Coca Cola Company Vs Pepsi

1351 Words6 Pages
This paper compares the strategy of two multinational companies, Coca-Cola company and PepsiCo Inc. The article is based on research conducted using information available on the company website such as their annual statement and shareholder proxy statement. This paper then, compare and contrast the strengths, weaknesses, opportunities, and threats on their brand, pricing, advertising, and presence. It further examines the compensation package that supports their growth strategy. Both the companies have been successful, and while Coca-Cola has the highest band equity PepsiCo is showing considerable growth, due to its product mix, healthy focus and its strategy from moving away from sugary drinks.

The Coca-Cola Company is the world’s
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It includes, the logo, the perception in the mind of customer. The brand`s power is derived from the name recognition across the world which results in higher sales volume and profit margins. Brand awareness is so huge that people buy products for the brand rather than the product itself. This has also defined the marketing techniques for the company. Coca-Cola`s marketing is focused more on the brand itself rather than the product it sells. This awareness is created by various marketing communications, such as advertisement and packaging. The company marketing expenses as reported on their 2017 annual report stated, “The aggregate amount of funds provided by our Company to bottlers, resellers or other customers of our Company’s products, principally for participation in promotional and marketing programs, was $6.2 billion in 2017” (p.7).
Since Coca-Cola sells many brands, it segments products for specific group. Coca Cola adapts its marketing strategy by developing new products that addresses new segments. Marketing strategies include mass audience as well as niche marketing for certain products to drive sales in the competitive market. Its Cola is popular worldwide for mass market, but it also created Diet coke for niche segment for people who are more health
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According to PepsiCo`s Proxy Statement (2017), “We provide market-competitive programs that enable PepsiCo to attract and retain highly talented individuals with pay directly linked to the achievement of performance goals designed to foster the creation of sustainable long-term shareholder value” (p. 40). They also have detailed their compensation that aligns perfectly with their strategic priorities such as, innovation, brand building, execution, productivity. Performance with purpose and cash return to shareholders, which shows their commitment to attracting the best
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