★ Marketing MIx:-

Coca Cola:-
The international empire of Coca Cola spans more than 200 countries. The company
has a large product portfolio of sparkling and still beverages. Apart from the large
market share, Coca Cola is known for its strong brand image and high customer
loyalty. It invests a very large sum each year in marketing and promotion for growing
brand recognition and customer engagement. In recent years, it has focused on
optimizing its product mix. The following is the marketing mix of Coca Cola and its
four Ps – product, place, price, promotion.

1. Product MIx:-
The Coca-Cola Company has a wide product range. It has more than 500 sparkling
and still brands and sells approximately 1.9 billion servings a day globally. It
provides nearly 3,900 beverage choices.

Product line:-
Coca Cola product strategy in its marketing mix can be studied by understanding its
wide product range. The following products are offered by Coca Cola globally: Coca
Cola, Sprite, Fanta, Diet Coke, Coca Cola Zero, Coca Cola Life, Dasani, Minute
Maid, Ciel, Powerade, Simply Orange, Coca Cola Light, Fresca, Glaceau
Vitaminwater, Del Valle, Glaceau Smartwater, Mello Yello, Fuze, Fuze Tea, Honest
Tea, Osewalla, Powerade Zero, etc.

Packaging and Labelling:-

Coca Cola products are sold in various packaging and sizes. For example, its core 
product Coke is sold in 200ml, 500ml, 1ltr, 1.5ltt and 2ltr bottles in cans, glass and 
plastic bottles. The Coca Cola logo is clearly made visible on each of these bottles 
and cans to differentiate itself from other companies like Pepsi. The Coca Cola 
bottles also have unique shapes pertaining to the brand.   
 
A great deal of attention is taken while designing the cans and bottles. A number of 
tests are conducted which are as follows

 
Packaging of coca cola as the following marketing features:- 
 2. Price Mix:-

Coca Cola has a wide range products, the pricing is done according to the market
and geographic segment. Each sub-brand of Coca cola has a different pricing
strategy. Their pricing strategy is based on the competitors pricing, Pepsi is the
direct competitor to coke. Beverage market is said to be an oligopoly market (few
sellers and large buyers),hence Both brands price their products competitively.
Prices are not too high to go beyond the average customers’ reach and nor too low
to give an impression of low quality. Coca Cola’s pricing strategy is aimed at driving
brand loyalty. Moreover, due to the decreasing demand for soda products, price
competition between Coca Cola and Pepsi has gotten even intense. The prices
lower as the size of the package grows bigger. Bulk buyers of the product may have
to pay significantly lower prices than ones buying single Coca Cola products.

Following factors Coca Cola keeps in mind while determining the pricing strategy.
➢ Price should be set according to the product demand of the public.
➢ Price should be that which gives the company maximum revenue.
➢ Price should not be too low or too high than the price competitor is charging from
Their customers otherwise nobody will buy your product.
➢ Price must be keeping the view of your target market.

Coca-Cola has used the following pricing strategies over the years for Coke:-

I. Psychological Pricing:-
Coca-Cola utilizes the psychological pricing system for their Original Coke.
Psychological pricing is the business practices of setting prices lower than a 
whole number. The idea behind psychological pricing is that customers will 
read the slightly lowered price and treat it lower than the price actually is. ​ For
 example, the cost of a 2-liter jug of Original Coke was $2.49. They set the
cost to end in 9, because this makes the customers think the price is less than
$2.50, to appeal to the customer.
II. Promotional Pricing:-
Coke also uses the promotional pricing strategy. The Promotional Pricing is a
sales promotion technique, wherein the firm reduces the price of a product
drastically, but for a short period inorder to increase short-run sales. It gives
the product a sense of urgency and customers purchase the product because
of the lower price. Coca cola also provides to its middle men by providing
them free samples and free empty bottles which in return provides an
incentive to the middle to push the product in the market resulting an increase
in sales
III. Segmented Pricing:-
A situation that occurs when a company sets more than one ​price​ for a
product without experiencing significant differences in the costs of producing
or distributing the product. ​Coke uses the segmented pricing strategy. Based
on different packages, Coca Cola is available at different prices. Since their
products are available at different sizes & packages and at different prices
they get to increase their revenue, because there is not much difference in the
costs required to produce the products.
Following are different prices for different sizes:

iv. Discriminatory pricing:-

Price discrimination is a selling strategy that charges customers different prices for
the same product or service based on what the seller thinks they can get the
​ oke also follows discriminatory pricing strategy, because
customer to agree to. ​ C
they have different pricing when sold through different channels.

