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Pepsi entered into the Indian beverage market in July 1986 as a joint venture with two local partners,

Voltas and Punjab Agro, forming Pepsi Foods Ltd. Coca-Cola followed suit in 1990 with a joint venture with Britannia Industries India before creating a 100% owned company in 1993 and then ultimately aligning with Parle, the leader in the industry. As both companies would soon discover, competing in India requires special knowledge, skills, and local expertisewhat works here does not always work there. (Cateora & Graham, 2008, p. 604). In this article, I will analyze the primary obstacle to Pepsi and Coca-Colas success, discuss their strategies to cope with the issue, and ultimately propose my own suggestions to improvement.
Our Business Executive Overview We are a leading global food, snack and beverage company. Our brandswhich include Quaker Oats, Tropicana, Gatorade, Lays and Pepsiare household names that stand for quality throughout the world. As a global company, we also have strong regional brands such as Walkers, Gamesa and Sabritas. Either independently or through contract manufacturers, we make, market and sell a variety of convenient, enjoyable and wholesome foods and beverages in over 200 countries. Our portfolio includes oat, rice and grain-based foods, as well as carbonated and non-carbonated beverages. Our largest operations are in North America (United States and Canada), Mexico, Russia and the United Kingdom. Additional information concerning our divisions and geographic areas is presented in Note 1. We are united by our unique commitment to Performance with Purpose, which means delivering sustainable growth by investing in a healthier future for people and our planet. Our goal is to continue to build a balanced portfolio of enjoyable and wholesome foods and beverages, find innovative ways to reduce the use of energy, water and packaging and provide a great workplace for our associates. Additionally, we are committed to respecting, supporting and investing in the local communities where we operate by hiring local people, creating products designed for local tastes and partnering with local farmers, governments and community groups. We make this commitment because we are a responsible company and a healthier future for all people and our planet means a more successful future for PepsiCo. In recognition of our continuing sustainability efforts, we were again included on the Dow Jones Sustainability North America Index and the Dow Jones Sustainability World Index in September 2010. These indices are compiled annually. Our management monitors a variety of key indicators to evaluate our business results and financial conditions. These indicators include market share, volume, net revenue, operating profit, management operating cash flow, earnings per share and return on invested capital. Strategies to Drive Our Growth into the Future We remain focused on growing our business with the objectives of improving our financial results and increasing returns for our shareholders. We continue to focus on delivering strong financial performance in both the near term and the long term, while making global investments in key regions and targeted product categories to drive sustainable growth. We have identified six key challenges and related strategic business imperatives that we believe will enable us to drive growth into the future: Build and extend our macro snack portfolio Our first imperative is to build and extend our macro snack portfolio. Building and extending our profitable macro snack business is important to our future. PepsiCo is the largest player in the macro snack category, and we believe there is still room for growth. Our goal in the macro snack business is to grow our core salty snack brands that are loved and respected around the world,

