Case Study :

Soft Drinks
COCA-COLA VS PEPSI
HALDEBIQUE Geoffroy ROYER Johan
What do you know about
Coca-Cola and Pepsi ?
• Coca-Cola, or Pepsi ?
Which one has the biggest ?
• PepsiCo has the highest revenue, with 65,5 billon
dollars a year (48 for The Coca-Cola Company).

• The Coca-Cola Company has the largest net

income, with 6,7 billion dollars (vs 6,55 billion dollars).

• Both are losing to Nestlé, dominating the food

industry with a revenue of over 90 billion dollars and
a net income over 10 billion dollars.
 Concerning soft drinks
• The Coca-Cola Company only produces soft drinks
and alcohol.
• PepsiCo also sells crisps (Lay’s and Benenuts).

• The product Coca-Cola and its derivatives

represent 80% of the company’s revenue.

• Coca-Cola is still way ahead Pepsi-Cola in terms of

market share.
 Advertising campaings

• Coca-Cola’s ads aim at increasing

brand awareness…
• http://www.youtube.com/watch?v=iX2xS9vPQ-Y#t=0m14s/

• Whereas Pepsi’s ads target Coca-Cola

specifically !
• http://www.youtube.com/watch?v=LVyzUe_U0Jg#t=2m41
 The Coca-Cola Company :
SWOT Analysis
Strengths Weaknesses
Very strong brand image Numerous brand failures (dogs)

Already existing market share Negative publicity

Value of the company Undiversified activities

Distribution channels High debt

 The Coca-Cola Company :
SWOT Analysis
Opportunities Threats
Bottled water consumption is Health awareness
increasing
Growing consumption and Water scarcity & cost
opportunities in BRIC
Growth of the company through Hard competition from PepsiCo
acquisitions in BRIC
 PepsiCo : SWOT Analysis

Strengths Weaknesses
Huge product diversity Low pricing

Successful mergers and Weak brand awareness

acquisitions of products compared to Coca-Cola
Successful marketing campaigns Low net profit margin (9,7%
compared to 18,55%)
 PepsiCo : SWOT Analysis

Opportunities Threats
Bottled water consumption is Health awareness
increasing
Growing market in BRIC Decreasing gross profit margin

Snacks consumption is Strong dollar

increasing too
 Coca-Cola Versus PepsiCo :
The 4 P’s
• PRODUCTS :

• The Coca-Cola recipe

• Most of the products are soft drinks
o There are a lot of innovations…
o But most of products are brought in the market just for the sake of
competition

• Coca-Cola has more products than PepsiCo

(considering soft drinks only)
 Coca-Cola Versus PepsiCo :
The 4 P’s
• PRICE :

• Coca-Cola was ruling the market before

PepsiCo’s arrival
• Now both companies are adjusting their
prices on the basis of competition
• Pepsi is renowed to bring the price down to
half, although they have a decent margin
 Coca-Cola Versus PepsiCo :
The 4 P’s
• PLACE :
• The whole world, for both of them (visible on the
Coca-Cola Company website or with PepsiCo’s ads

• PROMOTION :
• Blind taste test film
• More ads on Pepsi-Cola than Coca-Cola, but
Coca-Cola has a lot more programs (Sprite, etc.)
• Both are featuring celebrities in their ads
 E-commerce objective
and challenge
• Pepsi-Cola and Coca-Cola are already famous and
a have lot of consumers.
• In a BCG Matrix they would be…
 Website presentation
• Let’s check Pepsi’s Website !
• http://www.pepsi.com/en-us/d

• Very thumbs friendly

• Pop music topics
• Geolocation
• Consumer generated
 Social networks
• Here are some figures :

• Coca-Cola has several Twitter accounts

• More than 2,32 million followers on the main
account !
 On Youtube
COCA-COLA PEPSI
223k subscribers 689k subscribers
237M views 162M views
Several videos a day Several videos a week
 The Super Bowl 2014
• A Polemic around a single ad
o http://www.youtube.com/watch?v=443Vy3I0gJs

• Extremely strong reactions to this ad

 The Super Bowl 2014

• What do YOU think about this ad ?

• What impact do you think it will

have on Coca-Cola ?
THANK YOU VERY
MUCH FOR YOUR
ATTENTION !
ANY QUESTIONS ?