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

  • Coke vs. Pepsi

    1653 Words  | 4 Pages

    The company known as Coca-Cola today was started in September of 1919, but the first Coke brand was served as early as 1886. Since that time it has grown to be one of the most globally recognized brand names with a stock value of $167 billion. Coke’s plan has always been developed with the future in mind. Right away the company realized that it was more profitable to manufacture the concentrate used to make carbonated drinks than to bottle it. From that point on they saw the entire world, not simply the originating country, as their desired market. It seems only practical that the company should pursue this agenda until conquered then focus the effort on expanding into different product lines. This logical idea has catapulted them into the much sought after position of number one.

    Read More

  • The History Of Pepsi

    955 Words  | 2 Pages

    Eating regimen drinks flew up as well, making a radical new pop section. Pepsi's effective invasion into the nibble sustenance business with Frito Lay have helped it fundamentally, particularly in the previous decade. Then, Coke has stayed entirely in drinks. Despite the fact that Pepsi's refreshment brands may not be as solid, its nibble sustenance business is gigantic. Coke has a major lead in the cola piece of the overall industry over Pepsi, yet Pepsi's different business lines pull in more money. Each brand has a unit of big names on their side. The two brands have rolled out huge amounts of improvements to their logos all through their histories. Neither looks anything as they made unique. They've both held onto the advanced world as web-based social networking gets greater and greater - yet Coke is by all accounts faring better so

    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

  • Exemplary Leader: Indra Nooyi

    1893 Words  | 4 Pages

    Useem, M. (2008). New Ideas for This Pepsi Generation. (cover story). U.S. News & World Report, 145(12), 49.

    Read More

  • Pepsi And Coca-Cola's Five Forces Analysis Of The Soft Drink Industry

    864 Words  | 2 Pages

    The new entrants are unable to gain considerable visibility (Enrico & Kornbluth, 1986; Kourdi, 2015; Louis & Yazijian, 1980). The long-running and heavy advertising expenditure defining Pepsi, Coca Cola and own bottlers have helped them cultivate marked brand equity and large bases of loyal customers that new entrants cannot match. The Pepsi and Coca Cola retailers enjoy marked

    Read More

  • 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

  • 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

  • Coca Cola Business Strategy Case Study

    948 Words  | 2 Pages

    coca cola company has been noted to be among those with successful business strategies in the world market. Also, it is a large corporation with over 70,000 employees. It has established its brand in over 200 countries including Japan. Out of the 70,000 employees, 59,000 are spread out in the 200 nations across the globe. The case study provides the history of coca cola Company regarding strategies it has employed in the past and the rate of their success. The one-size fits all approach used by Goizueta served the company till his successor took over in the 1990s. The company’s primary problem was crafting and executing an effective strategy to utilize its

    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

  • A Summary Of Coca-Cola And Pepsi

    2098 Words  | 5 Pages

    The principal benefit is the desire to quench the thirst of all their patrons. The point of parity in the brands is the fact that both beverages are famous among the people, under the beverage group and always up-to-date with their customer’s requirement. The point of difference lies on the image each brand reflects on the customers. Pepsi have continuously been similar in their “fun and young” dispositions, the two establishments have steadily remained on separate courses throughout the decades. For the most part, Pepsi has stuck with its elevated energy, music and comedy-driven strategy. Pepsi is the cool fashionable brand which is undoubtedly associated with the youth and the celebrity; whereas, Coca-Cola is more of an emotional brand. Coca-Cola advertisements portray a human experience in two fundamental ways. Firstly, awhile before global branding was the movement it is nowadays, Coca-Cola was incorporating diversity, as obviously viewed in its long-running “I’d like to buy the world a Coke” sequence of commercials, depicting persons from around the globe joining simultaneously in Coke and song. (Johnson, J.,

    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

  • 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

  • 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

  • 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

  • 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

More about Coke vs Pepsi: The Innovation Winner

Open Document