Comparison of Marketing Strategies: Coca-Cola vs PepsiCo

This presentation compares the marketing strategies of Coca-Cola and PepsiCo, focusing on the elements of the marketing mix. It discusses the product offerings, pricing strategies, distribution channels, promotional activities, and employee management of both companies. The presentation also includes a marketing plan for Coca-Cola's new product, Coca-Shake, and highlights the importance of effective marketing strategies for business success.

MARKETING
ESSENTIALS

CONTENT COVERED
• Introduction
• Comparison of different organization applying marketing mix
• Evaluation of different strategies
• Marketing Plan for Coca Cola
• Conclusion
• References

INTRODUCTION
Marketing is one of the most important activities of a company. It is essential for
introduction of a new product and service and communication of the same in the market.
The following presentation is based on how organizations use marketing mix elements and
how marketing plan is created for a new offering

Comparison of different organisations apply Marketing
Mix
• Marketing Mix refers to amalgamation of all the tools of marketing which are used effectively by
organisations in order to attain their business goals. Furthermore, these could also refer to a
combination of certain actions, strategies or tactics which is used by organisation to set up and
promote their offerings more effectively in comparison to other companies in the market.
• 4P's and 7P's Strategy:
• Earlier, the marketing mix included just four variables, or combinations for organisations, like
Product, Price, Place as well as Promotion. All the elements were considered quite important for
companies and were considered appropriate for product businesses.

CONT.….
BASIS COCA-COLA PEPSICO
PRODUCT
The product strategy of the company includes
diversification in its offerings. The firm is known to
have widest portfolio in food and beverage industry
which includes more than 3000 products produced
and served in the market. There are several
categories in which the company deals its products.
These variety of offerings consists of Fruit Drinks,
Fruit Juices, Energy Drinks, Diet Categories and so
forth. Some of the various brands which have quite
an effective presence are Diet Coke, Thumbs Up,
etc.
With almost 22 different brands, PepsiCo deals in a
diverse product category. Furthermore, as per its
beverages are concerned, the firm is consistent in
introducing new brands in the market such as
Mountain Dew, Tropicana, Diet Pepsi, etc. In
addition, there it product portfolio covers several
brand related accessories, for instance, drink gears,
which adds to its strategy and preference in the
market.

CONT.….
PRICE
The pricing strategy of the company is adopted
according to different geographical segment. The
firm adopts differentiated pricing strategy
depending on the country in which it operates in.
However, due to several local as well as
international competitors of the firm, Coca-Cola
has started adopting competitive pricing strategy to
stay ahead in the market.
Its pricing strategy in relation to its beverages
depends heavily on its relationship with WalMart.
It is because the latter has implemented a low-cost
strategy which influences PepsiCo to keep its
prices low. Its low pricing strategy and availability
of topmost quality products is implemented by the
company in all the areas covered by the firm.

CONT.….
PLACE
Since the company operates globally, Coca-Cola
uses FMCG distribution method to cover a large
geographical area in the region they are selling
their products into. Furthermore, as per the
channels used by the company, it uses both direct
as well as indirect channels. The agenda of using
such a flexible approach is to cover a large
geographical area globally. It has been effective
for the company as the firm has served almost 2
billion offerings in the market.
The company is situated in US which generates
more than half of its income. Apart from this,
from supermarkets to mini markets, people could
easily access its beverages. Moreover, the
company also focuses on placing its products in
various fast food restaurants like McDonald's and
Subway, to enhance the scope of its sales. The
company, however, does not use online channels
in order to sell its beverage and make their
products available in physical stores which have
been a consistent strategy of the company.

CONT.….
PROMOTION
In order to enhance its global presence, the company
has adopted several promotional and advertising
strategies to enhance the demand for its products.
However, the most prominent strategy implemented
by Coca-Cola is its target based advertising. A precise
and individualistic approach helps the firm to
improve their perception amongst customers. Another
prominent scheme of the company is the Under The
Crown Scheme where prizes are offered by the firm
like Televisions, accessories, clothes, etc. All these
strategies attract the attention of customers in the
market
PepsiCo retains an effective brand image through
aggressive advertising of the product. The company
targets youth icons in countries to effectively promote
its offerings. PepsiCo uses both above as well as
below the level marketing and traditional as well as
modern media channels such as social media. This
helps the company in making its brands familiar in
the market. Along with this, the company also
bundles discounts and packaging together as a form
of promotion.

CONT.….
PEOPLE
These individuals support the company to earn a
sustainable growth and better market presence. As
for employees, the firm has more than 61,000
employees working with the firm worldwide.
Furthermore, it is one of the Best Employers in
America . It is because, the culture adopted in the
company supports employees and the company
focuses on providing them with best facilities and
amenities Furthermore, all its strategies are in
relation to satisfy more customers which is the
prime agenda of the company.
In comparison to Coca-Cola, PepsiCo has way more
employees which are more than 260,000 . The
company ensures that its employees are well trained
and skilled to carry out the processes of
development of beverages, marketing and
distribution. The company sets up effective and
professional environment for its employees to work.
Along with this, PepsiCo sets up appropriate
training and development courses for its employees
to be more competent. Furthermore, individualistic
approach is performed by PepsiCo and it varies its
strategies according to the customers in that area.

