4ps analysis of pepsi and cocacola
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4Ps Analysis of Nestle Pvt.Ltd and Cadbury Dairy Milk pvt. Ltd
MASTER OF BUSINESS ADMINISTRATION to PUNJAB TECHNICAL UNIVERCITY
Submitted by-
Shailendra kumar sharma Regd.no. DBS/09-11/W-083/B And Sandeep kumar Regd.no. DBS/09-11/W-081/B
Submitted to-
Ms. PRITTY SINGH (Faculty of marketing management)
dbs delhibusinessschool creating corporate connoisseurs
The comparison of the 4 Ps of the pepsi and cocacola pvt. Ltd
Objective of the study
In this project, our main focus was to analyze Beverage taking into consideration the 4 P’s of the marketing mix. • To analyze various product attributes of Beverage its management in the current scenario.• To study the entire distribution mix of the product line.• To critically comment on the pricing strategy adopted by the company.• Lastly our study will also focus on the various promotional aspect of the brand in Beverage and also promotional mix of the product line.
INTRODUCTION
Coca-cola
HISTORY
Type: Public
Founded: 1892 by Asa Griggs Candler
Headquarters: Atlanta, Georgia, USA
Industry: Beverage
Products Beverages:
Web site: www.cocacola .com
Origin of the product:
Dr. John Stith Pemberton for the first time produced the syrup for Coca-Cola on May 8, 1886
• The history of the Beverages industry started when Atlanta, Georgia druggist John Stith
Pemberton invented coca wine called Pemberton’s French Wine Coca in 1884.
• He was inspired by the formidable success of French Angelo Mariani’s coca wine, Vin Mariani
to compete with the many patent medicines and cure
- all elixirs of that time. His company recommended it for the relief of hangovers headaches,
menstrual pains, and a host of other problems.
• One warm summer day Pemberton took some syrup down to will is venerable at Jacob’s Drug
Store in Atlanta.
• An ounce of the mixture was put into a glass, which was then filled with water and ice, creating the WORLD’S first Coca-Cola
Origin of the company:
• The following year, when Atlanta and Fulton County passed Prohibition legislation, Pemberton
began to develop a non-alcoholic version of the French Wine Coca.
• He named it Coca-Cola, because it included the stimulant coca leaves from South America and
was flavoured using kola nuts, a source of caffeine. Pemberton ran the first advertisement for the
beverage on May 29 that year in the Atlanta Journal.
• In 1887, while suffering from an ongoing addiction to morphine, Pemberton sold a stake in his
company to Asa Griggs Candler, who incorporated it as the Coca Cola Corporation in 1888. In
the same year, Pemberton sold the rights a second time to three more businessmen: J.C.
Mayfield, A.O. Murphy, and E.H. Bloodworth.
• Meanwhile, Pemberton’s alcoholic son Charley Pemberton began selling his own version of the
product. Three versions of Coca-Cola — sold by three separate businesses — were on the
market.
• When the United States entered World War II, The Coca-Cola Company began providing free
drinks for soldiers of the United States Army. The United States Army permitted Coca-Cola
employees to enter the front lines as “Technical Officers” where they operated Coke’s system of
providing refreshments for soldiers Coca-Cola set up bottling plants in several locations overseas
to assure the drink’s availability to soldiers, setting the stage for the company’s post-war
overseas expansion.
• The popularity of the drink exploded as American soldiers returned home from the war with a
taste for the drink.
• Before the United States entered World War II, the difficulty of shipping Coca-Cola
concentrate to Germany and its occupied states led to the creation of a new drink by a Coca-Cola
employee, Fanta.
• Fanta’s origins date back to World War II when Max Keith, who managed Coca-Cola’s
operations in Germany during the war, ran out of the ingredients
for Coke, which could be supplied only from the United States. Keith resorted to producing a
different soft drink, Fanta, which proved to be a hit, and when Coke took over again after the
war, it adopted the Fanta brand as well.
