Document Sample


             Pepsi Co

             The Coca-Cola Company

 Type:        Public
 Founded:     1892 by Asa Griggs
 Headquarters: Atlanta, Georgia,
 Industry:    Beverage
 Products:    Beverages

Origin of the product:-

Dr. John Stith Pemberton for the first time produced
the syrup for Coca-Cola on May 8, 1886
 The history of the Beverages industry started
  when Atlanta, Georgia druggist John Stith
  Pemberton invented coca wine called Pemberton's
  French Wine Coca in 1884.
 He was inspired by the formidable success of
  French Angelo Mariani's coca wine, Vin Mariani to
  compete with the many patent medicines and cure
  - all elixirs of that time. His company
  recommended it for the relief of hangovers
  headaches, menstrual pains, and a host of other
 One warm summer day Pemberton took some
  syrup down to will is venerable at Jacob's Drug
  Store in Atlanta.
 An ounce of the mixture was put into a glass,
  which was then filled with water and ice, creating
  the WORLD’S first Coca-Cola

Origin of the company:-

 The following year, when Atlanta and Fulton
  County passed Prohibition legislation, Pemberton
  began to develop a non-alcoholic version of the
  French Wine Coca.
 He named it Coca-Cola, because it included the
  stimulant coca leaves from South America and
  was flavoured using kola nuts, a source of
  caffeine. Pemberton ran the first advertisement for
  the beverage on May 29 that year in the Atlanta
 In 1887, while suffering from an ongoing addiction
  to morphine, Pemberton sold a stake in his
  company to Asa Griggs Candler, who incorporated
  it as the Coca Cola Corporation in 1888. In the
  same year, Pemberton sold the rights a second
  time to three more businessmen: J.C. Mayfield,
  A.O. Murphy, and E.H. Bloodworth.
 Meanwhile, Pemberton's alcoholic son Charley
  Pemberton began selling his own version of the
  product. Three versions of Coca-Cola — sold by
  three separate businesses — were on the market.
 When the United States entered World War II, The
  Coca-Cola Company began providing free drinks
  for soldiers of the United States Army. The United
  States Army permitted Coca-Cola employees to
  enter the front lines as "Technical Officers" where
  they operated Coke's system of providing
  refreshments for soldiers Coca-Cola set up bottling
  plants in several locations overseas to assure the
  drink's availability to soldiers, setting the stage for
  the company's post-war overseas expansion.
 The popularity of the drink exploded as American
  soldiers returned home from the war with a taste
  for the drink.
 Before the United States entered World War II, the
  difficulty of shipping Coca-Cola concentrate to
  Germany and its occupied states led to the
  creation of a new drink by a Coca-Cola employee,
 Fanta's origins date back to World War II when
  Max Keith, who managed Coca-Cola's operations in
  Germany during the war, ran out of the
  ingredients for Coke, which could be supplied only
  from the United States. Keith resorted to
  producing a different soft drink, Fanta, which
  proved to be a hit, and when Coke took over again
  after the war, it adopted the Fanta brand as well.
    The German Fanta Klare Zitrone ("Clear Lemon
  Fanta") variety became Sprite, another of the
  company's bestsellers

In the 1930s, Robert W. Woodruff became president
of the Coca-Cola Company, presiding over the drink
and its destiny till his death in 1985. Although he
eventually stepped down from his post due to stress,
he retained control over the company despite holding
positions with an ostensibly low profile.

The headquarters of Coca-Cola, now listed by fortune
as one of the 50 top corporations in the United
States, is still in Atlanta, Georgia. The actual sale
and distribution of that magic elixir - which, needless
to say, on longer contains cocaine - is handled
largely by a number of independent bottlers. These
bottlers buy syrup, mix it with carbonated water, and
distribute it to retailers in their area. The number of
retailers who sell Coke to the public almost exceeds
 Type:            Public
 Founded:         1903 by DOC
 Headquarters: New York, USA
 Industry:        Food &
 Products:        Beverages,

Origin of the product:-
 It starts with a small drug store in North Carolina.
    This little store belonged to young chemist by
    the name of DOC BROADHAM. He invented a
    drink that the customers called BROAD'S drink.
    In 1903, Bradham got its drink registered
    formally by the name of PEPSI COLA.

Origin of the company:-
He set his own company and kept its sales improving
gradually. By 1909, more then 250 bottlers in
different American states had been allowed to sell
under the PEPSI COLA license. PEPSI COLA was first
sold in the standard size of 6.5 ounces. In 1932
PEPSI COLA took courage enough to introduce a
bottle of 12 ounces. In 1950 the PEPSI COLA'S
formula had been changed by reducing its sweetness
and calories and a new advertising campaign Refresh
without filling had been launched effectively. Under
the supervision of the diligent sales staff and the
Marketing experts, PEPSI COLA began setting new
records of eminence. At 30 plants per year, new
plants were established all across the globe. A new
attractively designed bottle had been introduced in
1957 in place for the 20 years old bottle, and the
product line had been enhanced to introduce the new
flavors of TEAM & MIRINDA. PEPSI COLA today is
available to more than a billion people in 153
different countries which include the central
independent states and China.


As part of its global 10-year strategy for growth -
The Manifesto for Growth - The Coca-Cola Company
is committed to being a global citizen that makes a
For the Coca-Cola System in Great Britain, this
means putting corporate responsibility at the heart
of our business strategies.
In 2004, they introduced a new framework for
managing corporate responsibility called
'Citizenship@Coca-Cola'. As part of this they
developed a series of citizenship commitments and
principles which summarize their approach in four
key areas or 'platforms':

Marketplace Commitment
To provide products and services that meets the
beverage needs of consumers. In doing this, they
provided sound and rewarding business opportunities
and benefits for customers, suppliers, distributors,
and local communities.

Environment Commitment
To conduct their business in ways that protect and
preserve the environment and to integrate principles
of environmental stewardship and sustainable
development into their business decisions and

Workplace Commitment
To foster an open and inclusive environment where a
highly motivated, productive and committed
workforce drives business success through superior

Community Commitment
To invest time, expertise and resources to provide
economic opportunity, improve the quality of life,
and foster goodwill in their communities through
locally relevant initiatives.

In Great Britain during 2004/05, they carried out a
comprehensive review of their activities within the
above platforms in order to identify the key
challenges they face, such as marketing responsibly
to children and managing energy use, and to ensure
that they respond to these challenges appropriately.

At the end of 2005, they published a Corporate
Responsibility Review which is designed to give the
reader an overall understanding of how the Coca-
Cola System is run around the world, with the
majority of the areas covered relating to the

Pepsi’s Commitment

Pepsi’s commitment is to deliver sustained growth,
through empowered people, acting with
responsibility and building trust.

Sustained Growth is fundamental to motivating
and measuring Pepsi’s success. Their quest for
sustained growth stimulates innovation, places a
value on results, and helps them understand
whether today’s actions will contribute to o future
growth. It is about growth of people and company
performance. It prioritizes making a difference and
getting things done.

Empowered People means the company has the
freedom to act and think in ways that they feel will
get their job done, while being consistent with the
processes that ensure proper governance and being
mindful of the rest of the company’s needs.

Responsibility and Trust form the foundation for
healthy growth. It’s about earning the confidence
that other people place in the company as individuals
and as a company. Pepsi believes it is their
responsibility to take personal and corporate
ownership for all they do, to be good stewards of the
resources entrusted in them. Pepsi always tries to
build trust between themselves and others by
walking the talk and being committed to succeeding

Guiding Principles
This is how they carry out their commitment. They
always strive to:
Care for customers, consumers and the world they
live in. They are driven by an intense, competitive
spirit in the marketplace, but they direct this spirit
toward solutions that achieve a win for each their
constituents as well as a win for the corporation.
Their success depends on a thorough understanding
of customers, consumers and communities. They
believe that caring means going the extra mile.
Essentially, this is a spirit of growing rather than
Sell only products Pepsi can be proud of. The test of
their standards is that they must be able to
personally endorse their products without reservation
and consume them themselves. This principle
extends to every part of the business, from the
purchasing of ingredients to the point where the
products reach the consumer’s hands.
Speak with truth and candor. Pepsi speaks up,
tells the whole picture, not just what is convenient to
achieve individual goals. In addition to being clear,
honest and accurate, they take responsibility to
ensure that the communications are clearly

Balance short term and long term.
Pepsi makes decisions that hold both short-term and
long-term risks and benefits in balance over time.
Without this balance, it cannot achieve the goal of
sustainable growth.
It leverages a work environment that embraces
people with diverse backgrounds, traits and different
ways of thinking. This leads to innovation, the ability
to identify new market opportunities, all of which
helps develop new products and drives ability to
sustain the commitments to grow through
empowered people.

Respect others and succeed together.
The company is built on individual excellence and
personal accountability, but no one can achieve the
goals by acting alone. It needs great people who also
have the capability of working together, whether in
structured teams or informal collaboration. Mutual
success is absolutely dependent on treating everyone
who touches the business with respect, inside and
outside the company. A spirit of fun, respect for
others and the value put on teamwork make
company people enjoy being part of, and this
enables pepsi to deliver world-class performance.

