Brand Rivalries: Pepsi Vs Coca- Cola-Cbse class 12 Entrepreneurship Project


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I assure you that this project of mine will fetch you a very good score. Attach the pictures provided towards the end of this project on the backside of the page which is adjacent to the relevant page. I have given certain instructions in the project, starting with the word 'Attn'; follow those and remove them before the submission.
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Brand Rivalries: Pepsi Vs Coca- Cola-Cbse class 12 Entrepreneurship Project

  2. 2. INDEXSL. TITLE SOURCE OF THE PAGE SIGN OF THENO. PROJECT NO. TEACHER 1 Acknowledgement - 2 Brand Rivalry An INTRODUCTION 3 Pepsi An Introduction 4 Pepsi the history 5 Products Of Pepsi 6 Coca-Cola An Introduction 7 Coca-Cola the history 8 Products Of Coca- Cola 9 Pepsi Vs Coca-Cola A Comparison10 Pepsi Vs Coca-Cola THE COLA WAR www.scribd.com11 Pepsi Vs Coca-Cola Which Cola brand is the Better Investment? -
  3. 3. 12 Pepsi Vs Coca-Cola PRESENCE IN INDIA13 Pepsi Vs Coca-Cola Marketing Pepsi Vs Coca-Cola Advertising Strategies15 Pepsi Vs Coca-Cola Conclusion -16 BIBLIOGRAPHY -
  4. 4. ACKNOWLEDGEMENT I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I thank my God for providing me with everything that I required in completing this project.I am highly indebted to the Teacher in Charge Mr. James Thomas for his guidance and constant supervision as well as for providing necessaryinformation regarding the project & also for his support in completing the project.I would like to express my gratitude towards my parents for their kind co-operation and encouragement which helped me in the completion of this project. I would like to express my special gratitude and thanks to industry persons for giving me such attention and time.My thanks and appreciations also go to my classmates in developing the project and to the people who have willingly helped me out with their abilities.
  5. 5. BRAND RIVALRY An INTRODUCTIONA brand is a name, term, sign, symbol, or design which is intendedto identify the goods or services of one seller or group of sellersand to differentiate them from those of competitors.Products and services have become so alike that they fail todistinguish themselves by their quality, efficacy, reliability,assurance and care. Brands add emotion and trust to these productsand services, thus providing clues that simplify consumers‘ choice.These added emotions and trust help create a relationship betweenbrands and consumers, which ensures consumers‘ loyalty to thebrands. Brands create inspirational lifestyles based on theseconsumer relationships. Associating oneself with a brand transfersthese lifestyles onto consumersBranding is more than just a business buzz word. It has become thecrux of selling in the new economy. If the old marketing mantrawas, ―Nothing happens until somebody sells something‖, the newphilosophy could be ―Nothing happens until somebody brandssomething."In its simplest form, a brand is a noun. It is the name attached to aproduct or service. However, upon close inspection, a brandrepresents many more intangible aspects of a product or service: acollection of feelings and perceptions about quality, image, lifestyleand status. It creates in the mind of customers and prospects theperception that there is no product or service on the market that isquite like yours. In short, a brand offers the customer a guaranteeand then delivers on it.Creating a strong brand identity will build mind share one of thestrongest competitive advantages imaginable. As a result, customerswill think of your business first when they think of your productcategory. For example, when you think of tissues, more likely thannot, you think of the Kleenex brand. And when youre looking fortape to wrap a present, Scotch is the brand that springs to mind.Likewise, when your child wants a hamburger, he will often say hewants to go to McDonald‘s. The reason behind these strong brand-
  6. 6. product associations is that these companies have built rock solidbrand identities.And since ‗brand‘ being such a powerful tool in the success of abusiness, it is not strange that we see though competition betweenbrands offering similar kind of goods or services. This is knownBrand Rivalry.Brand rivalry is an extra aggressive in competition between twodifferent brands to reach at number one or to capture more marketshare. In the most aggressive variants, ethics, moral values and eventhe law can be neglected and it is only a race to reach the numberone position which drives the brand.The main reason for brand rivalry is that the companies are tryingto get more customers and to increase their market. The aim of thebattle is to get the customer to buy your product and not the productof the competitor.There are two types of customers: Active and Passive. Activecustomers know what they want. And passive ones, on the contrary,have no idea of what they want and think for a long time about whatproduct to buy. So, the second group – passive customers – is thebone of contention, the object of fighting in brand wars. Thus,companies are trying to get their customers by many methods. Thesemethods are: improving the quality of goods, then lowering pricesand offering discounts, and using advertising, of course. The brandwars often take the form of price wars. It‘s when to competingcompanies are lowering prices more and more until they reach thelevel of their costs and they just get no profit. Price wars are goodfor customers but bad for companies as they decrease their profits.So, it‘s better to use other methods when fighting in a brand war.In today‘s global scenario brand rivalry is not only aboutcompetitive advantage, but also being closer to customer, i.e. tohave superior customised customer connectivity and it is used forfighting between brands for the best position. It specifically impliesinter-brand completion by rival firms producing close substitutes(brands). This target at reducing the market share of the competitorfirm while advancing its own.
  7. 7. The aim of this project is to bring out two rival brands, go deepinto its formation, history and growth; then to analyse therivalry that exists between them and to understand thedifference between the strategies and tactics adopted by each ofthemIn this project we will be comparing the rival brands PEPSI & COCA-COLA.
  8. 8. PEPSI AN INTRODUCTIONPepsi is a carbonated soft drink that is produced and manufacturedby PepsiCo. Created and developed in 1898 and introduced as"Brads Drink", it was later renamed as Pepsi -Cola onJune 16, 1903, then to Pepsi in 1961.It is one of the most well known brands in the world today availablein over 160 countries. It has an extremely positive outlook forIndia. This reflects that India holds a central position in Pepsiscorporate strategy.India is a key market for Pepsi co, and at the same time thecompany has added value to Indian agriculture and industry.PepsiCo entered India in 1989 and is concentrating in three focusareas- Soft drink concentrate, snack foods and vegetable and foodprocessing.Faced with the existing policy framework at the time, the companyentered the Indian market through a joint venture with Volta‘s andPunjab Agro Industries. With the introduction of the liberalizationpolicies since 1991, Pepsi took complete control of its operations.The government has approved more than US$ 400 million worth ofinvestments of which over US$ 330 million have already flow n in.One of PepsiCos key strategies was to develop a co mpletely localmanagement team.Pepsi has 19 company owned factories while their Indian bottlingpartners own 21. The company has set up 8 Greenfield sites inbackward regions of different states. P epsiCo intends to expand itsoperations and is planning an investment of approximately US$ 150million in the next two-three years.
