Loyola Institute of Business Administration

Marketing Management II

COKE AND PEPSI: FROM GLOBAL TO INDIAN ADVERTISING

Submitted by:
Group 5 Section B
Sai Prasanna R - F20109
J Jeffry Infant - F20089
Jiji J - F20091
Reston Richard Rodrigues - F20107
Shachi Gupta - F20112
Shogun Regi F20114
1. What is the role of advertisement in carbonated soft drinks?

The advertisement creates a huge sense of market in the soft drinks

industry. The main example is Coco-cola with its huge brand value. In 2013,
Coca-Cola and PepsiCo spent $3.3 billion and $3.9 billion, respectively, on
advertising and marketing activities which made a huge impact in the
minds of the people. Coco-Cola runs around 17 brands and Pepsi around
21 brands which gives a value of more than a billion each which has been
due to its marketing and advertising. Coco-Cola has come out to be third
most valuable brand and its close competitor being Pepsi which is 24th
most valuable brand. The campaign allowed fans to put their names or
those of their family and friends right on the front of Coca-Cola bottles or
cans, effectively personalizing the product. Thus, Advertising has played a
vital role in carbonate soft drinks as a whole as it made them survive in the
market and get themselves to world level and get themselves a name
worldwide. India being a country influenced by mainly 2 fields: cricket and
movies. Cricketers and actors were paid much to make their brand more
attractive and have better reach.
2. Analyse the advertising strategy of each carbonated soft drink brand

COMPANY BRAND Ad Spend Per Ad Spend Per Ad Spend Per

Share Point (2007) Share Point (2008) Share Point (2009)
COCA-COLA CO. COCA-COLA 43.41 63.75 114.47
SPRITE 24.54 41.97 60.20
FANTA 19.04 19.76 54.98
THUMS UP 23.97 32.66 54.03
LIMCA 22.98 30.98 89.34
AVERAGE 26.788 37.824 74.604
TOTAL OF AVERAGE AMOUNT SPENT IN ADVERTISING FOR 3 YEARS 139.216
PEPSICO PEPSI 37.58 13.54 50.39
MOUNTAIN DEW 49.84 61.26 61.26
7 UP 90.14 22.37 72.38
MIRINDA 29.03 5.55 31.70
AVERAGE 51.648 25.68 46.43
TOTAL OF AVERAGE AMOUNT SPENT IN ADVERTISING FOR 3 YEARS 123.75

Among the two company The Coca-Cola Company has the more expensive
advertisement spending strategy. In 2007 Pepsico had spend almost double in
advertisement as compared to The Coca-Cola Company but in the remaining 2
years Pepsico cut their costs for advertisement by a huge margin. When we see
the total of average amount spent in advertising for 3 years we observe that The
Coca-Cola Company has spent around Rs 16 million more than Pepsico.
3. Comment on the advertising spend strategies of the two companies and
their brands

Coco-cola:

Being one of the strongest soft drink brands

in the world, coke has a lot of advertising
strategies of their own. These strategies
helped them to became one of the leaders
in the same segment. They executed lots of
unique advertisements by conducting wide
variety of research across the globe. All
these advertising strategies helped them to
target and acquire their potential
customers globally. The major advertising
strategies used by coke are billboards, print
medias, TV commercials etc. Apart from all
these, they have always used innovations to
stay in the global market as leaders.
Pepsi:
Pepsi turned 55 in 2020. Over the years they
were able to create a strong brand name and a
huge fan base in the minds of the customers
across the globe. They are always interested
and focused on celebrity ads. World famous pop
singers and sports stars have been part of the
Pepsi ads over the years. Like their major
competitor coke, they too give importance to
human relations and innovations. They always
focused on providing interesting contents that
make their customers always engaging which
ultimately helped them to sustain in the market for long years with heavy fan
base.
Thumps-up:
Thumps up launched attacking ad campaigns directed
at its rival brands. It also focussed on its strength and
launched Grow up to Thumps Up. Its
descriptive ads caught the imagination of Indians and
became number one cola drink in India. Thumps up
has been an iconic drink with a strong presence in
Indian market. It has targeted all age
group people from lower, upper and the middle-class
section of society as its potential customer.

Limca:
Limca is promoted through advertisements in
print and digital media by targeting the
consumer behaviour and lifestyle of the targeted
segments. They always try to associate their
brand with freshness and that reflects in
their promotional strategies too. celebrity
endorsements are a core part of Limca’s
promotional strategy and it enables the product
to pull its demand in the market. Hence this completes the Limca marketing
mix.