pepsi vs coke final

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VS a VS BUSINESS WAR IN

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BUSINESS WAR IN

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History of pepsi• Pepsi was invented in 1898 by Caleb Bradham.• He was the pharmacist and drugstore owner in New Bern, North Carolina.

• In 1903 he launched the pepsi cola legally on the backroom of his pharmacy with official ly registered U.S patent and trademark.• That year, Caleb sold 7,968 gallons of

syrup, using the theme line "Exhilarating, Invigorating, Aids Digestion."

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• John pemberton in 1886.

• First sales made in jacob’s pharmacy in Atlanta 1886

• It incorporated in 1892 as coco cola company.

• Sales for that first year added up to a total of about $50

where the expenses were $70 which came into loss.

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PRICE OF PEPSI

• Pepsi decides it price on the basis of competition

• The best think about company Pepsi is that it is very flexible

• It has covered all his losses and is now growing rapidly.

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Price of Coke

• Coke was the company ruling tohe markets before the pepsi entered

• Coke has brought in a revolution especially in indian markets with the Rs 5 pricing strategies which was very famous

• Even today, most prices of coke are decided on the basis of competitors in the market

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Oligopoly

• The word OLIGOPOLY is derived from the Greek word oligos which means few.

• Oligopolistic Market is defined as a market characterized by a small number of producers who often act together to control the supply

of a particular good and its market price.• In this market sellers are so few that an

action of any one of them will materially affect price and have a measurable impact on

competitors;

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ADVERTISING STATERGY OF PEPSI:

• Advertising is a common means to increase their sales

• Hundreds of advertisements are published through out the mass media• Uses big brand ambassadors like

Ranbeer , deepika , shahrukh etc• Targets teenager as its current tag line

is “Yeh hai Youngistan meri jaan”

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Advertising strategy of coke

• Coca-Cola has one of the most recognized brands in the world and that recognition is due in large part to the company's careful marketing

and branding efforts• “Thanda matlab coca” –cola was a

very successful campaign• Brand ambassadors : Aamir khan,Gautam Gambhir,Shahrukh

khan

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Competition

• Both Coke and Pepsi are focusing now on other areas to grow their businesses.

• Coke is targeting international growth• Pepsi is growing its snack business.

• Both Coca-Cola and Pepsi were rivals each other trying to dominate the

carbonated soft drink market. • Both brands were undergoing global

advertisement war through print ads and video ads

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Top fizzing brands of the year

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Game theory

• 1: It is an act of thinking of rival companies.

• 2: Then taking the decision accordingly

• 3: making a dominant strategy would be preferred

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PRODUCTS OF PEPSI AND COKE

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SWOT OF PEPSIStrengths Weaknesses

•Pepsi owns the worlds 2nd best selling soft drink•Aggressive marketing strategies using celebrities•A broad portfolio of products

•Carbonate market is in decline•They only target young people

Opportunities Threats

•Increased consumer concerns with regard to drinking waters, snacks etc•Growth in healthier beverages•Growth in functional drinks industry

•Obesity and healthy concerns•Coco-cola increases marketing and innovation spending to $400 globally•Relies on sales of North America only.

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SWOT Analysis of Coke

Strengths Weaknesses•World’s largest brand•Large scale of operations•Robust revenue growth in three segment.

•Negative publicity•Sluggish performance in north America•Decline in cash from operation activities

Opportunities Threats

•Acquisitions intense competition•Growing bottled water market•Has sufficient capital to expand

•Intense competition•Dependence on bottling partners•Sluggish growth of carbonated beverages

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