• The German Fanta K/are Zitrone (“Clear Lemon Fanta”) variety became Sprite, another of the
company’s bestsellers
In the 1930s, Robert W. Woodruff became president of the Coca-Cola Company, presiding over
the drink and its destiny till his death in 1985. Although he eventually stepped down from his
post due to stress, he retained control over the company despite holding positions with an
ostensibly low profile.
The headquarters of Coca-Cola, now listed by fortune as one of the 50 top corporations in the
United States, is still in Atlanta, Georgia. The actual sale and distribution of that magic elixir -
which, needless to say, on longer contains cocaine - is handled largely by a number of
independent bottlers. These bottlers buy syrup, mix it with carbonated water, and distribute it to
retailers in their area. The number of retailers who sell Coke to the public almost exceeds
counting.
PEPSI
Type: Public Founded: 1903 by DCC
BROADHAM
Headquarters: New York, USA
Industry: Food & Beverage
Products: Beverages,Snacks
Origin of the product:
• It starts with a small drug store in North Carolina. This little store belonged to young chemist
by the name of DCC BROADHAM. He invented a drink that the customers called BROAD’S
drink. In 1903, Bradham got its drink registered formally by the name of PEPSI COLA
.
Origin of the company:
He set his own company and kept its sales improving gradually. By 1909, more then 250 bottlers
in different American states had been allowed to sell under the PEPSI COLA license. PEPSI
COLA was first sold in the standard size of 6.5 ounces. In 1932 PEPSI COLA took courage
enough to introduce a bottle of 12 ounces. In 1950 the PEPSI COLA’S formula had been
changed by reducing its sweetness and calories and a new advertising campaign Refresh without
filling had been launched effectively. Under the supervision of the diligent sales staff and the
Marketing experts, PEPSI COLA began setting new records of eminence. At 30 plants per year,
new plants were established all across the globe. A new attractively designed bottle had been
introduced in 1957 in place for the 20 years old bottle, and the product line had been enhanced to
introduce the new flavors of TEAM & MIRINDA. PEPSI COLA today is available to more than
a billion people in 153 different countries which include the central independent states and
China.
MARKETING MIX
Definition
The 'marketing mix' is a set of controllable, tactical marketing tools that work together to achieve
company's objectives
Four Ps
Product
In marketing, a product is anything that can be offered to a market that might satisfy a want or
need. It is of two types: Tangible (physical) and Intangible (non-physical). Since services have
been at the forefront of all modern marketing strategies, some intangibility has become essential
part of marketing offers. It is therefore the complete bundle of benefits or satisfactions that
buyers perceive they will obtain if they purchase the product. It is the sum of all physical,
psychological, symbolic, and service attributes, not just the physical merchandise. All products
offered in a market can be placed between Tangible (Pure Product) and Intangible (Pure Service)
spectrum.
A product is similar to goods. In accounting, goods are physical objects that are available in the
marketplace. This differentiates them from a service, which is a non-material product. The term
goods is used primarily by those that wish to abstract from the details of a given product. As
such it is useful in accounting and economic models. The term product is used primarily by those
that wish to examine the details and richness of a specific market offering. As such it is useful to
marketers, managers, and quality control specialists.
A service is a non-material or intangible product - such as professional consultancy, serving, or
an entertainment experience.
Coke – Product
The Coca-Cola formula is The Coca-Cola Company's secret recipe for Coca-Cola. As a publicity
marketing strategy started by Robert W. Woodruff, the company presents the formula as one of
the most closely held trade secrets ever and only a few employees know or have access to. This
Coca-Cola formula appears to be the original formula to Coca-Cola. It is from the book
“For God, Country and Coca-Cola”.