The Coca-Cola Company offers nearly 400 brands in
over 200 countries, besides its namesake Coca-Cola

 This includes other varieties of Coca-Cola such as
 Diet Coke (introduced in 1982)

      Caffeine-free Coke
      Cherry Coke (1985)
      Diet Cherry Coke (1986)
      Coke with Lemon (2001)
      Diet Coke with Lemon (2001);
      Vanilla Coke (2002)
      Diet Vanilla Coke (2002)
       Coca-Cola C2 (2004)
      Coke with Lime (2004);
      Diet Coke with Lime (2004)
      Diet Coke with Splenda (2005)
      Coca-Cola Zero (2005),
      Coca-Cola Black Cherry Vanilla (2006),
      Diet Coca-Cola Black Cherry Vanilla (2006),
      and Coca-Cola BlāK
Tab was Coca-Cola's first attempt to develop a diet
soft drink, using saccharin as a sugar substitute.
Introduced in 1963, the product is still sold today,
however its sales have dwindled since the
introduction of Diet Coke.

The Coca-Cola Company also produces a number of
other soft drinks including Fanta (introduced circa
1942 or 1943) and Sprite

During the 1990s the company responded to the
growing consumer interest in healthy beverages by
introducing several new non-carbonated beverage

  1. Minute Maid Juices to Go,
  2. PowerAde sports beverage,
  3. flavoured tea Nestea (in a joint venture with
  4. Fruitopia fruit drink
  5. Dasani water, among others.
  Pepsi             Mountain Dew

  Pepsi Lime        Diet Mountain Dew

  Diet Pepsi Lime   Code Red.

Diet Pepsi          Diet Code Red

Diet Pepsi Jazz     LiveWire

Pepsi Twist         MDX

Diet Pepsi Twist    Diet MDX

Pepsi Vanilla       AMP
Diet Pepsi Vanilla         Mug Root Beer

Wild Cherry Pepsi        Di Mug Root Beer

Diet Wild Cherry Pepsi    M Mirinda Orange

Pepsi ONE                 TTropicana Juice
Sierra Mist                Frappuccino

Sierra Mist Free           Starbucks

Aquafina                   Tropicana Twister

Aquafina Flavor Splash     SoBe

Lipton Iced Tea            Quaker Milk Chillers

Lipton Brisk
Restaurant system

  PepsiCo is the largest restaurant system in the
world. The restaurant segment is engaged in the
operation, development, franchising, and licensing of
Pizza Hut, Taco Bell and KFC concepts. In 1977,
Pizza Hut became a part of PepsiCo and is currently
the leader among the pizza restaurant chain in the
United States. Taco Bell, the largest Mexican-style
restaurant in the United States, became a part of
PepsiCo's restaurant system in 1978


PepsiCo's food business started in 1932 at the birth of
both, the Frito-Lay Company, a producer of corn-
chips and H.W. Lay Company, a producer of potato
chips. In 1961, the Frito-Lay company merged with
the H.W. Lay Company to form Frito-Lay, Inc.Today,
Frito-Lay Inc. is a major division in PepsiCo's
corporate structure.

Some of their products include: Lay's and Ruffles
brand potato chips, Doritos and Tostitos brand tortilla
chips, Frito's brand corn chips, Cheetos brand cheese
flavored snacks, Rold Gold brand pretzels, and a
variety of dips and salsas.

Social responsibility has become of prime importance
if a company wishes to survive in the society.
Companies are waking up to the fact that setting up
any organisation is a mutual task where you have to
pay back some part of the benefits which you receive
from the society. C S R is today a part of the
corporate culture. With time social responsibility
towards the environment has become of the utmost
concern and no company is left back in attaining it.

Recent positive acts by Coca Cola include:

Promoting Diversity
   Coca-Cola ranked 26th on Fortune magazine's
    list of the "50 Best Companies for Minorities" in
   Coca-Cola Bottling company was named one of
    "The Top 100 Employers for the Class of 2004"
    by Black Collegian magazine.
   Coca-Cola was named one of the "50 Best
    Companies for Latinas to Work for in the U.S."
    by Latina Style in 2004.
   Coca-Cola is among 32 companies that have
    filed "friend of the court" briefs in support of the
    University of Michigan's affirmative action
   Coca-Cola offers domestic partner health
    benefits to employees' domestic partners of the
    same sex.
     Coca-Cola's non-discrimination policy includes
      sexual orientation.

HIV / AIDS in Africa
   In September 2002 Coca-Cola announced it
    would spend up to $5 million per year to fund
    HIV/AIDS treatment for Africans who work
    within the company's bottling system. The
    company had previously offered treatment to its
    1,200 corporate workers in Africa. The
    company's bottling system is made up of 40
    independent companies and employs 58,000
    people in Africa.
   Coca Cola Africa plans to support HIV/AIDS
    programs as part of a $50 million budget to be
    granted to African organizations by the end of
    the decade.

Charitable Giving

     The Coca-Cola Company and its bottling
      partners shipped more than 30 million donated
      8-oz. servings to Hurricane Katrina Evacuees.
     Coca-Cola donated $10 million to tsunami relief
      efforts in Asia. Employees of Coca-Cola in the
      region are also delivering bottled water, food
      and other supplies.
     After the September 11 terrorist attacks on the
      World Trade Center and the Pentagon, Coca-
      Cola its affiliates committed to a $12 million
      financial contribution to disaster relief efforts.

The Coca-Cola System is committed to minimising
the impact of our packaging on the environment.
In 2004, we achieved a 26% reduction in landfill
waste compared with 2003.

We display relevant recycling symbols on all of our
packaging and are currently looking at further
ways to encourage consumers of our products to
recycle more.

All cans are made from aluminium and are 100%
CCE works with Alupro - a not for profit
organisation dedicated to promoting aluminium

All glass bottles are 100% recyclable, and contain
about 40% recycled content.
CCE is working with Recycle More Glass to
enhance collection and recycling from licensed

All bottles are made from PET (polyethylene
teraphthalate) and are 100% recyclable.
CCE is a member of RECOUP, a charitable
organisation that promotes plastic bottle recycling.
100% of our cans, plastic bottles, glass bottles and
cardboard packaging is recyclable. Wherever
possible we use recycled materials in the
manufacture of our packaging as well.
All packages need to be fit to withstand the rigours
of the distribution network and to protect and
preserve product quality. However, over the last
15 years we have reduced the amount of material
used to package our products. For example, on
average our bottles and cans are now 30% lighter

We believe that all litter is undesirable and is a
behavioural problem. Discarded soft drinks
packaging is a small but visible example of litter.
We encourage our consumers to dispose of their
soft drinks containers responsibly, and all our
packaging carries the Tidy Man logo.
CCGB became a member of ENCAMS (formerly
known as Keep Britain Tidy), the Government's
recognized agency for promoting litter abatement,
in 1965, and over the years we have supported
programmes such as:
 People & Places (flagship program involving local
   authorities and communities).
 National Spring Clean/Anti-Litter (over ten
 Theme Months e.g. Water Month, Bio Diversity
  Month, Waste Month.
We continue to be a corporate member of

The Coca-Cola System in Great Britain is working
with a number of organizations on various
initiatives which help us to minimize our
environmental impact, now and in the future. Both
CCGB and CCE are members of a variety of
parliamentary groups, NGOs and industry bodies,

(Industry Council for Packaging & the
Environment) - In 1974, CCGB was a founding
member of INCPEN, an industry group which
represents the interests of the packaged goods

A charitable organisation promoting plastic bottle
recycling. CCE was a founding member of RECOUP
in 1989.

CCE was the first founding member of Valpak, the
UK's largest producer waste responsibility scheme,
meeting the recycling obligations of 3,000 UK
businesses under the Packaging Waste

CCE is working with WRAP (the Waste & Resources
Action Program) to pilot the Recycling Zone
initiative and to undertake a large-scale
commercial trial to investigate the feasibility of
using recycled PET in bottle manufacturing.

Recycling Zone
During 2004, CCE helped to develop this program
promoting the recycling of plastic bottles and
aluminum drink cans from workplaces and
secondary schools in Great Britain.
The 9-month pilot was funded by WRAP (the
Waste & Resources Action Programmes), Novelis
(a major supplier of aluminum), CCE and the main
recycling representatives for the plastic and
aluminum sectors in the UK - Recoup and Alupro.
The pilot demonstrated that aluminum drink cans
and plastic bottles can be recycled economically,
with workplaces reporting waste management cost
savings of 10-20%. The pilot also reinforced
personal 'recycling behaviour' as participants also
increased their use of recycling facilities at home.
For more information visit

Recycled PET
As a System we are currently exploring the
feasibility of introducing recycled materials into
PET bottles in Great Britain. CCE is working with
WRAP to undertake a large scale commercial trial
to investigate the feasibility of using recycled PET
in bottle manufacture. It is anticipated that the
trial will involve several million bottles of 500ml
Coca-Cola at 25% recycled content - utilizing
1,000 tons of recycled PET. Once the trial has
been completed, CCE will assess the viability of
introducing recycled PET bottles into the
marketplace in Great Britain.

Office recycling
The 'Bin-thinking' campaign promotes recycling to
all employees via special bins at desks and in
public areas, through which we aim to achieve
high levels of recycling of items including paper,
cardboard, newspapers and magazines, cans and
bottles. We also have a system in place for
recycling used ink and toner cartridges from
printers and copiers. The message to recycle
internally is reinforced to employees through a
creative communications campaign. To the right
are some examples of the office posters. In
addition, all the office paper we use is made using
recycled material.
Social responsibility towards environment

In order to minimize the effect of the company and
its activities on the environment, the companies are
taking every step which is socially responsible,
scientifically based and economically sound.

As stated in the Pepsi’s policies “We encourage
conservation regarding energy use produced, cleaner
air landfill waste etc.

Health state programmes

Pepsi spend over $490000 over the health state
programmes all over world . The prime importance
is given for the build of good health

Women sport foundation
Another program undertaken by the Pepsi foundation
is the
development of sport academy mainly for upbringing
of women personalities in the field of sports.
Pepsi has set up a foundation in China and also
some other developing countries.

