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    Cola Wars: Coca-Cola Versus Pepsi-Cola and The Soft Drink Industry

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    Taufan Putra
    Cola Wars outlines the history and marketing strategies of PepsiCo and Coca-Cola, detailing how PepsiCo grew from near bankruptcy in the 1930s to becoming the second largest cola brand behind Coca-Cola through innovative marketing led by leaders like Alfred Steele and Donald Kendall who positioned Pepsi as the choice of young people and expanded distribution. PepsiCo diversified into snacks and restaurants in the 1970s-80s under Kendall's leadership and focused on targeting youth demographics through advertising campaigns promoting Pepsi as the choice of a new generation.

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    Cola Wars: Coca-Cola Versus Pepsi-Cola and The Soft Drink Industry

    Uploaded by

    Taufan Putra
    50 views7 pages
    Cola Wars outlines the history and marketing strategies of PepsiCo and Coca-Cola, detailing how PepsiCo grew from near bankruptcy in the 1930s to becoming the second largest cola brand behind Coca-Cola through innovative marketing led by leaders like Alfred Steele and Donald Kendall who positioned Pepsi as the choice of young people and expanded distribution. PepsiCo diversified into snacks and restaurants in the 1970s-80s under Kendall's leadership and focused on targeting youth demographics through advertising campaigns promoting Pepsi as the choice of a new generation.

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    positioning and segmentation

    Original Title

    Pepsi

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    Cola Wars outlines the history and marketing strategies of PepsiCo and Coca-Cola, detailing how PepsiCo grew from near bankruptcy in the 1930s to becoming the second largest cola brand behind Coca-Cola through innovative marketing led by leaders like Alfred Steele and Donald Kendall who positioned Pepsi as the choice of young people and expanded distribution. PepsiCo diversified into snacks and restaurants in the 1970s-80s under Kendall's leadership and focused on targeting youth demographics through advertising campaigns promoting Pepsi as the choice of a new generation.

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    Download as pptx, pdf, or txt
    50 views7 pages

    Cola Wars: Coca-Cola Versus Pepsi-Cola and The Soft Drink Industry

    Uploaded by

    Taufan Putra
    Cola Wars outlines the history and marketing strategies of PepsiCo and Coca-Cola, detailing how PepsiCo grew from near bankruptcy in the 1930s to becoming the second largest cola brand behind Coca-Cola through innovative marketing led by leaders like Alfred Steele and Donald Kendall who positioned Pepsi as the choice of young people and expanded distribution. PepsiCo diversified into snacks and restaurants in the 1970s-80s under Kendall's leadership and focused on targeting youth demographics through advertising campaigns promoting Pepsi as the choice of a new generation.

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    Cola Wars: Coca-Cola versus Pepsi-Cola and The Soft Drink Industry

    Brad’s Drink in New Bern (1893) by pharmacist Caleb Bradham.


    History of PepsiCo

    1910. Adopt addopt a franchising bottler system, and had 270 bottler network
    1923, 1932. ALMOST BANKRUPT

    1950. “Twice as Much for a Nickel”

    1984. Introduce the first Diet beverage, and the other flavor segments.
    1984. “Choice of A New Generation” ads. Building loyalty among teenagers.
    1986. Transforming the bottling network by acquired independent bottler,
    company-owned bottling operations, and joint venture agreements.
    1990. Penetrating new distribution channels & focusing low cost production.
    (invested over $2 billion in its restaurant chains, and over $1,5 billion in the
    international snack food group.)
    THE LEADERS of PepsiCo
    ALFRED STEELE (1950)
    • Steele made ‘Beat Coke’ theme and focus on sales through supermarkets in the growing suburbs.
    • Introduce several new bottle size, including the first 24-ounce bottle for family consumption
    • Between 1950-1958, PepsiCo Revenues Increase 300%

    Donald Kendall (1970)


    • Introducing Diet Pepsi, Mountain Dew, a Lemon-Lime drink and Pepsi Light (semi-diet drink)
    • Launch ‘Pepsi Generation’ advertising theme which positioned the product as the choice of the young and ‘young at
    heart’.
    • In 1960% the concentrate price 20% lower than Coke, but in 1970% Pepsi Increase the price equal to coca cola. The
    extra margin for in term to increase the advertising and promotion.
    • Pepsi-Cola Companye rename to PepsiCo and diversified into snack food, restaurant, trucking and sporting goods.
    • Pepsi Challenge, Blind test pepsi-cola in dallas increase the position of pepsi, form third place to second place above
    the Dr Paper, bellow Coke in dallas. The Pepsi Challenge become a nationwide.

    John Seculley
    • Expand sales through the vending and fountain outlet.
    • Incrase the concentrate price for the advertising and promotion
    Marketing Strategy
    Marketing Segmentation
    Mainly segment their market demographically assuming age, income and family size. Pepsi diet for who suffering from
    diabetic or over 40 years old, Pepsi cola is for young people. Pepsi also has pricing strategy in order to consider the
    economic situation in the country and size pack strategy to capture differentiation of family size.

    Target Marketing
    Market segment shown that the majority of CSD drinker are youth and middle age people, then the target is schools,
    colleges, universities, restaurants, hotels and fast food stores. Pepsi also offer Pepsi Diet, Sports drink, brewed tea and
    coffee product.

    Product Concept
    PepsiCo produce a huge amount of products, so that the cost of production can be decrease.

    Marketing Concept
    PepsiCo always highlight their target markets needs and make sure that the product is available and highly affordable for
    them.
    Market Positioning
    Product Differentiation
    Pepsi considers themselves the bold, refreshing, robust
    cola.

    Channel Differentiation
    Pepsi distribute their drinks through independent bottlers. After the ingredients ready and packaged into preferred size,
    the drinks is distributed it to specific region through several channel distributions.

    Image Differentiation
    By symbol, sign, logos and color make a strong brand recognition and image differentiations. Moreover with tagline
    “To New Generation…”
    Micro environment

    The Company : PepsiCo


    Suppliers : Concentrate &
    syrup producers,
    bottlers
    Retail Outlet : Food stores, fountain,
    vending machine etc
    Customers : 14 to 30 years old
    Competitors : Coca-cola, DrPepper,
    7up, etc
    Distribution Channel
    PepsiCo follows an intensive distribution strategy to support their universal feature they want to place their product in as
    many outlet as possible.
    Direct Distribution System
    Using zero of marketing channel to distribute the product directly to the customer with no intermediaries (example:
    PizzaHut and KFC).

    Manufacturer Consumers

    Indirect Distribution System


    To make the product available at the right places at the right time in the market, the sales department of Pepsi CO pay
    major attention on controlling the channel of distribution (example: PepsiCo maximizing the distribution channel through
    Food stores, fountain, vending machine etc).

    Distributors
    Manufacturer Retailers Consumers
    Wholesalers

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