Coke vs Pepsi

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Topics: Pepsi, Cola
Coke vs. Pepsi
Karmen Burrell
AIU Online
MKTG205-1004B-08
Unit 1 IP
October 7, 2010

In assignment one we are asked to choose two competitive products to analyze how they address the 4 P’s of marketing. First, we must understand what the 4 P’s of marketing refers to. They are pricing, product, promotion, and placement of product. We are asked to describe the products, their industry, their market shares, and their fluctuation in sales. Now that we understand what the 4 P’s of marketing mean, we need to choose our two products. I have chosen to use Coke and Pepsi. These are both products of the beverage industry, more specifically of the carbonated beverage industry. Coke has generally been the leader of this industry with Pepsi right behind it (see fig. 1). (Yoffie, 2010). Up until the mid 1990’s, both products seen substantial growth but when the consumers began a trend of being more health conscientious the growth of the two products slowed and actually started to decline. This trend is still apparent; as both companies have, lost sales over the past two years (see fig.1). (Yoffie, 2010).
Fig. 1 | 2009Rank Brands | 2009MarketShare | 2008Market Share | Share Change | 2009 Cases(millions) | Volume %Change | 1 | Coke | 17.0 | 17.3 | -0.3 | 1598.0 | -4.0% | 2 | Pepsi | 9.9 | 10.3 | -0.4 | 936.4 | -5.5% |

It is apparent that certain seasons such as football season and holidays these products do better than in other times that have no crowd gathering events. The next table is going to give a brief overview of the products and their comparison in reference to the 4 P’s of marketing.

| Product 1- Coca-Cola | Product 2 – Pepsi- Cola | Description of Product | Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the best-known product in the world | Pepsi-Cola is a soft drink very similar to its rival Coca-Cola. It is ranked number 2 in the top ten for its industry | Place (Distribution) | Soda



References: Living Positively: Our commitment to making a positive difference in the world. (2010). Retrieved October 10, 2010, from http://www.thecoca-colacompany.com/citizenship/pdf/2008 2009_sustainability_review.pdf Nooyi, I. K. (2010). Performance with Purpose: Investing in Sustainable Growth. Retrieved October 10, 2010, from http://www.pepsico.com/Download/PepsiCo_2009_Sustainability_Report_Overview.pdf Yoffie, D.B.(2002). Cola Wars Continue: Coke and Pepsi in the Twenty-First Century. In Harvard Business School. Retrieved October 7, 2010 from SlideShare (9-702-442)

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