v. International pricing:-
Coke additionally utilizes the international pricing strategy. For example, the cost of a
2-liter container of Coke in the United States is unique in relation to the cost of a
similar item in China. This needs to do with the distinction in financial conditions,
aggressive circumstances, and laws. Along these lines, Coca Cola has been
following different evaluating procedures in view of the necessity and considering the
presentation of new items focusing on various groups of people.
3. Place Mix:-
Coca cola is the world’s most favorite brand and is available all over the world. The
distribution system of coca cola follows the FMCG distribution pattern. The effective
distribution network of coke has almost eroded the small and middle level players in
the market. The Company is able to create a global reach with local focus because
of the strength of its system, which comprises the Coca-Cola Company and their
more than 250 bottling partners worldwide.

The system has numerous legal and managerial departments and sections,all
independent of each other, and it does not own or control all of its bottling partners
worldwide. While it is generally perceived that Coca-Cola runs all its operations
globally, this process is done through various local channels.​ The Coca Cola
company produces the beverage using its secret formula and transports it to the
bottlers located in various parts of the globe. The bottle shapes and sizes are
predefined by the company. The bottlers then fill the bottles with the adequate
beverage and then ship it to the carrying and forwarding agents. From there the
bottles are transported by road to the stockists, then to the distributors and finally to
the retailers from where the final consumers buy the products.

All bottling partners work closely with suppliers- grocery stores, restaurants,
convenience stores, amongst many others- to execute localised strategies
developed in partnership with Coca-Cola. More precisely, although Coca-Cola is a
global company, its products never have to travel far to reach the final consumer,
making the product more local than you may think. Their business is a local
business, typically products aren’t shipped more than a few hundred miles.

Arrays of points of sales that Coca-Cola products can roughly be categorised into
are:
– Wholesalers/ distributors
– Retail/ corner stores/ super markets
– Restaurants/ cafes/ nightclubs
– Petrol stations
– Automated teller machines (AMTs)

Coke has also built an extensive reverse supply chain where they collect the leftover 
glass bottles from the retailers and convert them into a reusable product thus saving 
cost and additional resources. 

4. Promotion Mix:-
Promotion in the marketing mix of Coca-Cola usually refers to how the company
communicates with its customers and stakeholders. ​Coca Cola sets the benchmark 
for advertising and branding. The promotional strategy of Coca Cola uses both 
above the line and below the line promotion techniques while focusing on its target 
customers, which are generally youths. T ​ he cost of maintaining the position of the
global leader in the beverage industry is not cheap. The total advertising spending
for the year 2018 was approximately $4.1 billion.

The company promotes the products using various ​media like TV, online ads, print 
media, etc in english and regional languages. They are promoted using the famous 
movie stars, the well-known faces or sometimes young people so that the people 
can easily relate. Some of the popular examples of promotion by the company is the 
“Taste the Feeling” Campaign launched by Coca Cola In India in March 2016 which 
seeks out to remind its customers about the joyous and happy moments Coke brings 
to their lives. Coca cola also portrays various taglines in their ads to create a lasting 
impact in the minds of the customers. Some of the taglines used by coca cola in the 
past include-Taste the feeling, Make it real, open happiness, etc. 

The company also makes use of different sales promotion techniques. For example,
Special incentives such as discounts,gifts, etc. are given to the distributors and 
retailers for pushing Coke products. Also these retailers are given refrigerators and 
Coca Cola hoardings for advertising the brand. At supermarkets, special emphasis is 
given on the shelf spaces to generate more visibility of its products. Coca Cola also 
engages in various CSR activities to help support environmental and social issues 
across the globe. 
 
The Coca-Cola Company has a long history of sponsoring major events,
organisations and projects. It is the sponsor of American Idol, Apple iTunes, BET
Network, NASCAR, NBA, NCAA, the Olympic Games, and others. It is the longest
continuous corporate partner of the Olympic Games. The company’s partnership
with the Olympic Games started in 1928 with the Amsterdam 1928 Olympics (The
Coca-Cola Company, 2020). The Coca-Cola Company has also been one of the
longest-standing corporate partners of FIFA since 1974. The partnership has been
extended until 2030 (FIFA, 2017).