while expanding into adjacent categories like crackers, bread bites and baked snacks. We will work to continue to grow our portfolio from Fun-for-You to Better-for-You productswhile adding many Good-for-You products that are designed to meet growing global demand for wholesome and convenient nutrition. We will also strive to create new flavors in tune with local tastes, which reflect local culture and traditions. We believe that by doing so, we will position ourselves to gain share, while continuing to grow the top and bottom line in our macro snack business. Sustainably and profitably grow our beverage business worldwide Our second imperative is to sustainably and profitably grow our beverage business worldwide. The U.S. liquid refreshment beverage category and challenging economic conditions facing consumers continue to place pressure on our beverage business worldwide. In the face of this pressure, we continue to take action to ensure sustainable profitable growth in our beverage business worldwide. In 2010, we revitalized both the Gatorade brand and the no-calorie carbonated category by promoting Pepsi Max. Our focus in 2011 will be on taking our North American beverage business and growing it sustainably for the future, while continuing to invest in emerging and developing marketsincluding the vital China and India markets. Unleash the power of the Power of One to provide better value for our customers Our third imperative is to unleash the power of the Power of One to provide better value for customers. We must maintain mutually beneficial relationships with our customers to effectively compete. We are a leader in two extraordinary consumer categories that have special relevance to our customers across the globe. Our snacks and beverages are both high-velocity categories; both generate retail traffic; both are profitable; and both deliver strong cash flow. Studies show that 85 percent of the time, when a person eats a snack, he or she also reaches for a beverage. To realize the value of Power of One in 2010, we successfully completed our bottling acquisitions, which enabled us to better service our customers. We also continued, with a critical mass of SAP implementations, to standardize processes, improve organizational alignment and benchmark performance. In 2011, we are re-focusing our efforts with a systematic approach to unlock the Power of One across the entire value chain. We believe the opportunities in the U.S., in particular, are vast. We will work to make Power of One changes at every level: from the way our products reach our customers; to how our products are displayed; to the channels through which our products are marketed and advertised. Build and expand our nutrition business Our fourth imperative is to build and expand our nutrition business and our global nutrition initiatives, to rapidly grow our Good-for-You portfolio of productsboth organically and through strategic tuck-in acquisitions. Consumer tastes and preferences are constantly changing and our success depends on our ability to respond to consumer trends, including responding to consumers desire for healthier choices. Our basic belief is that companies succeed when society succeeds, and what is good for the world should be good for business. This includes encouraging people to live healthier lives by offering a portfolio of both enjoyable and wholesome foods and beverages. With the acquisition of Wimm-Bill-Dann Foods OJSC (WBD), PepsiCos annual revenues from nutritious and functional foods are expected to rise from $10 billion to nearly $13 billion. We also are expanding our portfolio of products made with all-natural ingredients, increasing the amount of whole grains, fruits, vegetables, nuts, seeds and low-fat dairy in certain of our products and taking steps to reduce the average amount of sodium, saturated fat and added sugar per serving in certain of our products. Cherish our PepsiCo associates Our fifth imperative is to cherish our PepsiCo associates. Our continued growth requires us to hire, retain and develop our leadership bench. We are fortunate to employ, worldwide, a truly remarkable set of associates. The market becomes more competitive every day and innovation is the key to success. It is people who hold that key and to be a good employer is one of the most important strategic decisions a company has to make. Achieve excellent performance Our sixth and final imperative is the sum total of the other five. Our continued success requires that we do everything we can to position ourselves to achieve excellent performance in each of the areas mentioned above. By focusing on the five key challenges

and related strategic business imperatives discussed above, we believe we can achieve this goal


History and origin of coke Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than reveal its formula to the government and reduce its equity stake as required under the Foreign Exchange Regulation Act (FERA) which governed the operations of foreign companies in India. After a 16-year absence, Coca-Cola returned to India in 1993, cementing its presence with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling network. By 2003, Coca-Cola India had won the prestigious Woodruf Cup from among 22 divisions of the Company based on three broad parameters of volume, profitability, and quality Sanjiv Gupta, President and CEO of Coca-Cola India, joined Coke in 1997 as Vice President, Marketing and was instrumental to the companys success in developing a brand relevant to the Indian consumer and in tapping Indias vast rural market potential. Following his marketing responsibilities, Gupta served as Head of Operations for Company-owned bottling operations and then as Deputy President. Seen as the driving force behind recent successful forays into packaged drinking water, powdered drinks, and ready-to-serve tea and coffee, Gupta and his marketing prowess were critical to the continued growth of the Company

History and origin of pepsi

Portfolio product line

every product is born, grows, matures and dies. So in the commercial market place products and services are created, launched and withdrawn in a process known as Product Life Cycle. To be able to market its product properly, a business must be aware of the product life cycle of its product. The standard product life cycle tends to have five phases: Development, Introduction, Growth, Maturity and Decline. Coca-Cola is currently in the maturity stage, which is evidenced primarily by the fact that they have a large, loyal group of stable customers. Furthermore, cost management, product differentiation and marketing have become more important as growth slows and market share becomes the key determinant of profitability. In foreign markets the product life cycle is in more of a growth trend Coke's advantage in this area is mainly due to its establishment strong branding and it is now able to use this area of stable profitability to subsidize the domestic Cola Wars.

Insert the picture of the product lifecycle

Product line of Pepsi co. India Foods: Cheetos Kurkure Lays Lehar Namkeen Quaker oats Uncle Chipps Aliva Beverage: Pepsi 7UP Aquafina Gatorade Mountain Dew Nimbooz Slice

Tropicana Tropicana twister Mirinda

Product line Coca Cola India Beverages: Coca cola Diet coke Thumps Up Sprite Fanta Limca Maaza Maaza Milky Delite Minute Maid Pulpy Orange Minute Maid Nimbu Fresh Kinley water Kinley Soda Nestea Scheweppes Georgia Gold

4ps of marketing

Due to the external nature of the political and legal environment of operating in India, much of the problems were out of Coca-Cola and Pepsis control. Even if the two were to have performed a more extensive environmental analysis, many of the problems would not have been forecasted. Government situations are dynamic and inconsistent where there is not a strong foundation of law. Thus, Pepsi and Coca-Cola focused on the following controllable aspects 1.

Price: Coca-Cola reduced prices nationwide by 15-25% to make them affordable and easy

to get access to. Pepsi introduced returnable glass bottles for customers to recoup costs. 2.

