Name : Rya Anggreni Supeno

SIN : 20061102275

Class : 6B-IBA

“Global Marketing : find a case of a global company based on the 6 materials before (1 case)
give comments, analysis”

CASE : WAR STRATEGY BETWEEN COCA COLA VS PEPSI COLA

In contrast to the strategy of cost advantage and differentiation, especially the first
one which pays attention to the entire market (industry), the focus strategy tries to focus the
company's attention on serving only one particular market segment. The selection of these
market segments can be based on the unique characteristics of the marketing area or the
unique attributes of the goods needed by these market segments. The focus strategy,
therefore, starts with choosing a particular market niche that has a preference for specific
goods needs. The company's competitive advantage in serving this market niche can be built
by selling goods at lower prices than competitors (cost focus). Besides that, companies can
also build competitive advantage based on their ability to differentiate the goods offered to
selected market segments (differentiation focus). on the market as a whole. Risk also arises
because competitors are able to find strategies to enter market segments that were
previously only targeted by companies implementing a focus strategy. Usually competitors
are able to find business opportunities that come from a specific part of an existing market
niche: a niche within a niche. Failure may also occur because the attractiveness of entering a
particular market niche becomes greater which in the end invites the entry of competitors.
Potential competitors become real competitors. This new attraction is usually born because
the market niche is actually experiencing growth, quantitatively and qualitatively, which is
quite rapid.

In contrast to the strategy of cost advantage and differentiation, especially the first
one which pays attention to the entire market (industry), the focus strategy tries to focus the
company's attention on serving only one particular market segment. The selection of these
market segments can be based on the unique characteristics of the marketing area or the
unique attributes of the goods needed by these market segments. The focus strategy,
therefore, starts with choosing a particular market niche that has a preference for specific
goods needs. The company's competitive advantage in serving this market niche can be built
by selling goods at lower prices than competitors (cost focus). Besides that, companies can
also build competitive advantage based on their ability to differentiate the goods offered to
selected market segments (differentiation focus).
 However, the risk of possible failure can still occur because there are changes in the
tastes of the target market niche and lead to trends in general tastes prevailing in the market
as a whole. Risk also arises because competitors are able to find strategies to enter market
segments that were previously only targeted by companies implementing a focus strategy.
Usually competitors are able to find business opportunities that come from a specific part of
an existing market niche: a niche within a niche. Failure may also occur because the
attractiveness of entering a particular market niche becomes greater which in the end invites
the entry of competitors. Potential competitors become real competitors. This new
attraction is usually born because the market niche is actually experiencing growth,
quantitatively and qualitatively, which is quite rapid.

Coca-Cola profile

Coca-Cola was first introduced on May 8, 1886 by John Styth Pemberton, a pharmacist
from Atlanta, Georgia, United States. It was he who first mixed the caramel syrup which
became known as Coca-Cola. Frank M. Robinson, John's friend and accountant, suggested
the name Coca-Cola because he thought that two C's would stand out for advertising. Then,
he created the name in flowing italics, Spencer, and the world's most famous logo was born.
Chandler is skilled at creating consumer attention by creating various kinds of souvenir items
bearing the Coca-Cola logo. The objects are then divided up at key selling locations on an
ongoing basis. Innovative advertising styles, such as colorful designs for buses, decorative
glass chandeliers, and a range of souvenirs such as fans, dates and clocks were used to
promote the Coca-Cola name and drive sales.

At first, efforts to advertise the Coca-Cola brand discouraged the use of the word Coke,
and instead consumers were encouraged to buy Coca-Cola with the following words: "Ask for
Coca-Cola by its full name; nicknames will only encourage substitution of the product for
other words." But consumers still wanted Coke, and finally in 1941, the company followed
the popular tastes of the market. That same year, the trade name Coke earned the same
advertising recognition as Coca-Cola, and in 1945, Coke officially became a registered
trademark.

Coca-Cola is the most popular and best-selling soft drink brand in history to date.
Created for the first time in Atlanta, Georgia by Dr. John S. Pemberton.

We first introduced Coca-Cola as a fountain drink by mixing Cola-flavored syrup and

carbonated water. First registered as a trademark in 1887, by 1895 Coca-Cola was being sold
throughout the United States. Now Coca-Cola has been around the world
Sales of Coca-Cola

In Indonesia, soft drinks are easily available in various places, from food stalls to small
shops. Soft drinks are consumed by all levels of society from various educational and
occupational backgrounds. In 2001, Indonesia recorded the lowest level of consumption of
Coca-Cola products (only 13 servings measuring 236ml per person per year), compared to
Malaysia (33), Philippines (122) and Singapore (141).

