Download - COKE vs PEPSI - Marketing Mix
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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
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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
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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
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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
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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
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COCA-COLA57.8
%
PEPSI
35.6%
MARKET SHARE
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Product Price Place
Promotion
Marketing Mix
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PRODUCT
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Products
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PLACE
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HUB & Spoke Model of Distribution
Both Pepsi and Coke follow the Hub and Spoke model of distribution in rural India.
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Coke Distribution Channels
Company
Independent Bottlers (Syrup + Carbonated Water)
Retailers
Customers
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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
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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
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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.)
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PRICE
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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
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PROMOTION
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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
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Coke brand ambassador
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Pepsi brand ambassador
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Advertising and Promotion
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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
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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
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Advertising and Promotion
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‘Nothing Official About It’ ‘Yeh Dil Maange More’ ‘Mera Number Kab Ayega?’ ‘Yeh Pyaas Hai Badi’
Several Marketing campaigns
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PEPSI-COLA WARS
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Bottling Advertising Product Launches Other Fronts Poaching
WARS
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Thank You