Product: Coca-Cola and Pepsi launched different product lines to appeal to the Indian

consumer tastes. They started with product lines that were already available, such as cola, fruit drinks, and carbonated water. Then, when the market was ready, they launched other lines, such as bottled water (Coke- Kinley and Pepsi-Aquafina) and clear lime sodas (Coke-Sprite, Pepsi-7 Up). 3.

Promotion: Both Coca-Cola and Pepsi adapted to the local market with promotions. They

promoted heavily during the Navrarti festival. Pepsi gave away a kilo of Basmati rice with every refill of a case of Pepsi. This is an effective strategy to blend the old (rice) with the new (Pepsi). Coca-Cola gave away vacations to Goa, a famous resort in India. Further, they teamed up with influential figures in Indian pop-culture to promote their products. Pepsi launched an ambitious marketing campaign sponsoring Cricket celebrities and athletes from the World Cup. Coca-Cola launched its Lifestyle Advertising Campaign as a method of building brand loyalty

among its target markets: India A (18-24 year old urban youth. Slogan: life ho toh aisi) and India B (rural youth. Slogan: thanda matlab coca cola). Most importantly, they tried to create a connection between local idioms and their products so that they would stick. The use of celebrities is a powerful marketing tool across cultures to promote products. 4.

Channels of distribution: Production plants and bottling centers were strategically

placed in large cities all around India. More were added as demand grew, along with new product lines. 5.

Research: both Pepsi and Coca-Cola researched emerging trends before implementing

them. Pepsi created smaller bottles to keep up with the trend of high frequency/ high volume consumption. Coca-Cola launched the minis in an effort for higher volume. Both met trends in demand with new product lines. (E.g. bottled water). Both Coca-Cola and Pepsi kept a close watch on the advertising campaign effectiveness, through research of likeability of the ad and intention to buy. This measure ensured that advertising dollars were being strategically allocated and not wasted.

People pepsi Spends a lot of money re-investing in staff and in developing relationships with bottling franchiders and distributors

Processes - Now concentrating on reconciling the processes through a BPT system

Physical Evidence - prominent placement on shelves within stores, increased profits

1 Promotional strat Of pepsi

It truly follows the 7P's Product - many products for different tastes Price - Affordable for the mass market Promotion - Much emphasis on ads in the US backed up by sponsorship, whilst in the UK tie ups with the cinema and sponsorships if the David Beckham football academy. PR starting to happen at government level on health initiatives Place - Sold in 175 countries throughout the world People - Spends a lot of money re-investing in staff and in developing relationships with bottling franchiders and distributors Processes - Now concentrating on reconciling the processes through a BPT system Physical Evidence - prominent placement on shelves within stores, increased profits

It also follows multiple marketing strategies, in fact all 4 from the Ansoff Matrix as different strategies are required for different customers. Aim 1 - To conduct an analysis of Pepsi to determine the approach taken to marketing strategy has been successful. The focus research, showed that brand awareness was strong and the target audience ascertained, all who took part felt that it was a successful company with strong and memorable campaigns. Aim 2 - To determine whether the strategy determined has been successful in the eyes of the public - successfully achieved, but with issues for discussion within recommendations. To conclude, the proposition that that there is a link between the success of the brand Pepsi and the marketing it employs does hold true.


