Marketing Mix Comparison of Pepsi and Coca Cola



Marketing Mix Comparison of Pepsi and Coca Cola

Introduction

The marketing Mix analysis is also called 4P analysis. This analysis contains a set of controllable strategic tools of marketing which work in simultaneously to attain the objectives of an organization (Mooij, 2009). In this paper we will analysis two organizations with respect to their marketing mix. The companies that I have chosen for this task are Pepsi Co and Coca Cola.

Discussion

Product

In marketing the product is the goods that are provided by an organization to cater the needs of the customers. The products are of two kinds, i.e. tangible and intangible products (Russell, 2010).

Coca cola's Product

On one hand, the formula of Coke is the secret recipe of Coca Cola Company. Since, Robert W. Woodruff initiated the public marketing strategies for Coca Cola, Coca-Cola presents the recipe as the most closely considered secret of trade ever. Only a small number of employees know or they can access to this recipe. This formula of coca-Cola is considered to be the original formula for Coke. This formula is from the book “for God, County and Coca-Cola.” On the other hand, the organization is not limited to only one product. It is multinational organization which offers a wide range of beverages to the whole world. Over many years, the organization has launched a large number of products (Mooij, 2009). The list of these products is given below:

Pepsi's Product

The drink of Pepsi cola has basic ingredients of similar beverages which include carbonated water, sugar, high fructose corn syrup, caffeine, natural flavor, colorings, citric acid and phosphoric acid (Russell, 2010). The product of Pepsi which is claimed to be caffeine free contains the similar ingredients except caffeine and some of the products of Pepsi are displayed in the following table:

Pricing

The process in which organizations determine what they will obtain in exchange for their products is called pricing. Some significant factors for pricing include Market conditions, competition, market place, cost of production and product quality (Kumar, 2007).

Coca Cola Pricing

Coca Cola enjoyed the monopoly in the every market prior to the emergence of Pepsi cola. Previously, the pricing strategy of Coca Cola was influenced by the cost of production, i.e. it was developed on the basis of cost of production plus the profit margin and other expenses. However, after the launch of Pepsi cola, Coca Cola started to consider the factor of competition while setting its price. At present, The organization have been spending heavily on advertisements of soft drinks instead of production, few years back, Coca cola brought in a revolution particularly in the market of India with the Rs. 5 Pricing strategy which gained a great deal of fame. Coca cola was the first organization to launch small bottle of Coke for only Rs 5. This promotion was effective particularly for targeting the price conscious market segment in India. Even at present, most of the pricings strategies are developed on the basis of competition in every market (Bachmeier, ...