22Marketing Mix M ar ke t i n g Mi x is the se t of marke ting tools that th efirm uses to pursue its marke ting obje ctive s. Marke tingmix h as a classification for the se marke tin g tools. Thesemarke ting are classifie d an d calle d as the F ou r Ps i.e .Produ ct, Price, Place an d Promotion. The most basic marke tin g tool is produ ct wh ich in clu de sprodu ct design, qu ality, fe atu re s, brandin g, an d packaging. A critical marke ting tool is price i.e. the amoun t ofmoney th at custome rs pay for the produ ct. It also in clu de sdiscoun ts, allowan ce s, cre dit te rms and pay me nt pe riod. Place is an othe r ke y marke ting mix tool. And it in clu de sv ariou s activ itie s the compan y u nde rtakes to make th eprodu ct accessible and av ailable to the custome r. Somefactors th at de cide the place are transport facilities,ch anne ls of distribu tion, cove rage are a, e tc. Promotion is the fou rth marke tin g mix tool whichinclu de s all the activitie s th at the company u ndertakes tocommun icate and promote its produ ct to targe t market.Promotion in clude s sale s promotion, adve rtising, sale sforce, pu blic relation s, dire ct marke ting, e tc.ProductIn marke tin g, a produ ct is an y th ing th at can be offe re d toa marke t th at migh t satisfy a wan t or nee d. It is of twotypes: Tangible (physical) and Intangible (non-physical).Sin ce se rv ices h ave be en at the fore front of all modernmarke ting strategie s, some in tan gibility has be comeesse ntial part of marke tin g offe rs. It is the refore th ecomple te bun dle of be nefits or satisfactions th at buye rspe rce ive the y will obtain if they pu rch ase the produ ct. It isthe su m of all phy sical, psy ch ological, sy mbolic, an dse rv ice attribu te s, n ot ju st the phy sical me rch an dise . Allprodu cts offere d in a marke t can be place d be twee nTangible (Pure Product) and Intangible (Pure S erv ice )spe ctru m.A produ ct is similar to goods. In accoun tin g, goods arephy sical obje cts th at are av ailable in the marketplace. Th isdiffe ren tiate s the m from a se rv ice, wh ich is a n on- materialprodu ct. The te rm goods is used primarily by th ose th atwish to abstract from the de tails of a given produ ct. As
23such it is use fu l in accou ntin g an d e con omic models. Th eterm produ ct is used primarily by th ose th at wish toe xamine the de tails an d rich ne ss of a spe cific marke toffe ring. As su ch it is u se fu l to marke te rs, man agers, an dquality con trol spe cialists.A se rv ice is a n on- material or in tangible product - su ch asprofession al con su ltan cy , se rv ing, or an e n tertain me n te xpe rien ce.Coke - ProductThe Coca-Cola formula is The Coca- Cola Company s se cre tre cipe for Coca- Cola. As a pu blicity marke ting strategystarte d by Robe rt W. W oodruff, the compan y presen ts th eformu la as one of the most close ly he ld trade se cre ts eve rand on ly a fe w e mployee s kn ow or h ave access to. Th isCoca- Cola formula appe ars to be the origin al formu la toCoca- Cola. It is from the book “ F or G od, Coun try an dCoca- Cola” .
