Coke vs. Pepsi

In: Business and Management

Submitted By muhafis
Words 827
Pages 4
Coke vs. Pepsi: Battle of the Brands
Posted Apr 10th 2007 4:40PM by Eric Buscemi
Filed under: Products and services, Consumer experience, Competitive strategy, Coca-Cola (KO), PepsiCo (PEP), Marketing and advertising, Coca-Cola Enterprises (CCE), Battle of the Brands
This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and watch out for more Battle of the Brands posts.
Some people drink Pepsi, some people drink Coke,
The wacky morning DJ says democracy's a joke.
-- Cake, Comfort Eagle
Unless you are a rare RC Cola drinker, your carbonated beverage decision in the supermarket comes down to the two heavyweights: the flagship products from the Coca-Cola Company (NYSE: KO) and PepsiCo Inc (NYSE: PEP). But the battle between these brands spans much further than the supermarket shelves. From which brand restaurants stock, to what countries each operates in, this rivalry is all-encompassing and global. But instead of a list of countries or restaurant chains, lets take a deeper look at the actual products.
Cola and Beyond
We don't have space to list, nor would you have time to read, every different variant of Coca-Cola and Pepsi, which would force me to include failed ideas such as Crystal Pepsi. Suffice it to say, you won't find many original ideas here, and when a successful idea comes from either company, an imitator just as quickly appears from the other. Coke/Pepsi, Diet Coke/Diet Pepsi, Cherry Coke/Wild Cherry Pepsi, Coke with Lime/Pepsi Lime, Coke Zero/Pepsi One, Coca-Cola Blak/Pepsi Cappuccino. Had enough yet? Because that was just a list of comparable colas. Both companies also make lemon-lime sodas, orange sodas, and other similar carbonated and noncarbonated beverages. So then what differentiates them? Certainly not their product arsenal, but taste and marketing.
As far as taste goes, you will find most people…...

Similar Documents

Pepsi vs Coke

...2007-2008 School of Sustainable Development of Society and Technology Malardalens University Vasteras, Sweden. Marketing Communication of Pepsi & Coca Cola in Pakistan! Muhammad Kashif Omer Malik 840310-P655 E-mail: Tutor: Leif Linnskog Date: 01 Sep 2008 Marketing Communication of Pepsi & Coca Cola in Pakistan 2008 Extracts Date Author 01 September 2008 Muhammad Kashif Omer Malik Qilah Lachman Sing, Ravi Road, Lahore, Pakistan. +923214912558 Master level thesis in Business Administration (15 ECTS) Marketing Communication of Pepsi and Coca Cola in Pakistan Leif Linnskog How the marketing communication of Pepsi cola and Coca cola is seen in Pakistan and how come the strong position of Pepsi cola? The research is done basically on the qualitative format in which some facts and figures are used for the support of the central issue of research. The data was collected by approaching different sources including primary and secondary styles. The purpose of this research is expose the facts of the appearance of both Pepsi and Coca Cola in Pakistan in terms of marketing communication. This research is mainly based on the marketing communication in which the purpose is to expose the either company’s marketing communication on the media and contribute the matter to the fact of Pepsi cola’s strong position. The appearance can be better in seen in the physical manner and the marketing communication is the best possible......

Words: 32489 - Pages: 130

Coke vs Pepsi

...research, the company measures and forecast the size, growth and profit potential of each market opportunity. HISTORY OF PEPSI PEPSI, company founded by CALEB D BRADHAM in 1890 at North Carolina in USA. Its CEO is ROGER ENRICO and in India Pepsi –CO. Holding its chairman MR.RAJIV BAKSHI. The head quarter of India is at Gurgaon. Presently it is operated in 196 countries. Pharmacist CALEB invented it to cure the disease ―DISPARSIA‖. It is from this word that was related to Pepsi. Soon it entered market American market as soft drink which at that time was mostly dominated by coca-cola, but soon Pepsi was able to dominate the cola market and there after it has been no looking back. Pepsi and coca-cola are engaged in ferocious cold war that has taken the whole world by storm. Pepsi stands 51 positions among the fortunate 500 companies of the world. Its total capital is approx $3000 crore and total sales annually is worth $37 crore, half of which comes from beverages and other half from the sack foods division. The beverages arm of the Pepsi co. Is Pepsi-cola company and the snack –food company is called frinto –lay –inc. The year 1998 is the centennial year of Pepsi. Its total profit in the year 1996-1997 was worth Rs.45 crore approx. The total number of employees engaged in this business is 4.25 lakhs globally. EMPLOYMENT OPPORTUNITIES: Pepsi provides direct and indirect employment to person in supplying it’s raw materials, packing materials, distribution......