Because soft drinks are goods whose demand is price elastic, various efforts have been
made to keep the prices of soft drink products affordable. 80% of soft drink sales are carried
out by retailers and wholesalers where 90% of them fall into the category of small
entrepreneurs. For these small entrepreneurs, soft drink products are their most important
merchandise with a contribution of 35% of total sales and a profit value of 34%.

Coca-Cola marketing

At Coca-Cola, our Customer Service System (CSS), our customer service system, is
designed to continuously increase consumer satisfaction and loyalty to Coca-Cola products
by providing optimal service to all customers based on their individual needs. The goal of
Coca-Cola CSS is to create ideal outlets throughout Indonesia. Coca-Cola customers benefit
from regular service, merchandising, equipment, and innovative special programs. This
distribution system relies on two groups of small and medium enterprises which are divided
into two major groups: Area Marketing Contractor (AMC) and Street Vending.

Coca-Cola will continue to develop partnerships with SME entrepreneurs, because

apart from being mutually beneficial for both parties, this collaboration creates great job
opportunities. Up to now, 80% of Coca-Cola's sales are made through retailers and
wholesalers, the number of which is almost 500 thousand, of which 90% are included in the
category of small entrepreneurs with less than 5 employees.

Ready-to-drink product producer Coca-Cola will continue to boost its market

penetration this year. The 2010 World Cup event in South Africa, where Coca-Cola is the
official sponsor, will be used as a momentum to increase brand image as well as expand
market share.

To expand penetration, Coca-Cola continues to implement a number of marketing

and sales strategies that are considered to boost performance. Among other things, by
cooperating with restaurant business actors. Product innovation is also continuously carried
out. Currently, Coca-Cola products have 25 variants consisting of a number of brands, such
as  Coca-Cola, Sprite, Fanta and Frestea.
 In its sales, Coca-Cola recognizes two sales schemes, namely direct selling and indirect
selling. The two schemes will complement each other to increase product sales in the midst
of an increasingly tight competitive climate in the industry.

The brand image that Coca-Cola is trying to strengthen is the image of a drink that can
generate new enthusiasm and inspiration, so that its customers can always live dynamically.
The tagline used by Coca-Cola in its marketing is "Open a New Spirit".

Pepsi Cola Profile

Discovered by Caleb Bradham, a pharmacist from New Bern, North Carolina. Like
most pharmacists at the time, he also installed coke dispensers in his drugstore. He sells his
own coke. His most popular drink was named "Brad's drink" in the summer of 1898, and later
changed its name to "Pepsi Cola" after pepsin and cola seeds were used in the recipe. The
name Pepsi Cola was registered on June 16, 1903.

Pepsi Marketing

In terms of marketing, Pepsi Co. controlled more market share, marked by the many
product variants produced by Pepsi Co. ranging from soft drinks, health drinks, and also
food.

Pepsi Marketing Based on the 2008 'Beverage Digest' survey, Pepsi Co.'s market share.
in the United States reached 30.8%, while Coca Cola reached 42.7%. Meanwhile, sales of
Pepsi-Cola are more dominant in India, Pakistan, Saudi Arabia, Guatemala, parts of North
America, parts of South America, and also Russia.

If other companies last year succeeded by improving their technical capabilities

(product innovation, cost efficiency), then Pepsi Co boosted its success by improving its "soft
skills".

 leadership. Steven Reinemund argues that to become a leader in the consumer goods
industry, companies need to have a pool of leaders who understand the population in
the market they serve. It is this leadership principle that is transmitted in a chain to all
levels at Pepsi Co. Every leader in this company is required to act as a mentor and
trainer for their subordinates by setting an example not only in words, but also in
actions. One of the ways that Pepsi Co applies this leadership principle is by recruiting
local leaders. These local leaders better understand the local markets served by Pepsi
Co. They understand the tastes of the population and the lifestyle of the target market
in their respective areas, so that it is easier for companies to design effective
competitive strategies to win the competition with competitors.
 Cooperation. Apart from cultivating local leadership, another soft skill fostered by
Pepsi Co is the ability to work with other companies. The companies chosen to work
 together are local companies with products that can mutually support Pepsi Co's
beverage products. For example: Pepsi Co cooperates with restaurants so that they
also want to offer Pepsi Co beverage products to accompany the food they offer.
Through this cooperation, a lasting and mutually beneficial business relationship is
established.

The core value is to guide management and employees in making choices that may arise
at any time. Examples of the basic values that Pepsi Co implements are: Diversity - respecting
everyone's differences, Integrity - doing what is said, Honesty - speaking openly and working
hard to understand and solve problems, Teamwork - working to meet customer needs,
Accountability - earnestly meeting expectations, Balance - respect one's decision to achieve
balance in life.