In order to achieve this mission, Coca Cola create value for all the constraints it serve, including consumers, customers, bottlers, and communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs: 1. Consumer demand drives everything Coca Cola do. 2. Brand Coca Cola is the core business 3. Serve consumers a broad selection of the nonalcoholic ready-todrink beverages they want to drink through out the day. 4. Be the best marketers in the world. 5. Think and act locally. 6. Lead as a model corporate citizen. The main strategies discussed here are as follows: STRATEGIC PLANNING STRATEGIES OF QUALITY EXPANDING TARGET MARKET STRATEGIES OF GETTING GOALS I.E. "HIGH PROFITS" MARKETING STRATEGY PRICE STRATEGY PROMOTION STRATEGIES DISTRIBUTION CHANNELS FACILITATING THE PRODUCT BY INFRASTRUCTURE ADVERTISEMENT SALES PROMOTION ACTIVITIES The details are as follows: STRATEGIC PLANNING In last years, the company had a great success, as the strategy worked which resulted in making Coca Cola Company the world's leading company. Company accomplished the crust of it's strategy as Worldwide volume increased by 4 percent with strong international growth of 5 percent. Earnings per share grew by 82 percent. Return on common equity grew from 23 percent to 38 percent this year. Return on capital increased from 16 percent in 2000 to 27 percent. The company has generated free cash flow of $3.1 billion, up from $2.8 billion The marketing strategy for the future is as follows: Accelerate carbonated soft-drink growth, led by Coca-Cola. Selectively broaden the family of beverage brands to drive profitable growth. Grow system profitability and capability together with our bottling partners. Serve customers with creativity and consistency to generate growth across all channels. Direct investments to highest potential areas across markets. Drive efficiency and cost-effectiveness everywhere. STRATEGIES OF QUALITY After Micro and macro analysis Brand "coke" is primarily role 1. Enhance competition moments 2. When people watch cricket 3. Through commercialization 4. Fun time EXPANDING TARGET MARKET In last 2 years Coke has come back in aggressive manner. Consumer has choice Attractive brand name Brand differentiating Consumer Has Got Choice: Now the consumer has got choice. Because now they know the name of another big brand, though coke is the 2nd best name but it can get a better position after some time Attractive Brand Name: Now the consumers know the Name of Coke, because Coke is the name, which is the most popular after the word "ok". So people can better differentiate brands with each other. Brand Differentiation: Now different companies have got different brand names. So, people can distinguish between brands. Two major brands "coke" and "Pepsi" also have brand names. STRATEGIES OF GETTING GOALS i.e. "HIGH PROFITS" To increase the price is the least thing, which Coke can adopt. There are so many ways through which Coke can increase the profits. Some major ways are as follows. Volume can be increased Interest level of consumers To take part in energetic festivals MARKETING STRATEGY

What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Pakistan buying bottled water after a run together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do business. PRICE STRATEGY Trade Promotion: Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market following "Seen as sold" Different Price in Different Seasons: Some times Coca Cola Company change their product prices according to the season. Summer is supposed to be a good season for beverage industry in Pakistan. So in winter they reduce their prices to maintain their sales and profit. PROMOTION STRATEGIES Getting shelves: They gets or purchase shelves in big departmental stores and display their products in that shelves in attractive style. Eye Catching Position Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores. Sale Promotion Company also do sponsorships with different college and school's cafes and sponsors their sports events and other extra curriculum activities for getting market share. DISTRIBUTION CHANNELS Coca Cola Company makes two types of selling Direct selling Indirect selling Direct Selling In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin. Indirect Selling They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products. FACILITATING THE PRODUCT BY INFRASTRUCTURE For providing their product in good manner company has provided infrastructure these includes: Vizi cooler Freezers Display racks Free empty bottles and shells for bottles ADVERTISEMENT Coca Cola Company use different mediums Print media Pos material TV commercial Billboards and holdings HOW COKE DETERMINE THE YEARLY BUDGET Coke determines its yearly budget by the Sales volume Profitability Target volume Sales Volume: Coke determines its yearly budget through the sales volume. They first concentrate on the thing is "what is the condition of their sales?" if the condition is good of their sales then they definitely increase their production and sales volume. Profitability: The second thing through which they determines budget is the "profit" .if they r getting profits with the high margin, then they definitely want to increase their profits in the next coming year. To get profit is the first priority of the Coke. Target Volume: To run the business every industry increases volume in specific time period. If industry achieves those goals in that period then for the coming year it increases the volume of the target. Coke did the same. SALES PROMOTION ACTIVITIES Coca-Cola Cricket Coca-Cola Concerts Coca-Cola Food Mela Coca-Cola Basant Festival Coca-Cola GO-RED Coca-Cola Party in a Park Coca-Cola Shopping Festival Coca-Cola Pet Promotion Coca-Cola Ramzan Campaign Coca-Cola Wonder of the World Promotion Coca Cola TV Mazza Coca-Cola & Mc Donald's Fanta & Sprite Launched Diet Coke

