Pepsi : Pepsi And Coca Cola

4144 WordsDec 16, 201517 Pages
Overview The company that we have chosen to analyze is Pepsi. Pepsi is a brand of its parent company PepsiCo, which has a New York stock exchange symbol of PEP. Including Pepsi, PepsiCo is comprised of 22 brands in the food and beverage industry. Those brands include Lay’s, Gatorade, Quaker, Doritos, and Mountain Dew just to name a few. Even though PepsiCo has a small presence in the food industry, it is a major player in the beverage industry. The beverage industry is comprised of two segments; alcoholic and nonalcoholic. PepsiCo is only present in the nonalcoholic segment. The two current controlling entities in the nonalcoholic segment are Pepsi and Coca-Cola. Coca-Cola is the largest, controlling 42% of the soft drink market while…show more content…
While Coca-Cola has always operated using a marketing strategy that was traditional and in line with their longstanding culture, Pepsi has taken a different approach, even attacking Coca-Cola. Pepsi has begun to market itself as “hip”, “fun”, and “social”. They are sponsoring music festivals and targeting the younger crowd. In essence, Pepsi is trying to create a “cool” culture. Since brand loyalty and customer retention play huge roles in the beverage industry, it is important for Pepsi to find their identity and stick with it to ensure lifelong customers. There is another social impact that affects the entire carbonated beverage industry. This impact is the growing societal trend of opposing sugary beverages, more specifically soda. In the last 10 years, the average soft drink consumption has been steadily decreasing. This is in part the result of the emergence of many different “non-soda” beverages. These beverages include vitamin waters, zero calorie drinks, and the newest trend of water enhancers such as MiO. However, despite the emergence of new competition the real culprit is a societal push for healthy living. People have cast a dark shadow on carbonated beverages. Interestingly enough, it is not just sugary soda that has been given a bad rep. Diet drinks have also been chastised. There have been numerous studies, articles, and downright accusations about the adverse effects of drinking soda with artificial sweeteners. One article links the artificial
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