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Bus 508 Assignment 2 Coca Cola vs Pepsi Competitive Strategies






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Bus 508 Assignment 2 Coca Cola vs Pepsi Competitive
Coca Cola vs. Pepsi: Competitive Strategies
Coca Cola and Pepsi marketing are a consumer products company
operating in highly competitive markets. They heavily rely on continued
demand for products. To generate profit and bonus, they both must sell
products that appeal to our customers and to consumers. Any significant
changes in consumer preferences or any inability on the part to
anticipate or react to such changes could result in reduced demand for
our products and erosion of our competitive and financial position (Dyer,
Jeffrey H., page 3). The achievements of Pepsi and Coca Cola relies on
being able to answer to daily needs of buyers, concerning health and
wellness, obesity, product attributes and ingredients, and to broaden into
similar categories.
Changes in product category consumption or consumer demographics
could indicate a deductible demand for the good that’s produced.
Consumer preferences could change for many reasons, such as
generations being affected by the age (Hoffman, Benjamin, page 17).
Socializing has also expanded and became very diverse. Traveling,
vacation or leisure activity patterns, weather, seasonal consumption
cycles, negative publicity resulting from regulatory action or litigation
against companies in our industry, a downturn in economic conditions or
taxes specifically targeting the consumption of our products. Any of
these changes may reduce consumers’ willingness to purchase the
goods of Pepsi Cola and Coca Cola (20).
Any damage to their reputation could have an adverse effect on our
corporations, financial condition and results of operations. Changes in
the legal and regulatory environment could limit their business activities,
increase our operating costs, reduce demand for our products or result
in litigation. Unfavorable economic conditions in the countries in which
we operate may have an adverse impact on our business results or
financial condition. Their financial performance could suffer if neither is
unable to compete effectively (Washington Post, page 8).
In order to thrive, each company should continue to strive and think at
abroad. Never close opportunity to new ideas and explore for new

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options at all times because anything can be an adventure in today’s
society. Remain loyal and well trained through all levels of operations
and show great gratitude within your workforce because they are the
image that makes each company. Satisfying consumers should always
remain number one for all companies because the wins for all
I would assert that on the national level the relationship between Coke
and Pepsi should be characterized-with one important exception-as
"Cola Peace" rather than "Cola War." Ever since Pepsi abandoned its
"Twice as Much for a Nickel" campaign, these two companies have
appealed to the public almost exclusively in terms of psychic benefit.
Coca-Cola has tried to associate itself with motherhood, the flag, and
"country sunshine." Pepsi has tried to tie itself to feistiness, youthful-
ness, and California girls. The success that both firms have had in
associating products with such images speaks well for the conception
and execution of their advertising programs and public relations events
(Hoffman, page 23).
The first use of the phrase "Cola War" that I have found is in a 1950 New
Yorker essay about Walter Mack. Since then the phrase has often been
used to describe the competition between Coca-Cola and Pepsi- Cola.
From the beginning, Pepsi cultivated the image of itself as David versus
Coca-Cola's Goliath (New York Times, page 5). Coca-Cola, for its part,
clung tenaciously to its image as the "brand beyond competition" for
many years, hardly acknowledging the existence of Pepsi-Cola, although
forced to deal with it as a business reality.
The intensity of what might be called Coca-Cola's product focus has
been demonstrated on numerous occasions between Steele's time and
today. When Coca-Cola decided to bring out a diet cola, the company
named it Tab, because it felt that the name Coca-Cola must be reserved
for one product and one product only. When Pepsi wanted to bring out a
diet drink (which it did two years earlier than Coca-Cola), it called that
drink Diet Pepsi. Similarly, when Pepsi came out with a light formula
before Coca-Cola, the company again used its brand name. Pepsi
periodically changed its formula. At Coca-Cola, the formula was sacred.
“There are no final defeats. The ammunition we fire at one another is
often damn silly stuff. But for all that, our battles are very real. Tens of
billions of dollars are at stake. And ‘market share’ the sales performance

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of a soft drink compared to others in its category. And something
intangible, but no less important: pride.... At Pepsi, we like the Cola
Wars.” We know they're good for business-for all soft drink brands (Dyer,
Jeffrey H., page 4).
You see, when the public gets interested in the Pepsi-Coke competition,
often Pepsi doesn't win at Coke's expense and Coke doesn't win at
Pepsi's. Everybody in the business wins. Consumer interest swells the
market. The more fun we provide, the more people buy our products-all
our products. The catch is, the Cola Wars must be fun. If it ever looks as
if one company is on the ropes-as if it's been dealt such a run of bad
fortune that it won't recover-the air will go out of the game faster than the
fizz leaves an open can of soda.
Doug, Walters. “Coca-Cola Financial Analyst.” Review July-August
(2012): 108-15. Print.
Dyer, Jeffrey H. “Coca-Cola Marketing and Sales.” Review October-
February (2013): 4-13. Print.
Hoffman, Benjamin. “The Pepsi Septuagenarian.” Off The Dribble. The
New York Times, 22 Jun. 2012. Web. 29 Sept. 2012. Pages 17 – 29.
Storm, Stephanie, and Cornell Andrew. “New York Times.” Print. Pages
Woods, Timothy, and Stevens, John. “Washington Post.” Print. Pages 8
– 14.
“2012 Form 10-K, The Coca-Cola Company.” United States Securities
and Exchange Commission.
“2013 Form 10-K, The Pepsi-Cola Company.” United States Securities
and Exchange Commission.

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