Coke Vs Pepsi

The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share. The creativity and effectiveness of each company's marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty. Not only are these two companies constructing new ways to sell Coke and Pepsi, but they are also thinking of ways in which to increase market share in other beverage categories. Although the goal of both companies is exactly the same, the two companies rely on somewhat different marketing strategies. Pepsi has always taken the lead in developing new products, but Coke soon learned their lesson and started to do the same. Coke hired marketing executives with good track records. Coke also implemented cross training of managers so it would be more difficult for cliques to form within the company. On the other hand, Pepsi has always taken more risks, acted rapidly, and was always developing new advertising ideas. Both companies have also relied on finding new markets, especially in foreign countries. In the foreign markets, Coke has been more successful than Pepsi. For example, in Eastern Europe, Pepsi has relied on a barter system that proved to fail. However, in certain countries that allow direct comparison, Pepsi has beat Coke. Coca-Cola’s long time strategy has been to make its product inexpensive, widely available and tasty. As far as taste is concerned, the company had to develop various drinks tailored to Chinese palates. During the China International Beverage Festival held in September, Coca-Cola invited Chinese folk artists to make paper-cuts and mold clay dolls, so as to better combine traditional Chinese art with a foreign brand. Pepsi also developed its market strategy according to the unique tastes of Chinese customers. They spent huge amounts of money to invite famous singers, stars and soccer players to promote its products. The company called this its “soccer & music” promotional strategy. Even before the first bottle of Pepsi hit the shelves, local soft drink manufacturers increased the size of their bottles by 25% without raising costs Coke and Pepsi are practicing social marketing in rural India and interior China. B. Strategic Posture: 1. Mission: PepsiCo's overall mission is to increase the value of shareholder's investment. They do this through sales growth, cost controls and wise investment of resources. They believe their commercial success depends upon offering quality and value to their consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to their investors while adhering to the highest standards of integrity. 2. Objectives: PepsiCo’s overriding objective is to increase the value of our shareholders' investment

through integrated operating, investing and financing activities. Their strategy is to concentrate their resources on growing their businesses, both through internal growth and carefully selected acquisitions. Their strategy is continually fine-tuned to address the opportunities and risks of the global marketplace. The corporation's success reflects their continuing commitment to growth and a focus on those businesses where they can drive their own growth and create opportunities. PepsiCo believes that as a corporate citizen, it has a responsibility to contribute to the quality of life in our communities. This philosophy is put into action through support of social agencies, projects and programs. The scope of this support is extensive -- ranging from sponsorship of local programs and support of employee volunteer activities, to contributions of time, talent and funds to programs of national impact. Each division is responsible for its own giving program. Corporate giving is focused on giving where PepsiCo employees volunteer. 3. Strategies: As a consumer products company, PepsiCo does not have the major environmental problems of heavy industry. Their biggest environ-mental challenge is packaging generated by their products. Packaging is important to public health and a critical component of the distribution system that delivers products to consumers and commercial establishments. To meet both consumer demand and safeguard the environment, they recycle, reuse and reduce packaging wherever possible. Each business is also committed to responsible use of resources required in manufacturing their products. Continually fine-tuned to address the opportunities and risks of the global marketplace. Concentrate our resources on growing our businesses, both through internal growth and carefully selected acquisitions. Company developed its traditional products and expanded into low-fat and no-fat snacks as well as salsas and dips. 4. Policies: • Employee networks to mentor and support minority & female employees. • Actively and diligently seek out qualified M/WBEs for all possible company requirements. • Make every reasonable effort to help qualified M/WBEs to meet company standards. • Respect the privacy of all visitors who access and use the company’s corporate Web site • Treating all customers with respect, sensitivity and fairness, while providing some of the greatest products on earth. • We respect individual differences in culture, ethnicity and color. PepsiCo is committed

to equal opportunity for all employees and applicants. • Corporate program for training employees how to work and manage in an inclusive environment

 Pepsi has been more aggressive than Coke in India especially in developing distribution network & pushing sales force in generating numbers. Pepsi also has really revolutionised the way soft drinks are sold by innovating newer & better ways of penetrating the market through Vending Machines , Restaurant channels etc.  So in nutshell, pepsi takes extra runs due to its targeted, humerous and agressive marketing campaign and taste. Brand image does not play significant role in choosing from coke or pepsi as both of them has equal brand image. Indians will differentiate the brand by taste and the ads.  Pepsi is dead-on about its brand positioning, perferring to target India's youth through young cricketers who are in vogue and charge much less as well. Case in point, the 'Yeh hai youngistan meri jaan' campaign with Ishant Sharma and Rohit Sharma.  Pepsi has roped in boxing champion Vijender Singh as the brand ambassador to carry forward the Youngistaan positioning adopted by the brand  The new campaign is aimed at furthering the brand’s positioning as a youth drink.