new markets to face competition and also to raise brand awareness. This strategy is strongly implemented till it repositions itself as the Premium beverage as compared to its competitors.
Pepsi’s has a large number of product lines and brands and thus the prices are considerably varied. Their main pricing strategy is based on the Market-Oriented pricing strategy to ensure that its prices are competitive as compared to the competitor’s prices and market conditions. Pepsi also used
The Coca-Cola company has been in business since its inventor began selling it in drug stores in 1886 (The Coca-Cola Company, 2009). Pepsi-Cola was invented a short time later in 1898, but at the time it was called “Brad’s drink.” It was later renamed Pepsi-Cola in 1902 (Butler, 2006). Since those early days when the sodas were invented, Coca-Cola and Pepsi have been in competition with each other for the domination of the world’s soda market. Over the course of more than a century, sales have continued to rise for both companies, and they both consistently earn a profit. Both companies
Pricing throughout the years has stayed consistent. Coca-Cola had maintained their price around 5 cents for around 70 years. Where Pepsi’s price has fluctuated throughout the years do to rationing around World War I, and other economic struggles. The main reason Pepsi had struggled so much was transportation fees to get the ingredients to make the product. Throughout all the struggles Pepsi has face it is still a strong
In carbonated soft drink market since 80s to till coca-cola and Pepsi are rival company and trying to dominating each other via advertising war through printing media, video advertising, campaigns, event and doing experiential marketing.
The Concentrate Producer industry can be classified as a Duopoly with Pepsi and Coke as the firms competing. The market share of the rest of the competition is too small to cause any upheaval of pricing or industry structure. Pepsi and Coke mainly over the years competed on differentiation and advertising rather than on pricing except for a period in the 1990’s. This prevented a huge dent in profits. Pricing wars are however a feature in their international expansion strategies.
As mention before, Coca-cola has 47.3 percent market share in the country’s cola market versus Pepsi which hold 44.5 percent. Coca-cola is also the brand known around the worlds, which are the largest producer and distributor of ark colas in the world. Even in the current monetary crisis, the company continues to expand and the financial position shows that Coca-cola has a strong cash position in compare to PepsiCo which the long term debt of PepsiCo is so high.
“Coca-Cola brands are available to consumers throughout the world. Today they account for 1.7 billion servings of all beverages consumed worldwide daily. Coca-Cola has the edge in the market and because they are first to capitalize on new consumer trends. They continue to focus on continuous operating improvements, and they are ever changing to meet market demands. Pepsi Co satisfies the needs of its customers with the wide variety of products offered. They also have the different type of beverage or snack and its brands can substitute for each other. Coco-Cola and Pepsi Co is known as the top 100 most valuable brands in the world.
MISSION Increase in shareholder’s price over time. with business partners to deliver satisfaction and price to customers through world wide system of superior complete and services so increasing the complete equity. contribution from every of the given areas:- People operating within the company. Commitment of the company. Environmental polices. Internal management. SWOT ANALYSIS STRENGTH Company product having a good brand and trade mark. so there's no such problem for convenes the user. Being a franchise company product trade mark. That’s why it’s scope is worldwide. Coca cola capturing close to about sixty nine market in cold drinks line remaining 31st captured by its main challenger Pepsi. the explanation behind that sensible offer and its all flavor like Thumsup, Limca, Fanta, Maaza and fairy also asked by the user in Sahibabad space. Coca Cola sensible complete Image not solely in India rather everywhere the planet.
