Pepsi vs Cola

INTRODUCTION PEPSIPepsi Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in stores, restaurants and from vending machines. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years, including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Raw, Pepsi Retro in Mexico and Pepsi Ice Cucumber in Japan. Company overview PepsiCo is a world leader in convenient foods and beverages, with 2006 revenues of more than $35 billion and more than 168,000 employees across the world. Its world renowned brands are available in nearly 200 countries and territories. Building for the future PepsiCo is among the world’s largest consumer products companies focused on convenient foods and beverages. They were proud on their products are some of the world’s best known brands and they are enjoyed by billions of people around the world every day. There products are recognized for their quality, taste and value, and increasingly, for their contribution to healthier diets. Intergradient in Pepsi : Pepsi-Cola 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 minus the caffeine. The original Pepsi-Cola recipe was actually available from

documents filed with the court at the time that the Pepsi-Cola Company went bankrupt in 1929. Note : The original formulation contained neither cola nor caffeine. Amount per 100mL Energy 196.5 kJ Fat 0g Sodium 0.98 mg Carbohydrates 11.74 g Sugar 11.04 g Protein 0g Caffeine 10 mg COCA-COLAThe Coca-Cola Company was first established in 1886 by Dr John Styth Pemberton. Today, the company is the world's leading manufacturer in the beverage industry, operating globally in more than 200 countries with its head office located in Atlanta, USA. It produces more than 300 beverage brands and over 1.06 billion drinks are consumed per day around the world. The world has changed in many ways since pharmacist, John Styth Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia. However, the pure and simple magic of one thing remains the same - Coca-Cola. The name and the product mean so many things to hundreds of millions of consumers around the globe. Coca-Cola products are served more than 705 million times every day, quenching the thirsts of consumers in more than 195 countries in every climate. That's a long way to come after such a modest beginning... Sponsorship of sporting events Coca-Cola was the first-ever sponsor of the Olympic games, at the 1928 games in Amsterdam and has been an Olympics sponsor ever since. This corporate sponsorship included the

1996 Summer Olympics hosted in Atlanta, which allowed Coca-Cola to spotlight its hometown. Since 1978 Coca-Cola has sponsored each FIFA World Cup and other competitions organized by FIFA. In fact, one of the FIFA tournament trophy: FIFA World Youth Championship from Tunisia in 1977 to Malaysia in 1997 was called "FIFA - Coca Cola Cup".[ In addition, Coca-Cola sponsors the annual Coca-Cola 600 and Coke Zero 400for the NASCAR Sprint Cup Series at Lowe's Motor Speedway in Charlotte, North Carolina and Daytona International Speedway in Daytona, Florida. Coca-Cola has a long history of sports marketing relationships, which over the years have included Major League Baseball, the National Football League, National Basketball Association and the National Hockey League, as well as with many teams within those leagues. Coca-Cola is the official soft drink of many collegiate football teams throughout the nation. In India Coca Cola was the one of the official Sponsors of the 1996 Cricket World Cup. In England, Coca-Cola is the main sponsor of The Football League, a name given to the three professional divisions below the Premier League in football (soccer). It is also responsible for the renaming of these divisions- until the advent of Coca-Cola sponsorship; they were referred to as Divisions One, Two and Three. Since 2004, the divisions have been known as The Championship (equiv. of Division 1), League One (equiv. of Div. 2) and League 2 (equiv. of Division 3). This renaming has caused unrest amongst some fans who see it as farcical that the third tier of English Football is now called "League One." In 2005 Coca-cola launched a competition for the 72 clubs of the football league - it was called "Win a Player". This allowed fans to place 1 vote per day for their beloved club, with 1 entry being chose at random earning £250,000 for the club. This was repeated in 2006. The "Win A Player" competition was very controversial, as at the end of the 2 competitions, Leeds United AFC had the most votes by more than double, yet they did not win any money to spend on a new player for the club. In 2007 the competition changed to "Buy a Player". This competition

allowed fans to buy a bottle of Coca-Cola Zero or Coca-Cola and submit the code on the wrapper on the Coca-Cola website {www.coca-colafootball.co.uk}. This code could then earn anything from 50p to £100,000 for a club of their choice. This competition was favoured over the old "Win A Player" competition as it allowed all clubs to win some money, instead of all the money going to one winning club. BRANDS IN INDIA Pepsi Brands in Indian market Coca Cola Brands In India 1. Mountain Dew Coca Cola 2. Pepsi Cola Sprite 3. Slice Maaza 4.7 UP Thumps Up 5. Miranda Orange Fanta 6. Miranda Lemon Limca 7. Evress (Soda) Minute maid 8. Aquafina Kinley 9. Pepsi Diet Georgia Gold 10. Tropicana MARKETING STRATEGY FOR PEPSI AND COCA-COLA Uses of five P’s as a guideline for pepsi and coca-cola Anyone planning to come up with new company or brand in competition to others must follow some guidelines. The ways will lead them to success and might to be the most successful one. The preparation for setup must start with the search of right PLACE. It is an important factor to determine as the kind of Product Company is going to deal and also comes other mottos. Organizations must also check the kind of PRODUCT they are coming with. Is it a need or luxury for the customer or consumer? This aspect will help them to come up with right kind of product, which has demand in the market. Next stage must be of PACKAGING as they must bring out the product in an attractive package so as the customers get attracted. The

