Marketing Strategy Of Coca-Cola And Pepsi

The marketing analysis described in this section is done in purview of the 'marketing mix ' which is basically a set of tools to achieve objectives of a company . Marketing strategy of two main CSD market competitors: Coca-Cola & Pepsi will be Discussed here. Both are well-known brands belong to Forbes list of worlds most valuable brands . Therefore it makes sense to say that these two beverage companies know how to do marketing, Their differences will be discussed here in marketing mix context or simply 4 P 's Model namely Price, Price, Place & Promotion.

Figure 5: Marketing Mix Pictorial Representation (Marketing mix Pictorial Representation [Print Photo]. Retrieved from http://inglessa.blogspot.com/2012/05/os-4ps-do-marketing.html)

Price is part of the marketing mix which people use as central variable while developing a marketing plan. Pricing plays important role marketing mix. Both price and pricing strategy are crucial in marketing process. Mainly Coca-Cola & Pepsi face competition from each other but from other companies in CSD markets as well, they are both dominating the CSD market and existing situation is called oligopoly. This means that they have more pricing power compared to perfect market. Their pricing is highly influenced by competition, as both Coke and Pepsi are substitutes for each other and therefore, if Coca-Cola increases its price, many of its consumers will switch to Pepsi . In US coca cola pricing strategy differs from its rival in the sense that it pricing is based on the value it creates for different situations. This is why Coca cola 's price per liter can vary depending on factors like packaging, location etc. Pepsi takes this value based pricing strategy a bit further with their model. This pricing strategy is an effort to make customers buy Pepsi not only when it is on sale, although Coca-Cola’s pricing is nowadays slightly more

Promotion has variables like Advertising, Publicity/public relations, sales etc . These variables and its specifics helps in making a promotional plan. Promoting has a huge influence on success of beverages like Coca cola and Pepsi . Both Coca-Cola and Pepsi heavily promote their products on TV, Radio, Internet, In stores etc, They both also promote via sponsorship using celebrities from movies and sports , needless to say they both spend Millions of dollars for promotion. However, Rivalry helps them keep committed & responsible to their marketing acts . For example nowadays they emphasize more on the Health & Environmental safety Example: Promotion of Zero calorie Beverages & replenishment of ground water. Nowadays most CSD companies uses similar promoting tools but their tactics varies because of difference in their