The pricing technique of Coca-Cola has supported the firm to compete and grow in the soft drink effectively. The volume discount and pricing penetration are the vital aspects to provide the firm generates its sales in the market. For instance, Coca-Cola partners with large supply chains such as Costco, Sam’s Club, and Walmart to provide great discount pricing in order to generate its sales substantially in the U.S and the global market. Equally, the firm also distributes its
Coca-Cola, with more than thirty-five hundred products, is a leading company in the beverage industry. The start of the company can be traced back 125 years ago. As of now, the company has business in more than two hundred countries with around 139,600 employees. Per Gary Armstrong and Philip Kotler, the marketing mix of an organization consists of a blend of advertising, personal selling, direct marketing, sales promotions and public relations. A company can take tactical measures to communicate customer values and develop customer relationships. The same is pretty much applicable for Coca-Cola. Its marketing communication is a blend of various advertising and sales channels.
Pricing strategy of PepsiCo is depending on consumer’s perception of value. PepsiCo also change to a new “hybrid everyday value” plan for reduce the prices for different in between holiday and regular day. The purpose of the new pricing strategy is to discount on holiday with value package. The new pricing strategy is designed to boost up the sales and profit. PepsiCo use that strategy because they want to attract more daily customer. Prices of the products also have to bring the maximum benefits and profile for PepsiCo. Following factors PepsiCo kept in mind while determining the pricing strategy. PepsiCo should not set their products’ price too high or too low compared to the competitor company. Moreover, PepsiCo’s products pricing strategy might influence the relationship between PepsiCo and Walmart because Walmart is focusing on selling low price for the product. So that, it may put some pressure on PepsiCo because it low down the
Pepsi decides it price on the basis of competition. The best think about the company Pepsi is that it is very flexible and it can come down with the price very quickly. The company is renowned to bring the price down even up to half if needed. But this risk-taking attitude has also earned Pepsi losses. Though lowering the price would attract the customers but it would not help them cover up the cost incurred in production hence causing them losses. This was the situation earlier but now Pepsi is a full-fledged and growing company. It has covered all its losses and is now growing at a
Also, Coca-Cola has very strong rivalries. The main one is of course PepsiCo, which is very famous all over the world and has a great variety of products. Thus, Coca-cola can’t afford its image to be damaged because if that happens PepsiCo will become the leader of the industry very fast. Right now Coca-Cola needs a new Strategic Communication Plan to try to overcome the issues.
PepsiCo is the second most popular beverage company in the world, according to PepsiCo (2008). This company has an outstanding marketing brand name. PepsiCo sponsors numerous sporting events and has a wide variety of consumers. This product is in competition with the first popular beverage company Coke-Cola. This company evaluates every year on a strategic plan by using SWOTT analysis to manage their products to learn the internal and external factors of the marketing business.
The Coca-Cola Company is considered one of the largest distributors, marketers and manufactures of soft drink syrups and concentrates internationally (Bodden, 2009). Headquartered in Atlanta, Georgia, in America, it is popularly known for its Coca-Cola flagship product, and is among the biggest corporations in the United States. Presently, Coca-Cola is a globally known soft drink company with further ambitious plans of growing the brand to places it has no presence. The majority of the soft drinks in the vending machines and coolers in the United States are owned by Coca-Cola. Some of these soft drink brands include Coca-Cola and its sub brands, such as Sprite, Fanta, PowerAde, Dr. Pepper and Oasis (Bodden, 2009). The company also produces sports and fruit juice drinks. Coca-Cola 's global presence is phenomenal and its brand logo, colors, advertising and pricing strategies are considered among the best and most recognized worldwide. So, what pricing strategy has made Coca-Cola successful as compared to its competitors? In order to answer this question, we will look at the pricing strategies of three Coca-Cola products that include Coca-Cola, Fanta and Sprite, and how Pepsi Cola can gain a competitive advantage.
There are many factors, internal as well as external that impact the planning function of management within an organization, and Coca-Cola is no exception. More than a billion times every day, thirsty people around the world reach for Coca-Cola products for refreshment. Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. The Coca-Cola franchise covers a population of approximately 398 million people. Coca-Cola Enterprises employs approximately 72,000 people who operate 463 facilities, 54,000 vehicles and approximately 2.4 million vending machines, beverage dispensers and coolers.