Examples of Strategy Pepsi Co is pursuing in other countries During a visit to meet the
CEOs of twenty-five top supermarket chains, the CEO of Pepsi Co. compared the store's 9
percent profit margin on Pepsi products to the 2 percent profit margin generated by other
business units. He stressed that stores would increase their sales and profits by giving Pepsi
Co products more shelf space and styling Pepsi Co drinks with Frito-Lay snacks. "Power of
One" was successful, giving Frito-Lay and Pepsi a more dominant market share. The strategy
also gave Pepsi Cola drinks a major increase in sales in small convenience stores throughout
Mexico. There the Frito-Lay Sabritas brand was the market leader, thanks to a low-cost
strategy that kept retail prices as low as sixteen cents per snack.

Pepsi Co went on to buy Tropicana, a leading orange juice brand, and Cracker Jack, a
perennial favorite that had lost some of its profitability. By adding more beans and offering
four-ounce bags in addition to smaller serving sizes and larger family sizes, Pepsi Co returned
Cracker Jack to profitability within a year. In addition, through aggressive marketing, the
company has achieved top sales for its bottled water and tea products. Now Pepsi Co's
Lipton Iced Tea holds command over Coca-Cola's bottled tea, Nestea. Pepsi Co still lags
behind Coca-Cola in America, but Mountain Drew Pepsi Co is currently ahead of Diet Coke to
become the third best selling soda in the country.

Outside the US, Pepsi Co's new snack food strategy focuses on building sales and share in
developing countries such as India, where Coca-Cola is not yet an undisputed market leader.
This strategy reversed Pepsi Co's original strategy of fighting Coca-Cola in every market.
Populous Asian nations such as China and Japan are particular targets of Pepsi Co.'s snack
food business. Although Frito-Lay holds only a small portion of the snack food market in
these countries today, Pepsi Co's CEO sees his business unit as a cornerstone for future
growth.

For example, Pepsi felt compelled to launch Project's Blue in order to combat
inconsistency. Pepsi switched the red, white and blue colors to electric blue. "It's image is all
over the map" movement to match Pepsi's various colors and tones. In Hamburg a retail store
used red stripes, while in Shanghai it used white.

Pepsi Co Director and CEO Indra Nooyi continues to grow Pepsi Co, the $39 billion food
and beverage giant, through new product offerings and acquisitions. He has made major
expansions into international markets, most notably successful in his USD 1.4 billion
acquisition of a 75% stake in Russian juice giant Lebedyansky.

Nooyi's success was extraordinary. He can continue to expand into the international

market at a time when the American market for soda and snacks is declining. When asked
about the secret to his success, Nooyi explained that he continues to do his best for Pepsi Co.
One of Nooyi's breakthroughs is reducing fat and calories in all food and beverage products
and promoting a healthy and active lifestyle. In doing so, Nooyi hopes to help address the
problem of the global obesity epidemic. Staying focused on the core and soul of our business
will be the main key to success," said Nooyi.

Analysis : The strategy implemented by Pepsi Co is currently very good by carrying out
various and clever new innovations in finding gaps in attracting consumer attention, so that
Pepsi Co still survives in the competition for snacks and soft drinks in the world. This cannot
be separated from the successful hands of the leaders who continue to work in implementing
creative new strategies and their loyal employees to advance the Pepsi Co company.

There was competition between the Coca Cola Company and Pepsi Co Incorporated
for television advertising campaigns in the 1980s and 1990s.

High publicity marketing between Coca Cola and Pepsi Cola also continued into the
1990s. In 1997, the Spice Girls (at the peak of their career) signed with Pepsi. They starred in
three Pepsi commercials; released two limited edition singles with Pepsi, "Move Over" and
"Step To Me"; featured on Pepsi packaging, as well as performing two concerts in Istanbul
organized and sponsored by the Pepsi company.

And for the first time, we will see an advertisement in a magazine in the form of a
video that can display moving images accompanied by sound and music. Time Warner Inc.'s
Entertainment Weekly's magazine published in September 2009 will contain a video player
that will play CBS and Pepsi commercials. However, the magazine that contains this video is
limited, only for magazines released in New York and Los Angeles.

Video-in-print technology The video player is equipped with a mini speaker that has a
screen that is only 2 inches thin, made by the Americhip company in Los Angeles, which will
be installed in inserts of tightly bonded paper pages (like a greeting card that can play music).
Like the mechanism on a musical greeting card, the ad will play immediately as soon as the
page insert is opened. Each chip can play 40 minutes of video