Hence, all these points give an overview on Coca Cola marketing mix which​ clearly
depicts that the company is determined to build a successful global brand by making:
human connections, remain innovative, and at the same time, stay true to simple
principles. These are all Coca-Cola’s global marketing techniques that have
contributed to the company’s place as an industry leader, even after 125 years.
PepsiCo:-
Marketing Mix of Pepsi analyses the brand which covers 4Ps (Product, Price, Place,
Promotion) and explains the Pepsi marketing strategy. As of 2020, there are several
marketing strategies like product/service innovation, marketing investment, customer
experience etc. which have helped the brand grow.

Let us study the Pepsico Marketing Mix:-

1. Product MIx:-
Pepsico has a large portfolio of products including beverages and snacks which are
available in over 200 countries and territories and tailored to meet the tastes and
preferences of our local consumers. Pepsi is a well-recognized and highly popular
brand. Rivaled only by Coca Cola, Pepsi has grown to become a leading soda brand
loved by the young generation. It has a large portfolio of products of which 22 are
billion-dollar brands. Here is the product mix of Pepsi
● Product line:-​The products in the Pepsi marketing mix are mainly
carbonated beverages, along with fruit juices, snacks etc. The
company’s main Carbonated Soft Drink is the Pepsi cold drink. The
other soft drinks apart from Pepsi are the ones like Mountain Dew &
7up. The company has also ventured into the areas of chips and
wafers like Lays, Cheetos and Kurkure which cater to the various
sections of the people. They have stringed up a lot of variety of
products within these products like Diet Pepsi, 7Up Revive to name
among a few. The company has further ventured into the products like
Lipton tea and the Tropicana juices. PepsiCo are catering to a wide
variety of markets and are making their presence felt in almost all the
food and beverage sectors.
● Packaging and Labelling:-
Throughout the years, Pepsi has committed to packaging that both
furthers themselves, while embracing other people’s lifestyles, hobbies
and values.Pepsico’s products are available in various shapes and
sizes. For example its core product the Pepsi cold drink is available in
200ml, 500ml, 1ltr, 1.5ltt and 2ltr bottles in cans, glass and plastic 
bottles. Over the past years the company has adopted sustainable 
packaging which expresses the company’s Performance with Purpose 
vision and commitment to build shareholder value by making PepsiCo 
a truly sustainable company through programs that reflect our focus 
on economic growth, improving communities and environmental 
stewardship. 
  
PepsiCo is committed to develop packaging that:  
• Supports continued shareholder growth  
• Exemplifies Best-in-Class design and use of materials  
• Maintains the highest quality and hygiene standards expected of our 
products by consumers  
• Provides optimal protection for our products and trademarks 
• Meets value, cost and performance criteria that satisfies consumer 
and customer desires  
• Strives for the smallest possible environmental footprint  
 
Pepscio has adopted a nutritional labelling policy as it is committed to 
helping consumers make informed choices through fact-based, simple 
and easy-to-understand information about how the key nutrients in 
each product fit in a balanced and healthy diet. Under this policy the 
company displays the following information:- 
1. the amount of energy (as calories, kilocalories or kilojoules), 
protein, carbohydrate, total sugars, total fat, saturated fat and 
sodium per 100g/ml or per serving 
2. the percentage of the official Guideline Daily Amounts, Daily 
Values or equivalents for energy, total fat, saturated fat, 
sodium/salt and total sugars 
The company also uses regional labelling in certain countries to attract the local 
consumers. For example​ Pepsi cola bottles and cans sold in Hindi-speaking areas
sport words such as ‘bindaas’ and ‘dhamaal’ written in Hindi.