  9. 9. PEPSI The historyPepsi was originally named "Brads Drink", after its creator, CalebBradham, a pharmacist in New Bern, North Carolina. It was createdin the summer of 1893 and was later renamed Pepsi Cola in 1898,possibly due the digestive enzyme pepsin and kola nuts used in therecipe. Bradham sought to create a fountain drink that was deliciousand would aid in digestion and boost energyIn 1903, Bradham moved the bottling of Pepsi -Cola from hisdrugstore into a rented warehouse. That year, Bradham sold 7,968gallons of syrup. The next year, Pepsi was sold in six -ounce bottles,and sales increased to 19,848 gallons. In 1926, Pepsi received itsfirst logo redesign since the original design of 1905. In 1929, thelogo was changed again. In 1929, automobile race pioneer BarneyOldfield endorsed Pepsi-Cola in newspaper ads as "A bullydrink...refreshing, invigorating, a fine bracer before a race".BankruptcyIn 1931, the Pepsi-Cola Company went bankrupt during the GreatDepression- in large part due to financial losses incurred byspeculating on wildly fluctuating sugar prices as a result of WorldWar I. Assets were sold and Roy C. Megargel bought the Pepsitrademark. Eight years later, the company went bankrupt again.Pepsis assets were then purchased by Charles Guth, the President ofLoft Inc. Loft was a candy manufacturer with retail stores thatcontained soda fountains. He sought to replace Coca-Cola at hisstores fountains after Coke refused to give him a discount on syrup.Guth then had Lofts chemists reformulate the Pepsi-Cola syrupformula.Pepsi Cola TrademarkThe original trademark application for Pepsi -Cola was filed onSeptember 23, 1902 with registration approved on June 16, 1903. In
  10. 10. the applications statement, Caleb Bradham describes the tradema rkas an "arbitrary hyphenated word "PEPSI -COLA", and indicatedthat the mark was in continuous use for his business since August 1,1901. The Pepsi-Colas description is a flavoring -syrup for sodawater. The trademark expired on April 15, 1994.A second Pepsi-Cola trademark is on record with the USPTO. Theapplication date submitted by Caleb Bradham for the secondtrademark is Saturday, April 15, 1905 with the successfulregistration date of April 15, 1906, over three years after theoriginal date. Curiously, in this application, Caleb Bradham statesthat the trademark had been continuously used in h is business "andthose from whom title is derived since in the 1905 application thedescription submitted to the USPTO was for a tonic beverage. Thefederal status for the 1905 trademark is registered and renewed andis owned by PepsiCo, Inc. of Purchase.RiseDuring the Great Depression, Pepsi gained popularity following theintroduction in 1936 of a 12 -ounce bottle. Initially priced at 10cents, sales were slow, but when the price was slashed to five cents,sales increased substantially. With a rad io advertising campaignfeaturing the jingle "Pepsi cola hits the spot / Twelve full ounces,thats a lot / Twice as much for a nickel, too / Pepsi-Cola is thedrink for you," Pepsi encouraged price -watching consumers toswitch, obliquely referring to the Coca -Cola standard of six ouncesa bottle for the price of five cents (a nickel), instead of the 12ounces Pepsi sold at the same price. Coming at a time of economiccrisis, the campaign succeeded in boosting Pepsis status. In 1936alone 500,000,000 bottles of Pepsi were consumed. From 1936 to1938, Pepsi-Colas profits doubled.Pepsis success under Guth came while the Loft Candy business wasfaltering. Since he had initially used Lofts finances and facilities toestablish the new Pepsi success, the near -bankrupt Loft Companysued Guth for possession of the Pepsi-Cola company. A long legalbattle, Guth v. Loft, then ensued, with the case reaching theDelaware Supreme Court and ultimately ending in a loss for Guth.
  11. 11. Niche MarketingWalter Mack was named the new President of Pepsi -Cola andguided the company through the 1940s. Mack, who supportedprogressive causes, noticed that the companys strategy of usingadvertising for a general audience either ignored Americans or usedethnic stereotypes in portraying blacks. He realized AfricanAmericans were an untapped niche market and that Pepsi stood togain market share by targeting its advertising directly towardsthem. To this end, he hired Hennan Smith, advertising executive"from the Negro newspaper field" to lead an all-black sales team,which had to be cut due to the onset of World War II. In 1947,Mack resumed his efforts, hiring Edward F. Boyd to lead a twelve-man team. They came up with advertising portraying blackAmericans in a positive light, such as one with a smiling motherholding a six pack of Pepsi while her son (a young Ron Brown, whogrew up to be Secretary of Commerce) reaches up for one.Another ad campaign, titled "Leaders in Their Fields", profiledtwenty prominent African Americans such as Nobel PeacePrize winner Ralph and photographer Gordon Parks.Boyd also led a sales team composed entirely of blacks around thecountry to promote Pepsi. Racial segregation and laws were still inplace throughout much of the U.S.; Boyds team faced a great dealof discrimination as a result, from insults by Pepsi co-workers tothreats by the Ku Klux Klan. On the other hand, it was able touse racism as a selling point, attack ing Cokes reluctance to hireblacks and support by the chairman of Coke for segregationistGovernor Herman Talmadge. As a result, Pepsis market share ascompared to Cokes shot up dramatically. After the sales teamvisited Chicago, Pepsis share in the city overtook that of Coke forthe first time.This focus on the market for black people caused someconsternation within the company and among its affiliates. It didnot want to seem focused on black customers forfear white customers would be pushed away. In a meeting atthe Waldorf-Astoria Hotel, Mack tried to assuage the 500 bottlers in
  12. 12. attendance by pandering to them, saying: "We dont want it tobecome known as a nigger drink." After Mack left the company in1950, support for the black sales team faded and it was cut.Current SituationPepsiCo, Inc. is one of the most successful consumer productscompanies in the world, with 2000 revenues of over $20 billion and125,000 employees. The company consists of: Frito -Lay Company,the largest manufacturer and distributor of snack chips; Pepsi -ColaCompany, the second largest soft drink business and TropicanaProducts, the largest marketer and producer of branded juice.PepsiCo brands are among the best known and most respected in theworld and are available in about 190 countries and territories.
  13. 13. PRODUCTS OF PEPSIPepsiPepsi is a carbonated soft drink that is produced and manufacturedby PepsiCo. Created and developed in 1898 and introduced as"Brads Drink", it was later renamed as Pepsi-Cola onJune 16, 1903, then to Pepsi in 1961.It is one of the most wellknown brands in the world today available in over 160 countries.MirindaMirinda is a brand of soft drink originally created in Spain,but with global distribution. The word Mirinda means"admirable, wonderful" in Esperanto. It is available in fruitvarieties includingorange, grapefruit, apple, strawberry, raspberry, pineapple,pomegranate, banana, lemon, hibiscus, Guarana, tangerine,and grape flavours as well as Tamarind. A "citrus" flavour isalso available in certain areas of the Middle East.Mountain DewMountain Dew s a carbonated soft drink brand produced andowned by PepsiCo. The original formula was invented in the1940s by Tennessee beverage bottlers Barney and AllyHartman and was first marketed in Marion,Virginia, Knoxville and Tennessee. The Mountain Dewbrand and production rights were acquired by the Pepsi -Colacompany in 1964, at which point its distribution expandedmore widely across the United States.7UP7UP is a brand of a lemon-lime flavored non-caffeinated softdrink. The rights to the brand are held by Dr Pepper SnappleGroup in the United States, and PepsiCo (or its licensees) in the restof the world.
