Running head: INTERNATIONAL MARKETING

International Marketing Strategies: Coca-Cola vs. Pepsi Steven T. Vogel University of North Florida

Running head: INTERNATIONAL MARKETING International Marketing Strategies: Coca-Cola vs. Pepsi Coca-Cola and PepsiCo are the two largest soft drink manufacturers and both companies have a large international presence. When a company has operations in a different country they must modify their marketing strategies to align with various cultural standards. The websites of many companies offer insight as to how a company adapts to the local culture. It is

commonplace to see companies change their slogan, color scheme, logo, and product offerings to fit local tastes. In fact many of these changes are necessary when a company establishes itself in a foreign market. To be a successful company in a foreign market you must adapt to that regions culture and customs. The Coca-Cola Company is a well-established competitor in the international market place. Currently they market over 500 products in over 200 different countries. With such a large international presence, Coca-Cola must adapt to the various local cultures and tastes. To see how Coca-Cola adapts to various cultures the websites for Coca-Cola in the United States, Mexico, and Japan have been selected for analysis. The United States website uses a red and white color scheme and the front page advertises their polar bear habitat protection campaign as well as a smartphone application titled scvngr. Their slogan in the United States is Open Happiness. In contrast, Coca-Colas Mexican website showcases a completely different advertisement campaign called Destapa un superhro which translates to Uncover a superhero. The Mexican website also advertises two products called Coca-Cola TV and CocaCola FM, both products are absent from the United States website. The companys Mexican slogan is destapa la felicidad which translates to open happiness, the same slogan that is used in the United States. Coca-Colas Japanese website is similar to both the United States and Mexican websites in regards to the color scheme and the logo. The Japanese website, however,

Running head: INTERNATIONAL MARKETING advertises an organization called the Happy Teens Club, they also advertise a campaign called the London Challenge due to the 2012 summer Olympics in London, and they also advertise a campaign called Move. The front has an advertisement for Coca-Cola zero and another product called a Happy Meal. Coca-Cola, like many companies who have an international presence, changes their product offering to suit local tastes. The companys Japanese slogan is Happy Contents. It is important for any international company to offer a wide variety of brands so that

they can adapt to the plethora of regional and ethnic tastes. The following table shows just a few of the differences in product offerings. Coca-Cola Product Offerings United States Coca-Cola Dasani Water Powerade Mello Yello Monster Energy Mexico Coca-Cola Coca-Cola Light Beat (citrus soft drink) Yoli (lemon-lime soda) Ciel (water) Japan Coca-Cola I Lohas (water) Aquarius (sports drink) Georgia (canned coffee) Aya Taka (green tea)

It can be noted from the table above that for each country Coca-Cola offers a wide variety of products to each of its local markets. Despite the differences in product offerings many of the companys flagship products such as Coca-Cola, Diet Coke, Sprite, and Fanta are offered in all countries where Coca-Cola has operations. Coca-Cola is a successful company because it adapts its product offerings, advertisement campaigns, and slogans to various regional cultures. However, despite the fact that they vary some aspects of the company across borders, the fact

Running head: INTERNATIONAL MARKETING that they stay consistent other aspects of their company is a trait that makes Coca-Cola a successful international company. PepsiCo the manufacturer of Pepsi is also a well-established competitor in the international market place. Currently they market over 22 product lines in over 200 different countries. With such a large multi-national presence, PepsiCo must adapt to the various local

cultures and tastes. To see how PepsiCo adapts to various regions and ethnicities the websites for PepsiCo in the United States, Mexico, and Japan have been selected for analysis. The United States website uses a dark blue and light blue color scheme and the front page advertises their products, various accessories, apparel, an internet video titled Kings Court, Their slogan in the United States is every Pepsi refreshes the world. In contrast PepsiCos Mexican website showcases a completely different advertisement campaign called Lluvia de pelotas which translates to the rather humorous phrase of Rain of balls. The Mexican website also advertises a product called Pepsi Kick, a product which is absent from the United States website. The companys slogan oddly enough is absent from the Mexican Website. The Japanese website, however, has a black color scheme compared to the dark blue and light blue color scheme found on the United States and Mexican websites. The front page has an advertisement for Pepsi Nex zero. Also featured on the front page is advertisement campaign for Japans space program as well as a campaign for the film Star Wars in 3D. Similar to the Mexican website, the Japanese website also lacks a clear slogan. PepsiCo, like many companies who have an international presence changes their product offering to suit local tastes. It is important for any international company to offer a wide variety of brands so that they can adapt to the plethora of regional and ethnic tastes. The following table shows just a few of the differences in product offerings.

Running head: INTERNATIONAL MARKETING PepsiCo Product Offerings United States Pepsi Pepsi Max Gatorade Mountain Dew Amp Energy Mexico Pepsi Pepsi Kick Pepsi Light Japan Pepsi Pepsi Nex Pepsi Twist Mountain Dew Grape 7-up Clear Dry

It can be noted from the table above that for each country PepsiCo offers a wide variety of products to each of its local markets. Despite the differences in product offerings many of the companys flagship products such as Pepsi, Diet Pepsi, Pepsi Max, and Mountain Dew are offered in all countries where PepsiCo has operations. PepsiCo is a successful company because it adapts its product offerings, advertisement campaigns, and slogans to various regional cultures. However, despite the fact that they vary some aspects of the company across borders, the fact that they stay consistent in other aspects of their company is what makes PepsiCo a successful international company. When Coca-Cola and PepsiCo adapt themselves to various international markets it can be clearly seen that for a company to be successful in the global market they must offer a wide variety of products, fit their marketing campaigns and slogans to the appropriate market and they must be open various cultures and customs. However, consistency across borders is also a necessity if a company desires to be a success internationally as well as domestically.

Running head: INTERNATIONAL MARKETING References Cavusgil, S. T., Deligonul, S., & Yaprak, A. (2005). International marketing as a field of study: A critical assessment of earlier development and a look forward. Journal of International Marketing, 13(4), 1-27. doi:10.1509/jimk.2005.13.4.1

Engelen, A., & Brettel, M. (2011). A cross-cultural perspective of marketing departments' influence tactics. Journal of International Marketing, 19(2), 73-94. doi:10.1509/jimk.19.2.73

Javalgi, R. (. G., Granot, E., & Brashear Alejandro, T. G. (2011). Qualitative methods in international sales research: Cross-cultural considerations. Journal of Personal Selling & Sales Management, 31(2), 157-170.