Words: 851 - Pages: 4

Coke vs. Pepsi

...Coke Versus Pepsi : Differences in Cultural History Rather than Taste Posted by Nicole Smith, Jan 16, 2012 Food And Drink No Comments Print For many years, Coca Cola and Pepsi have enjoyed the position as the two most enjoyed soft drinks in the USA, as they have maintained their popularity over the past several decades. One can divide soft drink fans into two major camps: Coke-lovers and Pepsi-lovers. Each of the camps substantiates its favoritism not only on flavor, but also on ideas, facts, and preferences that justify its choice and allow it to stay true to its selection. The following analysis of the history of Pepsi and Coca Cola explores Pepsi and Coke with an emphasis on advertising and cultural significance of these efforts, discovering what makes these soft drinks so popular and what differentiates them from each other. What emerges is that there is little in the way of differences between Coke and Pepsi outside of different cultural histories. There are many similarities between Coca Cola and Pepsi and the history of Coca Cola is nothing like the history of Pepsi outside of the fact that both companies were advertising soda. Both were intended to serve as recreational drinks associated with parties, fun, sex, and entertainment. The two drinks have just about the same color, the same amount of carbon dioxide, and have a similar taste. While in the past they both used different natural extracts from the coca nut, nowadays they both rely on artificial flavors and......

Words: 1012 - Pages: 5

Coke vs Pepsi Analysis industry profitability of 14% (Exhibit 1). This industry as a whole generates positive economic profits. Rivalry: Revenues are extremely concentrated in this industry, with Coke and Pepsi, together with their associated bottlers, commanding 73% of the case market in 1994. Adding in the next tier of soft drink companies, the top six controlled 89% of the market. In fact, one could characterize the soft drink market as an oligopoly, or even a duopoly between Coke and Pepsi, resulting in positive economic profits. To be sure, there was tough competition between Coke and Pepsi for market share, and this occasionally hampered profitability. For example, price wars resulted in weak brand loyalty and eroded margins for both companies in the 1980s. The Pepsi Challenge, meanwhile, affected market share without hampering per case profitability, as Pepsi was able to compete on attributes other than price. Substitutes: Through the early 1960s, soft drinks were synonymous with “colas” in the mind of consumers. Over time, however, other beverages, from bottled water to teas, became more popular, especially in the 1980s and 1990s. Coke and Pepsi responded by expanding their offerings, through alliances (e.g. Coke and Nestea), acquisitions (e.g. Coke and Minute Maid), and internal product innovation (e.g. Pepsi creating Orange Slice), capturing the value of increasingly popular substitutes internally. Proliferation in the number of brands did threaten the profitability of bottlers......

Words: 3381 - Pages: 14

Coke vs Pepsi in India

...Case 1-3 Coke and Pepsi Learn to Compete in India Tyler McBee MKT 3450- 01 17 September 2013 3. Both Pepsi and Coca-Cola have effectively attempted to accommodate their products to the tastes and preferences of India. As an advertisement and sponsorship method, both companies have partnered with cricket, movies, and music. These three entertainment industries are very popular in India. Something that has set Pepsi and Coca-Cola apart from other companies in the food industry is partnering with religious and other festivities. Serving or sponsoring events like Navratri makes a huge impact on society’s eyes causing them to see Coca-Cola and Pepsi as socially responsible companies. Pricing policies in India is difficult to work with, because of the restrictions by the government. Pepsi has had a leg up on Coca-Cola because of their early entry into the industry. Obviously they have had better reactions from consumers because Pepsi seems to care, simply because it reached to smaller villages and different communities than Coca-Cola; in consumers’ eyes this appears that Pepsi just cares more. 5. An idea to help with their water issues within each company’s plants is to recycle water. If water is needed to run a machine or make a certain ingredient for the finished product and the water isn’t contaminated or altered by any way, why not reuse it? I believe that Coca-Cola approached the retalaliation of the water issue with a bad attitude. A foreign company......

