THE

COLA
WARS
 PEPSICO
A world leader in convenient snacks,
foods and beverages.

Revenue over $43 billion.

Employees- 198,000.
 HISTORY OF PEPSICO
Pepsi-Cola was created in the late 1890s by
Caleb Bradham.

PepsiCo, Inc. is founded by Donald M. Kendall

& Herman W. Lay through the merger of the
two companies Pepsi-Cola and Frito-Lay in
1965.
 VISION OF PEPSICO
At PepsiCo, we believe being a responsible
corporate citizen is not only the right thing to do,
but the right thing to do for our business.
 MISSION OF PEPSICO
• Our mission is to be the world's premier
consumer products company focused on
convenient foods and beverages. We seek to
produce financial rewards to investors as we
provide opportunities for growth and enrichment
to our employees, our business partners and
the communities in which we operate. And in
everything we do, we strive for honesty, fairness
and integrity.
 BRANDS OF PEPSICO

PEPSI COLA BRANDS

FRITO-LAY BRANDS
BRANDS OF PEPSICO

GATORADE BRANDS

TROPICANA BRANDS
 BRANDS OF PEPSICO

QUAKER BRANDS
 COCA COLA
• A world leader in convenient snacks,
foods and beverages.

Revenue over $31,944 Millions.

Employees- 92,400.
HISTORY OF COCA COLA
Born in 1886

John Pemberton, an Atlanta pharmacist

Caramel-colored liquid was combined with

carbonated water
 MISSION OF COCA COLA

To refresh the world.

To inspire moments of optimism and happiness.

To create value and make a difference.

 COCA COLA - VALUES
Our values serve as a compass for our actions
and describe how we behave in the world.
• Leadership: The courage to shape a better
future
• Collaboration: Leverage collective genius
• Integrity: Be real
• Accountability: If it is to be, it's up to me
• Passion: Committed in heart and mind
• Diversity: As inclusive as our brands
• Quality: What we do, we do well
COCA COLA – FOCUS ON
MARKET
• Focus on needs of our consumers, customers
and franchise partners.
• Get out into the market and listen, observe and
learn.
• Possess a world view.
• Focus on execution in the marketplace every
day
Be insatiably curious.
BRANDS OF COCA COLA

ENERGY DRINKS

SOFT DRINKS
BRANDS OF COCA COLA

SPORTS DRINKS

TEA & COFFEE

 BRANDS OF COCA COLA

JUICES / JUICE DRINKS

OTHER DRINKS
BRANDS OF COCA COLA

WATER DRINKS
THE BRAND BATTLE
COCA COLA PEPSICO
BLACK COLA PEPSI VERSION

FULL THROTTLE ENERGY DRINK AMP ENERGY DRINK

VAULT CARBONATED DRINK MOUNTAIN DEW MDX

POWERADE SPORTS DRINK GATORADE SPORTS DRINK

SPRITE 7 UP

MINUTE MAID FRUIT PUNCH TROPICANA FRUIT JUICE

NESTEA LIPTON ICE TEA

BARQS ROOT BEAR MUG ROOT BEAR

DIET COKE DIET PEPSI

KINLEY BOTTLED WATER AQUAFINA

AQUARIS SPORT DRINK ALL SPORT

FANTA MIRINDA

SPRITE ICE PEPSI BLUE

COCA COLA- BLAK PEPSI CAPPUCCINO

MAAZA FRUIT DRINK SLICE

LIMCA TEEM
COKE V/S
PEPSI
COMPARISON OF PEPSI & COKE
  COKE PEPSI

Pepsi mirrored its Cola after

Coke's, being just different enough
TASTE Coca-Cola is the original cola
in taste to not actually be the same
drink.

SIMILARITIES Both carbonated cola Beverages Both carbonated cola beverages

Pepsi tastes sweeter than Coca-

SWEETNESS Pepsi tastes sweeter than
Cola
Coca-Cola has more carbonation Pepsi has lesser carbonation than
CARBONATION
than pepsi Coke

No longer seen as just a beverage No longer seen as just a beverage

but mainly as a brand. Committed but mainly as a brand. Committed
BRAND WAR heavily to sponsoring outdoor heavily to sponsoring outdoor
music festivals and even charitable music festivals and even charitable
projects in third world countries. projects in third world countries.
BRAND AMBASSADOR COMBAT
  PEPSI COCA COLA

