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Select two companies which compete against each other.

Identify
their market, target audience, market share and analyze the strategies
they adopted to sustain in the market. Among the two companies,
why and how did one company dominate over the other? Justify with
facts. If you were the CEO of the company which bowed out of the
race, what would you do to regain the lost market?

PEPSICO COMPANY

Pepsico is the 18th largest American company with its world wide
operations in 190 countries . Starting from a Zero base , pepsi today
enjoys a leadership in Cola category.

Target audience

They targeted from the age of very younger generation like 7 years
to older generation. Clearly targeting the youth having never failing
attitude the desire to make challenges and the power to turn the
things around which reflected in the tagline

Chaho tho kuch bhi aasaan like a hindi proverb using some
connotations

IMPACT OF PEPSI YOUNGISTAN CAMPAIGN ON CONSUMERS

Pepsi take 33% of profits from soft drink industry and that is very
high ratio in comparison of coca cola. Pepsi always believe in new
innovated advertisement and always came up new attracting ads
focusing youngster, so they can capture the youth of country .

MARKETING CHALLENGES WELL FACED


Cleary targeting youth.
Maintain his position in market and attracting new customers and
retaining old one.
The market for Soft drinks is huge and comprises of high degree of
potential so capture as much as you can. There is always a need for
something new and exciting advertisement in the beverages industry.
The advertisement of soft drinks is very competitive, so every time
something new attracting, exciting and innovative is required.(means
young ads)
To gain more markets share in the beverages industry.
To compete with thumbs up and coca cola.
To represent the word of youth where the young generation likes to be
in a control. It brings forward their never failing attitude their desire to
take challenges and the power to turn things around.
CAMPAIGN OBJECTIVES WELL FULFILLED
It created awareness and even made youngistan famous
It built attitude of Pepsi as this brand have never failing attitude.

Pepsico has become the largest selling soft drink in the world it is
liked by people of all ages belonging to different fields of life
belonging to different casts’ religions. A recent survey shows about
90% of the world population when asked which soft drinks do they
prefer replied Pepsi. When asked for the reason for this liking they
replied not only does Pepsi gives them higher quality but also gives a
large variety of other flavors and new drinks
Slogans
One of the main reasons for the popularity of Pepsi is the use of
slogans which they use to attract the customers. Different slogans
have been used to attract different people of different ages. They use
different slogans in different countries around the world

· 1986: "We've Got The Taste" (Commercial with Tina Turner)


· 1990: "You got the right one Baby UH HUH" ( sung by Ray Charles for
Diet
Pepsi )
· 1991: "Gotta Have It"/"Chill Out"
· 1992: "Be Younger, Have Fun, Drink Pepsi"
· 1993: "Right Now"Van Halen Song for the Crystal Pepsi Ad
· 1995: "Nothing Else is a Pepsi"
2007: "More Happy"/"Taste the once that's forever young" (Michael
Alexander)
· 2008: "Yeh Hai Youngistaan Meri Jaan" (India)
· 2008: "Pepsi Stuff" Super Bowl Commercial

Some of the most famous celebrities that have acted as spoke persons
are as follows.
· United States of America
1. Puerto Rican singer Chayanne
2. Joanie Sommers
3. Britney Spears
4. Ray Charles

The marketing mix is a device used by a marketer which breaks down


into four
separate parts: product, price, place, and promotion, also referred to
as the four P’s of marketing.

Cola North America's carbonated soft drinks, including: Pepsi, Diet


Pepsi,
Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and
Mug Root Beer account for nearly one-third of total soft drink sales in
the United States. Pepsi-Cola North America's non-carbonated
beverage portfolio includes Aquafina, which is the number one brand
of bottled water in the United States, Dole single-serve juices and
SoBe, which offers a wide range of drinks with herbal ingredients. The
company also makes and markets North America's best-selling, ready-
to-drink iced teas and coffees via joint ventures with Lipton and
Starbucks, respectively. PepsiCo, Inc. is one of the world's largest food
and beverage companies. The company's principal businesses include:
Frito-
Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana
juices, and Quaker Foods. PepsiCo, Inc. was founded in 1965 through
the merger of Pepsi-Cola and Frito- Lay. Tropicana was acquired in
1998.
Company, creating the world’s fifth-largest food and beverage
company. In 1963, the Pepsi-Cola Company introduced its first diet
drink - Diet Patio Cola. At the time, they decided to rename their diet
drink "Diet Pepsi." This made Pepsi-Cola the first company to name a
diet drink after their flagship brand. The initial advertising of Diet
Pepsi was combined with Pepsi advertising. The slogan was "Pepsi
Either Way." Over the years, Diet Pepsi has developed into a major
brand, able to stand alone. One of the interesting aspects of Diet Pepsi
is the number of changes made to the product and packaging.

