Marketing Strategies of Coca-Cola and PepsiCo: A Comparative Analysis

This report provides a comprehensive comparative analysis of the marketing strategies employed by Coca-Cola and PepsiCo, two dominant players in the global non-alcoholic beverage industry. The report examines their product portfolios, including carbonated soft drinks, juices, and other beverag...Read More

Running head: PRINCIPLE OF MARKETING
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1PRINCIPLE OF MARKETING
Introduction
The marketing mix considered the set of tactics, which an organization uses to promote their
product and brand in the market. A marketing mix is an essential tool which includes all of the
variables that indicates the demand for the products and services offered by the organization. The
4P’s marketing mix variables are – product, price, place, and promotion. This paper concentrates
on the marketing mix strategies of the chosen two food and beverage industry Coca Cola and
PepsiCo and identifies where their marketing strategies are similar and where they are different.
And also consider their social responsibilities towards customers.

2PRINCIPLE OF MARKETING
Discussion
Coca Cola and PepsiCo both are the top two non-alcoholic soft drinks producer and marketer in
the world. They are the two major competitors in the food and beverage industry. These two
companies are near of the same size, and they have similar products and the same branding
strategy.
Marketing Mix of Coca-Cola
Product
Coca Cola has a wide range of product line and provides different products in various countries.
The company adapts its product on the basis of consumer preference and various regional tastes
(Coca Cola, 2019)
Coca Cola offers the following products-
 Coca Cola (most famous and maximum selling carbonated drinks)
 Sprite (Lime flavored drinks)
 Diet Coke (Low calorie contain drinks)
 Ciel ( Fresh non-carbonated packaged water)
 Minute Maid ( Juice)
 Coca Cola Zero ( Sugarless soft drinks)
 Powerade (Energy drinks)
 Powerade Zero ( Low calorie contain sports drinks)
 Simply Orange ( Orange flavored Juices)
 Fanta ( Orange flavored soft drinks)
 Coca Cola Life ( Drinks which contain cane sugar and extract of stevia leave)

3PRINCIPLE OF MARKETING
 Fresca ( Caffeine-free drinks)
 Glaceau Vitamin Water ( Water, which provides nutrients)
 Dell Valle ( Juices)
Price
PepsiCo is the main competitor of this company. Both are the closest rival in the soft drinks
industry. The pricing strategy of Coca Cola is aimed at powerful brand loyalty. Due to great
rivalry, Coca-Cola adopts a competitive pricing strategy. If the price of Coca-cola’s products in a
specific segment is very high as compared to PepsiCo, then the buyers might switch alternative
brand. Because nowadays, consumers are very price sensitive.
Place
Coca-Cola’s products can be found in more than two hundred countries in the world. And has a
large distribution channel that not only covers the metropolitan cities, also covers rural areas.
The products of Coca-Cola mainly sold in local shops, restaurant, café, and supermarkets.
Promotion
Coca-Cola is known as a popular brand in all over the world because of its powerful marketing
strategy. They use an appropriate mix of BTL, ATL, and digital platforms for promoting its
products and developing their brand awareness (Elmore, 2014). Due to intense rivalry in the
beverage industry Coca-Cola hugely focus on their advertising to increase their sales. Coca-Cola
uses various methods to promotes their products-
 Uses celebrity to advertise its product

4PRINCIPLE OF MARKETING
 Advertising in magazines and Television, Coca-cola mainly depends on television
advertisement to find out the masses and various promotional campaigns to attach with
consumers emotionally.
 Sponsorship activities
4P’s of PepsiCo
Product
Carbonated soft drinks are the main product of PepsiCo (PepsiCo Home, 2019). The products in
their marketing mix are generally carbonated soft drinks, along with various snacks and fruit
juices.
Product Portfolio of PepsiCo
 Lay’s (Potato chips)
 Mountain Dew ( High carbonated drinks)
 Tropicana ( Fruit juices)
 Teas ( Joint venture between Lipton teas and Pepsi)
 Cheetos (Gluten-free Chips)
 Aquafina (mineral water)
 Pepsi Max ( Zero calorie contain beverage)
 Mirinda ( Orange flavored drinks)
 Gatorade (Sports drinks)
 Mist Twist ( lemon-lime juice)

