MBA Project: Marketing Mix of Coke and Pepsi Competitors

This MBA project report offers a comparative analysis of Coca-Cola and PepsiCo, the leading non-alcoholic beverage companies. The report delves into company profiles, objectives, and research questions, followed by a comprehensive literature review covering segmentation, positioning, and SWOT analysis of both companies. The methodology section outlines the research approach, which relies on secondary sources. The analysis chapter meticulously examines the marketing mix elements – product, price, place, and promotion – of both Coke and Pepsi, alongside a comparison of their earnings, sales, and social media presence. The report incorporates graphs to visually represent the comparison. Furthermore, the report provides recommendations for both companies and concludes with an overview of the key findings and insights. The research highlights the aggressive yet customer-focused rivalry between these two giants and their strategies to maintain market dominance in the soft drink industry. The report underscores the importance of understanding marketing mix factors and competitive positioning in a dynamic market environment.

Running head: MBA PROJECT
MBA Project:
An analysis of the marketing mix of two competitors Pepsi and Coke within the same
product-market
Name of Student:
Student Id:
Name of University:
Author’s Note:

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Executive Summary:
This report took into account the comparative analysis of Coke and PepsiCo, the non-
alcoholic beverage giants of the world. They are quite similar in the products they
manufacture, which is why they have been at loggerheads for so many years. Chapter 1 has
discussed about company profiles and the objectives for which the research is being
conducted. Chapter 2 deals with the literature review containing the segmentation and
positioning of the companies in the non-alcoholic beverage market. A comparison and
similarities has been provided to understand where both the companies stand with each other.
Chapter 3 discussed about the research methodology and the researcher has taken in
secondary sources for this particular research study. Chapter 4 was the analysis part which
contains the marketing mix assessment of both the companies and the comparison in earnings
and sales of Coke and PepsiCo. Certain graphs have been provided to understand the
comparison between the companies. Chapter 5 and 6 was where recommendation and
conclusion has been provided respectively in suggesting a few things on how life can be
better for both the giants in the marketplace and the overall summary of the report.

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Table of Contents
1. Introduction:...........................................................................................................................4
Objectives of Research:..............................................................................................................5
Research Questions:...................................................................................................................5
2. Literature Review:..................................................................................................................6
Company Profile:.......................................................................................................................6
Coca Cola:..............................................................................................................................6
Pepsi:......................................................................................................................................7
SWOT Analysis of Pepsi and Coke:......................................................................................7
Strength:.............................................................................................................................7
Weakness:..........................................................................................................................7
Opportunity:.......................................................................................................................8
Threats:...............................................................................................................................8
Pepsi vs Coca Cola: A comparison........................................................................................9
Taste:..................................................................................................................................9
Similarities:........................................................................................................................9
Sweetness:..........................................................................................................................9
Carbonation:.......................................................................................................................9

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Segmentation of Pepsi:...........................................................................................................9
Segmentation of Coca Cola:.................................................................................................10
Brand Positioning:................................................................................................................10
3. Methodology:.......................................................................................................................11
4. Analysis:...............................................................................................................................12
Product:................................................................................................................................12
Price:....................................................................................................................................13
Place/Distribution:................................................................................................................13
Promotion:............................................................................................................................14
Analysis of Comparison of Coke and Pepsi:............................................................................15
A. Earnings:......................................................................................................................15
B. Sales.............................................................................................................................16
C. Social Media Following:.............................................................................................17
5. Recommendations:...............................................................................................................17
6. Conclusion:..........................................................................................................................19
Reference:................................................................................................................................21

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1. Introduction:
In the present metropolitan culture, a lean on the soft drinks among the youths have
become a burning matter. Soft drinks that are available in several flavours being invariably
supported by the urban inhabitants during several occasions such as marriage ceremony,
dinners, birthday and communal get together. It has been seen that children of all ages and
cluster have always been concerned by the mere reveal the term ‘soft drinks’. Over the years,
there has been growing reputation of soft drinks, its production technology, and preservation
along with marketing in the present years witnessing exceptional changes.
The competition for such kind of products within the market has been quite different
from that of some of the other brands. The section of the mass media, particularly with the
emergence of television has contributed much on the ever increasing demand for soft drinks.
The attractive clinks along with the sport makes the larger audience take note of such
products and remember them at all point of times (Rahman and Kumar 2016).
In any sort of market situation, the variables of behavioural/environmental connected
to the customers; environment and competition are constantly incursion. The rivals within a
given industry might have to take many strategic manoeuvres at marketplace during all times.
This sometimes leads to initiating of an insistent campaign of promotion or announcing of a
price decline. The man who has been provided with the responsibility of marketing of the
brand needs to meet all these exercises and duly care for the competitive position of the brand
in the market. The only path that is available to him for attaining this is the planning of his
marketing strategies.
In the current market place that is highly competitive, two companies in the industry
of soft drinks have been dominating immensely. The first being Pepsi Company Inc. that has

