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Pepsi V/S Coke
The document provides a comprehensive analysis of the cola industry, focusing on Coca-Cola and Pepsi, including their logos, market share, product offerings, marketing strategies, and competitive advantages. It presents PESTEL and SWOT analyses, details their financial statistics, and discusses the impacts of health awareness on sales. The report highlights the historical 'cola wars' between the two brands and their strategies to maintain market dominance.
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Pepsi V/S Coke
- 1. Sameer Dhurat Divesh Chauhan KruticaAhire Rahul Lokhande Amol Chavan Bhakti Baniya Riddhi Chinchay Ankita Dhumale Prathamesh Baluragi GROUP MEMBERS
- 2. Table Of Contents •Introduction • Evolution of Logo • Market Information • Products in India • Top 10 Cola Products • Industry Insights • PESTEL Analysis • SWOT Analysis • 4P's Anaysis • Case information • Pepsi and Coke Controversy • 9 disturbing side effects • Market Share • Different Marketing Strategies • Current Scenario • Reference
- 3. Introduction Coca Cola Pepsi Logo TypeCola Cola Manufacturer The Coca-Cola Company PepsiCo Country of origin United States United States Introduced May 8, 1886; 130 years ago 1893; 124 years ago (as Brad's Drink) 1898; 119 years ago (as Pepsi-Cola) 1961; 56 years ago (as Pepsi) Colour Caramel E-150d Caramel E-150d Variants Diet Coke Coca-Cola Life Diet Pepsi Pepsi Next Related products Pepsi Irn-Bru Coca-Cola RC Cola
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- 7. Market Information Coca cola 49% Pepsi 20% Others 31% MarketShares Market share of carbonated beverages worldwide as of 2015, by company
- 8. Coca cola productsin India • Zico • Aquarius • Vio Almond Delight • Vio Kesar Treat • Maaza • Pulpy Orange • Minute Maid Nimbu • Minute Maid Guava • Minute Maid Mango • Minute Maid Mixed • Fanta Green Mango • Fuze Tea Lemon • Fuze Tea Peach • Kinley Water • Schweppes Ginger ALE • Schweppes Soda Water • Schweppes Tonic water • Coca-Cola • Diet Coke • Coke Zero • Thums Up • Sprite • Georgia Gold • Sprite Zero • Fanta • Limca • Kinley Soda
- 9. Pepsi products inIndia Foods • Cheetos • Kurkure • Lay’s • Lehar Namkeen • Quaker Oats • Uncle Chipps Beverages • 7UP • Aquafina • Duke's • Gatorade • Mirinda • Mountain Dew • Pepsi • Slice • Tropicana
- 10. Coke Pepsi Brand Value$79.21bn $10,025m TV advertising spending $231.5m $659.1m Number of Facebook fans 102.8m 36.4m Net Operating Revenue $ 41863 $62,799 Total Asset $ 87,270 $ 74,129 Long Term Debts $ 29,684 $ 30,053
- 11. Top 10 MostPopular Soft Drink Brands in India 2017 10. Mountain Dew 9. Mirinda 8. 7 UP
- 12. 7. Maaza 6. Fanta 5.Limca
- 13. 4. Thums up 3.Sprite 2. Pepsi
- 14.
- 16. Leading most valuable soft drinkbrands worldwide in 2016, based on brand value (in million U.S. dollars)
- 17. Price in India Coke( ₹ ) Pepsi ( ₹ ) 150ml 15 18(mini can) 200ml 8 8 250ml 20 25(can) 300ml 30(diet coke) 15 330ml 35(zero) 20(cola can) 400ml 25 Not Available 500ml 20 20 600ml 37 25 750ml 40 30 1250ml 58 55 1750ml 70 Not available 2000ml 90 90
- 18. Industry Insights MajorCompanies Stimulants in Soft Drinks Bottling and Distribution Network Pricing Strategy Competitive edge Significant Investments Advertising Strategy Products
- 20.
