The cola wars are a series of mutually-targeted television advertisements and marketing campaigns since the 1980s between two long-time rival soft drink producers, The Coca-Cola Company and PepsiCo. The battle between the two dominant brands in the United States intensified to such an extent that the term “Cola wars” was used to describe the feud. In this presentation discussed regarding Rivalry between Cocacola and Pepsi

1. Sameer Dhurat
Divesh Chauhan
Krutica Ahire
Rahul Lokhande
Amol Chavan
Bhakti Baniya
Riddhi Chinchay
Ankita Dhumale
Prathamesh Baluragi
GROUP MEMBERS

2. Table Of Contents
• Introduction
• Evolution of Logo
• Market Information
• Products in India
• Top 10 Cola Products
• Industry Insights
• PESTEL Analysis
• SWOT Analysis
• 4P's Anaysis
• Case information
• Pepsi and Coke Controversy
• 9 disturbing side effects
• Market Share
• Different Marketing Strategies
• Current Scenario
• Reference

3. Introduction
Coca Cola Pepsi
Logo
Type Cola Cola
Manufacturer The Coca-Cola Company PepsiCo
Country of origin United States United States
Introduced May 8, 1886; 130 years ago 1893; 124 years
ago (as Brad's Drink)
1898; 119 years
ago (as Pepsi-Cola)
1961; 56 years
ago (as Pepsi)
Colour Caramel E-150d Caramel E-150d
Variants Diet Coke
Coca-Cola Life
Diet Pepsi
Pepsi Next
Related products Pepsi
Irn-Bru
Coca-Cola
RC Cola

4. Evolution of Logo

7. Market Information
Coca cola
49%
Pepsi
20%
Others
31%
Market Shares
Market share of carbonated
beverages worldwide as of
2015, by company

8. Coca cola products in India
• Zico
• Aquarius
• Vio Almond Delight
• Vio Kesar Treat
• Maaza
• Pulpy Orange
• Minute Maid Nimbu
• Minute Maid Guava
• Minute Maid Mango
• Minute Maid Mixed
• Fanta Green Mango
• Fuze Tea Lemon
• Fuze Tea Peach
• Kinley Water
• Schweppes Ginger ALE
• Schweppes Soda Water
• Schweppes Tonic water
• Coca-Cola
• Diet Coke
• Coke Zero
• Thums Up
• Sprite
• Georgia Gold
• Sprite Zero
• Fanta
• Limca
• Kinley Soda

9. Pepsi products in India
Foods
• Cheetos
• Kurkure
• Lay’s
• Lehar Namkeen
• Quaker Oats
• Uncle Chipps
Beverages
• 7UP
• Aquafina
• Duke's
• Gatorade
• Mirinda
• Mountain Dew
• Pepsi
• Slice
• Tropicana

10. Coke Pepsi
Brand Value $79.21bn $10,025m
TV advertising spending $231.5m $659.1m
Number of Facebook
fans
102.8m 36.4m
Net Operating Revenue $ 41863 $62,799
Total Asset $ 87,270 $ 74,129
Long Term Debts $ 29,684 $ 30,053

11. Top 10 Most Popular Soft Drink Brands in India 2017
10. Mountain Dew
9. Mirinda
8. 7 UP

12. 7. Maaza
6. Fanta
5. Limca

13. 4. Thums up
3. Sprite
2. Pepsi

14. 1. Coca-Cola

16. Leading most
valuable soft
drink brands
worldwide in
2016, based on
brand value (in
million U.S.
dollars)

17. Price in India
Coke ( ₹ ) Pepsi ( ₹ )
150ml 15 18(mini can)
200ml 8 8
250ml 20 25(can)
300ml 30(diet coke) 15
330ml 35(zero) 20(cola can)
400ml 25 Not Available
500ml 20 20
600ml 37 25
750ml 40 30
1250ml 58 55
1750ml 70 Not available
2000ml 90 90

18. Industry Insights
 Major Companies
 Stimulants in Soft Drinks
 Bottling and Distribution Network
 Pricing Strategy
 Competitive edge
 Significant Investments
 Advertising Strategy
 Products