Words: 601 - Pages: 3

Coke vs Pepsi

...changing demands of life. Furthermore, the rise of globalization has only made it even more difficult for consumers as to which products to patronize and which to avoid (Nezakati, 2013). As such, companies go head to head so as to advance over its competitors. A popular duel between brands is that of the Coca-Cola Company’s and PepsiCo. Inc.’s called the Cola Wars (Cardenal, 2013). For a long time, Coca-Cola dominated the soft drink industry. However, Pepsi later showed that it has got what it takes to eat up Coca-Cola’s market share (“Success of Coke and Pepsi’s Challenge”, n.d.). For starters, Coca-Cola has intensified its marketing efforts, as it is the lifeblood of every business (Solomon, Marshall, and Stuart, 2012). Based on the article A Brief Pepsi History (2002), the outbreak of the First World War marked a sequence of success for Coca-Cola rather than a disruption in their business operations. Furthermore, the article talks about the time when sugar rationing was implemented in the United States, the company’s supreme rival, Pepsi, was kicked out of the picture as it struggled in its production and led to bankruptcy. According to Pendergrast (2000), Coca-Cola took the situation to its advantage and began its global domination. The company convinced the Congress and politicians that, “Men work better refreshed. Time rules the present as never before. A nation at war strains forward in productive effort in a new tempo . . . In times like these Coca-Cola is doing a......

Words: 1985 - Pages: 8

Coke vs Pepsi Analysis

...because of its tasty product, focuses on marketing and advertising to make a profit. Coke and Pepsi employed the following technique to make the soft drink industry profitable: marketing (Yoffie 21). Coke and Pepsi have dominated the market on soft drinks by offering a product that people enjoy, at a price that the average Joe can afford, and by utilizing marketing strategies and campaigns. Through effective leadership, an environment was created which enabled success and profitability as well as creative strategies and campaigns. Both Coke and Pepsi developed and deployed aggressive marketing campaigns which began generations ago by fighting trademark infringements and continued with cleaver and aggressive sales techniques. By branching into other flavors and types of drinks via mergers and acquisitions, both Coke and Pepsi generated additional revenue from more than just their core beverage. The fierce competition the two Cola Giants created, ensured profitability and world recognition of the American developed carbonated soda. 2. Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? The concentrate business has been historically dominated by large magnates such as Coca-Cola and Pepsi. Data, from the case study, detailing the industry breakdown indicates that Coke held 51% of market share in 2003 while Pepsi and Cadbury Schweppes held 22% and 6% of international market shares for that......

Words: 1960 - Pages: 8

Coke vs Pepsi

...Carolina and is sweeter than coke. PepsiCo is one of the World’s top consumer products company with one of the best valuable trademarks, also available in more than 200 countries worldwide. Coca-Cola and PepsiCo control nearly 40% of the entire beverage market but based on Interbrand’s best global brand 2011, Coca-Cola is world’s third most valuable brand; however PepsiCo is number 25 in the list (Saeidinia M., 2010). Moreover, competitors are catching up. The Coca-Cola company main rival is PepsiCo, being the second in the soft drink industry. Coca cola global products are 100% soft drinks and beverage, while PepsiCo global is both 48% snacks and 52% beverage corporation. PepsiCo contains more sugar and caffeine than Coca-Cola; each can of Pepsi contain approximately 8 teaspoons of sugar so if consumer’s need sugar and energy, PepsiCo appropriate better fit. According to studies, in December 2005, PepsiCo surpassed Coca-Cola in market value for the first time. PepsiCo has more extended product line but Coca-Cola is better brand consecutively. Coca-Cola derives over 70% of its business from outside the US while PepsiCo receives 49% from outside North America; both companies are developing emerging markets around the world. Although several changes occurred since the year 2000, Coke has kept a firm lead in the US carbonated drinks market, with 42.8% market share to Pepsi’s 31.1%. In total, this makes 1.7 billion servings of Coke products consumed daily. ...