Price is the next ingredient in the marketing mix. The price of a


product depends on several factors including, but not excluded to, the
product being offered, competitors pricing on a like item and the
demand for the product. Companies have a variety of methods to
reach the most competitive price for their product. One example of this
would be cost-based pricing. Cost-based pricing is simply adding a
markup to the cost of the item. On the other hand, a company could
also employ value-based pricing. Value-based pricing is a hypothesis
of the maximum amount of money a person will spend on a product
and then pricing the item below that figure to make the item more
appealing. Both pricing techniques take into account the supply and
demand for an item. I think the market for Pepsi is an elastic market,
even though people love it. If the price rises to high people you have
some people that will switch to Coke or some other brand of cola. Pepsi
ranges in price anywhere from 89 cents to $1.59 for a 2 liter bottle.
Pepsi price at this point is comparable with its competitors. The fact
that Pepsi keeps it price for 2 liter bottles most of the time to $1.69
that makes the people purchase it more.

COCA COLA

Coca-Cola has sold more than one billion servings every day. More
than 10,450 beverages are consumed every second. The company
achieved earnings of $4,347,000,000 in 2003. It is present on all
seven continents and is recognized by 94% of the world population.
Coca-Cola used numerous technologies to achieve its rise to the top of
the soft drink industry, defining new technologies and
establishing paradigms that popped the status quo like a cap from a
soda bottle. Through technology, Coca-Cola perfected Coke as a
beverage and spread it throughout the world. Even today, the US soft
drink industry is organized on this principle. "The Coca-Cola Company"
is now the largest soft drink company in the world. Every year
800,000,000 servings of just "Coca-Cola" are sold in the U.S

Company Background
The Coca-Cola Company is now the largest soft drink company in the
world. Coca- Cola became the largest manufacturer, distributor, and
marketer of non-alcoholic beverage concentrates and syrups which
operate in more than 200 countries

Corporate Vision & Mission


Coca-Cola has been marketed with catching marketing themes such as
"Drink Coca- Cola" and "Delicious and Refreshing". After years of
globalization and brand building, Coca-Cola proudly pronounces its
Mission Statement "The Coca-Cola Company exists to benefit and
refresh everyone who is touched by our business".
And their goals: The basic proposition of our business is simple, solid
and
timeless. When we bring refreshment, value, joy and fun to our
stakeholders, then we successfully nurture and protect our brands,
particularly Coca-Cola. That is the key to fulfilling our ultimate
obligation to provide consistently attractive returns to the owners of
our business.
Goals
"That combination infuses all the elements of the strategy that we are
implementing to deliver value to our share owners in the year to come,
and well into the future:
a) Accelerate carbonated soft-drink growth, led by Coca-Cola;
b) Selectively broaden our family of beverage brands to drive
profitable
growth;
c) Grow system profitability and capability together with our bottling
partners;
d) Serve customers with creativity and consistency to generate growth
across
all channels;
e) Direct investments to highest potential areas across markets; and

f) Drive efficiency and cost-effectiveness everywhere."

New products introduction


The company introduced a variety of new brands and products in 2003
and 2004.
Among numerous examples are Vanilla coke, Diet Vanilla Coke in more
than 50
countries and Sprite Remix and Brag's Floatz in selected US markets.
Brand is attractive to global partners
With its strong portfolio, customer base and powerful marketing
strategies, Coca-
Cola has been able to attract other globally renowned companies to
use its
products. For instance, it currently provides Burger King and McDonald
with soft
drinks. This has provided Coca-Cola with a strong opportunity to boost
consumer

awareness and the circulation of its products internationally.