20. PESTEL ANALYSIS

21. POLITICAL
• Government influence all 5 forces of porters model.
• Trade, tax policy, labor laws, amount of permitted goods and services by
government.
• Food & drug Administration (FDA)
• Political Condition in international market Unrest or change in government
• Inability to penetrate market due to conflict, war
• Fines for different rules & regulations
• Changes in laws & regulation
• Land acquisition and permits
• Import – export regulations
• India- Food, drug & cosmetic Act, Occupational Safety & health Act
• Foreign, State & local laws
• ex. Case against Coca cola by Government of kerala in 2010

22. ECONOMIC
• Growth rate, interest rates, employment rates, currency exchange rates,
inflation rate
• Purchasing power of customers
• Revenue
• Accounting standards
• Cost incurred- raw material, wages
• Fuel Prices- Distribution network
• Fluctuation in market, money supply, business cycle
• Different Strategy for- underdeveloped, developing, rural-urban
• ex. Net operating profit for coca cola outside US stands 72%. Companies
uses 64 various types of currencies

23. SOCIAL
• Lifestyle changes- its base in advertising campaign
• Company has to adjust with changing society
• Adopting management strategies to adopt the social trends
• Important to know culture before entering the market
• Consumer & Gov. are increasing awareness of public health consequences,
mainly obesity
• Diversity management
• Age distribution of country
• Main consumer- young & children
• Old celebrates with alcohol
• Age 37-55 years- concerns nutrition
• Time saving product for many homes
• Ex. Coca cola donates 1% of profits to charity in spain & creates friendly
company range
• Coca cola has been awarded Social & Corporate governance award for best
practices in corporate social responsibility in 2009

24. TECHNOLOGICAL
• Production & Distribution cost control and up gradation
• Availability whenever and wherever with affordable price. (ex.
vending machine)
• Labeling & Packaging ( recyclable bottles, cans, plastic bottles)
• Marketing & promotion programs (internet, TV.)
• New machineries for higher production with minimum costs, top
quality
• Newer & attractive Designs
• Social networking sites
• Supply chain management & improve efficiency
• ex. Sodastream international limited- do-it yourself, beverage
carboration system

25. LEGAL
• Change in laws and regulations may results in change in
costs & capital expenditure
• Company must ready to future changes in laws and ready
to adopt
• Discrimination laws, customer laws, employment laws,
antiturst laws, health & safety laws
• Advertising and labeling laws
• Environmental protection act
• ex. Federal food, drug and cosmetic act, trade commission
act, occupation safety, health act
• Sales, distribution, production all come under different acts
in different countries.

26. ENVIRONMENTAL
• Pollution & global warming issues
• Sales variation with Weather conditions & seasons
• Local, national, world environmental laws
• Waste management
• Recycling- renewable plastics
• ex. Coca cola developed innovative energy managing system that
delivers energy savings of up to 35%

27. S.W.O.T Analysis
Strengths
Opportunities
Weakness
Threats

28. S.W.O.T - Strengths
• First mover advantage.
• Dominator of fountain market with
65 % of market Share
• More loyal customer base.
• Large market share of 44.1%.
• International Brand recognition.
• Huge distribution network.
• Strategic move during world wars.
• Efficient diverse global operations
• Guerrilla Marketing
strategies.
• More focus on young
generation.
• International Brand
recognition.
• Huge distribution network.
• Innovative advertising
strategies.
• More flexible franchise
network.

29. S.W.O.T - Weaknesses
• Moving away from core
competencies.
• Brand Failures
• Product Recalls
• Smaller market than Coke.
• Slower take off in
international markets.
• Imitation of Coca-Cola.

30. S.W.O.T - opportunities
• Entry into new developing
international markets.
• Introduction of newer
brands.
• Innovative advertising
strategies.
• Introduction of “Pepsi Health
Drink”.
• Entry new developing
international markets.
• Introduction of newer brands.

31. S.W.O.T - Threats
• Fear of losing market share due to rapid market fluctuations.
• Barriers of entry in international markets.
• Decreasing brand loyalty among consumers.
• New age beverages.
• Fierce competitors in local markets; Private labels at low prices.

