Introduction
In a high margin food and beverages industry, there will always be existed intense competition for consumer preference. Coca Cola vs. Pepsi both have seen competing in the battleground fighting to be on top in consumer preference list using myriads of tactics and strategies including product innovation, coupons, celebrity endorsements etc. Most recently Coca Cola stock price is increased by about 24% in the past 3 years. On the other side, PepsiCo stock has shown much better performance at 37% during the same period also shows much volatility in overall revenue (Trefis.2017). Undoubtedly Coca Cola revenue is reflecting much captivating growth in these years, but when it is compared with PepsiCo, PepsiCo revenue is almost got doubled in FY2019. Since 2016-2019 when PepsiCo income is increasing steadily, Coca Cola revenues have declined due to operational franchising where some income is only accounted for from refranchising done. As competition in food and beverages intensifying at a huge rate, both companies are in good tune in capitalizing on the changes that occur in consumer preference. The brand analysis in this article lets us understand demographic and geographic metrics, emotional intendment, and level of trust. This report put forward a comparison chart of acquisition data collected from previous years in order to summarize the architecture pyramids of PepsiCo and Coca-cola.
Literature Review
The Global Carbonated Drink Industry was valued at 406.89 billion in 2019 and expected to grow at CAGR 5.1% amid 2020-2027 (Grandview research, 2021). The strong popularity of carbonated drinks first came to light when Coca Cola case study owns a portfolio of more than 3500 products expanded its operation in 200 countries. The buyers prefer carbonated drink as it offers to cool, have an acidic bite often produces a pleasant tingling. Along with it, carbonated drinks composed of fruit favour that promotes acceptance of these products even more.
The battle between PepsiCo and Coca Cola didn’t go slow in any way. By choosing the formula of the new beverage, product quality is improved that is typically based on sensory characteristics.
Brand Comparison PepsiCo and Coca Cola
As per the assignment help experts the growth of the food and beverage industry especially alcoholic and non-alcoholic beverages has been almost doubled since 2018. Coca Cola administered fully into the beverages ranging from fruits drinks, carbonated drinks to coffee etc. PepsiCo has a much more diversified business and almost half of the company revenues are generated from snacks and food products. When considering consumer favorability, Coca Cola has shown decent results while PepsiCo Favorability was a bit higher. Pepsi was the single brand in 2013 saw the highest volatility approximate 89% as a result of being associated with rapper Lil’ Wayne released a song with inflammatory lyrics, the however sudden murder of the rapper forced Pepsi to cut the ties in 2013(Infegy.com. 2013).
From May 2013 to March 2020, the Marketing War Between Coca Cola And Pepsi leading escalation of Pepsi favorability that was related to high profile sponsored events including the super bowl half show and the most popular being Pepsi Max.
Pepsi Co
Mission Statement
Providing consumers around the world with the most affordable, delicious convenience and complimentary food and beverages right from the wholesome breakfast to healthy day and fun time snack, We committed to invest in our communities, company, and in our people where we help the company to top the position and attain sustainable growth.
Vision
At PepsiCo, we are aiming to provide top-tier financial performance in a long term integrating with sustainability to our business leaving a positive impact on the environment and society. We call this act with the purpose to know health effect of drink.
PepsiCo Core Values
- Spell those produce making us proud
- Speaking truth with honesty
- Care for our consumers
- Win and supporting diversity with inclusion
- Balancing short and long term risks
- Respect and succeed together
Coca Cola
Mission Statement
Our success starts with an enduring road map. As a purpose, our company meant to serve standard against we weight action and performance to refresh the world, to inspire optimism and happiness thus creating values making differences
Vision
Our vision works as a roadmap guided purpose to our business by describing what needed to be accomplished to achieve sustainable growth-
- People– Be a great place work and employee inspired to be the best to work upon
- Portfolio– Bringing a world to a wide range of beverages portfolio
- Partners– nurturing a winning network for both consumers and suppliers
- Planet– Helping to build a sustainable work culture and protecting the environment
- Productivity– Being highly productive and lean towards the organizational development
Core Values
Company core values hand around our action about how we behave in the world- Our core values represented as-
- Leadership– Having the courage to shape the world
- Collaboration– Leveraging genius
- Integrity– Be real
- Accountability, If it is because of us, It will be on us
- Passion– Committed to mind and heart
- Diversity– Inclusive in our brands
- Quality– Every time we do, we always do well
Demographically Preferences of Coca Cola and Pepsi Co
In the U.S genders for the Coca was entirely expanded and distributed. Over the women, men show clear biases among these brands with 54% to 46%. Higher men were shown their interest in Pepsi because it is nexus with the sports, however, when conversation volume was removed, men still be on the same spot with 52:48 (Panigrahi, 2020).
