Marketing Mix of Coca-Cola and Pepsi
One of the fiercest battles between brands through the years is the battle between Coke and Pepsi. How effectively these brands market their products determine their market share. We learned in our lesson that a brands marketing strategy is comprised several components called a marketing mix. The marketing mix is composed of four areas; product, price, placement and promotion. Through many years of success and failure these brands are ripe with illustrations of marketing successes and failures. It is my desire to draw from these examples and describe each brands marketing mix. Let’s start with PepsiCo.
Product in the PepsiCo marketing mix
The marketing mix of PepsiCo (4P) is aimed at its wide range of products which have evolved over time. This is mostly due to acquisitions of companies with different products bringing them all together under the PepsiCo brand. Many of PepsiCo's current brands and products have been added to the product mix via acquisitions. For example, snack products were added after Pepsi-Cola acquired Frito-Lay in 1965 forming a new company PepsiCo (Our-History). Because it is a global company the differences between the markets also require changes to the marketing mix in each of its target markets.
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The places of distribution and sale are considered in this element of the marketing mix. Coke distributes its products through retail stores and wholesalers. Most Coke products are available from retailers, such as supermarkets, grocery stores and convenience stores. Coke also sells wholesale to regional bottlers, restaurants and convenience store chains that distribute their products at soda fountains or by the glass at restaurants. For a time most of the bottlers were company owned but the company is refranchising all of their bottling operations (Five Strategic
“Marketing Mix” is made up of 4P’s of marketing. This tool blends these variables together to produce the results it wants to achieve in its specific target market. “Brand Position” mentions to consumer’s reason to buy the products in preference to others.
Pepsi is one of the most well-known beverage brands in the world. The Pepsi Bottling Group is a part of the larger multi-billion-dollar company PepsiCo. PepsiCo currently is the largest food and beverage manufacturer in the United States and one of the world 's biggest companies. They offer a plethora of carbonated drinks, waters, coffee, teas, energy drinks, and sports drinks to consumers. Notably Pepsi is known for distributing; Pepsi-Cola, Mountain Dew, Sierra Mist, Lipton teas, Starbucks, Amp Energy drinks, Gatorade, and Aquafina. Britannica Encyclopedia published an article on Pepsi 's early history titled "PepsiCo, Inc.". Pepsi was introduced in 1893 by Pharmacist Caleb Bradham as "Brad 's Drink" then later renamed "Pepsi-Cola" in 1898 (PepsiCo Inc.). Bradham was looking to invent a beverage that would help in digestion along with increasing energy. In 1902, the Pepsi-Cola Company was launched at Bradham 's Pharmacy, where he distributed the product. During World War I the United States experienced financial hardship resulting in Bradham filing bankrupt and selling his trademark brand (PepsiCo Inc.). After the war and the Great Depression, Charles Guth purchased Pepsi’s assets and Pepsi-Cola continued to expand and capture the spirit of America. Pepsi has contributed countless marketing campaigns, which have turned into the brand being recognized everywhere. Campaigns such as the "Pepsi Challenge" and "Pepsi Live for Now" have been successful campaigns in the company
Coca Cola and Pepsi are the brands with the highest brand equities. Both, Coca Cola and Pepsi have gone through the highs and lows of their business to reach that position. Coca Cola’s marketing has been changing over time with more and more products being added every day, while Pepsi has implemented several smart marketing strategies to improve its turnover and profits. So, let’s see what were the marketing strategies implemented by Coca Cola and Pepsi.
Coca-Cola and PepsiCo compete at length with each other among an extensive list of other brands. A key concern for both of these companies in 2011 was their capability to market, produce, and distribute across national boundaries of a single nation. This concern has decreased as both companies were able to push though their limitations and were able to establish manufacturing plants in countries across the globe. (Coca Cola Company, 2011)
PepsiCo is the 3rd largest manufacturer of food and beverage products with a total just shy of 30 billion dollars in sales, while Coca Cola is the 5th largest manufacturer of food and beverage products with a total of 21.5 billion in sales. The products that both PepsiCo and Coke Cola concentrate their manufacturing efforts on are products that are easily consumed and/or prepared. Therefore, PepsiCo leads the sales in convenient food and beverage category, sustaining 22% of sales. Coca Cola also has a large percent of total sales in this category coming in under PepsiCo with 12%. One important thing to remember when evaluating PepsiCo and Coca Cola is that although PepsiCo may outperform Coca Cola in a number of key statistics, this is not the case when
The marketing mix is a combination of 4 P’s (product, price, place and promotion) that should be used in conjunction with each other to ensure a competitive edge over other companies. ‘The marketing mix is designed to produce mutually satisfying exchanges with a target market’.
Another procedure of PepsiCo is 'Beneficial for You ' that implies the organization gives nutritious items, for example, low-fat dairy, vegetables, entire grains, sugar, and soaked fat with dietary necessities, nuts and natural products.
PepsiCo’s corporate strategy had diversified, in 2008, the company into salty and sweet snacks, soft drinks, orange juice, bottled water, and ready-to-eat drink teas and coffees, purified and functional waters, isotonic beverages, hot and ready-to-eat breakfast cereals, grain-based products, and breakfast condiments. Strategies that kept their brands at the top were tied to new product innovation, close relationships with distribution allies, international expansion, and strategic acquisitions. A new element of PepsiCo’s corporate strategy was product reformulations to make snack
They have had the privilege of a worthy competitor constantly driving them to be smarter, faster, and better. A quote from Pepsi CEO "The more successful they are, the sharper we have to be. If the Coca-Cola Company didn't exist, we'd pray for someone to invent them." states it simply. The relationship between Coca-Cola & Pepsi is a healthy one that each corporation has learned to appreciate.
Coke is a beverage and is one of the most recognised brand in the world. Is has energy and flavour. It can be purchased everywhere. Its fresh and it shares happiness. People become very aware of coke when they are thirsty. It is a refreshing product. It also has a red can which stands out to consumers when they are purchasing a soft drink. Coke want consumers to be aware of the brand everywhere they go. Even if consumers don’t realise it coke adverts and products are everywhere. The font on the coke can also stands out to the consumer because it is in big writing and is in italics. If customers have a low involvement with the brand they might just purchase the brand based on salience.
The 'marketing mix' is a set of controllable, tactical marketing tools that work together to achieve company's objectives. The marketing mix analysis is also called 4P analysis. This analysis contains a set of controllable strategic tools of marketing which work in simultaneously to attain the objectives of an organization. In this paper we will analysis two organizations with respect to their marketing mix. The companies that I have chosen for this task are Pepsi Co and Coca Cola.
According to PepsiCo SWOT, “it is better equipped to satisfy the needs of customers with a wide variety of successful products” (2008). PepsiCo managed to present almost every type of drink and food brands. The merchandise that is earned is the majority of their revenue. This makes them extremely at risk to change any of their marketing products. However
1.) Why do companies like Pepsi need to globalize? What are the various ways in which foreign companies can enter a foreign market? What hurdles and problems did Pepsi Face when it tried to enter India during the 1980s?
Pepsi-Cola brand is a brand that has been established within the refreshment industry since the 19th century. Pepsi pride the business of consumer products in beverages and snacks, on being one of the best in the world. They seek
Marketing mix is one of the basic and the very important part of marketing plan. It includes all the elements that are important for an organization from manufacturing to sale of the product. It can be considered as the set of marketing tools that blends together to generate a marketing response in the market. Every organization uses this tool to make its marketing plan. Primarily it consists of 4P’s, but now it is extended to 7P’s of marketing. (Jain, 2013)