Coke Vs Pepsi 1

1. INTRODUCTION
The assignment Iocuses on analyzing and comparing two companies which belong to
same sector or industry with a marketing angle. The purpose states that the study oI the
module Marketing Management needs to be implemented in virtual Iront by providing
thoughtIul process to the company chosen.
2. Two Companies In The Same Sector
2.1 About 1he Company: Coca Cola
Coca-Cola is produced by The Coca-Cola Company oI Atlanta, Georgia, and is oIten
reIerred to simply as Coke (a registered trademark oI The Coca-Cola Company, which is
in the United States since March 27, 1944). It is a carbonated soIt drink sold in the stores,
restaurants, and vending machines oI more than 200 countries.. Originally proposed as a
patent medicine when it was invented in the late 19th century by John Pemberton, Coca-
Cola was bought out by businessman Asa Griggs Candler, whose marketing strategies led
Coke to its governing oI the world soIt-drink market throughout the 20th century.
The company produces and oIIers concentrate, which is then sold to licensed Coca-Cola
bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with
the company, produce Iinished product in cans and bottles Irom the concentrate by
combining it with Iiltered water and sweeteners. The bottlers then distribute and
merchandise Coca-Cola to retail stores and vending machines. This includes Coca-Cola
Enterprises, which is the largest single Coca-Cola bottler in North America and Western
Europe. The Coca-Cola Company also sells concentrate Ior soda Iountains to restaurants
and Iood service distributors.
The Coca-Cola Company has introduced on occasions, other cola drinks under the Coke
brand name. The most common an used oI these is Diet Coke, with others including
CaIIeine-Free Coca-Cola, Coca-Cola Cherry, Coca-Cola Zero, Diet Coke CaIIeine-Free,
Coca-Cola Vanilla, and special editions with lemon, lime or coIIee.
Mission, Vision & Values
The world all around us is changing. To continue to Ilourish as a business over the next
ten years and beyond, the company must look ahead; understand the trends that will
shape business in the Iuture and move Iast to prepare Ior what's to come. The company
must get ready and be prepared Ior tomorrow today. That's what 2020 Vision is all about.
It creates a long-term destination Ior business and provides a "Roadmap" Ior winning
together with bottling partners.
1
Coke Vs Pepsi 2
Coke`s Mission
Coke`s roadmap starts with a mission, which is lasting. It declares its aim as a company
and serves as the standard against which company measures its actions and decisions.
To reIresh and revive the world.
To encourage moments oI optimism and happiness.
To create value and hence make a diIIerence.
Coke`s Vision
Company`s vision a Iocus serves as the Iramework Ior its Roadmap and guides every
aspect oI business by describing what it needs to achieve in order to continue achieving
sustainable, quality growth.
People: Be a great place to work where people are encouraged to be the best they
can be.
Portfolio: Bring to the world a portIolio oI quality beverage brands that expect
and satisIy people's desires and needs.
Partners: Nourish a winning network oI customers and suppliers, together we
create mutual, enduring value.
Planet: Be a responsible and answerable citizen that makes a diIIerence by
helping to build and support sustainable communities.
Profit: Increase long-term return to shareowners while being mindIul oI our
overall responsibilities.
Productivity: Be a highly eIIective and Iast-moving organization.
Coke`s Winning Culture
Winning Culture oI the company deIines the attitudes and behaviors that will be needed
to make its 2020 Vision a reality.
Live Its Values
Company`s values serve as a plot Ior its actions and describe how it behaves in the world.