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the first opening in New York and the other being Coca Cola that are generated from Atlanta.
These two companies have been fighting it out across the globe for years to enjoy the
bigger chunk of the market share of the ever expanding soft drink industry. This research
paper would deal with the marketing mix factors of Coke and Pepsi and the way they tackle
each other at marketplace to stay ahead in competition. Their rivalry has been unique,
something that started years ago and still continuing. They have been aggressive at times,
quite vocal and direct against each other, though their focus on customer service and quality
products are what that has kept them going.
Objectives of Research:
The main objective of this research study is to evaluate the marketing mix factors of
two rivals that are Coke and Pepsi within the industry of soft drinks. The main focus would
be on the way they strategise in order to stay ahead of each other in the market. Over the
years their rivalry has gained enough attention and attracted many in the way they directly
advertise against each other.
Research Questions:
This research would also take into account the following questions on the basis of which the
research would move and come to a conclusion:
a. What are the marketing mix factors of both Pepsi and Coke within the soft drinks industry?
b. How Pepsi and Coke has been strategizing against each other to stay ahead in the market
competition of soft drinks industry?
c. How Pepsi and Coke position themselves in the market of soft drinks industry?

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2. Literature Review:
Company Profile:
Coca Cola:
Over the years, Coca Cola has been a carbonated soft drink that is being sold in
vending machines, stores and restaurants in and around 200 countries. The Coca Cola
Company of Atlanta, Georgia is manufacturing it. It was originally been intended as a patient
medicine at the time of its invention way back in the era of 19th century by John Pemberton. It
was then brought over by a business man by the name of Griggs Candler whose marketing
strategies led Coca Cola or Coke (as famously known) to its ascendancy in the industry of
soft drinks across the 20th century.
The business of Coca Cola has always been based on consumers trust; that is being
produced by the way they do things as commercial citizens along with their ability to live
upto their values as commercial enterprise. Consumers have put their belief on Coca Cola and
accepted the fact that it does its business as per the reverberation ethical principles, focusing
much on the health of the human community (www.coca-colacompany.com 2017).
Coca Cola has always contributed immensely to the economy of the countries in
which it operates, even in the developing nations like India and Pakistan. It creates job
opportunities for thousands of people in the places where it operates as it has a huge supply
and distribution system. Coca Cola focuses on establishing a workplace where people feel
inspired and motivated to give their best in everything they do. Its focus has been to
maximize the return of their shareholders everytime.

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Pepsi:
Pepsi has been a fizzy drink that is being shaped by PepsiCo. It was generated and
extended in the year 1898 and was set up as ‘Brad’s Drink’ and on later occasion it was
renamed as Pepsi-Cola on June 16, 1903 and later on to Pepsi in the year 1961. It has been
one of the best selling brands existing in this globe, which is being sold over 160 countries.
Pepsi’s mission has been to the world’s leading company of consumer products focusing on
the suitable foods along with beverages. The company believes in producing of financial
rewards for their investors along with providing opportunities for growth and fortification of
their employees, their business partners along with the communities in which they function
(www.pepsico.com 2017). Pepsi has been a company that has initiated programs focusing on
environmental stewardship and actions that benefits the society.
SWOT Analysis of Pepsi and Coke:
Strength:
Both Coke and Pepsi constitute the complicated segment of the culture over a period
of long time. The image of the products is being encumbered with sentimentality and
entertainment, an image that has been taken deeply to heart by many across the globe (Brick
et al. 2017). Both Pepsi and Coke have been the most identifiable brands, which is stated to
be their greatest strength. Moreover their system of bottling also adds to their strength. This
facilitates them in conducting their business operations on a global scale along with
maintaining of the local approach. PepsiCo and Coca Cola have been blessed with the biggest
distribution arrangement across the world (Pavlou and Stewart 2015).
Weakness:
For any business, weakness is one of those factors that needs to be minimized and
observed in order to efficiently attain effectiveness and productivity in the activities of the

