presentation based on SWOT of COKE and PEPSI

2. Presented By:
Anubhav Choudhary
(2013 MGB 1029)

3. • Coca Cola was started in May 8, 1886 by Dr. John
Pemberton.
• First Coca Cola glass was sale for 5 cents in 1886.
• First bottle was sold in 1916.
• Coca-Cola company of Atlanta(USA) is
registered in US since March 27,1944.
• First advertisement published in 1894 in
Georgia.
• Coca Cola was bought by Asa Griggs
Candler(businessman).

4. Strength
•Popularity
•Strong Marketing
•A lot of Finance
•Customer Loyalty
•CSR
•World’s largest share in beverages
Weaknesses
•Health Issues
•Significant focus on carbonated drinks
•Negative publicity
•Many brand failures with insignificant
amount of revenues
Opportunities
•Increasing demand for healthy food and
beverages
•Bottled water consumption growth
•More brand recognition
•Advertise its less popular products
Threats
•Changing health consciousness attitude
•Legal issues
•Changing customer preferences
•Competition (pepsico)
•Saturated carbonated drinks markets

5.  Coca Cola holds worlds largest beverage
market share in the world about 40%
 Coca Cola advertising expenses accounted
more than $3 billion in 2013
 Company serves more than 200 countries and
more than 1.7 billion per day
 Coca Cola is focusing in CSR programs like
recycling, energy conservation, water
stewardship and many others.

6.  Significant focus on selling Coke, Fenta,
Sprite this prove weak as the world is moving
towards healthier food and drinks
 High debt level, interest rates due to acquire
nearly $8 billion of debt
 Negative publicity due to criticized for high
consumption of water scarce regions and
using harmful ingredients.
 Company sells more than 500 brands but few
are results more than $1 billion sales.

7.  Bottled water consumption increasing day by
day
 Increasing demand for healthy food and
beverages
 Consumption of soft drinks still growing in
emerging markets specially BRIC countries.

8.  Changing consumer preferences and usage of
carbonated drinks is decreasing due to health
issues
 Water become scarcer which increases
criticism of Coca Cola Company for usage of
huge amount of water in production
 Competition with Pepsico in BRIC countries
 Saturated carbonated drinks markets which is
threat for Coca cola as carbonated drinks
market is declining in the world

9.  Pepsi company was born in Carolinas in 1898.
 The drink is invented by Caleb Bradham, a
pharmacist in New Bern(North Carolina)
 The Drink is called Brad’s Drink in 1898 and
renamed as Pepsi in 1961
 In 1902 Pepsi cola company is registered to
the U.S. patent office of trademark

10. Strength
•Product Diversity
•CSR
•Competency in mergers
•22 brands earning more than $1 billion per
year
•Complementary product sales
Weaknesses
•Overdependence on Wal-Mart
•Low pricing
•Questionable practices
•Too low net profit margin
Opportunities
•Growing snacks and beverages market
•Increasing demand for healthy food and
beverages
•Bottled water consumption growth
•Snacks consumption growth
Threats
•Changing Consumer taste
•Water scarcity
•Decreasing profit margin
•Strong dollar
•Increased Competition with coca cola

11.  Product diversity due to Pepsi has hundreds
brand including carbonated and non carbonated
drinks and snacks.
 Pepsico served to more than 10 million stores
per week in more than 200 countries
 CSR programs like recycling, water usage
reduction and other projects through Pepsico
foundation
 Successful marketing and advertising campaigns
 Proactive and progressive

12.  Overdependence on Wal-Mart i.e. more than
13% revenues of Pepsi comes from Wal-Mart
 Pepsi usually prices its products lower than its
competitors this reduce quality too
 Pepsi using tap water but places view of
mountains on its water labels for that Pepsi is
criticized
 Coca cola has more brand awareness than Pepsi
 Too low profit margin than coca cola, Pepsico’s
profit margin is 9.7% compared to coca cola’s
18.55%

13.  Pepsico made large investment in BRIC
countries to expand its market share.
 Increasing consumer demand for healthy
food and drinks(juices etc)
 Pepsico has been successful in acquiring
other companies
 Bottled water consumption is expected to
grow both in US and rest of world.