  14. 14. COCA-COLA AN INTRODUCTIONCoca-Cola is a carbonated soft drink sold in stores, restaurants,and vending machines in more than 200 countries. It is producedby The Coca-Cola Company of Atlanta, Georgia, and is oftenreferred to simply as Coke. Originally intended as a patentmedicine when it was invented in the late 19th century by JohnPemberton, Coca-Cola was bought out by businessman Asa GriggsCandler, whose marketing tactics led Coke to its dominance of theworld soft-drink market throughout the 20th century.The company produces concentrate, which is then sold to licensedCoca-Cola bottlers throughout the world. The bottlers, who holdterritorially exclusive contracts with the company, produce finishedproduct in cans and bottles from the concentrate in combinationwith filtered water and sweeteners. The bottlers then sell, distributeand merchandise Coca-Cola to retail stores and vending machines.Such bottlers include Coca-Cola Enterprises, which is the largestsingle Coca-Cola bottler in North America and Western Europe. TheCoca-Cola Company also sells concentrate for soda fountains tomajor restaurants and food service distributors.The Coca-Cola Company has, on occasion, i ntroduced other coladrinks under the Coke brand name. The most common of theseis Diet Coke, with others including Caffeine-Free Coca-Cola, DietCoke Caffeine-Free, Coca-Cola Cherry, Zero, Coca, and specialversions with lemon, lime or coffee.Based on Interbrands best global brand 2011, Coca-Cola was theworlds most valuable brand.The Coca-Cola Company believes our business has always beenbased on the trust consumers everywhere place in us —trust that isearned by what we do as a corporate citizen and by our abi lity tolive our values as a commercial enterprise, there is much in ourworld to celebrate, refresh, strengthen and protect. Through ouractions as local citizens, we strive every day to refresh themarketplace, enrich the workplace, preserve the environm ent and
  15. 15. strengthen our communities. At the heart of our business is the trustconsumers place in us. They rightly expect that we are managingour business according to sound ethical principles, that we areenhancing the health of our communities, and that we are usingnatural resource responsible.The Coca Cola Company started operations in India in 1993 after anabsence of 16 years. To reach Indias 300 million soft -drinkconsumers, the company distributes its products through over700,000 retail outlets Coca Cola India directly employs over 7000workers. Over the past nine years, the company has invested overUS$ 827 million in India with over US$ 800 million in its bottlingsubsidiary. Significant growth has come from Kinley, its packagedwater brand, which claims to have around 35 per cent share of thepackaged drinking water marketIt is the worlds favourite drink. It is the worlds most valuablebrand and the most recognizable word across the world after ‗OK‘.Coca-Cola has a truly remarkable heritage .From a humble beginning in 1886, it is now the flagship brand ofthe largest manufacturer, marketer and distributor of non -alcoholicbeverages in the world.In India, Coca-Cola was the leading soft-drink till 1977 when govt.policies necessitated its departure. Coca-Cola made its return to thecountry in 1993 and made significant investments to ensure that thebeverage is available to more and more people, even in the remoteand inaccessible parts of the nation. Coke had entered the Indiansoft drinks market way back in the 1970s.The company was the market leader till 1977, when it had to exitthe country following policy changes regarding MNCs operating inIndia. Over the next few years, a host of local brands emerged suchas Campa Cola, Thumps Up, Gold Spot and Limca etc. However,with the entry of Pepsi and Coke in the 1990s, almost the entiremarket went under their control.
  16. 16. COCA-COLA the HISTORYThe first Coca-Cola recipe was invented in a drugstore inColumbus, Georgia by John Pemberton, originally as a coca winecalled Pembertons French Wine Coca in 1885. He may have beeninspired by the formidable success of Vin Mariani, a European cocawine.In 1886, when Atlanta and Fulton County passed prohibitionlegislation, Pemberton responded by developing Coca -Cola,essentially a non-alcoholic version of French Wine Cola . The firstsales were at Jacobs Pharmacy in Atlanta, Georgia, on May 8,1886. It was initially sold as a patent medicine for five cents a glassat soda fountains, which were popular in the United States at thetime due to the belief that carbonated water was good for the health.Pemberton claimed Coca-Cola cured many diseases, includingmorphine addiction, dyspepsia, neurasthenia, headache, andimpotence. Pemberton ran the first advertisement for the beverageon May 29 of the same year in the Atlanta Journal.By 1888, three versions of Coca-Cola—sold by three separatebusinesses—were on the market. Asa Griggs Candler acquired astake in Pembertons company in 1887 and incorporated it as theCoca Cola Company in 1888. The same year, while suffering froman ongoing addiction to morphine, Pemberton sold the rights asecond time to four more businessmen: J.C. Mayfield, A.O.Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile,Pembertons alcoholic son Charley Pemberton began selling his ownversion of the product.John Pemberton declared that the na me "Coca-Cola" belonged toCharley, but the other two manufacturers could continue to use theformula. So, in the summer of 1888, Candler sold his beverageunder the names Yum Yum and Koke.After both of them failed to catch on, Candler set out to establi sh alegal claim to Coca-Cola in late 1888, in order to force his twocompetitors out of the business. Candler purchased exclusive rights
  17. 17. to the formula from John Pemberton, Margaret Dozier and WoolfolkWalker. However, in 1914, Dozier came forward to claim hersignature on the bill of sale had been forged, and subsequentanalysis has indicated John Pembertons signature was most likely aforgery as well.In 1892 Candler incorporated a second company, The Coca-ColaCompany (the current corporation), and in 1910 Candler had theearliest records of the company burned, further obscuring its legalorigins. By the time of its 50th anniversary, the drink had reachedthe status of a national icon in the USA. In 1935, it was certifiedkosher by Rabbi Tobias Geffen, after the company made minorchanges in the sourcing of some ingredients.Coca-Cola was sold in bottles for the first time on March 12, 1894.The first outdoor wall advertisement was painted in the same yearas well in Georgia. The Cans of Coke first appeared in 1955. Thefirst bottling of Coca-Cola occurred in Vicksburg, Mississippi, atthe Biedenharn Candy Company in 1891 .Its proprietor was Joseph A. Biedenharn. The original bottles wereBiedenharn bottles, very different from the much later hobble -skirtdesign that is now so familiar. Asa Candler was tentative aboutbottling the drink, but two entrepreneurs from Chattan ooga,Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposedthe idea and were so persuasive that Candler signed a contractgiving them control of the procedure for only one dollar.Candler never collected his dollar, but in 1899 Chattanooga beca methe site of the first Coca-Cola bottling company. The loosely termedcontract proved to be problematic for the company for decades tocome. Legal matters were not helped by the decision of the bottlersto subcontract to other companies, effectively beco ming parentbottlers.Twentieth Century LandmarksBy the time of its 50th anniversary, the soft drink had reached thestatus of a national icon in the USA. In 1935, it was
  18. 18. certified kosher by Atlanta Rabbi Tobias Geffen, after the companymade minor changes in the sourcing of some ingredients.The longest running commercial Coca -Cola soda fountain anywherewas Atlantas Fleemans Pharmacy, which first opened its doors in1914. Jack Fleeman took over the pharmacy from his father and ranit till 1995; closing it after 81 years.On July 12, 1944, the one-billionth gallon of Coca-Cola syrup wasmanufactured by The Coca-Cola Company. The Cans of Coke firstappeared in 1955.New CokeOn April 23, 1985, Coca-Cola, amid much publicity, attempted tochange the formula of the drink with "New Coke". Follow -up tastetests revealed that most consumers preferred the taste of New Coketo both Coke and Pepsi, but Coca-Cola management was unpreparedfor the publics nostalgia for the old drink, leading to a backlash.The company gave in to protests and returned to a variation of theold formula, with high-fructose replacing cane sugar, under thename Coca-Cola Classic on July 10, 1985.Twenty-first CenturyOn February 7, 2005, the Coca-Cola Company announced that in thesecond quarter of 2005 they planned to launch a Diet Coke productsweetened with the artificial sweetener sucralose ("Splenda"), thesame sweetener currently used in Pepsi One. On March 21, 2005, itannounced another diet product, Coca-Cola Zero, sweetened partlywith a blend of Aspartame and Acesulfame potassium. In 2007,Coca-Cola began to sell a new "healthy soda": Diet Coke withvitamins B6, B12, Magnesium, Niacin , and zinc, marketed as "DietCoke Plus."On July 5, 2005, it was revealed that Coca -Cola would resumeoperations in Iraq for the first time since the Arab League boycottedthe company in 1968.
