Comparative Analysis of Pepsi & Coke

Comparative Analysis of Pepsi & Coke

Introduction

In the beverage industry, Pepsi and Coke are very well known name and does not require any introduction. These two beverage companies are now very well established brands and are operating in many countries of the world. These two brands are so much similar in the taste that it is almost impossible to distinguish in a blind test. Preferences of consumers are different between both colas. The taste of drinks is not the single similarity between the two brands, but there are many other things in which they are same for example pricing, branding, advertising and many other things. People say that coke is less sweet than Pepsi, it means that Pepsi can be differentiated from coke. The popularity level of these two brands is so much that almost every person in the world recognises the brands because they have become a universal brand now. From soft drinks to drinking water, both companies are competing with each other at the equal level. These two brands are manufacturing beverages for centuries and competing in every market of the world. Both the products have almost same product line and at their core competency which is beverages they are a perfect substitute of each other in terms of economics.

Analysis of each company

History of Pepsi and Coke

Pepsi cola and coca cola share the history of centuries, Pepsi was invented by the Caleb Bradham in 1898 and Coke was introduced John S. Pemberton in 1886. By the end of 1910 Pepsi claimed its franchises in 24 states with the total consumption of 100,000 gallons per year. In 1907, Coke has started its official advertising by introducing a baseball player in its advertisements. Pepsi filed bankruptcy in 1923 due to WWI sugar rationing but recovered in two years which is a remarkable achievement. By the end of 1938 Coca cola was successfully entered in the Australia, Austria, Norway and South Africa market. In 1945, Coke becomes the official trademark of the company, and in the same year Pepsi introduced their beverages in cans. In 1962 Coke planned to introduce its most successful product Sprite and for that purpose Coke decided to go public in 1962. This was as a brief overview about the history of both products.

Product of Pepsi and Coke

Both the products share almost the same product line, their product can be called as the perfect substitute of each other. The main products of Pepsi include Diet Pepsi, Pepsi Wild Cherry, Mountain Dew, Diet Mountain Dew, Mirinda, Mug Root Beer, Aquafina, Splash, Lipton Brisk (Partnership), Starbucks Doubleshot (Partnership), Tropicana, Lays and many other products. While Product line of Coke includes Diet Coca-Cola, cherry Coke, Coca-Cola, Diet cherry Coke, Diet Coke Plus, Fanta, Minute mad, Netsiea and many other.

Major Customers

Major customers of Pepsi and coke are in all over the world, according to a report only 30% of the revenue that coke enjoys comes from the United States, and 70% is from the outside of United ...