Coke Pepsi rivalry

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Coke Pepsi rivalry

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Coke Pepsi rivalry

  1. 1. Coke vs. Pepsi Presented by Anil Kumar PGPIMC-01
  2. 2. Development of Indian soft drink market <ul><li>Coke had entered in 1970s but exit after few years due to change in Govt. policies. </li></ul><ul><li>Market was ruled by local players till 1990s. They are Campa Cola, Thumps Up, Gold Spot and Limca etc. </li></ul><ul><li>Coke and Pepsi entered in 1991 after liberalization. </li></ul><ul><li>Market was under the control of local players. </li></ul><ul><li>Coke re-entered in 1993 and merged with Parle which has 60% market share in software market. </li></ul>
  3. 3. <ul><li>Later in 1999, Coke acquired Cadbury Schwepps and other soft drink brand. </li></ul><ul><li>Pepsi took the more capital intensive route of owning and running its own bottling plant. </li></ul><ul><li>Pepsi leads because it targeted Youth while Coke not. </li></ul>
  4. 4. Advertising strategies of Coke and Pepsi <ul><li>Both known for global advertisement wars. </li></ul><ul><li>Both formulated their advertising plan on the basis of insiders they put inside the offices of each other. </li></ul><ul><li>PEPSI relied on advertisements featuring film stars, pop stars and cricket players. COKE initially focused on Indian culture and music. </li></ul>
  5. 5. Spoof Advertisements <ul><li>When Coke bagged the official sponsorship rights to the 1997 World Cup, Pepsi launched a campaign ‘nothing official about it’ against Coke. </li></ul><ul><li>Against Coke’s ‘EAT-SLEEP-DRINK’, Pepsi made an ad opposite to it. </li></ul><ul><li>To counter this, Coke made a print ad in which it shows ‘chalo kha liya’. </li></ul><ul><li>Another Coke ad showed 2 apes copying Pepsi’s Azhar and Jadeja with the time ‘ don’t be a bunder’, taste the thunder. </li></ul><ul><li>Coke launched Sprite and made an ad ‘baki all bakwaas’ which clearly targeted Pepsi. </li></ul>
  6. 6. <ul><li>Against Pepsi’s ‘ Sachin ala re’, Coke responded with the song ‘Coke ala re’. Pepsi moved to AAAI against Coke. </li></ul><ul><li>At that time endorsement of celebrities and cricketers were at peak. </li></ul><ul><li>Pepsi issued a notice against Coke for using ‘Yeh Dil Maange More’ phrase used in the commercial. </li></ul>
  7. 9. Cola wars apart from Advertising <ul><li>Both have their insiders in each other’s offices who reported to their respective heads on a daily basis. </li></ul><ul><li>Pepsi filed a petition against Coke alleging that Coke had ‘entered into conspiracy’ to disrupt its business operations. </li></ul><ul><li>Recruiting of employees at higher rates by Coke. </li></ul><ul><li>‘ Pressure of breaking contracts’ by Coke. </li></ul><ul><li>Frequent complaints from both the players about their bottlers and retailers being hijacked. </li></ul><ul><li>Painting of rival outlets overnight. </li></ul>
  8. 11. Ethical issues <ul><li>Espionage against each other’s offices. </li></ul><ul><li>Making fun of cricketers by Coke. </li></ul><ul><li>Coke used punchline of Pepsi ‘yeh dil maange more’. </li></ul><ul><li>Shiftment of employees from Pepsi to Coke. </li></ul><ul><li>Hijacking bottlers and retailers. </li></ul><ul><li>Painting of retail outlets of each other’s overnight. </li></ul>
  9. 12. Future of Cola wars <ul><li>Companies will concentrate more on Advertising. </li></ul><ul><li>Events and exhibitions will be on high. </li></ul><ul><li>Companies would take unethical steps in future. </li></ul><ul><li>Pricing strategies will be reconsidered. </li></ul><ul><li>Companies may widen their portfolio to capture mass market. </li></ul>
  10. 13. <ul><li>Thank You </li></ul>

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