Research Paper on Pepsi vs Coke

Topics: Pepsi, PepsiCo, Cola Pages: 6 (1544 words) Published: April 5, 2012
In today’s era there is lots of competition in market because of which a clear differentiation is required to place your product in the market. Here marketing communication comes in a picture which enables the marketer to promote their product in a much better way. Marketing communications is nothing but the science and art of communicating information that the company wants to tell to the public. The information could be related to the marketing of a product, talk about a new product launch or community initiatives taken by the company. The whole exercise is called a science and an art because though there are set rules and patterns to the manner in which communication should be drafted, the ability to communicate effectively is an art that only some can master. Even as just communicating may seem an easy task since that is what we do every day in our normal lives, there is a science behind what to communicate to whom and in what tone and manner. The process becomes more complex when the market to which one is communicating is an evolved market. let us take the example of the promotional emails that we receive almost every day. Any person who has some technology background will tell you that the communication is filled with embedded action scripts, flash, cookies and a lot of technological techniques to decipher your movement through the Internet. These are the best practices that are being used in marketing communications today. Now, let us talk about the products of PepsiCo:

The major brand categories owned by PepsiCo, Inc. include Pepsi, Frito-Lay, Gatorade, Quaker Oats and Tropicana. Each of these has numerous other product offerings in their respective categories, both U.S. and internationally 1.Pepsi

2.Diet Pepsi
3.Caffeine-Free Pepsi
4.Caffeine-Free Diet Pepsi
5.Pepsi Wild Cherry
6.Diet Pepsi Wild Cherry
7.Diet Pepsi Vanilla
8.Pepsi ONE

According to kabir c. sen (june,1997) Unlike most previous studies on the subject, this paper confines its investigation of advertising intensity to only one sector during a selected span of years. While the OLS results reveal important findings for the CSD sector, there are interesting implications for other sectors and time period as well. A convenient classification scheme to analyse the various influences on advertising intensity is based on demand and supply factors.

According to Chad Rubel Barq's Root Beer and Sprite already have launched campaigns aiming at a younger audience. Mug, owned by PepsiCo, Soniers, N.Y., is tiying to capitaHze on the success of Barq's campaigns, including the "Sovdet Union Going out of Business Sale" and the "Stink'n'Stare Magic Rye Game. Fraleigh said Mug is the top root beer in New York v.ith a 28% market share.Pepsi increased its ad budget for Mug from less than $1 million to $10 million. Coca-Cola has announced it will increase spendingfor Barq's from about $1 million to $5 million to $10 million.

According to Yuqing Zheng (2002), Henry Kinnucan(2003) and Harry Kaiser(2007) advertising can cause demand curves to rotate, and rotation effects have important implications for advertising budgeting decisions and program evaluation. Testing for curve rotation using five alternative demand specifications, study results suggest inferences about curve rotation are sensitive to functional form. Specifically, price-advertising Interaction terms were found to be insignificant in two of the five models tested, one of which is the popular Rotterdam model (Selvanthanan, 1989; Duffy, 1990, 2001; Brown and Lee, 1993; Brester and Schroeder, 1995; Nelson and Moran, 1995; Kinnucan et al., 1997, 2001). Fortunately for the hypothesis under investigation, the Rotterdam model’s major rival – the (linear approximate).

According to kent Philips (1979) Thirty-five years in the consumer food products industry, including about 30 of those in what is now called LRB. there is no local...
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