Pepsi proved to be a potential competitor. Coca-Cola strives to utilize every strategy available to become successful whenever it launches its business in overseas markets. Pepsi seemed to have discovered Coca-Cola’s disadvantages and it was using them to check Coke’s dominance. The new market structure brought about cut throat competition between the two cola giants. However, the competition ate into a large chunk of the two companies’
Coca cola on the other hand is present only in the beverages section. The advantage of Pepsi’s snacks segment is that brands like Lays, Kurkure and Cheetos are in great demand. Quaker oats which is a recent addition is also increasing in demand. Thus the turnover resulting from the Food products is helping the bottom line of the company. Price in the marketing mix of Pepsi Pepsi is in an industry which is dominated by the two biggies – Coca cola and Pepsi.
Therefore we would expect that the demand for both Coke and Pepsi is similar. However, Coca-Cola has the lead in this industry, Coca-Cola outsells Pepsi Cola by around five to six times in the whole cola market. The two firms have had an interesting past and during the great depression from 1922 to 133 in three different occasions Coke has been offered the opportunity to buy Pepsi, but they have declined every time. However, since then there has existed a lot of competition between both kola producers. They compete by spending billions of dollars on advertising, celebrity endorsements, and slogan campaigns.
Coca-Cola creates value to its brands and with good performance to convince people to buy their products. The company heavily invested lots of capital to advertise the products all over the world. While earning good profit, innovation still one of the important strategies in Coca-Cola to gain more wealth. Different new products and packages could attract people to buy. For instance, to run a success business, a firm must know how to dissolve in different culture.
Pricing can be an important factor for this maturity stage because it makes the marketers be aware in which places Coca-Cola is situated. Coca-Cola has been able to lower the price to increase more sales but at the same time the consumers that are loyal don’t have to think because the price has been lowered the quality has also decreased. The place is another important factor; Coca-Cola has exported its merchandise to overseas companies or traders creating a benefit the brand become a worldwide product. Through Coca-Cola’s advertising the brand allows to build a strong brand image and create brand awareness, their aim is to reinforce what a great drink Coca-Cola is through their various campaigns. Another IMC tool is sales promotion; Coca-Cola has to be differentiated from other competitors such as in supermarkets, it uses different strategies: towards the consumer or towards trade.
Thus, Pepsi to do is improve the overall strength, to seize any opportunity to not lose, upgrade and update products, especially to do prior to Coca-Cola, one step better than Coca-Cola, but also to play their true brand, so that consumers to pursue their own such a brand. 3.2.4 Weaknesses/Threats Given the current weakness, Pepsi must accelerate the pace of reform, update technology, improve production efficiency, and follow up product development, better than Coca-Cola to launch more new products in the market. PepsiCo to update future creative, introduce more new things, after all, today's consumers prefer the pursuit of new things, and make the brand more brand-name, this is one of today's consumers eager pursuit. 4. Conclusion After more than a century of fierce market competition, PepsiCo has gone from expansion to contraction, from specialization to diversification and then to specialization, as well as the development of several business
Currently, the main competitor for the Coca – Cola Company is the PepsiCo, Inc., which also has a wide range of beverages under its brand. Both of the companies are the leaders of the carbonated soft drinks industry and they compete in order to surpass. Both companies committed heavily to sponsoring outdoor events and activities in order to advertise their products or brands. Also, there are other soda brands in the market which became popular as they have unique flavors. For example, Dr. Pepper could succeed to emerge in the market with its unique taste.
SWOT of Pepsi: Strengths: - PepsiCo and its products have more demands in the market than the competitors. - The reputation and the established name of the company are very strong in the market. - PepsiCo has more brand loyalty of the customers as most of its consumers are from the young generation who have actually more loyalty to the brands. - The price offer by PepsiCo is satisfied its customers. - PepsiCo name is very strong internationally and of course in the internal market.
The same can also affect its competitors Pepsi. Like coffee chain Starbucks café and Costa coffee also increased. These chains provide a healthy competition, Coca-Cola's carbonated drinks. They may not be a large Coca-Cola competition, but they do weaken its beverage
8/19/2016 Executive summary This report we analysis, Pepsi cola in soft drink/beverage industry in order to recommend the better company for investment. The conclusions are drawn based upon results of financial analysis. A recommendation is given at the end of the report. Both PepsiCo and Coca-Cola are strong leaders in the highly profitable soft drink/beverage industry. PepsiCo achieved slightly better growth rate in sales and net profit.