History, Introduction, Marketing Mix, SWOT Analysis, PEST Analysis, 4Ps, Conclusion, and Recommendations

1. PEPSI & COCA COLA

2.  The originator of PEPSI is Caleb D.
Bradham in 1898.
 PepsiCo. introduced as Brad's Drink, by
Caleb D. Bradham, it was renamed as
Pepsi-Cola on August 28, 1898, then to
Pepsi in 1961.
 PepsiCo entered Pakistan in 1967.
 It is the 2nd largest manufacturer of soft
drinks in the world, with a 21 percent
share of the carbonated soft drink market
worldwide.

3. • In 1902 The trademark for the name Pepsi-Cola was
registered in U.S Patent Office.
• it was renamed as Pepsi-Cola on August 28, 1898,
then to Pepsi in 1961.
• In 1931, at the depth of the great Depression, the
Pepsi-Cola Company entered bankruptcy.
• Megargel was unsuccessful, and soon Pepsi's assets
were purchased by Charles Guth, the President of
Loft, Inc

4.  Founded in 1886 by pharmacist Dr John S
Pemberton in Atlanta, Georgia.
 It is no.1 brand according to fortune 2009
survey.
 The Coca-Cola Company is headquartered in
Atlanta, Georgia.
 With local operations in over 200 countries
around the world.
 Coca Cola has 150,900 employees
worldwide.
 The Coca-Cola Company has been serving for
more than 127 years

5. • Frank M. Rabinson, suggested the name of Coca-
Cola.
• Red has been distinctive color associated with the
soft drink ever since.
• The trademark Cola-Cola was time registered in
United state patent office on January 31, 1893.
• Robert W. Woodruff became the president of
company, in the year 1923 and his more than sixty
year of leadership took Coca-Cola one of the most
recognized and valued brand around the world.
• In 1961, Sprite was introduced.
• In 1963, Roberto Goizueta becomes CEO of Coca-
Cola.

6. • The coca cola began operating in Pakistan in
1953.
• The coca cola plants are located in Karachi,
Hyderabad, Sialkot, Gujranwala and Lahore.
• The Coca Cola company in Pakistan has nearly
3,000 peoples working constantly in company.
• During the last two years, Company invest $130
million in Pakistan.

7. Price – How you price your product or service so
that your price remains competitive but allows
you to make a good profit.
Place– Where your business sells its products or
services and how it gets those products or
services to your customers.
Product – The products or services offered to
your customer: Their physical attributes, what
they do, how they differ from your competitors
and what benefits they provide.
Promotion – The methods used to communicate
the features and benefits of your products or
services to your target customers.

9. • The Coca-Cola formula is The Coca-Cola
Company's secret recipe for Coca-Cola.
• Coca cola has its market presence around
200 countries.
• Coca-Cola has a very large product category
including e.g. different type of cola drinks,
energy drinks, juices and so on.
• World’s most favourite brand.

10.  Total number of coca cola products is 3,500 worldwide

12. • Earlier Coca-Cola used cost based
pricing, but later on when competition
started, now Coke has shifted to
competitive pricing strategy.
• The price of Coca Cola also depends on
its products and sizes.
• Prices range from Rs.25 to 110.
• Pricing is done keeping in view the
increasing with Pepsi.

13. • Pricing is basically standard for all over the
world.
• Each sub-brand of Coke has different pricing
strategy according to the market and its
segments.
• Coke spends more on advertising than
manufacturing.
• Pricing is done keeping in view the increasing
with Pepsi.

14. • Coca cola is the world’s most favorite
brand and is available all over the
world.
• You can find Coke at any stores,
restaurants, or gas stations even at
vending machines. Because Coca Cola
is a leading brand.
• Transportation is done by Air planes,
ships, lorries.
• Coke sets its own distributions directly
to stores Supermarket.

