The marketing war between Pepsi-Cola and Coca-Cola is gaining new attention, which is providing more popularity for the trademarks. Historically, both brands have been niche drinks; trying to gain more and more consumers. Fans of both brands are paying attention to such differences flavors and advertising strategy, although there are two basic historical differences between two drinks:
1) both drinks were invented by pharmacists and originally sold in pharmacies as a stimulating, invigorating, cheering medication that can improve digestion;
2) the products are almost identical in taste and composition. At the beginning of his history of “coke” they were very different: Coca-Cola included cocaine from Coca leaves and caffeine from Kola nut, but as part of Pepsi was only the last. But in the beginning of the last century, the company stopped using cocaine, and later from part of Coca-Cola was removed and caffeine.
With PepsiCo’s enhanced plan of action, the organization has possessed the capacity to get or make corresponding items in both the nourishment business and the drink business. As indicated by Information Resources, Inc., a statistical surveying organization, 54% of U.S. purchasers surveyed reported that when they purchase a salty nibble, they additionally purchase a refreshment in the same checkout bushel. Despite the fact that Coca-Cola may have preference with a more engaged plan of action, PepsiCo made a situation where one item the organization claims may instigate a purchaser to buy a second item the organization additionally possesses. Conversely, Coca-Cola has attempted endeavors to overwhelm the refreshment business only and shied far from the cross-advancement of numerous items in various commercial ventures (“Comparing Coca-Cola and Pepsi’s Business Models (KO, PEP) | Investopedia”, 2015).
On the carbonated drinks market Coca-Cola Company and PepsiCo take the leading positions, and there is a war for the consumer between the companies Many of us have expressed a preference for one of the flagships of these companies, someone who likes diet Coke, but someone more like Pepsi. It is worth noting that contrary to popular opinion about that. Highly specialized companies, both manufacturers produce a wide range of products, starting from the well-known drinks and ending with chips and cheese. In addition, companies have entire corporations to produce packaging that is separately traded on the stock exchanges.
Over time, the company shifted the focus on new market segments. For example, in connection with the trend of healthy lifestyle, the population of many developed countries prefer juices and water to drink traditional soda companies. Therefore, in order to keep up with the times and show growth, both companies are creating new segments (Lubin, 2012).
So, according to the latest Coca Cola controls 42.7% of the US market and gets 74% of the revenue from the international market. Pepsi also controls only 30.8% of the domestic market, and its revenue from international sales does not exceed 48%. But Pepsi overtakes its rival in India (recently), Saudi Arabia, Pakistan, Dominican Republic, Guatemala and five Canadian provinces. oca Cola ahead of its competitor and at a cost brand. So, in 2010 the brand was valued at $ 70 billion, five times more than the cost of Pepsi (Bailey, 2014).
Coca-Cola refused to attract stellar people to promote their brand, unlike Pepsi who regularly use and attractive to their brand of celebrities. Pepsi is associated with celebrities, younger generation, football, energy, and movie. Quality relied upon advertising strategy of Coca-Cola is eternal. Family, Christmas, and magic – all this strong and more durable impressions are associated with the individual heroes of our time, as well as youth trends. Additionally, the young people tend to grow and change their preferences. Therefore, each year Pepsi focuses on new groups of potential consumers, whereas Coca-Cola supports the value created and evaluated existing groups.
- Bailey, S. (2014). Understanding PepsiCo’s business model – Market Realist. Marketrealist.com. Retrieved 23 May 2016, from http://marketrealist.com/2014/12/understanding-pepsicos-business-model/
- Comparing Coca-Cola and Pepsi’s Business Models (KO, PEP) | Investopedia. (2015). Investopedia. Retrieved 23 May 2016, from http://www.investopedia.com/articles/markets/081415/comparing-cocacola-and-pepsis-business-models.asp
- Lubin, G. (2012). SodaStream CEO: Coke And Pepsi’s Business Model Is ‘Insane’. Business Insider. Retrieved 23 May 2016, from http://www.businessinsider.com/coke-and-pepsis-insane-business-model-2012-11