Both Coca-Cola and PepsiCo invest tens-of-millions of dollars per year in worldwide marketing campaigns. By visiting their websites www. Even though Coca-Cola and PepsiCo are targeting the same markets, they approach their marketing strategies in very different ways. Throughout this report, I will show how these two organizations use key marketing concepts to attract consumers to their products.
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 The following are four key comparisons between Coca-Cola and PepsiCo's business model that make the two companies fierce competitors and unique businesses.
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. Complementary Products With PepsiCo's diversified business model, the company has been able to acquire or create complementary products in both the food industry and the beverage industry.
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.Introduction (from Wikipedia) Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines throughout the world. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke.
Pepsi is a carbonated soft drink that is produced and. Compare and Contrast I have decided to compare and contrast the Coke a Cola and Pepsi Cola websites.
I found that these two companies have been fighting to bring customers to their side since the birth of the two companies. History Pepsi Cola and Coca Cola has been in the cola wars for centuries now. It erupted 13 years after the birth of Coca Cola by pharmacist Caleb Bradham, when Pepsi Cola was created.
This made the two cola producers a direct competitor with one another. Pepsi vs. Coke (comparison contrast) Pepsi All the Way Flavored beverages have been around ever since man discovered the uses of water.
Eons have since passed, and man has been hard at work trying to create the tastiest, most thirst quenching beverage on the market. The fierce brand loyalties of Coke vs. Pepsi are a marvel of American marketing. Slightly older, Coca-Cola was always the dominant brand. Pepsi gained market share in the middle of the century.
Introduction (from Wikipedia) Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines throughout the world. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke. Pepsi is a carbonated soft drink that is produced and.