Leadership: The courage and conIidence to shape a better Iuture
2
Coke Vs Pepsi 3
Collaboration: Leverage collective and combined genius
Integrity: Be real and authentic
Accountability: II it is to be, it's up to me
Passion: Committed and obliged in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do the best
Focus on the Market
Concentrate on needs oI our consumers, customers and Iranchise partners
Get out into the market and listen, observe,notice and learn
Dominate a world view
Concentrate on execution in the marketplace every day
Be insatiably careIul and curious
Work Smart
Act quickly
Remain liable to change
Have the courage to change when needed
Remain constructively discontent and unsatisIied
Work eIIiciently and eIIectively
Act Like Owners
Be accountable and liable Ior actions and inactions
Steward system assets and concentrate on building value
Reward people Ior taking risks and Iinding better ways to solve problems
Learn Irom our results -- what worked and what didn`t
3
Coke Vs Pepsi 4
Be the Brand
Inspire creativity, passion, optimism and Iun.
The Coca Cola system
The Coca Cola system comprises our Company and more than 300 bottling partners
worldwide. Company`s primarily manuIactures and sells concentrates, beverage bases
and syrups to bottling operations, which then produce a wide array oI Coca Cola
beverages. Our Company owns the brands and is responsible Ior consumer marketing
initiatives. Our bottling partners, in addition to manuIacturing the Iinal branded
beverages, also handle merchandising and distribution and work closely with customers
grocery stores, restaurants, street vendors, convenience stores, movie theaters and
amusement parks, among many othersto bring our beverages to consumers at a rate oI
1.5 billion servings a day.
About 1he Company: Pepsi
Pepsi is a carbonated soIt drink that is produced and manuIactured on a large scale by
PepsiCo. It was invented in 1883 and introduced as "Brad's Drink", it was later renamed
as Pepsi-Cola on June 16, 1903.
Pepsi was Iirst introduced as "Brad's Drink" in New Bern, North Carolina, in 1883 by
Caleb Bradham He made it at his pharmacy where the drink was actually sold. It was
later named Pepsi Cola, probably due to the digestive enzyme pepsin and kola nuts used
in the recipe. Bradham searched to create a Iountain drink that was delicious and would
aid in digestion and boost energy.
In 1903, Bradham moved and advanced the bottling oI Pepsi-Cola Irom his drugstore to a
rented warehouse. And that year, Bradham sold 7,968 gallons oI syrup. The next year,
Pepsi was sold in six-ounce bottles, leading to increase in sales to 19,848 gallons. In
1909, automobile race pioneer Barney OldIield was the Iirst celebrity to endorse and
support Pepsi-Cola, describing it as A bully drink...reviving, invigorating, a Iine bracer
beIore a race.` The advertising theme and slogan "Delicious and HealthIul" was then used
Ior the next two decades.

In 1926, Pepsi received its Iirst logo redesign and improved
since the original design oI 1905. However in 1929, the logo was changed again.
Vision Statement
Company`s vision and Iocus is to continuously improve the economic well-being and
quality oI liIe Ior all PBV stakeholders. It deIines stakeholders as all employees, its
owners, its customers and its suppliers.
The Mission
4
Coke Vs Pepsi 5
Company`s aim is to maximize long term shareholder value by being an industry leader
in terms oI growth, proIit, and customer service.
Company does this by:
OIIering, assisting and expanding portIolio oI relevant brands
'Best in Class customer service and partnerships
A supply chain which is cost eIIicient and customer Iocused
A relentless Iocus on product quality, continuous improvement, Iood saIety and
trademark protection to beneIit all oI our stakeholders
Employees who are valued, motivated, capable and accountable
3. Marketing Mix
Marketing Mix is the set oI marketing tools that the Iirm uses to pursue its marketing
objectives. Marketing mix has a classiIication Ior these marketing tools. These marketing
are classiIied and called as the Four Ps and these are Product, Price, Place and Promotion.
The most basic marketing tool is product which includes product design, quality,
Ieatures, branding, and packaging.
A critical marketing tool is price which is the amount oI money that customers pay Ior
the product. Price also includes discounts, allowances, credit terms and payment period.
Place is another key marketing mix tool. And it includes various activities the company
undertakes to make the product accessible and available to the customer. Some Iactors
that decide the place are transport Iacilities, channels oI distribution, coverage area, etc.
