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Case Study On :Coca Cola And Pepsi Cola

1817 words - 8 pages

I
have decided to conduct my research on two very well known and competitive brands of soft drinks in the world; Coca-Cola and Pepsi-Cola. They are both major global companies in beverages and other branded products that are enjoyed in over 190 countries. Both brands, through competing against each other, striving for the same goals; to build on their traditions of quality and value to provide brands, products, financial results and management performance that meets the interests of their shareholders, consumers, employees, customers, suppliers and the communities in which they operate.

Both brands are competitive products that are consumed regularly by most people. Both of the products ...view middle of the document...

Patrons and friends sampled them at his drug store soda fountain. One of Caleb's formulations known as "Brad's Drink" a combination of water, sugar, vanilla, rare oils and cola nuts is renamed "Pepsi-Cola" on August 28, 1898. This was the launch of the Pepsi-Cola Company. Since then Pepsi has developed and spread drastically concentrating on promoting the product. In 1909, automobile race pioneer Barney Oldfield endorses Pepsi-Cola in a newspaper ad as: "A bulky drink...refreshing, invigorating, a fine bracer before a race."

All successful businesses today are based on focusing on the consumer. If a company meets the requirements of its consumers (and indeed exceeds the requirements), then you have a sure-fire recipe for success. The direct customers of Coca-Cola and Pepsi are outlets such as service stations, newsagents, leisure centres, cinemas, clubs, supermarkets and many other retailers selling soft drinks. In this area the emphasis in marketing has therefore been on providing superior delivery, promotion services and sales support.

The end consumers of Coke and Pepsi are the millions of people who consume soft drinks world wide. Over many years Coca-Cola has expanded its markets horizontally in country after country, until there is virtually no place on earth where people do not drink Coca-Cola. Today this horizontal growth is almost total, with fewer than 20 countries not taking the products.

Coca-Cola is therefore now trying to develop the brand vertically. This simply means creating a deeper consumer desire for that brand than existed the day before. It involves giving people additional reasons to buy Coca-Cola brands instead of reasons to buy competing ones. That is the essence of differentiation. It is not an easy task because already 5.6 billion people have a well established understanding of what Coca-Cola means to them.

Another factor which has contributed to Coca-Cola's success is the good marketing through successful advertising campaigns which has supported the company all the way. The Coca-Cola Company has along lasting commitment to sponsorship of events as well as concerts and sporting activities at which Coca-Cola can be best enjoyed, anytime and at any age. Coca-Cola is associated with many of the most famous events:

The Olympic Games since 1928
The World Cup since 1978
The tour de France since 1985
The Davis and Federation Cups-tennis tournaments

Over decades, Coca-Cola has always had a close link with music, providing entertainment for all ages. The Company has created hit songs from its advertising. "I'd Like to Teach the World to Sing", provided a No.1 hit for the New Seekers and more recently "First Time, First Love", catapulted Robin Beck to the top of the UK pop charts in 1988. Coke has sophisticated and innovative campaigns which have been the hallmark of Coca-Cola. The company has created a series of memorable slogans, all having a clear message. The current slogan is "Always Coca-Cola ". The "Always...

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