PAPSI AND COCA COLA

Assignment on Marketing

Mohd Akib Ansari

Cource MBA –IBM 3 SEM
ROLL NUMBER 1944126
SEC A
Submitted to Faculty
Mr Prof Mukesh Ranga
INTRODUCTION AND HISTORY
• Pepsi is a carbonated soft drink manufactured by PepsiCo. Originally
created and developed in 1893 by Caleb Bradham and introduced as
Brad's Drink, it was renamed as Pepsi-Cola in 1898, and then
shortened to Pepsi in 1961.

• HISTORY
Pepsi was first introduced as "Brad's Drink" in New Bern, North
Carolina in 1893 by Caleb Bradham, who made it at his drugstore
where the drink was sold. It was renamed Pepsi-Cola in 1898, "Pepsi"
because it was advertised to relieve dyspepsia (indigestion) and "Cola"
referring to the cola flavor.
 INTRODUCTION AND HISTORY
Coca Cola The Origin of Coca-Cola On May 8, 1886, Dr. John Pemberton
sold the first glass of Coca-Cola at Jacobs' Pharmacy in downtown Atlanta.
Serving nine drinks per day in its first year, Coca-Cola was new refreshment in
its beginning. See the story here of how it all began.

History
The Coca-Cola Company, American corporation founded in 1892 and today
engaged primarily in the manufacture and sale of syrup and concentrate for
Coca Cola a sweetened carbonated beverage that is a cultural institution in the
United States and a global symbol of American tastes. The company also
produces and sells other soft drinks and citrus beverages. With more than 2,800
products available in more than 200 countries, Coca-Cola is the largest beverage
manufacturer and distributor in the world and one of the largest corporations in
the United States. Headquarters are in Atlanta, Georgia.
 MARKETING MIX 4Ps
INTRODUCTION
Marketing mix is the combination of different marketing decision variables being used by
the firm to market its goods and services. After identifying the market and gathering the
basic information about it, the next step is the direction of market programming, is to
decide upon the instruments and the strategy to meet the needs of the customers and the
challenge of the competitors. It offers an optimum combination of all marketing
ingredients so that companies can realise goals for example profit, sales volume, market
share, return on investment etc.The marketing mix is grouped under four elements ie.,
Product, Price, Place, Promotion [1]. A profitable formula of marketing operations is that
mostly marketing mix changes as per marketing conditions and also with changing
environmental factors.The marketing mix is a set of controllable variables that the
company can use to influence the buyers responses. Thus marketing manager decides the
level of marketing expenditure in order to achieve marketing objectives of the firm and
after finalising the market budget it is decided that how to divide total marketing budget
among various tools in the marketing mix. Marketing decisions are categorised in the
following

Table No 1 Elements Of 4Ps

Product Variety Features Quality Design Sizes Brand Packaging
Services
Warranties
Price List price Discounts Allowances payment period
Place Channels Coverage Assortments location inventory
Transport
Promotion Sales Promotion advertising Public Reactions
Direct Marketing
Price
• Earlier Coca-Cola used cost based pricing, but later on when
competition started, now Coke has shifted to competitive pricing
strategy.The price of Coca Cola also depends onits products and
sizes.Prices range from Rs.25 to 110. Pricing is done keeping in
view theincreasing with Pepsi.

PRICE cont..
• Pricing is basically standard for all over theworld.Each sub-brand of
Coke has different pricingstrategy according to the market and
 itssegments.Coke spends more on advertising than
manufacturing.Pricing is done keeping in view the increasing with
Pepsi.

PROMOTION
• Coco-Cola is commonly known all over the world because of their
great marketing strategy. It includes variety of methods to present
their product:
• Uses famous people to advert their product
• Advertising in TV and magazines
• Sponsorship activity

