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The Cola Wars

Pepsi vs Coca Cola - Comparison of Marketing and Selling

Marie Niemann

on 17 December 2012

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Transcript of The Cola Wars

The saga began in 1886, when John S. Pemberton developed the original recipe for Coke … HISTORY by Carina Sofie Krüssenberg BMW1111112
& Marie-Kathrin Niemann BMW1111136 Established: 1886
own 4 of the world’s top 5 nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Sprite and Fanta
Company Associates: 146,200 worldwide (as of December 31, 2011).
Operational Reach: 200+ countries
Consumer Servings (per day): 1.8 billion
Beverage Variety: more than 3,500 products The Coca Cola Company
Facts Company Revenue: $47.6 billion (12 months ending Sep 30, 2012)
• Unit case volume grew 5% to 26.7 billion unit cases worldwide
• Operating income grew 20% to $10.2 billion
• More than 55% of their net operating revenues and nearly 80% of their unit case volume were generated outside of North America 2011 Financial Highlights • To refresh the world...
• To inspire moments of optimism...
• To create value and make a difference Their Mission Brand Name: Coca-Cola

Drink Type: Soft Drink

Coca-Cola: most popular and biggest-selling soft drink in history, as well as the best-known product in the world Flagship-Product Established: 1898, headquartered in New York

Global consumer goods company, primarly engaged in production, marketing and sales of food, snacks and beverage products

second largest food & beverage business in the world

Company Associates: 297,000 worldwide

Operational Reach: nearly 200 countries

Beverage Variety: more than 200 brands PepsiCo, Inc. Brand-Name: Pepsi Cola

Drink-Type: Soft Drink
created and developed in 1893 and introduced as Brad's Drink, it was renamed as Pepsi-Cola on August 28, 1898, then to Pepsi in 1961 Flagship Product Revenues: Company recorded revenues of $66, 505 billion (during financial year ended December 2011) = increase of 15% over FY2010
Net profit: $6,443 billion = increase of 1,9% over FY2010
Operating profit of the company: $9,663 billion = increase of 15,6% 2011 Financial Highlights To live for now
To change the game
To catch the Pepsi spirit
To reach out to younger generation by appealing to pop culture with flashy pages, popmusic, cars and fashion Their Mission… Diet Coke (1982) Fanta (1940) Sprite (1961) world's leading lemon-lime flavored soft drink
sold in more than 190 countries and ranks as the No. 3 soft drink worldwide

second oldest brand of The Coca-Cola Company
consumed more than 130 million times every day around the world

sugar- and calorie-free soft drink
one of the largest and most successful brands of The Coca-Cola Company, available in over 150 markets around the world
world`s top selling diet coke

Today: over 500 beverage brands are sold in more than 200 countries
amounts to 3,500 beverages in numerous categories, such as regular, low- and no-calorie sparkling beverages; fruit juices and fruit drinks; bottled water; sports and energy drinks and ready-to-drink teas and coffee Other top-selling Brands of
The Coca Cola Company CCC purchased a full 60-second block in the second quarter
featured animated and familiar polar bears, each wearing a team-themed scarf
Coke created two versions of "Catch"
Coke Ad depended on outcome of the game -> reflected what was actually happening in the game

Agency: Wieden + Kennedy Portland
Animation: Framestone Coca Cola Commercial “Catch”
for Super Bowl 2012 Coca Cola Company:
Annual Marketing Expenses total worldwide amounts spent on print, radio, internet, and television advertising:
2012: $3.1 billion
2005: $2.5 billion
2000: $1.7 billion
1993: $1.0 billion 9,9% 17% U.S. Soft Drink Market 2010 use of advertising as its main source of increasing consumer awareness
1885: Coca-Cola relied on images of smartly dressed young women to sell its beverages
1930s: CC used the modern image of Santa Claus in its advertising
Today: "family-friendly“, joy, togetherness
often relies on "cute" characters (e.g. the Coca-Cola polar bear mascot and Santa Claus around Christmas) Coca Cola Advertising Coke always held the bigger market share in this area
at times, Pepsi – fueled by smarter and more aggressive advertising campaigns – moved ahead
PepsiCo´s new strategy: company focusing more on water, juices, teas and sports drinks  Better-For-You-Products
Coke´s consistent strategy wins the Cola War: company continues to focus on selling soft drinks globally, but even vows to rebuild Coke sales in the U.S. market Conclusion PepsiCo 2011: 38% more revenue than Coca Cola BUT its archival sold $28 billion worth of soda while PepsiCO only sold $12billion
March 2011: Pepsi fell from the No. 2 spot and Diet Coke became the No. 2 soda in America (2010: Diet Coke sold 927 million cases, compared to Pepsi´s 892 million)  Cola Wars had finally declared a winner: Coca Cola Conclusion
Pepsi officially lost the Cola Wars Sources Coca Cola Marketing Strategy innovating marketing techniques
continuous improvement in the packaging and brand positioning resulted in the success of this company
association with mega global celebrations and events (Happiness, Family, Culture, Sports and Music)
philosophy is to meet the level of sophistication of its consumers http://www.coca-colacompany.com/

Frito-Lay Brands
Frito-Lay North America is the $13 billion convenient foods business unit of PepsiCo.
Frito-Lay is also dedicated to giving consumers a wider range of healthier choices

Tropicana Brands
Tropicana, the strongest name in juices
plenty of nutritious soft drinks Other top-selling Brands of
The Pepsi Company

Quaker Brands
Holding No.1 positions in their respective categories are favorites such as Quaker Oats, Quaker Rice Cakes etc.

Gatorade Brands
Available in more than 80 countries
Gatorade's line of performance drinks adds over 45 years of rehydration and sports nutrition research to the PepsiCo portfolio Pepsi ads often focused on celebrities choosing Pepsi over Coke
In 1980 they began hiring more and more popular spokespersons
In 2011, Pepsi starts anti-Coke advertising
Today:”lifestlye-brand”, coolness, excitement and complacency
often relies on famous and pop star characters
(e.g. Nicki Minaj “Live for now”) Pepsi Advertising aggressive marketing strategy
first company which does lifestyle marketing
continuous improvement in the packaging (e.g. “the new skinny can” for health-conscious women)
global celebrations and events (Charity, Culture, Sports and Music)
Pepsi began to extend its operations beyond soft drinks into snack food
investing in a healthier future for people and our planet Pepsi Marketing Strategy

titled “King’s Court”
campaign was developed at TBWA\Chiat\Day, Los Angeles
full 60-second Super Bowl commercial with Elton John and X Factor USA winner Melanie Amaro
Pepsi’s number-one target market: young people Pepsi Commercial „King‘s Court“
for Super Bowl 2012 Coca Cola and Pepsi on Social Introduction

Company Facts (Coca-Cola Company & PepsiCo. Inc.)
Stock Values
Product Variety
Super Bowl Commercial
Marketing + Advertising Strategy
Evolution Of The Logo
Social Media Channels

Conclusion Structure
Full transcript