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].
Coca- cola brand believed in the following as a way to lead their brand in the market : Affordability: coca-cola is aimed at the all classes in general but middle class in specific, also it means offering a wide variety of desirable, good quality products in proper packages for the right occasions at the" right price" . Coca Cola uses lower price point to penetrate new markets that are mainly sensitive to price, Coca- Cola does that to face the competition and to raise brand awareness.
to increase profitability in Egypt -Questions should be discussed and covered by the end of the research: 1) What are the factors that may affect the market share? 2) What factors cause Coca Cola 's customers to switch to its competitors in such industry (Pepsico)? 3) Is Coca Cola able to be the leader of the beverage industry? 4) What 's the relation between profitability and market
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’
In this stage sales will eventually peak and stabilize as saturation occurs, hastening competitive shake-out as can be seen in the global beer market. Carlsberg battles for market share by introducing product improvements, using advertising and sales promotional offers, dealer discounting and price cutting. Similarly, the need for effective brand building is felt most acutely during maturity and brand leaders are in the strongest position to resist pressure on profit margins. Strategic marketing objective Hold Strategic focus Protect share Brand objective Brand loyalty Products Differentiated Promotion Maintaining awareness / repeat purchase Price Lowest Distribution Intensive Chapter 6, page 158, table 6.5 – Marketing objectives and strategies over the product life cycle 2. The Boston Consulting Group’s (BCG’s) growth-share matrix is a technique borrowed from strategic management that has proved useful in helping companies to make product mix and/ or product line decisions.
Recommendations • Since there are older people and Pepsi has been traditionally a young people’s drink, Pepsi will have to stimulate consumption by older members of society • Pepsi uses Plastic bottles and cans which can be harmful for society. So Pepsi should be produced more in recyclable bottle • Need to improve PR activities in urban areas • In our country, with brand name people prefer Pepsi 23% but without brand name it is 51%. So need to improve its brand value. • Should increase promotion strategy to introduce new product line like Pepsi next, Pepsi zero etc.
1.2. Product Differentiation This refers to differentiation that aspires to make a product more attractive by contrasting its unique qualities with other competing products (Investopedia, 2015:1), as in the case of Coca-Cola, other soft drink brands. Successfully adopting this strategy would have a company gaining a competitive advantage, as the customer would then view the product as unique or superior. This is what coca cola has managed to do, and has managed to do it on a scale that is globally unique, and globally recognized. Much proof would indicate that Coca-Cola has definitely chosen a differentiation strategy since its early days.
MARKETING MIX The marketing mix is a standard strategic tool used to formulate a plan for product development and promotions. Examining the mix for a successful company like Coca-Cola can help a business leader understand the dynamics and synergy involved between the four core elements -- product, place, price and promotion. Product • Energy drinks • Soft drinks • Juice drinks • Sports drinks • Tea and coffee • Water Product overview of coca cola Coca cola made its return to india in 1993 and made significant investments to ensure that the beverage is available to more and more people, even in the remote and inaccessible parts of the nation. Originally introduced ij 1977, thums up was acquired by the coca cola company in 1993. This
This procedure is best for contenders who offer items focusing on a more extensive gathering of clients with various tastes and inclinations. The organization, like PepsiCo would search for uncommon needs of the purchasers. Pleasant bundling and distinctive naming for occurrence in a given part of the business sector would permit PepsiCo to offer more than Coca-Cola in that area of the business sector. With cost leadership system, the principal point is for the organization to deliver its items at the most minimal expense. By PepsiCo attempts to minimize the expense of generation, it can offer at low cost in the business sector.
“Why does a business includes intermediaries? The answer is in Reduction of distribution costs. Intermediaries are best in selling. They know all contacts, experience and scale of operation it means that more sales can be achieved than if the producing business makes to run a sales operation itself. 1.4 OBJECTIVES OF THE STUDY :: Primary Objectives: “The primary objective behind this project is to study and understand the distribution channel and its effectiveness in bringing PepsiCo products at the right time to right customers” Secondary Objectives: To study the performance level of the existing distribution channel.