Coca – Cola vs Pepsi Essay

Brand Image Brand image is very high throughout the world. It’s so famous that almost everyone knows about it. It develops so strong image that also has a great effect on the corporate image as well.

It is rated as the world’s number one cold drink and is famed for its internationally well-known brand name “Coca-Cola”. Coke is well supported by Coca-Cola Ltd. in the local market and enjoys distinct position. Brand Positioning The brand positioning of the Coca Cola is very strong. Company focuses on the TOM.This top of the mind strategy leads the consumers to remember the product as well as position the product as number one. Positioning strategy is the real strength of the company because it contributed a lot in the success of the company.

Quality Quality products are the major strength of the company if it sustained by the company. The product quality has improved due to upgraded quality of packaging and the ameliorated liquid in comparison to its competitors. Consistency in the performance will leads to the quality management.Coca Cola Company manages its quality throughout the world very well. Training and Development Company provides its employees training which helps them to cope up with existing needs as well as focuses on employees’ development programs which helps them to meet their future needs. They know if their employees are happy and motivated then ultimately it will show as quality and innovative products.

PEPSICOLA STRENGTHS Brand Image One of PepsiCo’s top brands is of course Pepsi, one of the most recognized brands of the world. Pepsi has stayed in this market for almost one century.So they are so experienced and stationed in people’s mind deeply. Now no one doesn’t know the brand Pepsi-Cola Whenever the name Pepsi is heard, people will conjure up the image of fresh and cool drink. Advertising It has the ability to place an Idle sum of money to the promotion. We can see that the advertisement of Pepsi-Cola is so attractive.

It also invited the top famous people to advertise for it. The advertisement is so elaborate and attractive so that Pepsi gained the special prize of the advertisement Grammy. DiversificationPepsiCo’s arsenal also includes ready-to-drink teas, juice drinks, bottled water, as well as breakfast cereals, cakes and cake mixes. This broad product base plus a multi-channel distribution system serve to help insulate PepsiCo from shifting business climates. Distribution The company delivers its products directly from manufacturing plants and warehouses to customer warehouses and retail stores. This is part of a three pronged approach which also includes employees making direct store deliveries of snacks and beverages and the use of third party distribution services.GOING GLOBAL There are many reasons why a company decides to sell its product in international market.

The prospect exists to sell CSD worldwide, because it is a product which can be used by everyone irrespective of age and gender, all over the world. Marketing globally demand the company to have a marketing team in line with a country’s consumers so effective sales can be made and good relations with the abroad key employees can be maintained.We have to take into consideration all the elements above, that allowed Coca Cola and Pepsi Cola to grow wider and to account the 76% of the US CSD market share in 2000. The balder move of both companies was the idea of having bottling franchises.

The most obvious advantage of having franchised bottlers is that most of the capital-intensive aspects of production and fixed costs are shifted outside the company. Moreover, either Coca Cola and Pepsi Cola made fast-food restaurant acquisitions. Thus, the concentrate producers retain a greater degree of flexibility, and on’t have to concern themselves with extraneous factors like the price of glass or aluminum. Their suppliers are all stable competitive markets without any power to drain away profit. The structure of franchised bottling agreements also minimized the leverage of the buyers and prevented the dissipation of the concentrate producer’s profits. Since bottlers were forbidden to bottle competing brands, and the costs of switching to another company were high, the concentrate producer could retain a bigger share of the profits while splitting the costs for advertising evenly.The last element of market structure that is of interest is substitutes, and both coke and Pepsi have aggressively pursued the opportunity to buy up as many potential substitutes for the soft drink industry as possible.

Coke and Pepsi did not just inherit this business; they created it. Part of their on-going success will be a function of their ability to structure not only their businesses, but the industry as a whole.


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