packing must be in a proper way so that the customer satisfaction level reaches at its brim. Furthermore, the company after deciding, the above aspects are driven to the most important aspect i.e. PRICING of the product. The part of pricing is the most looked part by customers with respect to existing products range. The pricing should be done in such a fashion, as that customer must buy once when it is launched and then the quality makes the customer permanent or temporary. After doing so much to get the brand or product known to common public, PROMOTIONS must be done. It can be in various forms i.e., through TV advertisements, newspapers, free distribution of samples, hoardings etc. To get noticed the advertisement or campaign must be designed with uniqueness which drives the customers to buy the product. After the product is launched and it is moving in the market, the company must know the PUBLIC OPINION. This is to be done in order to know that if the public likes the product, then what further improvement is to be done, to find out the reasons for its failure. As a whole all the above jotted points are inter – related and gets effects with change in one another. The all above mentioned aspects are to be kept in mind to take the important decisions with respect to launching of new Product as well as sustaining it. To determine all the above aspects, the organization conducts Market Research. It can be done through own trained employees, if any or the jobs a re assigned to different Market Research Agencies (M.R.A.). Now, if the job is handed over to any M.R.A, then they start the job by preparing a Questionnaire for conducting survey. The questionnaire consists of different types of questions that deal with interest area of the company. Then the survey is carried out over different places among the targeted audiences. Then a Report is prepared after compiling the collected dataset. M.R.A. suggests the company, Where to move? When to come up with the product? Why changes are required to be made? With What kind of product the organization can come up? Finally, whom to make the target

for the same? Hence, we can see that how the Market Research conducted helps a company to take its important decisions. Marketing Strategy Of Pepsi PRICING Pepsi has consistently wielded its pricing strategy as in invitation to sample, aiming to turn trial into addiction. When Pepsi launched the 500 ml bottle in 1994 at Rs. 8 versus Thumps Up’s Rs.9: in April, 1996, its 1.5 liter bottle followed Coke into the marketplace at Rs.30 – Rs.5 less than Coke’s. In both cases, Pepsi raised the raised the price once consumption established, counting on the habit to compensate for the lack of a price benefit. Of course, Pepsi also had to contend with the fact that in the soft-drinks business, few retailers pass on price advantages to customers, preferring to sell competing brands at the same price and pocketing the discount. So, it couldn’t have continued the lower price positioning for long. PLACE PEPSI’S DISTRIBUTION SYSTEM:Distribution management is a critical success factor in this industry. India being a very large market for Pepsi, the challenge for the company is to make its products easily available and accessible to the consumers in time. The company’s stated aim, according to company executives, is to make Pepsi’s products available whenever and wherever a consumer demands it. This calls for an extensive distribution network which Pepsi, in a short span of about 4 years, has established. The overall function of distribution at Pepsi is subdivided into three areas of managerial concern: Physical distribution management Materials Management Logistical Co-ordination For a product like soft drinks, availability is a vital part of marketing efforts. Without a high level of availability most of

the promotion efforts would be squandered. Pepsi’s distribution process is very simple. Every day an ordered number of `filled’ bottles of the various drinks are sent to the C & Fs and the warehouses and then to the distributors, and a certain number of `empties’ are subsequently filled and sent to the distributors and warehouses the next day. This is a continuous process. The cost of distribution works out to approximately 70 paisa per bottle. Cans have a lower distribution cost because of a single flow - because the cans are disposable and are not returned to the bottling plants as ’empties’. PROMOTIONAL STRATEGIES: Advertising: The Company has, over the last few years, spent a lot on advertising in leading newspapers and media channels including the electronic media channels. The Company is giving more emphasis on opening new outlets at various places by keeping the tastes and preferences of the customers in mind. They are also trying to give more emphasis on the customer service at their outlets. PEPSI’S STRATEGY: Pepsi’s approach is radically different from that of Coke; Pepsi has gone in for concentration segmentation. Pepsi has targeted the youth segment instead of trying to be something to all segments. Pepsi has since the beginning strove to achieve its international position as `a drink for the new generation’ in India. Helped by HTA’s forceful visuals and creative, Pepsi has been successful in positioning itself for the younger generation. SELLING PROCESS: Pepsi has a very well managed selling system. It takes as lot of care to ensure that the products (Pepsi bottles) are available to the consumers. Pepsi soft drink is produced in our plants and crates are supplier to shopkeepers directly. Delhi has been divided around 75 routes which are called direct routes. For every

route there is a Routs Agent. Route Agent moves with the company owned truck and ensure that maximum shops are covered each day, so that regular supply of Pepsi soft drinks is made. Routs agents take the order from the shopkeepers and then with the help of loaders they give the required number of crates to the Crates from the outlet and then they move for the next outlet. Our plants also have some agency in each routs. They supply in the areas where Pepsi’s trucks are not able to reach. These areas are called indirect-routes. PRODUCTION STRATEGY Pepsi’s production strategy is based on market demand. Daily sales are monitored and the production is accordingly adapted. The demand for drinks like 7 UP, Slice, Teem varies more than for Pepsi and Miranda and hence their production is based on the monitoring of daily sales. Distributor, warehouse and retailer inputs are taken as part of the monitoring process. Pepsi aims of achieve 100% availability for retailers but at present the rate is estimated to be 90%. This is due to the fluctuating marketed trends. Moreover, Pepsi is also constrained by the number of bottles of a particular drink that are returned. BOTTLING In India Pepsi employs two types of bottling operations, namely CPBO (Company owned bottling operations) and FOBO (Franchisee owned bottling operations). Coke’s bottling operations are entirely franchisee owned. The trade-off involved between COBO and FOBO is that under COBO the company operates on higher margins but the capital investment is more while the reverse holds for FOBO. However, the bottling process for Pepsi Cola, takes longer that the rest of the flavors. The reason is that it requires a curing period of 1 day. This area affects Pepsi’s production planning. The physical distribution process however, is unaffected.

