Coke vs Pepsi: The Innovation Winner

858 Words2 Pages
bulb-icon

Recommended: Coca-cola management style

Coca-Cola (herein referred to as “Coke”) and Pepsi have both been in business since the late 1800s selling their respective brands of carbonated beverages (Zmuda, 2011). In 1975, Pepsi began the “Pepsi Challenge” that pitted Pepsi against Coke in taste tests across North America. This “challenge” continued into the 1980s and has been coined the “Cola Wars” (Zmuda, 2011). Zmuda (2011) states that in 2011 Pepsi lost the “Cola Wars” when Diet Coke took the number two spot from Pepsi. While it is still debatable how long this will last, there are some key differences in management and how innovation is viewed by these two companies that may provide some insight into why this happened.
Upon reviewing the two companies’ websites, glaring differences immediately present themselves. To begin, the Coke website appears very inviting and links for innovation are everywhere. There is a strong emphasis on the consumer, employees and global partners and less emphasis on products or shareholder information (Coca-Cola Website, 2011). The Pepsi website, on the other hand, is more product and shareholder focused and speaks very little about its innovation processes (Pepsi Website, n.d.). Interestingly, the information contained within the sites appear to be good indicators of each of the respective companies’ views and values. The attitudes each company holds towards its consumers, employees and shareholders appears to influence their innovation strategies.
One analyst noted that Pepsi “emphasizes innovating to find what the consumer will want next, while Coke focus on innovation within its core brands” (Zmuda, 2011, p. 2). Pepsi has made attempts to redefine its brand by changing logos, slogans, and campaign directions numerous times over the ...

... middle of paper ...

...r innovation winner!

References
Coca-Cola Website. (2011). http://us.coca-cola.com
Davila, T., Epstein, M. J., & Shelton, R. D. (2013). Making innovation work: How to manage it, measure it, and profit from it (2nd ed.). Upper Saddle River, NJ: Pearson Education Inc.
O’Toole, J. (2009, September/October). Connecting the dots between leadership, ethics and corporate culture. Ivey Business Journal, 73(5), 3. Retrieved from https://ehis-ebscohost-com.csuglobal.idm.oclc.org/ehost
Pepsi Website. (n.d.). http://www.pepsico.com
PepsiCo Strategy: Marketing, International, Competitive, Jobs 2013. (2013). Retrieved from http://mybusinesstricks.com/pepsico-strategy-marketing-international-competitive-jobs-2013.html
Zmuda, N. (2011). How Pepsi blinked, fell behind Diet Coke. Advertising Age, 82(12), 1-6. Retrieved from https://ehis-ebscohost-com.csuglobal.idm.oclc.org/ehost

Show More
Related

  • Persuasive Essay On Coke Vs Pepsi

    824 Words  | 2 Pages

    Coke continuously out-stands Pepsi, even though they share a very similar taste and colour, however Coke should not be the drink that receives all the love and attention for what it offers. Despite their similar soda colour, the drinks actually contain some different ingredients, which produce a different taste, and affect the body differently. Furthermore, the way the companies markets their drinks makes a huge contribution to how successful their products will become. The major element for success however stems from their impact on society and how the companies utilize their social power to evolve. The two major soda companies are constantly head to head with one another, yet it is what they do that sets them apart.

    Read More

  • Adapting Western Brand Identity Design Principles by Saudi Graphic Designers

    2122 Words  | 5 Pages

    Branding a new company has recently become a necessary goal that every business wishes to accomplish for itself. New companies have a tough act to follow, considering the number of successful branding accomplishments: Apple, Coca Cola, Nike, and Starbucks — just a few of the examples of very successful business that have swept the market. Who doesn’t think of Apple, Coca Cola, or Starbucks, without also visualizing its brand? Apple has surpassed Microsoft, the latter having previously dominated the market for years. The reason is partly due to Apple’s highly successful branding strategy. The Coca Cola Company has also similarly surpassed Pepsi. Which brand is more recognizable? As a matter of fact, Coca Cola’s highly recognizable brand image has allowed it to conquer the U.S. carbonated beverage market, but they also have expanded their outreach to the international market, putting many local business around the world on the skids.

    Read More

  • We Didn T Start The Fire Analysis

    983 Words  | 2 Pages

    Pepsi had the great idea to use the general public in their commercials and show that Pepsi was preferred over Coke. ("Rock and... Wars"). This worked well, since the people in the commercials and the people watching at home were both included in the ‘general Public.’ ("Rock and... Wars"). Pepsi and Coke began using famous people in their commercials and advertisements. Coke and Pepsi began having blind taste tests to see which beverage is preferred. The blindfolding made it fair. People began worrying about their health and taking soda out of their diet. ("Rock and... Wars"). Due to this both Pepsi and Coke have been dropping in sales. ("Rock and... Wars"). To try and avoid competition the two brands try to use different consumers, sponsor different sports, and make different their logos. ("Rock and... Wars"). They also chose different colors for their packaging, and built different images for their brand. ("Rock and...

    Read More

  • Pepsi and Coke in the Czech Republic

    1972 Words  | 4 Pages

    Control of market share is the key issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share.

