Comparative Analysis: Coca-Cola and PepsiCo Marketing Mix Strategies

This report provides a detailed comparative analysis of the marketing mixes of Coca-Cola and PepsiCo, two leading multinational beverage companies. The analysis focuses on the 7Ps of marketing: Product, Price, Place, Promotion, People, Process, and Physical Evidence. The report examines each element of the marketing mix for both companies, highlighting their strategies, strengths, and weaknesses. It explores how Coca-Cola and PepsiCo compete in the market, including product diversification, pricing strategies, distribution channels, promotional activities, employee management, operational processes, and physical presence. The report also includes a basic marketing plan for Coca-Cola, including SWOT analysis, to achieve organizational goals and objectives. This report offers a comprehensive overview of their marketing approaches to understand their success in the competitive beverage industry.

Marketing Essentials
ACTIVITY 2

Marketing mix- It is a technique used by a firm to develop
strategy and to influence customers to purchase its products. It
refers to putting right product at right time and at right price.
Marketing Mix consists of 7P's of marketing that are Product,
price, place, promotion, people , process and physical evidence.
All these factors are controllable but they are subject to internal
and external marketing environments. These tool are combined
together in order to meet demand and needs of customers.
Marketing mix

In this report, marketing mix of Coca Cola is compared with
Pepsi co. Coca Cola is an American based multinational retailer
company of non alcoholic beverages and syrups. Whereas, Pepsi
Co is an USA based international enterprise of beverages, snack
food and other products(Miller and Spoolman, 2011). These
companies give tough competition to each other and they adopt
different techniques which are mentioned below-
1: Application of marketing mix to achieve
business objectives along with comparison
with competition

Elements Coco Cola Pepsi Co
Product This company offers large variety of
products globally like Coca- Cola, sprite,
fanta, diet coke, minute maid, and so on .
Here, the most sold soft drink among these
is Coca- Cola, which is considered as an
king product of this organisation. These
products are offered to customers in
different sizes and packages. These soft
drinks are available in 200ml, 500ml, 1ltr,
1.5ltr and 2ltr bottles in cans, glass and
plastic bottles. Their packaging is done
nicely which attract customers specially
youngsters. Coca Cola should also start
producing snack food like Pepsi Co.
Pepsi cold drink is the main product of this
company. Other soft drinks offered by this
enterprise are mountain dew and 7 up.
They have also ventured into areas of
snack food such as lays, kurkure and
cheetos. For health conscious customers,
they offer lipton tea and tropicana juices.
The best thing about Pepsi Co is that its
production is not limited to beverages only,
but it had expanded its production in snack
foods also. Kurkure are loved by children
and youngsters. On the other hand, Lipton
tea is consumed by health conscious
consumers.
Price This company charges different prices to
their products. Their pricing strategy
depends upon its quantity and price offered
by their competitors. Because if they will
offer even slight high price than, their
customers might shift to other
brand(Proctor, 2014). This can took place
specially in developing countries where
consumers are price sensitive. This is the
reason why price of soft drinks are almost
similar. The unique feature about this brand
is that it offers discount on bulk sometimes
in order to gain market share. Penetration
pricing strategy is being used by the
organisation.
They have wider range of products as
compared to Coca Cola. For soft drinks ,
they charge almost similar price as their
competitor will charge. For other products,
they offer different prices. The tropicana is
available at high price because it is targeted
to health conscious customers. For chips
and kurkure they offer price according to
quantity one want to purchase. Pepsi Co
also start giving discounts to their products.
It give various offers on products in order
to attract various customers. Company also
uses penetration pricing strategy.
Comparison of marketing mix between two
organizations

Elements Coco Cola Pepsi Co
Place Coca Cola is operating in more than 200
countries all over the world. Its products
are easily available in almost every retail
store. People can also get its beverages in
outlets like Dominoes, Subway. Its
distribution channel is extensive which
makes the availability of its products easy.
Its distribution strategy is up to the mark as
they cover all customers. They had also
started tie up with 5 star hotels. In short,
Coca Cola is expanding its business all
over.
This retail organisation is also available in
more than 200 countries. Customers can
get its products in grocery stores,
restaurants, supermarkets , etc. Lipton and
Tropicana are available at selected outlets
because they are targeted to specific
customers. Pepsi Co can make plans for
working with outlets like Dominoes,
McDonald and Subways. There , they can
cover a large amount of customers.
Promotion For better promotion, coca cola purchase
shelves in big departmental stores and
display its product in a stylish, appealing
and most clear way to attract more
customers(Wilson, 2010). Salesman of
coca cola keep their freezers at eye -
catching position mainly near the entrance
of stores. To increase their sales they also
do sponsorships of different sports events,
collages and for many other activities to
get more share in market. They also do
under crown scheme providing handy
prizes like bicycles, TV sets, etc. to winner
customer which makes this brand more
attractive. It also started using aggressive
advertisement to have a upper hand on its
competitors and hence, Coca cola is giving
a tough competition to its main competitor
Pepsi co by applying all tools of
promotion, including personal promotion
as well as promotions on different media
The target of this company are mainly
youngsters so, to attract them, it make use
of brand ambassadors mainly a young
celebrity or a sports person. It also using
other aggressive advertising containing
slogans, and other attractive features. Pepsi
make use of all media channels including
traditional media channels and also using
trade promotion and sales promotion to
attract more customers. For this purpose,
they are making use of free samples,
discounts, in – store displays, etc. and thus
remain in the competition, giving a strong
fight to its competitors.
Continue…

