That research by exact numbers:
Friday, December 7, 2012
Alright, who is the predominant in the social media world? (Coca-Cola vs Pepsi)
We’ve posted a detailed information about the strategy of Pepsi to attract youth people and social media activities for this target. There is a current research about social media effectiveness of Pepsi and Coca-Cola. In despite of market share and selling rates, Pepsi has an hegemony on social media attraction especially with Pepsi's new strategy which has been implemented since 2008. Indeed, "Coca-Cola has by far the higher number of Facebook likes, 51 million to Pepsi's 9 million. But if you look at other numbers, the situation is different and, if anything, Pepsi might be winning in the social media world."
Thursday, December 6, 2012
Logo evaluation: Coca-Cola vs. Pepsi
If you compare the logo evolution of Coca-Cola and Pepsi
cola, you may find there was a big different in the strategy of two companies.
Today, you may find the Coca-Cola logo of is amazingly similar to the logo they
used 130 years ago when the first time it being introduced, and it is the same
as it was in 1900s.
However, we can see there was a panty of changes in the logo
of PepsiCo. They began to use blue color in its logo after 1950s. And they even try
to not include the company name “Pepsi” in the logo in recent year. It is not a surprise because Pepsi continuously focus on
Customer Insight of Coca-Cola
As a marketing analyst might say, even a
big company, such as Coca-Cola, needs to differentiate its products. Coca launched
“Coca light”, and successively introduced “Coca zero” to soft drink
market. They are coming for woman and man respectively, as Coca light seems to
be more diet with lower carbon tax, and Coca zero sounds cool and
extreme simultaneously. However, according to its own marketing survey, the original
favor is still the best hit.
Pepsi, the second share owner of soft drink
market, knows that the golden rule to follow customers, that is, it started the
Pepsi Refresh program to focus on the young group, which boosted to be one of
the most potential customers in this market. Then, let’s change the slide to
Coca Cola, how could it maintain the top place?! Coca Cola knows well about
customers for sure. The image of Coca Cola is cool, and just good to drink. The
advertisements are always catchy and creative, like the animation one with the
polar bear and his friends drinking Coca Cola and dancing. And another, a king
of a trial somewhere faraway, and he gave Coca Cola a try, and then he went
excited and surprised to make some funny moves. They keep conveying the spirit
of cool, nothing but cool.
Nobody would refuse to be one of the cool.
So, they don’t need so-called customized products. They are willing to pay for
a red-and-black drink, just for a cool shot inside and a cool style outside.
Tuesday, December 4, 2012
Customer Insight of Pepsi in spite of Coca-Cola
If you compare Pepsi with Coca-Cola in terms of reaching exact customer, it’s not a false observation that Coca-Cola beats Pepsi. Sales rates and market shares also endorse this observation. PepsiCo, the 2nd biggest soft drink company on the world, have began to create a new strategy in 2008 that the strategy is to attempt to reach youth market. Jill Beraud, who is Pepsi CMO, says in an interview that “Pepsi has, and always will, embody and fuel the spirit and optimism of youth”. For this aim, they have implemented a project named as Pepsi Refresh with a new Pepsi logo. In this project, the brand image has improved by social media connections and they have begun to get involved youth events as a sponsorship. The project website was refresheverything.com. You can check the website to see how they can manage youth events and strategies for youth people on their website. That website is now the official website of Pepsi. It means that the strategy is related with whole brand.
Product Touch Point and Differentiation
Widely-recognized, Coca-Cola and Pepsi are the two most
popular beverage brands in the world. Within the lineup of beverages, their
well-known predominant beverages are Pepsi-Cola and Cola Classic, the carbonated
cola. Over the century, Coke and Pepsi have been at each other's throats in a
constant strive for a bigger piece of the billion-dollar soda market. Although
when compared in double blind taste tests, the majority of people could not
tell the difference in taste, people will swear they love one or the other.
According to Interbrand's annual report, Coca-Cola is a more
valuable brand than Pepsi. The reason is because brand image of Coca Cola is
more deeply-rooted than Pepsi's. Both drinks are no longer seen as a beverage
but primarily as a brand. Both companies oblige greatly to sponsoring outdoor
music festivals and are even charitable
By appealing to pop culture, Pepsi tries to target on the
younger generation. Their website is consisted flashy pages containing pop
music, cars, and fashion. Even though, Coca-Cola's website also has links for
music and sports, two arenas in which soda-pop is often consumed; but due to its
long history as the standard for cola beverages, Coca-Cola's is less flashy and
uses a classical appeal.
While Pepsi had Britney Spears, Keshauntae Brown, Michael
Jackson, and Mariah Carey, Coca-Cola had Christina Aguilera featured in their commercials.
