Presented By:

Anubhav Choudhary(2013 MGB 1029)

• Coca Cola was started in May 8, 1886 by Dr. John Pemberton.

• First Coca Cola glass was sale for 5 cents in 1886.• First bottle was sold in 1916.• Coca-Cola company of Atlanta(USA) is

registered in US since March 27,1944.• First advertisement published in 1894 in

Georgia.• Coca Cola was bought by Asa Griggs

Candler(businessman).

Strength•Popularity•Strong Marketing•A lot of Finance•Customer Loyalty•CSR•World’s largest share in beverages

Weaknesses•Health Issues•Significant focus on carbonated drinks•Negative publicity•Many brand failures with insignificant amount of revenues

Opportunities•Increasing demand for healthy food and beverages•Bottled water consumption growth•More brand recognition•Advertise its less popular products

Threats•Changing health consciousness attitude•Legal issues•Changing customer preferences•Competition (pepsico)•Saturated carbonated drinks markets

Coca Cola holds worlds largest beverage market share in the world about 40%

Coca Cola advertising expenses accounted more than $3 billion in 2013

Company serves more than 200 countries and more than 1.7 billion per day

Coca Cola is focusing in CSR programs like recycling, energy conservation, water stewardship and many others.

Significant focus on selling Coke, Fenta, Sprite this prove weak as the world is moving towards healthier food and drinks

High debt level, interest rates due to acquire nearly $8 billion of debt

Negative publicity due to criticized for high consumption of water scarce regions and using harmful ingredients.

Company sells more than 500 brands but few are results more than $1 billion sales.

Bottled water consumption increasing day by day

Increasing demand for healthy food and beverages

Consumption of soft drinks still growing in emerging markets specially BRIC countries.

Changing consumer preferences and usage of carbonated drinks is decreasing due to health issues

Water become scarcer which increases criticism of Coca Cola Company for usage of huge amount of water in production

Competition with Pepsico in BRIC countries Saturated carbonated drinks markets which is

threat for Coca cola as carbonated drinks market is declining in the world

Pepsi company was born in Carolinas in 1898. The drink is invented by Caleb Bradham, a

pharmacist in New Bern(North Carolina) The Drink is called Brad’s Drink in 1898 and

renamed as Pepsi in 1961 In 1902 Pepsi cola company is registered to

the U.S. patent office of trademark

Strength•Product Diversity•CSR•Competency in mergers •22 brands earning more than $1 billion per year•Complementary product sales

Weaknesses•Overdependence on Wal-Mart•Low pricing•Questionable practices•Too low net profit margin

Opportunities•Growing snacks and beverages market •Increasing demand for healthy food and beverages•Bottled water consumption growth•Snacks consumption growth

Threats•Changing Consumer taste•Water scarcity•Decreasing profit margin•Strong dollar•Increased Competition with coca cola

Product diversity due to Pepsi has hundreds brand including carbonated and non carbonated drinks and snacks.

Pepsico served to more than 10 million stores per week in more than 200 countries

CSR programs like recycling, water usage reduction and other projects through Pepsicofoundation

Successful marketing and advertising campaigns Proactive and progressive

Overdependence on Wal-Mart i.e. more than 13% revenues of Pepsi comes from Wal-Mart

Pepsi usually prices its products lower than its competitors this reduce quality too

Pepsi using tap water but places view of mountains on its water labels for that Pepsi is criticized

Coca cola has more brand awareness than Pepsi Too low profit margin than coca cola, Pepsico’s

profit margin is 9.7% compared to coca cola’s 18.55%

Pepsico made large investment in BRIC countries to expand its market share.

Increasing consumer demand for healthy food and drinks(juices etc)

Pepsico has been successful in acquiring other companies

Bottled water consumption is expected to grow both in US and rest of world.

Changes consumer taste reduce consumption of soft drinks due to increase interest in healthy products.

Water become scarcer around the world that increase both cost and criticism for Pepsico. over the use of large amount of water for production

Pepsico.’s gross profit margin was decreasing over last past years and may continue to decrease

Legal requirements to disclose negative information on labels.