PLANNING/FORECASTING Demand is forecasted one week in advance, bottom up through the distribution chain. Daily sales are monitored and feedback is taken by the plant from the warehouses, distributors and retailers. Pepsi uses this as an input to make its own weekly forecast. Communications The major warehouses are connected by e-mail to the head office and the bottling plant, while the distributors use courier services, faxes and telephone to communicate with the bottling plant-C & F. The local retailers are contact over the phone or met personally. Communication is very important for their business because the company needs to constantly track the demand levels for its different drinks in order to forecast demand better. Secondly, it helps the tracking the inventory levels at the warehouses and at the retailers. Coco Cola Marketing Plan Mission Statement'Remind Coca-Cola is the read thing' but their motto now has changed to 'To benefit and refresh everyone who is touched by our business.' Also Coca-Cola would hope to provide the best quality drink for everyone, all the employees working for them being at their top and fullest. MarketingMarketing is the role used by the business to plan, price, promote and distribute products/services to individuals. The Coca-Cola Company's marketing includes: I.Target Market II.Objectives/Goals III.Marketing strategies and the marketing mix IV. Monitoring & Controlling

. I.Target MarketThe company's beverages are generally for all consumers. However, there For example, Coca-Cola's diet soft drinks are targeted at consumers who are older in age, between the years of 25 and 39. PowerAde sports water target those who are fit, healthy and do sport. Winnie the Pooh sipper cap Juice Drink target children between the ages 5-12. This type of market approach refers to market segmentation. The Coca-Cola Company when advertising has a primary target market of those who are 13-24, and a secondary market of 10-39. II.Objectives/Goals Coca-Cola main objectives are to supply everyone their favorite drink and to satisfy the consumer needs and wants. Coca-Cola second main objectives are to provide profit to the shareholders and increase the market share. III.Marketing strategies and marketing mix Marketing mix: Product: The Coca-Cola Company's products include beverage concentrates and syrups, with the main product being finished beverages. The business has over 300 brands of beverages around the world with the main ones being Coke, Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and PowerAde. The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 litres, 1.25 litres, 600mL and 300mL. These are also available in aluminum cans of 375mL. Coca-Cola is the most well known trademark, recognized by 94 per cent of the world's population. The business is very successful and holds a very good reputation. Marketing strategies for product The Coca-Cola Company uses marketing strategies to

differentiate its product from its competitors to gain a competitive advantage. These are listed in the table below. Marketing strategy Explanation of marketing strategy Extension/product differentiation In 2002, the Coca-Cola Company extended the products of Coke and developed the new products Coke with lemon and Vanilla Coke. This extension: ·Responded to consumer demands. ·Generated sales and profit. Innovation In 2001, Coca-Cola had innovated and developed the introduction of purchasing the company's products from vending machines via SMS messaging. In 2002, the company innovated and came up with a new packaging idea, the Fridge Pack. The Fridge Pack consists of cans packed 2-by-6. This innovation has: Increased consumer awareness and preference, Increased rate of consumption and profitability. Price: Pricing Methods/Pricing strategies The Coca-Cola Company's products are sold in retail stores, convenient stores, petrol stations etc. The pricing methods/strategies are set by those the company sells to. Petrol stations and convenient stores usually sell Coca-Cola products at a fixed price. However, retail outlet uses pricing methods and pricing strategies when selling Coca-Cola products. Pricing methods: Competition-based pricing Coca-Cola products are usually priced below, above or equal to its competitors' prices. Discount price Coca-Cola products are often marked down during sale periods and special occasions. This will:· Generate sales· Increase profits Pricing strategies: Meet-the-competition pricing The Coca-Cola products pricing are set around the same level as its competitors. Psychological pricing Most of the Coca-Cola products use this method of pricing. For example, for a pack of 375mL x 18 cans of Coca-Cola soft drinks it is priced at $9.98 instead of $10.00.This pricing strategy makes consumers perceive the

products to be cheaper. Promotional strategies: The business uses a range of promotional activities, shown in the table below. Promotional strategy Explanation of promotional strategy Advertising The Coca-Cola Company uses advertising as its main source of increasing consumer awareness. It mainly uses the television. There are many television advertisements on Coca-Cola products. This source allows the company's products to reach a large audience. The latest television advertisement for Coca-Cola soft drinks was the 'You know you want it' advertisement. One of the older one are ' If you drink it, you get better of life' The company also uses the radio as another source of advertisement. This is a cheaper source of approach compared to the television. Recently, the company benefited from its involvement in the world's celebrated games such as the Olympics and the FIFA World Cup. Where millions were watching these games, the business had substantial advertising and promotions of the company's brands. Personal selling every year, The Coca-Cola Company has a highly trained sales team, which acts as a representative of the company to the retailers. This strategy helps to maintain service and product loyalty. It has been demonstrated by the business to be highly effective. Publicity in February 2003, Vanilla Coke was released to the media as a news brief outlining the huge profit achieved by the business (from the Sydney Morning Herald 14th February 2003). This helped The Coca-Cola Company to strengthen the image of the business's products. Place of distribution: The Coca-Cola Company sells its products to bottling and canning operations, distributors, fountain wholesalers and some fountain retailers. These then distributes them to retail outlets, milk bar and corner stores, restaurants, petrol stations and newsagents. Place strategies: Indirect distribution The Coca-Cola Company uses