Competition
The non-alcoholic beverages segment of the commercial beverages
industry is highly
competitive. Competitive products include carbonates, packaged
water, juices and
nectars, fruit drinks, sports and energy drinks, coffee and tea and other
beverages. Non-alcoholic beverages are sold to consumers in both
ready-to-drink
and not-ready-to-drink-form. Consumer buying power also represents a
key threat in
the industry. The rivalry between Pepsi and Coke has produced a very
slow moving

industry in which management must continuously respond to the


changing attitudes

Key Success Factors


Today Coca-Cola is not only US's most popular soft drink, but it's the
biggest
selling of all grocery brands across all categories. From the analysis of
Porter's Five Forces Model has led to the identification of key success
factors
which Coca-Cola needs in order to gain competitive edge in the
beverage industry.
Brand recognition
"Enjoyed more than 685 million times a day around the world Coca-
Cola stands as a
simple, yet powerful symbol of quality and enjoyment." (Allen, 1995)
Coca-Cola's
product image is loaded with over-romanticizing and this is an image
many people
have taken deeply to heart. The primary concern over the past few
years has been
to get this brand name to be even better known. The extremely
recognizable
branding is one of Coca-Cola's success factors. The Coca-Cola's image
is
displayed on T-shirts, hats, and some collectible memorabilia.

Branding
Coca-Cola posses a number of instantly recognizable brands which go
beyond the familiar taste of its product when compare with other
products. Coca-Cola benefits from its registered trade mark and its
characteristic classic shapes of bottles. Also the highly familiar red
and white Coca-Cola can. Coca-Cola also produces others popular
flavored soft drink, like Sprite, Fanta, Diet Coke, and Cherry Coke.
These products can be mass marketed across the globe using standard
advertising and promotions.
Advertising
Advertising is the most effective way in gaining social acceptance for
Coca-Cola's products. The Coca-Cola Company created advertising
slogans which are very memorable until today, like 1886-Delicious and
refreshing; 1993-Always Coca-Cola.
Coca-Cola's powerful brand personality can become a vehicle for
promotion in its own right.
Global and local sponsorship of sport
The relationship which Coca-Cola has with sport seeks to advance the
development of sport overall and to help make sporting competitions
possible by supporting.
Since 1928, the Coca-Cola Company's active sponsorship of the
Olympic ideal has continually grown in depth. Until today Coca-Cola
has a long history of sports sponsorship including the Olympic Games,
football, tennis and special Olympic This reflects the way that the
company operates and helps Coca-Cola become the world's most
popular soft drinks.
Worldwide leadership
Coca-Cola needs to continually build on its brand image through
successful advertising, promotion and provision of value-for-money
products. The company requires consistent expansion and
development in its distribution systems. Coca- Cola is enabling to do
this effectively due to its strategy of growth which has enabled the
company to develop international market leadership.

IF im the CEO of that company

TO REGAIN THE LOST MARKET

Lost market can be regained by a wide various ways , as we cannot


bring the customers to the store we need to keep some deals so
that customers can be satisfied here are some ways I can manage
to protect my company

ENTREPRENEUR ROLE
Seeks to improve unit by adapting it to changing conditions in the
environment
Development projects at CEO
a. projects do not involve single decisions or even unified clusters of
decisions.
emerge as a series of small decisions and actions sequenced over
time

TOWARD MORE EFFECTIVE


MANAGEMENT
The CEO effectiveness is
significantly influenced by their insight into their own work Major
managerial logjams stemming from the oral nature of
the manager’s information:
• dliemma of delegation
• the data base centralized in one brain
• problems of working with the management scientist

1. im challenged to find systematic ways to share his/her privileged


information
• regular debriefing with key
subordinates
• weekly memory dump on the
dictating machine/PC
• maintain a diary of important
info for limited circulation

Reality: job pressures drive manager to be superficial in his/her


actions –
- overloaded with work,
- encourage interruption, -
- respond quickly to every stimuli, - seek the tangible and avoid the
abstract, and - make decisions in small increments,

2. Dealing with pressures of superficiality:


- give serious attention to the issues that require it, - step back from
tangible bits of
info in order to see the big picture, and - make use of analytical inputs
Danger:
Responding to every issue equally – need to prioritize Solution:
planning – when little time available in addressing complex
issues
The “planning dilemma”: Managers have info and
Authority .Analysts have time and technology

3. Gain control of his/her own time:


Turn obligations into advantage and those which he/she wishes
to do into obligations Lots of demands for obligatory
time: Turn a speech into a lobbying for
a cause or a promotion of the org
A meeting is a chance to reorganize
a weak dept A visit to an important customer is a chance to extract
trade
do things that are important –turn them into obligations
Free time is made, not found;
forced into schedule