Elements Coco Cola Pepsi Co
People Success of any company depends on quality of
their employees. Coca cola understands the
importance of its employee and always focus
on their quality, and provides regular
motivation. For this purpose, they make use of
both financial and non – financial incentives.
Financial incentives provided to employees
mainly include rewards for innovation, annual
or quarterly incentives for achievement of
goals, etc. Non – financial incentives includes
opportunity for personal development in form
of promotions. They also provide
encouragement to employees by providing
training, recognition and responsibility. It also
provide care to its customer and also try to
satisfy customer to their maximum level. This
positive attitude of Coca cola toward its
employee and consumer helps in creating a
good brand image which ultimately increase its
sales and market share, providing a threat to its
competitors like Pepsi co.
This company encourages corporate
environment that gives a great importance to
employees and also value diversity at
workplace. It is also in the list of “Best
companies for multi cultural women” by
Working Mother magazine. Also won award
for “Workplace Excellence”. This also shows
that Pepsi co manages and treat their
employees very well. This all provides a inner
motivation to employee to work as hard as they
can to make their company successful and
more profitable. It also gives equal importance
to its customer and try to full fill their needs
and provide maximum satisfaction.
Process Coca cola make a effective and efficient plan
to distribute and deliver its product. Coca cola
is available in different size which increase
ease to access. For more better result,
company improve its infrastructure by
making more use of vizi cooler, freezers,
display racks, shells for collecting free empty
bottles. To make Coca cola Less harmful for
health of customers, they are implementing
changes in their manufacturing process by
using proper quality control techniques.
Pepsi co is using a very convenient way for
distribution and delivery of their products. It is
making use of more natural flavours to attract
more consumer. It also making use of business
outsourcing to manufacture bottles, cans, etc.
which helps it in reducing cost and increasing
profitability. It is also conducting timely
quality control audits done by specialist for
ensuring better health of customers.
Continue…

Elements Coco Cola Pepsi Co
Physical evidence Coca cola always try to provide
physical components for better
interaction with consumers through
proper packaging, branding and by
deciding most suitable place for selling
the product. It is making their presence
in the market with proper advertising
and also giving personal attention to
grab their customers.
For making its physical evidence more
appealing, Pepsi co is using a packing
philosophy of reduce, reuse, recycle,
remove and renew. It is also using many
tools like big hoardings at public place, to
make their presence in the mind of
customers to attract them to buy the
product.
Continue…

Marketing plan is an important component of the business plan
which is commonly set for one year . Through it company get all
the details regarding their marketing activities conducted in the
organization(Yeshin, 2012). This plan is very essential for the
coca cola company because it determines the present position of
the company as well as target marketplace and set of marketing
mix or instrument that is used by the organisation to accomplish
marketing objectives. The plan of the coca cola is as follows :-
Tactics applied by Coca Cola to achieve
organizational goals and objectives

Marketing plan is very necessary for the marketing department
because it is a base for every business. This plan is very
important for the coca cola to implement all the marketing
activities effectively that are planned according to the
requirement of product and service. The company is now moving
from beverages business to the health conscious products so that
coca cola needs effective marketing plan to grow in the
market .The marketing plan of coca cola are as follows :-
2: Formulation of basic marketing plan for an
organization

Coca cola is one of the largest company of soft drinks. They focuses on the
non alcoholic beverages and syrups which are sold in more than 200 countries
in all over the world. Coca cola earns more then 60% of its total profit from
outside the US because of strong brand value in the front of customer's at
global level(Simkin and Dibb, 2013). It also introduced variety in product line
such as diet coke , sugar free coke etc. that helps in expand their target market.
Coca cola has decided to introduce a fresh new product which is energy drink.
It is focuses on the customers which are health conscious or individual who
has involved in any hard working activities such as gym activities or any other
task so that they need some extra energy to perform their task effectively. The
marketing plan of energy drink by coca cola is given as follows :-
Overview of company

SWOT Analysis of Coca Cola

SWOT Analysis of Coca Cola
Strength:-
Coca cola has largest market share in the world wide. It is a leader of the market in soft
drinks because there are only two competitor available in the beverages sector that is
coca cola and Pepsi, out of these coca cola capture more market share then Pepsi.
The company is having lot of customer loyalty because of vast demand and fan
following of the products like maza , coca cola, fanta etc. so it is very difficult for the
customer to find its similar product.
Coca cola has very good as well as huge distribution network that is strength of the the
company. Therefore, it full-fill all the huge demands of the customer's on time by the
help of good distribution network of the company(Terpstra, Foley and Sarathy, 2012).