CONT.….
PROCESS
The process of preparation of drinks by Coca-Cola is
hidden from customers as the company does not
want to let out its recipe for its beverages. However,
the other processes, i.e., manufacturing of its
containers and cans are very much transparent and
communicated through Television channels like
National Geographic . The emphasis of such
communication is that the firm effectively uses
high-end technology and advanced automation and
security systems to ensure a smooth, professional
and technologically advanced processes to package
and deliver their products.
Its process includes removal of High Fructose Corn
Syrup (HFCS) from its beverages to improve its
quality. Further its flavours are shipped from the
company's Pepsi-Cola manufacturing plants. A
detailed and segregated process is followed by the
firm to develop its beverages and effectively brand,
package and distribute the same. In addition, more
emphasis is given on the purity and decontamination
in this process. For example, PepsiCo uses different
techniques to purify its water and concentrate the
flavours with sweeteners and several other
ingredients in large stainless steel tanks.
Furthermore, its process also includes effective
monitoring and audits for the whole procedure to be
accomplished effectively.

CONT.….
PHYSICAL EVIDENCE
The most important aspect of physical evidence
of the company is its branding strategies. It is
because it could be easily differentiated through
its logo and combination of its red and white
packaging. Furthermore, apart from branding, the
taste of its soft drinks is only provided by this
firm to customers. Such distinctive features in its
products and marketing are effective strategies
for the company to ensure a sustainable run in the
future as well.
Just like Coca Cola, PepsiCo also uses branding
as an effective strategy to ensure its products are
differentiated in the market. The logo of PepsiCo
is very popular in the market and so is its
packaging. Further, the company uses recyclable
plastic products which differentiates its offerings
from most of the companies in the marketplace
and provides it an effective edge.

EVALUATION OF DIFFERENT STRATEGIES
• Both the organisations are on the top of their games in their industry and apply different
strategies as to achieve their business objectives. However, strategies applied by these
companies depend upon the market and their target customers.
• Strategies applied by Coca-Cola to achieve its business objectives are as follows:
• Coca-Cola is a global organisations and there are several effective strategies which the firm has
implemented in order to attain its business objectives . Some of these objectives are listed
below:
• Coca-Cola applies segmented revenue growth strategies to enhance the scope of its profitability
and revenue growth depending on the market type. For instance, in case of emerging markets,
the organisation emphasises on enhancing its volume and keeping their prices low and
affordable. Whereas, in developed markets, pricing and volume are effectively balanced.

CONT.….
• Strategies by PepsiCo to achieve its business objectives are discussed below:
• The primary strategy of PepsiCo is its price penetration strategy. To grow in different markets, the
company is focusing on keeping up the volume high and prices low. This is a strategy adopted by
this firm in order to gain a wider market share.

MARKETING PLAN FOR COCA-COLA
• Marketing Plan refers to a complete outline of effective marketing strategies which
organisations set up in order to appropriately communicate its products and services
in the market. It's a well structured plan which is essential for any company to
ensure a well-planned and appropriate marketing of their offerings.

CONT.….
• Company Overview:
• The Coca-Cola Company is one of the most recognised soft-drink organisations in the world.
This multinational organisation deals in various types of non-alcoholic beverages, One of the widest
sold and consumed beverage of this organisation comes by the name of Coca-Cola.
• Vision and Mission:
• Vision: Vision of this company accounts for inspiring individuals through provision of great
work environment and offer a wide portfolio of brands to satisfy customers
• Mission: The vision of Coca-Cola through Coca-Shake is to refresh people in body, mind and spirit and
to inspire happiness and optimism through its products and brands

CONT.….
• Strategic Objectives:
• There are several objectives which are associated with Coca-Shake and which
the company plans to accomplish in order to launch its product appropriately in the
market. These objectives are described in detail below:
• For Coca-Shake, the firm is planning to effectively launch a wide social media campaign
through which, the company is aiming to increase its social media traffic by at least 40%
within the next three months.

CONT.….
• Product Description:
• Coca-Shake is a new offering of the company Coca-Cola to its customers which is a unique offering
in the marketplace. The company, through this product is entering into milk-shake segment. Along
with its standard recipe of cola within its drinks, the company has also used. Along with its standard
flavour of cola within its drinks, the company has planned to blend the same with its new milk-shake
recipe which would enhance the taste it would be providing to the consumers. In addition to this,
Coca-Shake would also be using several techniques to reduce saturated fats in this product, like the
shake would be using more fruits to naturally add sugar in the recipe.

CONT.….
• Market Research:
• As one of the key elements, the company would be using effective market research techniques
to ensure that all the needs of customers are rightfully addressed and all the elements of
marketing environment are taken into consideration for product development. Two main
sources of research are considered in the product development which are described below:
• Primary Research
• Secondary Research

CONT.….
• STP Approach:
• To determine the target market, the company has used segmentation, targeting and positioning as
appropriate techniques to identify its target customers. These techniques are discussed below:
• Segmentation:
• Targeting
• Positioning

CONT.….
MARKETING BUDGET
PARTICULARS I Year II Year III Year IV Year V Year
Initial money 4000 8400 13500 13860 17640
Investment 11500 12000 26840 31500 15470
TOTAL 15500 20400 40340 45360 33110
MARKETING OUTLAY
Promotion 6450 2950 4150 3420 3330
Sales publicity 2500 1900 3500 2000 1000
Direct selling 3800 1500 5000 2900 5600
TOTAL 12750 6350 12650 8320 9930

CONCLUSION
Thus, it is concluded, that marketing mix elements are necessary to be effectively utilized
by organization to develop appropriate marketing strategies for their products and services.
Moreover, marketing plan is crucial to determine ways to market a new offering in the most
effective manner

REFERENCES
• Rancati, E., Gordini, N. and Capatina, A., 2016. Conceptualizing and measuring content
marketing in luxury firms: an exploratory analysis. In Global Marketing Strategies for the
Promotion of Luxury Goods (pp. 109-132).
• Purvis, J., 2015. Human resources marketing and recruiting: Essentials of digital recruiting.
Handbook of Human Resources Management, pp.1-19.

•THANK YOU!!!!!