The PepsiCo group distributes products of different brands in 192 countries, including Pepsi, which is the primary brand of the group. The core business of Pepsi Co is the manufacture and distribution of soft drinks.
Thus, the Pepsi brand ranks the second in the world in soft drinks, behind Coca-Cola. In the United States, Pepsi and Coca-Cola share the soft drinks sector. The group has also diversified its activities: in fast food (Pizza Hut, KFC, Taco Bell) and in snack foods (Frito-Lay and PepsiCo Foods International), where it has established itself as the world leader.
Until 1992, Pepsi Perrier franchise was bought by Nestlé, who made his mark Pepsi Co. In 1993, PepsiCo France was created in order to regain control of the brand Pepsi in France. Closely with the sales managers of PepsiCo France, Orangina company manages the bottling of Pepsi, and the supply and distribution of soft drinks in the circuit outside the home (hotels, bars, restaurants).
In the market Pepsi Co the product is a position follower. Known for its innovation the company is repositioning itself under Project Blue' with a new slogan and a new logo. There is an expanion in the product line with the launch of Pepsi Max and Pepsi Cool. The brand always adapts itself to the specific location it is in.
In terms of communication:the brands marketing is termed as offensive, aggressive and dynamic ("flashy"). Advertising campaigns are very important and the target group is aged between 15 years to 25 years. The Pepsi Max targets the more masculine and has an iconic partnership with Star Wars.
Pepsi's distribution system is undergoing restructuring internationally especially with the sales of soft drinks abroad. The company is refocusing on emerging markets. The company also has contracts with other brands like Lipton and Orangina.
Coca-Cola is the leader in the market, with innovative strategies in marketing and branding. The packaging of the coco cola bottle evokes or rather is shaped like a woman's body. The brand has a wide range of products like the Coke Classic, Sprite and Fanta. Coco Cola is a popular drink globally.
Coco Cola's communication in marketing is also like its competitor aggressive. The product is advertised globally on television and is usually modern, and universal. The display follows the evolution of morality. The brand has no speciifc target group and is available for consumers of all ages.
The Coco Cola brand is also famous for its sponsorship and patronage of the Olympics, Tour de France, World Cup Football, Davis Cup etc. The product is positioned as modern, democratic and practical. The product is distributed globally to refrigerant distributors and for home consumption.
Even if the group PepsiCo is world number two in the soft drinks segment, behind Coca-Cola, it has nevertheless a very important place in this market. Pepsi Co is, however, leading in many countries around the world (especially in the Middle East) and in turn share with Coca-Cola, the market leader in the U.S. market.
Moreover, the strategy of focusing, discussed in the case, was actually implemented by the U.S. group. In 1998, Pepsi was then split into two independent entities: first, the soft drinks and snacks,on the other hand, fast food. The brand is concentrating on strengthening its leading position on the steps of snacks, chips and juice, and the challenger in the market for carbonated soft drinks.
Tags: Pepsi Cola versus Coco Cola, comparison, marketing distribution
[...] impose itself on the international level concentration in the market for soft drinks internationalization strategy: abroad of sales and over 80% of its profits market share of 42% in the U.S. Branding: a symbol of freedom investments in Russia and the former Soviet Republics acquisition of the main Pepsi bottler in Venezuela: 45% local market soft drinks proposed acquisition of Orangina: of the French market for soft drinks Coca: 46% of the French market for soft drinks (Fanta, Sprite) Coca: worldwide reputation, seniority, authenticity No "flashy" marketing campaign Coca experiments with the products image trying to keep it unique yet modern posters: changing lifestyles jingles (celebrities: Elvis Presley, Cary Grant, Cklark Gable, Ray Charles) TV: a single message for the entire planet Sponsorship and patronage: Ambassador of the American way of life, sport (Olympics, World Cup soccer and rugby, Tour de France, Davis Cup, World Championships in Athletics) DVPT of home consumption and refrigerant distributor global advertising, universal and modern implantation in small countries: Vietnam, Albania an aggressive marketing campaign and aggressive marketing very pronounced strategy: new products, new packaging, promotion and publicity DVPT of brand differentiation for Coca improved packaging consumers: all ages Feedbacks from consumers Strategies: Pepsi Co Diversification in food (snacks and meals) ? [...]
[...] C. The consequences of this strategy - This refocusing will benefit shareholders, of which the addition will be higher during the current title. - The two future companies will have its own logic of development. - A possible sale of the branch restaurant (possibility of takeover). - Expanding the customer out of Pepsi Co. Conclusion Even if PepsiCo group is ranked number two with respect to soft drinks it has nevertheless achieved a very important place in this market. Pepsi Co is, however, leading in many countries around the world (especially in the Middle East) and in turn has shares with Coca-Cola, which is the leader in the U.S. [...]
[...] There are significant relations between the two parties: Orangina is responsible for the distribution of Pepsi products on the French market for soft drinks, and more specifically on the segment of the "out of home." But these relations have never been very good: the Pernod-Ricard group is not at all satisfied with the management of the company by Pepsi Co. Following the proposal of Morgan Stanley to buy Orangina, Pepsi Co has six months to give its proposal (one week against Coca-Cola) and the amounts proposed by Pepsi Co never exceeded 3 billion francs and this showed a lack of interest on the part of Pepsi Co for Orangina. [...]
[...] snack + food + drink Strategies for Coca-Cola Market leader in soft drinks Two imperatives: the return on investment and the share price of the company ? the most important criterion: benefits a comprehensive study acquisition of smaller bottlers in trouble and their integration into the existing network of Coca sale to the public stake in Coca-Cola Enterprises (CCE) ? end of debt and storage activities (unprofitable) CEC: key element in the strategy to win market shares core business: brand builder, broker in shares of large corporations, sales of concentrated products from Coca-Cola 80% of the market growth in the U.S. [...]
[...] Coca-Cola recognized the value of Orangina and offered its acquisition for a very significant amount of 5 billion francs (real value of the company would be more than 1.5 billion francs). - The acquisition would strengthen the dominant position of Coca- Cola in the market for carbonated soft drinks market share) and allow it to benefit from the distribution of Orangina to accelerate the sale of its products in France. - This would allow Coca-Cola to get hold on new products, and it would be a good potential for distribution outside France. [...]
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