SALES PROMOTION ACTIVITIES

• Coca Cola Cricket
• Coca Cola Concert
• Coca Cola Food Mela
• Coca Cola Basant Festival
• Coca Cola Ramzan Campaign
Product
• Pepsi is made with carbonated water, high fructose corn syrup,
caramel color, sugar, phosphoric acid, caffeine, citric acid and natural
flavors.Pepsi is available in many flavors according to needs and
wants of customers. PepsiCo produced two types of
products:Beverages foods
Segmentation, Positioning and Targeting Of
Coca-Cola
• Segmentation:Dividing a market into distinct groups with
distinct needs, characteristics, or behavior who might require
separate products or marketing mixes.
• Targeting Consists of a set of buyers who share common needs
or characteristics that the company decides to serve
• Positioning:The place the product occupies in consumers' minds
relative to competing products. Involves implanting the brand's
unique benefits and differentiation in the customer's mind.
Segmentation
• Coca cola segments its market on following factors:
• 1. GEOGRAPHIC SEGMENTATIONIt varies according to the taste and
income level of the people in that country. I.e.: third world countries
are given low quality and taste.Coke segments its products country
wise and region wise.
• 2. CLIMATIC SEGMENTATION In coke marketing, main idea is to serve
it cold, so we that theyfocus on hot areas of the world.
• 3. LOCALY SEGMENTATIONIn India the coke segments more in urban
and suburban areasas compare to rural areas
Targeting
• Coca Cola doesn't target a specific segment but adapt its marketing
strategy by developing newproducts. Main consumers are 12-30
years old people; even if there is no specific product or
communicationfor less than 12 or more than 30. No occupation
targeted but consumers are mainly students and family oriented
people.Age group from 18-25 that covers around 40% of total age
segments. No life style targeted but more and more busylife style and
mobile generation (youth) areconsidered to be the most important
part ofCoke's consumers.
Positioning
• Coca Cola has strategically positioned itself within the world soft
drink market. Brand sells its products in 200 countries in worldThey
use strategic positioning in order to have the same image all
around the world. Coca Cola has been successful by using
UniqueSelling preposition as "Live the coke side of life", related to
joy and happiness. When the name of Coke is mentioned, thefirst
thing that comes into mind is fun andentertainment
Segmentation, Positioning and Targeting Of
Pepsi
• Pepsi has segmented their market keeping four major segmentation
which are:
• ► Geographic
• ➤ Demographic
• ►Psychographic
• ►Behavioral
Targeting
• Pepsi has historically targeted a young audience especially since the
1980s.Many of their ads were usually aimed at teenagers and even
younger groups byintroducing fun, sports and music in their
ads.Pepsi also attracts other age groups not only teens. Pepsi
targeted the every class of Pakistan whether itis a Middle, Upper and
lower class.Pepsi targeted the South Asia Region throughCricket
Sponsorship in that region.
Positioning
• Firstly the Pepsi in America try to position its product for the society
as whole andfor the purpose of refreshment. Pepsi's goal is Attract
a certain set of customers to buy the product byassociating itself
with young people who are energetic, fun loving and daring.Low
quantity of cafeen.Available in regular size.

SWOT analysis of Coca - Cola

• Strength
• Weaknesses
• Opportunities
• Threats

Strength Coca Cola

• Coca Cola holds the largest beverage market share in theworld
(about 40%) Coca Cola' advertising expenses accounted for more
than $3 billion in 2012 and increased firm's sales and
brandrecognition. Coca Cola serves more than 200 countries.The
Coca Cola Company is the largest beverage producer in the world
and exerts significant power over its suppliers to receive the lowest
price available from them
Weaknesses Coca Cola
• Significant focus on carbonated drinksThe firm is often criticized for
high water consumption in water scarce regions and using harmful
ingredients to produce its drinksCoca Cola currently sells more than
500 brands but only few of the brands result in more than $1 billion
sales. Plus, the firm's success of introducing new drinks is weak.
Many of its introduction result in failures, for example, C2 drink.
Opportunities Coca Cola
• Consumption of bottled water is expected to grow both in US and
the rest of the world.Coca Cola Company has an opportunity to
further expand its product range with drinks that have lowamount of
sugar and calories. Coca Cola will find it hard to keep current growth
levels and will find it hard to penetrate new markets with its existing
product portfolio. All thiscan be done more easily through acquiring
othercompanies
Threats Coca Cola
• Consumers around the world become more health conscious and
reduce their consumption of carbonated drinks, drinks that have
large amountsof sugar, calories and fat.Water is becoming scarcer
around the world and increases both in cost and criticism for Coca
Cola over the large amounts of water used in production.on product
labels.decreasing over the past few years

SWOT Analysis of Pepsi

• Strength
• Weaknesses
• Opportunities
• Threats

Strength Pepsi

PepsiCo has several hundreds of brands.PepsiCo serve customers in

more than 200 Successful marketing and
advertisingcountries.campaigns. More than $2 billion spent
onadvertising.
Weaknesses Pepsi
• ► PepsiCo usually prices its products lower than its competitors
• The Coca Cola Company has the largest share market of beverages in
the world and much stronger brand awareness than
• Pepsi, placing it at competitive disadvantage. PepsiCo's net profit
margin is 9.7% comparedto Coca Cola's 18.55% and Nestlé's 11%.

Opportunities Pepsi
• Due to increase in demand for healthy food and beverages
• Consumption of bottled water is expected togrow in future.
• opportunity PepsiCo has in growing its revenue selling snacks as this
market is alsoexpected to grow.

Threats Pepsi
• Consumers around the world become more health conscious and
reduce theirconsumption of carbonated drinks.
• PepsiCo's gross profit margin was decreasingover the past few years.
• Some researches show that particularingredients, consumed in extra
large quantities, in some of PepsiCo products could cause cancer. For
this reason, many governments consider to pass legislation that
requires disclosing such information on product labels
Conclusion COCA COLA
PEPSI
• Coke is the market leader with 54% market share
• .Pepsi is having only 46% market share
• Coke and Pepsi hold almost 75% the whole market
• That Pepsi is the leading brand of PepsiCo, with 29% market shareof
its total market share.
• Thumbs up is the leading brand of coke with market share of
cokecola.