24The compan y Coca- cola is a mu ltin ation al an d it is n otlimited to one produ ct. Th rou gh the ye ars they h av einven te d and in trodu ced man y produ cts th an th eir maincola drin ks. The list of Coca- cola bran ds are as follows: 1. Appletiser 36. Le mon & Pae roa 2. Aquarius 37. Lift 3. BPM Energy 38. Lift plus 4. Barqs 39. Lilt 5. Beat soda 40. Manzana Lift 6. Beverly 41. Mare Rosso 7. Cannings 42. Mello Yello 8. Cheers 43. Mezzo Mix 9. Ciel 44. M in u te M aid 10. Coca- Cola Black 45. Ne ste a Cherry Vanilla 46. Ne w Coke 11. Coca- Cola Blak 47. Nordic Mist 12. Coca- Cola C2 48. OK Soda 13. Coca- Cola Che rry 49. Pibb Xtra 14. Coca- Cola Citra 50. Powerade 15. Coca- Cola M5 51. Qoo 16. Coca- Cola Ze ro 52. Raspbe rry Coke 17. Coca- Cola 53. Re lentle ss 18. Coca- Cola with 54. Sarsi Lemon 55. Se n zao 19. Coca- Cola with 56. Simply Orange Lime 57. Smart 20. Dasani 58. S parkle 21. De laware Punch 59. S prite 22. Die t Coke 60. S prite Ice 23. Fanta 61. S prite Re mix 24. Fanta Citrus 62. S prite Ze ro 25. Fiorav anti 63. Surge 26. Fresca 64. Swerve 27. Frisco 65. Tab 28. Fruitopia 66. Tab Cle ar 29. Fru tonic 67. Tab Ene rgy 30. Full Throttle 68. Tab X- Tra 31. Georgia 69. Tiky 32. Hi-C 70. Vault 33. Hit 34. Kia-O ra 35. Kinley
25Pepsi - ProductThe Pe psi- Cola drin k con tain s basic in gredien ts foun d inmost othe r similar drinks in clu ding carbon ated wate r, h ighfru ctose corn sy ru p, sugar, colorings, ph osph oric acid,caffeine, citric acid and natural flav ors. The caffeine fre ePepsi- Cola con tain s the same in gre dien ts bu t n o caffe ine.S ome of the differen t an d v arie d brands of Pe psi are asfollows: 1. All S port 18. Pe psi 2. Aquafina 19. Pe psi B lue 3. Caffe ine-F ree Pe psi 20. Pe psi Cappuccino 4. Cry stal Pe psi 21. Pe psi Max 5. Diet Pepsi 22. Pe psi O NE 6. Gatorade 23. Pe psi S amba 7. Izze 24. Pe psi Tarik 8. Jazz 25. Pe psi Twist 9. Josta 26. Prope l F itne ss 10. Kas W ate r 11. Manzanita S ol 27. Sierra Mist 12. Mirinda 28. Slice 13. Mountain Dew 29. S oBe 14. Mountain Dew AMP 30. Storm 15. Mountain Dew 31. Tee m LiveW ire 32. Tropican a 16. Mountain Dew MDX Products 17. Mug Root Bee r 33. Tropican a Twiste r
26Coke v/ Pepsi-Product sAs seen above both the companie s Coke and Pe psi have anumber of products. Many of the se products areinn ov ations bu t th ere are also many products wh ich arebrou gh t out just as a competitive produ ct for the othe rcompan ie s. S ome of the se produ cts th at are brou gh t in themarke t by both the compan ie s to compete again st eachothe r are as follows: Coke Pepsi The main dark cola drink of the Pepsi version of dark cola which is company which started the rivalry the major primary competitor to between these companies. Coke. Full Throttle is an energy AMP is an energy drink drink brand produce d by produ ce d an d distribu ted byThe Coca- Cola Company. It Pe psiCo u nder the M ou n tain debu ted in late 2004 in De w soft drink brand. N orth Ame rica.
27 Vault is a carbon ate d M oun tain De w M DX is anbeve rage th at was re le ase d energy drink manufacturedby The Coca- Cola Company an d distribu ted by Pe psiCo in June 2005. un de r the M oun tain De w brand. It was introduce d in 2005. Powerade is a sports drink G atorade is aby The Coca- Cola Company n on- carbon ate d sports drin kand currently number two in marke te d by Qu ake r O ats th e sports drink marke t Company, a division of worldwide. Pe psiCo. Origin ally made for ath le te s, it is n ow often con su me d as a sn ack beverage.S prite is a cle ar, le mon- lime 7 Up is a brand of a lemon-lime flav ored, n on- caffe in ate d flavored soft drink. soft drink, produce d by the Coca- Cola Compan y. It was in trodu ce d to the Un ite d S tate s in 1961.