  19. 19. In April 2007, in Canada, the name "Coca -Cola Classic" waschanged back to "Coca-Cola." The word "Classic" was truncatedbecause "New Coke" was no longer in production, eliminating theneed to differentiate between the two. The formula remainedunchanged.In January 2009, Coca-Cola stopped printing the word "Classic" onthe labels of 16-ounce bottles sold in parts of the southeasternUnited States. The change is part of a larger strategy to rejuvenatethe products image.In November 2009, due to a dispute over wholesale prices of Coca -Cola products, Costco stopped restocking its shelves with Coke andDiet Coke.
  20. 20. PRODUCTS OF COCA-COLACoca-ColaCoca-Cola is a carbonated soft drink sold in stores, restaurants,and vending machines in more than 200 countries. It is producedby The Coca-Cola Company of Atlanta, Georgia, and is oftenreferred to simply as Coke.Thumps-upThumps Up is a brand of cola in India. It was introduced in 1977 tooffset the expulsion of The Coca-Cola Company from India. Thebrand was bought out by Coca-Cola who re-launched it in order tocompete against Pepsi.SpriteSprite is a transparent, lemon-lime flavoured, caffeine-free softdrink, produced by the Coca-Cola Company. It was introduced inthe United States in 1961. This was Cokes response to thepopularity of 7 UP. It comes in a primarily silver, green, and bluecan or a green transparent bottle with a primarily green and bluelabel.FantaFanta is a global brand of fruit-flavoured carbonated drinks fromthe Coca-Cola Company. There are over 100 flavours worldwide.The drink debuted in Nazi Germany in 1941 and originally soldonly in Europe.MaazaMaaza is a Coca-Cola fruit drink brand marketed in India andBangladesh, the most popular drink being the mango variety somuch that over the years, the Maaza brand has become synonymouswith Mango.Coca-Cola has also launched Maaza in orange andpineapple variants.
  21. 21. PEPSI VS COCA-COLA A ComparisonTasteCoca-Cola is the original cola, while there isnt a huge differencein taste; Pepsi mirrored their cola after Cokes, being justdifferent enough in taste to not actually be the same drink.SimilaritiesPepsi-Cola and Coca Cola Classic are both carbonated colabeverages.SweetnessPepsi tastes sweeter than Coca-Cola, This is the reason whymany prefer Pepsi over Coca-Cola in a blind test but may preferCoke when drinking an entire can.CarbonationCoca-Cola has more carbonation than Pepsi depending on wh atregion you are in. It was said that depending on where each onewas made the amount of carbonation in them will be differenttherefore proving that neither Coca -Cola nor Pepsi have morecarbonation.
  22. 22. PEPSI VS COCA-COLA THE COLA WARThe Cola Wars are a campaign of mutually-targeted televisionadvertisements and marketing campaigns since the 1980s to presentbetween soft drink manufacturers Coca-Cola Company and PepsiCoIncorporated. According to Consumer Reports, in the 1970 s, therivalry continued to heat up the market. Pepsi conducted blind tastetests in stores, in what was called the " Pepsi Challenge".These tests suggested that more consumers preferred the taste ofPepsi (which is believed to have more lemon oil, less orange oil,and uses vanillin rather than vanilla) to Coke. The sales of Pepsistarted to climb, and Pepsi kicked off the "Challenge" across thenation. This became known as the " Cola Wars."In 1985, The Coca-Cola Company, amid much publicity, changed itsformula. The theory has been advanced that New Coke, as thereformulated drink came to be known, was invented specifically inresponse to the Pepsi Challenge. However, a consumer backlash ledto Coca-Cola quickly introducing a modified version of the originalformula (removing the expensive Haitian lime oil and changing thesweetener to corn syrup) as Coke "Classic".The Beginning1975 heralded the ‗Pepsi Challenge‘, a landmark marketingstrategy, which convinced millions of consumers that the taste ofPepsi was superior to Coke. Simultaneously, Pepsi Light, with adistinctive lemon taste, was introduced as an alternative totraditional diet colas.In 1983 Coke launched aspartame/saccharin blend Diet Coke. Inresponse in 1989 Pepsi-Cola introduced an exciting new flavor,Wild Cherry Pepsi. Thus Diet Pepsis The Other Challengecampaign was based around a 54 -46% lead over Diet Coke inindependently researched taste tests in Australia.
