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Comparing and contasting to coke vs. pepsi
Comparing and contasting to coke vs. pepsi
Comparing and contasting to coke vs. pepsi
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COLA WARS
Introduction
Nice play is a rare word to be found in closest rival competitor companies. Since time in memorial brutal wars have been going on in form of comparative advertisement, these advertisements focuses on comparing the competitors others companies products with their products as well as looking at what the competitor is doing wrong in order to use that as a strength. In most cases the competitor company fires back or in rare cases ignore the rival competitor’s adverts, of such cases is that of Coca-Cola and Pepsi-Cola which its history can be traced back in 1970's. The war intensified from the beginning of year 1980 all the way through to the present, there has existed advertising wars between Coca-Cola and Pepsi Cola Company (Russell, 2012). The two companies produce beverages in form of soft drinks, the products are more or less the same in the way they are produced and the purpose they serve but differentiated in packaging and branding in order to woe customers. Each company has in the past invested a greater fortune for television televisions advertisements using prominent musicians like Michael Jackson, Deon, Britney Huston, One Direction, other re-known people and celebrities with an objective of outdoing the other company in order to get the Highest market share as well as gaining the market dominance. This competition is famously known as Cola Wars. Each company has innovatively tried to come up with a different method of promoting their products including gifts and presents but this has not been achieved without challenges.
Strategic issues presented in the case of Coca-Cola and Pepsi-Cola
As people get educated about the adverse effects of the carbonated drinks and their impact in our bodies, the numb...
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... as Coke Company with 1,700 bottlers distributing coke. Coke later acquired Minute maid and later on went public with $101 per share (Coca-Cola, 2012). Pepsi on the other hand expanded its operations to Moscow and also launched their first ad campaign which was focusing on the youths. The stage for war that is experienced today was set in early 1960’s when Pepsi Cola merged with a company called Frito Ray to form Pepsi Co. Coke company acted on this by sponsoring an animated special aired on television and also launched the slogan of “it’s a real thing” while on the other hand Pepsi started operating in Japan and Part of Europe and officially launched the slogan of “You have got lot to live, Pepsi have Got lot to Give.” The cola wars were heated in later in the year 1975 with the introduction of Pepsi challenge famously known as the blind taste test (Russell, 2012).
This essay is an analysis of two advertising posters, one of being a modern piece of media, the other being aimed at the previous generation. I will be reviewing posters from Coca Cola and Benetton, the latter being the modern piece of media in this comparison.
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.
aspects: Carbonated soft drinks industry's structure, evaluation of driving change factors in this industry and finally analysis of key strategic factors it is faced with.
The “rock and roller cola wars” refers to the battle for supremacy in the market share between the Coca-Cola Company and PepsiCo since the 1980s. Both of the companies hired musicians and celebrities to promote their drinks in TV commercials. Paula Abdul, a 18-year-old girl who is rising to prominence as a highly sought-after choreographer at the height of the music video era, appeared on the face of Coke. While Pepsi had Michael Jackson, who became a dominant figure in popular culture for over four decades.
Therefore, the long-term brand of Coca cola and better pricing strategies would help in competing with Pepsi. Unlike, Pepsi, Coca cola had targeted entering into partnership and alliances with local distributors and firms. This helps to develop strong relationship within the domestic firms to reduce the domestic barriers and thus, enhance the company’s competitiveness (Thabet, 2015). Lastly, the Asian markets consist of related and supporting industries to the soft drink industry that helps the companies in gaining a strong competitive position in the markets. Based on the competitive advantage of nation’s model, Coca cola has more home based advantages to develop a competitive advantage in relation to other countries on a global
In terms of promotional activities, the advertising and giving away of free offers and vacations by Coca cola and Basmati rice by Pepsi, the coca cola’s goal in connecting the youth to the market, the different promotional TV campaigns in India using of celebrities, and the Pepsi sponsorship of cricket and soccer sports. In terms of pricing policies, Pepsi got a quicker market share by their belligerent pricing policies and coca cola’s 15-25% price cut down in the market. In terms of distribution arrangement, the bottling and packaging of products for better distribution around
1975 heralded the Pepsi Challenge', a landmark marketing strategy, which convinced millions of consumers that the taste of Pepsi was superior to Coke. Simultaneously, Pepsi Light, with a distinctive lemon taste, was introduced as an alternative to traditional diet colas. In 1983 Coke launched aspartame/saccharin blend Diet Coke. In response in 1989 Pepsi-Cola introduced an exciting new flavor, Wild Cherry Pepsi. Thus Diet Pepsi's 'The Other Challenge' campaign was based around a 54-46% lead over Diet Coke in independently researched taste tests in Australia. It was only in 1996 that Pepsi unveiled a revolutionary 'blue' look worldwide 'to transform the image and attitude' of one of the world's best-known brands. 'Pepsi Blue represents a quantum leap into the future and redefines how the Cola Wars will be fought and won in the 21st Century.'
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
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.
Cola Wars Environmental Analysis 1. Introduction External environmental analysis of US carbonated soft drink (CSD) industry allows concluding that declining CSD sales call for changes in industry operations whereby market players can benefit from the fundamental shift in the industry development and maintain its leadership positions in beverage market. Analyses of macrolevel, industry, and competitive environments suggest that expansion, strong brand recognition, and changes in value chain will be key success factors in the future industry development. 2. What is the difference between a.. External environmental analysis a. Macrolevel environment (PESTEL analysis) i. Political New federal nutrition guidelines identified CSD as the largest source of obesity-causing sugars in the American diet.
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.
Cola Wars came into existence since 1980’s though marketing campaigns of soft drinks rivals such as coca cola. Different kinds of challenges were being posed by companies like Pepsico and coca cola for marketing their products by innovating products through line extensions and entirely positioning different products for customers at worldwide basis. The modifications were being done in pricing strategy, bottling of products like soft drinks and brand positioning.
Thanks to my fascination with PepsiCo and partly because this is an assignment, I went online and search for some of PepsiCo’s most successful and ongoing marketing campaigns and strategies. During my research I noticed several daring marketing strategies Pepsi employed throughout the years. For example, gaining the support of Michael Jackson in the 1980’s and latest gaining the endorsement of global pop star Beyoncé.
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 goods which target similar groups of costumers, 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:
Yoffie D.B., & Kim K., Cola Wars Continue: Coke and Pepsi in 2010, Harvard Business School, 2011