Marketing Mix of Coca Cola and Pepsi Co.
Every marketing mix is used by companies has a marketing strategy. Comparing soft drink companies such as Coca Cola and Pepsi will provide informative information about the marketing mix used by both companies in the industry. Four areas of the marketing mix include product, price, placement, and promotion. Some of Coca Cola and Pepsi marketing mix strategies are similar and they are different. Each company’s product positioning and brand strategy will be identified.
Coca Cola has a vast product range for its marketing mix. Coca cola offers sixteen different types of drinks that vary from soft drinks, water, sports drinks and juices. Coca Cola products are sold in many different types of packages and sizes displaying the Coca Cola logo on all. Out of all their products their main product is Coke. This product is sold from 200ml to 2 liter in in plastic bottles, cans or glass.
Coca Cola’s price strategy in its marketing mix is just as dominant as Pepsi’s. Cokes products are priced like Pepsi’s products. The reason for that is if coke decided to heighten their prices then the customers might switch products and go for Pepsi rather then Coke. Although they both reflect price similarity, Coca Cola offers discounts when items are sold in bulk.
For over 130 years Coca Cola has been in the market. It now operates in over 200 countries worldwide. That wide of a distribution network showcases how successful Coca Cola places strategy in the marketing mix. They have an extensive process to get their product to their customers. They process of product placement includes five different steps before they are placed for the customers purchase. First, the beverage is produced and transported to bottlers. Second, the bottlers fill each container then ships it to the carrying and forwarding handlers. Third the bottles are transported by road to stockiest. Forth, they are shipped to distributors. The fifth step is when they arrive at retailers and are finally placed on the shelves for consumption. This process makes their products available in almost all retail stores and super market stores universally. They are not just placed in retail and super markets. Within the supermarket’s coca cola get special shelf space that increases their visibility to consumers while they are shopping. Coca Cola is also available in hotels and restaurants globally as well. If that isn’t enough, they have also created an economically responsible chain where they enforce recycling by collecting left over glass bottles and convert them into reusable material. This doesn’t only support the environment it also reduces cost and resource use.
The Coca Cola company set the standard for advertising and branding when it comes to the promotion of their products. Their promotion strategy is market though media TV, online and printable advertisements. When Coca Cola makes their commercials for TV, the commercial is always heart felt and targets a mass group. Additionally, their product is placed strategically inside of movies scenes. Choosing to connect with youth, Coca Colas also launched “taste the feeling campaign in 2016. The purpose of the campaign was to tie happy memories and coke together as a reminder to their customers. This company does not just stop there they also engage in sponsorship as well. They are sponsored by about 7 different industries annually ranging from American idol to FIFA World cup.
Pepsi Co Marketing mix consist of soft drinks, snacks and juices. Without a doubt the cold carbonated drink Pepsi is their leading product. Other drinks that they offer for example aside from Pepsi are 7 Up, Mountain Dew, Bubbly, Lipton Iced Tea, Izzie, and many more. Operating in the food and beverage sector they cater to a wide variety of markets.
Pepsi Co price strategy in its marketing mix is based off customer demand. Each product that Pepsi Co offers is priced at a different rate, that rate is based off their competition and their targeted group. Additionally, the size of the product also includes the fluctuation of price, the larger the container the higher the price. It is safe to say that prices are based off the quantity of product provided per each container. Back to the target customers, just as grocery store jack up the prices for the organic and healthy foods filled of antioxidants so does Pepsi. Pepsi Co targets health obsessed customers through Tropicana beverages. Their prices remain higher because Pepsi knows that target group will pay a higher price.
Pepsi Co originated in 1898, that was 120 years ago, and since then has spread its network to more than 200 countries universally. Pepsi placement marketing mix is specific, it is only sold where target customer occupies. This company values their distributors relationship. From that they have created a vast network of restaurants, retailers, supermarkets and grocery stores. Pepsi ensures that their products are accessible to all people, except for Tropicana and Lipton iced tea. They are available to select sector dur to their targets customer based off surveys.
Pepsi promotion marketing mix is incredible. They use 4 different types of promotional strategies such as ads online, print, outdoor and television. They typically target our youth by using well known movie stars so that they can easily relate. Pepsi Co also promotes their healthy drinks such as Tropicana in a way to the health concerned customers by showcasing the drink with people that work out. That way the customers can relate these to items and make the decision to buy that product off the fact that they would also like to maintain a healthy lifestyle. Just as Coca Cola, Pepsi Co also indulges in sponsorship programs around the world such as cricket and football.
Coca Cola and Pepsi are dominant beverage providers around the world. Both of their marketing mix are similar in many aspects, but also have differences in their strategies when it comes to marketing their products. Both industries offer a wide variety of shapes and sizes for their content to be placed in. Including variation on price per the size of container but even then, Pepsi Co and Coca Cola prices are still like avoid the lose of consumers to the other brand. They participate in promotion through media outlets and sponsorships internationally creating their vast product placement. Coca Cola focuses on visibility in their supermarkets while Pepsi does not. Coca Cola launched a campaign to target youth, while Pepsi Co focuses on targeting healthy life style customers with high priced fruit juices to make them believe that they are making a health-conscious decision. No matter their differences both companies have unlocked the key to success when it comes to marketing and will continue to thrive.