Pepsi vs Coke

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SYMBIOSIS INSTITUTE

OF

MANAGEMENT STUDIES

(SIMS)

(For Defense Personnel & Their Dependents)

{Constituent of Symbiosis International University (SIU)}

Strategic Marketing

Assignment II

PepsiCo Vs Coca Cola India’s Perspective

Prepared By:

Ajay Shivpuje (20)

Control of market share and dominating volumes are key issue of this article. Just how is this done in such a competitive market is the underlying issue. Which are the strategies those helped these major players to become successful in India.

Both these major giants entered India around 1992.Both giants entered with new entity name as Hindustan Coca Cola and PepsiCo as Aradhana Beverages .

Diminishing strategy adopted by both player is to diminish threats from substitute products and services . This has two major benefits that helps in managing complexity and responsiveness from local players .It also offer powerful source of competitive advantage as diminishing local players keeps future interest assured from any major threats.

As a result Hindustan Coca Cola acquired Thums up, Mazaa, Gold Spot where as PepsiCo grabbed Dukes Portfolio which has Dukes Mangola, Soda and other beverages.

Marketing Strategy

PepsiCo had advantage being first player which achieved from Joint venture between Punjab Agro Industrial Corporation and Voltas India Limited in 1988 .It had been sold as Leher Pepsi till 1991 .This has given advantage of Pepsi in understanding Indian Market this been seen in Marketing strategy differentiation.

Where as Coca Cola Marketing Strategy focused on American way of life which make brand as part of day to day needs where as PepsiCo adopted youth drink approach which accepted by consumers easily. By 2001 both companies adopted complete new Strategy to create differentiation . PepsiCo focused on Cricket and Bollywood stars to woo consumers whereas Coke kept it as drink for happy moments with rural consumer focus .

The foundation of the new strategy grounded brand positioning and marketing communications in consumer insights, acknowledging that urban versus rural India were two distinct markets on a variety of important dimensions. The soft drink category’s role in people’s lives, the degree of differentiation between consumer segments and their reasons for entering the category, and the degree to which brands in the category projected different perceptions to consumers were among the many important differences between how urban and rural consumers approached the market for refreshment.

For local advertising companies adopt different strategies. PepsiCo focus upon On Drive visibility which facilitates light boards and neon sign where as Coca Cola focus in shop promotions through Menu Cards, Danglers or so. Also PepsiCo focuses on food chain tie ups , Coca cola focuses on Specific restaurant those have high volumes.

PepsiCo focuses on yearly tie ups those allow single payment where as Coke pays monthly discounts depends on monthly volumes and turnover.

Product Strategy

Post 2004 both companies focused on Differentiation strategy for portfolio of products to cater Segments . PepsiCo adopted new product launch and acquiring Snacks business whereas Coca Cola focused core brand with niche market segmentation.

PepsiCo acquired Quiker, Lays,Gatorade and Tropicana to cater all healthy need of educated consumer which accepted well and reflected in results shows improved financial results as compare to Coca Cola . Following chart over years how PepsiCo performed better than Coca Cola in terms of Revenues.

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Following Table shows number of products distributed by Both Companies in India :

|PepsiCo India |Coca-Cola | |Beverages |Beverages...
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