2. Price Mix:-

PepsiCo’s prices are considerably varied because the company has a wide product
mix.
PepsiCo’s main pricing strategies are as follows:

1. Market-oriented pricing strategy:-

Market-oriented pricing is a method of pricing in which price is based on current

market conditions.
Most of PepsiCo’s products are priced based on the market-oriented pricing
strategy. The company uses this strategy while fixing prices in the non
alcoholic beverages. This is because Coca Cola​ and Pepsi are archrivals and
so the price competition between the two is heavy. Thus the two brands price
 their products competitively. This pricing strategy is mainly aimed at driving
customer loyalty by keeping the products average priced and accessible for a
larger customer segment without creating an impression of low-quality
products and ​to ensure that its prices are competitive, based on other firms’
prices and prevailing market conditions. ​.

2. Hybrid Everyday Value pricing strategy:-

This pricing strategy was formulated by pepsi especially for its soft drinks. ​The
company’s objective in using this pricing strategy is to close the gap between
regular/everyday prices and discounted holiday prices. In this way, PepsiCo
expects consumers to buy more of its soft drinks everyday and not just during
the holidays. ​For example the price for a 12-pack of 12-ounce cans of Pepsi would
settle somewhere between $2.50, which is how low it can get now with holiday
discounting, and $5.99, which is about as high as the current “everyday” price gets.

Apart from this Pepsi is known to give promotional discounts as well as discounts on bulk
buying. For customers, as the container size rises, the discounts also rise. Thus a 2 litre
bottle of Pepsi will be relatively cheaper per 100ml as compared to a 250 ml pack.

3. Place Mix:-
Pepsi and its products are available in more than 200 countries worldwide. Pepsi has
an extensive market presence which is a result of its well-set distribution network.
The brand uses a variety of distribution systems based upon the customer needs,
product characteristics as well as local trade practices. The distribution strategy in
Pepsi marketing mix is focused on distributor relationships and maintaining an
extensive network of retailers, grocery stores, restaurants, supermarkets etc spread
globally. Following the are different types of distribution systems used by the
company:
● Direct Store Delivery:-
Pepsi operates to make direct delivery of snacks and beverages possible in 
the retail stores. Its bottlers operate in a direct store delivery systems. 
Direct-store-delivery enables them to appeal to their customers directly.
● Customer warehouse:-
The customer warehouse system is a less expensive distribution channel. It’s
ideal for products that are less fragile and perishable, have lower turnover,
and are not purchased impulsively.
● Third-party distributor systems:-
PepsiCo appropriates nourishment and drink items to eateries, organizations,
schools, and stadiums through outsider sustenance administration and
distributing merchants and administrators.
 ● Online shopping:- Online shop is an emerging distribution channel in recent
years. People intend to buy drinks online, especially using mobile phones to
order the soft drinks which inevitably saves time.
● Vending Machines

Several of Pepsi's soft drink distributors themselves might act as distributors of

snacks products as the distribution is done through the same channel. The products
are also sold from the same convenience store. Thus, it makes sense if the
distributor of the soft drink is given the authority to distribute snacks as well.
However, in some cases, the distributor of soft drinks might be separate from that of
Snacks. The company also makes efforts to collect plastic and glass bottles for
reuse since it has adopted the sustainable packaging policy.

4. Promotion Mix:-
P​epsiCo promotes its products to attract target customers. This element of the
marketing mix covers the marketing communications strategies and tactics that the
company uses to reach its customers. The company has spent almost 2.6 billion
dollars during the year 2018 for promotional activities. The following are the tactics in
PepsiCo’s promotional mix, arranged according to significance:
1. Advertising:-
Advertising is PepsiCo’s primary tactic for marketing communications. The
company is popularly known for using celebrity endorsers to promote its
products on TV, radio, print media, and online media ​for a 360 degree
branding​. The firm also advertises through business signs it sponsors or gives
to stores and other establishments. It also makes use of catchy phrases to
create a lasting impact in the minds in the customers
2. Sales promotion:-
PepsiCo occasionally applies sales promotions, such as package deals or
discounts to encourage distributors and customers. Sale promotional activities
adopted by Pepsi are:-
A. Premiums (Gifts)
B. Point purchase display and demonstration
C. Discount
D. Scratch Card
E. Dealers’ sales contest
F. Special event market
3. Personal selling:-
Conceptually there is not any place for personal selling in the soft drink
industry. It falls into illegal trade. However Pepsi adopts a surrogate nature of
personal selling.
 As soft drink allows the company to communicate frequently and directly with
wholesalers and retailers than consumers. For clear and reliable
communication, the company appoints “Territory sales executives” in every
market segment. The main work of territory sales executives is to
communicate with wholesalers and retailers of their concerned market
segments on a regular basis. Besides they also play the watchdog in the
market. They observe the brand position in the market and compare it with
competitor’s brand and place the report to area sales manager