Promotion is the Iourth marketing mix tool which includes all the activities that the
company undertakes to communicate and promote its product to target market. Promotion
includes sales promotion, advertising, sales Iorce, public relations, direct marketing, etc.
Four Ps of Marketing Mix In Context With Coke And Pepsi
5
Coke Vs Pepsi 6
PRODUCT
In marketing, a product is anything that can be oIIered to a market that might satisIy a
want or need. It is oI two type i.e Tangible (physical) and Intangible (non-physical).
Since services have been at the IoreIront oI all modern marketing strategies, some
intangibility has become essential part oI marketing oIIers. It is thereIore the complete
bundle oI beneIits or satisIactions that buyers perceive they will obtain iI they purchase
the product. It is the sum oI all the physical, psychological, symbolic, and service
attributes, not just the physical merchandise. All products oIIered in a market can be
placed between Tangible (Pure Product) and Intangible (Pure Service) spectrum.
A product and goods are similar to each other. In accounting, goods are physical objects
that are available in the marketplace. This diIIerentiates them Irom a service, which is a
non-material product. The term goods is used primarily by those that wish to abstract
Irom the details oI a given product. it is useIul in accounting and economic models. The
term product is used primarily by those that wish to examine the details and richness oI a
speciIic market oIIering. As such it is useIul to marketers, managers, and quality control
specialists.
A service is a non-material or intangible product - such as proIessional consultancy,
serving, or an entertainment experience.
Coke - Product
The Coca-Cola Iormula is The Coca-Cola Company's secret recipe Ior Coca-Cola. Since
a publicity marketing strategy started by Robert W. WoodruII, the company presents the
Iormula as one oI the most closely held trade secrets ever and only a Iew employees
know or have access to. The Iormula oI Coca Cola appears to be the original Iormula to
Coca-Cola. It is Irom the book called 'For God, Country and Coca-Cola.
6
Coke Vs Pepsi 7
The Coca-cola Company is a multinational and it is not limited only to one product.
Through the years they have invented and introduced many products than their main cola
drinks. The list oI Coca-cola brands are as Iollows:
Appletiser
Aquarius
BPM Energy
Barq's
Beat soda
Lemon & Paeroa
LiIt
LiIt plus
Lilt
Manzana LiIt
7
Coke Vs Pepsi 8
Beverly
Cannings
Cheers
Ciel
Coca-Cola Black
Cherry Vanilla
Coca-Cola Blak
Coca-Cola C2
Coca-Cola Cherry
Coca-Cola Citra
Coca-Cola M5
Coca-Cola Zero
Coca-Cola
Coca-Cola with
Lemon
Coca-Cola with Lime
Dasani
Delaware Punch
Diet Coke
Fanta
Fanta Citrus
Fioravanti
Fresca
Frisco
Fruitopia
Frutonic
Full Throttle
Georgia
Hi-C
Hit
Kia-Ora
Kinley
Mare Rosso
Mello Yello
Mezzo Mix
Minute Maid
Nestea
New Coke
Nordic Mist
OK Soda
Pibb Xtra
Powerade
Qoo
Raspberry Coke
Relentless
Sarsi
Senzao
Simply Orange
Smart
Sparkle
Sprite
Sprite Ice
Sprite Remix
Sprite Zero
Surge
Swerve
Tab
Tab Clear
Tab Energy
Tab X-Tra
Tiky
Vault
Pepsi - Product
The Pepsi-Cola drink contains basic ingredients Iound in most other similar drinks
including carbonated water, high Iructose corn syrup, sugar, colorings, phosphoric acid,
caIIeine, citric acid and natural Ilavors. The caIIeine Iree Pepsi-Cola contains the same
ingredients but no caIIeine.
