Competitor Analysis:

Coca-Cola Vs Pepsi




Date: 21/08/2014

PGDM - Marketing

Submitted To: Prof. Karan Shastri

Submitted By:

Jaisaj Vyas (103)
Nidhi Dave (20)
Nirali Ghodasara (30)
Karthika Ravindran (43)
Aadesh Gaindher (56)
SLIMS Page 2
Competitor Analysis : Coca-Cola Vs Pepsi

Pepsi and Coke command over 95% of the soft-drink market in India.
However Coke continues to outsell Pepsi most areas of the world but in India and some
other countries, PepsiCo fares far better than coke. Still, both the companies are highly
profitable in their Indian business.

(1) Market Commonality
Product level
Coca Cola and Pepsi have the same core benefit for their products, which is to quench the
thirst of their consumers. Both are selling non-alcoholic soft drinks and Pepsi is also in the
food market serving snacks like Lays, Cheetos etc.
Target consumer
Pepsi and Coca-Cola focus on children, adult and young generation but Pepsi extensively
focuses on more on youth and sports as compared to coke.

Geographic Market
Both Pepsi and coke have presence in 200 countries both the companies focuses more on
countries like U.S, middle east countries and Asian countries. However Coke outsells Pepsi in
most areas of the world but in India and other countries, PepsiCo fares far better than coke.
(2) Resources Similarity
Strengths
Coca-Cola: High profile Global Brand Presence, Four of the top five leading brands, Broad-
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based bottling strategy, 47% of total volume Sales in carbonates
Pepsi: High profile global brand presence, world's 2nd best-selling soft-drink brand, constant
product innovation, aggressive marketing strategies using famous celebs, a broad portfolio
of products
Weaknesses
Coke: Carbonates market is in decline, over-complexity of relationship with bottlers, the
existing distribution system is not so efficient for non-carbonates
Pepsi: Carbonate market is in decline, Pepsi only targets young people
Distribution
Coca-Cola
Independent bottlers with exclusive contracts and Coca-Cola enterprises.
Pepsi
Exclusive contracts with franchise bottlers and independent distributors and retailers.


(3) A Framework of Competitor Analysis


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Conclusion

Thus, Coke continues to outsell Pepsi most areas of the world but in India and some other
countries, PepsiCo fares far better than coke. Still, both the companies are highly profitable
in their Indian business.

Bibliography
(1) http://www.ibtimes.com/coke-ko-vs-pepsi-pep-global-look-their-3q-earnings-
especially-emerging-markets-1428488
(2) http://www.slate.com/articles/business/rivalries/2013/08/pepsi_paradox_why_peo
ple_prefer_coke_even_though_pepsi_wins_in_taste_tests.html
(3) http://www.nasdaq.com/article/coke-vs-pepsi-by-the-numbers-cm337909
(4) http://ankitmarketing.blogspot.in/2011/11/pepsi-vs-coke-analysis.html