15. • Distribution channel of Coca-Cola

16.  Coco-Cola is commonly known all over the
world because of their great marketing
strategy. It includes variety of methods to
present their product:
 Uses famous people to advert their product
 Advertising in TV and magazines
 Sponsorship activity

17.  Coca-Cola Cricket
 Coca-Cola Concerts
 Coca-Cola Food
Mela
 Coca-Cola Basant
Festival
 Coca-Cola Ramzan
Campaign

18.  life is good
 Jo Chaho Hojae Coca-Cola enjoy
 Thanda Matlab Coca-Cola
 Kha Le Pee Le Jee Le
("eat drink live")

20. • Pepsi is made with carbonated water, high
fructose corn syrup, caramel color, sugar,
phosphoric acid, caffeine, citric acid and
natural flavors.
• Pepsi is available in many flavors according
to needs and wants of customers.
• PepsiCo produced two types of products:
 Beverages
 foods

21. Product line PepsiCo

22. • Following factors Pepsi kept in mind while determining
the pricing strategy:
Price should be set according to the product demand of public.
Price should be that which gives the company maximum
revenue.
Price should not be too low or too high than the price
competitor is charging from their customers otherwise nobody
will buy your product.
 Price must be keeping the view of your target market.
• The best things about the company is that it is very
flexible and it can come down the prices very
quickly.
• Competition based pricing.

23. 250 ml-----------------------------------RS. 25.00/-
500ml------------------------------------RS. 40.00/-
1000ml----------------------------------RS. 55.00/-
1500ml----------------------------------RS. 80.00/-
2250ml----------------------------------RS. 100.00/-

24. • The products were sold in more than
200 countries in the world.
• The products are available in
supermarkets, cafes, restaurants,
vending machines, gas stations, movie
theaters and so on.

25. PepsiCo company distribute its products in three different ways:
1. Direct store delivery
2. Customer warehouse
3. Distributor Networks

26. • Pepsi Company has also become official sponsors
of Pakistan cricket
• Pepsi has launched a number of prize schemes to
attract new customers.
• TPR(Trade Price Reduction) is a promotional
strategy of Pepsi on ramzan and Eid. One case is
free on buying 10 cases of Pepsi.

27.  Dil Mange abhi
 Duniya hai dil walon ki
 Made for cricket
 Khana bane exiting

28.  Segmentation:
 Dividing a market into distinct groups with distinct
needs, characteristics, or behavior who might
require separate products or marketing mixes.
 Targeting
 Consists of a set of buyers who share common needs
or characteristics that the company decides to serve
 Positioning:
 The place the product occupies in consumers’ minds
relative to competing products.
 Involves implanting the brand’s unique benefits and
differentiation in the customer’s mind.

30. Coca cola segments its market on following factors:
1. GEOGRAPHIC SEGMENTATION
 It varies according to the taste and income level of the people in
that country. I.e.: third world countries are given low quality
and taste.
 Coke segments its products country wise and region wise.
2. CLIMATIC SEGMENTATION
 In coke marketing, main idea is to serve it cold, so we that they
focus on hot areas of the world.
3. LOCALY SEGMENTATION
 In Pakistan the coke segments more in urban and suburban areas
as compare to rural areas

31.  Coca Cola doesn’t target a specific segment but
adapt its marketing strategy by developing new
products.
 Main consumers are 12-30 years old people; even
if there is no specific product or communication
for less than 12 or more than 30.
 No occupation targeted but consumers are mainly
students and family oriented people.
 Age group from 18-25 that covers around 40% of
total age segments.
 No life style targeted but more and more busy
life style and mobile generation (youth) are
considered to be the most important part of
Coke’s consumers.