Furthermore, while Pepsi with its younger audience tends to focus only on pop
stars, it was Coca-Cola who is regarded as having one of the greatest TV advertisements
of all time, featuring a far more mature pop band Blondie and the enormous hit
"Atomic", the video played the main chorus of the song to the
backdrop of professional footballers taking part in genuine competitive World
Cup games and the noise a contender for the coveted title of Greatest
Commercial of All Time in many nations.
Over the past several years, the brand at the top of the
list of Interbrand's annual report has been Coca-Cola. That's not surprising,
given the amount of effort and money the company put into creating their brand.
Surprisingly, spending just about as much money on branding
as Coke and sell just about as much product. Pepsi comes in as the 26th most
valuable brand in the world.
The important factors which indicated these circumstance is
the difference of their brand's essence.
In other words, the brand essence for Coca-Cola has to do
with things Americans hold close to their hearts, for example, people will
think of America, Santa Clause, Polar Bears, World War II, History, and Family
when they think of Coca Cola. Coca-Cola has a brand appeal that taps into some
of the most deeply-ingrained emotions.
And for Pepsi, their brand essence isn't as deeply-rooted as
Coca-Cola's. It's based on what's new, what's hot and what's trendy such as
Britney Spears, Michael Jackson, Youth, The Choice of a New Generation, Cool,
and Fun.
This happened because several decades ago, Pepsi decided to
focus on the youth market since adults' brand loyalty for Coca-Cola was too
well-entrenched to change their preferences. The company would like to spend
their time, money and energy appealing to a younger market who, eventually,
would replace the more mature Coke drinkers.
The problem was that by focusing on youth, Coca-Cola still
keeps the brand values it already had. And those brand values are things that
are deeply rooted in the American being. On the contrary, Pepsi has won abundantly
of battles and has been keeping The Coca-Cola Company on its toes for decades. What
Pepsi did with Gatorade, Aquafina and the non-carbonated beverage category are
some of the examples.
U.S. Consumption of carbonated soft drinks has steadily
declined in the past decade.
Part of that comes down to the range of other beverages the
market now offers. Part of it comes down to health concerns in a nation with an
obesity problem.
As a result, in the past few years, Pepsi comes up with
their new strategy which they are focus more on the health-concerned product
such as water, juices, teas and sports drinks.
Pepsi’s brands in those areas consist of Aquafina and
Gatorade. And while it traces in soft drink sales, it leads the world in
ready-to-drink teas through Lipton, though its Tropicana succeed in juices
nectars.
The company is betting huge on creating healthy foods over
its Quaker Oats, Gatorade and Tropicana divisions. And it just initiated the
Global Nutrition Group to bring breakthrough products.
And also, Pepsi try to hired several well-known nutritionists
to direct its efforts at reducing fat, sodium and sugar in its products.
In the meantime, Coca-Cola doesn’t seem to concern about
what Pepsi has established. The company not only remains to focus on selling
soft drinks worldwide, but even undertakes to rebuild Coke sales in the U.S.
market. And undoubtedly, there was only 2% fall in Coke’s beverage volume in
North America the year before. In 2009, it was tremendously tough economically
on top of a relatively cool summer. In contrast, Pepsi’s beverage volume in the
same region decreased 8%. While both brands have been declining, Pepsi is doing
so at a slightly quicker rate.
As far as Pepsi is concerned, the cola wars are over. It now
desires to focus on convincing investors that it has the right concentrate in
this new strategy.
At present, the Global Nutrition Group is little but a nice
marketing tool. It recently reduced the top end of its guidance for earnings
growth. This may be because of increased investment in nutrition or due to a challenging,
competitive global environment. Coke, among others, continues to giveaway
market share from Pepsi. However, Pepsi had not neglected the company’s core
business. Carbonated beverages still produce greatly of the company’s sales and
for now, they’re still key to Pepsi’s upcoming health.
Monday, December 3, 2012
COCA COLA VS PEPSI
Coca Cola has been fighting against their main compeitor for
many years. Pepsi was created in 1893. They have been competitors for more than
100 years.
When Pepsi got into this soft drinks markets, all their
benefits where awfull because they bankrupt twice. After this occured the
businnes started to be run by a Coca Cola distributor who finally sood up the
other company.
Pepsi, as everyone knows , started with a very agressive
actitude by increasing more quantity of the product and by reducing the
price,compared with the coca cola one’s; The result was the sales increase.
In the other hand Coca Cola power dominated in EE.UU. Pepsi
finally gained the same position as Coca Cola had. Changing their positioning
was the key factor. They unificated the flavour and they started an agressive
publicity strategy.
Pepsi marketing strategy was based on making
differentiation between both brands trying to get closer to the young
people section by identifying the brand Coca Cola with the traditional parents
drink. This approach had a tremendous exit.