Product differentiation betwn coke n pepsi-

Coke vs. Pepsi

The Dilemma: Youre at a restaurant. Youve specifically asked for a Coke when you get handed a Pepsi, or vice versa. You tell the waiter what you requested, and he gives you the Whats the difference? shrug. Perhaps its time you laid it on him. People You Can Impress: Impressed probably doesnt accurately reflect the aforementioned waiters likely response. The Quick Trick: If you drink them side by side, Pepsi is the sweeter of the two (which is why people tend to prefer Pepsi in the Pepsi Challenge). The Explanation: Although the fantastic ad campaigns run by both companies would have you think otherwise, the soft drinks similarities are pretty striking. For starters, Pepsi and Coke were both the brainchildren of Southern pharmacists. Coca-Cola was invented by Atlantan Dr. John Pemberton in 1886. And yes, there was originally a concentration of cocaine in the soda, but it was reduced to a tiny amount (1/400th of a grain per ounce) by 1902 and removed altogether by 1930. Th e Coca-Cola Company changed hands a few times, and after Prohibition Coca-Cola was sold to the Woodruff family for $25 million. Pepsi, on the other hand, was born a few years after Coke. In 1893, pharmacist Caleb Bradham began experimenting withvarious drink mixtures in New Bern, N.C. His 1898 concoction, then known by the creative name Brads Drink, became an overnight success, and Doc Bradham began selling his Exhilarating, Invigorating, Digestion Aiding syrup by the gallon (7,968 of them for soda fountains in his first year). In the 1940s, Pepsi, as the drink came to be known, adopted a red, white, and blue logo to support Americas war effort (or to profit from a hollow, contrived gesture of patriotismif youre a Coke drinker). While both drinks contain vanilla, rare oils, carbonated water, kola nut extracts, and the widely beloved high-fructose corn syrup, Coca-Cola maintains a secret ingredient: the mysterious 7X. The formula for the soft drink (including 7X) is kept in a bank vault in Atlanta, and employees who know the secret formula sign nondisclosure agreements before they get to peek at the recipe. In fact, the secret of 7X is so well kept that Coke was for a time forced to abandon the market in India after a law there required that all trade-secret information be disclosed to the government. The law was changed in 1991, and ever since, Coke and Pepsi have been vying for the lions share of the Indian market. Soda Myths 1. Neither Coke nor Pepsi will kill you if combined with Pop Rocks. 2. A tooth left in a glass of cola will not dissolve overnight. Nor will a penny, for that matter. And while anything with sugar and acidorange juice, for instancewill eventually dissolve teeth, it takes quite a while.

Coke vs Pepsi Coke and Pepsi are carbonated soft drinks, which we commonly drink almost daily. Both are the popular black soft drinks, having almost same ingredients. People differentiate them by their packaging and taste, however, both provide same count of calories. Coke Coca Cola is a carbonated soft drink, which is popular around the world and commonly called as Coke. John Pemberton manufactured Coke as a cocaine containing medicine in 1886. Later in 1930, cocaine content was completely removed. Coke contains carbonated water, sugar, phosphoric acid, natural flavorings and caffeine. Kola nuts are source of caffeine in coke, which contain around 3 percent caffeine, giving a bitter flavor to this soft drink. A 355 ml cane of coke offers 140 calories. Caffeine free coke, vanilla coke, Coca- cola zero and sugar free coke are some versions of coca-cola, which are commonly used. Coke believed to have a secret ingredient, called as 7X, which is still a mystery. Pepsi Pepsi was originated as Brads drink in North Carolina, in 1893. Caleb Bradham was the manufacturer, who invented this drink in his pharmacy. His intentions were to create a digestive drink, which will boost energy level too. Its name Pepsi Cola, come from the enzyme pepsin, which is a digestive enzyme. Company changes its logo, almost every year, which reduces the use of drink for sometimes, as people hesitate to accept the new face of drink. Main ingredients of Pepsi are sugar, phosphoric acid, caramel color, caffeine, citric acid, corn syrup and natural flavors. A cane of Pepsi contains 150 calories. Pepsi is popular among the people as it contains more sugar content, than any other black soft drink, available in the market. Pepsi Cola, Mountain Dew, and Diet Pepsi are some of its popular brands. Differences and Similarities Pepsi and Coke are rivals in soft drinks market; both are black carbonated drinks, commonly served in restaurants and cafes. Both look same; you cannot differentiate them simply by looking at the glass. But their taste is different, as Pepsi is bit sweet in taste, when we compare it with coke, as it contains artificial sweeteners. Pepsi gives fruity taste where as Coke is more cola flavor. If we compare them based on carbonation levels, coke has higher fizzy effect. Coke is called as smooth drink, as that carbon escapes from the drink, quickly. Their ingredients are almost similar, cocaine was a content of coke in the beginning, but now it has removed. Pepsi has used more branding techniques than coke, as they keep on changing the style of their logo and slogans; however, coke has maintained same logo right from the beginning. A mystery ingredient called 7X is a secret in coke story, Pepsi has no secret ingredients. Pepsi is more liked by the people, due to its sweet taste, which make is pleasant to drink. Coke - less Sweet- fruity flavor- higher fizzy effect, smooth - ingredients almost similar but coke has a secret ingredient called 7X - same logo through out Pepsi - bit sweeter- Cola flavor- less fizzy effect compared to coke - ingredients almost similar - use more branding techniques, keep on changing the logo and slogans

Conclusion Pepsi and Coca cola are carbonated soft drinks, much popular than other soft drinks available in the market. Their caffeine content enable them to boost the energy level of user, some people drink them just for good taste.

