...by drinking hard drinks can enjoy soft drinks and no one would think any less of them. In short, sodas have a mass appeal. They carry an image with them; an image of a person with a comfortable lifestyle. This essay will take a look at the company Pepsi Cola. For a better understanding of the subject company, this paper will delve into a brief history of the Pepsi Company’s growth over the years and the effects of competition on Pepsi’s strategies in the international and domestic market. This essay will attempt to discuss the effectiveness of Pepsi’s marketing strategies and its results. Body Pepsi was one of several other brands that got their start in the late 1800s. A North Carolina pharmacist named Caleb Bradham invented "Brad's Drink" in 1893, which was later renamed Pepsi-Cola. Pepsi’s early growth was less significant than that of Coke's, and its real strength as a competitor to Coke began after Alfred Steele became CEO in 1950, a time when Pepsi was nearly bankrupt. Steele was expected to liquidate the Pepsi-Cola Co. Instead, he made it his goal to "beat Coke" (Wolburg, 2003). Pepsi Cola has taken part of that appeal and has used it in several different marketing strategies. Pepsi was born after Coca Cola, or Coke. It began in North Carolina, invented...
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...Advertising positioning strategy in the competition between Coca-Cola and Pepsi Cola during 1960s in the USA. To what extent is this important to current marketing strategy? Given Name: LANGQIONG Family Name: ZHANG Tutor: Matthew Group 22 Index Page ntroduction Introduction ntroduction............................................................................................. 3 Section 1: Advertising positioning strategy in competition between Coca-Cola and Pepsi Cola in 1960s in the USA................................ 3 Section 2: Functions of advertising positioning strategy in current market........................................................................................................ 5 2.1 Importance of advertising positioning strategy.......................5 2.2 Evaluation..................................................................................... 6 Conclusion Conclusion...............................................................................................6 List of References.................................................................................... 7 Introduction: On account of dramastic development in economy, only the advertisements which exactly meet the demands of consumers can stimulate their interests, in other words, advertisements may contribute to increase in sales. Furthermore, by building up an unique association with a brand in consumers’ mind via analyzing tis own product as well as competitors’ product and...
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...Communication Strategies of Pepsi Cola Table of Contents Executive Summery 3 Introduction 4 History 5 Effective Marketing and communication strategies of Pepsi 6 Media Commercials 6 Advantage of media commercials 6 Disadvantages of media commercials 7 Sponsorships 7 Advantages of Sponsorships 8 Disadvantages of Sponsorships 8 How to enhance the effectiveness of Sponsorship 8 Community Activities 8 Advantages of Community activities 9 Disadvantages of community activities 9 How to enhance the effectiveness of CSR projects 9 Product Diversification 10 Advantages of Product diversification 10 Disadvantages of product diversification 10 How to enhance the effectiveness of Product Diversification 11 Cross Comparison between the marketing strategies of Pepsi, Coca Cola, V and Red Bull 11 Conclusion 13 References 14 Executive Summery Pepsi is an aerated Soft drink that is produced by Pepsi Co. Inc. Pepsi Cola is using most of the modern communication and marketing methods to enhance their brand awareness among its consumers. Mainly they are advertising their brand on Television, Face book, Twitter and YouTube. In this report I have outlined the overview of the Pepsi Cola Corporation and its history, and the most effective communication strategies that are used by them to enhance their brand equity. These strategies include Advertisements, Sponsorships, Online promotions, Community activities and Product diversification of Pepsi Cola Corporation...
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...Channels 3.4 Porter’s five forces 4 5 4 2 2 2 2 4 Competitive / corporate strategies of Coke and Pepsi 5 SWOT Analysis 6 Questions 6.1 How has the competition between Coke and Pepsi affected the industry’s profit? 6.2 If it has been such a profitable industry, why have so few firms successfully entered this business over the last century? What are the barriers? Why have Coke and been so successful in launching their products? 6.3 Why, historically, has the soft drink industry been so profitable? 6.4 Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? 6.5 How can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-CSDs? 7 9 11 Exam Case Study Cola Wars Continue: Coke and Pepsi in 2010 1 Overview (Power Point Page (PPP) 2) For more than a century, Coke and Pepsi compete for market share within the world’s beverage market. The most intense battles were fought over the $74 billion carbonated soft drink (CSD) industry in the United States that lasted until the mid-1990s. Coke’s and Pepsi’s revenues grow annually, as the worldwide CSD consumption rose steadily by an average of 3% per year. In the early 2000s, however, domestic CSD consumption started to decline in consequence of the evolving linkage between CSDs and health issues such as obesity. Coke and Pepsi faced new challenges regarding the growth of non-CSD beverages...