PEPSI also organizes a marathon race called ‘ GO
GIRLS GO ‘ only for the female sector. Various
celebrities run along side women from all walks of
life. Thus it is trying to bring women in front in the
field of sports which till date is male dominated

Preventive medicine research

Pepsi also invests heavily in the research and
development efforts where prime importance is
taken to develop various preventive medicines .this
medicines are primely used for the welfare of the
people in the under developed and developing

Activa 2

Activa 2 is a school for the development and
upbringing of future athletes and sports
personalities. This foundation contributes to
nurturing hidden talent which goes untapped in the
poor and developing countries due to lack of proper
nutrition, financial problems etc. Such schools can be
seen in countries like china.

The Energy and Resource Institute
Pepsi has collaborated with TERI, an organisation
that seeks steps for the water management and
conservation programmes around the world. Pepsi ha
invested a whopping $385000 to set up two projects
started in area in Karnataka and Uttaranchal

Disaster relief.

Pepsi has always came on front footing during the
disaster occurring in various parts of the world to
fund relief work and help people in this regions get
access to the best medicines, services as possible.


TSUNAMI                     $ 21 MN
KATRINA                     $ 2.1 MN
PAKISTAN                    $ 2 MN


Control of market share is the key issue in this
power struggle. The situation is both Coke and Pepsi
are trying to gain market share in this beverage
market, which is valued at over $30 billion a year.
The facts are that each company is coming up with
new products and ideas in order to increase their
market share. The creativity and effectiveness of
each company's marketing strategy will ultimately
determine the winner with respect to sales, profits,
and customer loyalty. Not only are these two
companies constructing new ways to sell Coke and
Pepsi, but they are also thinking of ways in which to
increase market share in other beverage categories.
Although the goal of both companies is exactly the
same, the two companies rely on somewhat different
marketing strategies.

Product differentiation
 Pepsi has always taken the lead in developing new
products, but Coke soon learned their lesson and
started to do the same. Coke hired marketing
executives with good track records (98). Pepsi has
always taken more risks, acted rapidly, and was
always developing new advertising ideas.
in certain countries, consumers wanted a soft drink
that was low in sugar, yet did not have a diet taste
or image (99). Pepsi responded by developing Pepsi

Management selection
Coke hired marketing executives with good track
records (98).
Coke also implemented cross training of managers
so it would be more difficult for cliques to form within
the company (98).

Newer markets
Both companies have also relied on finding new
markets, especially in foreign countries. In the
foreign markets, Coke has been more successful
than Pepsi. For example, in Eastern Europe, Pepsi
has relied on a barter system that proved to fail.
However, in certain countries that allow direct
comparison, Pepsi has beat Coke.
These companies in trying to capture market share
have relied on the development of new products. In
some cases the products have been successful.
However, at other times the new products have
failed. For Coke, changing their original formula and
introducing it as “New Coke” was a major failure.
The new formula hurt Coke as consumers requested
Classic Cokes’ return. Pepsi has also had its share of
failures. Some of their failures included: Pepsi Light,
Pepsi Free, Pepsi AM, and Crystal Pepsi.
One solution to increasing market share is to
carefully follow consumer wants in each country. The
next step is to take fast action to develop a product
that meets the requirements for that particular
region. Both companies cannot just sell one product;
if they do they will not succeed. They have to always
be creating and updating their marketing plans and
products. The companies must be willing to
accommodate their “target markets”.
 Gaining market share occurs when a company stays
one-step ahead of the competition by knowing what
the consumer wants.
Situation Analysis

Market Analysis:

The market analysis investigates both the internal
and external business environment. It is vital to
carefully monitor both the internal and external
aspects regarding i beverage industry as both the
internal and external environment and their
respective influences to understand the decisive
traits in the soft drink industry.

Internal Business Environment

The internal business environment and its influences
are that which are to some extent within the
business’s control. The main attributes in the internal
environment include efficiency in the production
process, through management skills and effective
communication channels. To effectively control and
monitor the internal business environment. Coke
must conduct continual appraisals of the business’s
operations and readily act upon any factors, which
cause inefficiencies in any phase of the production
and consumer process. Coke hired marketing
executives with good track records. Coke also
implemented cross training of managers so it would
be more difficult for cliques to form within the
company. Pepsi on the other hand developed local
workforce, both frontline and the back office

External Business Environment
The External business environment and its influences
are usually powerful forces that can affect a whole
industry and, in fact, a whole economy. Changes in
the external environment will create opportunities or
threats in the market place industries must be aware
off. Fluctuations in the economy, changing customer
attitudes and values, and demographic patterns
heavily influence the success of their products on the
market and the reception they receive from the
consumers. Both companies have also relied on
finding new markets, especially in foreign countries.
In the foreign markets, Coke has been more
successful than Pepsi.

SWOT Analysis:

SWOT stands for Strengths Weakness Opportunities
Threats. SWOT analysis is a technique much used in
many general management as well as marketing
scenarios. SWOT consists of examining the current
activities of the organisation- its Strengths and
Weakness- and then using this and external research
data to set out the Opportunities and Threats that


Coca-Cola has been a complex part of world culture
for a very long time. The product's image is loaded
with over-romanticizing, and this is an image many
people have taken deeply to heart. The Coca-Cola
image is displayed on T-shirts, hats, and collectible
memorabilia. This extremely recognizable branding is
one of Coca-Cola's greatest strengths. "Enjoyed
more than 685 million times a day around the world
Coca-Cola stands as a simple, yet powerful symbol of
quality and enjoyment”.
Additionally, Coca-Cola's bottling system is one of
their greatest strengths. It allows them to conduct
business on a global scale while at the same time
maintain a local approach. The bottling companies
are locally owned and operated by independent
business people who are authorized to sell products
of the Coca-Cola Company. Because Coke does not
have outright ownership of its bottling network, its
main source of revenue is the sale of concentrate to
its bottlers.
Pepsi’s razzle-dazzle advertising, sharp marketing
and an efficient distribution system helped it gain
great entry into foreign markets.
Pepsi has always taken the lead in developing new
products. PepsiCo has smartly moved to expand its
product line in the Asian region
During Coke's period in exile, Pepsi bottled almost all
soft drinks sold in the Gulf, the region where the
company is number one
PepsiCo's has two-decade head start in Middle East.
The company sells 75 percent of all soda in the Gulf.
Coca-Cola is the best-selling soft drink in most
countries. Nevertheless, there are some places like
Quebec and Prince Edward Island, Canada, where
Pepsi is the market leader.

Weaknesses for any business need to be both
minimised and monitored in order to effectively
achieve productivity and efficiency in their business’s
activities, Coke is no exception. Although domestic
business as well as many international markets are
thriving (volumes in Latin America were up 12%),
Coca-Cola has recently reported some "declines in
unit case volumes in Indonesia and Thailand due to
reduced consumer purchasing power." According to
an article in Fortune magazine, "In Japan, unit case
sales fell 3% in the second quarter [of 1998]...scary
because while Japan generates around 5% of
worldwide volume, it contributes three times as
much to profits. Latin America, Southeast Asia, and
Japan account for about 35% of Coke's volume and
none of these markets are performing to
Coca-Cola on the other side has effects on the teeth
which is an issue for health care. It also has got
sugar by which continuous drinking of Coca-Cola
may cause health problems. Being addicted to Coca-
Cola also is a health problem, because drinking of
Coca-Cola daily has an effect on your body after few
years. The Coca-Cola Company has been involved in
a number controversies and law suits.
In regards to its business practices, a number of law
suits have issued in relation to monopolistic
practices, some of which have been dismissed, some
of which The Coca-Cola Company agreed to change
its business practices and some of which settled out
of court. It has also been involved in a discrimination
case. There have been continuing issues related to
the Coca-Cola Company, the Middle East and U.S.
foreign policy.

Pepsi, even after die hard advertising and
multimillion advertising budget, it has been unable to
create the kind of brand recognition which coca cola
enjoys( it is believed to have 94% recognition in the
In regards to environmental issues in India, there
has been a controversy over pesticides possibly
showing up in the product, as well as the companies
over-use of local water supplies in some locations.
PepsiCo, which remains the dominating leader in the
region, nevertheless still hasn't gotten over the
shock of Coke's reappearance on the scene. Today,
the Coca-Cola Company quenches the thirst of
almost a quarter of the region's soda drinkers. In
Saudi Arabia, where Coke was originally slapped with
the humiliating moniker 'red Pepsi,' the underdog
now feasts on almost a fifth of Pepsi's former market
PepsiCo donates to pan-Arab educational charities,
but Coca-Cola has taken the philanthropy lead. In
Egypt, Coca-Cola supports youth centers, trash pick-
up drives and a children's cancer hospital. In
Palestine, the company hands out school supplies; in
Lebanon, Coke planted cedar trees.
Brand recognition is the significant factor affecting
Coke's competitive position. Coca-Cola's brand name
is known well throughout 94% of the world today.
The primary concern over the past few years has
been to get this name brand to be even better
known. Packaging changes have also affected sales
and industry positioning, but in general, the public
has tended not to be affected by new products.
Coca-Cola's bottling system also allows the company
to take advantage of infinite growth opportunities
around the world. This strategy gives Coke the
opportunity to service a large geographic, diverse

Last year, PepsiCo scored one clear victory in the
region. In a partnership with their UAE distributor,
Dubai Refreshments Company, and the state-owned
telecommunications firm Etisalat, Pepsi launched e-
vending. Now, anyone with a cell phone can simply
dial a number displayed on Pepsi vending machines,
choose a treat and pay when their phone bill arrives.
Pepsi's Dubai office says the system, for now limited
to the UAE, works 'extremely well.’ After this move
people have recognized it is easier to get a Pepsi as
compared to other brands which is a great
opportunity in this region.