    Read More

  • Analysis Of Coke And Pepsi

    1290 Words  | 3 Pages

    The “Pepsi Challenge” was an example of the Pepsi presenting itself as a superior tasting product over Coke with blind taste tests as the proof. During the early 1990’s the bottler’s of Coke and Pepsi engaged in a lower price strategy in the grocery stores in order to compete with the store brands, this in turn had a negative impact on the profitability for the bottlers. Coke and Pepsi both were able to sustain profitability through continuous growth in Frito Lay and International channels. Finally by the later 1990’s the bottling companies realized the price wars were not doing any good just raising prices and dropped the price

    Read More

  • Marketing Case Study: SWOT Analysis Of Coca-Cola

    882 Words  | 2 Pages

    Coca-Cola’s goal was to propel Coke to be the number one beverage in the market. In addition, the company looked towards diversifying their portfolio of offerings by introducing other lines of soft drinks. As competitors such as Pepsi infiltrated the market, Coca- Cola lost sight of their company’s objectives. Executives became immersed in other issues such as government allegations, syrup prices, ownership of company franchises and ignored the principle issues such as the marketing and sale of their product.

    Read More

  • Soft Drink Industry Porter's Five Forces Analysis:

    1671 Words  | 4 Pages

    Brand Image / Loyalty: Coke and Pepsi have a long history of heavy advertising and this has earned them huge amount of...

    Read More

  • Compare And Contrast Coke And Pepsi

    946 Words  | 2 Pages

    Pepsi and Coca-Cola are both sodas, but they differ in terms of the satisfying flavors, the color and the graphic design that represents their two products, and then how Coke makes more money than Pepsi. With that said, you should have gotten the ideology of what we will go further in discussing about. Everybody loves these two very well-known sodas which can inject caffeine into you, which makes you all jittery in filling you up with an energetic energy. Alright, enough of this, let's go straight in-depth in talking about the two rivals throughout this paper of how Pepsi beats Coke in sales, but Coke is usually ahead when it comes to annual net income (Feigin) or how Pepsi is a sweeter brand compared to Coke, though Coke brand is more valuable

    Read More

  • Marketing Plan for New Pepsi Product

    1946 Words  | 4 Pages

    The A-Team has introduced a new product called Pepsi Platinum for the company, PepsiCo, in Phase Two. This dissertation will identify segmentation criteria that will impact PepsiCo target market selection. This dissertation will describe the organizational buyers and consumers of Pepsi Platinum and factors that influence their purchasing decisions and discuss how these factors will impact PepsiCo’s marketing strategy. Finally, this phase shall analyze current competitors and define the competitive landscape for Pepsi Platinum.

    Read More

  • Research Paper On Pepsi

    2038 Words  | 5 Pages

    a.) Pepsi is a brand far more complicated than just a simple cola product. The company, PepsiCo, has a wide spectrum of marketing perspectives that are vital to the consumers and the company.

    Read More

  • Pepsi Blue Case Study

    1473 Words  | 3 Pages

    Since neither of the products created the measurable sales and market share increase Pepsi needed, PepsiCo International (PCI) executives conceived of a plan to create a new tagline and re-brand all existing Pepsi products, signage, advertising materials and in-store display units. The executives envisioned a simultaneous, global campaign that would create stronger brand equity and resonance in the consumer consciousness.

    Read More

  • Comparison Of Coca-Cola Vs Pepsi

    1007 Words  | 3 Pages

    There are a variety of beverages available to us today with a wide range of differences, some are flavored, carbonated, low calorie, energy boosters, and just plain water. When it comes down to carbonated drinks there are two major rivalry soda companies dominating the market. Coca Cola and Pepsi are two well know cola distributors with very credible history, but the question still remains one is America’s favorite? With the ongoing competition between Coca-Cola and Pepsi, each company is incorporating new strategies for marketing and advertising there brands. When comparing an advertisement from each of the companies, we will review how they appeal to consumers.

    Read More

  • Swot Analysis Of Pepsico

    1666 Words  | 4 Pages

    One of the strengths that research and development at PepsiCo has is their ability to keep improving their product lines. Whether it is slight changes to a recipe or developing a new flavor profile, PepsiCo has the ability to keep up with flavor trends and are still able to appeal the ever changing taste of the public. With PepsiCo being a global company, their research and development centers are located throughout the world, including China, Germany, and India (to name a few), in order to appeal to that particular demographic (“PepsiCo.” 7).

    Read More

  • PepsiCo's marketing

    662 Words  | 2 Pages

    PepsiCo is one of the most recognized names in the snack and beverage industry, with brands like Frito-lay, Gatorade, Tropicana, and Quaker, however, it is best known for its flagship soft drink brand - Pepsi and its rivalry with Coca-Cola. To begin, PepsiCo first caught my Interest in the way it manages its business and markets its products. PepsiCo being a relatively young company compared to its rival Coke, has proven to be a formidable opponent going “head to head” with one of the biggest companies in the world (Coca-Cola). Now, when I notice PepsiCo’s growth, the first thing that came to my mind was that it is thanks to its great marketing campaigns, that Pepsi has grown to become the globally recognized brand that it is today. I also admire PepsiCo because I think the there is a high level of entrepreneurship in the way they acquired smaller brands like Gatorade thereby eliminating their competition before they become competition.

    Read More

  • Case Study on Coke versus Pepsi

    1064 Words  | 3 Pages

    The case study "Cola Wars Continue: Coke and Pepsi in the Twenty-First Century" focuses on describing Coke and Pepsi within the CSD industry by providing detailed statements about the companies’ accounts and strategies to increase their market share. Furthermore, the case also focuses on the Coke vs. Pepsi products which target similar groups of customers, and how these companies have had and still have great reputation and continue to take risks due to their high capital. This analysis of the Cola Wars Continue case study will focus mainly on the profitability of the industry by carefully considering and analyzing the below questions. Why is the soft drink industry so profitable? Compare the economics of the concentrate business to the bottling business: Why is the profitability so different?

    Read More

More about Coke vs Pepsi: The Innovation Winner

Open Document