Some oI the diIIerent and varied brands oI Pepsi are as Iollows:
All Sport
AquaIina
Pepsi
Pepsi Blue
8
Coke Vs Pepsi 9
CaIIeine-Free Pepsi
Crystal Pepsi
Diet Pepsi
Gatorade
Izze
Jazz
Josta
Kas
Manzanita Sol
Mirinda
Mountain Dew
Mountain Dew AMP
Mountain Dew LiveWire
Mountain Dew MDX
Mug Root Beer
Pepsi Cappuccino
Pepsi Max
Pepsi ONE
Pepsi Samba
Pepsi Tarik
Pepsi Twist
Propel Fitness Water
Sierra Mist
Slice
SoBe
Storm
Teem
Tropicana Products
Tropicana Twister
Coke v/s Pepsi-Product
As seen above both the companies Coke and Pepsi have a number oI products. Many oI
these products are innovations but there are also many products which are brought out
just as a competitive product Ior the other companies. Some oI these products that are
brought in the market by both the companies to compete against each other are as
Iollows:
Coke Pepsi
The main dark cola drink oI the company
which started the rivalry between these
companies.
Pepsi version oI dark cola which is the
major primary competitor to Coke.
Full Throttle is an energy drink brand
produced by The Coca-Cola Company. It
debuted in late 2004 in North America.
AMP is an energy drink produced and
distributed by PepsiCo under the Mountain
Dew soIt drink brand.
9
Coke Vs Pepsi 10
Vault is a carbonated beverage that was
released by The Coca-Cola Company in
June 2005.
Mountain Dew MDX is an energy drink
manuIactured and distributed by PepsiCo
under the Mountain Dew brand. It was
introduced in 2005.
Powerade is a sports drink by The Coca-
Cola Company and currently number two
in the sports drink market worldwide.
Gatorade is a non-carbonated sports drink
marketed by Quaker Oats Company, a
division oI PepsiCo. Originally made Ior
athletes, it is now oIten consumed as a
snack beverage.
Sprite is a clear, lemon-lime Ilavored, non-
caIIeinated soIt drink, produced by the
Coca-Cola Company. It was introduced to
the United States in 1961.
7 Up is a brand oI a lemon-lime Ilavored
soIt drink.
Minute Maid is a product line oI beverages,
usually associated with orange juice, but
now extends to soIt drinks oI many kinds.
The Minute Maid company is now owned
by Coca-Cola, and is the world's largest
Tropicana Products is an American
company based in Bradenton, Florida,
USA, which is one oI the world's largest
producers and marketers oI orange juice. It
has been owned by PepsiCo, Inc. since
1998.
10
Coke Vs Pepsi 11
marketer oI Iruit juices and drinks. It is
headquartered in Houston, Texas.
Nestea is a brand oI iced tea manuIactured
and distributed by the Nestle company's
beverage department in the United States,
and by Coca-Cola in several European
countries, Brazil and Venezuela.
Lipton Original Iced Tea is a ready-to-
drink iced tea brand sold by Lipton through
a worldwide partnership with Pepsi.
Barq's is a brand oI root beer notable Ior
being the only major North American root
beer to contain caIIeine. It has been bottled
since the start oI the 20th century and is
currently sold by the Coca-Cola Company.
Mug Root Beer is a brand name oI root
beer made by the Pepsi company.
Diet Coke or Diet Coca-Cola is a sugar-
Iree soIt drink produced and distributed by
The Coca-Cola Company. It was
introduced in the United States in July
1982.
Diet Pepsi is a low-calorie carbonated cola.
It was introduced in 1964 as a variant oI
Pepsi-Cola with no sugar.
11
Coke Vs Pepsi 12
Kinley is a brand oI still or carbonated
water owned by The Coca-Cola Company.
AquaIina is a non-carbonated bottled water
produced by PepsiCo.
Aquarius is a mineral sports drink
manuIactured by The Coca-Cola Company.
It was Iirst introduced in 1983.
All Sport was a sports drink. It is produced
by PepsiCo.
Fanta is a soIt drink brand owned by The
Coca-Cola Company. It is produced and
distributed by The Coca-Cola Company's
bottlers.
Mirinda is a brand oI soIt drink. Mirinda is
owned by PepsiCo.