- 21. POLITICAL • Government influenceall 5 forces of porters model. • Trade, tax policy, labor laws, amount of permitted goods and services by government. • Food & drug Administration (FDA) • Political Condition in international market Unrest or change in government • Inability to penetrate market due to conflict, war • Fines for different rules & regulations • Changes in laws & regulation • Land acquisition and permits • Import – export regulations • India- Food, drug & cosmetic Act, Occupational Safety & health Act • Foreign, State & local laws • ex. Case against Coca cola by Government of kerala in 2010
- 22. ECONOMIC • Growth rate,interest rates, employment rates, currency exchange rates, inflation rate • Purchasing power of customers • Revenue • Accounting standards • Cost incurred- raw material, wages • Fuel Prices- Distribution network • Fluctuation in market, money supply, business cycle • Different Strategy for- underdeveloped, developing, rural-urban • ex. Net operating profit for coca cola outside US stands 72%. Companies uses 64 various types of currencies
- 23. SOCIAL • Lifestyle changes-its base in advertising campaign • Company has to adjust with changing society • Adopting management strategies to adopt the social trends • Important to know culture before entering the market • Consumer & Gov. are increasing awareness of public health consequences, mainly obesity • Diversity management • Age distribution of country • Main consumer- young & children • Old celebrates with alcohol • Age 37-55 years- concerns nutrition • Time saving product for many homes • Ex. Coca cola donates 1% of profits to charity in spain & creates friendly company range • Coca cola has been awarded Social & Corporate governance award for best practices in corporate social responsibility in 2009
- 24. TECHNOLOGICAL • Production &Distribution cost control and up gradation • Availability whenever and wherever with affordable price. (ex. vending machine) • Labeling & Packaging ( recyclable bottles, cans, plastic bottles) • Marketing & promotion programs (internet, TV.) • New machineries for higher production with minimum costs, top quality • Newer & attractive Designs • Social networking sites • Supply chain management & improve efficiency • ex. Sodastream international limited- do-it yourself, beverage carboration system
- 25. LEGAL • Change inlaws and regulations may results in change in costs & capital expenditure • Company must ready to future changes in laws and ready to adopt • Discrimination laws, customer laws, employment laws, antiturst laws, health & safety laws • Advertising and labeling laws • Environmental protection act • ex. Federal food, drug and cosmetic act, trade commission act, occupation safety, health act • Sales, distribution, production all come under different acts in different countries.
- 26. ENVIRONMENTAL • Pollution &global warming issues • Sales variation with Weather conditions & seasons • Local, national, world environmental laws • Waste management • Recycling- renewable plastics • ex. Coca cola developed innovative energy managing system that delivers energy savings of up to 35%
- 27.
- 28. S.W.O.T - Strengths •First mover advantage. • Dominator of fountain market with 65 % of market Share • More loyal customer base. • Large market share of 44.1%. • International Brand recognition. • Huge distribution network. • Strategic move during world wars. • Efficient diverse global operations • Guerrilla Marketing strategies. • More focus on young generation. • International Brand recognition. • Huge distribution network. • Innovative advertising strategies. • More flexible franchise network.
- 29. S.W.O.T - Weaknesses •Moving away from core competencies. • Brand Failures • Product Recalls • Smaller market than Coke. • Slower take off in international markets. • Imitation of Coca-Cola.
- 30. S.W.O.T - opportunities •Entry into new developing international markets. • Introduction of newer brands. • Innovative advertising strategies. • Introduction of “Pepsi Health Drink”. • Entry new developing international markets. • Introduction of newer brands.
- 31. S.W.O.T - Threats •Fear of losing market share due to rapid market fluctuations. • Barriers of entry in international markets. • Decreasing brand loyalty among consumers. • New age beverages. • Fierce competitors in local markets; Private labels at low prices.
- 32. 4Ps Analysis 32 PRODUCT • Carbonatedsoft drinks • Non-carbonated soft drinks PRICE • Pepsi value proposition • Coke the “premium” brand PROMOTION • Investment in Trademarks • Retail Shelf Space • Ad Campaigns PLACE • Retail channels • Fountain Outlets • Vending Machines • Mass merchandise
- 33. Case Information ColaWars Coca Cola: Advertised: "Family-friendly" "Cute-characters" July 11, 1985: Original "Classic" Coke Pepsi: Advertised: Popular Spokesperson 1975: Pepsi Challenge 1981: Pepsi Challenge Payoff 1990:Drink Peps, Get Stuff 1996:Success in Summer Olympics
- 34. In Space: In 1985: Coke launched in Space Space Shutller Challenge Cyber-war: Concluded Cola war Coke Rewards Pepsi Partnership with Amazon
- 35. PEPSI AND COKEPESTICIDE CONTROVERSY 2003-2006 • Environment group claimed high level of pesticide. • On August 5, 2003 issued news. • Caused diseases. • Gujarat and MP also banned the sale of Pepsi and Coke. • Sale dropped 30-40% • Soon both Pepsi and coke published news about pesticide level.
- 39. Different marketing strategies2003 Strategies adopted by coke New brand development strategy stressed on 3ps • Price value • Preference • Pervasive penetration
- 40. • Internet (socialnetworking) • Public relations and publicity campaign • Corporate logo and outreach • New media
- 41. • Coke (re)livesit up with Aamir • New advertising strategy- included newspapers ads, “safety guranteed” stickers,public tours of coke plants and “a television advertising campaign by Aamir khan.
