This summer, when the heat has consumers reaching for a refreshing, ice cold soda, they may have a tough decision to make. Both are launching packaging-based interactive campaigns this summer that aim to engage the ever-so-valuable young consumer. According to Ad AgeCoca-Cola, for its part, is launching a campaign built around song lyrics on its cans. Additionally, Coke will be promoting the effort on the mobile channel, encouraging consumers to use the Shazam music app to scan specially marked ounce bottles and in-store signage.
KO and PepsiCo, Inc. PEP are very similar businesses in terms of industry, ideal consumers and flagship products. Both Coca-Cola and PepsiCo are global leaders in the beverage industry, offering consumers hundreds of beverage brands. In addition, both companies offer ancillary products such as consumer packaged goods.
On the surface, Coca-Cola and PepsiCo have very similar business models. As potential investors dig deeper, however, they find key differences and key similarities between the two business models that make the companies what they are as of Diversified Business Model PepsiCo is a company known for a highly diversified product portfolioboth within the beverage industry and in other industries such as the consumer packaged goods industry.
In contrast, Coca-Cola only focuses on a diversified product portfolio within the beverage industry and has few products outside of that industry. In a scenario where the beverage industry declines in overall revenue, PepsiCo is positioned to take advantage of the situation, while Coca-Cola may falter.
However, Coca-Cola has more focus within the beverage industry, allowing it to make key investments and communicate key messaging with consumers.
According to Information Resources, Inc.
Even though Coca-Cola may have an advantage with a more focused business model, PepsiCo created a scenario where one product the company owns may induce a consumer to purchase a second product the company also owns. In contrast, Coca-Cola has made efforts to dominate the beverage industry almost exclusively and shied away from the cross-promotion of multiple products in multiple industries.
There are not many new or emerging markets that remain untapped for either company. However, both companies have made a push into the energy drink category. This push highlights the fact that sales volume for Diet Pepsi and Diet Coke has declined steadily over the past 10 years, according to Time Magazine.
What is interesting to note is that Time Magazine also reports that the energy drink segment of the beverage industry has captured year-over-year growth over the past 10 years. Keeping with the theme of diversification and product complements, Coca-Cola bought a large stake in Monster Energy inand PepsiCo decided to start its own energy drink: Efficient Business Operations With both companies facing market saturation, Coca-Cola and PepsiCo have made strong commitments to more efficient operations in This allows both companies to take advantage of the few new and emerging markets left.
Since every large market has been fully tapped by the beverage industry, the remaining smaller markets require efficient operations to turn a profit and make a lucrative investment, since the sales volume felt in countries such as the U.
These more efficient operations help both companies increase the price per share given it should result in higher earnings per shareor EPS, even if sales remain flat.
Trading Center Want to learn how to invest? Get a free 10 week email series that will teach you how to start investing. Delivered twice a week, straight to your inbox. · MARKETING STRATEGIES OF COCA-COLA VS.
PEPSI MAIN IDEA In this few minutes we will try to let you know a little bit more about both firms. We are going to focus on their marketing strategies, but first we need to know some history about the metin2sell.com://metin2sell.com /marketing-strategies-of-coca-cola-vs-pepsi.
· Published: Mon, 5 Dec For over the past substantial number of years, the Coca-Cola and Pepsi companies have been the two leading and competing companies as far as the selling of beverages is metin2sell.com://metin2sell.com Coca Cola vs. Pepsi - statistics and comparison of the two stocks (KO, PEP)metin2sell.com Their marketing in a global scale.
If Coca-Cola was a person: America Family Bubbly Fun Exciting Happy Red (Turner n.d.) Desired Brand Image Revolves around their youthful image and social responsibility (Grinton ) Coca-Cola Vs Pepsi Chirag Puri.
Pepsi V/S Coke Sameer Dhurat. Market Research on Coca-Cola Vs. Pepsimetin2sell.com · Coca-Cola was the first industrial sponsor of the Olympic games, at the games in Amsterdam, and has been an Olympics supporter still metin2sell.com Coca-Cola Company has been an Olympic partner since almost 80 years and is the best continuous commercial follower of the Olympic metin2sell.com://metin2sell.com · An Econometric Analysis of Brand-Level Strategic Pricing Between Coca-Cola Company and PepsiCo.
TIRTHA DHAR Sauder School of Business University of British metin2sell.com