  23. 23. It was only in 1996 that Pepsi unveiled a revolutionary blue lookworldwide to transform the image and attitude of one of theworlds best-known brands. Pepsi Blue represents a quantum leapinto the future and redefines how the Cola Wars will be fought andwon in the 21st Century.CompetitionMany of the brands available from the three largest soda producers,The Coca-Cola Company and PepsiCo are intended as direct,equivalent competitors. The following chart lists these competitorsby type or flavour of drink.Flavour/Type PepsiCo The Coca- Cola CompanyCola Pepsi Coca-ColaDiet Cola Diet Pepsi / Pepsi Diet Coke / Coca- Light, Cola Light, Pepsi ONE, Tab, Pepsi Max Coca-Cola ZeroCherry-flavoured cola Pepsi Wild Cherry Coca-Cola Cherry"Pepper"-style Dr Slice Mr. Pibb / Pibb XtraOrange Mirinda, Fanta, Tropicana Twister, Minute Maid Tango, SliceLemon-lime Teem, Sprite, Sierra Mist, Lemon & Paeroa 7 Up (in countries other than US)
  24. 24. Flavour/Type PepsiCo The Coca- Cola companyRoot beer Mug Root Beer Barqs Ramblin Root BeerCream soda Mug Cream Soda Barqs Red Creme SodaJuices Tropicana, Minute Maid, Dole Fruitopia, Simply OrangeIced tea Lipton, Nestea, Brisk Gold Peak TeaSports drinks Gatorade, PowerAde, Propel Aquarius, Vitamin WaterEnergy drinks AMP Full Throttle, NOS, Relentless, MonsterMineral Waters Aquafina Kinley, DasaniMarketing CampaignsCoca-Cola and Pepsi-Cola focused particularly on pop stars;notable soft drink promoters included Mariah Carey, KISS, TinaTurner, Britney Spears, David Bowie, Rod Stewart, JimVarney, Elvis Presley, Michael Jackson, Madonna, and RayCharles (for Pepsi) and Whitney Houston, Paula Abdul, Weird Al
  25. 25. Yankovic, George Michael, Christina Aguilera, Max Headroom,and Elton John (for Coca-Cola).Coca-ColaOne example of a heated exchange that occurred during the Cola Wars wasCoca-Cola making a strategic retreat on July 11, 1985, by announcing its plansto bring back the original Classic Coke after recently introducing New Coke.PepsiPepsi ads often focused on celebrities choosing Pepsi over Coke,supporting Pepsis positioning as "The Choice of a NewGeneration." Pepsi generation was created focusing on the user ofthe drink, never the drink. Coke always focused on the drink. Pepsifocused on the person using it. They showed people riding dirtbikes, waterskiing, or kite flying, hang gliding — doing differentthings. And at the end of it there would always be a Pepsi as areward.This all happened when color television was first coming in. Theywere the first company to do lifestyle marketing. The first and thelongest-running lifestyle campaign were and still is Pepsi. In 1975,Pepsi began showing people doing blind taste tests called PepsiChallenge in which they preferred one product over the other, andthen they began hiring more and more popular spokespersons topromote their products. In their hope to win the Cola Wars aConcorde was painted blue with PEPSI written across it in whitelettering. In the late 1990s, Pepsi launched its most successful long -term strategy of the Cola Wars, Pepsi Stuff. Consumers were invitedto "Drink Pepsi, Get Stuff" and collect Pepsi Points on billions ofpackages and cups. They could redeem the points for free Pepsilifestyle merchandise. After researching and testing the program forover two years to ensure that it resonated with consumers, Pepsilaunched Pepsi Stuff, which was an instant success. Tens ofmillions of consumers participated. Pepsi outperformed Coke duringthe summer of the Atlanta Olympics - held in Cokes hometown -where Coke was a lead sponsor of the Games.Due to its success, the program was expanded to include MountainDew, and into Pepsis international markets worldwide. Thecompany continued to run the program for many years, continuallyinnovating with new features each year.
  26. 26. The Pepsi Stuff promotion became the subject of a lawsuit. In oneof the many commercials, Pepsi showed a young man in the cockpitof a Harrier Jump Jet. Below ran the caption "Harrier Jet: 7 millionPepsi Points." There was a mechanism for buying additional PepsiPoints to complete a Pepsi Stuff order. John Leonard, of Seattle,Washington, sent in a Pepsi Stuff request with the maximum amountof points and a check for over $700,000US to make up for the extrapoints he needed. Pepsi did not accept the request and Leonard file dsuit. The judgment was that a reasonable person viewing thecommercial would realize that Pepsi was not, in fact, offering aHarrier Jet. In response to the suit, Pepsi added the words "JustKidding" under the portion of the commercial featuring the jet aswell as changing the "price" to 700 million Pepsi pointsCoca-Cola and Pepsi engaged in a " cyber-war" with the re-introduction of Pepsi Stuff in 2005 & Coca -Cola retaliated withCoke Rewards. This cola war has now concluded, with Pepsi Stuffending its services and Coke Rewards still offering prizes on theirwebsite. Both were loyalty programs that give away prizes andproduct to consumers after collecting bottle caps and 12 or 24 packbox tops, then submitting codes online for a certain number ofpoints. However, Pepsis online partnership with Amazon allowedconsumers to buy various products with their "Pepsi Points", suchas mp3 downloads. Both Coca-Cola and Pepsi previously had apartnership with the iTunes Store.In SpaceIn 1985, Coca-Cola and Pepsi were launched into space aboardthe Space Shuttle Challenger onSTS-51-F. The companies haddesigned special cans (officially the Carbonated BeverageDispenser Evaluation payload or CBDE) to test packaging anddispensing techniques for use in zero G conditions. The experimentwas classified a failure by the shuttle crew, primarily due to thelack of both refrigeration and gravity.The "Coca-Cola Space Dispenser" (Fluids Generic Bio -processingApparatus-1, or FGBA-1) was designed to provide astronauts theopportunity to enjoy Coca-Cola and Diet Coke in the weightlessenvironment of space, and to "provide baseline data on changes inastronauts taste perception of beverages consumed inmicrogravity." It held 1.65 liters each of Coca -Cola and Diet Coke.An astronaut would dispense the carbonated drink of choice into a"Fluids Transfer Unit" or sealed drinking cup through a quickconnect on the dispenser. To save power, the dispenser would chill
  27. 27. the liquid on demand via cooling coils between the storagecontainer and the quick connect fitting. The FGBA -1 and 18 of the"Fluid Transfer Units" flew aboard the Space Shuttle Discovery in1995. (STS-63)Further development led to a Coca -Cola fountain dispenser (FluidsGeneric Bio-processing Apparatus-2 or FGBA-2) intended as "a testbed to determine if carbonated beverages can be produce d fromseparately stored carbon dioxide, water and flavored syrups anddetermine if the resulting fluids can be made available forconsumption without bubble nucleation and resulting foamformation". This unit dispensed PowerAde sports drink in additionto Coca-Cola and Diet Coke. This unit flew on STS-77 aboard Space Shuttle Endeavour in 1996. Unfortunately, theFGBA-2 did not work as expected.Second Cola WarDuring the 1990s, a "second cola war" was reported in the UnitedKingdom. This time it was due to the launch of Virgin Cola, as wellas Sainsburys store brand Classic Cola, which, unlike most storebrand colas, was designed to look like a top product worthy ofcompetition. For a few years both colas were competitive withCoca-Cola and Pepsi; at one point Coca -Cola even sued Sainsburysclaiming the design of the Classic Cola can was too similar toCokes. However, today, both Virgin and Cla ssic Cola are farbehind the two major brands.The high-publicity marketing also continued into the 1990s. In1997, the Spice Girls (then at their peak) signed a multi -millionpound sponsorship deal with Pepsi. They starred inthree Pepsi commercials; released two limited edition singles withPepsi, "Move Over" and "Step to me"; featured on Pepsi packaging;and performed two live concerts in Istanbul organized andsponsored by the company.Cola Wars todayPepsi’s New Strategy: Better-For-You Products In 2007, Indra Nooyi became the fifth CEO in PepsiCos 44 -yearhistory, and the game completely changed. A former management
  28. 28. consultant, she decided not to duke it out directly with Coke.Instead, she‘s trying to redefine the playing field...U.S. Consumption of carbonated soft drinks has steadily declined inthe past decade.Part of that comes down to the array of alternative beverages themarket now offers. Part of it comes down to health concerns in anation with an obesity problem.But rather than buck the trend, Ms. Nooyi seeks to refocus Pepsi.―Lifestyles have changed,‖ she notes, ―And we have to modify ourproducts.‖In that spirit, she‘s focusing the company more on water, juices,teas and sports drinks.Pepsi‘s top brands in those areas include A quafina and Gatorade.And while it trails in soft drink sales, it leads the world in ready -to-drink teas through Lipton, while its Tropicana wins out injuices/nectars.The company is betting big on creating healthy foods through itsQuaker Oats, Gatorade and Tropicana divisions. And it just beganthe Global Nutrition Group to deliver breakthrough products.Nooyi says the new Group ―is part of our long -term strategy to growour nutrition business from about $10 billion in revenues today to$30 billion by 2020.To further that goal, Pepsi hired several well -known nutritionists todirect its efforts at reducing fat, sodium and sugar in its products.Already, Lay‘s potato chips have 25% less sodium… and by 2011,they‘ll be made from 100% natural ingredients.As Caroline Levy, a CLSA analyst, noted, ―PepsiCo is currentlyfocused on better-for-you‖ products.Coke’s Consistent Strategy Wins the Cola WarMeanwhile, Coca-Cola doesn‘t seem to care about what Pepsi hasaccepted. CEO Muhtar Kent not only continues to focus on sellingsoft drinks globally, but even vows to rebuild Coke sales in the And admittedly, Coke‘s beverage volume in North America dropped only 2% last year. 2009 was extremely difficult economically on top of a relatively cool summer.
