Marketing Management

CIA-3

Essay On Coca-Cola vs. Pepsi

Submitted To

Prof. Vedha Balaji

Submitted By

Puneet Bansal
1728119
2MBA - N

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 Coke vs. Pepsi
Introduction

 About the Industry

The beverage industry refers to the industry that makes ready to drink beverages.
There are several brands that offer beverages from around the world. There are some brands
that sell their beverages only for local or national consumption. On the other hand, there are
some companies that produce beverages that are sold around the world. Some of these brands
have been competing with each other for more than a decade and we are going to venture into
one of the biggest rivalries between two brands from the beverage industry. Some of the top
brands in the Beverages/Ready to drink industry are

 The Coca Cola Company

 Nestle

 PepsiCo

We are going to focus on the rivalry between Pepsi and Coke and see how it has been shaping
up over the years.

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  About the Product

Coca-Cola

Coca-Cola, or Coke, is a carbonated soft drink produced by The Coca-Cola Company.

It was first intended for medicinal use. It was invented before the 20th century by John
Pemberton and was bought out by businessman Asa Griggs Candler, who used various
marketing tactics that led Coca-Cola to its dominance of the world soft-drink market
throughout the 20th century. It got its name from two of its original ingredients, which
were kola nuts (a source of caffeine) and coca leaves. The current formula for creating the
syrup of Coca-Cola remains a trade secret, even though a variety of reported recipes and
experimental recreations have been published.

The Coca-Cola Company produces concentrate, which is then sold to licensed Coca-
Cola distributors around the world. The sellers and distributors, who have contracts with the
company, produce the finished product in cans and bottles from the concentrate, in
combination with filtered water and sweeteners. A normal 350 ml can has 38 grams of sugar
(usually in the form of high fructose corn syrup). The distributors then sell, distribute, and
merchandise Coca-Cola to retail stores, restaurants, and vending machines throughout the
world.

The Coca-Cola Company also has other cola drinks under the Coke name. Some of
them are Diet Coke, Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola
Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special versions with lemon, lime, and
coffee.

Pepsi
Pepsi is a carbonated soft drink produced and manufactured by PepsiCo. It was
initially created and developed in 1893 and sold as Brad's Drink, it was renamed as Pepsi-
Cola on August 28, 1898, and then as Pepsi in 1961. The drink Pepsi was first introduced as
"Brad's Drink"] in New Bern, North Carolina, United States, in 1893 by Caleb Bradham.
Bradham made it at his drugstore where the drink was sold. It was renamed Pepsi Cola in

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1898 after the root of the word "dyspepsia" and the kola nuts used in the recipe. The original
recipe also included sugar and vanilla. Bradham wanted to create a beverage that was
appealing and would aid in digestion and boost energy.

Pepsi vs. Coke

 Primary Data

On a survey conducted with the sample population being college going students, the
following data has been obtained. It can be seen that Coca-Cola is preferred over Pepsi in this
survey. Next is to find out what the reasons are which made people choose Coke over Pepsi.

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 The reason for Coke’s dominance over Pepsi is primarily due to its better taste.
Certain people were of the opinion that Pepsi is comparatively sweeter which is less
preferred by some people. Other significant reasons for Coca-Cola’s success are that they had
better advertisements which catered to the masses. The public opinion also played a huge role
in deciding what brand of drink one would drink.

 Secondary Data
There are two well-known drinks manufacturing organizations, Coco-Cola and Pepsi,
which have contended significantly and disseminated the refreshment advertisements benefit
for a very long while. In the free market, it is difficult to precisely tell which one is the leader
inside the ideal rivalry, in light of the fact that the two organizations utilize diverse style of
advertisements and item to improve their profits. I trust that Coco-Cola gains higher profits
than Pepsi since Coco-Cola has better marketing techniques and TV advertisements cost is
lower. I would drink Coke over Pepsi. Since Coke has reasonable showcasing technique that
pulls in all age of individuals, while Pepsi targets generally more youthful age, and tries to
make a picture of Coke as an uncool drink, and Coke has made more individuals to value its
esteem and item than Pepsi. Along these lines, we should drink Coke that knows how to
value all crowds of any age, paying little respect to their age.

But which one tastes better? It is intriguing to know that Pepsi won those taste test. So,
have coke. By what means would this be? Coke tastes superior to Pepsi, also Pepsi tastes

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superior to coke. What will be the distinction between coke and Pepsi then? If we analyse the
two cans, the only difference will be that Pepsi includes phosphoric corrosive.

For some people, the taste of coke and Pepsi are the same. However, there are people
who argue that Pepsi tastes sweeter and has bubbles in it; therefore, Pepsi wins with the
consumers, particularly young consumers. However, this may be not accurate. The young
generation change their preferences more compared to the old generation, if a company uses
young generation to determine most parts profit they gain from them, which is not going to
make those profit very stable Thus, Pepsi co. might lose customers over the long run, in
contrast to Coco-Cola co, which would be more stable. This situation would benefit for the
Coke so that Coco-Cola will earn more profit and outlast in beverage market.

 Conclusion
Thus, we can see how Pepsi and Coke have been competing with each other to
become the Market Leader but Coca-Cola has always been one step ahead in terms of
understanding the marketing strategies that catches the customers eye and targeting the
masses regardless of their age. From our primary data we can see that even now people prefer
Coke over Pepsi primarily due to its better taste.

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