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business. The global sale for both the companies is on the rise but for the fact of saturation
that is apparent in the USA cold drink market. Moreover, under the present circumstances
people are becoming more health conscious and their preference for the cola products are
shifting towards healthier drinks (Koschmann and Sheth 2016).
Opportunity:
The recognition of the brand is an important factor that has been affecting Pepsi and
Coca Cola’s competitive position in the market. Both of these are global brands whose
existence has been to every nook and corner of this planet earth. As within the developing
nations, individual consumption of the cola like drink is much lesser that is apparent from the
example of India. In India, it is being stated that per head consumption is only 6 bottles as
compared to 600 in USA and moreover in India, only 5per cent of the brews come under the
term wrapping. The data has pointed out many opportunities for these two giants in the
developing market of soft drinks, which is still unexploited
Threats:
Presently, the threat regarding fresh feasible opponent in the industry of carbonated
soft drinks is not that much considerable. ‘Substitute’ threat in this industry is stated to be a
serious one. The industry of soft drinks is strong, but the patrons are inevitably conjugal to it.
The probable alternatives that have been incessantly putting pressure on Coke and Pepsi
inclusive of juice, milk, tea and coffee. According to Wiener, Bettman and Luce (2015),
approximately 45 per cent of the overall beverage market is being controlled by Coke and
PepsiCo; however the varying health realization of the market is having a serious impact.
Both these companies have been diversified in these sort of markets, but substitute is stated to
be a threat for them. The buying power of consumers is also stated to be a threat for both
Coke and PepsiCo.

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Pepsi vs Coca Cola: A comparison
Taste:
Coca Cola has been recognized as the unique cola, where there is not much difference
in the taste of both these brands. Pepsi mirrored their cola product on that of Coke’s, just
enough difference in their taste that does not actually being the similar drink.
Similarities:
The Coca Cola Classic and Pepsi-Cola, both are stated to be the carbonated beverages of
cola.
Sweetness:
The taste of Pepsi is stated to be much sweeter than that of Coca-Cola. This is one
reason why many people prefer Pepsi over that of Coca-Cola in the blind test. However, they
seem to prefer Coke while drinking a total can.
Carbonation:
It has been examined that Coca-Cola has more carbonation from Pepsi mainly
depending upon the region that one is in. It was being stated that depending upon the location
regarding the quantity of carbonation in them would vary proving the fact that neither of
Pepsi or coca Cola have additional carbonation (Armstrong et al. 2015).
Segmentation of Pepsi:
According to Huang. and Sarigöllü (2014), Pepsi is in the habit of segmenting its
market in many ways. Pepsi primarily segments its market on the basis of demographics,
taking in the factor of age, size of family and income. The behavioural segmentation of Pepsi
has been fundamental to the success of the company. Age is one of the most important
segments of Pepsi. The younger generation is stated to be the main customer of Pepsi,

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especially for the age group from 10 to 35 years. Moreover, Pepsi has also introduced another
product namely Pepsi diet for those who have been suffering from the disease of diabetics
and who would be avoiding sugar under all circumstances.
Segmentation of Coca Cola:
Coca Cola too have been segmenting their market on the basis of age, income of
people and family size. Demographically the company targets the age group of 15-40 years; it
also has different packaging system for different set of customers depending on their income.
The company also focuses on psychographics segmentation where brand conscious people
would not be drinking the beverages of the less recognized brands. They would drink Coca-
Cola to showcase their status to others.
Brand Positioning:
Brand positioning is stated to be the act of planning the offerings of the company
along with the image so that it engages a dissimilar place in the minds of the targeted
consumers (Raja and Kumar 2014). The cola wars between Pepsi and Coke has been for
centuries, both of them being well aware of the competition they have with one another. For
the purpose of distinguishing themselves, they have gone for different target markets. The
marketing and advertising strategies of Pepsi are mainly for 14 year old people and even
younger whereas in case of Coca Cola, their main target has been the Gen Y people along
with the older generation. Coca Cola positions themselves as a drink fit for the overall family
while for Pepsi it is mainly for the teens. These brands have also been positioning themselves
knowing the direct and indirect competitors. Their potent difference lies in the taste along
with the ingredients between the two brands.