External Cap for Pepsi

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Marketing I | Phase I
I. Environmental Analysis
Competitive Forces
Our major competitor in Egypt is Coca Cola since many of our products are similar to almost the same packaging. Therefore, due to our similarity we target the same customers; which makes a 50/50 percent to gain or lose a customer by how successful our market mix can take over. Their strengths lie above all in their customer loyalty, then comes their popularity, branding, finance strength, and international trade. Its logo can be easily recognized due to several factors in the logo design. First, their logo has been constant ever since Coca Cola was founded, with slight modification of the font while colors remained the same. In addition, the Coca Cola choice of colors, along with the font, is another factor that makes it identifiable. Coca Cola con- stant brand identity remained its customer loyalty; which is what the Coca Cola popularity based on. Hence, the Pareto Principle, also called the rule of thumb or the 80/20 rule, applies to Coca Cola customer loyalty; which indicates that 80 percent of the sales come from 20 percent of the clients. Early Coca Cola customers have kept their loyalty and this is one way how Coca Cola has become popularized among their ascendants. Moreover, Coca Cola has survived massive ups and downs that gave strength to its current financial state. In addition, its international trade has increased its popularity worldwide. Major Competitors | Weaknesses Despite Coca Cola initial products’ popularity; it lacks the popularity of many other Coca Cola brands as it sells around 400 other different brands among other nations; however, only a small number of them is known and popularized. Theses brands are uncommon not because they have flaws, but due to the lack of advertising. Coca Cola lack advertising its products, depending mainly on their customer loyalty, disregard- ing that with the current obsessions about health conditions, diets, and organic drinks, this loyalty is prone to failure. While the most common brands that Coca Cola sells are Coke and Sprite, Coca Cola also owns Odwalla since 2001. Odwalla produces fresh-sourced fruits and vegetables for its products. In addition to, Odwalla also produces organic juices; which server the contemporary concerns about health issues. Instead of Coca Cola advertising for Odwalla under its name to gain it as strength to add to/back up other Coca Cola soda drinks, it is known that Coca Cola does not produce any organic products. In spite of Coca Cola popu- larity, it is barely found and less common in selling points. II] Future Competitors

While Coca Cola is our major competitors, Dr Pepper Snapple and Mondelez International come next, worldwide. However; in Egypt, PepsiCo competitor who follow Coca Cola is the energy drinks production, Red Bull. Red Bull Has achieved market leadership among other energy drinks in Egypt in a short period of time by publicizing and advertising on television, supermarkets, streets, concerts, and sponsorship. And despite its pricing, considered the highest among other energy drinks, it sustains the Red Bull customer loy- alty. Red Bull’s accomplishments indicate that within a short period it may become our future competitor in Egypt. III] Marketing Mix

Any development, or change, in any of PepsiCo four Ps is based on one another. Meaning; for example, in order to make any change in price, there has to be a cause, a change in the product; which requires innova- tive promotion where we target our customers. Hence, any change in our marketing mix is going to increase the competition between PepsiCo and Coca Cola. IV] Industry Structure Effect

Marketing I | Final Project | Phase I
I. Environmental Analysis
Economic Forces I] Economic Condition
The current economic condition of Egypt after the revolution holds diverse opinions in our customers’ perspectives. Our customers are implanted in most parts of the society, most of the Egyptian social lev- els....
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