Pepsi Case Study Paper

Based on my research, PepsiCo is an extremely ethical and socially responsible. PepsiCo bases their premise off of their values and philosophies as a reflection of the socially and environmentally responsible company they aspire to be. Every business decision that is made is based off of these philosophies and values. PepsiCo acknowledges their power and influences that they can make on different society’s and markets and use that to their advantage to make good and powerful actions to reflect on others. The company spends the extra time and steps to make sure that they fully understand what customers that they are dealing with and to be able to accomplish their needs and their desires in the products that they produce. PepsiCo’s mission is to, “be the world’s premier consumer products company focused on convenient foods and beverages. They seek to produce financial rewards to investors as they provide opportunities for growth and enrichment to

     PepsiCo. Incorporated and The Coca-Cola Company are the two largest and oldest archrivals in the carbonated soft drink (CSD) industry. Coca-Cola was invented and first marketed in 1886, followed by Pepsi Cola in 1898. Coca-Cola was named after the coca leaves and kola nuts John Pemberton used to make it, and Pepsi Cola after the beneficial effects its creator, Caleb Bradham, claimed it had on dyspepsia. The rivalry between the soda giants, also known as the "Cola Wars", began in the 1960’s when Coca-Cola's dominance was being increasingly challenged by Pepsi Cola. The competitive environment between the rivals was intense and well-publicized, forcing both companies to continuously establish and

During the “Pepsi Challenge,” the person would prefer one product to the other. In the late 1990s, “Pepsi launched its most successful long-term strategy of the Cola Wars, Pepsi Stuff.” The Consumers were “invited” to “Drink Pepsi, Get Stuff” by using codes on cans and bottle caps to redeem points for free Pepsi lifestyle merchandise. The battle continues today “as they battle for brand supremacy…through advertisements, slogans, and celebrity endorsements.”

3.A Company that competes with Coca-Cola and sell similar products would be the known Pepsi Co. However, Coca-Cola is primary recognized globally and has always exceed according to a 2014 Nasdaq article, “Coke holds 42% of carbonated drinks while Pepsi Co. holds 30 (2014).”

Since there are a wide range of products available, the pricing for both Coca Cola and Pepsi is done according to the Market demands and the geographic segment and thus both the products pricing are set around the same level. Neither of the brands can win if they enter into a price war, simply because the cost of manufacturing and transportation is huge. The advantage to either of the companies was if they enter into a brand war. Since, Coca Cola always had competitors constantly driving them to be smarter, better and faster and since they were successfully been existing for more than a century, they have had to remain consistent with their pricing strategy. Throughout the years, Coca Cola has made many pricing decisions, but eventually the ultimate goal is to maximize the shareholder value. Coca Cola uses lower price point to penetrate new markets to face competition and also to raise brand awareness. This strategy is strongly implemented till it repositions itself as the Premium beverage as compared to its competitors.

The argument is which taste better, and is more appealing to the average person. A general study was done where they blind folded people, and put both drinks in front of them. Majority of the people surveyed, agreed they liked Pepsi more when not knowing which was what. Even though majority of them originally said they prefer Coca-Cola over Pepsi. Coca-Cola has a very secret ingredient called “7x” this is most likely the key factor in its goodness. Once before Coca-Cola used to contain more dangerous ingredients such as cocaine. They also use many simple ingredients such sugar, high fructose corn syrup, caffeine, cane sugar and other basic ingredients that most soft drinks have. Pepsi does not how ever have a secret ingredient, but they have high fructose corn syrup, sugar, and caffeine. It is practically the same as Coke just without the formula “7x”. Coca-Cola has a smoother taste and goes down easier then Pepsi, making Coca-Cola more favorable. Pepsi is also a little more sweeter and not as carbonated.

As Pepsi and coke are both carbonated soft drink industry , both of them made in drugs stores where coke comprised with wine, caffeine and coken at the very beginning and Pepsi ingredients was pepsin which helps in digestion system. Both products inner ingredients are quite same of having

In an industry dominated by two heavyweight contenders, Coke and Pepsi, in fact, between 1996 and 2004 per capita consumption of carbonated soft drinks (CSD) remained between 52 to 54 gallons per year. Consumption grew by an average of 3% per year over the next three decades. Fueling this growth were the increasing availability of CSD, the introduction of diet and flavored varieties, and brand extensions. There is couple of reasons why the industry is so profitable such as market share, availability and diversity and brand name and world class marketing.

These two-company’s economic characteristic include their market size and growth rate from the early 2000’s to 2010. Coke and Pepsi have struggled for years in the carbonated and non-alcoholic sector. According to Barbara Murray (2006c) "But as the pop fight has topped out, the industry 's giants have begun relying on new product flavors and looking to noncarbonated beverages for growth.” (Murry, 2006). For instance, Coke boasts in the advertisement as the king of the soft drink; as a consumer of both products, I agree. About 15 years ago, I was selected to participate in a critiquing of Coke and Pepsi products. Additionally, my travel to Africa in 2007 and 2010 provided the same raving review for the Coke Cola products. Apparently, Coke and Pepsi have been rivals for ages locally, regionally, nationally, multinational, and globally, therefore, one expects them to have an on-going rivalry when marketing the high-energy beverages.

“Coca-Cola was founded in 1886 at a soda fountain in downtown Atlanta, Georgia” (Coca-Cola Facts para 1). Coca-Cola is better than Pepsi due to its’ longer experience “being in business for about 125 years, the big name beverage brand inspired many consumers and viewers; sparking social interaction and encouraging innovation” (Coca-Cola Facts para 1). “Coca-Cola had bottlers to create a distinctive bottle for the beverage, and it was so noticeable that it could be recognized in the dark, and this effectively set the beverage brand apart from competition, and because of the Coca-Cola’s bottle features — it was acknowledged by many artists from all around the

One of the company’s most popular jingles was known as “I want to buy the world a

investors who interest to invest in a long term. It is caused by the company revenue,

They have succeeded in focusing on the brand image, customer retention and adding social and ethical benefits to every bottle they sell (Coca-Cola.com, 2014). “In advertising, everything depends on strategy applied on the market, which is adjusted to the positioning” (Moraru, 2010).

Last year, Coca-cola saw its sales decreased in the European market. In order to increase the sales, Coca-Cola needs to define a new strategic communications plan. As mentioned above the image of Coca-Cola has been damaged quite a lot for the past 2 years by different factors. A hard work needed to deal with consequences of this damage in the image of the company.

Pepsi-Cola brand is a brand that has been established within the refreshment industry since the 19th century. Pepsi pride the business of consumer products in beverages and snacks, on being one of the best in the world. They seek