In a study conducted by case study help, it was discovered Coca Cola consumers tend to belong to lower-income households than its counterpart Pepsi. As such Coca Cola preferred to be more among those having higher disposable income. For any either brand, higher education impact on the product was not having a single impact on consumer choices.
But on a global level, it has been noted down Coca Cola preference was the highest with 71% of the discussion attribute to Coca success whereas 24 % moved to Pepsi. Besides, that man was found to verbose about Pepsi and Coca Cola than women (Gandhi, 2014). Yet there are many countries like Russia, China, Japan, Malaysia, Singapore, Middle East Countries, India where conversations were likely driven by women. The gender participation in choosing Coca over Pepsi Co or vice versa, Pepsi had a great gender variance globally especially in the areas of Africa and the Middle East. To know about Pepsi growth in either South Africa or Middle East countries for your tuition assignment, take instant assignment help from SourceEssay.
PepsiCo or Coca Cola? How Do Core Business Compare
In today’s times, both Coca Cola and PepsiCo have found to competing with each other in every single stance. But what can be the key mixes of these two companies? Coca- Cola always remains in the sphere of carbonated beverage, whereas PepsiCo converted its business operation with increased demand. Since after Covid 19 people have become more diet conscious, they start moving away from the carbonated drinks shows Coca Cola feel much brunt from this changes more likely to be Pepsi Food and snack products. Sooner Coca Cola moved from franchising its plants- a strategy where revenues might be fall but the profits accounts will higher (Paracha, 2013). Similarly, Pepsi Co moved to Soda Stream to increase its revenue stream. In the middle term of 2019, it is expected Coca Cola will sooner reduce the revenue gap but the current crisis has taken the toll on the company by lowering the demand and supply bottlenecks.
In 2019, PepsiCo has retained its position of second most preferable and highly consumer foods and beverage product-driven company following a 7% increase in total brand value having worth US$58.9 billion. On the other side, American giant Coca Cola retained its position in the form of the world’s most consumed soft drinks after recording a 19% increase in total brand value with US$36.2 billion, as per the report of Brand Finance.
In the United States, among coca cola vs pepsi, Coca Cola ranked as the strongest beverage scored 91.7 out of 100 as a brand strength index. Brand finance- A London based brand Valuation Company praised both PepsiCo and Coca Cola for their marketing decision on National Football League’s Super Bowl on Feb. 7. The move shows each brand will have a presence around the world but without the pressure of paying an exacerbating amount to enter in National football league. Company executives also said the decision made was quite clear brought to save money connecting sports with carbonated drinks.
Consumer Preferences- Coca Cola and Pepsi
The tale of Coca Cola was first geared by John Stith Pemberton in 1886, at first drinks was sold at Atlantia, Georgia. The company product consists of canned and bottled beverages The variety of products has been introduced are coke, caffeine-free Coca Cola, Coca Cola Diet, Surge, Coca Cola Classic, Cherry coke, Caffeine Cherry Coke, Barq’sroot beer & other flavours, Fanta & soft drinks, Sprite, diet Sprite, Mr PiBB, MelloYellow, TAB, Fresca, PowerAde, Saryusaisai, Aquarius, Fruitopia, Minute Maid flavours, etc developed for different countries (Islam and Fatema, 2014). Similarly, As per do my assignment experts the tale of Pepsi was shaped in the late 19th by Frito- lay and Caleb Bradham in 1960 joined by the Frito company.
Today, the consumer market amounted to 6 billion people and there is a great demand for vast goods and services notable in the distinct marketing sphere. Moreover, the relationship between the consumers and their contact with the world affects the choices of products being sold. The reason what consumers will buy is rooted in their mind like either they are attracted towards the huge usability of the products or service matches their standard.