Sprite Ice was the Iirst Ilavor extension Ior
The Coca-Cola Company's Sprite brand
soIt drink.
Pepsi Blue is a soIt drink made by PepsiCo
and launched in mid-2002.
Coca-Cola Blak is a coIIee-Ilavoured soIt
drink introduced by Coca-Cola in 2006.
Pepsi Cappuccino is a cappuccino-Ilavored
carbonated soIt drink produced by Pepsico.
12
Coke Vs Pepsi 13
Maaza is a Coca-Cola Iruit drink brand
marketed in India and Bangladesh.
Slice is a line oI Iruit-Ilavored soIt drinks
manuIactured by PepsiCo and introduced in
1984.
Limca is a lemon and lime Ilavoured
carbonated soIt drink made in India by
Coca-cola.
Teem was a lemon-lime-Ilavored soIt drink
produced by The Pepsi-Cola Company.
PRICE
In economics and business, the price is the assigned numerical monetary value oI a good,
service or asset. Price is also central to marketing where it is one oI the Iour variables in
the marketing mix that business people use to develop a marketing plan.
Pricing is a main part oI the marketing mix. Choosing the right price and the right pricing
strategy is crucial to the marketing process.
The price oI the product is not which is Iixed. On the other hand the price oI the product
depends on many other Iactors. Some times the price oI the product has got nothing to do
with the actual product itselI. The price may be used to attract target customers.
The price oI the product is determined keeping many things in mind. These things
include Iactors like cost incurred on the product, target market, competitors, consumer
buying capacity etc.
Coke - Price
Coke was a company ruling the markets beIore Pepsi entered. Earlier the price oI coke
was cost based i.e. it was decided on the cost which was spent on making the product
plus the proIit and other expenses.
But aIter the emergence oI other companies especially the likes oI
Pepsi, Coca-cola started with a pricing strategy based on the basis
13
Coke Vs Pepsi 14
oI competition. Nowadays more expenses are spent on advertising my soIt-drink
companies rather than on manuIacturing.
Coke has brought in a revolution especially in Indian markets with the Rs. 5 pricing
strategy and it was very Iamous. It was the Iirst company to introduce the small bottle oI
Coke Ior just Re.5. This campaign was very successIul especially with the price
conscious Indian consumers.
Even today most prices oI Coke are decided on the basis oI the competition in the market.
Pepsi - Price
Pepsi again decides it price on the basis oI competition. The best think about the
company Pepsi is that it is very Ilexible and it can come down with the price very
quickly. The company is renowned to bring the price down even up to halI iI needed.
But this risk taking attitude also led to many 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 Iull-Iledged and growing company. It has
covered all its losses and is now growing at a rapid rate.
PLACE
Place is a term that has a variety oI meanings in a dictionary sense, but which is
principally used in a geographic sense as a noun to denote location, though in a sense oI a
location identiIied with that which is located there.
Place is one oI the 4 P's and is deIined as "the market place". It can mean a geographic
location, an industry, a group oI people (a segment) to whom a company wants to sell its
products or services, such as young proIessional women (like Ior selling cosmetics) or
middle-aged Iamily men ( like Ior selling Iamily cars).
Coke - Place
Coke is a multinational company and it has its market around the entire world. This can
be said just by the Iirst page on its site which asks people to select the place oI their
choice. The website looks something like this:
14
Coke Vs Pepsi 15
Pepsi - Place
Pepsi again has spread worldwide. Pepsi when entering a new market does not go in
alone but it looks Ior partners and mergers. Till now Pepsi has collaborated with
companies like Quaker Oats, Frito-lays, Lipton, Starbucks, etc.
Like Coke, Pepsi has spread all over the world. It is because oI this worldwide spread that
now it is coming up with Advertisements which can be broadcasted in the diIIerent
nations in the world. The recent example with would be the Pepsi advertisements having
David Beckham as it brand ambassador.