  29. 29. In comparison, Pepsi‘s beverage volume in the same region plunged 8%.According to Beverage Digest, this makes Coca -Cola brand theuncontested U.S. heavyweight.Indeed, looking at all carbonated soft drinks, Coke brandscommanded 41.9% of the total market last year compared toPepsiCo‘s 29.9%.The same goes for the companies‘ flagship brands. Through 2009,Coca-Cola commanded 17% of the U.S. soft drink market; Pepsiheld only 9.9%. And while both brands have been declining, Pepsi isdoing so at a slightly faster rate.Pepsi Admits Defeat… Goes On New Health KickAs far as Pepsi is concerned, the cola wars are over. It now needs tofocus on convincing investors that it has the right focus in this newhealth kick.Currently, the Global Nutrition Group is little but a nice marketingtool. Will Pepsi really develop healthier foods and drinks while stillcoming up with new types of chips and soda flavours is a question.It recently reduced the top end of its guidance for earnings growt hthis year from 13% to 11%. This may be due to increasedinvestment in nutrition… or because of a difficult, competitiveglobal environment.Coke, among others, continues to steal market share away fromPepsi.Carbonated beverages still produce much of th e company‘s salesand for now, they‘re still key to Pepsi‘s future health.
  30. 30. PEPSI VS COCA-COLA Which Cola brand is the Better Investment?A study found that 80 percent of people can differentiate a sampleof Coca-Cola from a sample of Pepsi. The same study found that ifyou give people three samples they can only accurately guess whichsamples are which 33 percent of the time. Th at‘s the same odds asrandomly guessing.Malcolm Gladwell called this the Triangle Problem in hisbook Blink: the Power of Thinking without Thinking . The idea isthat the two products are much more similar than they are different.Some people even theorize that the preferences than the actual soda.This same concept can be extrapolated to each company‘s respectivestock.Coke vs. Pepsi –DividendsBoth Pepsi and Coke are favorites of super investor Warren Buffett.That‘s because both stocks have had strong growth and both arecash cows when it comes to dividends.One interesting note not apparent in the above table above is thatCoca-Cola has raised its dividend in a slower, more consistentmanner. Pepsi, on the other hand, has significantly upped theirdividend distribution over the last few years. In 2004, Pepsi offered a quarterly dividend of 16 cents when Coke was offering a quarter. Coke has increased annual dividends for 49 years running. Pepsi also has a streak of increasing their annual dividend for 39 straight years. Coke‘s stock price has grown in value by over 50 percent since the beginning of 2009. Pepsi‘s stock has grown by about 40 percent in the same time.
  31. 31. In terms of market share, Coke owns the top two spots in the colaindustry – Coke and Diet Coke- with Pepsi‘s flagship cola comingin at third.Pepsi does have a slight advantage over Coke in diversification. Pepsi has snack food brands such as Frito -Lay and Quaker under its umbrella. They also own the brands that make beverages such as Gatorade, Tropicana and Naked Juices . While Coke hasn‘t tapped the snack food market, they do have some beverage diversification. Dasani bottled water, PowerAde and Minute Maid juices are all under Coca -Cola‘s umbrella.
  32. 32. PEPSI VS COCA-COLA PRESENCE IN INDIAPEPSIPepsiCo entered India in 1989 and has grown to become one of thecountry‘s leading food and beverage companies. One of the largestmultinational investors in the country, PepsiCo has established abusiness which aims to serve the long term dyna mic needs ofconsumers in India.PepsiCo India and its partners have invested more than U.S.$1billion since the company was established in the country. PepsiCoprovides direct and indirect employment to 150,000 peopleincluding suppliers and distributors.PepsiCo nourishes consumers with a range of products from treatsto healthy eats that deliver joy as well as nutrition and always, goodtaste. PepsiCo India‘s expansive portfolio includes iconicrefreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, inaddition to low calorie options such as Diet Pepsi, hydrating andnutritional beverages such as Aquafina drinking water, isotonicsports drinks - Gatorade, Tropicana100% fruit juices, and juicebased drinks – Tropicana Nectars, Tropicana Twister and Slice.Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangolaadd to the diverse range of brands.PepsiCo‘s foods company, Frito -Lay, is the leader in the brandedsalty snack market and all Frito Lay products are free of trans -fatand MSG. It manufactures Lay‘s Potato Chips; Cheetos extrudedsnacks, Uncle Chipps and traditional snacks under the Kurkure andLehar brands.The company‘s high fibre breakfast cereal, Quaker Oats, and low fatand roasted snack options enhance the healthf ul choices available toconsumers. Frito Lay‘s core products, Lay‘s, Kurkure, Uncle Chippsand Cheetos are cooked in Rice Bran Oil to significantly reduce
  33. 33. saturated fats and all of its products contain voluntary nutritionallabeling on their packets.The group has built an expansive beverage and foods business. Tosupport its operations, PepsiCo has 43 bottling plants in India, ofwhich 15 are company owned and 28 are franchisee owned. Inaddition to this, PepsiCo‘s Frito Lay foods division has 3 state -of-the-art plants. PepsiCo‘s business is based on its sustainabilityvision of making tomorrow better than today. PepsiCo‘scommitment to living by this vision every day is visible in itscontribution to the country, consumers and farmers.COCA-COLACoca-Cola, the corporation nourishing the global community withthe world‘s largest selling soft drink concentrates since 1886,returned to India in 1993 after a 16 year hiatus, giving new thumbsup to the Indian soft drink market. In the same year, the Companytook over ownership of the nation‘s top soft -drink brand andbottling network. It‘s no wonder our brands have assumed an iconicstatus in the minds of the world‘s consumersEver since, Coca-Cola India has made significant investments tobuild and continually consolidate its business in the country,including new production facilities, waste water treatment plants,distribution systems, and marketing channels.Coca-Cola India is among the country‘s top international investors,having invested more than US$ 1 billion in India in the first decade,and further pledged another US$100 million in 2003 for itsoperations.The Company has shaken up the Indian carbonated drinks marketgreatly, giving consumers the pleasure of world -class drinks to fillup their hydration, refreshment, and nutrition needs. It has alsobeen instrumental in giving an exponential growth to the country‘sjob listings.With virtually all the goods and services required to produce andmarket Coca-Cola being made in India, the business system of the
  34. 34. Company directly employs approximately 6,000 people, andindirectly creates employment for more than 125,000 people inrelated industries through its vast procurement, supply, anddistribution system.The Indian operations comprises of 50 bottling operations, 25owned by the Company, with another 25 being owned byfranchisees. Apart that, a network of 21 contract packersmanufactures a range of products for the Company.On the distribution front, 10 -tonne trucks – open bay three-wheelersthat can navigate the narrow alleyways of Indian cities – constantlykeep our brands available in every nook and corner of the country‘sremotest areas.