Consumer preferences are affected by innumerable factors on which marketers don’t have any control. Cultural, social, personal, psychological and buyers are a set of factors quite predicts what consumer will buy.
An advertisement informs the consumer about the existence of the products and services and their benefits. Both Pepsi vs Coca Cola market share have been approaching the market in a different way. A primary motivation of both these companies is to standardize advertising campaigns in order to create a homogenous image of the firm. Sports sponsorship is the most common advertisement tactic utilized by both the firms emanates a very strong image since sports generate fanship, that would be more intense, more obtrusive, more enduring in a form of social entertainment.
As per the assignment maker, the Sponsor of Coca Cola and Pepsi during the Olympics have caught much attention. Coca Cola advertisement was initiated when consumers start reminisce its slogans thereby commercial took place into our lives. Although the majority of the Coca Cola slogans have been repeatedly seeing on posters, some consumer prefers Pepsi over Coca Cola.
Does Taste Matter? Pepsi Vs Coca Cola
The world’s beverage industry is subjected to mainly two players, PepsiCo and Coca Cola. But to make choices among these two brands, the brain computes the chemical identical unbranded analgesics. According to the research conducted by Gallinet and Kuhn, 2013 when they focus on the brain region showing brand effect, they have found more activity in the left ventral striatum cuing for strong brand compared with a weak brand. Within the same study, it was investigated the influence of Coca Cola cues on the neural correlates of gustatory processing, however, the self-reported pleasing rating for both Pepsi and Coca Cola were the highest compared to weaker brands such as River and T- Cola. The so-called Pepsi Paradox was broken when people exhibit reliable preferences to Coca Cola because brand information is available, but when there is no such information provided to respondents mainly in a blind taste; respondents tend to choose Pepsi over Coca Cola.
Conclusion
To summarize, this report will be first provided with a deeper analysis of Coca and Pepsico and gustatory processing. In this report we have concluded a clear set objective, mission statement demographical values and taste preferences of both brands. This potentially indicates a primary motivation of both these companies is to standardize advertising campaigns in order to create a homogenous image of the firm. Coca always remains in the sphere of carbonated beverage, whereas PepsiCo converted its business operation with increased demand contributing to better outcomes in the end. The contemporary study also revealed PepsiCo and Cola-Cola both represented stronger drink brands but highly depended on the advertisement level.
References
Gandhi, K., 2014. A Study On Brand Personality Of Coca-Cola And Pepsi: A Comparative Analysis İn The Indian Market. International Journal of Conceptions on Management and Social Sciences, 2(2), pp.10-13.
Grand View Research, 2021. Carbonated Soft Drink Market Size, Share & Trends Report
Carbonated Soft Drink Market Size, Share & Trends Analysis Report By Flavor (Cola, Citrus), By Distribution Channel (Hypermarkets, Supermarkets & Mass Merchandisers, Online Stores & D2C), And Segment Forecasts, 2021 – 2021. Available at- https://www.grandviewresearch.com/industry-analysis/carbonated-soft-drinks-market Data Accessed ib 6 September, 2021
Islam, M.M. and Fatema, F., 2014. Comparative analysis of global and domestic brands of soft drinks in Bangladesh. Journal of Business, 35(3).
Infegy.com. 2013. Brand Analysis: Coca-Cola vs Pepsi. Available at- https://content.infegy.com/hubfs/Reports/Brand-Analysis-Coca-Cola-vs-Pepsi_Report-by_Infegy.pdf Data accessed on 6 September, 2021
Trefis.2017. Coca-Cola Or PepsiCo? Available at- https://www.forbes.com/sites/greatspeculations/2020/06/17/coca-cola-or-pepsico/?sh=178519d97cfa Data accessed on 6 September, 2021
Kühn, S. and Gallinat, J., 2013. Does taste matter? How anticipation of cola brands influences gustatory processing in the brain. PLoS One, 8(4), p.e61569.
Paracha, A.M.J., Waqas, M., Khan, A.R. and Ahmad, S., 2012. Consumer Preference Coca Cola versus Pepsi-Cola. Global Journal of Management And Business Research, 12(12).
Panigrahi, V., 2020. An Organisation Study On The Coca-cola Company (Doctoral dissertation, CMR Institute of Technology. Bangalore).