Words: 1668 - Pages: 7

Coke vs Pepsi

...The aim of this case study - “Coke Versus Pepsi, 2001” is to analyze the trend of both companies – Coke and Pepsi, after announcement of Pepsi’s acquirement to Quaker Oats, based on the past and forecasted information and materials. This essay would use “Economic Value Added” (EVA) measure, in order to identify the expected values of both companies. Carolyn Keene, the consumer analyst at mutual fund firm SPL, believed that the value comparison of Coca-Cola and PepsiCo should be measured by EVA. So what is EVA? Economic Value Added is a popular method of value creation developed by Stern Stewart and Co of New York. It is a measure of economic profit. The EVA is the difference between the firm’s after-tax return on capital and its cost of capital. Stewart states that the earnings, earnings per share, and earnings growth are misleading measures of corporate performance, and the best practical periodic performance measure is economic value-added. The formula to measure EVA is: EVA= NOPAT – (invested Capital x WACC). EVA is a dollar amount and if that amount is positive, the company can earn more net operating profit after tax than the cost of capital used to generate the profit. There are a number of advantages that should be addressed of using EVA as a measure of company performance. The first one is the close relationship with NPV who is the most common measure of company performance. EVA is closest in spirit to corporate finance theory that argues that the value of the......

Words: 1953 - Pages: 8

Coke vs. Pepsi

...I. Introduction Coca-Cola and Pepsi have been competitors for over a century, but their fiercest competition has risen out of the fight to gain an advantage in the carbonated soft drink (CSD) industry, specifically in the United States. In the beginning, the competition yielded benefits for both firms. They were constantly trying to keep up with the other, which proved to be a mutually beneficial relationship. However, following the end of the millennium, US CSD consumption began to decline. By 2009, Americans were consuming CSDs at the lowest rates since 1989. During this decline, Coca-Cola struggled operationally and Pepsi attempted forays into new products and new markets. Forging ahead into the 21st century, both Coca-Cola and Pepsi faced the problems of sustaining growth and profitability in a declining CSD market and the challenges associated with non-CSD products. The ever-famous Coca-Cola formula was created by John Pemberton in 1886 and was marketing as a “potion for mental and physical disorders.” It was acquired in 1891 by Asa Candler and with marketing help, grew enough to grant a bottling franchise in 1899. Candler thought the company would perform better in fountains than bottles. Candler sold the company to investors in 1919, the same year Coca-Cola went public. Robert Woodruff took the reigns as CEO in 1923. He not only oversaw the pioneering of many technical innovations that would become critical to the CSD industry, but he also introduced the......

Words: 3914 - Pages: 16

Coke vs. Pepsi

...              PepsiCo – CocaCola Case Write-Up 11/09/15 Danny Blanks Ben Crook Will Dauterive Alberto Fernandez Zijian “Justus” Jia     Case Questions Coke vs Pepsi 1) What is EVA? What are the advantages and disadvantages of using EVA as a measure of company performance? EVA stands for economic value added. EVA is a value based financial performance measure based on Net Operating Profit after Taxes, the invested capital required to generate that income, and the WACC. The primary advantage of EVA is that it provides a measure of wealth creation that aligns the goals of divisional or plant managers with the goals of the entire company. A primary disadvantage with EVA is that it struggles to control for size differences across organizational units compared to Return on Investment (ROI). Another disadvantage with EVA is that numbers can be easily altered or manipulated to boost EVA, therefore painting a better picture than what actually exist. EVA also places a large emphasis on producing immediate results, thereby creating a disincentive for management to invest in quality projects. 2) Please examine the historical performance of Coca-Cola and PepsiCo in terms of EVA. What trends do you observe? What are the factors behind those trends? What do you think are the key drivers of EVA? Through observing EVA for Coca-Cola and PepsiCo, we noticed a few things. First, Coca-Cola’s EVA seems to be more stable, but...