PROMOTION
Promotion is one oI the Iour aspects oI marketing. Promotion comprises Iour
subcategories:
Advertising
Personal selling
15
Coke Vs Pepsi 16
Sales promotion
Publicity and public relations
The speciIication oI these Iour variables creates a promotional mix or promotional plan.
A promotional mix speciIies how much attention to pay to each oI the Iour subcategories,
and how much money to budget Ior each. A promotional plan can have a wide range oI
objectives which may include sales increases, new product acceptance, creation oI brand
equity, positioning, competitive retaliations, or creation oI a corporate image.
Pepsi and coke are both Iamous Ior their promotions. The rivalry was Iirst started when
Pepsi started with its blind taste tests known as the Pepsi Challenge. The challenge is
designed to be a direct response to critics who allege that Coca-Cola and Pepsi-Cola are
identical drinks, with no meaningIul diIIerences. The challenge takes the Iorm oI a taste
test. At malls, shopping centers and other public locations, a Pepsi representative sets up
a table with two blank cups, one containing Pepsi and one with Coke. Shoppers are
encouraged to taste both colas, and then select which drink they preIer. Then the
representative reveals the two bottles so the taster can see whether they preIerred Coke or
Pepsi. II Pepsi is revealed, the shopper is given a small prize. The result is that Pepsi
tastes better than Coke, and thus consumers should purchase Pepsi.
In blind taste tests, more consumers preIer the taste oI Pepsi to that oI Coca-Cola.
Because Coke was the historical leader, more people expected that they'd preIer and
select Coke. Their surprise at picking Pepsi in the blind taste test (products were served in
unmarked cups) helped change their minds about which product they preIer. Capturing
this on Iilm, Pepsi turned this into a memorable TV campaign that lasted many years.
The ad-campaigns are put up on the television by both the companies. The Iollowing
statistic just tells oI much oI share oI ads on TV are captured by these players.
16
Coke Vs Pepsi 17
InIact in the next graph you can see how many programs are sponsored by cola
companies and the leader among them is Pepsi. Mainly Pepsi is the company sponsoring
most cricket telecasts happening in India and spends most oI its revenue in that Iield.
17
Coke Vs Pepsi 18
Nowadays both Coke and Pepsi are going in Ior Brand Ambassadors to promote their
product. These brand ambassadors are Iamous people who usually people idolize and
people can relate to them. The Iollowing pictures do not need any explanation as people
are Iamiliar with the celebrities and can thus quickly identiIy with the product.
A list oI Celebrities that are brand ambassadors Ior the cola companies are as Iollows.
These celebrities are not only asked to work in the advertisements but they also have to
use the product promoted by them and they should not use the companies rivals products.
18
Coke Vs Pepsi 19
19
Coke Vs Pepsi 20
4. SWOT ANALYSIS
SWOT stands Ior Strengths Weakness Opportunities Threats.
SWOT analysis is a technique used in general management as well as marketing
scenarios. SWOT consists oI examining the current activities oI an organization- its
Strengths and Weakness and then using this and external research data to set out the
Opportunities and Threats that exist.
SWOT Analysis For Coca-Cola
Strengths
Strong international branding
Diverse range oI products (eg: Diet Coke, Vanilla Coke, Cherry Coke, Coke Zero
etc)
Cooler Experience
Personnel Relations
Knowledge Regarding Adversary
Accomplished StaII & BeneIactor
Coca-Cola has been a circuitous allotment oI apple ability Ior a actual continued
time.
The product's angel is loaded with over-romanticizing, and this is an angel
abounding humans accept taken acutely to heart. The Coca-Cola angel is
displayed on T-shirts, hats, and collectible memorabilia.
This acutely apparent branding is one oI Coca-Cola's greatest strengths.
Additionally, Coca-Cola's bottling arrangement is one oI their greatest strengths.
Lower amount oI assembly
Demonstrably above annual
Presented a actual circuitous artiIact
Extensive advertising, acceptable promotions or business programs.
