coke vs pepsi - marketing mix
TRANSCRIPT
Founded by John Pemberton in 1886. 1887: Registered as trademark. 1895: Sold in every state & territory in US.
2003:Headquartered in Atlanta with divisions & local operations in over 200 countries worldwide.
- 70% income outside US.
Coca-Cola: A Brief Introduction
1977: Coca-cola was thrown out. 1993: Re-entry in India. 1993-2003 : Invested more than US $1b in India- top international investor.
2003-2008: No. 1 soft drink company in India.
Coke: in India
1899: Founded by Caleb Bradham. 1902: Applied for trademark in US. 1923: Declared bankrupt & assets sold.
1985: Gain entry in India 1988 - Succeeded with Pepsi Food India Limited Project as a JV of
- Punjab Agro Industrial corporation - & Voltas India Limited.
PEPSI: A Brief Introduction
1991: Marketed & sold as Lehar Pepsi. 1994: Bought out its partner and become a
fully owned subsidiary. Today it is the No. 2 soft drink company in
India.
Pepsi: In India
COKE Energy 100
kcal Carbohydrate, by
difference 27 g
Sugars, total 27 g
Potassium, K 10 mg
Sodium, Na 25 mg
PEPSI Energy
97 kcal Carbohydrate, by
difference 27 g
Phosphorus, P 41 mg
Sodium, Na 33 mg
Nutrition facts
COCA-COLA57.8
%
PEPSI
35.6%
MARKET SHARE
Product Price Place
Promotion
Marketing Mix
PRODUCT
Products
PLACE
HUB & Spoke Model of Distribution
Both Pepsi and Coke follow the Hub and Spoke model of distribution in rural India.
Coke Distribution Channels
Company
Independent Bottlers (Syrup + Carbonated Water)
Retailers
Customers
Sales & Distribution is actually handled by a large number of bottlers.
26 bottling plants 60 distribution centers. 20 contract packers Over 70000 retail outlets serviced via trucks, converted three wheelers, tricycles & push carts.
300 million soft drink consumers
Coke Distribution Channels
Aggressive in developing distribution network & pushing sales forcePioneer in use of Vending machines and Restaurant channelsBuilt up distribution network & bought out a lot of Bottlers to establish itself in the marketProduction plants and bottling centers were strategically placed in large cities all around India
DISTRIBUTION NETWORK OF PEPSIIN INDIA
Focusing on the rural customer as rural India constituting of 2/3 of India's entire populationPepsiCo has 37 bottling plants in India, including 17 company-owned plants and 20 owned by franchisee partners
DISTRIBUTION NETWORK OF PEPSIIN INDIA (contd.)
PRICE
Competition basedVery flexible to come down with the price very quickly
Earlier COST BASED Pricing. The Rs. 5 Marketing revolution.Nowadays, Coke spends more on advertising than manufacturing
Price
PROMOTION
COKE PEPSI
Entered after Pepsi in 1993
Pepsi entered in 1988
Gained from demand created by Pepsi
Had a head-start over Coke
Tried to sell an American way of life
Focused on the Indian youth
Failed to resonate as expected
Was successful.
PROMOTION
Coke brand ambassador
Pepsi brand ambassador
Advertising and Promotion
Brand Localization Strategy: The Two Indias
India A: “Life ho to aisi” India B: “Thanda Matlab Coca-Cola” Small bottle scheme.
Marketing Campaigns by Coke
Pepsi balance 2 influences in the minds of the customers:
‘You’re cool the way you are’ ‘Don’t try to be any different’ It was positioned as the new ‘cool’ icon.
Marketing by Pepsi
Advertising and Promotion
‘Nothing Official About It’ ‘Yeh Dil Maange More’ ‘Mera Number Kab Ayega?’ ‘Yeh Pyaas Hai Badi’
Several Marketing campaigns
PEPSI-COLA WARS
Bottling Advertising Product Launches Other Fronts Poaching
WARS
Thank You