coke vs pepsi - marketing mix

Founded by John Pemberton in 1886. 1887: Registered as trademark. 1895: Sold in every state & territory in US.

2003:Headquartered in Atlanta with divisions & local operations in over 200 countries worldwide.

- 70% income outside US.

Coca-Cola: A Brief Introduction

1977: Coca-cola was thrown out. 1993: Re-entry in India. 1993-2003 : Invested more than US $1b in India- top international investor.

2003-2008: No. 1 soft drink company in India.

Coke: in India

1899: Founded by Caleb Bradham. 1902: Applied for trademark in US. 1923: Declared bankrupt & assets sold.

1985: Gain entry in India 1988 - Succeeded with Pepsi Food India Limited Project as a JV of

- Punjab Agro Industrial corporation - & Voltas India Limited.

PEPSI: A Brief Introduction

1991: Marketed & sold as Lehar Pepsi. 1994: Bought out its partner and become a

fully owned subsidiary. Today it is the No. 2 soft drink company in

India.

Pepsi: In India

COKE Energy 100

kcal Carbohydrate, by

difference 27 g

Sugars, total 27 g

Potassium, K 10 mg

Sodium, Na 25 mg

PEPSI Energy

97 kcal Carbohydrate, by

difference 27 g

Phosphorus, P 41 mg

Sodium, Na 33 mg

Nutrition facts

COCA-COLA57.8

%

PEPSI

35.6%

MARKET SHARE

Product Price Place

Promotion

Marketing Mix

PRODUCT

Products

PLACE

HUB & Spoke Model of Distribution

Both Pepsi and Coke follow the Hub and Spoke model of distribution in rural India.

Coke Distribution Channels

Company

Independent Bottlers (Syrup + Carbonated Water)

Retailers

Customers

Sales & Distribution is actually handled by a large number of bottlers.

26 bottling plants 60 distribution centers. 20 contract packers Over 70000 retail outlets serviced via trucks, converted three wheelers, tricycles & push carts.

300 million soft drink consumers

Coke Distribution Channels

Aggressive in developing distribution network & pushing sales forcePioneer in use of Vending machines and Restaurant channelsBuilt up distribution network & bought out a lot of Bottlers to establish itself in the marketProduction plants and bottling centers were strategically placed in large cities all around India

DISTRIBUTION NETWORK OF PEPSIIN INDIA

Focusing on the rural customer as rural India constituting of 2/3 of India's entire populationPepsiCo has 37 bottling plants in India, including 17 company-owned plants and 20 owned by franchisee partners

DISTRIBUTION NETWORK OF PEPSIIN INDIA (contd.)

PRICE

Competition basedVery flexible to come down with the price very quickly

Earlier COST BASED Pricing. The Rs. 5 Marketing revolution.Nowadays, Coke spends more on advertising than manufacturing

Price

PROMOTION

COKE PEPSI

Entered after Pepsi in 1993

Pepsi entered in 1988

Gained from demand created by Pepsi

Had a head-start over Coke

Tried to sell an American way of life

Focused on the Indian youth

Failed to resonate as expected

Was successful.

PROMOTION

Coke brand ambassador

Pepsi brand ambassador

Advertising and Promotion

Brand Localization Strategy: The Two Indias

India A: “Life ho to aisi” India B: “Thanda Matlab Coca-Cola” Small bottle scheme.

Marketing Campaigns by Coke

Pepsi balance 2 influences in the minds of the customers:

‘You’re cool the way you are’ ‘Don’t try to be any different’ It was positioned as the new ‘cool’ icon.

Marketing by Pepsi

Advertising and Promotion

‘Nothing Official About It’ ‘Yeh Dil Maange More’ ‘Mera Number Kab Ayega?’ ‘Yeh Pyaas Hai Badi’

Several Marketing campaigns

PEPSI-COLA WARS

Bottling Advertising Product Launches Other Fronts Poaching

WARS

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