Coke Pepsi rivalry

Coke vs. Pepsi Presented by Anil Kumar PGPIMC-01

Development of Indian soft drink market
Coke had entered in 1970s but exit after few years due to change in Govt. policies.
Market was ruled by local players till 1990s. They are Campa Cola, Thumps Up, Gold Spot and Limca etc.
Coke and Pepsi entered in 1991 after liberalization.
Market was under the control of local players.
Coke re-entered in 1993 and merged with Parle which has 60% market share in software market.

Later in 1999, Coke acquired Cadbury Schwepps and other soft drink brand.
Pepsi took the more capital intensive route of owning and running its own bottling plant.
Pepsi leads because it targeted Youth while Coke not.

Advertising strategies of Coke and Pepsi
Both known for global advertisement wars.
Both formulated their advertising plan on the basis of insiders they put inside the offices of each other.
PEPSI relied on advertisements featuring film stars, pop stars and cricket players. COKE initially focused on Indian culture and music.

Spoof Advertisements
When Coke bagged the official sponsorship rights to the 1997 World Cup, Pepsi launched a campaign ‘nothing official about it’ against Coke.
Against Coke’s ‘EAT-SLEEP-DRINK’, Pepsi made an ad opposite to it.
To counter this, Coke made a print ad in which it shows ‘chalo kha liya’.
Another Coke ad showed 2 apes copying Pepsi’s Azhar and Jadeja with the time ‘ don’t be a bunder’, taste the thunder.
Coke launched Sprite and made an ad ‘baki all bakwaas’ which clearly targeted Pepsi.

Against Pepsi’s ‘ Sachin ala re’, Coke responded with the song ‘Coke ala re’. Pepsi moved to AAAI against Coke.
At that time endorsement of celebrities and cricketers were at peak.
Pepsi issued a notice against Coke for using ‘Yeh Dil Maange More’ phrase used in the commercial.

Cola wars apart from Advertising
Both have their insiders in each other’s offices who reported to their respective heads on a daily basis.
Pepsi filed a petition against Coke alleging that Coke had ‘entered into conspiracy’ to disrupt its business operations.
Recruiting of employees at higher rates by Coke.
‘ Pressure of breaking contracts’ by Coke.
Frequent complaints from both the players about their bottlers and retailers being hijacked.
Painting of rival outlets overnight.

Ethical issues
Espionage against each other’s offices.
Making fun of cricketers by Coke.
Coke used punchline of Pepsi ‘yeh dil maange more’.
Shiftment of employees from Pepsi to Coke.
Hijacking bottlers and retailers.
Painting of retail outlets of each other’s overnight.

Future of Cola wars
Companies will concentrate more on Advertising.
Events and exhibitions will be on high.
Companies would take unethical steps in future.
Pricing strategies will be reconsidered.
Companies may widen their portfolio to capture mass market.

Thank You

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Coke Pepsi rivalry

by Anil Kumar on May 24, 2008

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Coke Pepsi rivalry — Presentation Transcript