Now a days Coca Cola and Pepsi offer similar products, they attack mostly to one market section and they also want to get to the
same range of people all around the world.
The Coca Cola Company succeded since the beginning because they used appropiate strategies as we said before. The brand development strategy
of Coca Cola has been definied for a long term.
Loyalty of the brand is a very important factor to maintain
their number one position. This loyalty was gained thanks to the useful and
eficient strategies used by the members of the boards such as penetration
strategy of the market, as the years passed Coca Cola provided many countries
their products for example to South America, Asia, Africa…nearly all the world.
Indeed, Coca Cola always conservate their main product as well as introducing
new products but they have changed many times their packaging, drink
tastes but they have never changed the logo since 1940, contrary Pepsi changed their logal frequently.
"Happiness" - customer insight of which brand?
Many brands have been using the word "Happiness" to reach consumers as a insight strategy. However, one of them has strong relationship with this basic word. All people who have drunk a coke even one time know that customer insight of Coca Cola is happiness. There is a great example of this insight to create a marketing method.
Product and the Purchase Constraint
Affected on the product and purchase.
The range of product is wide because all companies need high
market share.The customers are involved highly in the product due to a high
investment in marketing in order to build the relationship with customer in the
long-term. So there are lots of customers that are addicted to the brand, but
some still consider only the price especially between coca-cola and PepsiCo due
to the almost same quality. Because of the health concern, people drink this
kind of drink less frequency and begin to drink substituted product like juice
and energy drink.
Key Success Factors
These are key characteristics of Soft Drink Market.
1. Size of the organization enable the company to negotiate the exclusive supplier for a specified period of time and purchases in a large quantity that dramatically lower their costs. Large organization can have effective distribution channels to make the business more competitive.
This factor make the company in industry diversify a lot to gain market share. Merger and consolidation has been needed in the soft drinks to increase the economies of scale; for example, PepsiCo acquired Quaker Oats, who bought Gatorade which will help increase its market share.
2. Brand loyalty is a big isssue of the soft drink industry. Many consumers of carbonated beverages buy only a particular brand, and hardly purchase others. This characteristic make brand image important. Every company spends a lot on marketing and advertising in order to create emotional relationship between brand and customer.
3. Price is also a key factor because consumers who has not preferred in a strong brand will select the product with the most competitive price. This factor makes branding more important. If the company can build relationship between the brand and customer, the company will get the competitive advantage because the customer will look for the brand, not the cheapest price. The company can increase the price for its branding to have higher revenue.
4. Global expansion is a important factor in the success of a company within this industry. Due to American market saturation, Movement into the global industry is required in order to maintain growth. This characteristics cause the company to find new market, like China which has the greatest number of population in the world. The companies invest highly in the infrastructure and the marketing in order to build brand loyalty in this large group of consumer.
5. High capital investment for warehouses, trucks, and labor, and economies of scale is a great barrier for new entrants . This factor limits the number of competitor in this industry, so, there is just Coca-Cola and PepsiCo which are the main leader. Thus, these two companies compete each other for a long time, and try to come up with a campaign that will beat its main rival.
6. Product Innovation is also the important factor. The company should come up with the differentiated product which can respond the need of consumer. There is a lot of brand extension, such as coke cherry. The companies try to invest in a new product that can respond their customer’s need in that period. But some new product can hurt a lot their brand image, such as new coke.
7. Health Issue is also the key factor that affect the consumption of Soft drink. Manufacture in a range of flavors and marketed to both children and adults, soft drinks have been widespread in American society for decades. While the drinks may prove refreshing and palatable, the sugar and other chemicals found in many soft drinks can prove detrimental to your health.
Ingredients contained in many soft drinks are themselves sources of concern, for example, caffeine, when consumed in excess, is lead to the sleep disruption and anxiety, and some critics question the health effects of added sugars and artificial sweeteners. According to the researched from University of Sheffield, Sodium benzoate has been inspected as a possible reason of DNA damage and hyperactivity. Other substances have negative health effects, but are present in such small quantities that they are unlikely to pose any substantial health risk provided that the beverages are consumed only in moderation.
Obesity
The consumption of sugar-sweetened beverages is associated with weight and obesity. Weight gain and obesity develop owing to chronic overconsumption of calories, causing your body to store the excess energy as fat. While overconsuming any type of food can cause weight gain, soft drinks can easily add hundreds of calories to your daily caloric intake, facilitating weight gain. The consumption of sugar-sweetened soft drinks can also be associated with many weight-related diseases, including diabetes, metabolic syndrome and cardiovascular risk factors, and elevated blood pressure.Bone Loss
According to the researches and studies, drinking soda correlates with a decrease in milk consumption along with the vitamin D, vitamin B6, vitamin B12, calcium, protein and other micronutrients. Phosphorus, a micronutrient, can be found in cola-type beverages, unfortunately there may be a risk in overconsumption.Phosphorus and calcium are used in the body to create calcium-phosphate, the main component of bone. However, the combination of too much phosphorus along with too little calcium in the body brings a degeneration of bone mass.