5PRINCIPLE OF MARKETING
Price
The Food and beverage industry mainly dominated by two major companies- PepsiCo and coca-
cola. Thus the company uses competitive pricing policy. Pepsi offers a promotional discount as
well as a concession on bulk buying. For buyers, as the size of the container increases, the
amount of discount also increases. For the distributor, the concession is based on quantity.
Place
The company operates its business more than 250 countries, and they have a broad distribution
network that covers every corner of the world. PepsiCo produces soft drinks and transports it to
the bottlers placed in different parts of the world. The products of Pepsi are sold in almost every
local shop, general and supermarket, café, restaurant and even in vending machines.
Promotion
The company focuses mainly youngsters through the different brand ambassador. Pepsi spends a
huge amount of money annually on promoting its brand and build trust in customer’s mind. Pepsi
uses digital channels, social media, TV advertisement and various promotional campaigns for
their promotion. Through their advertisement, they focus the youngster's customers who can
relate to energetic, young and sporty of the brand.

6PRINCIPLE OF MARKETING
Similarities and Differences of marketing Mix
The marketing strategy of both the two company is near about the same. In the past Coke uses
cost-based pricing strategy, i.e. the cost which was decided on product manufacturing price plus
profit and other expenses. But after the emergence of other competitors Pepsi, Coca-Cola
changes their pricing strategy. Coca- Cola started their new pricing strategy which is based on
competition. Due to strong rivalry, Pepsi also uses the same marketing strategy for the existence
of this industry. They also have the same product portfolio. Coke and Pepsi have a various
number of products. All the product are almost same. Due to almost same product portfolio, the
competition is very high. Both the two companies are popular for their promotional campaign.
The promotional strategy of both this company is slightly different. Coke mainly focused on
different country’s culture and music to attract their customer. But Pepsi relied on ads featuring
pop stars, film stars and also sports players. Pepsi is more focused on celebrity endorsement
rather than Coca-Cola (Malik & Guptha, 2014).
Product positioning
Coca Cola
Coca Cola use product positioning in order to have unchanged image all around the world. This
strategy of Coca Cola creates to great loyalty of consumer and make their buying decision more.
Coca Cola has been famous by its exclusive selling preposition which is related to – Joy and
happiness. Peoples are generally associated with Coca Cola with these emotion.

7PRINCIPLE OF MARKETING
Pepsi
Pepsi creates culture and embrace independently. Pepsi product positioning has always been as a
fresh cola beverage for the youngsters, just about each social occasion.
Ethical and Social responsibility towards Consumer
Coca Cola
 The company give back 1% of its annual revenue for charitable causes (Chouthoy &
Kazi, 2016).
 The company has announced to reduce carbon food print by 26% by 2020
 Coca Cola provides consumer education through packaging information on calorie and
other nutrients
 Cola- cola reduces the calorie level and promote healthier drinks
Pepsi
 The company produce the high quality and safe beverages and foods in each part of the
globe
 Pepsi reducing and recycling the plastic packaging
 Working to achieve an reduction In GHG emission across the global business
 In 2016 PepsiCo spent USD 1.5 billion of minority woman.

8PRINCIPLE OF MARKETING
Conclusion
From the above study we can conclude that Coca Cola and Pepsi co both the company’s
marketing strategy is near about same. These two companies are near of the same size, and they
have similar products and the same branding strategy. So, the competition is very high. In
beverage industry they are the top two leading industry. An effective marketing strategy bring
together to achieve the marketing needs and delivering to consumer wants and needs

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References
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