Branding strat pepsi merger with frito lay and coke focused core competency with thumbs up
Promotional advertising is a pivotal part of a consumer good products go to market strategy. In recent years, digital media has acquired a larger share of those budgets. Pepsi and Coca-Colahave both stepped up their online efforts to include social media. The way in which each brand integrates social media efforts with promotional advertising and public relations say a lot about the personality of the company and its culture.

The Pepsi challenge

Of the two giant beverage brands, Pepsi is the one that seems to have had the greater identity transformation, although, seen side by side, they seem to have borrowed significantly from each other. Pepsis logo is perceived to have changed more dramatically over the years. Thanks tobrand new, you can see how the earlier chart that was making the rounds spoke to perception. Pepsis greatest challenge turns out to be the recent decision to divert promotional advertising budgets to a grant that each month funds ideas. Therefreshing everything project has predictably attracted much commentary in social media. The way it works is you can submit an idea that will have a positive impact, or vote for one. The blog associated with the project refreshes the news aspect and is created with the intent to personalize it and build community. The online community had mixed reviews about the project. From early cautions about the program being a gamble upon its announcement, to posts that praised the action and those that marveled at the program being seen as an alternative rather than an adjunct to their Super Bowl ad campaign. Consumer habits are changing, and social media has earned its place in the mix. Can it stand on its own without the help of promotional advertising? Is this new format shifting the responsibility from the corporation to the individual consumer? We do need tothink more strategically about our resources, and so do brands. Will the social media halo extend to sales? This is the most important question for a product company to ask itself. Has Pepsi won by avoiding the Super Bowl? It has been getting a lot of media coverage thanks to the PR value of its move. While fragmented branding is the 21st century reality, many are starting to raise the question of whether these philanthropic gestures are artificial sweeteners. Corporate social philanthropy needs to be authentic to the core of the company, and contest fatigue is starting to set it. Did Pepsi miss an opportunity to drive more traffic to its initiative, or to drive more sales? As expected, given the lack of must see TV support in the guise of a Super Bowl ad, the initiative has also garnered the attention of mainstream media. The days when mass-market media was the sole vehicle to reach an audience may be officially over. How could we start reconciling again the purely entertainment value of some forms of promotion, with the potential of sustainable programs grounded in social?

Coke changes formula

No reason to panic. The only one change they made to their formula is potentially one of perception from medicinal beverage to recreational drink. While rumors that the company used to put real coke in it seem to be still holding true, the quantity were talking about seems to be still quite small to make a big fuss over it 125 years later. In the promotions department, cokes Super Bowl spot contained charitable elements and was tied to a social media campaign that pledged $500,000 to the Boys & Girls Club of America. The companys biggest buzz so far, in addition to its popular Facebook page, is its new social media policy. Keep in mind that this is for 1 million associates in 206 countries. Its a feat of simplicity. Coca Colas new online social media principles define three hierarchical levels of responsibility for its workforce: designated subject matter experts; social media certified spokespersons; and everyone else. Those not certified as spokespersons may not speak on behalf of the company. Certified spokespeople may speak in the companys name but must refer difficult situations to subject matter experts. The principles apply to all employees but only appear to provide complete guidance to non-certified employees.

Coca-cola integrates many social media outposts and searches on its site. The most remarkable aspect of what the company is doing though is not on the communication end of things it is on the product redesign side. I was at CocaCola headquarters in Atlanta last fall and had the opportunity to meet David Butler, the man who is redesigning Coke. If branding is fragmented in this new reality, companies can and must create a central apparatus that is once specific and flexible, one that can apply all over the world keeping its focus on customers. Butler did just that at Coke by helping the company understand design on purpose to create value for the business through design and drive sales. Before it can communicate to the world, a brand needs to be aligned internally, work as a system, think about longevity, and cut through the visual clutter with identities that express its core essence. Coke is focusing more on how the product is delivered, packaged and experienced across the globe. Including how the companys associates talk about the brand in social networks. Has the company bought into theincomplete manifesto for growth? The company is also focusing more on the customer with its happiness theme. Neither Atlanta-based interactive agency Definition 6 nor Coca-Cola pushed the production with a publicity campaign. They let the brands considerable fan base find the video and share it on their own. I dont drink soda, yet this video gave me the goose bumps! 1.5MM people had the same experience and shared it with their friends.

Distribution networks

If the whole organization is a system, its distribution networks need to be part of that system. Coca-cola makes the introductions to more than 300 bottling partners on its Web site. Pepsi Bottling Group is one network. Distribution for brands today means a lot more. It means how the brand is passed on from mouth to mouth through stories, testimonials, humor, fun, like in the Coca-cola YouTube ad we watched a moment ago.

