Case Study : Soft Drinks

COCA-COLA VS PEPSI

ROYER Johan

HALDEBIQUE Geoffroy

What do you know about Coca-Cola and

Pepsi ?• Coca-Cola, or Pepsi ?

Which one has the biggest ?

• PepsiCo has the highest revenue, with 65,5 billon dollars a year (48 for The Coca-Cola Company).

• The Coca-Cola Company has the largest net income, with 6,7 billion dollars (vs 6,55 billion dollars).

• Both are losing to Nestlé, dominating the food industry with a revenue of over 90 billion dollars and a net income over 10 billion dollars.

Concerning soft drinks• The Coca-Cola Company only produces soft drinks

and alcohol.• PepsiCo also sells crisps (Lay’s and Benenuts).

• The product Coca-Cola and its derivatives represent 80% of the company’s revenue.

• Coca-Cola is still way ahead Pepsi-Cola in terms of market share.

Advertising campaings

• Coca-Cola’s ads aim at increasing brand awareness…

• http://www.youtube.com/watch?v=iX2xS9vPQ-Y#t=0m14s/

• Whereas Pepsi’s ads target Coca-Cola specifically !

• http://www.youtube.com/watch?v=LVyzUe_U0Jg#t=2m41

The Coca-Cola Company : SWOT Analysis

Strengths WeaknessesVery strong brand image Numerous brand failures

(dogs)

Already existing market share

Negative publicity

Value of the company Undiversified activities

Distribution channels High debt

The Coca-Cola Company : SWOT Analysis

Opportunities ThreatsBottled water consumption

is increasingHealth awareness

Growing consumption and opportunities in BRIC

Water scarcity & cost

Growth of the company through acquisitions

Hard competition from PepsiCo in BRIC

PepsiCo : SWOT Analysis

Strengths WeaknessesHuge product diversity Low pricing

Successful mergers and acquisitions of products

Weak brand awareness compared to Coca-Cola

Successful marketing campaigns

Low net profit margin (9,7% compared to 18,55%)

PepsiCo : SWOT Analysis

Opportunities ThreatsBottled water consumption

is increasingHealth awareness

Growing market in BRIC Decreasing gross profit margin

Snacks consumption is increasing too

Strong dollar

Coca-Cola Versus PepsiCo : The 4 P’s

• PRODUCTS :

• The Coca-Cola recipe• Most of the products are soft drinks

o There are a lot of innovations…o But most of products are brought in the market just for the

sake of competition

• Coca-Cola has more products than PepsiCo (considering soft drinks only)

Coca-Cola Versus PepsiCo : The 4 P’s

• PRICE :

• Coca-Cola was ruling the market before PepsiCo’s arrival

• Now both companies are adjusting their prices on the basis of competition

• Pepsi is renowed to bring the price down to half, although they have a decent margin

Coca-Cola Versus PepsiCo : The 4 P’s

• PLACE : • The whole world, for both of them (visible on the

Coca-Cola Company website or with PepsiCo’s ads

• PROMOTION : • Blind taste test film• More ads on Pepsi-Cola than Coca-Cola, but Coca-

Cola has a lot more programs (Sprite, etc.)• Both are featuring celebrities in their ads

E-commerce objective and

challenge• Pepsi-Cola and Coca-Cola are already famous and

a have lot of consumers.• In a BCG Matrix they would be…

Website presentation• Let’s check Pepsi’s Website !• http://www.pepsi.com/en-us/d

• Very thumbs friendly• Pop music topics• Geolocation• Consumer generated

Social networks• Here are some figures :

• Coca-Cola has several Twitter accounts• More than 2,32 million followers on the main

account !

On Youtube

COCA-COLA PEPSI

223k subscribers 689k subscribers

237M views 162M views

Several videos a day

Several videos a week

The Super Bowl 2014• A Polemic around a single ad

o http://www.youtube.com/watch?v=443Vy3I0gJs

• Extremely strong reactions to this ad

• What do YOU think about this ad ?

• What impact do you think it will have on Coca-Cola ?

The Super Bowl 2014

THANK YOU VERY MUCH FOR YOUR

ATTENTION !

ANY QUESTIONS ?