  35. 35. PEPSI VS COCA-COLA MarketingControl of market share is the key issue in this c ase study. Thesituation is both Coke and Pepsi are trying to gain market share inthis beverage market, which is valued at over $30 billion a year.Just how this is done in such a competitive market is the underlyingissue.The facts are that each company is coming up with new productsand ideas in order to increase their market share. The creativity andeffectiveness of each companys marketing strategy will ultimatelydetermine the winner with respect to sales, profits, and customerloyalty. Not only are these two companies constructing new ways tosell Coke and Pepsi, but they are also thinking of ways in which toincrease market share in other beverage categories. Although thegoal of both companies is exactly the same, th e two companies relyon somewhat different marketing strategies.Pepsi has always taken the lead in developing new products, butCoke soon learned their lesson and started to do the same. Cokehired marketing executives with good track records. Coke alsoimplemented cross training of managers so it would be moredifficult for cliques to form within the company.On the other hand, Pepsi has always taken more risks, acted rapidly,and was always developing new advertising ideas . Both companieshave also relied on finding new markets, especially in foreigncountries.In the foreign markets, Coke has been more successful than Pepsi.For example, in Eastern Europe, Pepsi has relied on a barter systemthat proved to fail. However, in certain countries that allo w directcomparison, Pepsi has beat Coke. In foreign markets, bothcompanies have followed the marketing concept by offeringproducts that meet consumer needs in order to gain market share.For instance, in certain countries, consumers wanted a soft drinkthat was low in sugar, yet did not have a diet taste or image. Pepsiresponded by developing Pepsi Max.
  36. 36. These companies in trying to capture market share have relied onthe development of new products. In some cases the products havebeen successful. However, at other times the new products havefailed. For Coke, changing their original formula and introducing itas ―New Coke‖ was a major failure . The new formula hurt Coke asconsumers requested Classic Cokes‘ return.Pepsi has also had its share of failu res. Some of their failuresincluded: Pepsi Light, Pepsi Free, Pepsi AM, and Crystal Pepsi. Onesolution to increasing market share is to carefully follow consumerwants in each country.The next step is to take fast action to develop a product that meetsthe requirements for that particular region. Both companies cannotjust sell one product; if they do they will not succeed. They have toalways be creating and updating their marketing plans and products.The companies must be willing to accommodate their ―targetmarkets‖.Gaining market share occurs when a company stays one -step aheadof the competition by knowing what the consumer wants. Myrecommendation is to make sure the company is always doingmarket research. This way they are able to get as much feedback aspossible from consumers.Next, analyze this data as fast as possible, and then develop the newproduct based upon this data. Once the product is developed, get itto the marketplace quickly where time is a very critical factor.
  37. 37. PEPSI VS COCA-COLA Advertising StrategiesPEPSIFor over 100 years, Pepsi-Cola has produced some of the finest softdrink ads available anywhere in the world. From todays "Joy ofPepsi," as sung by Britney Spears, to yesterdays "Nickel, Nicke l"(1939), our ads are as memorable as the products we produce.Some highlights of the Ads are givenbelow.1999: The new campaign highlights the popular soft drink that goeswith everything from food to fun.• Pepsis last major campaign change was in 1 999, when it debuted"The Joy of Cola," which became "The Joy of Pepsi" in 2000.• Pepsi updates its look with a bolder, more contemporary imagethat better captures the brands youthful attitude.• Mountain Dew offers its third line extension with Mount ain DewLiveWire, combining the unique citrus taste of Mountain Dew witha bold orange flavor.• Pepsis blockbuster summer promotion "Pepsi Play for a Billion"gives 1,000 consumers the chance to play for $1 billion on a livetelevision show on The WB. A guaranteed $1 million prizewinnerwill be chosen and will then have a chance to win $1 billion withoutforfeiting the $1 million prize.• In September, Richard Bay, a 42 -year-old high school teacherfrom Princeton, West Virginia, became a millionaire on "Pepsi Play
  38. 38. for a Billion" on The WB. Bay and the television audience then heldtheir collective breath to see if he would also win the billiondollars. Instead, his number was two digits off the billion -dollarnumber, but Bay was still pleased with his co ol million.2000: The popular Pepsi Challenge makes its return , and consumersacross the country let their taste decide the best cola and one -calorie cola. Helping launch the Challenge is two of baseballs topsluggers – Sammy Sosa and Ken Griffey Jr.• On the airwaves, the "Joy of Cola" campaign is a hit as "PepsiGirl" Hallie Eisenberg rocks with pop star Faith Hill and perennialrockers KISS.• Among those doing the Dew is hip -hop artist Busta Rhymes, andAquafina launches it‘s first-ever television advertising campaign.2001: The popular "Joy of Cola" tagline gets an update, becomingthe "Joy of Pepsi." Three months later, Britney Spears stars in ablockbuster Pepsi commercial that breaks during the AcademyAwards. An hour before the telecast, the high -energy spot debutsonline, where more than 2 million fans click their way to Britneysown version of the "Joy of Pepsi."Thirsty consumers are invited to "discover a sensation as real as thestreets," when cherry-flavored Mountain Dew Code Red isintroduced.Pepsi puts a little twist on a great thing, unveiling the first nationalTV commercial for new lemon-flavored Pepsi Twist.2002: In March, supermodel Cindy Crawford helps introduce a newlook for Diet Pepsi. The updated graphics better represent thebrands light, crisp, refreshing qualities.• Pepsi-Cola teams up with the National Football League, b ecomingits Official Soft Drink Sponsor.