28 Tropicana Products is an Minute Maid is a product Ame rican compan y base d in line of be verages, u su ally B raden ton, F lorida, US A, associate d with orange wh ich is one of the worlds ju ice, bu t n ow e xte nds to large st produce rs and soft drin ks of man y kin ds. marke te rs of orange ju ice. ItThe M inu te Maid compan y is h as been own ed by Pe psiCo, n ow owne d by Coca- Cola, Inc. since 1998. and is the worlds large stmarke te r of fru it ju ice s an d drinks. It is h eadqu artered in H ou ston, Te xas.Ne ste a is a bran d of ice d te a Lipton Origin al Iced Te a is a manu facture d an d re ady - to-drin k ice d te a distribu te d by the N estle bran d sold by Lipton companys beve rage th rough a worldwide de partmen t in the Un ite d partne rship with Pe psi.S tate s, an d by Coca- Cola inseve ral Eu ropean coun tries, B razil an d Vene zuela. B arqs is a brand of root Mug Root Beer is a brand name of bee r n otable for being the root beer made by the Pepsi on ly major N orth Ame rican company. root bee r to con taincaffeine. It has been bottled
29 sin ce the start of the 20thcen tu ry an d is cu rre n tly sold by the Coca- Cola Company.Die t Coke or Die t Coca-Cola Die t Pe psi is a low- calorie is a sugar-free soft drink carbon ated cola. It wasprodu ce d an d distribu te d by in trodu ce d in 1964 as a The Coca- Cola Company. It varian t of Pepsi- Cola withwas in trodu ce d in th e United no sugar. S tate s in Ju ly 1982.Kin ley is a bran d of still or Aquafina is a non-carbonatedcarbon ate d water owned by bottled water produced by PepsiCo. The Coca- Cola Company.Aquarius is a mineral sports All Sport was a sports drink. drink man ufactu re d by The It is produ ce d by Pe psiCo.Coca- Cola Compan y. It was first introduce d in 1983. F anta is a soft drink brand M irinda is a bran d of soft owned by The Coca-Cola drin k. M irinda is owne d by
30Compan y. It is produ ce d an d PepsiCo. distribu te d by The Coca- Cola Company s bottlers. Sprite Ice was the first Pepsi Blue is a soft drink made by flav or e xten sion for The PepsiCo and launched in mid-2002.Coca- Cola Company s S prite bran d soft drink. Coca- Cola B lak is a Pe psi Cappuccino is acoffee- flav ou re d soft drink cappuccino-flav oredin troduced by Coca- Cola in carbonate d soft drink 2006. produced by Pe psico. Maaza is a Coca- Cola fruit S lice is a line of drin k bran d marke te d in fru it- flav ore d soft drinks India and B anglade sh. manu factu re d by Pe psiCo an d in trodu ce d in 1984. Limca is a le mon an d lime Tee m was a
31 flav ou re d carbon ate d soft le mon- lime -flav ored soft drink made in India by drink produce d by The Coca- cola. Pe psi- Cola Company.Price In e con omics and busin ess, the price is the assigne dnu me rical mone tary v alue of a good, se rvice or asse t. Price is also ce n tral to marke ting whe re it is one of th efou r v ariable s in the marke ting mix th at busin ess pe opleuse to de velop a marke ting plan. Pricing is a big part of the marke tin g mix. Ch oosing th erigh t price an d the righ t pricing strate gy is cru cial to th emarke ting proce ss. The price of the produ ct is n ot some th ing th at is fixed.On the othe r h an d th e price of the produ ct depe nds onmany oth er factors. S ome time s the price of the produ cth as got n othing to do with the actu al produ ct itself. Th eprice may act as a way to attract targe t cu stome rs. The price of the produ ct is de cide d kee ping many th in gsin mind. The se things include factors like cost incurre d onthe produ ct, targe t marke t, compe titors, consu me r buy in gcapacity e tc.Coke - Price Coke was a company ru ling the marke ts be fore Pe psien te red. E arlie r the price of coke was cost base d i.e. itwas de cide d on the cost which was spen t on makin g th eprodu ct plu s th e profit an d oth er e xpen se s. Bu t afte r the e me rge n ce of other companie s e spe ciallythe like s of Pe psi, Coca-cola starte d with a pricin gstrategy base d on the basis of compe tition. N owaday smore e xpen se s are spe n t on advertising mysoft- drin k companie s rathe r th an onmanufacturing. Coke has brough t in a re volu tionespe cially in In dian marke ts with the Rs. 5pricin g strategy wh ich was ve ry famous. Itwas the first company to in troduce thesmall bottle of Coke for ju st Re. 5. Th is