14.  Changes consumer taste reduce consumption of soft
drinks due to increase interest in healthy products.
 Water become scarcer around the world that increase
both cost and criticism for Pepsico. over the use of
large amount of water for production
 Pepsico.’s gross profit margin was decreasing over last
past years and may continue to decrease
 Legal requirements to disclose negative information
on labels.
 Pepsico. earn 50% of income from outside US so due
to strong dollar Pepsico’s income should fall

15. Sales
Carbonate Drink
Non Carbonate Drink
Others
Coca Cola and Pepsi acquire major share in soft drink market and
always remain war to get majority of market share with each
other. In India 61% share of carbonated drink and 36% of non
carbonated drink and 2% of drinks like juices, Coffee etc.

16.  A market segment consist of group of
customers who share similar set of needs and
wants. Rather than creating segment and
deciding about target. Both Coca Cola and
Pepsi follow similar segmentation strategy
for target marketing.
 In mass marketing both the companies follow
mass marketing strategy in this company
target whole market not particular segment
of population.

17. Targeted group of the company is the whole
population they want to earn revenue from a
segment than their other revenue generator
sources. The following are the bases for
segmentation:
 Geographical
 Demographic segmentation

18.  Region: Both companies treat
hot countries like Asia, Middle
East and African. In countries
like India and Pakistan invest
huge and their target was
school, college, restaurants
etc.
 Rural and Urban Market: Coca
Cola spotted the rural market
sector because rural sector is
more conscious about price
so both company introduce
200ml bottle of Rs 5 on 2002
for rural market.
 Age: India is consider as
young country thus target of
both companies is Youth in
India. In Europe average
population is older than coca
cola target older similarly in
USA Pepsi target generation
X(young)
 Gender: As taste of male
female is different so coca
cola promotes thumbs up for
males and fanta for ladies and
children. Same in Pepsi
Mirinda for ladies and
children's.

19. COCA COLA
 Brand Localization
Strategy:Two India’s
 India A: Life ho to aise
 India B: Thanda mtlb
coca cola
 Small bottle scheme
PEPSI
 It was positioned as
new youth cool icon
 Yeh Dil mange more
 Mera number kab
aayega?
 Yeh pyass hai badi
 Youngistan
 Change the Game

20. According to a survey people in Asia are
more inclined to them and feel happy when
some gives them personal recognition. So in
china coca cola starts advertising through
mobile phone. This advertisement strategy
gives the touch of personal feeling. The sales
of coca cola increased through this
advertisement strategy.

21. New advertising method is going in today in
which company does not take direct
sponsorship but do advertisement outside
the main sponsorship area like Cricket world
cup in 1996 in which Coca cola take
sponsorship and Pepsi done advertisement
outside the stadium.

22. Coca Cola has Brand
ambassadors like Sachin
Tendulkar and Salman Khan
Pepsi has Ambassadors like
Priyanka Chopra, Hrithik
Roshan and Ranveer Kapoor

23. o Coca Cola, Thums
Up
o Diet Coke
o Fenta
o Sprite, limca
o Mazza
o Georgia
o Kinley
o Pepsi
o Diet Pepsi
o Mirinda
o 7 up, Mountain
Dew
o Tropicana
o Aquafina
o Lays, Cheetos

24. o Sales and Distribution is
handled by large bottlers.
o 26 bottling plants
o 60 distribution centers
o 20 contract packers
o Over 70000 retail outlets,
serviced via trucks,
tricycles etc
o 300 Million soft drink
consumers
o Pioneer in use of vending
machines.
o Built up distribution
network & bought lot of
bottlers
o Production plants &
bottling centers were
strategically placed all over
in India
o Focusing on the Rural
o 37 Bottling plants including
17 owned plants

25. o Earlier COST BASED
pricing
o The Rs 8 bottle(200ml)
o Coca Cola Tin Rs
25(300ml)
o Coca Cola Rs 75(2L)
o Coca Cola spends more
on advertising than
manufacturing
o Competition based
o The Rs 8(200ml)
o Pepsi Tin Rs
25(300ml)
o Pepsi Rs 75(2L)
o Very Flexible to come
down with the price
very quickly

26. For some it makes no difference, and for some it’s
a matter of life and death. The taste of both Coca-
Cola and Pepsi is differ, it is concluded that
Pepsi is indeed sweeter than Coca-Cola while
Coca-Cola has more carbonation. They
definitely have different recipes. Coca-Cola
gives the fizzy effect as it has a higher percentage
of carbonation. Coca-Cola is preferred by more
serious and mature drinkers, while Pepsi is loved
by youth and fun-loving people.

27. THANK YOU