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http://www.slideshare.net/anilkr
123/coke-pepsi-rivalry

Marketing Mix
Marketing Mix is the set of marketing tools that the firm uses to
pursue its marketing objectives. Marketing mix has a classification
for these marketing tools. These marketing are classified and called
as the Four Ps i.e. Product, Price, Place and Promotion.
The most basic marketing tool is product which includes product
design, quality, features, branding, and packaging.
A critical marketing tool is price i.e. the amount of money that
customers pay for the product. It also includes discounts,
allowances, credit terms and payment period.
Place is another key marketing mix tool. And it includes various
activities the company undertakes to make the product accessible
and available to the customer. Some factors that decide the place are
transport facilities, channels of distribution, coverage area, etc.
Promotion is the fourth marketing mix tool which includes all the
activities that the company undertakes to communicate and promote
its product to target market. Promotion includes sales promotion,
advertising, sales force, public relations, direct marketing, etc.

Product
In marketing, a product is anything that can be offered to a market
that might satisfy a want or need. It is of two types: Tangible
(physical) and Intangible (non-physical). Since services have been
at the forefront of all modern marketing strategies, some
intangibility has become essential part of marketing offers. It is
therefore the complete bundle of benefits or satisfactions that
buyers perceive they will obtain if they purchase the product. It is
the sum of all physical, psychological, symbolic, and service
attributes, not just the physical merchandise. All products offered in
a market can be placed between Tangible (Pure Product) and
Intangible (Pure Service) spectrum.

A product is similar to goods. In accounting, goods are physical

objects that are available in the marketplace. This differentiates
them from a service, which is a non-material product. The term
goods is used primarily by those that wish to abstract from the
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details of a given product. As such it is useful in accounting and

economic models. The term product is used primarily by those that
wish to examine the details and richness of a specific market
offering. As such it is useful to marketers, managers, and quality
control specialists.

A service is a non-material or intangible product - such as

professional consultancy, serving, or an entertainment experience.

Coke - Product
The Coca-Cola formula is The Coca-Cola Company's secret recipe
for Coca-Cola. As a publicity marketing strategy started by Robert
W. Woodruff, the company presents the formula as one of the most
closely held trade secrets ever and only a few employees know or
have access to. This Coca-Cola formula appears to be the original
formula to Coca-Cola. It is from the book “For God, Country and
Coca-Cola”.

The company Coca-cola is a multinational and it is not limited to

one product. Through the years they have invented and introduced
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many products than their main cola drinks. The list of Coca-cola
brands are as follows:

1. Appletiser 36. Lemon & Paeroa

2. Aquarius 37. Lift
3. BPM Energy 38. Lift plus
4. Barq's 39. Lilt
5. Beat soda 40. Manzana Lift
6. Beverly 41. Mare Rosso
7. Cannings 42. Mello Yello
8. Cheers 43. Mezzo Mix
9. Ciel 44. Minute Maid
10. Coca-Cola Black 45. Nestea
Cherry Vanilla 46. New Coke
11. Coca-Cola Blak 47. Nordic Mist
12. Coca-Cola C2 48. OK Soda
13. Coca-Cola Cherry 49. Pibb Xtra
14. Coca-Cola Citra 50. Powerade
15. Coca-Cola M5 51. Qoo
16. Coca-Cola Zero 52. Raspberry Coke
17. Coca-Cola 53. Relentless
18. Coca-Cola with 54. Sarsi
Lemon 55. Senzao
19. Coca-Cola with Lime 56. Simply Orange
20. Dasani 57. Smart
21. Delaware Punch 58. Sparkle
22. Diet Coke 59. Sprite
23. Fanta 60. Sprite Ice
24. Fanta Citrus 61. Sprite Remix
25. Fioravanti 62. Sprite Zero
26. Fresca 63. Surge
27. Frisco 64. Swerve
28. Fruitopia 65. Tab
29. Frutonic 66. Tab Clear
30. Full Throttle 67. Tab Energy
31. Georgia 68. Tab X-Tra
32. Hi-C 69. Tiky
33. Hit 70. Vault
34. Kia-Ora
35. Kinley
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Pepsi - Product
The Pepsi-Cola drink contains basic ingredients found in most other
similar drinks including carbonated water, high fructose corn syrup,
sugar, colorings, phosphoric acid, caffeine, citric acid and natural
flavors. The caffeine free Pepsi-Cola contains the same ingredients
but no caffeine.
Some of the different and varied brands of Pepsi are as follows:

1. All Sport 18. Pepsi

2. Aquafina 19. Pepsi Blue
3. Caffeine-Free Pepsi 20. Pepsi Cappuccino
4. Crystal Pepsi 21. Pepsi Max
5. Diet Pepsi 22. Pepsi ONE
6. Gatorade 23. Pepsi Samba
7. Izze 24. Pepsi Tarik
8. Jazz 25. Pepsi Twist
9. Josta 26. Propel Fitness Water
10. Kas 27. Sierra Mist
11. Manzanita Sol 28. Slice
12. Mirinda 29. SoBe
13. Mountain Dew 30. Storm
14. Mountain Dew AMP 31. Teem
15. Mountain Dew LiveWire 32. Tropicana Products
16. Mountain Dew MDX 33. Tropicana Twister
17. Mug Root Beer
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Coke v/s Pepsi-Product

As seen above both the companies Coke and Pepsi have a number of
products. Many of these products are innovations but there are also
many products which are brought out just as a competitive product
for the other companies. Some of these products that are brought in
the market by both the companies to compete against each other are
as follows:

Coke Pepsi

The main dark cola drink of the company Pepsi version of dark cola which is the
which started the rivalry between these major primary competitor to Coke.
companies.

Full Throttle is an energy drink AMP is an energy drink produced

brand produced by The Coca- and distributed by PepsiCo under
Cola Company. It debuted in late the Mountain Dew soft drink
2004 in North America. brand.

Vault is a carbonated beverage
that was released by The Coca-
Cola Company in June 2005.
Powerade is a sports drink by
The Coca-Cola Company and
currently number two in the
sports drink market worldwide.
Sprite is a clear, lemon-lime
flavored, non-caffeinated soft
drink, produced by the Coca-Cola
Company. It was introduced to
the United States in 1961.
Minute Maid is a product line of
beverages, usually associated
with orange juice, but now
extends to soft drinks of many
kinds. The Minute Maid company
is now owned by Coca-Cola, and
is the world's largest marketer of
fruit juices and drinks. It is
headquartered in Houston, Texas.
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Mountain Dew MDX is an energy
drink manufactured and
distributed by PepsiCo under the
Mountain Dew brand. It was
introduced in 2005.
Gatorade is a non-carbonated
sports drink marketed by Quaker
Oats Company, a division of
PepsiCo. Originally made for
athletes, it is now often
consumed as a snack beverage.
7 Up is a brand of a lemon-lime flavored
soft drink.
Tropicana Products is an
American company based in
Bradenton, Florida, USA, which
is one of the world's largest
producers and marketers of
orange juice. It has been owned
by PepsiCo, Inc. since 1998.
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Nestea is a brand of iced tea Lipton Original Iced Tea is a

manufactured and distributed by
the Nestle company's beverage
department in the United States,
and by Coca-Cola in several
European countries, Brazil and
Venezuela.
ready-to-drink iced tea brand
sold by Lipton through a
worldwide partnership with
Pepsi.

Barq's is a brand of root beer Mug Root Beer is a brand name of root
notable for being the only major beer made by the Pepsi company.
North American root beer to
contain caffeine. It has been
bottled since the start of the 20th
century and is currently sold by
the Coca-Cola Company.

Diet Coke or Diet Coca-Cola is a Diet Pepsi is a low-calorie

sugar-free soft drink produced carbonated cola. It was
and distributed by The Coca-Cola introduced in 1964 as a variant of
Company. It was introduced in Pepsi-Cola with no sugar.
the United States in July 1982.
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Kinley is a brand of still or Aquafina is a non-carbonated bottled water

carbonated water owned by The produced by PepsiCo.
Coca-Cola Company.

Aquarius is a mineral sports All Sport was a sports drink. It is

drink manufactured by The Coca- produced by PepsiCo.
Cola Company. It was first
introduced in 1983.

Fanta is a soft drink brand owned Mirinda is a brand of soft drink.

by The Coca-Cola Company. It is Mirinda is owned by PepsiCo.
produced and distributed by The
Coca-Cola Company's bottlers.

Sprite Ice was the first flavor Pepsi Blue is a soft drink made by PepsiCo
extension for The Coca-Cola and launched in mid-2002.
Company's Sprite brand soft
drink.
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Coca-Cola Blak is a coffee- Pepsi Cappuccino is a

flavoured soft drink introduced cappuccino-flavored carbonated
by Coca-Cola in 2006. soft drink produced by Pepsico.

Maaza is a Coca-Cola fruit drink Slice is a line of fruit-flavored

brand marketed in India and soft drinks manufactured by
Bangladesh. PepsiCo and introduced in 1984.

Limca is a lemon and lime Teem was a lemon-lime-flavored

flavoured carbonated soft drink soft drink produced by The
made in India by Coca-cola. Pepsi-Cola Company.

Price
In economics and business, the price is the assigned numerical
monetary value of a good, service or asset.
Price is also central to marketing where it is one of the four
variables in the marketing mix that business people use to develop a
marketing plan.
Pricing is a big part of the marketing mix. Choosing the right
price and the right pricing strategy is crucial to the marketing
process.
The price of the product is not something that is fixed. On the
other hand the price of the product depends on many other factors.
Some times the price of the product has got nothing to do with the
actual product itself. The price may act as a way to attract target
customers.
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The price of the product is decided keeping many things in mind.