4. Public relations
Pepsi uses “Marketing Public Relation (MPR)” where the company directly
supports corporate product promotion and image making. To promote its
products through Marketing Public Relation, Pepsi has various tools:-
● Organizing events​: Pepsi organises, sponsors and cosponsors
various games and sport events to get publicity, through electronic and
print media.
● Music and Dance Programme:​ Time to time, Pepsi sponsors various
music and dance programs in different cities across the country.
● Pepsi also engages in various CSR activities to help support 
environmental and social issues across the globe. Sustainable 
packaging and nutritional labelling are some of the CSR initiatives of 
the company.
This type of events organized by Pepsi has become very helpful in:-
i. Building the corporate image favourable in public
ii. Boosting the sales force and dealer enthusiasm. They feel proud to speak about
its products
iii. Influencing specific target market and bringing interest in product category

Pepsi has built its strong market reputation in the market as the leading company for 
soft drinks and food and snacks industry and its strong marketing strategies always 
try to maintain its competitive position in the market and to compete effectively with 
its market rivals, especially Coca Cola. Pepsi always remains in the spotlight with 
participating in different events and using marketing tactics to make it successful to 
get competitive advantage and that is the key for Pepsi success.

PEST Analysis:-
Coca Cola:-
Political:-

The most important political factors which can have a direct impact on Coca Cola are laws
and government regulation of food products. For example in the US, the Food and Drug
regulations apply to its business. Apart from it, these laws may vary from country to country.
Coca Cola and its products must confirm to the relevant laws in the countries they are sold.
However, apart from the food and beverages related regulations and the quality standards,
the business is also subject to the common accounting or business regulations. Tax laws
vary from country to country. The company has to follow the relevant laws in order to do
business in a particular market. Changes to these laws can potentially impact Coca Cola’s
profits and revenue. Any increase or decrease in tax rates can affect the profits of any
corporation. For example the UK introduced the sugar tax called Soft drinks industry Levy
during the year 2018 which affected the sales of coca cola in Britain. Similarly, changes in
the political situation of the countries like government changes or any political turmoil can
potentially impact its business.

Economic Factors:-
Coca cola is affected by several Macro environment factors such as – inflation rate,
savings rate, interest rate, foreign exchange rate and economic cycle determine the
aggregate demand and aggregate investment in an economy. While micro
environment factors such as competition norms impact the competitive advantage of
the firm. The global economic and financial crisis of 2007 – 2009 is a relevant
example of an economic factor that greatly impacted the majority of businesses
around the globe. However, the crisis has impacted Coca Cola to a lesser extent
compared to many other businesses. Its operating margin remained at industry-front
22% despite the crisis, although dividend yield was reduced to 2.6%.
Arguably, fluctuations in exchange rate is the most significant economic factor that
has adversely impacted Coca Cola performance in recent years. For example, due
to severe currency devaluation in Venezuela, Coca Cola’s reported profits in this
market has to be reduced by 55% in the fourth quarter of 2014 and there are similar
instances in other parts of the world.

Social Factors:-
The pursuit of a healthy lifestyle and increasing level of consumer health concerns towards
obesity fuelled by sugar and carbonated drinks can be specified as the most important social
change that has direct and significant effect on Coca Cola performance. Therefore Coca
Cola had to focus and invest more on its marketing efforts and introduce several low calorie
products to adopt to these changes. Media has also played an important role in changing
people’s perception of soda drinks which are mainly seen as ‘loaded with calories’. Coca
Cola is also greatly impacted by an additional range of social factors such as demographic
changes, changing family values and family patterns, media perception of the brand and
health and welfare of the target customer segment.

Technological:

Technology is an important factor for large businesses like Coca Cola. Their production and
packaging as well as distribution, depend heavily on technology. In order to remain
profitable, Coca Cola has to invest heavily in it. Technological efficiency ensures timely
production and an efficient supply chain. All these factors are important for generating
revenues.