32.  Coca Cola has strategically positioned itself
within the world soft drink market.
 Brand sells its products in 200 countries in
world
 They use strategic positioning in order to
have the same image all around the world.
 Coca Cola has been successful by using Unique
Selling preposition as “Live the coke side of
life”, related to joy and happiness.
 When the name of Coke is mentioned, the
first thing that comes into mind is fun and
entertainment

34.  Pepsi has segmented their market keeping
four major segmentation which are:
 Geographic
 Demographic
 Psychographic
 Behavioral

35.  Pepsi has historically targeted a young
audience especially since the 1980s.
 Many of their ads were usually aimed at
teenagers and even younger groups by
introducing fun, sports and music in their ads.
 Pepsi also attracts other age groups not only
teens.
 Pepsi targeted the every class of Pakistan whether it
is a Middle, Upper and lower class.
 Pepsi targeted the South Asia Region through
Cricket Sponsorship in that region.

36.  Firstly the Pepsi in America try to position
its product for the society as whole and
for the purpose of refreshment.
 Pepsi’s goal is Attract a certain set of
customers to buy the product by
associating itself with young people who
are energetic, fun loving and daring.
 Low quantity of cafeen.
 Available in regular size.

37.  Strength
 Weaknesses
 Opportunities
 Threats

38.  Coca Cola holds the largest beverage market share in the
world (about 40%)
 Coca Cola’ advertising expenses accounted for more than
$3 billion in 2012 and increased firm’s sales and brand
recognition.
 Coca Cola serves more than 200 countries.
 The Coca Cola Company is the largest beverage producer in
the world and exerts significant power over its suppliers to
receive the lowest price available from them

39.  Significant focus on carbonated drinks
 The firm is often criticized for high water consumption in
water scarce regions and using harmful ingredients to
produce its drinks
 Coca Cola currently sells more than 500 brands but only few
of the brands result in more than $1 billion sales. Plus, the
firm’s success of introducing new drinks is weak. Many of its
introduction result in failures, for example, C2 drink.

40.  Consumption of bottled water is expected to grow
both in US and the rest of the world.
 Coca Cola Company has an opportunity to further
expand its product range with drinks that have low
amount of sugar and calories.
 Coca Cola will find it hard to keep current growth
levels and will find it hard to penetrate new
markets with its existing product portfolio. All this
can be done more easily through acquiring other
companies

41.  Consumers around the world become more health
conscious and reduce their consumption of
carbonated drinks, drinks that have large amounts
of sugar, calories and fat.
 Water is becoming scarcer around the world and
increases both in cost and criticism for Coca Cola over
the large amounts of water used in production.
 Legal requirements to disclose negative information
on product labels.
 Coca Cola’s gross profit and net profit margin was
decreasing over the past few years

42.  Strength
 Weaknesses
 Opportunities
 Threats

43.  PepsiCo has several hundreds of brands.
 PepsiCo serve customers in more than 200
countries.
 Successful marketing and advertising
campaigns. More than $2 billion spent on
advertising.

44.  PepsiCo usually prices its products lower
than its competitors.
 The Coca Cola Company has the largest
share market of beverages in the world and
much stronger brand awareness than Pepsi,
placing it at competitive disadvantage.
 PepsiCo’s net profit margin is 9.7% compared
to Coca Cola’s 18.55% and Nestlé’s 11%.

45.  Due to increase in demand for healthy food
and beverages.
 Consumption of bottled water is expected to
grow in future.
 opportunity PepsiCo has in growing its
revenue selling snacks as this market is also
expected to grow.

46.  Consumers around the world become more
health conscious and reduce their
consumption of carbonated drinks.
 PepsiCo’s gross profit margin was decreasing
over the past few years.
 Some researches show that particular
ingredients, consumed in extra large
quantities, in some of PepsiCo products could
cause cancer. For this reason, many
governments consider to pass legislation that
requires disclosing such information on
product labels

47.  Coke is the market leader with 54% market share.
 Pepsi is having only 46% market share
 Coke and Pepsi hold almost 75% the whole market.
 That Pepsi is the leading brand of PepsiCo, with 29% market share
of its total market share.
 Thumbs up is the leading brand of coke with market share of
coke-cola.