The company Coca-cola is a multinational and it is not limited to one product. Through the years
they have invented and introduced many products than their main cola drinks. The list of Coca-
cola brands are as follows:
Appletiser
Aquarius
BPM Energy
Barq's
Beat soda
Beverly
Cannings
Cheers
Ciel
Coca-Cola Black
Cherry Vanilla
Coca-Cola Blak
Coca-Cola C2
Coca-Cola Cherry
Coca-Cola Citra
Coca-Cola M5
Coca-Cola Zero
Coca-Cola
Coca-Cola with
Lemon
Coca-Cola with Lime
Dasani
Delaware Punch
Diet Coke
Fanta
Fanta Citrus
Fioravanti
Lemon & Paeroa
Lift
Lift plus
Lilt
Manzana Lift
Mare Rosso
Mello Yello
Mezzo Mix
Minute Maid
Nestea
New Coke
Nordic Mist
OK Soda
Pibb Xtra
Powerade
Qoo
Raspberry Coke
Relentless
Sarsi
Senzao
Simply Orange
Smart
Sparkle
Sprite
Sprite Ice
Sprite Remix
Sprite Zero
Fresca
Frisco
Fruitopia
Frutonic
Full Throttle
Georgia
Hi-C
Hit
Kia-Ora
Kinley
Surge
Swerve
Tab
Tab Clear
Tab Energy
Tab X-Tra
Tiky
Vault
Pepsi – Product
The Pepsi-Cola drink contains basic ingredients found in most other similar drinks including
carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine, citric
acid and natural flavors. The caffeine free Pepsi-Cola contains the same ingredients but no
caffeine.
Some of the different and varied brands of Pepsi are as follows:
All Sport
Aquafina
Caffeine-Free Pepsi
Crystal Pepsi
Diet Pepsi
Gatorade
Izze
Jazz
Josta
Kas
Pepsi
Pepsi Blue
Pepsi Cappuccino
Pepsi Max
Pepsi ONE
Pepsi Samba
Pepsi Tarik
Pepsi Twist
Propel Fitness Water
Sierra Mist
Manzanita Sol
Mirinda
Mountain Dew
Mountain Dew AMP
Mountain Dew LiveWire
Mountain Dew MDX
Mug Root Beer
Slice
SoBe
Storm
Teem
Tropicana Products
Tropicana Twister
Coke v/s Pepsi-Product
As seen above both the companies Coke and Pepsi have a number of products. Many of these
products are innovations but there are also many products which are brought out just as a
competitive product for the other companies. Some of these products that are brought in the
market by both the companies to compete against each other are as follows:
Coke Pepsi
The main dark cola drink of the company
which started the rivalry between these
companies.
Pepsi version of dark cola which is the
major primary competitor to Coke.
Full Throttle is an energy drink brand
produced by The Coca-Cola Company. It
debuted in late 2004 in North America.
AMP is an energy drink produced and
distributed by PepsiCo under the Mountain
Dew soft drink brand.
Vault is a carbonated beverage that was
released by The Coca-Cola Company in
June 2005.
Mountain Dew MDX is an energy drink
manufactured and distributed by PepsiCo
under the Mountain Dew brand. It was
introduced in 2005.
Powerade is a sports drink by The Coca-
Cola Company and currently number two
in the sports drink market worldwide.
Gatorade is a non-carbonated sports drink
marketed by Quaker Oats Company, a
division of PepsiCo. Originally made for
athletes, it is now often consumed as a
snack beverage.
Sprite is a clear, lemon-lime flavored, non-
caffeinated soft drink, produced by the
7 Up is a brand of a lemon-lime flavored
soft drink.
Coca-Cola Company. It was introduced to
the United States in 1961.
Minute Maid is a product line of beverages,
usually associated with orange juice, but
now extends to soft drinks of many kinds.
The Minute Maid company is now owned
by Coca-Cola, and is the world's largest
marketer of fruit juices and drinks. It is
headquartered in Houston, Texas.
Tropicana Products is an American
company based in Bradenton, Florida,
USA, which is one of the world's largest
producers and marketers of orange juice. It
has been owned by PepsiCo, Inc. since
1998.
Nestea is a brand of iced tea manufactured
and distributed by the Nestle company's
beverage department in the United States,
and by Coca-Cola in several European
countries, Brazil and Venezuela.
Lipton Original Iced Tea is a ready-to-
drink iced tea brand sold by Lipton through
a worldwide partnership with Pepsi.
Barq's is a brand of root beer notable for
being the only major North American root
beer to contain caffeine. It has been bottled
since the start of the 20th century and is
currently sold by the Coca-Cola Company.