intermediaries in its distribution. That is, the company does not sell its products directly to its consumers. Intensive distribution The Coca-Cola Company uses the intensive distribution strategy. The business's products are sold in almost every outlet including: ·retail outlets ·small shops ·restaurants ·petrol stations ·newsagents ·schools ·sports and entertainment venues· from vending machines Pepsi vs. Coca-ColaWhen two things of equal value are compared then it is very difficult to compare those .So in the case of both Pepsi and Coca Cola ,it is very hard to compare the two, as both companies have their individual strengths, as well as, weaknesses. Pepsi-cola and coca cola are widely recognized as being two of the premier marketing companies in the world. They have introduced a great variety of new products and package types. They have raised celebrity advertisement to a new level. Coca cola even changed the formula for coke. These and other developments in the carbonated soft drink industry came out from major strategy changes by Pepsi and Cocacola. . Rather than simply reacting to a changing competitive environment, PepsiCo and The Coca-Cola Company have created and implemented strategies that turned the new environment to their advantage. Although Pepsi-Cola attacked Coca-Cola's dominance and achieved near-parity with Coke in bottled soft drinks, both Coke and Pepsi have benefited from fighting the Cola Wars. One widely ignored aspect of the Cola Wars is the ongoing transformation of the soft drink distribution systems of Coca-Cola and Pepsi-Cola from systems of independent bottlers to captive bottling subsidiaries. We find that changes in the organization of the two leading carbonated soft drink firms' distribution systems provide support for Chandler's hypothesis. The independent bottling systems were a unique and effective organization for many decades. Changes in the external environment, however, raised the costs of transacting between the parent

concentrate manufacturers and their independent bottlers. In particular, the new competitive environment required rapidly changing product and marketing strategies, and the implementation of these strategies required the close cooperation of the distribution systems. For years, soft drinks rivals have been gnawing at each other, sneering each other’s claims and count – aims, comparing market shares, finding flaws in the methodologies of retail audits – and making a noise about them, whenever they’re favorable. In this age-old rivalry, there was little for consumers to CHEER about. They found it about as interesting as you’d find a neighborhood brawl. But something changed a few months ago. In October last year Coke slashed prices by an aggressive 15 – 25 %, forcing Pepsi to follow suit. It became a price war that gave consumers a reason to smile. It wasn’t easy for either player. They could do it only by packing efficiency into their operations: cost – cutting and re – structuring to with – stand price cuts. Coke and Pepsi want to use their new pricing to drive growth, slurping up new consumers and penetrating deeper into the existing market. The winner will clearly be the one that gains initial advantage in the race. And make no mistake, the gains could well the fate of the brand over the long term. But the two rivals believe that the fight over a new consumer base may turn out to be fiercer. Their focus would not to grab shares from its rival, but to grab a large chunk of growth that lower prices are expected to drive. Coca cola is moving away from a cola war to consumer delight by making them more affordable. They believe this should fetch more growth than the 5 – 10% the soft drink industry had got used to. Their focus is completely integrated price communication at the moment. Colas are inspirational and claimed usage is more than actual usage. At Rs.5, we break the tea barrier. People, who have tea at Rs3 or 4, decide to have soft drink occasionally. Pepsi’s own estimates claim that in the post Rs. 5-for-200 ml

scenario, the overall consumer base will grow by 45 million, assuming availability of the product to service demand. New consumers are expected to bring in 29 % growth in this season. New consumers are fine, but analysts expect that volumes will also be driven by an increase in frequency of consumption this season. When it’s pricing and in-premise consumption, new consumers will be the driver, but the soft drink players have an equally important agenda: to drive depth of penetration in homes. Given low per capita consumption of soft drinks the way to go is to deliver affordable value.200 ml is not the only price point. Coke’s experience last year with 200 ml bottles has strengthened. Coke has already covered 20 per cent of the market with 200 ml bottles and plans to raise it to 80 per cent this year. The market has the potential to explode, the extent to which it happens will be determined by how companies manage logistics, distribution and supply chain. It is considered that Coke has the uniform ability to do anything across all regions. Historically, smaller sachets (toothpaste, shampoos) have expanded the rural market Soft drinks may not different. This is a drive for new consumers rather than an increase in turnover. These initiatives will bring in new consumers but what they are hoping is that once prices go up again then value proposition will stick and consumers will get hooked. But if at all that happens, it is not going to come cheap. Coke has outpaced Pepsi’s investments by 2:1.Overall, it’s invested over Rs 480 crore ($100 million) and asked its bottlers to chip in with close to Rs 100 crore (another $ 20 million). If one were to include investments by suppliers and other business associates, Coca-Cola’s operations will see overall investments of around Rs 1,000 crore ($200 million) between September and April this year. For Coke, this investment is going into capacity expansion and infrastructure. The company has added 25 new lines in its 27 plants across the country during the last six months. The entire operation will see two lakh new refrigerators and visicoolers, 5,000 new trucks and autos getting sucked into