Currently, the threat of new viable competitors in the
carbonated soft drink industry is not very
substantial. The threat of substitutes, however, is a
very real threat. The soft drink industry is very
strong, but consumers are not necessarily married to
it. Possible substitutes that continuously put
pressure on both Pepsi and Coke include tea, coffee,
juices, milk, and hot chocolate. Even though Coca-
Cola and Pepsi control nearly 40% of the entire
beverage market, the changing health-consciousness
of the market could have a serious affect. Of course,
both Coke and Pepsi have already diversified into
these markets, allowing them to have further
significant market shares and offset any losses
incurred due to fluctuations in the market. Consumer
buying power also represents a key threat in the
industry. The rivalry between Pepsi and Coke has
produce a very slow moving industry in which
management must continuously respond to the
changing attitudes and demands of their consumers
or face losing market share to the competition.
Furthermore, consumers can easily switch to other
beverages with little cost or consequence. , British
drinkers of the beverage company's Dasani mineral
water (coke) were surprised to learn their elegant
blue bottles held filtered tap water. A team of
professional tasters couldn't tell the difference
between faucet water and Dasani, more than 3,000
times as expensive. The British Food Standards
Agency opened an investigation.
  Market segmentation,Targeting, Positioning

Segmentation : Identifying al segments for the
product/service. To be useful, segments should be:

  1. Measurable
  2. Accessible (can you reach them)
  3. Profitable
  4. Distinct from one another

The objective of segmentation is to find attractive
markets. Strategies include

     Break market into components
     Regroup into market segments
     Select which segment to target

                Selecting Target Market

  Once the situation analysis is complete, and the
marketing objectives determined, attention turns to
  the target market. The soft drink market is very
 large, and the business cannot be “all things to all
 people”, so it must choose which market segments
have the greatest potential. The target market is the
 group of customers on whom the business focuses
   The target market is where Coca Cola focuses its
  marketing efforts as it feels this is where it will be
 most productive and successful. The target market
for Coca cola is very wide as it satisfy’s the needs for
many different consumers, ranging from the healthy
diet consciousness through Diet Coke to the average
  human through its best selling drink regular Coke.
   Most Coke products satisfy all age groups as it is
   proven that most people of different age groups
    consume the Coca Cola product. This market is
relatively large and is open to both genders, thereby
        allowing greater product diversification.
    There are four broad ways which Coca Cola can
                  segment its market:
                   -> Mass marketing
               -> Concentrated marketing
               -> Differentiated marketing
                   -> Niche marketing
The most apparent method used by Coca Cola is with
   no doubt the differentiated marketing method as
Coke satisfy’s a range of different markets. Diet coke
   satisfy’s the weight consciousness, regular coke,
sprite, fanta the average human, coffee, iced tea etc.
Each group of beverages satisfy a particular group of
       people but majority the average human.

STP is one of the most critical decisions a marketer
will make and thus it is extremely important to
collect accurate information to support this decision.
PEPSI Max has unveiled a new campaign targeting
men following research into the minds of cola

Pepsi marketing director Tony Thomas said research
showed the split of the cola market into two key
segments —full sugar and diet. “Diet is an out-dated
concept,” he said. “There are many consumers out
there who embrace life and get the most they can
out of it and, while they are into staying in shape, do
not buy into the diet concept on the grounds of it
being a taste and image compromise.”

Pepsi Max targets the 20–30 age group and is
consumed by more men than women, unlike its
competitor Diet Coke.

 “This commercial takes Pepsi Max in a different
direction to the very young and extreme nature of
the ads used in the last ten years.”

Pepsi Max will also be conducting an extensive
sampling campaign in the Sydney and Melbourne
markets. The sampling includes a car racing game
where consumers sit on a keg-like can and ride
inside an inflatable track.
The commercial was developed internationally by
BBDO but was shot in Sydney.

It features the new tagline ‘Zero Sugar. Max Taste.

Positioning Mapping
Positioning is an essential component -- and skill - in
good marketing. Perceptual maps are used to
determine the position of a product, firm, person,
service or idea. Positioning maps, or perceptual
maps can be simple, yet very effective marketing
tools. One definition of Positioning Theory is: the
science of perceptual strategy. It is based on a
theory that strategy can only be planned in the mind
of the consumer, not the marketplace*.

It is important to understand the levels of
competition because positioning applies at all levels
of competition. For example:

     Product Level (e.g., Pepsi vs. Coke)
     Corporate Level (e.g., Pepsi Inc. vs. Coca Cola
     Industry Level (e.g., Beverage Industry vs.
      Snack food Industry)
     Country Level (e.g., USA vs. France)

Once a business has decided which segments of the
market it will compete in, developed a clear picture
of its target market and defined its product, the
positioning strategy can be developed. Positioning is
the process of creating, the image the product holds
in the mind of consumers, relative to competing
products. Positioning helps customers understand
what is unique about the products when compared
with the competition. pepsico plan to further create
positions that will give their products the greatest
advantage in their target markets. pepsico has been
positioned based on the process of positioning by
direct comparison and have positioned their products
to benefit their target market. Most people create an
image of a product by comparing it to another
product, thus evident through the famous battles
between Coca-Cola and Pepsi products.

Marketers in most categories are finding that a mix
of global positioning with local advertising is the best
The Coca-Cola Company, recently pulled back from
its global advertising strategy to take a more
regional approach.

The branding and positioning of Coca-Cola will
continue to be consistent around the world, says
Alison Lewis, VP of advertising for Toronto-based
Coca-Cola Ltd., but how it is executed locally is
based on what is best for each market.

"A Coke is a Coke no matter what country you go to,
however the local activation is different so you won’t
see exactly the same advertising," says Lewis, who
adds that marketing schemes developed at the soft
drink manufacturer’s Atlanta-based headquarters will
still be used in "where it makes sense."

If Coca-Cola and other global marketers are moving
away from global campaigns, it would seem they
can’t find global consumer segments big enough to
market to. But none of that invalidates a global

The possibility of having a strong global brand
identity and having a positioning in different markets
that is tuned to the needs of the marketplace is still
very high.

Brands have histories and those are the intangibles
that push global marketers to local campaigns.

Branding refers to the sum total of a company's
value-proposition: products, services, people,
advertising, positioning, and culture.

                Comparison in Branding

Confirming the result of Pepsi Challenge, brain scan
show that the brand of any soda is more important
than its taste.
Most people prefer the taste of Pepsi, and yet the
majority still buy Coke. Ever since the famous
findings of the Pepsi Challenge, marketers have
argued that their work must make a difference.
It is now proofed that branding plays with our brains.
Last year the company decided to repeat the Pepsi
Challenge, but scan the activity of the brain at the
same time. Using a non-invasive technique called
Functional Magnetic Resonance Imaging (FMRI), the
scans reveal which parts of the brain are active in
real time.

When given taste of an unnamed soda to the
volunteers, it was found that more people preferred
Pepsi. On the scan images the ventral putamen, one
of the brain’s reward centers, had a response that
was five times stronger than for people who
preferred Coke.

The shock came when the experiment was repeated,
this time telling volunteers which brand they were
tasting. Nearly all the subjects then said they
preferred the Coke. Moreover, different parts of the
brain fired as well, especially the medial prefrontal
cortex, an area associated with thinking and judging.
Without a doubt the subjects were letting their
experience of the Coke brand influence their

This work proves that branding goes far beyond
images and memory recall. The medial prefrontal
cortex is a part of the brain known to be involved in
our sense of self. It fires in response to something --
an image, name or concept -- that resonates with
who we are. Something clicks, and we are more
likely to buy.

It is often hard to say exactly why we buy one
company’s product over another. Companies such as
Nike and Adidas spend large amounts of money
trying to win consumers away from their competitors
who make products that are very similar. The
popularity of the brand is often the deciding factor.
Over the time Coca Cola has spent millions of dollars
developing and promoting their brand name,
resulting in world wide recognition. 'Coca-Cola' is the
most recognised trademark, recognised by 94% of
the world's population and is the most widely
recognised word after "OK". Coca Cola’s red and
white colours and special writing are all examples of
world-wide trademarks.
There are a number of branding strategies: Generic
brand strategy, Individual brand strategy, Family
brand strategy, Manufacturer’s brand strategy,
Private brand strategy and Hybrid brand strategy.
Coca Cola utilizes the Individual brand strategy as
Coca Cola’s major products are given their own
brand names e.g Fanta, Sprite, Coca Cola etc
although they maybe presented as different lines
they operate under the name of Coca Cola.
             Problems with brand names

When Coke launched in China they wanted to retain
the 'Coca-Cola' name. There first attempt in Chinese
was 'Ke-kou-ke-la' which had the benefit of sounding
similar, but unfortunately meant "bite the wax
tadpole" or "female horse stuffed with wax"
depending on the dialect.

Coke's second brand naming attempt was more
effective, using a different set of characters to
present "ko-kou-ko-le," which can be loosely
translated as "happiness in the mouth."

Coke isn't the only company to have problems in
brand naming in new markets:

In Taiwan, the translation of the Pepsi slogan "Come
alive with the Pepsi Generation" came out as "Pepsi
will bring your ancestors back from the dead."

