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Coke & Pepsi

Coke & Pepsi: Marketing Strategies
by

Mark Anderson

on 28 August 2014

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Transcript of Coke & Pepsi

The Coke & Pepsi Story
How marketing was changed!
Today
Market
Share
Captive Market
Positioning
The percentage or proportion of the total
available market or market segment that
is being serviced by a company.
Sales revenue Sales volume

Soft drink industryAvg gallons/person/year

$91.5 millionU.S. 29%Europe 38.5%
Markets where the potential consumers face a severely limited amount of competitive suppliers.
Works Cited:
http://seeker401.files.wordpress.com/2009/05/nike_logo.jpg
http://www.tbwa-london.com/assets/images/case/l-mcdonalds.jpg
http://www.dealio.com/blog/wp-content/uploads/2008/11/walmart_logo.jpg
http://techplore.com/technology/wp-content/uploads/2009/07/newIpods.jpg
http://wire.ggl.com/wp/wp-content/uploads/2009/01/xbox-logo.jpg
http://www.brandchannel.com/features_effect.asp?pf_id=201
http://en.wikipedia.org/wiki/Pepsi_Challenge
http://www.decodog.com/inven/coke/dietpep.JPG
http://www.tvacres.com/admascots_uhhuhgirls.htm
http://images.businessweek.com/ss/06/06/failures/image/coke.jpg
http://www.doobybrain.com/wp-content/uploads/2008/03/new-coca-cola-bottle.jpg
http://www.bluefeathersonfire.co.uk/Post%20Its.jpg
http://www.movieprop.com/tvandmovie/reviews/topgun.jpg
http://www.techfresh.net/wp-content/uploads/2007/08/motorola_rokr_z6.jpg
http://weblogs.baltimoresun.com/business/consuminginterests/blog/apple-logo1.jpg
http://www.engineering.cornell.edu/partners/images/motorola_3.jpg
The technique by which marketers try to create
an image or identity in the minds of their target
market for its product, brand, or organization.
Who was 1st?
So What?
Sales
1936
Pricing
6 oz. for $.05
Pepsi Sales
Penetration
Pricing
Penetrate a market
with hopes of grabbing
a large market share
Price product low -
below competition
Skimming
Pricing
Set price high when introducing
product to take advantage of
high demand
Loss Leader
An item priced at or below cost
to draw customers into a store.
1960's
1975
1986
1994
1995
Image
Advertising
Promoting the image, or general perception,
of a product or service, rather than
promoting its functional attributes.
Celebrity Advertising
Comparative Advertising
Dallas, TX
Coke
Dr. Pepper
Pepsi
#1 shouldn't include #2 in comparative advertising!
Promotion
Extended to 80% of U.S.
Merchandise 7X
$4 million on research
"Coke is trying to be more like Pepsi!"
Savannah Cola
Brand-Line
Extension
90 days --- Coke Classic
Coke II
Slotting Fees
Use an established product's brand name
to launch a new, slightly different item
in the same product category.
A fee charged to produce companies or
manufacturers by retailers in order to
have their product placed on their shelves.
$3k - Regional
$300k - National
Done to help balance the risk of
new product failure between
manufacturers and retailers.
Marketing
Information
Management
Financing
Rollout
http://www.post-it30years.com/main/celebration-history.aspx
Director of Package Innovation
3-liter
Big Slam - wide mouth
20 oz. resealable, plastic bottle
Distributing a product only in a certain area of the country.
Often accompanied by a strong marketing campaign.
Sales increased 66%
Why doesn't a company roll out a product
to the whole county at once?
Marketing
Product
Management
Distribution
Cross Promotion
Partnering with non-competing organizations
with the same target market and brand strength to achieve a much broader reach and exposure
at a proportion of the usual cost.
Five will get you Ten!
Co-Branding/
Joint Marketing
Two companies merging on a product
Other Co-Branding examples?
5 million copies of video
sold with commercial
Promotion
http://pcast.edenpr.org/groups/business/weblog/328a0/Pepsi_Commercials.html
http://pcast.edenpr.org/groups/business/weblog/44485/
http://pcast.edenpr.org/groups/business/weblog/4b7b0/
Who's #1 in U.S. sales/market volume
Other Examples . . .
An advertisement in which a particular product, or service,
specifically mentions a competitor by name for the express
purpose of showing why the competitor is inferior to the product naming it.
http://goo.gl/DT2WyM
Slotting fees originated from a 1970s bidding war for space to locate "branded" in-store cigarette point-of-sale devices called a "merchandiser." These end of aisle cigarette merchandisers place the manufacturer's products at eye level while a competitor's products are placed on the bottom shelves.

http://goo.gl/4M8izh
http://goo.gl/Yr7kDo
http://goo.gl/ppT7kv
http://goo.gl/U8Y4r2
Full transcript