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Marketing Mix and Positioning of Coca-Cola and Pepsi-Cola

In this essay I have detailed marketing mix and theposition of the two internationally recognized brands: Coca-Cola and Pepsi-Cola. Also a comparison between marketing mixes of the two brands will show how they try to stay in top on the market . The first (and possibly the best known brand) is Coca-Cola. Practically everyone of us has tasted the delicious and refreshing drink at least once in life. This drink was invented in 1886 by pharmacist John Styth Pemberton. The first advertisement for Coca-Cola soon appeared in The Atlanta Journal. It invites the thirsty citizens to try the new and popular carbonated drink. "Banners appeared on store awnings painted by hand with suggestion consumption ", which was added to inform passersby that the new beverage was refreshing. During the first year sales reached a modest nine servings per day. Dr. Pemberton never realized the potential of the beverage he created. Before his death in 1888, he sold the remaining shares to Asa G. Candler. Mr. Candler, an Atlanta businessman with great intuition in business, who continued to buy additional rights and obtained full control of the business. Basically, sodas satisfy the need of thirst, but everyone is different and everyone has their own tastes willing to pay for their satisfaction. This led to a diversification of the product Coca-Cola, at the drink recipe and to the packaging. The variety of the products offered depends on the marketing strategy adopted by the brand. If Coca-Cola marketing mass produced at some point one soft drink for the whole market, hoping to attract consumers. Coca-Cola took the marketing based on variety of products. Coca-Cola has produced some bottled drinks in packages of different sizes , each package is designed to give consumers variety and not necessarily to target specific market segments. The customer has different tastes that change over time, seeking variety and something different . By the 60's it was available only as returnable glass, but to make life easier for consumers the company introduced variants plastic 1 liter, 1.5 liter and later in 1993 to 2 liters Appearance of the package is unique and designed to draw attention to the red contrasted with the black liquid . Regarding marketing Coke is now producing for the segments that prefer sweet drinks (cherry coke) consumers that consume diet drinks, diet coke and tab, for the segment decaf , non cola drinks (mineral water Minutes Aid ). Quality soft drinks is expected to be high. Caps ensure that the gas does not escape from the package, because every opening needs to have that sound,'' fsss also specific.De packages are generally light and are safe to use.

The second element of the marketing mix is the promotion , essential to selling the product. Today Coca-Cola has budgets millions of dollars for promotion. The promotion is done by advertising promos on TV and radio stations occasionally . In addition Coke sponsors many recreational activities and sports, being an official partner of the Olympic Games since the early 20 '. Also they use instant contests under the cover, encouraging consumers to buy the product instead of buying from the competing brands that satisfy the same market segment, and billboards. Coca-Cola promotions are used to show customers that the product has the best taste, is popular and is the future although its already aimed at a large variety of customers . All these are used to attract attention to the product. Internationally Coca-Cola also uses the names of celebrities, especially those in sports promotion. This type of celebrities are very effective in supporting clothing and beverage products. Coca-Cola partnered with Michael Jordan to promote , and he earned money worth millions of dollars. In our country, Coca-Cola had over time various promotional campaigns, most notably on the TV. Coca-Cola is one product that reached market maturity stage , thats why reminder advertising is important. The advertising in 4 colors launched by Coca-Cola was not meant to convince people to buy Coca-Cola , but to remind them to do so. Overall, Coca-Cola uses an effective strategy to attract customers, meaning that by promoting consumer appetite of consuming, which then creates demand at the retailer, and then directly to the company. For example in some shopping centers Coca-Cola is sold in separate refrigerators containing only Coca-Cola. This helps to create a personalized selling brand image in the consumer's mind, that brand improving public relations and the company's image. Today Coca-Cola flooded all outlets available. For example, from supermarkets to a simple grocery store. This increases the company's exposure to potential consumers. Speed and ease of purchase are increased also by the machines placed in any place that is frequented by many individuals, such as subways, stadiums, crowded streets. In Romania, Iasi Coca-Cola, for example, distribution policy is mainly focused on reducing the time in the circuit producer-consumer . Price is the last element of the marketing mix. Although intended for all categories of consumers (from low income to high) Coca-Cola products seem to be at least two times more expensive than other brands of soft drinks. This is due to another reason besides the need to cover the cost of promotion. So when people buy Coca-Cola drink buy also the brand and the image that it is associated with , creating the consumer's perception of value.

Through its promotions, Coca-Cola, wants to create a product attractiveness to the consumer's mind. Many of the ads show sunny beaches or people having fun in various situations, or at home. Consumers create that way an image of what it means, beyond the basic product . Organized locally, nationally or internationally all the campaigns Coca-Cola sends are simple messages of friendship, youth, joy. Coca Cola SWOT analysis 2013 Strengths 1. 2. 3. 4. 5. 6. 7. The best global brand in the world in terms of value ($77,839 billion) Worlds largest market share in beverage Strong marketing and advertising Most extensive beverage distribution channel Customer loyalty Bargaining power over suppliers Corporate social responsibility

Weaknesses 1. 2. 3. 4. 5. Significant focus on carbonated drinks Undiversified product portfolio High debt level due to acquisitions Negative publicity Brand failures or many brands with insignificant amount of revenues

Opportunities 1. 2. 3. 4. Bottled water consumption growth Increasing demand for healthy food and beverage Growing beverages consumption in emerging markets (especially BRIC) Growth through acquisitions Threats 1. 2. 3. 4. 5. 6. 7. Changes in consumer preferences Water scarcity Strong dollar Legal requirements to disclose negative information on product labels Decreasing gross profit and net profit margins Competition from PepsiCo Saturated carbonated drinks market

Now we can compare the marketing mix of above to PepsiCo ,and its product Pepsi-Cola.