Also in Chinese, the Kentucky Fried Chicken slogan
"finger-lickin' good" came out as "eat your fingers

Brand Endorsements

Britney Spears has signed a multiyear global
marketing pact with PepsiCo. The agreement calls for
creative collaboration on new Pepsi TV ads and the
soft drink company's co-sponsorship of Spears'
worldwide concert tour.
The first Spears/Pepsi commercial will debut March
25, during the Academy Awards. The deal will also
include point-of-purchase items and consumer

"Britney is on the cutting edge of popular
entertainment," stated Dawn Hudson, Pepsi's senior
vice president of strategy and marketing. "She's
youthful, inventive, optimistic and fun-loving--the
ultimate fit with the Pepsi brand."


Pricing is one of the four p's of the marketing mix.
The other three aspects are product management,
promotion, and place. It is also a key variable in
microeconomic price allocation theory Pricing is the
manual or automatic process of applying prices to
purchase and sales orders, based on factors such as:
a fixed amount, quantity break, promotion or sales
campaign, specific vendor quote, price prevailing on
entry, shipment or invoice date, combination of
multiple orders or lines, and many others.
Automated systems require more setup and
maintenance but may prevent pricing errors.

Heralding the cut-throat summer competition in soft
drinks, Pepsi said that it has slashed prices of its 300
ml returnable glass bottles to Rs 6 in the capital and
this price cut may be extended to other markets to
make its brands more affordable.
However, Coca-Cola appears to have been caught on
the wrong foot, with its 300 ml pack still priced at Rs

When contacted, Sunil Gupta vice-president
(external), of Coca-Cola India, told PTI, "We're
making no fresh comments on our pricing strategy.
Right now, our 300 ml pack continues to be priced at
Rs 8."

The fresh price war, triggered by Pepsi, follows an
earlier onslaught when both the companies reduced
prices by about 20 per cent across the board just
before the Union Budget for 2003-04, which provided
them excise duty relief.

A Pepsi spokesperson said, "In a high-consumption
market like Delhi, aggressive price points devolving
from the 300-ml segment will work much better. Our
price strategy for this market, therefore, works off
this thinking. As a consequence, 200-ml bottles are
priced at Rs 5. The new price points are 300 ml at Rs
6, and 200 ml at Rs 5."

According to industry sources, this sector is heavily
dependent on returnable glass bottles and Pepsi's
latest price reduction strategy is critical to drive

Sources said earlier this year, Coca-Cola had taken
the price war head on by introducing 600-ml PET
bottles priced at Rs 12 each, beginning with
Maharashtra, one of Pepsi's key markets.

Pepsi, which was selling 500-ml PET bottles priced at
Rs 15 each, was caught on the backfoot and was
forced to react, beginning with reduction in prices of
its 500 ml bottles to match that of Coke, the sources

Meanwhile, action may now shift to the 200-ml

According to industry sources, Coke is offering Sunfill
sachets priced at Rs 2 each, free with 200-ml and
300-ml bottles, in some regional markets. In effect,
therefore, while
Coke's price points for 200-ml and 300-ml bottles
remain at Rs 5 and Rs 8 respectively, the consumer
is being offered more for less.
In the home-consumption segment too, Coca-Cola
took the lead earlier this year by slashing prices of
its 1.5-litre and 2-litre PET bottles.
Pepsi too reduced prices of its 1.5-litre and 2-litre
PET bottles, to Rs 35 and Rs 40 respectively, against
the earlier price of Rs 43 and Rs 50.

In today’s competitive environment , having the
right product at the right place in the right place at
the right time may still not be enough to be
successful. Effective communication with the target
market is essential for the success of the product
and business. Promotion is the p of the marketing
mix designed to inform the marketplace about who
you are, how good your product is and where they
can buy it. Promotion is also used to persuade the
customers to try a new product, or buy more of an
old product.
The promotional mix is the combination of personal
selling, advertising, sales promotion and public
relations that it uses in its marketing plan. Above the
line promotions refers to mainstream
media:Advertising through common media such as
television, radio, transport, and billboards and in
newspapers and magazines. Because most of the
target is most likely to be exposed to media such as
television, radio and magazines etc.

Pepsi stuff refers to a landmark strategy and global
integrated campaign launched by PepsiCo first in
north America and then around the world;in the
1990’s and then continuing into 2000’s featuring
merchandise that could be purchased using Pepsi
There are two ways to acquire Pepsi points:

        Collect points from specially marked
         packages and fountain
        Purchase supplementary points on the pepsi
         redemption order form, for 10 cents per
Pepsi stuff re-conceptualized its trademark
marketing strategy and created an effective ongoing
brand building assaultin the cola wars.

   In response to success of the Pepsi Stuff Campaign,
    on May 13, 1997 they unveiled "Pepsi Stuff '97." This
    is a promotion in which you buy Pepsi products,
    receive points on the boxes and cans, and then
    redeem them for items in their catalogue. Pepsi was
    very successful last year with this campaign,
    attracting over 30 million participants Pepsi has taken
    consideration to offer prizes in "Pepsi Stuff '97" that
    are legally attainable. They include "Fantasy Stuff"
    prizes, such as throwing out the first pitch at a World
    Series game or feeding the ball to Shaquille O'neal for
    a $25,000 slam-dunk.
   Success in the soft-drink market also involves forming
    strategic alliances with companies to capture market

   Pepsi has secured two major deals this year, one with
    Warner Brother's International Theaters, and the
    other with Major League Baseball. The Warner
    Brother's alliance gives Pepsi exclusive pouring rights
    at all existing and projected Warner Brother's
    International Theaters. This includes 358 movie
    screens at 43 theaters in 6 countries, including: Great
    Britain, Spain, Germany, Portugal, Italy , and Japan.
    The significance of this deal according to Vince
    Gennaro, President of the Fountain Beverage Division
    at Pepsi, "Nearly half on the world's movie fans are
    between the ages of 15 and 24. Together with Warner
    Brother's, we intend to inject a whole new dimension
    of excitement into their regular trip to the multiplex."

   Pepsi's five year deal with Major League Baseball
    gives them exclusive rights to use baseball's
    trademarks and team logos in al advertising,
    packaging, merchandising, and promotions. Pepsi has
    forged a reputation as appealing to the teenage
    audience, which is why Major League Baseball
    believes its deal with Pepsi will attract a younger
    audience, which was partially lost due to aggressive
    marketing campaigns by pro football and basketball,
    as well as the 1994 strike.

   Project Blue" is an international venture the Pepsi
    hopes will transform its international marketplace
    presence. It represents a $500 million investment,
    including the system-wide conversion of bottles and
    cans, coolers and vending machines, as well as trucks
    and other transports. The new design features a
    striking blue "grid" background; bold vertical
    typography; and a three dimensional globe that
    evokes the company's "ball" icon. Currently Coca-
    Cola is associated with red, which is why Pepsi is
    attempting to create brand association and awaren
    ess with the color blue. According to John Swanhaus,
    Pepsi-Cola Company's Senior Vice President of
    International Sales and Marketing, "Blue is modern
    and cool, exciting and dynamic, and most importantly
    it's a color that powerfully communicates
    refreshment. Ultimately, we believe that owning blue
    will give us a significant competitive advantage in the

   Pepsi, with their aggressive marketing, also engage in
    creative ventures. Three such case include an
    innovative web site, the world's first commercial in
    space, and buying screensaver ad space in schools.
    The web site, called Pepsi World, combines
    breakthrough technology with powerful content. If
    features movie previews, origin al interactive games,
     first-run articles, new music, digital art, national Net-
     Promotions and more. This site allows Pepsi to
     aggressively market their brand name in a
     revolutionary way. The site is constantly being re-
     invented to remain at the forefront of the
    Pepsi is also breaking ground by filming the world's
     first commercial in space. It is part of Pepsi's
     partnership with the Russian Mir Space Station. For
     the ad, two cosmonauts film the deployment of a
     large-scale replica of Pepsi's new blue can, which w as
     described in the "Project Blue" section. The can itself
     is actually a fully orbital spacecraft built by
     International Space Enterprises. It was built to
     withstand temperature swings of -100 F to + 200 F.

     A Canadian school board, faced with the problem of
      large-scale funding cutbacks , have sold to Pepsi,
      McDonald's, and Trident advertising rights to a
      screensaver program that mixes educational
      messages, motivational words, and corporate
      advertising. This subject is controversial, but all
      advertisements must agree to include an
      educationally motivating message. The Pepsi ad will
      have a slogan that encourages children to "develop a
      thirst for knowledge."

