Marketing Management - Pepsi And Coca Cola
Added on 2020-01-28
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Marketing Management
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1Value propositions and their uses in gaining competitive advantage.........................................1LO 2.................................................................................................................................................3Evaluation of Value propositions................................................................................................3LO 3.................................................................................................................................................5Benchmarking the two value proposition...................................................................................5LO 4.................................................................................................................................................6Identification of new value propositions.....................................................................................6Implementation of value proposition..........................................................................................7CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONMarketing management is the major activities which are focused on the practicalapplications of the methods, techniques and marketing orientations used by the company. Thescope of this management is totally dependent on the size of the business and the industry inwhich the firm is operating their business (Wagner and Eggert, 2016). Any effectivemanagement of marketing will utilize all the available resources of the company to increase thequality of products and services as well as to improve the consumer's attraction. This report willinclude all the functioning and value propositions of Pepsi and Coca Cola. Further, this reportwill cover all the model's and their functions used by these companies to gain the competitiveadvantage in the market. LO 1Value propositions and their uses in gaining competitive advantageValue proposition of Pepsi and Coca Cola are the new innovations and services which areused by these companies so that more number of customers will get attracted towards theproduct (Menaria, 2015). It is very compulsory that whenever the company is developing theirpropositions, it should be very clear and concise. These suggestions are juts like a promise theorganisation is giving to their consumers to assure them that they will get value aided productsfrom both Pepsi and Coca Cola. For identifying the values of the consumers, these organisationsare using Sheth Model and Holbrook model. Howard-Sheth modelThis model is using the problem solving approach of the consumers in their buyingbehaviour by using system approach or input-output approach (Mazzacano and Falzon, 2015).This model is based on 4 major headings or variables, that are;1. Input variables: These are the variables which will influence the buying activity of theconsumers. The specific functions which will originate from these marketing activities of Pepsiand Coca Cola will have three types;a) Significant incentives: The products of Pepsi and Coca Cola which will show thephysical characteristics like price, accessibility, originality and quality. If the products are havinggood quality at the affordable price, then customers will go for that merchandise irrespective oftheir company (Gray, 2016). 1
b) Symbolic incentives: The looks and appearance of the product which is showing all thevisual characteristics will also put an influence on the buying behaviour. The advertisingmediums and promotional messages used by Pepsi and Coca Cola will also put an impact on theconsumers to go for their product. c) Social incentives: This means that whether the product is usable to all the familymembers and all age groups. The consumer of more social nature will go for that product whichcan be used by all the family members (Benstead and Reif, 2015). So Pepsi and Coca Cola haveto make sure that their product is more focused on social environment, so that they can gaincompetitive advantage over each other. 2. Hypothetical constructs: This will include all the psychological variables which willinfluence the decision making process of the consumer while buying the product. All theconstructs of the product of Pepsi and Coca Cola which is showing the information and theirmessage sensitivity. The company have to make sure that their products are not showing anykind of sensitive messages and they are not blocking any kind of information which willinfluence the buying decisions of the consumers. 3. Output variables: These will include the purchase intention, brand perception, attitudeand the attention of the product. Pepsi is making the products according to the interest of theconsumers, while Coca Cola's products are more focused towards affordability of their product(Elangeswaran and Ragel, 2014). These variables will include intention, purchasing behaviour,comprehension, cognition. This means the consumer's attitude with respect to their products, theinformation containing on the product and the behaviour of the consumers whether they want tobuy that merchandise or not. 4. External variables: These are not directly involved with the decision making processbut they can have significant impact on the decisions made by the consumers. These variableswill include the purchasing value of buyer. This will also include the financial condition of theconsumers, the time taken by them in buying that product and the character trait, which willinfluence the buying behaviour of the consumer (Ballard and et.al., 2015). Holbrook ModelThis model is based on the real life experience. This means that Pepsi and Coca Colaproduct values with respect to the consumers perception. The value of the product can besubjective, comparative or specific. This will be based on three main dimensions which includes2
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