Coca-Cola
It is one of the two leading brands in the soda industry and one of the largest brands for non-alcoholic beverages in the world. It is spread out in more than 200 countries and thus has a huge consumer base. The company has a large portfolio of sparkling and still beverages. Apart from having a large market share, it is also known for its strong brand image and high customer loyalty. A consumer drinking coke feels a sense of prestige over drinking soda from any other brand. Although there are a lot of substitutes of coke in the market but the consumers are less likely to divert to some other brand once they have liked the taste of coke. The company also invests a large sum of money each year in marketing and promotion for growing brand recognition and consumer engagement.
Pepsi
Pepsi is not very far behind from Coca-Cola. It has used loads of smart advertisement techniques to improve its sales and profits. Pepsi is known from changing its marketing mix according to the change in behavior of the consumers. Pepsi has not only limited itself to the beverages sector but also advances to the snacks sector. Thus, the turnover generated from the food products is helping the company along with revenue generated from the beverages sector. While advertising Pepsi has taken the help of various celebrities like Michael Jordan, Salman khan, Kendall Jenner.
Product
Coca-cola has a very large product category including cold drinks, energy drinks, juices and so on. The king of Coca-Cola drinks is the Coca-Cola classic which is the most sold soft drink in the whole world. It comes with a lot of different flavors like lemon, cherry to adjust according to the taste of the consumers. Another fast-selling product of this company is Coca-Cola light and Coca-Cola zero. The formula used by the company to make this drink is a secret. It is one of the most closely guarded secrets of trade ever. Only a small number of employees have the access to the recipe.
Both coca-cola and Pepsi are facing competition in their industry but mostly from each other. The two leaders are the ones dominating the market. Coke and Pepsi are almost perfect substitutes of each other. However, Pepsi has even expanded in the snacks section. Some of the snacks include lays, uncle chips and Cheetos. The Pepsi drink is similar to that of coke except it claims to have not used caffeine as one of its ingredients like coke. Pepsi has always associated its product with celebrities and has done a better job at promotion than Coca-Cola.
Price
The process in which organizations determine what they will obtain in exchange for the product is called pricing. Coca-cola enjoyed a monopoly in the market prior to the emergence of Pepsi. Previously the pricing strategy of coke was influenced only by the cost of production and the profit margin but since Pepsi has entered into the market it has started to consider the price of Pepsi while determining its own price. Coca-cola bought a revolution in India when it launched the bottle at 5 rupees. Coca- colas pricing has also been based on the value it products create to customers in different situations. That is the reason why the soft drink prices can vary over different locations.
Pepsi is known to give promotional discounts as well as discounts on bulk buying. For customers s the container size rises the discount also rises. Pepsin also lowers its price for well-established retailers like Big Bazar. Therefore, the sale of the company is higher toward bulk buyers than the distributors. These bulk buyers negotiate with the brand on the basis of their price and sell their products in huge quantities. The better the payments, the more discount is given by the firm keeping the distributors motivated.
Place
Coca-cola and Pepsi are literally everywhere in the world. They are sold in more than 200 countries over the world throughout supermarkets, restaurants, Vending machines, gas stations, movie theaters. Coca-cola has an extensive distribution system. Coca-Cola has relied on is bottling partners for the packaging and distribution of its products. Their system operates through multiple local channels. The company manufactures and sells concentrated beverages bases ns syrups to the bottling operation, owns the brand, and is responsible for the consumers brand marketing. The bottling partner manufacturers, packages, and distributes the final branded beverage to the customer and vending partners who sell the ultimate product to the consumer.
The primary mode of distribution for Pepsi is through distributors who in turn give it to retailers, restaurants and convenience stores. The secondary mode of distribution for the company is through bulk buyers and major retailers who buy directly from the company. Cost is saved in this case as the company is able to give better margins to the bulk buyers.
Promotion
Due to the intense competition in the soda industry, the top brands spend a lot on advertising to influence the consumer's buying habits. Coca colas marketing expense in 2018 was around 5.5 billion dollars. Apart from television and outdoor campaign, the company also advertised through social media and the internet. In 1971 it even came up with a song that talked about what the brand stood for and promoted the brand. It was appalling to people and so it motivated them to consume more of it. There are more than 2500 promotional videos of Coca-Cola on its YouTube channel. It social media accounts are used to connect with its fans and followers around the world.
Pepsi has always used celebrities to advertise its product. These include Ranbir Kapoor, Michael Jordan, and many more. Through its promotional campaign, it has also tried to promote ideas like individualism and freedom. The Pepsi challenge in 1975 was a major boost in sales and help them to acquire more market share. This challenge was indirectly targeted to differentiate between coke and Pepsi. Furthermore, Pepsi also uses trade promotions and sales promotions at the point of purchase.
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