- 42. Marketing Strategies ofPepsi • Aggressive Advertising strategy • Pricing strategies • PR campaign, spot ads, prints • Social media use
- 43. CURRENT FACTS • Cokecontrols 42% of the total carbonated soft drink market, compared with Pepsi's 30%, according to Beverage Digest. • In 2016, Coke products could be found in over 200 countries worldwide, with consumers downing more than 1.8 billion company beverage servings each day. • PepsiCo's brands generated retail sales of more than $1 billion apiece, and the company's products were distributed across more than 200 countries. • Due to changing tastes and health awareness, substitutes, both csd brands have been in decline. Profitability is also decreasing with stagnating growth. • Soda remains 75% of Coca-Cola's global sales. • Pepsi's snack division makes up about 50% of the company's sales volume. • Soda is just 25% of the Pepsi’s India's sales compared to 60% of Coca Cola's.
- 44. • Coca-Cola andPepsiCo together dominate the market for carbonated soft drinks in India. Coke accounted for 60% of retail value sales of carbonated soft drinks in India in 2016 versus PepsiCo's 37%, according to data from Euromonitor International. • PepsiCo and Coca-Cola have amassed enormous product portfolios that are loaded with popular brands. • PepsiCo has 22 'billion-dollar brands', which are brands that collect at least $1 billion in retail sales each year. • For its part, Coca-Cola has 20 brands that generate $1 billion or more in annual sales. • The difference between the two companies is that Coca-Cola's portfolio is 100% comprised of beverages.
- 45. • Coca-Cola hasstruck a deal to be the ‘national beverage partner’ of Carl’s Jr, after vying with Pepsi for about a year to bag the contract. • The Carl’s Jr deal puts Coca-Cola a notch above Pepsi with three contracts (Wendy’s, Fatburger, Carls Jr). Pepsi has bagged the the other two (Burger King and Johnny Rockets). • Pepsi also serves players, including KFC, Pizza Hut, Taco Bell, Papa Johns, Costa Coffee, whereas Coke is the official beverage partner of Mcdonalds, Subway, Dominoes and Hard Rock Café. • Pepsi is also partners with PVR Cinemas, Air Asia and Delhi International Airport Ltd
- 46. Reference • http://brandongaille.com/coca-cola-vs-pepsi-statistics/ • https://www.statista.com/statistics/264423/revenue-and-financial-results-of-coca- cola/ •https://www.coca-colaindia.com/our-products/product-list-descriptions/ • http://scoophub.in/top-10-most-popular-soft-drink-brands-in-india/ • https://www.statista.com/statistics/273063/leading-15-most-valuable-global-soft- drink-brands-based-on-brand-value/
Editor's Notes
- #22 Ex. State gov. of kerala, march 22- 2010, filled case against coca cola saying it is responsible for causing polluiton & water depletion of state of kerala and made it liable for Rs. 216 crore for damaged caused as a result of company’s bottling operation. Coca cola lost brand value and sales for some time then. high court gave result in favour of coca cola saying water depletion was due to rain problem and not because of coca cola company.
- #24 Ex. Coca cola india has been awarded Social & corporate governance award for best practices in corporate social responsibility in 2009. in next year, 2010-kerala case Ex. In 2007 & 2008, pepsico honoured by environment protction agency (EPA) “energy star partner of year” for energy conservation
- #25 Ex. SodaStream is the maker of a consumer home carbonation product. SodaStream is currently headquartered in Israel. Since Coca-Cola agreed Feb. 5, 2014 to buy a 10 percent stake in Green Mountain Coffee Roasters Inc. (GMCR), a company developing a make-your-own, single-serve product similar to SodaStream’s, short interest on the stock has fallen. (bloomberg) the number one "fundamental theme" in soft drinks centers around "Changing consumer beverage preferences, featuring a shift toward health-oriented wellness drinks." SodaStream plans to pounce on this trend by doubling down on its marketing of the "health and wellness" aspects of its products. And there's reason to believe it could succeed in setting itself apart from brands like Coke and Pepsi.
- #26 Ex. In kerala case, coca cola said it was target of handful of extremist protesters.
- #27 Ex.- According to ngo- it requires 9 lit water to make 1 lit of cola. According to coke- 3.2 lit. In 2000, pepsico filled antitrust lawsuit against coca cola for monopolistic approach. coca cola built $60 million world’s largest plasticbottle-to bottle recycling plant and support recycling in us.