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...Cola Wars Continue: Coke and Pepsi in 2010 Analysis of Case: HBS Case 9 – 711 – 462, May 26, 2011 Coke and Pepsi are part of an oligopoly market. They are and have been the two largest producers of CSDs since the 50’s and have been competing since the early 1900’s. Coke created a barrier to entry into the market in the early days by trademarking its secret formula and going to “battle” with several imitators which they won; including Pepsi in 1938, which they lost. Coke, as the larger of the two producers (47% market share in 1950) seemed to have the dominant market strategy and Pepsi, as the smaller entity (10% market share), followed suit with the moves of Coke. For example, when Coke switched from sugar to high-fructose corn syrup in order to lower costs, Pepsi did too; when Coke began purchasing bottling plants, Pepsi did too. The scales of Coke and Pepsi have allowed them continued growth and market dominance over the years, taking advantage of economies of scale. Coke used its size and wealthy franchisees, to compete in price against Pepsi’s independent bottling plants in the 1950’s. This behavior carried forward until the 80’s when Coke began purchasing bottlers as part of Coca-Cola Enterprises, allowing them to be the “anchor bottler” for their own company. In the late 1980’s, Pepsi followed Coke’s lead again, adopting their “anchor bottler” strategy. This was a strategic barrier which became problematic for smaller concentrate producers who either...
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...Cola Wars Continue: Coke and Pepsi in 2010 Table of Contents 1 Overview 2 General environmental analysis 3 Industry Analysis 3.1 Industry Structure - U.S. soft drink market share of concentrate producers - Suppliers within the carbonated soft drink industry 3.2 Market Structure - U.S. Liquid Consumption Trend (gallons/capita) - U.S. non-alcoholic refreshment beverage volume 2009 - U.S. soft drink market share – soft drink brands 3.3 Marketing Channels 3.4 Porter’s five forces 4 5 4 2 2 2 2 4 Competitive / corporate strategies of Coke and Pepsi 5 SWOT Analysis 6 Questions 6.1 How has the competition between Coke and Pepsi affected the industry’s profit? 6.2 If it has been such a profitable industry, why have so few firms successfully entered this business over the last century? What are the barriers? Why have Coke and been so successful in launching their products? 6.3 Why, historically, has the soft drink industry been so profitable? 6.4 Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? 6.5 How can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-CSDs? 7 9 11 Exam Case Study Cola Wars Continue: Coke and Pepsi in 2010 1 Overview (Power Point Page (PPP) 2) For more than a century, Coke and Pepsi compete for market share within the world’s beverage market. The most intense battles were fought over the $74 billion carbonated soft drink (CSD)...
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...Product Life Cycle of Pepsi: 1) Pre-launch – the 1890s In 1898, pharmacist Caleb Bradham developed ‘Brads Drink’, a formula designed aid digestion. After strong interest from consumers in his pharmacy, Brad renames the drink ‘Pepsi-Cola’ and purchases the trademark ‘Pep Cola’ for $100. The origins of Pepsi are very similar to that of Lucozade, which was also first produced for medicinal purposes. Although $100 does not appear much, adjusted for inflation that amount of money in the 19th Century is equivalent to $2516.34 in 2014. This highlights the difficulties companies have in the pre-launch phases with surviving periods of negative cash-flow, large research costs and development expenditure. 2) Introduction – 1902 Brad began selling Pepsi-Cola and achieved sales of 7,968 gallons of syrup in the first year. Objectives: Brad aimed to generate initial awareness and trial of his product, and far exceeded his targets! Product: Only a basic product was launched – Pepsi-Cola was initially sold even without bottles. Instead the product was sold through soda fountains located in Brad’s pharmacies. Price: Initially a simple cost-plus pricing strategy was used. It is likely that Pepsi-Cola started with a skimming strategy, to quickly recuperate start-up costs. Place: A highly selective distribution is initially recommended, and this is evident with Pepsi-Cola only launching in Brad’s pharmacies. Advertising: To generate awareness, a celebrity endorsement with...