Market share
This is where the rubber meats the road. The market capitalizations of these companies at close of business on Friday February 26, 2010 was: The Coca Cola Company- $121.41BN Pepsico, Inc.- $97.77BN While Coca-Colas market share has been slipping, it still holds a significant advantage. In recent years, foreign sales have been lifting the company during recession.

Informal research in social networks

I posed the question on Twitter and FriendFeed on a late evening recently. I got several responses from people. Specifically, 9 unique responses on Twitter, 31 on FriendFeed, and 0 on Facebook. The number of votes is not proportional to the number of followers for those accounts. It maps more to how people engage in each network, which is a lesson that should not be lost on you. The question was simple Which one do you prefer? Why? I just used the image you see in this post as the visual, without even naming the products. Who won? 25 Coke, 4 either one, 5 neither, 6 Pepsi. Remember that it was a moment in extremely active streams with people doing and sharing all sorts of other things, including winter Olympics news. Just as if you dropped a question in any social space. You will push back that its not scientific and there isnt enough data to be statistically significant. That may be correct. Qualitative research is important, though, and in a Web 2.0 world there are fun ways to conduct informal, qualitative sampling. Not just by counting the numbers. What does the commentary add? Context. Remember that I did not skew the question in any way and that Pepsi just ran a massively talked-about social media campaign talked about in the same space where I asked the question. Pepsi launched and maintains a room with 615 subscribers on FirendFeed, which is where I got the most votes for Coke. Tone, preference, and commentary like Coke is less sweet, it has a richer taste, etc. were offered for Coke, with Diet Coke winning the greater share of commentary. To note that among those mentioning Pepsi, the new Pepsi has brought back real sugar in their Retro packaging was mentioned. Who won? Look at the market capitalization and the social integration for each brand. Then consider customer preference. The winning brand is the one that stays truer to itself.


Cols wars


SWOT stands for Strengths Weakness Opportunities Threats. SWOT analysis is a technique much used in many general management as well as marketing scenarios. SWOT consists of examining the current activities of the organisation- its Strengths and Weakness- and then using this and external research data to set out the Opportunities and Threats that exist. Strengths: Coca-Cola has been a complex part of world culture for a very long time. The product's image is loaded with over-romanticizing, and this is an image many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of Coca-Cola's greatest strengths. "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). Additionally, Coca-Cola's bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because Coke does not have outright ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers. Weaknesses: Weaknesses for any business need to be both minimised and monitored in order to effectively achieve productivity and efficiency in their business s activities,Coke is no exception. Although domestic business as well as many international markets are thriving (volumes in Latin America were up 12%), Coca-Cola has recently reported some "declines in unit case volumes in Indonesia and Thailand due to reduced consumer purchasing power." According to an article in Fortune magazine, "In Japan, unit case sales fell 3% in the second quarter [of 1998]...scary because while Japan generates around 5% of worldwide volume, it contributes three times as much to profits. Latin America, Southeast Asia, and Japan account for about 35% of Coke's volume and none of these markets are performing to expectation. Coca-Cola on the other side has effects on the teeth which is an issue for healthcare. It also has got sugar by which continuous drinking of Coca-Cola may

cause health problems. Being addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has an effect on your body after few years. Opportunities: Brand recognition is the significant factor affecting Coke's competitive position. Coca-Cola's brand name is known well throughout 94% of the world today. The primary concern over the past few years has been to get this name brand to be even better known. Packaging changes have also affected sales and industry positioning, but in general, the public has tended not to be affected by new products. CocaCola's bottling system also allows the company to take advantage of infinite growth opportunities around the world. This strategy gives Coke the opportunity to service a large geographic, diverse area.

Currently, the threat of new viable competitors in the carbonated soft drink industry is not very substantial. The threat of substitutes, however, is a very real threat. The soft drink industry is very strong, but consumers are not necessarily married to it. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot chocolate. Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-consciousness of the market could have a serious affect. Of course, both Coke and Pepsi have already diversified into these markets, allowing them to have further significant market shares and offset any losses incurred due to fluctuations in the market. Consumer buying power also represents a key threat in the industry. The rivalry between Pepsi and Coke has produce a very slow moving industry in which management must continuously respond to the changing attitudes and demands of their consumers or face losing market share to the competition. Furthermore, consumers can easily switch to other beverages with little cost or consequence.