Weaknesses
Not aggressive product development and diversiIication
Finance Botheration (Partnership Desolation)
Vehicles Are Less
Minor Signage in the Breadth
Ample Number oI PCI Abandoned Stock.
Abandoned Appropriation
Added Melancholia appeal
Poor annual
Top prices
20
Coke Vs Pepsi 21
Coca-Cola has aIresh appear some "declines in assemblage case volumes in
Indonesia and Thailand due to bargain customer purchasing power."
Latin America, Southeast Asia, and Japan annual Ior about 35 oI Coke's
aggregate and none oI these markets are assuming to expectation.
Bubbler oI Coca-Cola circadian has an aIter eIIect on your physique aIterward
Iew years.
Opportunities
Coca-Cola could diversiIy and make their own brand oI Cocaine
Cast acceptance is the cogent agency aIIecting Coke's aggressive position.
Coca-Cola's cast name is accepted able-bodied throughout 94 oI the apple
today.
The primary aIIair over the accomplished Iew years has been to get this name cast
to be even bigger known. Packaging changes accept as well aIIlicted sales and
industry positioning, but in general, the accessible has tended not to be aIIlicted
by new products.
Coca-Cola's bottling arrangement as well allows the aggregation to yield
advantage oI absolute advance opportunities about the world. This action gives
Coke the beIalling to annual a ample geographic, assorted area.
Customers are Anode Irom Adversary Specially in Rural Breadth (service and
quality).
New Projects accept been Started (Industrial).
Minor Signage Work is done in Breadth by PCI.
PCI is Getting Absorption in Textile Sector.
Customer oI PCI are Disturbed (Because oI advantage and beneIactor interest. So
we can yield account in this area).
New technologies that access eIIiciencies
Niche markets that ample companies do not ambition to serve
This account isn't anywhere abreast complete
1hreats
Currently, the blackmail oI new applicable competitors in the carbonated
bendable alcohol industry is not actual substantial.
The blackmail oI substitutes, however, is a actual absolute threat. The bendable
alcohol industry is actual strong, but consumers are not necessarily aIIiliated to it.
Possible substitutes that continuously put burden on both Pepsi and Coke cover
tea, coIIee, juices, milk, and hot chocolate.
Customer aIIairs ability as well represents a key blackmail in the industry.
Furthermore, consumers can calmly about-Iace to added beverages with little
amount or consequence.
21
Coke Vs Pepsi 22
All the Oompa Loompas might escape Irom their cages and will not be able to
make the sweet, sweet coke that has our children hooked. Meaning that Coca-
Cola would lose out on A LOT oI money.
SWOT Analysis Of Pepsi
Strengths
Pepsi has a broader product line and outstanding reputation.
The merger oI Quaker Oats produced synergy across the board.
Witnessed revenues and increasing market share.
There is lack oI capital constraints (availability oI large Iree cash Ilow).
Great brands, strong distribution, innovative capabilities
Number one maker oI snacks, such as corn chips and potato chips
PepsiCo sells three products through the same distribution channel.
For example, combining the production capabilities oI Pepsi, Gatorade and
Tropicana is a big opportunity to reduce costs, improve eIIiciency and smooth out
the impact oI seasonal Iluctuations in demand Ior particular product.
Weaknesses
Pepsi hard to inspire vision and direction Ior large global company.
Not all PepsiCo products bear the company name
PepsiCo is Iar away Irom leader Coca-cola in the international market - demand is
highly elastic.
Opportunities
Food division should expand internationally
Noncarbonated drinks are the Iastest-growing part oI the industry
There are increasing trend toward healthy Ioods
Focus on most important customer trend - "Convenience"
1hreats
F&B industry is mature
Pepsi is blamed Ior pesticide residues in their products in one oI their most
promising emerging market
Size oI company will demand a varied marketing program and will have social,
cultural, economic, political and governmental constrains.
22
Coke Vs Pepsi 23
BIBLIOGRAPHY
www.coca-cola.com
www.pepsico.com
www.marketing.about.com
www.quickmba.com
23