Coca Cola has also used social media technology to connect with audiences. When they
launched their name campaign — putting real names on their bottles — customers lined up
to take photos of bottles with their name on it. These photos trended on social media sites
like Facebook, providing social proof and encouraging Coca Cola sales. Coca Cola is also
embracing

Pepsico:-

Political Factors

Governments are external factors that impose requirements on PepsiCo. This

element of the PESTEL/PESTLE analysis considers the effects of governmental
action on companies’ remote or macro-environment. PepsiCo must address the
following political factors:
1. Political stability in major economies:-
Political stability also means economic stability in most cases and in turn it
means flourishing businesses. Several times, political instability leads to a
decline in consumer purchasing power and therefore can result in lost sales.
Government and politics both have an important impact on how profitable
businesses can operate. For example, ​when the U.K. withdrew from the 
European Union in January 2020, Pepsi suffered because then it can lead to 
change in its operational activities because of the new laws and government 
policies.
 2. Improved intergovernmental cooperation:-
The trend of intergovernmental cooperation improves opportunities for global
expansion. ​It is why the big brands also spend significantly on lobbying to
make the business environment more favorable. Pepsico spent $2,380,000 in
2016 on lobbying according to an opensecrets.org report. Increased
collaboration with governments of other nations means better market
conditions for Pepsi in foreign markets.
3. Government initiatives against carbonated drinks:-
Government initiatives against sweetened carbonated drinks are a threat that
could reduce PepsiCo’s revenues from affected segments. For example the
soda tax introduced in the US during the year 2017 affected the sales of the
company

Economic Factors

Social
PepsiCo is affected by the changes in their target market. Meaning, fluctuations in
lifestyles, money spending, and buying behavior impact sales and revenue. For any
company, these changes can be positive or negative. The following are notable
sociocultural external factors relevant to PepsiCo’s business:
1. Higher health consciousness:-
Higher health consciousness is a threat to PepsiCo because of concerns about the
sugar, salt, and fat content of its products. Consumers are focused on making
healthy lifestyle choices. Besides exercising, this often means improving their diet.
Buying and drinking soda is at an all-time low right now. In fact, the beverage of
choice for consumers is now water. As a result of this the company keeping their
oldest and beloved products have started reformulating and offering new products
for the health-conscious consumers. They’ve reduced the amount of sugar in their
7Up products. They’ve also launched a probiotics drink line to branch into the
healthy juices market.
2. Increasing busy lifestyles;-
PepsiCo can also take advantage of the busy lifestyles of consumers, especially in
urbanized and industrialized markets around the world. People with these lifestyles
are more likely to purchase ready-to-eat food products like those of PepsiCo.

The importance of the social factors for the brands that cater to the needs of diverse
societies in diverse nations becomes higher. Social trends can have favorable or
unfavorable effects Pepsico. Their sales are influenced by the changing customer
demographics, aging of the population and similar other trends. Pepsico is also
required to maintain high ethical and social standards and focus on their social
responsibility to maintain a good social image. The social image of a brand has a
direct relation with its business. The better its social image, the better is the condition
of a brand’s sales and profits.

Technological Factors

Technological factors too have a major impact onPepsico. Pepsico has a massive
technological infrastructure where technology is used in all areas from marketing and supply
chain to HR and finance. Apart from it technology is also in production, sourcing and supply
chain. Technological efficiency ensures timely production and an efficient supply chain. All
these factors are important for generating revenues. Another important area where Pepsi
has made a huge investment in technology is R&D. Pepsico has spent almost 711 million us
dollars on research and development during the year 2019. Pepsico has also ventured into
the use of artificial intelligence, machine learning, and digital bots in its operations.

Since, the technology has disrupted the ways companies are marketing their products; Pepsi
needs to be in pace with the evolving technologies. Social media platforms like Youtube,
Instagram and Facebook play a very important role in reaching out to the youth which is their
main customer. The ad campaign run by Pepsi on Youtube “Back to School” very aptly
touches the Indian youth’s heart. The picturisation of the song “School Khatam ho raha hai
dosti nahi” makes a strong connection to its audience. This is supported by the fact that the
ad has more than 5 million views on Youtube.

Pepsico is also embracing the growth of e-commerce by choosing online grocery stores as a
way to expand the deliverability of its beverage and snack product portfolio .