32. 4Ps Analysis
32
PRODUCT
• Carbonated soft drinks
• Non-carbonated soft
drinks
PRICE
• Pepsi value proposition
• Coke the “premium”
brand
PROMOTION
• Investment in
Trademarks
• Retail Shelf Space
• Ad Campaigns
PLACE
• Retail channels
• Fountain Outlets
• Vending Machines
• Mass merchandise

33. Case Information
 Cola Wars
 Coca Cola:
 Advertised: "Family-friendly"
"Cute-characters"
 July 11, 1985: Original "Classic" Coke
 Pepsi:
 Advertised: Popular Spokesperson
 1975: Pepsi Challenge
 1981: Pepsi Challenge Payoff
 1990:Drink Peps, Get Stuff
 1996:Success in Summer Olympics

34.  In Space:
 In 1985: Coke launched in Space
 Space Shutller Challenge
 Cyber-war:
 Concluded Cola war
 Coke Rewards
 Pepsi Partnership with Amazon

35. PEPSI AND COKE PESTICIDE
CONTROVERSY 2003-2006
• Environment group claimed high level of pesticide.
• On August 5, 2003 issued news.
• Caused diseases.
• Gujarat and MP also banned the sale of Pepsi and Coke.
• Sale dropped 30-40%
• Soon both Pepsi and coke published news about pesticide
level.

39. Different marketing strategies 2003
Strategies adopted by coke
New brand development strategy stressed on 3ps
• Price value
• Preference
• Pervasive penetration

40. • Internet (social networking)
• Public relations and publicity campaign
• Corporate logo and outreach
• New media

41. • Coke (re)lives it up with Aamir
• New advertising strategy- included newspapers ads, “safety guranteed”
stickers,public tours of coke plants and “a television advertising
campaign by Aamir khan.

42. Marketing Strategies of Pepsi
• Aggressive Advertising strategy
• Pricing strategies
• PR campaign, spot ads, prints
• Social media use

43. CURRENT FACTS
• Coke controls 42% of the total carbonated soft drink market, compared with Pepsi's 30%,
according to Beverage Digest.
• In 2016, Coke products could be found in over 200 countries worldwide, with consumers
downing more than 1.8 billion company beverage servings each day.
• PepsiCo's brands generated retail sales of more than $1 billion apiece, and the company's
products were distributed across more than 200 countries.
• Due to changing tastes and health awareness, substitutes, both csd brands have been in
decline. Profitability is also decreasing with stagnating growth.
• Soda remains 75% of Coca-Cola's global sales.
• Pepsi's snack division makes up about 50% of the company's sales volume.
• Soda is just 25% of the Pepsi’s India's sales compared to 60% of Coca Cola's.

44. • Coca-Cola and PepsiCo together dominate the market for carbonated soft drinks
in India. Coke accounted for 60% of retail value sales of carbonated soft drinks in
India in 2016 versus PepsiCo's 37%, according to data from Euromonitor
International.
• PepsiCo and Coca-Cola have amassed enormous product portfolios that are
loaded with popular brands.
• PepsiCo has 22 'billion-dollar brands', which are brands that collect at least $1
billion in retail sales each year.
• For its part, Coca-Cola has 20 brands that generate $1 billion or more in annual
sales.
• The difference between the two companies is that Coca-Cola's portfolio is 100%
comprised of beverages.

45. • Coca-Cola has struck a deal to be the ‘national beverage partner’ of Carl’s Jr,
after vying with Pepsi for about a year to bag the contract.
• The Carl’s Jr deal puts Coca-Cola a notch above Pepsi with three contracts
(Wendy’s, Fatburger, Carls Jr). Pepsi has bagged the the other two (Burger King
and Johnny Rockets).
• Pepsi also serves players, including KFC, Pizza Hut, Taco Bell, Papa Johns,
Costa Coffee, whereas Coke is the official beverage partner of Mcdonalds,
Subway, Dominoes and Hard Rock Café.
• Pepsi is also partners with PVR Cinemas, Air Asia and Delhi International
Airport Ltd

46. Reference
• http://brandongaille.com/coca-cola-vs-pepsi-statistics/
• https://www.statista.com/statistics/264423/revenue-and-financial-results-of-coca-
cola/
• https://www.coca-colaindia.com/our-products/product-list-descriptions/
• http://scoophub.in/top-10-most-popular-soft-drink-brands-in-india/
• https://www.statista.com/statistics/273063/leading-15-most-valuable-global-soft-
drink-brands-based-on-brand-value/