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Marketing Strategy Comparison of Coca Cola and Pepsi Fundamental of Microecon (MBA 5X05) Introduction Soft drink industry is one of the most fierily competitive industries in the world. The two major player or better to say the dominant players of this Industry are Pepsi and Coke…
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Download file to see previous pages... According to him, to understand this sector completely one must consider to analyze following points like economic factors, industry trend, and competitive sources (Diechart et al). This paper is based on the marketing strategies of these two giants along with the discussion on several economic parameters like demand theory, opportunity cost, preferred completion. The paper also gives a historic overview of the companies, their financial performance and also a suggestion part that can be helpful for these two organizations to be more competitive. Analysis Methodology The study is about the market dominance of both the company in terms of different economical parameter. The findings are based on various article and financial report published in different magazines, news, and financial report of both the companies and a comparison between these two companies marketing strategy. The main two questions we are trying to answer are as follows: 1. Comparative analysis of marketing strategy of Coca-Cola and Pepsi. 2. Analysis of two companies in different micro-economic perspective. For marketing strategy review and the effect of the same on these two companies the main source of informationis company’s annual report, different article related to company’s marketing strategies over the year and the style of branding and promotion. For economic perspective, various economical factors are analyzed based on available secondary data sources. Coke and Pepsi: Past and Present position in the Market. There were three different factorsassociated with the market performance of these two companies. According to Data Monitor, these were market size, growth rate and overall profitability. Among no-alcoholic drinks soft-drinks have the overall market share of 46.8%. The total market value of the soft drinks industry was $307.2 billion in 2002 and as per their report was expected to reach around $367billion by 2009. Although along with this strong forecast, Data Monitor also predicted that there will be a slight decline in the soft drinks market due to market price. This was due to increase in the other non-alcoholic industry like tea and coffee (11.8%) and water (9.3%). According to Diechart et al, despite of solid profit margins the declaration in the soft drinks market was due to market saturation especially in USA. According to him, to increase the profitability the soft drinks company needed the product diversification to reach out more number of people. According to Murray’s report Coca Cola enjoyed maximum market share of around 50% followed by Pepsi (21%). The Coca Cola were having more diversified soft drinks offering for the client like Coca-Cola, Diet Coke, Fanta, Sprite etc and they were engaged in over 200 nations (Diechart et al). Pepsi have brands like Pepsi, Dew, and Slice etc (Diechart). According to thereport published in the Bangkok Post Coke sales was grown by 32% in 2012, which was highest in last 10 years. The marketshare of coke again rose to 50% whereas Pepsi falling to 15% (Bangkok Post). Marketing Strategy: Coca Cola: The main aim of Coca Cola is to refresh the world, to inspire moments of optimism and happiness and to create value and make a difference in customer mind. To fulfill their mission 5 broad steps were taken by the marketing team of ...Download file to see next pagesRead More
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