the system this summer. Coke has added 50 per cent more glass bottles during the last three months alone. This is going to a watershed year for Coke India; India was one of the two Coke operations chosen for a prestigious internal award, the Woodruff Award based on its performance, Not to be left behind, Pepsi is trying to match Coke in its own restrained manner. The company and its bottlers put together have pumped in upwards of Rs 400 crore so far into operations, debottlenecking capacities and building infrastructure. From March last year onwards, Pepsi has been steadily building on its glass bottles. Pepsi’s intention to more than double the number of Pepsi refrigerators and chillers in the market and the hype Pepsi is generating around the ICC World Cup give one a fair idea of what the company is up to. Essentially, Pepsi is targeting at doubling its coverage in every sense of the term. The rural activation programs at Pepsi commence in 2002 in preparation for the summer ahead, and the company says its systems are inpeakprepared-ness to deliver this summer. “It’s still hard to resist the feeling that Pepsi is following Coke step by step, even on bottler integration, by whatever name they call it, advertising strategy, market expansionary pricing and the launch of non-fizz beverages being the obvious points”, says a former soft drink professional. Adds another diehard fan, “coke is still setting the fizzy market’s direction, which in my book qualifies as leadership.” But all agree that with Pepsi’s thunder in the media, for the first time ever, and its World Cup gambit, Pepsi and Coke seem to be on an even balance this summer. So this market should be great one to watch. A Coke executive says “Pepsi hoped to storm the market with Pepsi A-ha last year, but it seems to have gone out of the market, check retail sales yourself. Coke official says Lime and Lemon flavors have simply gone down in the company’s focus due to new launches and the world cup, but these flavors in any case move up on their agenda as summer picks up. Pepsi official says, “While cricket will do the dew in the run

up to the season, we have developed a summer theme campaign around movies arid music, the biggest national unifiers after cricket.” The company says that will have a broad appeal and aim to bring new users into the Pepsi fold. Coke for now since to be fixated on the price communication and Pepsi believes it’s over doing that. Coca-Cola official says pricing can be a part, not the core of what you do. Coke is forced to do either or something smart or like the different line of price communication, they have chosen to do the latter. But some believe that price communication is important to keep erring retailers under check. At many places including parks of Delhi the 200 ml bottle is selling at Rs.6.Coke always try and insist on complains at the dealer end with no chilling charges-but the best way of getting it across is through advertising. Five for them is not a tactical but a strategic price point. There is a strategic rational behind the campaign-to make consumer insist. They do measure price, complaints and it seems to be working, ‘The generic blank of thanda which Coke started last year was a pre-planned move followed by the price cuts. The brand already began communicating with the rural and lower income consumer much before the product could become more affordable. Soft drink giants Pepsi and Coke are perennially at each other's throat. Last week, while Coke claimed that it was the market leader with over 60 per cent market share, Pepsi reacted by saying that one of its products had 24 per cent share. WEBSITE RATING – WHICH DRINK YOU PREFER PEPSI Vs COCA COLA - WHO DOES BETTER ADVERTISING? SOME OF THE COMMENTS OR OPINIONS OF THE CONSUMERS FOUNDED ON THE INTERNET: Pepsi ads are better. But I prefer Coke to Pepsi. Binod 2001-08-02 Thanks, Of course, Pepsi is the creative genius in case of advertising. They know to capture the pulse of the people in India specially the young ones. On the other hand coke most

of the time messes it up and ends up creating the same stuff again and again. Pepsi comes up with new creative ways to win the race. Like offers and stuff which coke misses? It is not always that Pepsi comes out with brilliant stuff, but usually they are the ones to catch the attention first. Supriya 2001-07-31 More ideas, more Pepsi. More money, more Coke. How long can a brand survive on endorsement? Coke needs to find AN IDENTITY not more film stars. Adman 2001-07-31 I think this whole sham of being one up is not taking either brand anywhere. Except for the benefit of the arm-chair ad critics who are having a ball writing thesis after thesis on 'advertising strategies' of these sugared aerated crappy drinks. I don't know about the world but at least in India, people don't give a shit about preferring a 'cold drink' after looking at its advertising!! Gimme a break, if it was advertising that made Indian consumers choose brands, they wouldn't wait for the end-of-season sale to make purchases at Benetton. Move over Mr Toscani, enter Lodhi Hotel... I think if either of these so-called soft drink majors or for that matter any big brand has to truly win people's hearts and therefore gain access to consumer's pockets, they should do something more realistic. Something closer to people's homes & hearts. May be sponsor sports events at a colony level, adopt local parks - advertising efforts that people can relate to and appreciate. I think it would be easier to translate these visible efforts into sales rather than lofty, unrealistic 2 crore deals with ex-captains of cricket. Neha 2001-07-31 Pepsi of course! Pepsi baselines have become daily lingo. Look at the lines: Yahi hai right choice Baby Nothing official about it Yeh dil mange more

Mera number ayegaa Coke baselines LOL!! I dont know any. Hai koi jawab Coke? Sam 2001-07-30 Pepsi was way, way ahead till some time ago. Then three things worked for Coke. Hrithik, a couple of insightful ideas and some lame advertising from Pepsi. First, let's take the good Coke ideas. Coke was the first to understand the importance of the Internet in today's youths' lives. So the Aamir-Ash "love in the chatroom" idea. Perhaps the ads execution lacked quality, but Pepsi must have kicked itself for missing out on one big "youth connect medium" - the Net. The Aamir-Jyotika "love in the rain" ad too was good in the way it reflected hope and optimism in life. Next Hrithik. Both Pepsi and Coke courted him, and Coke won. Yes, the first Coke ad that featured Hrithik was a washout as far as Idea was concerned, what with a KNPH-inspired plot. (Typical Coke muddling.) But then onwards, Coke has managed extracting more value out of Hrithik. It helped that Pepsi mascot Shahrukh had a string of flops, making him a bit of a liability. Finally, the bad ideas from Pepsi. The Preity Zinta-Jaggu ad was a waste. Pepsi stands for youth power, energy, drive and ambition. The cho-chweet act that Ms Zinta was made to do went against Pepsi's attitude. Poor little Red Riding Hood waiting to be saved just isn't a Pepsi role model. The “boy writes movie script ad"... sheesh! Where was the idea in that ad? And where was the Pepsi passion? Funnily, Pepsi's UTC-promo campaigns are getting better and better. First, "Mera number aayega..." Then, "Hai koi jawaab?" In comparison, Coke's UTC number with Sajid Khan (who gives Shahrukh a complex vis-a-vis hamming) was pathetic. Scorecard: Coke has got a bit better in theme ads. Pepsi has got a bit worse. Pepsi's promos are better. Coke's sucks. Should we say deuce? Amar 2005-06-05 Yeah...absolutely...Coke tastes like heaven but as a Coke I

