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Marketing strategy chapter 1
Marketing strategy chapter 1
Assignment 3: marketing strategy
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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.
The reason for the popular debate between Coke and Pepsi originates from their similar taste and colour; however there are some ingredients that separate them when contributing to your health. When comparing the original Pepsi and Coke side by side, Pepsi contains four more grams of sugar in forms of fructose, corn syrup
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and table sugar (PEPSI) than Coke, producing a sweeter taste. The sweetness is mostly preferred by children, and people with a huge desire for sweets. Another ingredient that differentiates between the blue and red drinks is the citric acid which is also found in citric fruits. The consumption of citric acid helps to prevent kidney stones, growth of cancerous tumour cells, and helps with the regeneration of skin tissue or slows down the production of wrinkles. (Kukreti. “Why Citric Acid Is Essential For Your Body (& Who Should Avoid It”)). Pepsi is a great solution for those sugar cravings, while still advantageously contributing to your well-being. Since the year Pepsi was invented (1898) till today, they have contributed to society by acquiring and collaborating with a total of 8 well known brands; some of which include Mountain dew, Starbucks, and Aquafina (A brief history of PepsiCo’s beverages).
Pepsi by all means, will not hesitate to when promoting their products and in fact, Pepsi has been spending over one billion dollars on advertisements, gaining thirty-four millions Facebook likes and two million Twitter followers (O’Brien. "Coca Cola vs. Pepsi: Comparing Sales, Earnings & More"). They also sponsor some of the famous American sports for instance, NFL (national football league), the NHL (national hockey league), and just recently, they have also replaced Coke, as a NBA sponsor (national basketball league) who was a major sponsor for two years in a row (Alesci, Rooney). Pepsi has a huge impact of today's generation and will not balk at anything to come to the
top. In contrast to Pepsi's fruity and super sweet taste, Coke provides a warmer and sweet taste. Coke is made with less sugar; however it contains a higher level of carbonation which produces a fresh and crisper taste (Pepsi vs. Coke). Although the taste may be better to the average human, the content of phosphoric acid in the original Coke is higher than Pepsi's. (5 mg of phosphoric acid per oz in Coke, and 4.4 mg in Pepsi) (What Is in Coca-Cola?) (Phosphorus). This is a major disadvantage for the human body because it causes side effects such as teeth erosion, and kidney disease (Singleton). Coke may be better suited for those with a sweet tooth, compared to the cheery and bright sensation presented in Pepsi; however the effects may not be as desirable. As America's number one carbonated soda Company, Coca Cola has also made a huge impact in society. As if Pepsi did not already have a lot of followers, Coke has a total of 92 billion likes on Facebook and nearly 3 million followers on Twitter (O’Brien). However, that does not come for free considering the fact that Coke spends at least 2 billion dollars on marketing and advertising; which is double the amount that Pepsi puts into advertising their products. Just like Pepsi, coke has also acquired and teamed up with some of the popular brands which include Sprite, Fanta, and Dasani. With this said about America's most favorable drink however, you would expect that most of Coke's acquired brands would outshine Pepsi's, yet that is not the case. As of 2014, the top ten brands are equally split from the red and blue side which demonstrates that Pepsi knows how to market well, without having to sacrifice as much money. (Top Ten drinks) When comparing the two most dominate soda companies side by side, the drinks are not so similar after all. Although Pepsi may be sweeter, the ingredients such as citric acid do show some added benefits compared to the high content of phosphoric acid in Coke which has the opposite effect. Coke may also have more followers of social media, and spend more money on advertisements; however we can see in the comparison of which company markets their product better. Pepsi may appear to be second, yet they way Pepsi provides, and contributes to society makes it first.
This is because the ad contains biased information telling people why Pepsi is the best product and why they should only buy Pepsi. If I had never had either of these two sodas I would probably choose to drink Coca-Cola based on the advertisement.
