COKE vs PEPSI - Marketing Mix

Founded by John Pemberton in 1886. m 1887: Registered as trademark. m 1895: Sold in every state & territory in US. m 2003:Headquartered in Atlanta with divisions & local operations in over 200 countries worldwide. - 70% income outside US. m

1977: Coca-cola was thrown out. m 1993: Re-entry in India. m 1993-2003 : Invested more than US $1b in India- top international investor. m 2003-2008: No. 1 soft drink company in India. m

1899: Founded by Caleb Bradham. m 1902: Applied for trademark in US. m 1923: Declared bankrupt & assets sold. m 1985: Gain entry in India m 1988 - Succeeded with Pepsi Food India Limited Project as a JV of - Punjab Agro Industrial corporation - & Voltas India Limited. m

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1991: Marketed & sold as Lehar Pepsi. 1994: Bought out its partner and become a fully owned subsidiary. Today it is the No. 2 soft drink company in India.

COKE m Energy 100 kcal m Carbohydrate, by difference 27 g m Sugars, total 27 g m Potassium, K 10 mg m Sodium, Na 25 mg

PEPSI m Energy kcal m Carbohydrate, by difference m Phosphorus, P mg m Sodium, Na mg

97 27 g 41 33

MARKET SHARE

COCACOLA 57.8%

PEPSI 35.6%

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Both Pepsi and Coke follow the Hub and Spoke model of distribution in rural India.

Company Independent Bottlers (Syrup + Carbonated Water)

Retailers Customers

Sales & Distribution is actually handled by a large number of bottlers. m 26 bottling plants m 60 distribution centers. m 20 contract packers m Over 70000 retail outlets serviced via trucks, converted three wheelers, tricycles & push carts. m 300 million soft drink consumers m

Aggressive in developing distribution network & pushing sales force Pioneer in use of Vending machines and Restaurant channels Built up distribution network & bought out a lot of Bottlers to establish itself in the market Production plants and bottling centers were strategically placed in large cities all around India

Focusing on the rural customer as rural India constituting of 2/3 of India's entire population PepsiCo has 37 bottling plants in India, including 17 company-owned plants and 20 owned by franchisee partners

Earlier COST BASED Pricing. The Rs. 5 Marketing revolution. Nowadays, Coke spends more on advertising than manufacturing

Competition based Very flexible to come down with the price very quickly

Price

COKE

PEPSI

Entered after Pepsi in Pepsi entered in 1988 1993 Gained from demand Had a head-start over created by Pepsi Coke Tried to sell an American way of life

Focused on the Indian youth

Failed to resonate as expected

Was successful.

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Ärand Localization Strategy: The Two Indias ð
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      Small bottle scheme.

Pepsi balance 2 influences in the minds of the customers: m µYou¶re cool the way you are¶ m µDon¶t try to be any different¶ m It was positioned as the new µcool¶ icon. m

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µNothing Official About It¶ µYeh Dil Maange More¶ µMera Number Kab Ayega?¶ µYeh Pyaas Hai Badi¶

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