     According to Ms Lal, PepsiCo's research indicates
      that watching television is a popular leisure and
      entertainment option in home.
     Therefore, it recently launched a promotion
      called Pepsi TV,              which has been
      built around `involvement' and `enjoyment' and
      reiterates PepsiCo's "core values of irreverence
      and fun."
     PepsiCo is also rolling out campaigns around the
      cricket theme. "As cricket is one of the three
      important pillars for PepsiCo, the upcoming
      months will see significant activations of Pepsi
      with cricket." Pepsico has 39 bottling plants in
      India, of which 17 are company-owned and the
      rest franchisee-owned

     Coca-Cola's advertising has had a significant
      impact on American culture, and is frequently
      credited with the "invention" of the modern
      image of Santa Claus as an old man in red-and-
      white garments; however, while the company
      did in fact start promoting this image in the
      1930s in its winter advertising campaigns, it was
      already common before that.
     In the 1970s, a song from a Coca-Cola
      commercial called "I'd Like to Teach the World
      to Sing", produced by Billy Davis, became a
      popular hit single, and is widely considered one
    of the best advertising campaigns in history. The
    song and commercial is credited with helping
    Coca-Cola retain its market from the burgeoning
    Pepsi-Cola Co. and to help make Coke attractive
    to young people again
   As a result of extensive campaigns in the early
    20th century, the Coca-Cola drink has a high
    degree of identification being considered an
    “American brand”

   The famous Coca-Cola logo is often parodied in
    advertisements in motion pictures. This example
    is from the animated movie Shark Tale.
   Coca-Cola has a long history of sports marketing
    relationships, which over the years have
    included several major sports leagues both in
    the United States and internationally. Two such
    notable instances are Coca-Cola's sponsorship of
    the Olympic games and also Coca-Cola's
    sponsorship of FIFA since 1978.
   Recently, Coca-Cola came out with rewards
    programs with codes or messages printed on the
    bottom of caps. Currently, it has a rewards
    program called "my coke rewards”. Drinkers use
    codes found on bottles and 6/12 packs (which
    earn three times the points that bottles do) and
    redeem them on the
    website. The codes have also been sold on
    auction sites such as eBay. The current rewards
    program will end in January 2007 unless
    announced by Coca-Cola.
   In 2006, a soccer ball shaped Diet Coke Bottle
    was launched as part of a promotion campaign
    for the FIFA World Cup 2006.
   Coca-Cola had signed on various celebrities
    including movie stars such as Karishma
    Kapoor, cricketers such as Srinath, Sourav
    Ganguly, southern celebrities like Vijay in the
    past and today, its brand ambassadors are
    Aamir Khan, Aishwarya Rai, Vivek Oberoi
    and cricketer Virendra Sehwag.
   Coca-Cola has been very strongly associated
    with cricket, sponsoring the World Cup in 1996
    and various other tournaments, including the
    Coca-Cola Cup in Sharjah in the late nineties.
    Coca-Cola's advertising campaigns Jo Chaho
    Ho Jaye and Life ho to Aisi were very popular
    and had entered the youth's vocabulary. In
    2002, Coca-Cola launched the campaign
    "Thanda Matlab Coca-Cola" which sky-
    rocketed the brand to make it India's favourite
    soft-drink brand. In 2003, Coke was available
    for just Rs. 5 across the country and this pricing
    initiative togetherwith improved distribution
    ensured that all brands in the portfolio grew
    leaps and bounds.

Pepsi vs Coke
Text message marketing came when Pepsi
incorporated the burgeoning technique into its global
marketing strategy.
SMS and MMS marketing is set to play a more
prominent role in Pepsi's marketing as it attempts to
involve younger consumers with its brand through
mobile phone promotions.
The push in Australia and in South-East Asia came as
Pepsi reported its highest response rate to a
promotion - more than 10 per cent - with its current
iPod every hour promotion, which has generated
more than 5,00,000 entries from 4.5 million packs.
The promotion, which involves players sending a text
message to enter a draw giving away a free iPod
every hour, was created by Sydney's Communicator.
It will now be used in other markets in South-East
The fit between SMS and Pepsi's target consumers -
the biggest users of the medium - is a natural one.
Australia has 15 million mobile phones and one of
the highest penetration rates in the world among
younger consumers.
An English and a South American agency were
appointed at the same time as Communicator to
develop programs for their respective markets,
Europe and Latin America. Each region learns from
the others and SMS will be included in the Pepsi
marketing "tool kit" for the next financial year.
Globally, sales of carbonated soft drinks have been
flat as consumers turn to bottled water and sport
drinks. In Australia, PepsiCo will spend about $25
million on marketing this year, with about $8 million
in media advertising. It has about 10 per cent share
of the $1.6 billion carbonated soft drink market,
compared to Coca-Cola Amtil’s 60 per cent.

Among other industries Manufacturing, Agricultural,
Automotive, Chemical, Hotel, Banking Business Services, Real
estate, Tourism and information Technology greatly
contributed to the development of beverage industry. But no
such industry that has been holding onto its share of the
market since its inception note in the USA - its birthplace -
but all across the globe as well as the Beverage Industry. It
has introduced icons that very few are oblivious to.
 These bottlers buy syrup, mix it with carbonated water, and
distribute it to retailers in their area. The number of retailers
who sell Coke to the public almost exceeds counting. In this
way a company with a magic formula but limited capital
spread its name around the country and eventually around
the globe. The organizational formula for merchandising
apparently also had a bit of magic. But, of course, the product
was one that people wanted, which is perhaps the first law of
success in marketing. Coke had been successful in
establishing a strong loyal consumer force, on which it still
relies to this very day. Dong business was no sweat once the
industry had set itself for good and the consumer’s tasted
veered. Everything seemed to go smooth enough until hell
finally broke loose. Trouble started creeping into the very
foundations of coke who stated loosing a major share of its
market. Thanks to Pepsi.
 Pepsi started gaining ground and proved to be an excellent
example of how razzle-dazzle advertising sharp marketing
and an efficient distribution system can turn a loser in to a
winner in a remarkably short period of time.
Countries like Pakistan today have a very competitive
beverages market. Opportunities for this industry to establish
itself firmly in this country were grim at first because of the
country's low per capita income and because of the business'
status depending on consumer impetus. But much of it was
more or less the same when the business took a start in the
USA as well. The Beverage industry has undergone a
revolutionary change during the last couple of decades. The
form of processing and the machinery used these days has
developed and is very sophisticated. Automatic and
computerized plants have been installed in the industry thus
making it an industry which is dealing in million of gallons of
beverages yearly.
 Market expansion, in fact, seems to be the buzzword these
days in the beverage industry. Analysts believe the potential
market in Pakistan is though to be enormous because the
country's per capita consumption is as low as 14 bottles per
year. Compare this with a 120 bottles per year in the
Philippines, and the scope for expansion becomes more than
            Research n development

""We're always going to the consumers and verifying
we've gone the right way."

VALHALLA — Opokua Kwapong, Pepsi-Cola's vice
president of worldwide innovation and non-
carbonated product development, prefers drinking
sugar-free beverages. But she doesn't subject her
taste on Pepsi-Cola drinkers.

Kwapong works at Pepsi-Cola Research and
Development Center, where Purchase-based Pepsi-
Cola develops and tests its beverages.

Inside these buildings, computerized laboratories
develop a "chemical fingerprint" of beverages so that
they can be easily replicated; scientists, in
conjunction with their marketing counterparts at
Purchase, concoct the next generation of Pepsi
products; a small-scale bottling system conducts test
bottling runs of new products; and consumers offer
important feedback to Pepsi-Cola researchers.

Pepsi-Cola keeps a database of specialized tasters,
local people who can accurately differentiate sweet,
sour, salty and bitter tastes, and can pick out
subtleties in flavoring

That gives us a real ability to screen through ideas
very quickly

Pepsi-Cola turned to consumers when it wanted to
develop a new Mountain Dew flavor for this summer.

One test they perform is called a triangle test:
tasters are given three samples, two of them the
same. The tasters, who are offered crackers and
water between tastings, are asked to identify which
one is different.

This advanced testing laboratory gives Pepsi-Cola
the ability to test prospective products quickly,
inexpensively and in a controlled setting.

Since the Pepsi-Cola Research and Development
Center also develops international beverages, it
sometimes has to take its testing on the road, which
it did for a new beverage it's developing for China.

Initially, the research and development center took a
shot at a beverage it thought that Chinese
consumers would enjoy, but it fell flat, Kwapong
says. So, it took the beverage to San Francisco,
which has a large Chinese population. Then it took it
to Shanghai, where Pepsi-Cola hired translators so
its researchers could probe Chinese consumers.

When Pepsi-Cola was testing a new Slice for India, it
turned to New York City's Indian population.
When it developed Aquas Frescas, a Hispanic-
targeted juice product, it found its target market
wanted the product to have sediment.

This intensive testing gives Pepsi-Cola the insight it
needs to relate to its consumers.

PepsiCo has put together a research and
development operation to drive several of its
initiatives, including new packaging, flavours, and

"We have a robust set of plans for our beverage
brands and the investment is significant," PepsiCo
India's Executive Director for Marketing, Ms Punita
Lal, told Business Line.

Besides the carbonated soft drink (CSD) category,
PepsiCo is focusing on its evolving portfolio of juices,
water, and sports drinks such as Gatorade, Ms Lal

The Rs 7,000-crore CSD market in India is largely
split between PepsiCo and Coca-Cola.

Analysts said that both the cola giants will soon
launch more fruit-based and health drinks to cater to
customers who are increasingly moving away from
carbonated drinks.

Analysts said that while the non-carbonated drinks in
India are growing at 30-35 per cent, the carbonated
drinks are growing at four per cent.
For PepsiCo, the biggest challenge is to grow its in-
home consumption, which is lagging the out-of-home

New flavours

She added that the company plans to roll out new
flavours and now has an R&D set-up in place for this
purpose. PepsiCo's brands such as 7up, Leher Slice,
and Mountain Dew, have been relaunched and
television commercials have been put in place for
these launches.

Coca-Cola´s commitment to research and

 Coca-Cola is committed to maintaining its leadership
position in R&D for the beverage industry. Coca-Cola
will continue to focus its R&D strategy on
maintaining its industry leadership position and
continuing to deliver value to the consumers of our
products. The value proposition to the consumers is
the key driver of Coca-Cola´s R&D strategy because
it is also the fundamental goal of the entire

The core R&D has not changed significantly at Coca-
Cola over the past few years. It continues to be
driven by the consumer value proposition. The
implementation of the strategy has been modified
 recently to allow more freedom to our local operating
 divisions. Therefore, there is now more R&D work
 being performed in the local markets to address
 consumer needs in each individual market where
 Coca-Cola products are available -- currently over
 200 countries worldwide.

 Coca-Cola licenses technology both in and out.

