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. 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.
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 is exactly the same, the two
companies rely on somewhat different marketing strategies. 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. Coke also implemented
cross training of managers so it would be more difficult for cliques to form within the
company. 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 fail.
However, in certain countries that allow direct comparison, Pepsi has beat Coke.
Coca-Cola’s long time strategy has been to make its product inexpensive,
widely available and tasty. As far as taste is concerned, the company had to develop
various drinks tailored to Chinese palates. During the China International Beverage
Festival held in September, Coca-Cola invited Chinese folk artists to make paper-cuts and
mold clay dolls, so as to better combine traditional Chinese art with a foreign brand.
Pepsi also developed its market strategy according to the unique tastes of Chinese
customers. They spent huge amounts of money to invite famous singers, stars and soccer
players to promote its products. The company called this its “soccer & music”
promotional strategy.
Even before the first bottle of Pepsi hit the shelves, local soft drink
manufacturers increased the size of their bottles by 25% without raising costs
Coke and Pepsi are practicing social marketing in rural India and interior China.

B. Strategic Posture:

1. Mission:

PepsiCo's overall mission is to increase the value of shareholder's investment. They do

this through sales growth, cost controls and wise investment of resources. They believe
their commercial success depends upon offering quality and value to their consumers and
customers; providing products that are safe, wholesome, economically efficient and
environmentally sound; and providing a fair return to their investors while adhering to the
highest standards of integrity.

2. Objectives:

PepsiCo’s overriding objective is to increase the value of our shareholders' investment

through integrated operating, investing and financing activities. Their strategy is to
concentrate their resources on growing their businesses, both through internal growth and
carefully selected acquisitions. Their strategy is continually fine-tuned to address the
opportunities and risks of the global marketplace. The corporation's success reflects their
continuing commitment to growth and a focus on those businesses where they can drive
their own growth and create opportunities.

PepsiCo believes that as a corporate citizen, it has a responsibility to contribute to the

quality of life in our communities. This philosophy is put into action through support of
social agencies, projects and programs. The scope of this support is extensive -- ranging
from sponsorship of local programs and support of employee volunteer activities, to
contributions of time, talent and funds to programs of national impact. Each division is
responsible for its own giving program. Corporate giving is focused on giving where
PepsiCo employees volunteer.

3. Strategies:

As a consumer products company, PepsiCo does not have the major environmental
problems of heavy industry. Their biggest environ-mental challenge is packaging
generated by their products. Packaging is important to public health and a critical
component of the distribution system that delivers products to consumers and commercial
establishments. To meet both consumer demand and safeguard the environment, they
recycle, reuse and reduce packaging wherever possible. Each business is also committed
to responsible use of resources required in manufacturing their products.

Continually fine-tuned to address the opportunities and risks of the global marketplace.
Concentrate our resources on growing our businesses, both through internal growth and
carefully selected acquisitions. Company developed its traditional products and expanded
into low-fat and no-fat snacks as well as salsas and dips.

4. Policies:

• Employee networks to mentor and support minority & female employees.

• Actively and diligently seek out qualified M/WBEs for all possible company
requirements.

• Make every reasonable effort to help qualified M/WBEs to meet company standards.

• Respect the privacy of all visitors who access and use the company’s corporate Web site

• Treating all customers with respect, sensitivity and fairness, while providing some of
the greatest products on earth.

• We respect individual differences in culture, ethnicity and color. PepsiCo is committed

to equal opportunity for all employees and applicants.

• Corporate program for training employees how to work and manage in an inclusive
environment

 Pepsi has been more aggressive than Coke in India especially in developing
distribution network & pushing sales force in generating numbers. Pepsi also has
really revolutionised the way soft drinks are sold by innovating newer & better
ways of penetrating the market through Vending Machines , Restaurant channels
etc.
 So in nutshell, pepsi takes extra runs due to its targeted, humerous and agressive
marketing campaign and taste. Brand image does not play significant role in
choosing from coke or pepsi as both of them has equal brand image. Indians will
differentiate the brand by taste and the ads.
 Pepsi is dead-on about its brand positioning, perferring to target India's youth
through young cricketers who are in vogue and charge much less as well. Case in
point, the 'Yeh hai youngistan meri jaan' campaign with Ishant Sharma and Rohit
Sharma.
 Pepsi has roped in boxing champion Vijender Singh as the brand ambassador to
carry forward the Youngistaan positioning adopted by the brand
 The new campaign is aimed at furthering the brand’s positioning as a youth
drink.