Mug Root Beer is a brand name of root
beer made by the Pepsi company.
Diet Coke or Diet Coca-Cola is a sugar-
free soft drink produced and distributed by
The Coca-Cola Company. It was
introduced in the United States in July
1982.
Diet Pepsi is a low-calorie carbonated cola.
It was introduced in 1964 as a variant of
Pepsi-Cola with no sugar.
Kinley is a brand of still or carbonated
water owned by The Coca-Cola Company.
Aquafina is a non-carbonated bottled water
produced by PepsiCo.
Aquarius is a mineral sports drink
manufactured by The Coca-Cola Company.
It was first introduced in 1983.
All Sport was a sports drink. It is produced
by PepsiCo.
Fanta is a soft drink brand owned by The
Coca-Cola Company. It is produced and
distributed by The Coca-Cola Company's
bottlers.
Mirinda is a brand of soft drink. Mirinda is
owned by PepsiCo.
Sprite Ice was the first flavor extension for
The Coca-Cola Company's Sprite brand
soft drink.
Pepsi Blue is a soft drink made by PepsiCo
and launched in mid-2002.
Coca-Cola Blak is a coffee-flavoured soft
drink introduced by Coca-Cola in 2006.
Pepsi Cappuccino is a cappuccino-flavored
carbonated soft drink produced by Pepsico.
Maaza is a Coca-Cola fruit drink brand
marketed in India and Bangladesh.
Slice is a line of fruit-flavored soft drinks
manufactured by PepsiCo and introduced
in 1984.
Limca is a lemon and lime flavoured
carbonated soft drink made in India by
Coca-cola.
Teem was a lemon-lime-flavored soft drink
produced by The Pepsi-Cola Company.
Price
In economics and business, the price is the assigned numerical monetary value of a good, service
or asset.
Price is also central to marketing where it is one of the four variables in the marketing mix that
business people use to develop a marketing plan.
Pricing is a big part of the marketing mix. Choosing the right price and the right pricing strategy
is
crucial to the marketing process.
The price of the product is not something that is fixed. On the other hand the price of the product
depends on many other factors. Some times the price of the product has got nothing to do with
the actual product itself. The price may act as a way to attract target customers.
The price of the product is decided keeping many things in mind. These things include factors
like cost incurred on the product, target market, competitors, consumer buying capacity etc.
Coke - Price
Coke was a company ruling the markets before Pepsi entered. Earlier the price of coke was cost
based i.e. it was decided on the cost which was spent on making the product plus the profit and
other expenses.
But after the emergence of other companies especially the likes of Pepsi, Coca-cola started with
a pricing strategy based on the basis of competition. Nowadays more expenses are spent
on advertising my soft-drink companies rather than on manufacturing.
Few year before Coke has brought in a revolution especially in Indian markets with the
Rs. 5 pricing strategy which was very famous. It was the first company to introduce the
small bottle of Coke for just Re.5. This campaign was very successful especially with the
price conscious Indian consumers.
Even today most prices of Coke are decided on the basis of the competition in the market.
Pepsi – Price
Pepsi again decides it price on the basis of competition. The best think about the company Pepsi
is that it is very flexible and it can come down with the price very quickly. The company is
renowned to bring the price down even up to half if needed.
But this risk taking attitude has also earned Pepsi losses. Though lowering the price would attract
the customers but it would not help them cover up the cost incurred in production hence causing
them losses.
This was the situation earlier but now Pepsi is a full-fledged and growing company. It has
covered all its losses and is now growing at a rapid rate.
Place
Place is a term that has a variety of meanings in a dictionary sense, but which is principally used
in a geographic sense as a noun to denote location, though in a sense of a location identified with
that which is located there.
In marketing, place refers to one of the 4 P's, defined as "the market place". It can mean a
geographic location, an industry, a group of people (a segment) to whom a company wants to sell
its products or services, such as young professional women (e.g. for selling cosmetics) or
middle-aged family men (e.g. for selling family cars).