Tooth Decay
One major health problem assorted with drinking soft drinks is progressive tooth decay. Most soft drinks contain high concentration of simple carbohydrates: glucose, fructose, sucrose and other simple sugars. Your teeth, similar to bone, contain mineralized tissue that begins to dissolve after exposure to acid. Bacteria in your mouth feed on the sugars within soft drinks, and release tooth-dissolving acid as a byproduct of sugar metabolism, according to Elmhurst College.
All companies realize this problem and try to launch new brand in the new market to catch up the trend; for example, Coke launched Minute made, while PepsiCo launched Tropicana. Both are in juice market.
Source : http://www.csbsju.edu/documents/libraries/zeigler_paper.pdf
http://www.livestrong.com/article/402079-health-problems-and-soft-drinks/#ixzz2CUCjMkYL
http://en.wikipedia.org/wiki/Soft_drink
http://www.ifood.tv/blog/how-do-soft-drinks-affect-your-exercise
http://thesodasite.com/wp-content/uploads/2012/09/
http://www.ifood.tv/blog/how-do-soft-drinks-affect-your-exercise
http://thesodasite.com/wp-content/uploads/2012/09/
Sunday, December 2, 2012
Soft Drinks Industry Profile
Companies in this industry produce soft drinks, bottled
water, and other nonalcoholic beverages. Major companies are Britvic (UK),
Coca-Cola (US), Cott (Canada), Dr Pepper Snapple Group (US), Nestlé
(Switzerland), PepsiCo (US), and Red Bull (Austria).But the two main players on
the global soft drink market are Coca-Cola, which has 25 brands and 133
varieties, and PepsiCo that has 17 brands and 161 varieties.
Soft drink industry Structure (2008)
 |
The war between Coke and Pepsi still continues, but currently Coke has the top spot.
Top 10 Soft Drinks
2011
|
|
1.
|
Coca-cola Classic (coca-cola)
|
2.
|
Diet Coke (coca-cola)
|
3.
|
Pepsi-cola (PepsiCo0029
|
4.
|
Mountain Dew (PepsiCo)
|
5.
|
Dr Pepper (Dr. Pepper/Snapple)
|
6.
|
Sprite (coca-cola)
|
7.
|
Diet Pepsi (PepsiCo)
|
8.
|
Diet Mountain Dew (PepsiCo)
|
9.
|
Diet Dr. Pepper (Dr. Pepper/Snapple)
|
10.
|
Fanta (coca-cola)
|
Source :
https://www.msu.edu/~howardp./softdrinks.html
http://www.energyfiend.com/top-10-soft-drinks
http://www.firstresearch.com/industry-research/Nonalcoholic-Beverage-Manufacturing.html
Key Market Products
1. Carbonated, or
sparkling drinks, are expected to create revenues more than $209 billion in 2014,
reported by MarketLine. Coca-Cola is the market’s leader company. Other big
firms on the market include: Red Bull, Dr Pepper Snapple and PepsiCo. Key
growth challenges are consumer consumption and health concerns.
2. Sports drinks, energy drinks, and nutraceutical drinks,
is expected to exceed $62,000 million in 2015, according to MarketLine. In this
segment, PepsiCo is the number one company . Sports drinks’ market grows well with
steady consumption, while energy drinks is a rapidly growing market because consumers
show greater awareness on health issue and need the drink that is beneficial
for their health.
3. Bottled water market is expected to be more than $126
billion in 2015, reports MarketLine. This represents 27% market expansion in
five years. Danone is leaded in this segment. Health awareness, higher consumer
consumption, enlarged population and lifestyle trends are key market drivers,
which leads to product innovation, and packaging.
4. The worldwide
juice market, which includes fruit and vegetable juice, nectars, and fruit
drinks, will exceed 64 billion liters by 2015, according to Global Industry
Analysts. Consumers turn to consume in this kind of product more than the
previous period due to awareness of health and nutrition.
Products
|
Expected
production in 5 years
|
Leader
|
Leading
Product in each segment
|
Carbonated, or sparkling drinks
|
10% rise
|
Coca-Cola with 42 % stake
|
40 % Carbonated
drinks
|
Sports drinks, energy drinks, and
nutraceutical drinks
|
30% rise
|
PepsiCo with 24
% stake
|
58 % Energy Drink
|
Bottled water
|
20% rise
|
Danone with 14% stake
|
65% Unflavored Water
|
Juice
|
2% rise
| Cadbury, Tropicana, Minute Maid |
100% Fruit Juice
|
Subscribe to:
Posts (Atom)