In the past couple years people all around the nation, whether it's in New York City or an 8th Grade classroom in Michigan, people have been pressed with the question, whether the New York Soda Ban, is a good thing, improving health, or if there is a larger issue. Is this decision showing evidence of the Government interfering with our basic civil liberties?
It is sad. People from all races and backgrounds are obese. In a recent survey done at Henry Ford College, 43 percent of students were overweight. Whether it is because they do not follow a healthy diet or they inherited it from their parents. Being overweight is correlated with lacking exercise or physical activity and not watching what is on the plate. Obesity can cause many illnesses, including diabetes, which is very common. As the debate whether soda tax should take effect arises, critics say that the tax will help those with obesity-related illnesses. What about exercising and maintaining a healthy lifestyle? These two factors cannot be forgotten knowing they are the most important. Americans have consumed 12 percent of soda and become less active since 1970. A soda tax aims to stop consumers from buying soda to help those who are obese. This will not be effective. Therefore a soda tax will not be good public policy.
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.
Pepsi Company (PepsiCo) owns many brands of beverages, snacks and other foods. Its major product, Pepsi Cola, is one of the most popular carbonated beverages. Besides that, PepsiCo owns the brands Quaker Oats, Gatorade, Frito-Lay, Tropicana, Mountain Dew, Naked, Mirinda and SoBe. In order to maintain, or preferable expand, its market share, PepsiCo constantly introduced new products under its brands. This is a marketing strategy known as Product Development. By modifying the formulas and ingredients, PepsiCo had invented and marketed more than 50 types of carbonated beverages under the brand of Pepsi. To name a few, Pepsi Free introduced in 1982, Pepsi AM introduced in 1989, Pepsi Tropical introduced in 1994, Pepsi Blue introduced in 2003, Pepsi Edge introduce in 2004, Pepsi Lime introduced in 2005, and Pepsi Ice introduced in 2007. Some of the products survive and being accepted by consumers, however large number of the new formula Pepsi had failed and been removed from the market shelves in as short as 6 months.
Pepsi Cola Marketing Strategy PEPSI COLA For Pepsi Cola Ltd, marketing opportunity analysis is a continual and ongoing process. Pepsi have used the new product strategy to realise their ambitions to both defend their current market position, and reinstate their position as a product innovator. Pepsi wishes to create a clear cola that is 100% natural, low in sodium, caffeine-free, and still maintains the flavour of its original cola. They will call it Pepsi Au Naturel.
...e and Pepsi’s already established image as producers of premium product is key to discouraging other companies from entering the soft drink industry. However, as the market in the U.S has leveled off, they should continue to invest globally in marketing and advertising for further profit growth, which will in turn positively influence their well established brands to further increase soft drink sales and profits.
We are all familiar with sugar. It is sweet, delicious, and addictive; yet only a few of us know that it is deadly. When it comes to sugar, it seems like most people are in the mind frame knowing that it could be bad for our health, but only a few are really taking the moderate amounts. In fact, as a whole population, each and everyone of us are still eating about 500 extra calories per day from sugar. Yes, that seems like an exaggerated number judging from the tiny sweet crystals we sprinkle on our coffee, but it is not. Sugar is not only present in the form of sweets and flavourings, it is hidden in all the processed foods we eat. We have heard about the dangers of eating too much fat or salt, but we know very little about the harmful effects of consuming too much sugar. There still isn’t any warnings about sugar on our food labels, nor has there been any broadcasts on the serious damages it could do to our health. It has come to my concern during my research that few
Would you drink something that is associated with health problems and even death? Well energy drinks are highly caffeinated beverages that many people have become depended on to get through certain things that need done. They are used to give individuals a quick energy boost to get things done. Today many people question how safe energy drinks really are for the quick energy they supply. In fact, a sixteen year old girl died of cardiac arrest just after ingesting an energy drink, while on vacation with friends. Almost everyone who enjoys drinking energy drinks, knows that high levels of caffeine are in these beverages, and they continue to drink the ignoring the risks. But some people are fine with the high levels of caffeine and just drink them because it makes them feel energized. They seem to accept the shocking circumstances because it helps them gets things done when they need the most energy. On the other hand, some people disagree and think that it is not only bad for individuals
Without a doubt, no beverage company compares to Coca-Cola’s social popularity or brand notoriety. Some people buy coke, not only because of its taste, but because it is also the most socially accepted brand. Another strength that is very important to Coca-Cola is customer loyalty. For instance, in a household where parents are avid Coke drinkers, this will be passed down to their children. Customers will continuously but Coke.
