Marketing For Managers | Course Paper

Marketing Mix for PepsiCo and Coca-Cola

Chanda Kapemba

Marketing for Managers EBS5041

Term Project

May 2022

Graduate School of Business

The University of Zambia

INTRODUCTION

The soft drink industry has been around for a long time. It is fair to conclude that these companies

control a significant piece of the market. Soft drink consumption in urban culture has been quickly

increasing, with little indication that it will decrease in the coming years. The reason for this is that

soft drinks are commonly served at dinner parties and other occasions in urban areas (Christian

Gronroos, 1994). Marketers are working on new techniques to strengthen the manufacturing,

marketing, and transportation components of their soft drink industry and keep them on top.

Furthermore, the competition structure for such businesses differs significantly from that of other

businesses. The key win is determined by a company’s price, customer-centric attitude, and ability to

entice customers with creative approaches (Christian Gronroos, 1994).

Over the last few years, we’ve seen some of the most incredible advertising ever created, all aimed

at attracting customers to a single business. In today’s extremely competitive market, there are two

names that are synonymous with providing excellent service and, alternately, remaining at the top.

Coca Cola and Pepsi. These two corporations have seized every opportunity throughout the years to

exploit the weaknesses of the other (Haldipur, V.) (2015).

In this project, we’ll look at Pepsi and Coca-marketing Cola’s mix to see how they sell their products

to their customers. Not only that, but we’ll walk you through the process right up to the moment

where you pay for these products.

Pepsi Co.

Pepsi was launched in 1965 in New York. It makes non-alcoholic beverages and food processing

equipment. PepsiCo is a company that produces and manufactures carbonated beverages. It’s

available at supermarkets, restaurants, movie theatres, and vending machines. Caleb Bradham, a

pharmacist in New Bern, North Carolina, invented the drink in the 1890s (David Jobber, 2001). On

June 16, 1903, the brand was registered as a trademark. In 1988, Pepsi was introduced to the Indian

market. In 1988, PepsiCo established a joint venture in India with the Punjab government-owned

Punjab Agro Industrial Corporation (PAIC) and Volta’s India Limited (David Jobber, 2001). This joint

venture marketed and distributed Lehar Pepsi until 1991, when international brands were

permitted; PepsiCo bought out its partners and terminated the joint venture in 1994. Others believe

that Pepsi was barred from entering India in 1970 because it refused to give a list of its contents, and

that the restriction was removed in 1993, with Pepsi entering the market shortly after (David Jobber,

2001). These squabbles serve as a reminder of India’s tense relationship with large global

corporations. Some claim that PepsiCo and The Coca-Cola Company have been prominent targets in

part because they are well-known international corporations that attract a lot of attention (David

Jobber, 2001).

Coca-Cola

Coca-Cola is a carbonated soft drink that can be found in supermarkets, restaurants, and vending

machineries in every country The Coca-Cola Company in Atlanta, Georgia produces it. It was founded

in 1886. Coca-Cola claims to have distribution in over 200 countries (Prof. Elisante ole Gabriel, 2005).

Coca-Cola, the world’s largest soft drink company, returned to India in the 1990s after leaving in the

late 1970s due to the Foreign Exchange Regulation Act of 1973. Foreign firms were required to dilute

their shareholdings to 40% under the Act, which was intended to ‘Indianite’ them. Coca-Cola chose

to shut its activities in India rather than reducing its shareholdings to the statutory level set by the

Act (Prof. Elisante ole Gabriel, 2005).

Coca-Cola is the largest beverage company in India, with over 60% of the market share in carbonated

soft drinks (Prof. Elisante ole Gabriel, 2005).

Coca-Cola, the world’s largest soft drink company, returned to India in the 1990s after leaving its

operations in the late 1970s due to the Foreign Exchange Regulation Act of 1973. Foreign

corporations were required to dilute their shareholdings to 40% under the Act, which was intended

to ‘Indianize’ foreign companies. Coca-Cola chose to cease operations in India rather than reducing

its shareholdings to the statutory level set by the Act (Prof. Elisante ole Gabriel, 2005).

MARKETING MIX

The marketing mix refers to the combination of marketing tactics that a company employs to

achieve its marketing goals. These marketing instruments are divided into different categories in the

marketing mix. The four p’s, or product, pricing, location, and promotion, are used to classify and

categorize marketing (ZelalemAnley, 2011). Product design, quality, features, branding, and

packaging are among the most basic marketing tools. The price of a product, or how much buyers

pay for it, is an important marketing technique. Discounts, allowances, credit conditions, and the

payment period are all part of it (ZelalemAnley, 2011).

Another important component of the marketing mix is location. It also comprises the company’s

different actions aimed at making the product accessible and available to the customer.

Transportation facilities, distribution methods, coverage area, and other considerations all influence

the location (ZelalemAnley, 2011).

The fourth marketing mix tool is promotion, which encompasses all of the activities that a firm

engages in to convey and promote its product to its target market. Sales promotion, advertising,

sales force, public relations, and direct marketing are all examples of promotion (ZelalemAnley,

2011).

1. Product

SulekhaGoyat (2011) defines a product as anything that may be supplied to a market in exchange for

attention, acquisition, use, or consumption that might satisfy a demand or need. Product variety,

quality, design, features, brand name packaging, sizes, services, warranties, and returns should all be

addressed while developing a product strategy.

At three levels, the product offering can be adjusted to produce various market effects: the core

product, the tangible product, and the augmented product. A product is defined by the value it

provides to clients, not by its physical form. These advantages could be physical or psychological

(SulekhaGoyat, 2011).Features, quality, aesthetics, packaging, branding, and labeling are all

examples of tangible products. Additional services aspects such as after-sales service, extended

warranties, credit facilities, technical advice, and product trials are all examples of augmented

products (SulekhaGoyat, 2011).

The service component of the product offer can be broken down into two parts: core services, which

represent the primary benefit, and secondary services, which reflect both the tangible and

augmented product levels. The latter is best defined in terms of the method in which the service is

delivered (SulekhaGoyat, 2011).

Coca-Cola Product

Coca-Cola Company products are consumed in excess of 1.9 billion servings each day. Rather than

expanding across the food, snack, and beverage businesses, Coca-Cola has focused on developing a

beverage empire (Rustorm S. Davar, 1996). Coca-Cola divides its goods into two categories: sparkling

beverages (carbonated beverages) and still beverages (non-carbonated products). Sparkling

beverages accounted for about 63 percent of Coca-total Cola’s bottle/can sales in the fiscal year that

ended in 2020, and 70.6 percent of bottles/cans sold by volume (McKelvey, S. M. 2006).

Coca-Cola is a multinational corporation with many different products. They’ve invented and

produced a variety of goods over the years, in addition to their main cola drinks. The following is a

list of Coca-Cola brands:

Appletiser

Aquarius

BPM Energy

Barq’s

Beat soda

Beverly

Cannings

Cheers

Lemon & Paeroa

Lift

Lift plus

Lilt

Manzana Lift

Mare Rosso

Mello Yello

Mezzo Mix