2009 VIJENDER SINGH GAUTAM GAMBHIR

SHARUKH
KHAN,RANBIR AAMIR KHAN,HRITHIK
2008
KAPOOR, DEEPIKA ROSHAN
PADUKONE

ISHANT SHARMA,
2007 AAMIR KHAN
ROHIT SHARMA
WINNING THE WAR OVER YEARS

YEAR COCA COLA PEPSI

1950 47.00% 10.00%

1970 35.00 % 29.00 %

1990 41.00 % 32.00 %

2000 44.00 % 31.40%

2006 43.10% 31.70 %

COCA-COLA AND PEPSICO REVEAL
FIZZ IN FLAT SALES

COCA COLA

4% increase in global sales volumes

Driven by gains of 33 per cent in India and 14 per
cent in China – July 09.

Earnings per share increased by 44 %

Due to Lower commodity costs, and restructuring
 COCA-COLA AND PEPSICO REVEAL
FIZZ IN FLAT SALES

PEPSI

Reported 3 % decline in net revenue and a 1 %

increase in sales volume - July 09
Driven primarily by food and international sales.

Although the figures appear less impressive than

those of Coca-Cola, investors reacted positively to the
news, as earnings topped market expectations.
 SWOT ANALYSIS
STRENGTHS

High Profile Global

Presence. High Profile Global
 Four of the top five Presence.
leading Brands.  Owns worlds second best
Broad based Bottling selling soft drink brand.
strategy. Product Innovation.
47% of Global volume Aggressive marketing.
sales Broad portfolio of
products
 SWOT ANALYSIS
WEAKNESS

Carbonates Market is Carbonates Market is

declining. declining.
Over Complexity of
relationship with bottlers. Targets youngsters only.
Existent system is not
efficient for non
carbonates.
 SWOT ANALYSIS
OPPORTUNITIES

Asia Pacific Sales forecast Growth in Healthier

indicates an increase of beverages.
over45%.
Growth in tea & other
Brands like Minute Maid Beverages.
Light and Minute Maid
Premium Heart Wise are Growth in functional
positioned well Drinks industry.
with the “Health-concerned”
market
 SWOT ANALYSIS
THREATS

Growing Health
Conscience. Obesity & Health
Concerns.
PepsiCo's Gatorade &
Tropicana are stronger Coca cola increasing
brands. expenditure on
marketing & innovation
Protest against Coke in
India. Excessive
Concentration to
 COLA WARS
 Coke and Pepsi in the 21st Century” is about the
“love-hate” relationship between the two largest cola
companies of America, as they fight with each other
for shares of a $60 billion industry, while also
fighting with the industry to increase and fuel growth
for cola consumption.

 From 1975 to 1990 both companies achieved an

average annual growth of about 10%, while
consumption grew in the U.S. and worldwide, but a
turn of events in the late 1990s threatened the
companies with consumption of carbonated soft
drinks (CSD) dropping for a consecutive two years.
 COLA WARS
 The competition was intense between the two companies
because of two of the main forces: Substitutes and
Competitors.

 Both companies were serving to meet similar needs and

offer more value, but when the needs of customers
changed and consumers wanted alternatives to CSD’s, the
threat of substitutes was intense.

 Coca Cola and Pepsi sought out new CSD brands, adding
over 10 major brands. Coca Cola went as far as changing
their 99-year formula, but then retracted and stated its
regular formula as its flagship brand due to bad customer
feedback.
 COLA WARS APART FROM
ADVERTISING
Espionage in each other’s offices.

Pepsi filed a petition against Coke alleging that Coke

had ‘entered into conspiracy’ to disrupt its business
operations.

Recruiting of employees at higher rates by Coke

‘Pressure of breaking contracts’ by Coke.

Frequent complaints from both the players about their

bottlers and retailers being hijacked.

Painting of rival outlets overnight

2009 BRAND KEYS CUSTOMER LOYALTY

ENGAGEMENT INDEX
Soft Drink (Diet) Soft Drink (Regular)

Diet Pepsi  Pepsi

Diet Coke Mountain Dew
Diet 7-UP Coca-Cola
Diet Dr. Pepper 7-UP
  Dr. Pepper
   
 FUTURE OF COLA WARS

Companies will concentrate more on

Advertising.

Events and exhibitions will

be on high.

Companies would take unethical steps in

future.

Pricing strategies will be reconsidered.

Companies may widen their portfolio to
capture mass market.