feel sad about their awful ads...I mean Pepsi tickles, pinches...hits hards on the nose. Coke ads make you wanna puke all the coke u drank in the first place. Cherry River 2001-08-01 The Cola Wars The first magazine ad for Coca-Cola appeared in Munsey's in 1902. Advertisements began to appear on billboards, newspapers, and streetcars. Soon there were serving trays there’s little doubt that the most spirited and intense competition in the beverage world is between Coca-Cola and Pepsi. These two American companies long ago took their battle worldwide, and although there are other colas in the market, these giants occupy this high-stakes arena by themselves. The impact of Coke and Pepsi on popular culture is indisputable, the memorabilia, the jingles, the trivia - all still popular. IT ALL STARTED . . . . Coca-Cola was invented and first marketed in 1886, followed by Pepsi in 1898. Coca-Cola was named after the coca leaves and kola nuts John Pemberton used to make it, and Pepsi after the beneficial affects its creator, Caleb Bradham, claimed it had on dyspepsia. For many years, Coca-Cola had the cola market cornered. Pepsi was a distant, no threatening contender. But as the market got more and more lucrative, professional advertising became more and more important. These soda companies have been leading the way in advertising ever since. ADVERTISING HISTORY & COMMERCIALS Pepsi has definitely leaned towards the appeal of celebrities, popular music, and young people in television commercials, while Coke relies more heavily on images of happiness and togetherness, tradition, and nationalism, perpetually trying to cash in on its original lead. In a simplified sense, you could sum up the strategies as Coke: Old, Pepsi: New. In fact, as we will see, when Coca-Cola tried something new, it was disaster. With images of people enjoying Coca-Cola, and glasses with the cola's name on them. At this time, Coca-Cola and Pepsi

were served in drugstore soda fountains. In 1909, Pepsi used its first celebrity endorser, automobile race driver Barney Old-field, in newspaper ads. In 1921, Pepsi went bankrupt, but continued to appear on the scene, although not nearly so successfully as Coca-Cola. In 1931, Pepsi went bankrupt again, but the new owner, Roy Megargel, would hit upon an idea that would finally give Coca-Cola some competition. In 1934, he marketed Pepsi in a 12-ounce bottle for a nickel. At the time, Coca-Cola was sold in a 6-ounce bottle for ten cents. Voila! Profits for Pepsi. Pepsi racked up another first by airing the first radio jingle in 1939. It was so popular that it was played in jukeboxes and became a hit record. Listen here. Coca-Cola hit the airwaves in 1941. In 1946, inflation forced Pepsi to increase prices. And in 1950, Pepsi offered a larger 26-ounce bottle to court the young American housewife. In the 1960's, the cola ad wars moved to television. Coca-Cola employed a host of celebrity singers to promote the product, including Connie Francis , Tom Jones, The New Beats, Nancy Sinatra, and The Supremes. As we moved through the years, both colas incorporated some of their best slogans ("Pepsi Generation" and "the Real Thing") into subsequent commercials. In the 1970s, market research showed that consumers preferred the taste of Pepsi over Coke. The Pepsi Challenge is still being conducted today. But Coke came up with what is arguably the best of all cola commercials, the 1971 I'd Like to Buy the World a Coke ad. This landmark was recalled in Christmas versions in 1983 and 1984, and a 1990 Super Bowl ad, which was enough to make some Baby Boomers weep with nostalgia. In the 1980's, Pepsi lined up the celebrities, starting with Michael Jackson, then Madonna, Michael J. Fox, Billy Crystal, Lionel Ritchie, Gloria Stefan, Joe Montana, and others. Coke signed on Michael Jordan, New Kids on the Block, Aretha Franklin, Elton John, and Paula Abdul. In 1985, responding to the pressure of the Pepsi Challenge