Coke - Place
Coke is a multinational company and it has its market around the entire world. This can be said
just by the first page on its site which asks people to select the place of their choice. The website
looks something like this:
Pepsi – Place
Pepsi again has spread worldwide. Pepsi when entering a new market does not go in alone but it
looks for partners and mergers. Till now Pepsi has collaborated with companies like Quaker
Oats, Frito-lays, Lipton, Starbucks, etc.
Pepsi like Coke has spread all over the world. It is because of this worldwide spread that now it
is coming up with Advertisements which can be broadcasted in the different nations in the world.
The recent example with would be the Pepsi advertisements having David Beckham as it brand
ambassador.
Promotion
Promotion is one of the four aspects of marketing. Promotion comprises four subcategories:
Advertising
Personal selling
Sales promotion
Publicity and public relations
The specification of these four variables creates a promotional mix or promotional plan. A
promotional mix specifies how much attention to pay to each of the four subcategories, and how
much money to budget for each. A promotional plan can have a wide range of objectives,
including: sales increases, new product acceptance, creation of brand equity, positioning,
competitive retaliations, or creation of a corporate image.
Both the companies Pepsi and coke are famous for their promotions. The rivalry was first started
when Pepsi started with its blind taste tests known as the Pepsi Challenge. The challenge is
designed to be a direct response to critics who allege that Coca-Cola and Pepsi-Cola are identical
drinks, with no meaningful differences. The challenge takes the form of a taste test. At malls,
shopping centers and other public locations, a Pepsi representative sets up a table with two blank
cups, one containing Pepsi and one with Coke. Shoppers are encouraged to taste both colas, and
then select which drink they prefer. Then the representative reveals the two bottles so the taster
can see whether they preferred Coke or Pepsi. If Pepsi is revealed, the shopper is given a small
prize. The implication is that Pepsi tastes better than Coke, and thus consumers should purchase
Pepsi.
In blind taste tests, more consumers prefer the taste of Pepsi to that of Coca-Cola. Because Coke
was the historical leader, more people expected that they'd prefer and select Coke. Their surprise
at picking Pepsi in the blind taste test (products were served in unmarked cups) helped change
their minds about which product they prefer. Capturing this on film, Pepsi turned this into a
memorable TV campaign that lasted many years. Also ad-campaigns are put up on the television
by both the players. The following statistic just tells of much of share of ads on TV are captured
by these players.
Infact in the next graph you can see how many programs are sponsored by cola companies and
the leader among them is Pepsi. Mainly Pepsi is the company sponsoring most cricket telecasts
happening in India and spends most of its revenue in that field.
Nowadays both Coke and Pepsi are going in for Brand Ambassadors to promote their product.
These brand ambassadors are famous people who usually people idolize and people can relate to
them. The following pictures do not need any explanation as people are familiar with the
celebrities and can thus quickly identify with the product.
A list of Celebrities that are brand ambassadors for the cola companies are as follows. These
celebrities are not only asked to work in the advertisements but they also have to use the product
promoted by them and they should not use the companies rivals proucts.
CELEBRITY ENDORSMENT IN 2008-09
PEPSI COCA-COLA
Ram Charan Teja Amir Khan
Ranbeer Hrithik Roshan
Vijender(Boxer) Ganesh
Katrina Kaif Gautam Gambhir
Rani Virender Sehwag
Kareena Kapoor Vijay
M.S.Dhoni
Shahrukh Khan
Conclusion
Coca- cola company is a Beverage industry. Established in 1882 .It Headquarter is in Atlanta,
U.S.A. Pepsi is a Beverage and snacks industry Established in 1903. It Headquarter in Newyork
and U.S.A.
Pepsi and Coke are competitor and both are produce a competitive product like Coke - Pepsi
Sprite – 7UP, Minute maid – Tropicana, Fanta – Mirinda. Diet Coke – Diet Pepsi , Kinley –
Aquafina etc.
Both company are decide his price on the competition bases but price of pepsi is very flexible
Pepsi come down price very quickly.
Pepsi and Coke spread worldwide. Pepsi and coke doing very much advertisement. But pepsi is
doing more advertisement in comparison to coke .both company have film star , cricketer for
advertisement.
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