The basic product of PepsiCo was born in 1893 when Caleb Bradham, a young pharmacist from New Bern, North Carolina, has the first attempt to get a carbonated drink (a combination of mineral water, sugar, vanilla, rare oils and cola nuts) potion which will be called "Brad's Drink". Five years later, on August 28, 1898, Caleb thinks to rename the drink. The chosen name will be Pepsi-Cola and it will be registered in the U.S. Patent Office, Washington, DC, in 1902. The Pepsi-Cola product can be seen as well as Coca-Cola as a basic product itself. Pepsi-Cola packaging appearance, however, is different from those of Coca-Cola. While Coca-Cola goes on a bold, open and fun package , Pepsi-Cola has a futuristic design of the packaging, and theme with the new generation. Because the position of Pepsi-Cola leans towards the unusual things, as extreme sports and games, and thats why It wasnt necessary to create an unique bottle but instead the glass has a classic shape and is big to provide more for the customer. In terms of product variety flavors, they are different, but the basic flavor aroma resembles with the rivals. Pepsi, as well as Coca-Cola (wich has Fanta ,Sprite etc.) expanded its product line with other brands such as Mountain Dew. Pepsi-Cola promotion is done through advertising on TV, radio and numerous billboards. The brand has been associated with extreme sports and their stars through sponsorships (eg skateboarding, extreme biking, rollerblading and many other dangerous individual sports). This more aggressive side of Pepsi-Cola is highlighted in competitive advertising in the United States of America . There were cases when aggressive side or pushy marketing of PepsiCo facilitated the entry into a new market. A good example is India's market penetration. When Coca-Cola was asked to leave the Indian market, Pepsi-Cola began to make plans to entry into this huge market. Being in danger of being denied,it devised a clever marketing strategy. Pepsi-Cola Company has offered to help India to export some agricultural products at higher a price than the price of imports of concentrates for soft drinks. It also promised to focus its sales efforts in rural areas to support their economic development. Later PepsiCo offered to transfer in India assets, packaging and water treatment technology. It was very clear that Pepsi-Cola company's strategy was to provide a set of benefits that would win the support of various groups in India. In terms of placement Pepsi-Cola is very similar to Coca-Cola. It can be found in any fridge of any store, sometimes next to a bottle of Coca-Cola. And Pepsi-Cola use their refrigerators, all for the purpose of attracting attention to the brand.

Pepsi-Cola price line follows the same level as the company's rivals, standing at the most expensive end of the market, but with the difference that Pepsi-Cola went a step further by offering a discount. In other words, they provide more quantity, and those who do not take too much taste difference or strength will target the product offering more quantity. So, Pepsi-Cola and Coca-Cola use basically the same marketing mix to ensure attractiveness of the product. Differences arising from positioning in the market and in the consumer's mind. A comparison between Coca-Cola and Pepsi-Cola is simple and intuitive, since both are fighting for the top spot on the soft drinks market. Most important similarity between the two is the presence of caffeine in amounts greater or smaller. Both Coca-Cola and Pepsi-Cola have decided at one point to try to promote as an alternative to ordinary morning coffee, counting on the fact that people always want variety and novelty. PepsiCo SWOT analysis 2013 Strengths 1. 2. 3. 4. 5. 6. 7. 8. Product diversity Extensive distribution channel Corporate Social Responsibility (CSR) projects Competency in mergers and acquisitions 22 brands earning more than $1 billion a year Successful marketing and advertising campaigns Complementary product sales Proactive and progressive

Weaknesses 1. 2. 3. 4. Overdependence on Wal-Mart Low pricing Questionable practices (using tap water but labeling it as mountain spring water) Much weaker brand awareness and market share in the world beverage market compared to Coca-Cola 5. Too low net profit margin Opportunities 1. 2. 3. 4. 5. Growing beverages and snacks consumption in emerging markets (especially BRIC) Increasing demand for healthy food and beverages Further expansion through acquisitions Bottled water consumption growth Savory snacks consumption growth Threats

1. 2. 3. 4. 5. 6.

Changes in consumer tastes Water scarcity Decreasing gross profit margin Legal requirements to disclose negative information on product labels Strong dollar Increased competition from Snyders

Conclusion As a detailed summary of the above can be said that the two companies and their brands are very strong on the international market owning a large part of the market where it operates. This is possible thanks to the marketing mix plan carefully and effectively applied to the market situation.

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