taste tests, which Pepsi always won, Coca-Cola decided to change its formula. Bill Cosby was the pitchman. This move set off a shock wave across America. Consumers angrily demanded that the old formula be returned, and Coca-Cola responded three months later with Classic Coke. Eventually, New Coke quietly disappeared. Pepsi, meanwhile, had its own flop, Crystal Pepsi, which was supposed to catch the strange wave of the times when everything colorless was clean and desirable (Zima, bottled water). And then there was Pepsi Lite with the lemony flavor and one calorie, introduced in 1975. Remember that one? Apparently they didn't expect us to because later they gave us Pepsi One, using the same concept, but a completely different taste. And, extending the idea even further, we are now getting Pepsi Twist, a new product with a twist of lemon flavor. MAD AD WARS Brand Ambassadors of Pepsi Shahrukh Khan , John Abraham, Kareena kapoor The first salvo was fired by Pepsi when it featured actor Aamir Khan in it's commercial. Coke has now retaliated in the same vein; Aamir Khan is asking consumers to drink Coke and not Pepsi. For this change of stance, Coke has reportedly paid him a cool Rs 2 crore. He was apparently paid Rs 17 lakh to endorse Pepsi. The cola war seems to be all about getting the top stars for their commercials. But ad filmmaker Prahlad Kakkar, who does the commercials for Pepsi, doesn't believe that to be the case. It's got nothing to do with stars. It's all about who has the better idea. The consumer is not a fool. Are you carried away by the fact that Pepsi and Coke are using film stars? You will only appreciate the ad if it is well made, if the creative cutting edge is good, if it makes you either laugh or cry. Between Coke and Pepsi they have signed on nine players of the Indian cricket team. And Bollywood seems to be the next

hot spot they want to cool. For now, it's Fardeen Khan, Saif Ali Khan, Kareena Kapoor, Preitty Zinta, Shah Rukh, Manisha Koirala, Rani Mukherjee and Aishwarya Rai, Vivek Oberoi, Karisma Kapoor, and Amir in the red (Coke). This is just the beginning. And why not! Market studies have shown that after cricketers it's the Bollywood stars who have an impact on their target audience, the15-30 age group. After that its music, festivals and food, in that order, that gets the Indian consumer all geared up. It's a battle for the mind to build brand loyalty, if you can get to the mind of the consumer through an advertisement that will excite him; an effective demand is created for the product. Pepsi's strategy internationally was to use film and sports stars for their commercials. "But Coke never uses stars. India is an exception; here they are copying Pepsi." Pepsi is critical of Coke for "lifting" the jingle of a Pepsi ad featuring Sachin (Sachin ala re ala) before the Pepsi ad could be released. Pepsi finally released the ad with a new jingle. For Coca-Cola, on the other hand, "90 per cent of the celebrity endorsements is in actual consumer contact and only 10 per cent is on screen advertisements," says Rahul Dhawan, director, external affairs, Coca-Cola. And so for Diwali, last year, in Mumbai many houses had Bollywood bombshell Krishna Kapoor knocking on their doors. "And if someone welcomed her with a Coca-Cola they won a prize. Coca cola believe that visual eye contact with the personality is far better than seeing a 10-second ad. Pepsi does not endorse this. "A celebrity must be used as a casting device". "Humanity is involved when it comes to Pepsi." In such a competitive industry poaching, of ideas and models, is inevitable."Yes, poaching always happens, but they don't want to trigger off another cola war." The ad war between the cola giants is dirty. And how does PepsiCo feels about Aamir doing the Coke ad? "Well, good for them and good for Aamir. They are going to have a tough time because everyone's going to compare it with the Pepsi ad. Pepsi is smart; they will make the old ad memorable in some way. It is a double-edged sword." So

here's looking forward to more hiss and fizz, cola style. Coca-Cola advertising in the High Atlas mountains THREATS Criticisms of the Pepsi-Cola product – Suspected adverse long-term health effects of ; Phosphoric acidSome nutritionists assert that the phosphoric acid component of Pepsi-Cola and other similar soft drinks, may be deleterious to bone health in both men and women. For more, see phosphoric acid in food. SugarAn excess intake of sugar has been suspected as a contributory factor in certain kinds of diabetes, often coassociated with obesity, to which excess caloric intake (relative to caloric expenditure from exercise) is suspected as a primary factor. Accusations made against Pepsi Pepsi was banned from import in India in 1970 for having refused to release the list of its ingredients. In 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. One study led by the Center for Science and the Environment (CSE), an independent laboratory in New Delhi, found that the soft drinks contained residues of dangerous pesticides, with one dose 36 times greater than the European standard for Pepsi, and 30 times greater for Coca-Cola. The presence of these products could provoke cancers, negatively affect the nervous and immune systems, and cause birth defects. No law bans the presence of pesticides in drinks in India. In response to the news, numerous Indians burned bottles of these two brands of soft drinks in the streets. The Indian government asked for a comparable study of soft drink bottles destined for markets in the United States. On December 7, 2004, India's Supreme Court ruled that both Pepsi and competitor Coca-Cola must label all cans and

bottles of the respective soft drinks with a consumer warning after tests showed unacceptable levels of residual pesticides. Both companies continue to maintain that their products meet all international safety standards without yet implementing the Supreme Court ruling. A 1996 lawsuit also accused Pepsi of fraud, stating that "PEPSI, by and through its nationally advertised television commercial featuring a new Harrier Jet, made knowingly false statements and representations . . . concerning its offer of the new Harrier Jet as one of the prizes which could be obtained in the Pepsi Stuff promotional campaign" Criticism of Coca-ColaThe Coca-Cola Company has been criticized for its business practices as well as the alleged adverse health effects of its flagship product. A common criticism of Coke based on its allegedly toxic acidity levels has been found to be baseless by researchers; lawsuits based on these criticisms have been dismissed by several American courts for this reason. Since there are indications that "soda and sweetened drinks are the main source of calories in [the] American diet,"[47] most nutritionists advise that Coca-Cola and other soft drinks can be harmful if consumed excessively, particularly to young children whose soft drink consumption competes with, rather than complements, a balanced diet. Studies have shown that regular soft drink users have a lower intake of calcium, magnesium, ascorbic acid, riboflavin, and vitamin A. The drink has also aroused criticism for its use of caffeine, due to the possibility of physical dependence.[49] A link has been shown between long-term regular cola intake, of which CocaCola is the most consumed brand worldwide, and osteoporosis in older women (but not men). This was thought to be due to the presence of phosphoric acid, and the risk was found to be same for caffeinated and no caffeinated colas, as well as the same for diet and sugared colas. Although numerous court cases have been filed against The Coca-Cola Company since the 1920s, alleging that the acidity