 Coca-Cola does not outsource R&D, but it does work
 jointly with development partners in many
 technology areas. joint developments allow Coca-
 Cola to leverage its beverage expertise in connection
 with certain technology areas key to their business,
 such as packaging and vending equipment.
 Historically, these joint developments have led to the
 development and commercialization of breakthrough
 technologies for the beverage industry. the
 advantages to a joint technology development is
 similar to how they view their marketing
 partnerships, such as those with Disney and Harry
 Potter. The overall result is that the joint
 development is something that is greater than the
 sum of its parts.


  During 2000, the two companies turned in a
  remarkably similar set of financial results.
 Coca-Cola generated $20.5 billion in sales; PepsiCo
   did $20.4 billion in sales.
 Coca-Cola earned $2.2 billion in net profits; PepsiCo
   also earned $2.2 billion in net profits.
 Coca-Cola generated free cash flow of $2.9 billion;
  PepsiCo- $2.9 billion in free cash flow.

  Criteria            Coca-Cola      PepsiCo
 Sales Growth              2.8%       12.0%
 Gross Margin            69.6%        61.1%
 Net Margin               10.6%       10.7%
 Cash-to-Debt              0.33%       0.55%
 Thus, PepsiCo is either tied or has the edge over
 Coke in        every category except for gross
     PepsiCo is growing sales four times faster than
     PepsiCo has a better ratio of cash versus debt
 "Though Pepsi may be number two in soft drinks, the
 company is the clear leader in salty snack products.
 Indeed, Frito-Lay, PepsiCo's snack-food division,
 owns 40% of the market for salty snacks worldwide
 and is more than seven times the size of its next-
 largest competitor."


 So on one side we have Coca-Cola composed of the
 world's leading beverage business, and on the other
 side we have PepsiCo with a strong number-two
 global beverage business and the world's leading
 salty-snack business as well. Again, these companies
 have almost identical profit margins, yet look at the
 valuation disparity:
 Price and Valuation    Coca-Cola PepsiCo
 Share Price              $44.52         $43.25
Market Cap                  $111.1B        $64.0B
2000 Sales                  $20.5B         $20.4B
2000 Free Cash Flow        $2.9B          $2.9B
Coca-Cola has a market cap almost twice as high as
Pepsi's. Similarly, Coca-Cola sells at a price-to-free
cash flow ratio of almost twice Pepsi's
(Part of the disparity in the above analysis is due to
the fact that Coca-Cola's reported profits in 2000
were held down by a number of unusual
restructuring charges, inventory write-offs, and a
litigation settlement. Looking at forward earnings
estimates adds some clarity to the situation).

               The Cola War

Over a Century of Cola Slogans, Commercials,
Blunders, and Coups

 Commercials and soft drinks have become a part of
everyday life in America. The combination of these
pop-culture creations has made resisting the
temptation of sugar based carbonated beverages
virtually impossible for most. A well-known soft drink
war between Pepsi and Coca-Cola keeps new, edgy
advertising techniques airing during commercial
breaks of popular television viewing. Both companies
have successfully sold their products despite
different selling techniques used when it comes to
advertising on television. The Pepsi Cola Corporation
uses excellent marketing strategies, such as
celebrity appearances, to sell their product, whereas
Coca-Cola’s realistic approach has placed them at
the top of the soft drink industry. Not only do these
competitive companies use television advertising to
sale their beverages, but they also attract their
consumers with their distinctive product packaging.
    Even though the Pepsi Corporation has proven to
increase their sales four times as fast as their
competitor[s], statistics have shown that Coca-Cola
has been the leading seller of soft drinks for the past
few years.
      According to an editorial written by Matt Richey
discussing the financial results of these companies
throughout the year of 2000, “Coca-Cola generated
$20.5 billion in sales; PepsiCo did $20.4 billion in
sales” and the results were similar in the year 2001
as well. However, Pepsi’s quickly increasing sales are
a result of their television advertising featuring
recognizable faces in the entertainment industry.
    Celebrity endorsements are a way in which Pepsi
attracts their customers. Memorable commercials
starring famous personalities such as Faith Hill, Jeff
Gordon, Halle Berry, Cindy Crawford, and adorable
child star Hallie Eisenburg catch the attention of
women and men, both young and old. According to, “Pepsi was the first consumer product to
use a celebrity endorser when Barney Oldfield, auto
racing pioneer, appear[ed] in ads in 1909”, and
famous faces have appeared in ads ever since.
    One of Pepsi’s newest commercials titled, “Now
and Then” shows pop-princess Britney Spears
singing the phrase, “Pepsi, for those who think
young”. With a wink of Britney’s eye, the problem of
appealing to people both young and old is solved
simply by, “show[ing] Britney in the ‘60s and the
’00s and give[ing] the generations something to
bond over.” The sequential segments of this
commercial are a brief review of the Pepsi
    This advertisement begins in the year 1958 and
chronologically shows Britney fashionably wearing
decadal clothes and singing alternate versions of the
Pepsi song in a new year. The commercial ends with
Britney dancing in the parking lot of a Pepsi diner in
the year 2002 singing the words, “Come feel the joy
all around, each generation has found, they’ve got
their own kind of sound, it‘s time to shout it out…”.
According to Roy B. White in his article titled Why it‘s
Cool to Troll Through Time, “Ad experts say
consumers like the idea of products that weather the
times. There‘s a certain comfort zone there.” Pepsi
Cola uses this commercial to relate their product to a
diverse audience by incorporating an icon in the
music industry today, with a variety of generations,
and conveying the message that everyone benefits
from the “joy of Pepsi”.
    In spite of this, Coca-Cola portrays real-to-life
scenarios in their television advertising instead of
celebrity influence. According to, “A
company spokesperson [for Coca-Cola] said it
tended to use more generic and timeless themes
rather than individuals or pop groups in its
campaigns”. An example of Coca-Cola’s attempt to
entice their potential consumers is a commercial
aired in the spring of 2001. Six weeks before their
high school graduation, five teenagers rest on a
subway train after an exciting night at a concert. A
young man observes his sleeping friends while
holding a can of Coca-Cola firmly in one hand and
narrates, “…It hit me that, it was the best night of
my life. And I kind of wished we could all stay on
that train forever.” A soothing woman’s voice then
sings in the background, “Life tastes good, Coca-
Cola” as the camera directs the viewer’s attention
not at the teenagers, but to a moving subway train
and the name Coca-Cola in the lower right hand
corner of the screen.
    This commercial relates to men and women of all
ages and generates an emotion that everyone has
experienced at least one time in their life. Even
though a consumer may not have been in the given
situation, they will reminisce about a prior event that
affected them the same way the boy in the
advertisement felt. Coca-Cola uses this technique as
an, “…invitation to consumers throughout the world
to enjoy Coca-Cola and life’s simple pleasures”
(“Highlights). Professor Jack Solomon describes this
procedure by writing in his essay Masters of Desire:
The Culture of American Advertising, “…advertisers
work on the deepest, most coercive human emotions
of all.” (144). Coca-Cola’s goal is to make their
customers think of their product and this commercial
whenever they are reminded of a sentimental and
enjoyable event.
    Despite the different advertising methods used
by both Pepsi and Coca-Cola, both companies want
their audience to buy their beverages; therefore they
suggest the idea that by drinking their product the
older consumers will feel youthful again. Pepsi
conveys this message by the lyrics Britney Spears
sings at the beginning of their commercial, “The
lively crowd, today agrees, those who think young
say ‘Pepsi please’…” This advertisement “reinforces
Pepsi’s youthful image while being adorable,
fascinating and fun from its dated b&w [black and
white] beginning to its charming, winking end.”
Coca-Cola also attempts to make their audience feel
young by depicting a sentimental situation between
teenage friends. Bob Garfield wrote, “…the stories
have to strike some universal chord, some bit of
humanity,” (41). The real life setting of Coke’s
commercial will subconsciously allow the audience to
reminisce about a past event and associate their
memory with the brand name Coca-Cola.
    Other than the above technique, Pepsi and Coca-
Cola’s commercials obviously seem to differ from
each other, yet both companies successfully attract
consumers to their product. proclaims
that, “…consumers’ cola choice is clear. In more than
30 markets currently conducting the Pepsi Challenge,
the taste of Pepsi and Pepsi One are preferred over
Coke products in every market…” Since both
companies have used profitable tactics in their
commercial advertising, this has eventually leaded to
the well known and highly publicized “Cola War”
began by Pepsi in 1975. In that year, the Pepsi
Corporation faced the competition by creating the
Pepsi Challenge, a national taste test sponsored by
Pepsi developed to investigate which beverage
consumers preferred between Pepsi and Coca-Cola
(Pepsi). Throughout the years, Pepsi has made it
known to the public that according to the Pepsi
Challenge taste-testers, they are the favored product
among the American public. Ironically, Coca-Cola has
almost always beaten Pepsi with profit from sells,
although according to columnist Matt Richey, Coca-
Cola has an advantage over their competitors based
on one key factor, the price of their product.
    Although the price of the products differs by
approximately 60 cents per two-liter (BBC News),
the carbonated beverages sold are remarkably
similar to each other. “It’s bubbly, brown sugar
water with a little cola-nut extract…” explains Bob
Garfield. The Pepsi Cola Corporation markets
beverages such as Pepsi, Diet Pepsi, Wild Cherry
Pepsi, and their new addition Pepsi Twist, whereas
Coca-Cola sells drinks such as Coca-Cola, Diet Coke,
Cherry Coke, and Lemon Coke. These products are
virtually the same, despite the color, product
attractiveness, visibility, display quality, and the
brand name printed on the label.
    The label printed to identify Pepsi seen
nationwide has become, “a universal symbol for one
Pepsi family…” (Pepsi). describes their
upbeat look as, “a three-dimensional globe against
an ice blue background.” Within the globe-shape is
an arrangement of the patriotic colors red, white and
blue, which was first used in the year 1941 to
support war efforts during World War II (Pepsi). In
big, bold, white, capital letters is the name Pepsi,
vertically written on the can. The slightly slanted
name draws consumers to the top of the can,
tempting the potential buyers to drink their product.
    Coca-cola’s approach to attract customers using
their label is a deep red color engulfing the entire
can with slanted, cursive writing spelling out the
name Coca-Cola. The word Coca-Cola is written
diagonally to lure people to the crisp, refreshing
taste of Coke. Seen behind the bold white name is
the top of a classic Coca-Cola bottle with the brown
soda spilling over the edges. The word “enjoy” is
written under the beverage name, a slogan Coca-
Cola began in the year 2000, which simply persuades
the consumers to not only enjoy life but enjoy their
product as well (“Highlights”). The cursive name and
the vintage Coke bottle represent the “classic”
approach Coca-Cola uses to attract their customers,
opposed to Pepsi’s upbeat and energetic new look.
     Even though Pepsi and Coca-Cola use a diverse
marketing strategy to persuade people into
purchasing their products, both companies have
successfully publicized their drinks. As a result they
have become the two leading soft drink brands in the
nation. The competition between Pepsi and Coke will
not only prolong the greatly known cola wars, but
will also allow new advertising techniques to be aired
on television. Pepsi uses excellent marketing
strategies, such as celebrity appearances and
contemporary product packaging, to sell their
product, whereas Coca-Cola’s realistic approach has
placed them at the top of the soft drink industry.
Although Pepsi is “simply irresistible”, according to
the soda loving customers, it is “always Coca-Cola,