These things include factors like cost incurred on the product, target
market, competitors, consumer buying capacity etc.

Coke - Price
Coke was a company ruling the markets before Pepsi entered.
Earlier the price of coke was cost based i.e. it was decided on the
cost which was spent on making the product plus the profit and other
expenses.

But after the emergence of other companies especially the likes

of Pepsi, Coca-cola started with a pricing strategy based on the
basis of competition. Nowadays more expenses are spent on
advertising my soft-drink companies rather than
on manufacturing.

Coke has brought in a revolution especially in

Indian markets with the Rs. 5 pricing strategy
which was very famous. It was the first company
to introduce the small bottle of Coke for just
Re.5. This campaign was very successful
especially with the price conscious Indian
consumers.

Even today most prices of Coke are decided on the basis of the
competition in the market.

Pepsi – Price
Pepsi again decides it price on the basis of competition. The best
think about the company Pepsi is that it is very flexible and it can
come down with the price very quickly. The company is renowned to
bring the price down even up to half if needed.

But this risk taking attitude has also earned Pepsi losses. Though
lowering the price would attract the customers but it would not help
them cover up the cost incurred in production hence causing them
losses.
This was the situation earlier but now Pepsi is a full-fledged and
growing company. It has covered all its losses and is now growing at
a rapid rate.
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Place
Place is a term that has a variety of meanings in a dictionary sense,
but which is principally used in a geographic sense as a noun to
denote location, though in a sense of a location identified with that
which is located there.

In marketing, place refers to one of the 4 P's, defined as "the market

place". It can mean a geographic location, an industry, a group of
people (a segment) to whom a company wants to sell its products or
services, such as young professional women (e.g. for selling
cosmetics) or middle-aged family men (e.g. for selling family cars).

Coke - Place
Coke is a multinational company and it has its market around the
entire world. This can be said just by the first page on its site which
asks people to select the place of their choice. The website looks
something like this:
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Pepsi – Place
Pepsi again has spread worldwide. Pepsi when entering a new
market does not go in alone but it looks for partners and mergers.
Till now Pepsi has collaborated with companies like Quaker Oats,
Frito-lays, Lipton, Starbucks, etc.

Pepsi like Coke has spread all over the world. It is because of
this worldwide spread that now it is coming up with Advertisements
which can be broadcasted in the different nations in the world. The
recent example with would be the Pepsi advertisements having David
Beckham as it brand ambassador.

Promotion
Promotion is one of the four aspects of marketing. Promotion
comprises four subcategories:
1. Advertising
2. Personal selling
3. Sales promotion
4. Publicity and public relations

The specification of these four variables creates a promotional

mix or promotional plan. A promotional mix specifies how much
attention to pay to each of the four subcategories, and how much
money to budget for each. A promotional plan can have a wide range
of objectives, including: sales increases, new product acceptance,
creation of brand equity, positioning, competitive retaliations, or
creation of a corporate image.

Both the companies Pepsi and coke are famous for their
promotions. The rivalry was first started when Pepsi started with its
blind taste tests known as the Pepsi Challenge. The challenge is
designed to be a direct response to critics who allege that Coca-Cola
and Pepsi-Cola are identical drinks, with no meaningful differences.
The challenge takes the form of a taste test. At malls, shopping
centers and other public locations, a Pepsi representative sets up a
table with two blank cups, one containing Pepsi and one with Coke.
Shoppers are encouraged to taste both colas, and then select which
drink they prefer. Then the representative reveals the two bottles so
the taster can see whether they preferred Coke or Pepsi. If Pepsi is
revealed, the shopper is given a small prize. The implication is that
Pepsi tastes better than Coke, and thus consumers should purchase
Pepsi.
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In blind taste tests, more consumers prefer the taste of Pepsi to

that of Coca-Cola. Because Coke was the historical leader, more
people expected that they'd prefer and select Coke. Their surprise at
picking Pepsi in the blind taste test (products were served in
unmarked cups) helped change their minds about which product they
prefer. Capturing this on film, Pepsi turned this into a memorable
TV campaign that lasted many years.

Also ad-campaigns are put up on the television by both the

players. The following statistic just tells of much of share of ads on
TV are captured by these players.

Infact in the next graph you can see how many programs are
sponsored by cola companies and the leader among them is Pepsi.
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Mainly Pepsi is the company sponsoring most cricket telecasts

happening in India and spends most of its revenue in that field.

Nowadays both Coke and Pepsi are going in for Brand Ambassadors
to promote their product. These brand ambassadors are famous
people who usually people idolize and people can relate to them.
The following pictures do not need any explanation as people are
familiar with the celebrities and can thus quickly identify with the
product.

A list of Celebrities that are brand ambassadors for the cola

companies are as follows. These celebrities are not only asked to
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work in the advertisements but they also have to use the product
promoted by them and they should not use the companies rivals
proucts.