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...Background For over a century, Coca-Cola and Pepsi- Cola vied for “throat share” of the world’s beverage market. In a “ carefully-waged competitive struggle”, from 1975 to 1995, both Coke and Pepsi achieved annual growth of around 10%; this was largely attributed to the effectiveness of their marketing efforts. Analyzing the environment and understanding the market Instead of engaging in a “head-on confrontation” and getting involved in the largely dreaded price wars that promise to inflict much impact on the financials of both parties, both companies would always select customers that it can serve well and profitably. For instance, Pepsi “[is] going after the younger consumer… where the profits are”. This is an illustration of concentrated marketing, which has been Pepsi’s strategy since 1970s. It allowed Pepsi to gain a better foothold against Coca-Cola, the market giant, and eventually grew into a stronger competitor. Till now, Pepsi still practices demographic segmentation where it divides the market into smaller groups of customers in accordance to their age. They then targeted the niche group, youths or Generation X, whom Pepsi has always believe that it is the group with better segment structural attractiveness. Teenagers have distinct and unique behaviors such as “purchasing a single-serve product at a convenience store like 7-11”, thus when Pepsi offers such convenience services, it has created a loyal base of young customer who are the largest consumer market...
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...« Previous Post - Next Post » Coke vs. Pepsi The Dilemma: You’re at a restaurant. You’ve specifically asked for a Coke when you get handed a Pepsi, or vice versa. You tell the waiter what you requested, and he gives you the “What’s the difference?” shrug. Perhaps it’s time you laid it on him. People You Can Impress: “Impressed” probably doesn’t accurately reflect the aforementioned waiter’s likely response. The Quick Trick: If you drink them side by side, Pepsi is the sweeter of the two (which is why people tend to prefer Pepsi in the Pepsi Challenge). The Explanation: Although the fantastic ad campaigns run by both companies would have you think otherwise, the soft drinks’ similarities are pretty striking. For starters, Pepsi and Coke were both the brainchildren of Southern pharmacists. Coca-Cola was invented by Atlantan Dr. John Pemberton in 1886. And yes, there was originally a concentration of cocaine in the soda, but it was reduced to a tiny amount (1/400th of a grain per ounce) by 1902 and removed altogether by 1930. Th e Coca-Cola Company changed hands a few times, and after Prohibition Coca-Cola was sold to the Woodruff family for $25 million. Pepsi, on the other hand, was born a few years after Coke. In 1893, pharmacist Caleb Bradham began experimenting withvarious drink mixtures in New Bern, N.C. His 1898 concoction, then known by the creative name “Brad’s Drink,” became an overnight success, and “Doc” Bradham began selling his “Exhilarating, Invigorating...
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...competition between “Coca-Cola”and “Pepsi” in the market for soft drinks Abstract There are two types of people – the ones who like “Coca-Cola”, and the ones who prefer “Pepsi”. Or at least that is the fact that trying to convince us the marketing experts from both companies. The two famous brands compete with any means to persuade whose drink is better. The solution to this problem relies on both of the companies’ abilities to boost the domestic sales, to prove to new international markets, to broaden their brand for new streams of revenue and include non-carbonated beverages in their “big plan”. Competition analysis Nowadays competition is not only commonplace, every year it becomes increasingly fierce. Many companies move theor production to countries with lower standards and bring to market cheaper goods. Once the company finds it’s most important competitors, it has to analyze them by specifying their characteristics, especially their strategies, goals, strengths and weaknesses. Group of companies that follow the same strategy of a target market is called strategic group. If a company wants to enter a particular industry, it develops a strategic and discovers four groups based on product quality and the level of vertical integration. This analysis shows that the height of the barriers to entry is different for each group. Once the company finds its main competitors and their strategies, it must be asked: Looking...
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...[pic] Managing Multinational Corp. Pepsi in UK Company History PepsiCo’s beverage business was founded at the turn of the century by Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola. Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products – including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist and Mug brands – account for nearly one-third of total soft drink sales in the United States, a consumer market totaling about $60 billion. Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina bottled water, Fruitworks, and All Sport. Pepsi-Cola’s mission statement is to be the world's premier consumer product’s company focused on convenient foods and beverages. They seek to produce healthy financial rewards to investors as they provide opportunities for growth and enrichment to their employees, their business partners, and the communities in which they operate. And in everything they do they strive for honesty, fairness, and integrity. Pepsi-Cola began selling its products internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. In addition to brands marketed in the United States, major products include Mirinda and Pepsi Max. Pepsi-Cola North America includes the United States and Canada. Key international markets include Argentina, Brazil, China, India, Mexico, Philippines, Saudi Arabia, Spain, Thailand...