It's clear in looking at the slogans over the years
that Coke and Pepsi have very different targeting
strategies. Coke is touting itself as the original, the
authentic, and appealing to a sense of tradition,
positioning itself as an integral part of daily American
life. Pepsi, on the other hand, is promoting itself as
something new, young, and hip, which seems a little
odd after over 100 years. But Coke was first, after
all. Pepsi has always targeted the youth market
more aggressively than Coke.

1886 - Drink Coca-Cola
1904 - Coca-Cola Satisfies
1904 - Delicious and Refreshing
1905 - Coca-Cola Revives and Sustains
1905 - Good All the Way Down
1906 - The Drink of Quality
1906 - The Great National Temperance
1907 - Delicious Coca-Cola, Sustains, Refreshes,
1907 - Cooling . . . Refreshing . . . Delicious
1908 - Sparkling - Harmless as Water, and Crisp as
1909 - Delicious, Wholesome, Refreshing
1910 - It Satisfies
1910 - Quenches Thirst as Nothing Else Can
1911 - It's Time to Drink Coca-Cola
1911 - Real Satisfaction in Every Glass
1912 - Demand the Genuine - Refuse Substitutes
1913 - The Best Beverage Under the Sun
1913 - A Welcome Addition to Any Party - Anytime -
1914 - Exhilarating, Refreshing
1914 - Demand the Genuine by Full Name
1914 - Pure and Wholesome
1916 - Just One Glass Will Tell You
1917 - Three Million A Day
1919 - Quality Tells the Difference
1920 - Drink Coca-Cola with Soda
1922 - Thirst Knows No Season
1922 - Thirst Can't Be Denied
1922 - Thirst Reminds You - Drink Coca-Cola
1923 - Refresh Yourself
1924 - Pause and Refresh Yourself
1925 - Six Million A Day
1925 - The Sociable Drink
1926 - Stop at the Red Sign
1927 - Around the Corner from Anywhere
1928 - A Pure Drink of Natural Flavors
1929 - The Pause that Refreshes
1930 - Meet Me At the Soda Fountain
1932 - Ice-Cold Sunshine
1933 - Don't Wear a Tired, Thirsty Face
1934 - Carry a Smile Back to Work
1935 - All Trails Lead to Ice-Cold Coca-Cola
1936 - What Refreshment Ought to Be
1936 - The Refreshing Thing to Do
1937 - America's Favorite Moment
1937 - So Easy to Serve and So Inexpensive
1938 - The Best Friend Thirst Ever Had
1938 - Pure Sunlight
1938 - Anytime is the Right Time to Pause and
1939 - Coca-Cola Goes Along
1939 - Make Lunch Time Refreshment Time
1939 - Makes Travel More Pleasant
1939 - The Drink Everybody Knows
1939 - Thirst Stops Here
1940 - Bring in Your Thirst and Go Away Without It
1941 - Completely Refreshing
1942 - Refreshment That Can't Be Duplicated
1942 - Whoever You Are, Whatever You Do,
Wherever You May Be, When You Think of
Refreshment, Think of Ice-Cold Coca-Cola.
1943 - The Only Thing like Coca-Cola is Coca-Cola
Itself. It's the Real Thing
1943 - A Taste All Its Own
1943 - That Extra Something
1944 - How About a Coke
1945 - Passport to Refreshment
1945 - Whenever You Hear "Have a Coke," You Hear
the Voice of America
1947 - Coke Knows No Season
1947 - Serving Coca-Cola Serves Hospitality
1948 - Where There's Coke, There's Hospitality
1949 - Coca-Cola . . . Along the Highway to
1950 - Help Yourself to Refreshment
1951 - Good Food and Coca-Cola Just Naturally Go
1952 - What You Want Is a Coke
1953 - Dependable as Sunrise
1954 - For People on the Go
1955 - America's Preferred Taste
1956 - Coca-Cola - Making Good Things Taste Better
1956 - Feel the Difference
1957 - Sign of a Good Taste
1958 - The Cold, Crisp Taste of Coke
1959 - Be Really Refreshed Listen to Connie Francis
1960 - Relax With Coke
1961 - Coke and Food - Refreshing New Feeling
1962 - Coca-Cola Refreshes You Best
1963 - Things Go Better With Coke Listen to the
Kingston Trio
1965 - Something More Than a Soft Drink
1966 - Coke . . . After Coke . . . After Coke
1970 - Its the Real Thing Listen to the Carpenters
1971 - I'd like to Buy the World a Coke
1974 - Look Up, America Listen
1976 - Coke Adds Life
1979 - Have a Coke and a Smile
1982 - Coke Is It!
1984 - Just For the Taste of It (Diet Coke)
1985 - Just For the Free of It (Caffeine Free Coke)
1985 - We've got a Taste for You (New Coke)
1985 - America's Real Choice (Coca-Cola Classic)
1986 - Catch the Wave (New Coke)
1986 - Red, White and You (Coca-Cola Classic)
1987 - You Can't Beat the Real Thing
1989 - Can't Beat the Feeling
1990 - Can't Beat the Real Thing
1993 - Always Coca-Cola
1993 - Taste it All

1903   -   Exhilarating, Invigorating, Aids Digestion
1907   -   Original Pure Food Drink
1909   -   Delicious and Healthful
1915   -   For All Thirsts - Pepsi-Cola
1919   -   Pepsi-Cola - It Makes You Scintillate
1920   -   Drink Pepsi Cola. It will satisfy you.
1928   -   Peps You Up!
1932   -   Sparkling, Delicious
1934   -   Refreshing and Healthful
1939   -   Twice As Much For A Nickel Too
1943   -   Bigger Drink, Better Taste
1949   -   Why take less when Pepsi's best?
1950   -   More Bounce to the Ounce
1950   -   The Light Refreshment
1954   -   Refreshing Without Filling
1958   -   Be Sociable, have a Pepsi
1961   -   Now It's Pepsi, For Those Who Think Young
1963   -   Come Alive! You're In the Pepsi Generation
1967   -   Taste That Beats the Others Cold
1967   -   Pepsi Pours It On
1969 - You've Got a Lot to Live and Pepsi's Got a Lot
to Give
1973 - Join the Pepsi People Feelin' Free
1975 - Have a Pepsi Day
1978 - Catch That Pepsi Spirit
1981 - Pepsi's Got Your Taste For Life!
1983 - Pepsi Now!
1984 - Pepsi, the Choice of a New Generation
1992 - Gotta Have It
1993 - Be Young, Have Fun, Drink Pepsi
1995 - Nothing else is a Pepsi
1999 - The Joy of Cola

Recent developments

The recent controversies have surrounded the cola
The boycott is back. This time, however, Pepsi is a
member of the black-hat club. In 2002, a cluster of
Arab organizations asked Muslims to shun goods
from America, seen as an enemy of Islam and a
supporter of Israel. Coca Cola which is associated
closely with America suffered seriously from these

After the re discovery of pesticides in the soft drinks
the faith of the consumers have been shattered in
the Cola Giants, so at this stage what step or
strategy Some claim Coke is less popular in India
due to suspicions regarding the health standards of
the drink. However, marketshare data does not back
this view. Specifically, in 2005, Coca-Cola India's
market share was 60.9%.

Pepsi has retaliated by coming out with a bunch of
Bringing their chief officials in an advertisement also
showing their production process and claiming their
drinks to be as healthy as possible.

Coming out with a series of INDIA CENTERED ads
with taglines like “hoohaa India “ and “THE BLUE

The comparative market analysis of the two
major softdrink manufacturers PEPSI AND
COCACOLA has helped us understand the
different strategies and tactics used by a
company to gain profits and expand its
We hope anyone reading this project will find it

We would like to thank Prof. Biju kuruvilla for
giving us this wonderful opportunity to study
the real life applications of the theory of
Marketing.This experience will benefit us in
the future.

Thank you.

  Marketing management by Philip kotler




  editorial team



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