PepsiCo strength branding. One of PepsiCo’s top brands is of course Pepsi, one of the most recognized brands in the world. In 2016, it ranked 24th amongst top 100 global brands. Pepsi generates more than $15,000 million in annual sales. Recognized brands include, Pepsi, Diet Pepsi, Gatorade Mountain Dew, Thirst Quencher, Lay’s Potato Chips, Lipton Teas (PepsiCo/Unilever Partnership), Tropicana Beverages, Fritos Corn, Tostitos Tortilla Chips, Doritos Tortilla Chips, Aquafina Bottled Water, Cheetos Cheese
... it’s a buyer’s market, therefore instead on focus on push advertising and trying to compile prospective customers to buy their product, Pepsi is trying to make Pepsi a part of the consumers life so, whether consciously or unconsciously, if a customer goes out to buy soda the first thing that comes to his/her mind, is Pepsi. I find this especially intriguing, because as an aspiring entrepreneur I hope to one day market my products with the same if not better technics as Pepsi.
Pepsi was introduced in 1893 by Caleb Bradham as “Brads Drink” which then was renamed to “Pepsi Cola” in 1898. There wasn’t many options for advertising in this era due television not being introduced into households till the late 1900’s. One of the first Pepsi Cola advertisements was a black and while flyer that had a few characters laughing and read “Whoope!!! Zoom!! Drink Pepsi-Cola” at an advertisement from Pepsi, the have bright blue, red, and white colors that pop and are eye catching. Comparing this ad with a current ad and modern technology, you can see that Pepsi’s marketing and advertising techniques have come a long way. Reviewing a recent Pepsi advertisement, you can see that they have made groundbreaking changes to their branding techniques. First I will I will note that their choices in colors (red, blue, and white) for their brand are not only eye popping, but in a way symbolize the colors of America. I am not sure if this was their intent but it sure does standout. Next, there slogan in the ad states “Help Kick Off The Pepsi Super Bowl Halftime Show”, this ad targets a very large group people because its directly relating to one of the biggest sports event which is Super
Diet sodas have decreased in sales due to recent findings on its potential health effects. The sales for diet soda have decreased 7 percent over the past year regarding amid research on diet soda products. Though the word diet means the kind of food/drinks a person habitually eats/drinks, diet soda is a chemical cocktail misleads millions of people. Diet soda was created by Kirsch Bottling in Brooklyn, New York with the product called No-Cal. The idea was for people who were diabetic, dieters.
Coke and Pepsi have been raging war for over a century now, turning their sodas into a multi-billion-dollar industry. Coke has been able to drive more earnings for its bottom line, and while Coke’s net income has been trending downward in recent years, it manages to stay ahead thanks to superior margins. Pepsi, on the other hand, has produced consistent net profit margins of around 10%, while Coke margins have been in the 15-18% range for the past several years (O’Brien). Every company has a Market Cap, which is basically a fancy way of saying how much the company is worth, and Coca-Cola’s market cap is a whopping $180 billion. Pepsi’s Market Cap is $150 billion, which may not seem like a big difference, but $30 billion is a lot of cheddar. Therefore, Coca-Cola owns 51% of the soft drink market, whereas Pepsi only owns 22% of it. Coke claims to own a total of 35 different brands, including Fanta, Sprite, Powerade, Vitaminwater, and many others. Pepsi owns 22 different brands, including 7up, Gatorade, and Mountain Dew “Coke (Coca-Cola) vs Pepsi - Soda