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Pepsi and Coca Cola

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Background

Marketing has developed as a multi-billion industry that has employed hundreds of

individuals and affected many lives globally. However, marketing clutter has risen enormously

with great intensity. Different companies have to differentiate themselves from others to outdo

competitors by developing robust, entertaining, and innovative marketing messages and

additional event sponsorship. For instance, companies Coca-Cola and Pepsi play a significant

role in spending billions of dollars on advertisement approaches.

Problem statement

The companies have faced a problem in understanding consumer behavior toward their

products. Marketing of a product help to develop positive consumer behavior, thereby improving

buying of the company's competitors. Besides, it is also challenging to understand the need of the

targeted local market groups. Identification of local target market has posed a challenge and

struggle for multi-billion companies. Since the two global companies have similar products, their

attitude, behavior, and value frequently differ. Consequently, global marketers need to

understand the differences of companies within the same market gap and adapt individual

advertisement approaches accordingly. Failure to adjust to the current market results in the

company's disaster in their global product and advertisement programs.

The degree to which global marketing needs to be changed regarding specific customer

behavior in each state is a significant concern for several countries (Armstrong et al., 2018).

Consequently, Companies have debated standardization and adopting a marketing campaign,

which has dominated the local region and global marketing literature for years (Harris et al.,

2020). Although other distinguished global companies have shown efficacious marketing
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strategies, several multi-billion companies face problems targeting and stimulating buyers

globally, nationally, and locally through standardized advertisement programs.

Moreover, the development of the current economy has entwined compared to recent

years. Companies are straggling to obtain any method possible to support the development of

global brand market customer preference. One of the main purposes for intercontinental

marketers is to make a familiar appearance globally and locally and, at the same time, engage

with clear meaning (Fahy et al., 2019). Although marketing remains the top form of

communication for many businesses, immense alterations within, for example, technology

demand the implementation of other advertisement approaches other than traditional marketing

communication objects. Furthermore, companies employ several advertisement communication

programs to maintain and develop a competitive advantage over others within the same market

(Erdogan et al. 2018).

Several advertisement research done in the past merely suggest the most appropriate form

of marketing by evaluating existing programs. Even though particular marketing can be more

memorable or drive huge attention than the rest, it is not apparent that it has a definite connection

with customers' preferences and the company's success in sales (Hartley, 2021). Many

sponsorship studies have concentrated on ‘” customer consciousness of sponsor and view of the

promoter’s outlook” (Carrillat et al. 2020, p. 51). There is slight evidence regarding the effect

companies' sponsorships' events have on customers' behavior and purchasing attitudes.

Although demographic division holds on an influence task in the product promotion

approach, several studies focused on how demographic variables influence market interaction,

especially the influence of gender and product promotion. Merely few studies have been noted

on other forms of demographic variables. Thus, the age division approach is significantly limited
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(FitzGerald et al., 2019). Therefore, there is a need to conduct and obtain additional knowledge

regarding consumer behavior and product promotion methods. Hence, the research proposes the

following questions: How do promotion, consumer age, brand, and sponsor affect customer

preference?

Research Purpose and aim

The broad purpose of the research is to develop a clear understanding of diverse local

influences that affect buyers' preferences within the foreign market. The researchers needed to

dig deep into the effect globally well-recognized marketing campaigns have on buyers;

purchasing power. The research also intended to identify whether or not the factors noted above

relate to the influence on consumers' choice of a single product. Thus, the study majors in two

malty-global companies, Coca-Cola and Pepsi, within a local region.

Hypothesis

Buyers were tested to determine their product of choice between Coca-Cola company

products and Pepsi company products, and the outcome provided that several consumers

preferred Pepsi products. However, interestingly enough, currently, Coca-Cola company remains

the leader within the beverage and drinks segment. Based on the outcome, the research assumes

the following hypothesis;

H1: consumers explicitly go for a particular brand but favor the other brand's taste. The

marketing approach for both Coca-Cola and Pepsi companies differs globally, mainly with

product promotion, where Coca-Cola relies intensely on consumers' traditions. On the other

hand, Pepsi depends more on the influence of young people and celebrities (www.

Geocities.com). Consequently, the study continues with a second hypothesis:

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H2: Notably, the two companies target different buyers through product promotion strategies

ranging and sponsorship. The research assumes that depending on an individual's age, the

preference for cola products differs depending on the company. Furthermore, an individual's

taste or preference is different. In that regard, young individuals have developed a tremendously

positive attitude toward Pepsi cola products, whereas the older adult population preferred Coca-

Cola products. According to other approaches, Solomon et al. (2019) adolescents establish the

need for belonging, autonomy, and approval, among others; more importantly, teenagers require

the feeling of acceptance, especially by their peers. Therefore, teenagers change brand

preferences frequently and can easily be targeted within the market by advertising companies.

Hence, promotion mainly targets teenagers since they are vulnerable to buying behavior and

media influence (Khan, 2018). The research also developed a third hypothesis from the outcome

of the second:

H3: Individuals between eighteen and below develop a higher understanding of brand

promotions. Hence teenagers are more influenced by media and other advertisement choice of

products than other age groups.

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References

Armstrong, G., & Kotler, P. (2018). Marketing: an introduction. Pearson/Prentice Hall. (Original

work published 2007)

Carrillat, F. A., Lafferty, B. A., & Harris, E. G. (2020). Investigating sponsorship effectiveness:

Do less familiar brands have an advantage over more familiar brands in single and

multiple sponsorship arrangements? Journal of Brand Management, 13(1), 50–64.

https://doi.org/10.1057/palgrave.bm.2540245

Erdogan, B. Z. (2018). Celebrity Endorsement: A Literature Review. Journal of Marketing

Management, 15(4), 291–314. https://doi.org/10.1362/026725799784870379

Fahy, J., Farrelly, F., & Quester, P. (2019). Competitive advantage through sponsorship.

European Journal of Marketing, 38(8), 1013–1030.

https://doi.org/10.1108/03090560410539140

FitzGerald, M., & Arnott, D. (2019). Understanding demographic effects on marketing

communications in services. International Journal of Service Industry Management, 7(3),

31–45. https://doi.org/10.1108/09564239610122947

Harris, G., & Attour, S. (2020). The international advertising practices of multinational

companies. European Journal of Marketing, 37(1/2), 154–168.

https://doi.org/10.1108/03090560310454028

Hartley, R. F. (2021). Marketing mistakes and successes. Wiley.

Khan, S. (2018). Factors Affecting Consumer Buying Behaviour and Consumer Preference

towards Organized Retail Outlets in India. Journal of Advances and Scholarly

Researches in Allied Education, 15(5), 202–211. https://doi.org/10.29070/15/57734

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Solomon, M. R. (2019). Consumer behavior: buying, having, being. Melbourne Pearson

Australia.