Consumer Packaged Goods (CPGs) >> Pepsi SWOT Analysis:

Strengths [fast food] [*] Strong market position [*] Solid brand portfolio [*] Strong revenue growth [*] Economies of scale [*] Filtered Water instead of Spring Water makes the production,logistics, and profit margins a lot greater on their bottled water sales. Weaknesses [bottle water] [*] Concentrated in North America (US, Canada, Mexico), where almost 70% of revenues come from [*] Health Craze will hurt soft drink sales. [/list] Health Craze is not internal therefore cannot be listed as a weakness.


Low employer productivity Product recalls Lower operation margin oversees PLEASE ADD SOME MORE FOR US Threats [list] [*]Declining economy/recession [*] Sluggish growth of carbonated drinks [*] Coca-Cola & other smaller, more nimble operators [*] Commodity price increases, fluctuating oil prices effect production and distribution (gas, plastic) [*]Increasing health concerns over carbonated drinks

Opportunities Acquisitions & alliances Bottled water growth Hispanic growth in the US and Pepsi's ability to meet their tastes with current product lines (i.e., Sabritas chips) Growth in emerging markets

Mission and vision of pepsi

Our Mission
Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

Our Vision
"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today." Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

Performance with Purpose

At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society - delivering what we call Performance with Purpose. Our approach to superior financial performance is straightforward - drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability. Learn more about Performance with Purpose

Mission, Vision & Values of coke

The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Roadmap" for winning together with our bottling partners. Our Mission Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

Our Vision Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

Our Winning Culture Our Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020 Vision a reality. Live Our Values Our values serve as a compass for our actions and describe how we behave in the world.

Leadership: The courage to shape a better future

Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well

Focus on the Market

Focus on needs of our consumers, customers and franchise partners Get out into the market and listen, observe and learn Possess a world view Focus on execution in the marketplace every day Be insatiably curious

Work Smart

Act with urgency Remain responsive to change Have the courage to change course when needed Remain constructively discontent Work efficiently

Act Like Owners

Be accountable for our actions and inactions Steward system assets and focus on building value Reward our people for taking risks and finding better ways to solve problems Learn from our outcomes -- what worked and what didnt

Be the Brand

Inspire creativity, passion, optimism and fun

Current market share sales figure wit coke n pepsi pie chart

Our recommendation Despite many of the failures both Pepsi and Coca-Cola experienced due to the unforeseen external environment, the following methods could have been implemented to improve success in the Indian market. To begin, both companies should have focused more on education of its products - they need to penetrate harder. In 2003, Indias annual consumption rate was still a meager seven per person. Specifically, Pepsi spent very small amounts on its 7UP marketing campaigns in India due to its relatively

low market size (4.5%). Advertising rupees should be pumped more freely and strategically if they want to see a return on investment. Second, target markets should be defined more specifically. Coca-Cola separates its markets as India A and India B as defined above. This is too broad and lacks focus. We can differentiate demographics by gender, race, age, language, interests, job, location, etc Third, Coca-Cola entered the market at a poor time because they had to agree to abide by all of the Foreign Investment Laws of that year. To avoid having to sell its 49% stake though, Coca-Cola should have agreed to set up greenfield bottling units instead, as Pepsi did. Further, Coca-Cola lost valuable market share by entering the beverage market after Pepsi. By the time Coca-Cola was fully owned in 1993, Pepsi had already cumulative of 26% market share. Next, Coca Cola made a mistake in trying to get out of its promises.Coca-Cola already made the mistake by entering into the contract . By continuing to apply for extensions and attempting to deny voting rights for the Indian stake, Coca-Cola was only tarnishing its public image and destroying its relationship with the government. When entering into a foreign market, maintaining a good relationship with the host countrys government is crucial. Finally, both Coca-Cola and Pepsi should have been proactive regarding oversight (e.g. environmental responsibility). Coca-Cola created the advisory board to regain the publics credibility only after its reputation was already tarnished with the allegations of pesticide residue.. This could have been prevented with measures in place. Both companies should have been ready for a health scare after 1988 when it was discovered that BVO, an essential ingredient in locally produced soft drinks, was carcinogenic. In conclusion, the case involving Pepsi and Coca-Colas entry into the Indian market provides key lessons for future managers looking to invest overseas. While many events are external and thus out of the managers controls, there are many active approaches we can take to help ensure success in the foreign market. For example, we need to research the market and trends ahead of time. And we should be fully aware of the history, geography, political, and legal considerations. Only then can we succeed in our quest to glocalize(i.e. adapt our strategy to the local culture).

Bibliography Cateora, Philip R., and John Graham. International Marketing. 13th ed. New York: McGraw-Hill , Higher Education, 2008. Rothermund, Dietmar. An Economic History of India: From Pre-Colonial Times to 1991. 2nd ed. New York: Routledge, 1993.