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...Introduction Advertising is an essential part of market management and it greatly influences the demand of products. This essay focuses on how advertising will change price elasticity of demand and the reason for that. Beyond which, the essay will discuss and compare social welfare in competitive market and monopolistically competitive market. There are many reasons why firms advertise. For example, they want to make their brand well-known. The real purpose of this behavior, however, is to sell as many products as possible at a high price to make profit. So one influence of a successful advertisement is to shift demand curve to the right(from D to D1) and vice versa. However, after advertising for a certain product, the cost of producing products will increase. According to the demand curve, as price increasing, demand will decrease, which is the reason firms are trying to figure out whether setting a higher price and the related lower demand will lead to profit loss. If a product has an elastic demand, an increase in price will lead to a loss in total revenue. On the contrary, if the product has an inelastic demand, an increase in price will lead to a gain in total revenue. A successful promotion advertisement should be able to make the product less price elastic, and vice versa (BAJADA, 2006). Mainly, advertising can change price elasticity of demand in two ways. First, substitute. One aim of advertising is to convince consumers that the produce is unique and reduce consumers’...
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...Coke Vs. Pepsi As brands and markets go through different stages in their life cycles, advertising keeps pace and goes through transformation in concept and execution elements. By Rohantha N.A. Athukorala As we can see advertising is the coin that is played by companies to implement their strategy in focus and whether they are brand focused or market share focused. Analyzing their numbers gives us a clear view of it. Coca Cola company and Pepsico are the world’s two largest soft drinks companies. They were in neck to neck competition to capture each other’s market share and no 1 position. However, Coke managed to retain the position throughout though in certain regions Pepsi was able to overtake coke such as in India. Each came with new strategies to put down other’s strategy. In recent past there has been pressure in the carbonated drink market from a strong health and well being movement. At Pepsi the CEO Nooyi decided to add more of its advertising budget towards snack business to keep the company healthy while the flagship soda business was in decline. Pepsi's marketing budget was almost halved from 2005 to 2010, as Nooyi tried to grow the healthy foods and snack businesses. On the other hand Coca Cola has responded to this by creating two sub brands which are variations of the original product but with 0% sugar. In 2009 brand value of Coke increased by 6.5% while sales and profit increase by 13.3% and 12.7% respectively. This was achieved with the increase of...
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...Advertising Strategy Name Course Instructor Advertising strategy for PepsiCo Inc. Aims The campaign seeks to increase the sales of Pepsi and Doritos by concurrently promoting the two exceptional product innovations; a chilly flavored corn chip called Doritos Burn and Pepsi Max Ceasefire Lime which is a no-sugar lime flavored cola. The essence is to demonstrate that it is possible for two companies to partner and successfully promote the sales of their products. This should create an exciting consumption experience worth re-purchasing. Doritos and Pepsi Max purpose to provide a unique opportunity for consumers to give their views and influence the power of the brands (Altstiel & Grow, 2010). Objectives The strategy is geared towards achieving some objectives. Some of the objectives of this advertising strategy include; • To improve public knowledge and consumption of Pepsi Max Ceasefire Lime and Doritos Burn. • To incorporate energy and new ideas in both the Doritos and Pepsi organizations in order to progress an inner city class of trade. • To lead in product innovation, launch and successful promotion and sale. • To enhance, meet the needs of different age groups including the youth with more appealing products. • To lead in the soft drink market and enlarge its market share by promoting quality products. • To empower and enhance consumer understanding of new products in the market • To establish wide brand recognition; get big market shares in the drinks...
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...Both Coke and PepsiCo have franchisee agreements with their existing bottler’s who have rights in a certain geographic area in perpetuity. These agreements prohibit bottler’s from taking on new competing brands for similar products. Also with the recent consolidation among the bottler’s and the backward integration with both Coke and Pepsi buying significant percent of bottling companies, it is very difficult for a firm entering to find bottler’s willing to distribute their product. The other approach to try and build their bottling plants would be very capital-intensive effort with new efficient plant capital requirements in 1998 being $75 million. * Advertising Spend: The advertising and marketing spend (Case Exhibit 5 & 6) in the industry is in 2000 was around $ 2.6 billion (0.40 per case * 6.6 billion cases) mainly by Coke, Pepsi and their bottler’s. The average advertisement spending per point of market share in 2000 was 8.3 million (Exhibit 2). This makes it extremely difficult for an entrant to compete with the incumbents and gain any visibility. * Brand Image / Loyalty: Coke and Pepsi have a long history of heavy advertising and this has earned them huge amount of brand equity and loyal...
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