of the drink is dangerous, no evidence corroborating this claim has been found. Under normal conditions, scientific evidence indicates Coca-Cola's acidity causes no immediate harm. There is also some concern regarding the usage of high fructose corn syrup in the production of Coca-Cola. Since 1985 in the U.S., Coke has been made with high fructose corn syrup, instead of sugar glucose or fructose, to reduce costs. This has come under criticism because of concerns that the corn used to produce corn syrup may come from genetically altered plants. Some nutritionists also caution against consumption of high fructose corn syrup because of possible links to obesity and type-2 diabetes. In India, there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins including lindane, DDT, malathion and chlorpyrifos — pesticides that can contribute to cancer and a breakdown of the immune system. Tested products included Coke, Pepsi, and several other soft drinks, many produced by The Coca-Cola Company. CSE found that the Indian produced Pepsi's soft drink products had 36 times the level of pesticide residues permitted under European Union regulations; Coca-Cola's soft drink was found to have 30 times the permitted amount. CSE said it had tested the same products sold in the US and found no such residues. After the pesticide allegations were made in 2003, Coca-Cola sales declined by 15%. In 2004, an Indian parliamentary committee backed up CSE's findings, and a government-appointed committee was tasked with developing the world's first pesticide standards for soft drinks. The Coca-Cola Company has responded that its plants filter water to remove potential contaminants and that its products are tested for pesticides and must meet minimum health standards before they are distributed. In the Indian state of Kerala, sale and production of Coca-Cola, along with

other soft drinks, was initially banned, before the High Court in Kerala overturned the ban ruling that only the federal government can ban food products. Coca-Cola has also been accused of excessive water usage in India. CONCLUSION Commercials and soft drinks have become a part of everyday life in India. The combination of these celeb-culture creations has made resisting the temptation of sugar based carbonated beverages virtually impossible for most. A well-known soft drink war between Pepsi and Coca-Cola keeps new, edgy advertising techniques airing during commercial breaks of popular television viewing. Both companies have successfully sold their products despite different selling techniques used when it comes to advertising on television. The Pepsi Cola Corporation uses excellent marketing strategies, such as celebrity appearances, to sell their product, whereas CocaCola’s realistic approach has placed them at the top of the soft drink industry. Not only do these competitive companies use television advertising to sale their beverages, but they also attract their consumers with their distinctive product packaging. Celebrity endorsements are a way in which Pepsi attracts their customers. Memorable commercials starring famous personalities such as Shahrukh khan, Amitabh bachan, Sachin tendulkar, Halle Berry, David beckham, Cindy Crawford catch the attention of women and men, both young and old. Especially in India where cricket and bollywood seem to be the nation’s passion, the recall sis much higher when its celebrity related advertising. Despite the different advertising methods used by both Pepsi and Coca-Cola, both companies want their audience to buy their beverages; the insight behind the bubbly campaign is the craving for Pepsi that a consumer has, this is reinforced by the jingle “be my lover bubbly” and ended by the tagline “yeh pyaas hai badi” This advertisement “reinforces Pepsi’s

youthful image while being adorable, fascinating and fun. The first round of the advertising battle that begins in earnest at the onset of summer every year between cola majors PepsiCo and Coca-Cola seems to have been won by PepsiCo, with the bubbly campaign well appreciated by the TA. According to the economic times brand recall survey Pepsi is the best-recalled advertised brand of the season. With the Oye bubbly campaign becoming a craze among the TA, coke seems to have lost out with its manno bhabhi; Aamir khan campaign. Even though Pepsi and Coca-Cola use a diverse marketing strategy to persuade people into purchasing their products, both companies have successfully publicized their drinks. As a result they have become the two leading soft drink brands in the nation. The competition between Pepsi and Coke will not only prolong the greatly known cola wars, but will also allow new advertising techniques to be aired on television. Pepsi uses excellent marketing strategies, such as celebrity appearances and contemporary product packaging, to sell their product, whereas Coca-Cola’s realistic approach has placed them at the top of the soft drink industry. Although Pepsi is “simply irresistible”, according to the soda loving customers, it is “always Coca-Cola, Yeah”. “PepsiCo’s international strategy has changed since the 1990s, when the company tried and failed to compete in Coke strongholds such as Germany, Japan and South America. Now the international business is dominated by snacks and concentrated in two main markets – the UK and Mexico, which together generate 40 per cent of overseas sales. Expansion plans are focused on emerging markets, such as China and India, where competitors are not yet entrenched. Pepsi has learned it has to pick its fights carefully outside America, The strategy appears to be working: international sales were the fastest growing part of the company last year, with operating profits up by a quarter.”

Taking the Indian scenario into consideration Thumps up still remains the highest selling cola, followed by Pepsi, coke is a close fourth. So the Indian audience has appreciated Pepsi’s positioning and segmentation attempts up till now. With youth being the Target audience (15-22) the advertising seems to be paying rich dividends in terms of generating sales. Even though the advertising focuses on youth, the product is aimed across all SEC classes. This in turn drives the volume in terms of sales; as a result other beverages like juices still have a long way to go if they have to be a real competitor to the cola’s.