  39. 39. • Pepsi declares, "Its a blue thing," and unveils Pepsi Blue in July.A fusion of berries with a splash of cola, the blue -hued soft drink iscreated by and for teens. Through nine months of research anddevelopment, Pepsi asks young consumers what they want most in anew cola. Their response: "Make it berry and make it blue."• In December, American music and film sensation BeyoncéKnowles is welcomed as the newest member of the Pepsi family.2003: Pepsi-Cola unveils a new advertising campaign, "Pepsi. Itsthe Cola," which is the brands first major campaign shift since1999. The new campaign highlights the popular soft drink that goeswith everything from food to fun.• Pepsis last major campaign change was i n 1999, when it debuted"The Joy of Cola," which became "The Joy of Pepsi" in 2000.• Pepsi updates its look with a bolder, more contemporary imagethat better captures the brands youthful attitude.• Mountain Dew offers its third line extension with Mo untain DewLiveWire, combining the unique citrus taste of Mountain Dew witha bold orange flavour.• Pepsis blockbuster summer promotion "Pepsi Play for a Billion"gives 1,000 consumers the chance to play for $1 billion on a livetelevision show on The WB. A guaranteed $1 million prizewinnerwill be chosen and will then have a chance to win $1 billion withoutforfeiting the $1 million prize.• In September, Richard Bay, a 42 -year-old high school teacherfrom Princeton, West Virginia, became a millionaire on "Pepsi Playfor a Billion" on The WB. Bay and the television audience then held
  40. 40. their collective breath to see if he would also win the billiondollars. Instead, his number was two digits off the billion -dollarnumber, but Bay was still pleased with hi s cool million.2004: Pepsi unveils five new TV commercials for Pepsi and SierraMist on Super Bowl XXXVIII, making this the 19th straight yearthat Pepsi has advertised in the big game.• On Super Bowl Sunday, Apple and Pepsi officially launch ahistoric promotion to legally give away millions of free songs toMac and Windows PC users from Apples iTunes Music Store.• On the Academy Awards telecast, Diet Pepsi stole the spotlight asthe country‘s fastest-growing major soft drink bowed a newadvertising campaign with the tagline, ―Diet Pepsi. It‘s the DietCola. The zero-calorie cola brand illustrates how it is the bestoption to go with food and social occasions, much like its sisterbrand, Pepsi-Cola.• Two popular sportscasters help turn life‘s every day moments intoa cause for celebration in a new advertising campaign for PepsiEDGE, the new cola with full -flavored taste but half the sugar,carbs & calories of regular colas. The campaign tagline, "Thismoment deserves a Pepsi EDGE," reminds consumers that they canreward themselves with a Pepsi EDGE for completing even thesimplest of tasks.• Mountain Dew brings nostalgia back into pop culture as itintroduces new commercials featuring the classic Mad Magazine"Spy vs. Spy" characters — that will stop at nothing to get theirDew.
  41. 41. COCA-COLAAs the worlds favourite drink, the worlds most valuable brand andthe most recognizable word across the world after ‗OK‘; Coca -Colahas a truly remarkable heritage. From a humble beginning in 1886,it is now the flagship brand of the largest manufacturer , marketerand distributor of non-alcoholic beverages in the world.Coca-Cola returned to India in 1993 and over the past ten years hascaptured the imagination of the nation, building strong associationswith cricket, the thriving cinema industry, music etc.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-Colas advertising campaigns ―Jo Chaho Ho Jaye and Life hoto Aisi‖ were very popular and had entered the youths vocabulary.2002:Coca-Cola launched the campaign " Thanda Matlab Coca-Cola" which sky-rocketed the brand to make it Indias favouritesoft-drink brand.2003: Coke was available for just Rs. 5 across the country and thispricing initiative together with improved distribution ensured thatall brands in the portfolio grew leaps and bounds.Coca-Cola had signed on various celebrities including movie starssuch as Karishma Kapoor, cricketers such as Srinath, SouravGanguly, southern celebrities like Vijay in the past and today, itsbrand ambassadors are Aamir Khan, Aishwarya Rai, Vivek Oberoiand cricketer Virendra Sehwag.
  42. 42. PEPSI VS COCA-COLA ConclusionThis project has been helpful in understanding the meaning ofBrand Rivalry. It was noted that Brand Rivalry is an extraaggressive in competition between two different brands to reach atnumber one or to capture more market share. In the most aggressivevariants, ethics, moral values and even the law can be neglected andit is only a race to reach the number one position which drives thebrand.Through this project we were able to understand how Pepsi & Coca -Cola were formed and the problem faced by them in the initial yearsof operation and how did they overcome all those difficulties.This project made known to us how Pepsi & Coca -Cola being theprominent brand rivalries fought fiercely against each other throughtheir production tactics, marketing strategies and advertisements.All through this war which continues even to this day, both thebrands have done their level best to convince the people that one isbetter than the other.Through this project we also discussed various differences that existbetween the strategies and techniques adopted by both of them tosell out their product.Therefore, I hope that the project has met its aim.In fact, all of the battles have seen a conclusion....a victor and aloser; but in the case of Pepsi & Coca -Cola, while both sides stillclaim a victory, the jury is still out the public is still undecided andthe soda still stands in solitude.As the bottom line conclusion, the battle of Coca -Cola versus Pepsidoes not seem to end. It is like they are arch enemies for each other.Nevertheless, it is always interesting to see the market battlebetween these two soft drink products.
  43. 43. ~~~~~~~~~~~~ Attn: Pictures on the next page!!
  44. 44. Pictures to be attachedAttn: Attach these pictures on the backside of the page which is adjacent to the relevant page. Prominent electronics & information technology brands Prominent toffee & confectionary brands
  45. 45. Prominent camera brands
  46. 46. Pepsi’s new logoThe drugstore of Caleb Bradham, inventor of Pepsi, as portrayed in the "Bern New Bern" exhibition in the Historical Museum Bern. The original stylized Pepsi-Cola logo
  47. 47. The second stylized Pepsi-Cola logo Pepsi’s 12 oz bottle of 1936
  48. 48. 1940’s advertisement specifically targeting African Americans, A young Ron Brown is the boy reaching for a bottle.
  49. 49. Logo of Frito-LayLogo of Tropicana Logo of Pepsi
  50. 50. Logo of Coca-ColaCoca-Cola vending machine Coca-Cola being bottled
  51. 51. A corner store in Goa,,India where the Coca-Cola signs advertise 200 ml bottles of coke at five Indian rupees.
  52. 52. Coca-Cola founders Asa G. Candler and Dr. John S. Pemberton are seen together at Asa G. Candler & Co. pharmacy, 47 Peachtree St., Atlanta in the only extant albumen photograph from 1888. Also shown is the biography of Candler written by his son, Charles Howard Candler. An Old German Coca-Cola bottle openerBelieved to be the first coupon ever, this ticket for a free glass of Coca-Cola was first distributed in 1888 to help promote the drink. By 1913, the company had redeemed 8.5 million tickets.
  53. 53. This Coca-Cola advertisement from 1943 is still displayed in the small city of Minden, Louisiana.
  54. 54. Original framed Coca-Cola artists drawn graphic presented by The Coca-Cola Company on July 12, 1944 to Charles Howard Candler on the occasion of Coca-Colas "1 Billionth Gallon of Coca-Cola Syrup." Legended to be the first installation anywhere of the 1948 model "Boat Motor" styled Coca-Cola sodadispenser, Fleemans Pharmacy, Atlanta, Georgia. The "Boat Motor" soda dispenser was introduced in the late 1930s and manufactured till the late 1950s. {Photograph circa 1948} New Coke can
  55. 55. Pepsi Vs Coca-Cola
  56. 56. VsVsVs
  57. 57. VsVsVs
  58. 58. Mock-up of Coke dispenser flown aboard the Space Shuttle Discovery in 1995, on display at the Astronaut Hall of Fame.
  59. 59. Coke and Pepsi cans flown aboard STS-51-Fon display at the National Air and Space Museum Silver Spring’s Virgin Cola
  60. 60. Sainsburys store brand Classic Cola
  61. 61. Indra Krishnamurthy Nooyi- CEO of PepsiCoat World Economic Forum annual meeting in Davos, Switzerland, January 2010
  62. 62. Muhtar A. Kent-the Chairman and Chief Executive Officer (CEO) of the Coca-Cola Company.
  63. 63. Team India after bagging Pepsi Cup sponsored by the PepsiCo M.S Dhoni; Shot from a Pepsi Ad
  64. 64. ‘Coca-Cola sucks India dry’People of India agitating against Coca-Cola factory