Pepsico. earn 50% of income from outside US so due to strong dollar Pepsico’s income should fall

Sales

Carbonate Drink

Non Carbonate Drink

Others

Coca Cola and Pepsi acquire major share in soft drink market and always remain war to get majority of market share with each other. In India 61% share of carbonated drink and 36% of non carbonated drink and 2% of drinks like juices, Coffee etc.

A market segment consist of group of customers who share similar set of needs and wants. Rather than creating segment and deciding about target. Both Coca Cola and Pepsi follow similar segmentation strategy for target marketing.

In mass marketing both the companies follow mass marketing strategy in this company target whole market not particular segment of population.

Targeted group of the company is the whole population they want to earn revenue from a segment than their other revenue generator sources. The following are the bases for segmentation:

Geographical Demographic segmentation

Region: Both companies treat hot countries like Asia, Middle East and African. In countries like India and Pakistan invest huge and their target was school, college, restaurants etc.

Rural and Urban Market: Coca Cola spotted the rural market sector because rural sector is more conscious about price so both company introduce 200ml bottle of Rs 5 on 2002 for rural market.

Age: India is consider as young country thus target of both companies is Youth in India. In Europe average population is older than coca cola target older similarly in USA Pepsi target generation X(young)

Gender: As taste of male female is different so coca cola promotes thumbs up for males and fanta for ladies and children. Same in Pepsi Mirinda for ladies and children's.

COCA COLA Brand Localization

Strategy:Two India’s India A: Life ho to aise India B: Thanda mtlb

coca cola Small bottle scheme

PEPSI It was positioned as

new youth cool icon Yeh Dil mange more Mera number kab

aayega? Yeh pyass hai badi Youngistan Change the Game

According to a survey people in Asia are more inclined to them and feel happy when some gives them personal recognition. So in china coca cola starts advertising through mobile phone. This advertisement strategy gives the touch of personal feeling. The sales of coca cola increased through this advertisement strategy.

New advertising method is going in today in which company does not take direct sponsorship but do advertisement outside the main sponsorship area like Cricket world cup in 1996 in which Coca cola take sponsorship and Pepsi done advertisement outside the stadium.

Coca Cola has Brand ambassadors like SachinTendulkar and Salman Khan

Pepsi has Ambassadors like Priyanka Chopra, HrithikRoshan and Ranveer Kapoor

o Coca Cola, Thums

Up

o Diet Coke

o Fenta

o Sprite, limca

o Mazza

o Georgia

o Kinley

o Pepsio Diet Pepsio Mirindao 7 up, Mountain

Dewo Tropicanao Aquafinao Lays, Cheetos

o Sales and Distribution is handled by large bottlers.

o 26 bottling plantso 60 distribution centerso 20 contract packerso Over 70000 retail outlets,

serviced via trucks, tricycles etc

o 300 Million soft drink consumers

o Pioneer in use of vending machines.

o Built up distribution network & bought lot of bottlers

o Production plants & bottling centers were strategically placed all over in India

o Focusing on the Ruralo 37 Bottling plants including

17 owned plants

o Earlier COST BASED pricing

o The Rs 8 bottle(200ml) o Coca Cola Tin Rs

25(300ml)o Coca Cola Rs 75(2L)o Coca Cola spends more

on advertising than manufacturing

o Competition basedo The Rs 8(200ml) o Pepsi Tin Rs

25(300ml)o Pepsi Rs 75(2L)o Very Flexible to come

down with the price very quickly

For some it makes no difference, and for some it’s

a matter of life and death. The taste of both Coca-

Cola and Pepsi is differ, it is concluded that

Pepsi is indeed sweeter than Coca-Cola while

Coca-Cola has more carbonation. They

definitely have different recipes. Coca-Cola

gives the fizzy effect as it has a higher percentage

of carbonation. Coca-Cola is preferred by more

serious and mature drinkers, while Pepsi is loved

by youth and fun-loving people.

THANK YOU