32campaign was ve ry su cce ssful e spe cially with the priceconsciou s In dian consu mers. Even today most price s of Coke are de cided on the basisof th e compe tition in the marke t.Pepsi – Price Pepsi again de cides it price on the basis of compe tition .The be st th ink abou t the company Pe psi is th at it is ve ryfle xible an d it can come down with th e price ve ry qu ickly .The company is re n owned to brin g the price down eve n u pto half if nee ded. Bu t this risk taking attitude h as also e arne d Pe psilosse s. Th ou gh lowe rin g the price wou ld attract th ecustome rs bu t it wou ld n ot he lp the m cove r up the costincurre d in produ ction h en ce cau sing the m losses. This was th e situation e arlier bu t n ow Pe psi is afu ll- fledged and growing company. It h as cove re d all itslosse s and is now growing at a rapid rate.PlacePlace is a te rm th at h as a v arie ty of me an in gs in adiction ary sen se, bu t wh ich is prin cipally u se d in age ograph ic sen se as a n ou n to de n ote location, th ou gh ina se n se of a location iden tifie d with th at which is locate dthere.In marke tin g, place re fe rs to on e of the 4 Ps, define d as"the marke t place". It can me an a ge ograph ic location, anindustry, a grou p of pe ople (a se gmen t) to wh om acompany wants to sell its products or se rv ices, such asy oun g profe ssion al women (e. g. for sellin g cosme tics) ormiddle -age d family men (e.g. for sellin g family cars).Coke - PlaceCoke is a mu ltination al compan y and it h as its marke tarou nd the en tire world. Th is can be said just by the first
33page on its site which asks people to se le ct the place ofthe ir ch oice. The we bsite looks some th in g like th is:Pepsi – Place Pepsi again h as spre ad worldwide. Pepsi when en te rin ga ne w marke t does n ot go in alone bu t it looks forpartne rs an d merge rs. Till n ow Pe psi h as collaborated withcompan ie s like Qu ake r O ats, F rito- lay s, Lipton, S tarbu cks,e tc. Pe psi like Coke h as spre ad all ove r the world. It isbe cau se of th is worldwide spread th at n ow it is comin g u pwith Adv ertise men ts wh ich can be broadcaste d in th ediffe ren t n ation s in the world. The re cen t e xample withwould be the Pe psi adve rtise me n ts h av ing Dav id Be ckh amas it bran d ambassador.Promotion
34 Promotion is one of the four aspe cts of marketing.Promotion comprises fou r su bcategorie s: 1. Adve rtising 2. Person al sellin g 3. S ale s promotion 4. Publicity an d public re lation s The spe cification of these fou r v ariables cre ate s apromotion al mix or promotion al plan. A promotion al mixspe cifie s h ow mu ch atte n tion to pay to e ach of the fou rsubcategorie s, an d h ow mu ch mone y to bu dget for e ach. Apromotion al plan can h av e a wide range of obje ctives,inclu din g: sales in crease s, ne w produ ct acceptance ,cre ation of brand e qu ity, position in g, compe titiv ere taliation s, or cre ation of a corporate image. Both the compan ie s Pe psi and coke are famou s for the irpromotions. The riv alry was first starte d wh en Pe psistarte d with its blin d taste tests kn own as the Pe psiChallenge. The challenge is designe d to be a dire ctre spon se to critics wh o alle ge that Coca- Cola an dPepsi- Cola are iden tical drinks, with n o me an in gfu ldiffe ren ce s. The ch alle nge take s the form of a taste te st.At malls, shopping cen te rs an d othe r pu blic location s, aPepsi re prese n tative se ts u p a table with two blank cu ps,one con tain in g Pe psi and one with Coke. S h oppe rs areen cou rage d to taste both colas, an d then se le ct whichdrink th ey pre fe r. Then the re prese n tativ e reve als the twobottle s so th e taster can see whe the r th ey preferre d Cokeor Pe psi. If Pepsi is reve ale d, the shopper is given a smallprize. The implication is th at Pe psi taste s be tte r th an Coke,and thu s con su me rs should pu rch ase Pe psi. In blind taste te sts, more con su me rs prefe r the taste ofPepsi to th at of Coca- Cola. B ecause Coke was th eh istorical le ade r, more pe ople e xpe cte d that the yd pre fe rand se le ct Coke. Their su rprise at pickin g Pepsi in th eblin d taste te st (produ cts were se rve d in un marke d cups)he lpe d ch ange th eir min ds abou t which produ ct the ypre fer. Captu ring this on film, Pepsi tu rne d th is in to ame morable TV campaign th at lasted man y ye ars. Also ad- campaigns are pu t u p on the te lev ision by boththe playe rs. The following statistic ju st te lls of much ofshare of ads on TV are captured by the se playe rs.
35In fact in th e ne xt graph y ou can see h ow man y programsare spon sore d by cola companie s an d the le ader amon gthe m is Pe psi. Main ly Pe psi is the company sponsorin gmost cricke t te le casts h appen ing in In dia an d spen ds mostof its revenue in that field.
36N owaday s both Coke and Pe psi are going in for B ran dAmbassadors to promote the ir produ ct. The se bran dambassadors are famou s pe ople wh o u su ally pe ople idolizeand pe ople can re late to the m. Th e followin g pictu re s don ot nee d an y e xplan ation as pe ople are familiar with th ece le britie s an d can thu s qu ickly iden tify with the produ ct.A list of Cele britie s th at are brand ambassadors for th ecola companies are as follows. Th ese cele britie s are n otonly asked to work in th e adve rtise me n ts bu t the y alsoh ave to u se the produ ct promote d by the m an d the y sh ou ldn ot u se the compan ie s riv als prou cts.