Coke vs Pepsi

Topics: Coca-Cola, PepsiCo, Pepsi Pages: 6 (1579 words) Published: July 23, 2011
Marketing Strategy Analysis of Coca-Cola and Pepsi Cola
Two famous beverage companies exist in the market today, Coca-Cola and Pepsi Cola. Each competes intensely to distribute their beverage and food products to a global market for higher profits for the last several generations. In the free market, it can be difficult to determine which company uses the best practices in their marketing strategy as both use similar strategies to expand their local and global markets. In this paper the subjects to describe are the products, prices variations, target demographics, promotion mix, sales, relationship building strategies, unfair predatory marketing, technology, and marketing campaign successes and failures for Coca-Cola and Pepsi Cola. Product

Both Coca-Cola and Pepsi Cola offer a variety of drinks and brands. Pepsi offers brands such as Starbucks, Sobe, Ocean Spray, Aquafina, and Lipton, to name a few. Coca-Cola has a list from A to Z on their website including well-known brands such as A & W, Dasani, Dannon, Minute Maid, Nestea, and PowerAde. Each company primarily sells the basic products listed below. Coca-Cola

• Energy drinks
• Juice and juice drinks
• Soft drinks
• Sports drinks
• Tea
• Coffee
• Water
(Coca-Cola Company, 2011).
• Waters
• Soft drinks
• Energy drinks
• Ready to drink teas
• Juice and juice drinks
• Dairy-based drinks
• Ready to drink coffees
• Sports drinks
(PepsiCo, 2011, p. 1).
Price Variation
No substantial price variation occurs between Coca-Cola and Pepsi Products. The difference is derived from the volume of sales and what demographics prefer Coke over Pepsi products. One can enter any grocery store and find Coca-Cola products on sale one week, and the next week Pepsi products on sale. One could essential visit one supermarket and discover Coke on sale and walk into a different supermarket and find Pepsi on sale on the same day. The original cost and sales cost run generally the same. Target Demographics

Both companies market products around the world in several countries. Both companies target the entire market and not any particular area of demographics. The goal is to generate high levels of revenue from many demographical areas. This includes geographical regions, age, and gender, in the United States as well as other countries such as Italy, Russia, Asia, Croatia, England, Canada, Europe, and Africa. Coke outsells Pepsi with a market in 200 countries (Coca-Cola Company, 2011). Pepsi markets to Europe, Asia, the Middle East and Africa (PepsiCo, 2011, p. 1). . Promotion Mix

Coca-Cola and Pepsi both use the same promotional mix that includes product, price, place, and promotion. Each company focuses on building relationships with everyone that comes into contact with their products. Because of this they can promote products with cross-cultural and diverse groups of people. This includes everyone in the nation expanding too many countries. Coca-Cola

With upwards of 2800 products ranging from carbonated soda, food snacks, and water, coke has placed its products all over the world. Coke uses its websites and slogans as a major promotional mix with slogans such as ‘satisfying your needs’ and ‘the choice is yours’ (Gabriel, 2009, p. 1), insinuating to the consumer that Coca-Cola is concerned with the needs and choices of its consumer. Coke takes advantage of many promotional avenues available to them. Radio, store ads, Internet, billboards, television, global, and local events, and celebrity endorsements. Coca-Cola uses sports and entertainment events to promote their products. Recently while attending a movie at the local movie theater, a Coca-Cola ad appeared on screen partnering with the theaters popcorn. It made one desire a bag of popcorn and a coke. Pepsi

Pepsi and Coca-Cola follow the same promotional mix. Pepsi uses all the aforementioned...

References: Coca-Cola. (2011). Live positively: Our commitment to making a positive difference in the world (Sustainability). Retrieved from The Coca-Cola Company:
CSPI News Release. (1998). Soft drinks undermining Americans’ health: Teens consuming twice as much liquid candy’ as milk. Retrieved June 24, 2011, from
Customer U (2009). Lessons learned and how it relates to your business. Retrieved June 22, 2011, from
Gabriel, P. (2009, February 18). Branding: Slogan wars between coke and pepsi [Web log message]. Retrieved from
Pearson Education System. (n.d). Battle of the beverages. Retrieved from
PepsiCo. (n.d). Performance with purpose: Pepsico foundation. Retrieved from
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