Words: 1020 - Pages: 5

Coke vs Pepsi companies. These issues could not have been anticipated prior to market entry, however, Coke could have agreed to start new bottling plants instead of what they actually did, which was buying out Parle, and then would have not have had to sell a whopping 49% of it’s equity. 2) For Pepsi, one advantage was that it gained 26% market share by 1993, by entering the market before Coca-Cola was able to become a popular choice in the market while it was still in development. A disadvantage was that they were forced to change their name to Lehar Pepsi. Another disadvantage for Pepsi was that the government limited their sales to less than 25% of total sales. For Coca-Cola, an advantage was that the company was able to buy four bottling plants from Parle (an industry leader), in addition to buying out some of Parle’s leading brands. A disadvantage for Coca-Cola was the fact that the company was denied entry into the market until 1993 because Pepsi already had a place before them. That made it much more difficult to establish market share while Pepsi was there. 3) For product policies, both entered with products close to those already available in India in regards to drinks. (For example, Coca-Cola introduced Sprite and new bottled water products). For promotional activities, both advertise and use promotional material such as giveaways and paid vacations. For pricing policies, Pepsi started out aggressively introducing price policies in order to get immediate......

Words: 695 - Pages: 3

Coke vs Pepsi

...Jessica Salazar 01/15/12 Pepsi vs. Coca Cola Flavored drinks have been around since man discovered the use of water. It was not until the 1900’s that the industry announced carbonated soft drinks. They took the market by storm. People were rushing to their neighborhood markets to buy the new soft drink. Male, female, young or old were buying the new tasty drinks, yet the one question remained in everyone’s mind. There was one single debate lingering in everyone’s mind, Pepsi or Coke? Both soft drinks of the same formula have been revised throughout the years numerous of times, each still has its own set of fans. Pepsi has always been smoother, sweeter, and doesn’t leave an after taste. There’s something about Coke’s beverage that causes an after taste that lingers after it is down. Coke is too carbonated and Pepsi is smoother. Now for the sake of comparison the following will be an objective analysis on both brands. The debate between Pepsi and coke ranges on, yet there are some distinct differences between the two brands, not only in taste, but in history. There’s not a soul in the world that does not know what Coke is. But what is it? Many assume that Coke’s secret recipe is only known by two men, in which each only knows half. People say that is incorrect, but one knows the truth. That hasn’t been a bad thing for their advertising executives. If two people talk about an advertisement for a while then that means the advertisers job is done. The Advertisement and all...

Words: 334 - Pages: 2

Coke vs. Pepsi

...issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year (98). Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share. The creativity and effectiveness of each company's marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty (98). Not only are these two companies constructing new ways to sell Coke and Pepsi, but they are also thinking of ways in which to increase market share in other beverage categories. Although the goal of both companies are exactly the same, the two companies rely on somewhat different marketing strategies (98). Pepsi has always taken the lead in developing new products, but Coke soon learned their lesson and started to do the same. Coke hired marketing executives with good track records (98). Coke also implemented cross training of managers so it would be more difficult for cliques to form within the company (98). On the other hand, Pepsi has always taken more risks, acted rapidly, and was always developing new advertising ideas. Both companies have also relied on finding new markets, especially in foreign countries. In the foreign markets, Coke has been more successful than Pepsi. For example, in Eastern Europe, Pepsi has relied on a barter system that proved to......

Words: 586 - Pages: 3

Coke vs Pepsi

...distribution groups include the Eurasia, Africa, Europe, Latin America, North America, and the Pacific Group. Selling products from diet and regular sparkling beverages to still beverages such as 100 percent fruit juices and fruit drinks, water, sports and energy drinks, teas and coffees, and milk and soy based beverages; selling 1.7 billion servings per day across the world. Coca Cola’s mission statement, "Our commitment is to provide products and services that meet the beverage and business needs of our customers and consumers. In doing so, we provide sound and rewarding business opportunities and benefits for customers, suppliers, distributors and communities. " PepsiCo was founded in 1898. It is home to hundreds of brands around the globe Pepsi-Cola, Frito-Lay, Gatorade, Tropic, and Quaker Brands. Pepsi’s mission is to be the world’s leading consumer convenient foods and beverage product company; seeking to yield financial rewards to their investors, providing prospects for growth and development to their employees, business partners and the communities which they operate, and striving for honesty, fairness and integrity. Pepsi’s main mission statement, “PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate-environment, social, economic-creating a better tomorrow than today.” PepsiCo’s food and snack business is located in North and South America. PepsiCo Europe being the region’s leading food and beverage company; spanning......

Words: 1241 - Pages: 5